Investor Presentation • Nov 29, 2022
Investor Presentation
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INVESTOR & ANALYST CONFERENCE CALL BACKGROUND ON THE SALE OF PALAS
November 29, 2022
This document is being presented solely for informational purposes and should not be treated as giving investment advice and does not constitute or form part of, and should not be construed as, an offer to buy or subscribe, nor an invitation to submit an offer to buy or subscribe any of Brockhaus Technologies AG's ("BKHT") securities. It is not intended to be (and should not be used as) the sole basis of any analysis or other evaluation. All and any evaluations or assessments stated herein represent our personal opinions. We advise you that some of the information is based on statements by third persons, and that no representation or warranty, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of this information or opinions contained herein.
This presentation contains certain forward-looking statements relating to the business, financial performance and results of BKHT and its (future) subsidiaries (collectively the "Brockhaus Technologies") and/ or the industries in which Brockhaus Technologies operates. Forward looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements contained in this presentation, including potential transactions, assumptions, opinions and views of Brockhaus Technologies or cited from third party sources, are solely opinions and forecasts which are uncertain and subject to risks. Actual events may differ significantly from any anticipated development due to a number of factors, including without limitation, changes in general economic conditions, in particular economic conditions in the markets in which Brockhaus Technologies operates, changes affecting interest rate levels, changes in competition levels, changes in laws and regulations, environmental damages, the potential impact of legal proceedings and actions and Brockhaus Technologies' ability to achieve synergies from acquisitions. In general, the further development and impact of the Russian invasion of Ukraine, the persistent supply bottlenecks, the current acute energy crisis, COVID-19, the rising inflation, and the significant rise in interest rates is uncertain. Brockhaus Technologies does not guarantee that the assumptions underlying the forward-looking statements in this presentation are free from errors nor does it accept any responsibility for the future accuracy of the opinions expressed in this presentation or any obligation to update the statements in this presentation to reflect subsequent events. The forward-looking statements in this presentation are made only as of the date hereof. Neither the delivery of this presentation nor any further discussions of Brockhaus Technologies with any of the recipients thereof shall, under any circumstances, create any implication that there has been no change in the affairs of Brockhaus Technologies since such date. Consequently, Brockhaus Technologies does not undertake any obligation to review, update or confirm recipients' expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of the presentation.
For information on performance indicators, please refer to Note 7 of BKHT's consolidated financial statements for 2021.
Neither Brockhaus Technologies, nor any of its respective board members, directors, officers, employees, affiliates, agents or advisers nor any other person shall assume any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or the statements contained herein as to unverified third person statements, any statements of future expectations and other forward-looking statements, or the fairness, accuracy, completeness or correctness of statements contained herein, or otherwise arising in connection with this presentation.
This presentation is made available on the express understanding that it does not contain all information that may be required to evaluate the purchase of or investment in any securities of BKHT. This presentation is accordingly not intended to form the basis of any investment decision and does not constitute or contain (express or implied) any recommendation to do so.
Continuous interest from strategic as well as financial investors from day 1 after acquisition of Palas in 2018
Strong operational development of Palas under the roof of Brockhaus Technologies, doubling nearly all its financial KPIs
Strategic valuation of €100 million underlining the attractiveness of Palas as well as proving the fundamental value of Brockhaus Technologies
Targeted "Cash Compounding Modus" reached, after high value realization of €59 million at closing plus an additional earn-out of potentially up to €17 milllion
€ Forecast 2022 solely adjusted due to deconsolidation of Palas
Development since acquisition by BKHT in Dec. 2018 Value realization through sale of Palas
Almost doubling of revenues (~€12m to ~€21m), EBITDA (~€3m to ~€7m) and EBIT (~€3m to ~€6m) from 2018 to 2021
founding subsidiaries in Hong Kong and Shanghai as well as establishing a local team of ~10 employees
including hiring a CSO and CFO as well as establishing an advisory board consisting of industry experts from the BKHT network
e.g. in the unregulated market or through the proprietary-developed data platform for air quality monitoring my-atmosphere.net
Available financing capacity driven by significant deleveraging allows for future growth through new acquisitions
Very conservative leverage ratio of indicative ~1.1x EBITDA 2021 (target value of ~2.5x)
High balance sheet quality underlining resilience of our business
| € million | 2022 | 2021 | Ex post reclassification |
||
|---|---|---|---|---|---|
| Revenue | xx.x | xx.x | of Palas and presentation in one line item Therefore, retrospective reduction of revenue etc. |
||
| Change in finished goods and WIP | (x.x) | (x.x) | |||
| Other own work capitalized | x.x xx.x (xx.x) |
x.x xx.x (xx.x) |
|||
| Total output | |||||
| Cost of materials | |||||
| Profit of continuing operations | xx.x | xx.x | |||
| Profit of discontinued operations | xx.x | xx.x | |||
| Net profit | xx.x | xx.x | 2021: Palas net income contribution |
||
| thereof: non-controlling interests | xx.x | xx.x | 2022: Palas net |
||
| thereof: BKHT shareholders | xx.x | xx.x | income plus BKHT income from selling Palas |
||
| thereof: continuing operations | xx.x | xx.x | |||
| thereof: discontinued operations | xx.x | xx.x |
Palas' revenue, other income and cost contribution is to be excluded retrospectively from the P&L's line items (IFRS 5).
Both Palas' net income and the BKHT's net gain from the sale need to be presented as a separate line item "profit of discontinued operations".
The composition of that line item will be disclosed in detail in the Notes to the Consolidated Financial Statements.
(Indicative depiction of revenue forecast 2022)
Forecast adjusted solely due to the deconsolidation of Palas.
Without the sale of Palas, the previous forecast would have still been valid.
With respect to the adjusted EBITDA margin Brockhaus Technologies confirms the previous forecast of 35%. This forecast remains unchanged because Palas' expected adjusted EBITDA margin for the full year of 35% corresponds to the group forecast.
Well on track building one of Germany's leading technology groups
Revenue before PPA
(2021: €105m | +24 to +28%) (Forecast pre Palas deconsolidation: €150m - 155m)
Adj. EBITDA margin
(2021: 39%) (Forecast pre Palas deconsolidation: 35%)
corresponding Adj. EBITDA
(2021: €41m | +11 to +16%) (Forecast pre Palas deconsolidation €53m - 54m)
Thurn-und-Taxis-Platz 6 60313 Frankfurt am Main, Germany
Phone: +49 69 20 43 40 90 Fax: +49 69 20 43 40 971 E-Mail: [email protected] Web: www.brockhaus-technologies.com
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Executive Board: Marco Brockhaus (Chair), Dr. Marcel Wilhelm Chair of the Supervisory Board: Dr. Othmar Belker Registry Court: Frankfurt am Main Local Court Register Number: HRB 109637
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