Brockhaus Technologies AG

Investor Presentation • Nov 14, 2022

Elevating Champions

QUARTERLY STATEMENT 9M 2022 EARNINGS CALL

November 14, 2022

Disclaimer

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.

Summary 9M 2022

Key highlights

Continued profitable growth across all business segments in 9M 2022

FY 2022 guidance raised to revenue of €150m - 155m with a continued high adj. EBITDA margin of 35% based on the strong operational performance

Strong balance sheet quality with cash and cash equivalents of €23 million as per end of September 2022 despite significant deleveraging

Note: For definitions and detailed explanations of the alternative performance measures, please refer to page 87 onwards of our 2021 Annual Report and page 16 of our H1 2022 Half-Year Financial Report

Revenue by quarter

1

1) Comparable IFRS revenue figure for 9M 2021 not available; Bikeleasing only accounted German GAAP prior to acquisition

Revenue by region

5

KPIs by segment

			Reportable Segments
	Financial Technologies		Security Technologies		Environmental Technologies		Central Functions and Consolidation		BKHT Group
[€ thousand]	9M 2022	9M 2021	9M 2022	9M 2021	9M 2022	9M 2021	9M 2022	9M 2021	9M 2022	9M 2021
Revenue before PPA	87,477	-	24,096	20,163	14,183	13,991	2	-	125,758	34,154
Revenue Growth	n/a		19.5%		1.4%				268.2%
Gross Profit before PPA	55,683	-	17,709	14,288	11,117	11,145	180	-	84,689	25,433
Gross Profit Margin	63.7%		73.5%	70.9%	78.4%	79.7%			67.3%	74.5%
Adjusted EBITDA	41,658	-	5,395	4,983	4,278	4,107	(3,705)	(3,995)	47,626	5,096
Adjusted EBITDA Margin	47.6%		22.4%	24.7%	30.2%	29.4%			37.9%	14.9%
Adjusted EBIT	40,353	-	4,549	4,408	3,402	3,325	(3,800)	(4,069)	44,504	3,663
Adjusted EBIT Margin	46.1%		18.9%	21.9%	24.0%	23.8%			35.4%	10.7%

Total cash and cash equivalents of €22.9 million as per end of September 2022

Conservative leverage ratio of 2.3x within the target corridor

(€ thousand)	30.09.2022	31.12.2021
Senior loans	57,336	79,979
Subordinated loans	53,966	49,696
Real estate loans	5,642	5,942
Cash and cash equivalents	(22,925)	(30,327)
Net debt from loans	94,019	105,290
Other financial liabilities	8,156	5,316
Lease refinancing	153,969	128,179
Lease receiveables	(144,557)	(119,759)
Net debt from leasing	9,412	8,420
Net debt	111,586	119,027
Adjusted pro-forma EBITDA (FY 2021)	48,180	48,180
Leverage	2.3x	2.5x

Bikeleasing - Operational deep dive

Comparable IFRS revenue figure for 9M 2021 not available; Bikeleasing only accounted according to German GAAP prior to acquisition

# of facilitated bikes grew by +43% to ~99,000

# of corporate customers now ~43,000 with ~2.4 million employees

Due to strong organic cash flow, voluntary early repayment of parts of the acquisition loans in the amount of €15.0 million in addition to the €5.7 million in H1

Palas - Operational deep dive

Strongest 9M in Palas' corporate history

Palas' core business, excl. Covidrelated test rig sales, continued to grow strongly with +27% year-on-year

Certification process of Palas' core products in China delayed due to repeat lock-downs in different regions

9

IHSE - Operational deep dive

Strong rebound with +20% revenue growth year-on-year due to partial lifting of travel and contact restrictions

Improvement in EBITDA margin year over year, though still below the target level of 35%

Continuously high order backlog due to supply chain challenges with regards to semiconductor parts

M&A activity: Selected deal flow

SECURITY TECHNOLOGY

EBITDA margin: ~25% Source: M&A Process

SOFTWARE SaaS

Source: Proprietary

ENERGY TECHNOLOGY

EBITDA margin: ~50% Source: M&A Process

Revenue

€150m - €155m

(2021: €127m | +19 to +23%) (previous guidance: €140m - 150m)

Adj. EBITDA margin

corresponding Adj. EBITDA

35%

(2021: 38%) (previous guidance: 35%)

€53m - €54m

(2021: €48m | +10 to +13%) (previous guidance: €49m - 53m)

Forecast FY 2022 raised

Happy to answer your questions

BROCKHAUS TECHNOLOGIES AG

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: ir@brockhaus-technologies.com 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