Bike24 Holding AG

Quarterly Report • Nov 10, 2022

QUARTERLY STATEMENT Q3

SEPTEMBER 30, 2022

TABLE OF CONTENTS

AT A GLANCE	3
BUSINESS PERFORMANCE	4
REVENUE AND EARNINGS SITUATION	5
NET ASSETS AND FINANCIAL POSITION	6– 7
FORECAST	8
CONSOLIDATED FINANCIAL STATEMENTS
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME OR LOSS (UNAUDITED)	10
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION (UNAUDITED)	11
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (UNAUDITED)	12
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)	13

AT A GLANCE

	Q3	9M
Group Revenues1	+12.9% EUR 72.6 m	+5.1% EUR 201.4 m
Adj. EBITDA Margin1	– 7.8 pp	– 7.9 pp
	3.3%	5.7%
Free Cash Flow1	EUR –8.3 m	EUR – 19.2 m
Cash and Cash Equivalents 2	–	+107.9%
	–	EUR 21.0 m
Active Customers 3	–	+14.4%
	–	914,125
Average Order Volume	+3.8%	+3.1%
	EUR 138	EUR 142
Number of Orders	+11.1%	+2.5%
	527,777	1,418,483
Repeat Orders	– 7.8 pp	– 3.7 pp
	68.4%	71.3%
Average Number of Orders per Active Customer	– 2.90%	– 10.36%
	0.58	1.55

1 Compared to Sep 30, 2021 | 2 Compared to Dec 31, 2021 | 3 Last twelve months

BUSINESS PERFORMANCE

While supply chain challenges showed initial signs of easing compared to the first half of 2022, the economic environment remained tough in the third quarter. Fears of recession and persistently high inflation led to cautious purchasing behavior on the part of customers. However, BIKE24's nine-month figures prove that the strategic initiatives are paying off, as the company remains on a growth course: Overall, total revenues rose by 5.1% to EUR 201.4 million in the reporting period, and by as much as 12.9% to EUR 72.6 million in the third quarter. The main growth drivers were the localized online shops in France, Italy, and Spain, which more than tripled their sales volume in the third quarter, as well as the full-bike business, which recorded an above-average increase of 64%.

The number of active customers as of September 30, 2022 was a record-high 914 thousand, an increase of around 14% compared to the previous year's reporting date. While the average revenue per customer and year decreased by 7% to EUR 284 (LTM), the average order value increased by 3% from EUR 138 to EUR 142. Around 71% of orders (– 3.7pp) were placed by returning customers. The return rate decreased to 17.5% from 18.4% in the previous year.

REVENUE AND EARNINGS SITUATION

BIKE24 generated revenues of EUR 201.4 million in the first nine months of 2022. Compared to the same period of the previous year, this corresponds to an increase of 5.1% (9M 2021: EUR 191.7 million; Q3 2022: + 12.9% to EUR 72.6 million). Revenues of EUR 18.5 million (9M 2021: EUR 7.8 million) were generated in the localized markets Spain, France and Italy, an increase of 139% (Q3: +209% to EUR 8.1 million).

The gross margin decreased by 4.8pp to 27.5% in the nine-month period, partly because of unusual high comparables in the previous year and increased promotional activities during this quarter (Q3: 24.8% after 30.6%).

Personnel expenses increased by 19.7% to EUR 20.0 million (9M 2021: EUR 16.7 million), due to already communicated investments in the second management level in the second half of 2021 as well as one-off expenses for additional temporary staff to compensate for the high level of sick leave in the first half of 2022. In the third quarter, personnel expenses amounted to EUR 6.8 million after EUR 5.8 million, an increase of 18.3%.

Other operating expenses decreased slightly by –0.8% from EUR 26.6 million to EUR 26.4 million in the reporting period (Q3: +18.2% from EUR 8.2 million to EUR 9.7 million). In the previous year, other operating expenses included transaction costs related to the IPO of Bike24 Holding AG. These non-recurring costs were almost completely offset by increased marketing and selling expenses.

Adjusted for extraordinary expenses of EUR 2.3 million (Q3: 885 thousand), which mainly relate to expenses for the share option program, earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) amounted to EUR 11.5 million compared to EUR 26.1 million in the same period last year (Q3: EUR 2.4 million after EUR 7.1 million). This corresponds to an adjusted EBITDA margin of 5.7% for the nine-month period (Q3: 3.3%).

NET ASSETS AND FINANCIAL POSITION

Net assets

The Group's total assets increased by 18.1% to EUR 356.3 million as of September 30, 2022, compared to EUR 301.6 million as of December 31, 2021.

Non-current assets increased by 5.1% to EUR 219.6 million compared to December 31, 2021 (EUR 209.0 million). This is due to the investments in property, plant and equipment and the capitalization of rights-of-use from leases, especially for the new logistics center in Spain.

Current assets rose by 47.5% or EUR 44.0 million in the first nine months of 2022, from EUR 92.7 million to EUR 136.7 million. Within current assets, inventories increased by EUR 27.9 million, from EUR 68.2 million to EUR 96.1 million. The reasons for the increase in inventories are faster-than-expected supply chain normalizations, our strategic and long-term procurement strategy in the context of the supply chain challenges at the beginning of the year, and less demand than initially expected due to depressed consumer sentiment. Other assets increased by EUR 4.0 million to EUR 14.2 million. This was mainly due to VAT receivables and advance payments for inventories.

Cash and cash equivalents of EUR 21.0 million were significantly higher than the level of EUR 10.1 million at the comparable reporting date of December 31, 2021. This was due to inflows from the utilization of the credit facility.

Non-current liabilities increased from EUR 50.3 million to EUR 97.2 million. The main driver was the aforementioned credit utilization, as liabilities to banks increased by EUR 38.4 million to EUR 39.4 million. Furthermore, new leasing obligations and lease extensions caused an increase in non-current financial liabilities by EUR 11.4 million to EUR 18.9 million. Among other things, this is mainly related to the new logistics center in Spain.

In the area of current liabilities, trade payables increased by EUR 6.2 million to EUR 17.5 million due to the inventory build-up. Other financial liabilities rose slightly by EUR 0.3 million to EUR 1.9 million. Other liabilities, which mainly comprise provisions for personnel costs and VAT liabilities to foreign tax authorities, increased by EUR 2.1 million to EUR 16.0 million. Overall, current liabilities were EUR 8.9 million above the level of the comparable reporting date and amounted to EUR 37.0 million as of September 30, 2022.

Equity decreased slightly by –0.5% to EUR 222.1 million compared to EUR 223.3 million as of December 31, 2021. The equity ratio decreased to 62.3% (December 31, 2021: 74.0%).

NET ASSETS AND FINANCIAL POSITION

Financial Position

BIKE24 generated a negative operating cash flow of EUR – 18.3 million from operating activities in the first nine months of 2022, compared to EUR – 13.5 million in the same period of the previous year. The change is mainly due to the lower profit for the period and increased trade accounts payable.

At EUR –9.1 million, the cash outflow for investing activities was higher than the previous year's figure of EUR –4.0 million. The investments in the first nine months of 2022 mainly relate to the new logistics center in Spain and, in the area of Intangible assets, capitalized own work for the webshop and other software.

The company recorded a cash inflow of EUR 38.2 million from financing activities after a cash inflow of EUR 3.0 million in the same period of the previous year. The utilization of a credit facility in the amount of EUR 39.0 million is the reason for this inflow of funds, whereas the payment of lease liabilities led to an outflow of funds in the amount of EUR 1.1 million.

As of the balance sheet date, cash and cash equivalents amounted to EUR 21.0 million compared to EUR 10.7 million on the previous year's balance sheet date, so that sufficient solvency is ensured. Furthermore, BIKE24 has a credit line with a total volume of EUR 50.0 million, which was used in the amount of EUR 40.0 million as of September 30, 2022.

FORECAST

The business was impacted by the war in Ukraine and its effects on the overall economic situation during the reporting period. As a result, we revised our original forecast on July 7, 2022 and now expect revenue growth of –5% to +5% and an adjusted EBITDA margin between +3% and +6% for the 2022 financial year. As of today, we reiterate this updated forecast.

Dresden, November 9, 2022

Andrés Martin-Birner Timm Armbrust CEO CFO

CONSOLIDATED FINANCIAL STATEMENTS

JANUARY 1, 2022 TO SEPTEMBER 30, 2022

IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS), AS ADOPTED BY THE EUROPEAN UNION FOR THE BIKE24 HOLDING AG

I. CONDENSED CONSOLIDATED INTERIM STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME OR LOSS (UNAUDITED)

in EUR k	January 1, 2022 – September 30, 2022	January 1, 2021 – September 30, 2021	July 1, 2022 – September 30, 2022	July 1, 2021 – September 30, 2021
Revenue and other income
Revenue	201,380	191,680	72,616	64,294
Other income	176	82	26	– 9
Total income	201,555	191,762	72,642	64,285
Operating expenses
Personnel expenses	– 19,994	– 16,703	– 6,811	– 5,759
Expenses for merchandise, consumables and supplies	– 145,948	– 129,658	– 54,633	–44,637
Impairment loss on trade receivables	– 378	– 168	– 209	– 77
Other expenses	– 26,006	– 26,428	– 9,487	–8,129
Depreciation and amortization	– 11,271	– 10,508	– 3,835	– 3,543
Total expenses	– 203,598	– 183,464	– 74,976	–62,145
Earnings before interest and taxes (EBIT)	– 2,042	8,297	– 2,335	2,140
Finance income and expense
Finance income	0	1	0	0
Finance expense	– 1,146	– 2,091	–415	– 137
Finance expense, net	– 1,146	– 2,090	–415	– 137
Loss/Profit before tax	–3,188	6,207	– 2,749	2,002
Income tax income (expense)	684	– 1,985	649	– 619
Result for the period	– 2,505	4,222	– 2,100	1,383
Other comprehensive result	–	–	–	–
Comprehensive result	– 2,505	4,222	– 2,100	1,383

II. CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

in EUR k	September 30, 2022 (unaudited)	December 31, 2021 (audited)
Assets
Intangible assets	127,490	132,135
Goodwill	56,753	56,753
Property, plant and equipment	35,346	20,065
Financial assets	6	3
Total non-current assets	219,594	208,955
Inventories	96,089	68,160
Other assets	14,225	10,197
Income tax assets	3,647	2,352
Trade and other receivables	1,745	1,856
Cash and cash equivalents	20,969	10,086
Total current assets	136,676	92,651
Total assets	356,270	301,606
Equity
Subscribed capital	44,165	44,165
Capital reserves	180,250	178,873
Retained Earnings	-2,288	216
Total Equity	222,127	223,254
Liabilities
Liabilities to banks	39,428	995
Other financial liabilities	18,892	7,493
Provisions	642	641
Deferred tax liabilities	38,203	41,168
Total non-current liabilities	97,165	50,296
Liabilities to banks	230	11
Other financial liabilities	1,886	1,577
Provisions	1,424	1,304
Other liabilities	15,972	13,866
Trade payables	17,466	11,298
Total current liabilities	36,978	28,056
Total liabilities	134,143	78,352
Total equity and liabilities	356,270	301,606

III. CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (UNAUDITED)

in EUR k	January 1, 2022 – September 30, 2022	January 1, 2021 – September 30, 2021	July 1, 2022 – September 30, 2022	July 1, 2021 – September 30, 2021
Cash flows from operating activities
Profit for the period	– 2,505	4,222	– 2,100	1,383
Adjustments for:
– Depreciation and amortization	11,271	10,508	3,835	3,543
– Write-ups	– 2	– 3	–	–
– Finance income	0	– 1	–	0
– Finance expense	1,146	2,091	415	137
– Income tax (income) expense	– 684	1,985	– 649	619
– Share-based compensation expenses	1,376	419	575	379
– Employee stock expenses	2	–	–	–
- Transaction costs	21	4,202	21	552
Result after adjustments	10,625	23,424	2,097	6,613
Changes in:
– Inventories	– 27,930	– 28,522	– 3,735	– 5,894
– Trade and other reveivables	111	477	223	395
– Other assets	– 5,160	– 7,562	– 2,000	–4,021
– Trade and other payables	6,168	5,381	– 3,369	– 2,967
– Other liabilities	2,106	5,691	670	– 1,012
– Provisions	121	– 941	– 123	236
Cash generated from operating activities	– 13,958	– 2,052	– 6,236	– 6,651
Interest paid	– 714	– 2,803	– 145	– 162
Income tax paid	– 3,577	–8,696	– 942	– 1,009
Net cash from operating activities	– 18,249	– 13,552	– 7,323	– 7,821
Cash flows from investing activities
Acquisition of property, plant and equipment	– 5,364	– 2,139	– 2,294	– 530
Acquisition of intangible assets	– 3,693	– 1,811	– 1,482	– 1,156
Net cash used in investing activities	–9,057	–3,950	–3,776	– 1,686
Cash flows from financing activities
Proceeds from the issue of shares (less costs)	–	97,000	–	–
Payments related to the issue of shares	– 21	–4,567	– 21	– 3,591
Proceeds from transactions with owners	352	–	–	–
Payments related to the share buyback	–	–406	–	–406
Proceeds from liabilities to banks	39,000	980	–	–
Repayment of liabilities to banks	–	–88,880	–	–
Payment of lease liabilities	– 1,143	– 1,169	– 380	– 383
Net cash used in/from financing activities	38,188	2,958	–401	–4,380
Increase (decrease) in cash and cash equivalents, net	10,883	14,543	– 11,499	– 13,886
Cash and cash equivalents at the beginning of the period	10,086	25,235	32,468	24,578
Cash and cash equivalents at the end of the period	20,969	10,692	20,969	10,692

IV. CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)

in EUR k	Subscribed capital	Capital reserve	Retained Earnings	Total equity
Balance as of January 1, 2022	44,165	178,873	216	223,254
Share-based compensation	–	1,376	–	1,376
Issue of employee shares	0	2	–	2
Result for the period	–	–	– 2,505	– 2,505
Total comprehensive result	–	–	–	–
Comprehensive result	0	1,378	– 2,505	– 1,127
Balance as of September 30, 2022	44,165	180,250	– 2,288	222,127

CONTACT

Bike24 Holding AG Breitscheidstraße 40 01237 Dresden

ir@bike24.net

14 Quarterly Statement Q3 2022