Brockhaus Technologies AG

Investor Presentation • Nov 14, 2024

2

Elevating

Champions
Earnings Call 032024

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 "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 conflict in the Middle-East, potential supply bottlenecks, the ongoing energy crisis, inflation, high interest rates and other global macroeconomic and geopolitical tensions 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 alternative performance measures, please refer to note 6 of BKHT's consolidated financial statements for 2023 or page 14 onwards of BKHT's quarterly statement 9M 2024.

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 2024

Selected group financials

Adjusted EBITDA

Adjusted EBIT

Note: For definitions and detailed explanations of the alternative performance measures, please refer to page 94 onwards of our annual report 2023 and page 14 onwards of our quarterly statement 9M 2024. Figures for 9M 2023 represent pro
forma values.

Highlights

Highly profitable growth in 9M 2024 with strong performance of both business segments in Q3 2024

Forecast 2024 unchanged with revenue between $€ 220$ million and $€ 240$ million and adjusted EBITDA between $€ 80$ million and $€ 90$ million

Continuous deleveraging with net leverage of $\sim 0.56 \mathrm{x}$ adj. pro forma EBITDA (LTM) and high financial reserves available for future growth initiatives

Free cash flow increases over proportionally

Highlights

Free cash flow before tax significantly increased by $60 \%$ to $€ 26.2$ million in 9M 2024

Operating cashflow of €27.6 million in Q3 2024 marking the highest quarterly operating cashflow since foundation of BKHT

Bikeleasing's working capital peaks in summer, leading to most cash flow being generated in H2

Continuously increasing shareholder value

Adjusted earnings per share (EPS)

Revenue by quarter

BIKELEASING.DE

(1) Probonio

"Inse.

Revenue by region

BIKELEASING.DE

(1) Probonio

KPIs by segment (pro forma)

(€ thousand)	HR Benefit \& Mobility Platform		Security Technologies		Central Functions and Consolidation		BKHT Group
	9M 2024	Pro forma 9M 2023	9M 2024	9M 2023	9M 2024	9M 2023	9M 2024	Pro forma 9M 2023
Revenue	151,104	113,185	24,235	29,500	-	(1)	175,339	142,684
Revenue growth	$33.5 \%$		(17.8\%)		-		22.9\%
Gross Profit	101,252	77,167	18,012	22,024	321	265	119,585	99,455
Gross Profit Margin	$67.0 \%$	$68.2 \%$	$74.3 \%$	$74.7 \%$			68.2\%	69.7\%
Adjusted EBITDA	70,620	55,466	3,210	7,787	$(5,815)$	$(4,474)$	68,015	58,779
Adjusted EBITDA Margin	$46.7 \%$	$49.0 \%$	$13.2 \%$	$26.4 \%$			38.8\%	$41.2 \%$
Adjusted EBIT	68,266	53,342	1,981	6,743	$(6,028)$	$(4,564)$	64,219	55,521
Adjusted EBIT Margin	$45.2 \%$	$47.1 \%$	$8.2 \%$	$22.9 \%$			$36.6 \%$	$38.9 \%$

BKHT's revenue growth plus adj. pro forma EBITDA is $\mathbf{6 2} \%$ - clearly overachieving our own "Rule of 50"

[^0]
[^0]: 2. BROCKHAUS

3. TECHNOLOGIES

Constant net leverage well below the target level

Net debt calculation as per 9M 2024

(€ million)

Highlights

Available financing capacity allows for future growth, inter alia through new acquisitions

Conservative leverage ratio of $\sim 0.56 \mathrm{x}$ adj. proforma EBITDA (target value of $\sim 2.5 \mathrm{x}$ )

High balance sheet quality and continuous deleveraging underlining resilience of our business

Bikeleasing - Operational deep dive

Record 9M for Bikeleasing in terms of revenue, earnings and cash flow

Continued strong new customer onboarding, especially within SMEs

Number of corporate customers grew to $\sim 70 \mathrm{k}$ with $\sim 3.7$ million connected employees
# of facilitated bikes with $\sim 123 \mathrm{k}$ slightly below the previous year, but at a substantially higher margin, mainly due to:

1. Weakened consumer behavior
2. Strict rating management resulting in record high decline rates for new business (keeping default rates low; currently <1\%)
3. Corporates behind approx. $10 \%$ of connected employees not having shifted to the floating rate system yet
   

Significant improvement in unit economics throughout 2024

IHSE - Operational deep dive

Revenue recognition for projects with requested customer delivery in the second half of the year lead to significant increase in Q3

Sales in EMEA and APAC significantly above the previous year and continuously growing

AMERICAS below previous year, mainly due to realization of the company's largest single project ever in Q3 2023

Order intake for 9M 2024 on a continuously high level, split across multiple customers and verticals, further strengthening the customer base

Healthy order backlog of $€ 8.3$ million for the last quarter of 2024 leading to high utilization in our production facility

Q1 '21Q2 '21Q3 '21Q4 '21Q1 '22Q2 '22Q3 '22 Q4'22 Q1'23 Q2 '23Q3 '23 Q4'23 Q1'24 Q2 '24Q3 '24
Quarterly revenue

Q1 '21Q2 '21Q3 '21Q4 '21Q1 '22Q2 '22Q3 '22 Q4'22 Q1'23 Q2 '23Q3 '23 Q4'23 Q1'24 Q2 '24Q3 '24
Quarterly order intake

Group Forecast FY 2024

On track to build one of Germany's leading technology groups.

Revenue

(2023: €187m | +18\% to +29\%)

Adj. EBITDA
(2023: €62m | +29\% to +45\%)

For details on alternative performance measures, please refer to page 64 of our 2023 annual report.

Medium-term Outlook 2025
(€ million)

Q\&A

Happy to answer your questions

2

BROCKHAUS TECHNOLOGIES

BROCKHAUS TECHNOLOGIES AG

Thurn-und-Taxis-Platz 6
60313 Frankfurt am Main, Germany
Phone: +49 6920434090
Fax: +49 69204340971
E-Mail: in@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: 1861109637