Brockhaus Technologies AG

Good afternoon, ladies and gentlemen, and welcome to the Brockhaus Technologies earnings call regarding the financial year 2021. At this time, all participants have been placed on a listen-only mode. The floor will be open for your questions following the presentation. Now, I hand the floor over to Marco Brockhaus.

Good afternoon, everyone, and thank you very much for joining the call. We are very proud to take this call today. as we believe had a transformational year behind us with two acquisitions by Cleasing.de and KVM Tech. And with that, we had tremendous growth in a year of A, uncertainty, and B, very tough market conditions. As you all know, the prices for gems like we're searching for in the technology innovation area in the german metro stands are hard to find and especially hard to find for reasonable prices with that said we did already a sales increase of 145 to 126.5 million euros on a performer basis for 2021 coming from 51.6 million 2022 with an adjusted avatar a pro forma of 48.2 million. More detail later in the presentation. Many investors asked me when we did our IPO in July 2020, Marco, what's your vision for the company in three to four years? I said a handful of companies acquired and sales of 120 to 140 million with EBITDA of 40 to 50 million. And we achieved that already, at least on a pro forma basis, in 2021, which makes us two years ahead of our target on our business plan. Maybe into more detail on page four in the summary of the financial year 2021, on an assets basis, we had revenues of 66.5 million, which beat our forecast, as well as EBITDA margin of 32.8%, which also beats our forecast. We have an adjusted EBITDA of 21.8 million. Same on the right side of the page, you see pro forma. We were in 125 to 135 on pro forma forecast for 2021, but again beat EBITDA with 48.2 million. adjusted and performer for 2021 same as the margin which we believe is a great achievement and thanks here to the acquisition of bike leasing many many investors in the markets and market itself asked us to do deals and i always replied yes but the right one and it took us a year to find the right one and here it is and that was bike leasing and is and so we're very satisfy A with the transaction itself, B with the operational and strategic development of bike using, and C with the successful integration in our group. So with that, and also with a strategic acquisition for our daughter company, IHSE, KBM Tech, which was very, very good for IHSE because it complements their IP portfolio their product IP portfolio tremendously and therefore it was a strategic move for IHSE to acquire KVM Tech and today has the full set of KVM technology from proprietary technology towards full IP. With that, we started with a continuing strong deal flow pipeline into 2022. Right now, we are in three potential transactions in early stages of due diligence. We come later into detail to that. Organizational-wise, with the growth of the company, we supplemented the executive committee by an operation manager who will start in September 2020. We are very thankful to that. because we believe it's now the time to hire an operational manager to excel ourselves and the organization. We are also ongoing search for a chief financial officer to complement management board because we believe that's also very important, A, in terms of broadening the executive management team and B, of being more strongly in the communication to the capital market. With that, first glance, I would like to hand you over to Harald Henning, our head of finance, to dive deeper into the revenues by quarter in 2021. Thank you.

Yeah, thank you, Marco, and welcome everyone from my side too. Let us just dive in on that page on quarterly revenue development. Starting at the top with Palas plotted in green bars. You can see that the company in the last quarter could not quite keep up with last year's extremely strong quarter four. That was especially fueled by COVID-19 related test mask rigs back then. Still, Q4 marked the highest quarterly top line of 2021. Looking at the whole year, sales were up 17.5%. Especially noteworthy was the growth spur of Pallas in the APAC region, where the company increased sales by 125%. In China alone, revenue grew by five times to almost 3 million euros. Proceeding to IHSE, indicated in the orange bars, here we are very happy to report that revenue throughout last year kept increasing quarter over quarter. However, as at Palaf, the strong prior year figure could not be reached, unfortunately, in the last quarter. Last but not least, on the bottom of the page, you can see the bike leasing sales contribution in the light green bar to our technology group this year. The 16.3 million euros mark the company's December revenue, the first month of consolidation into our accounts. where we closed the acquisition end of November. Let me note that December revenue included a one-off non-cash revenue effect of 6.2 million euros from the disposal of leasing receivables. Bike leasing revenue is adjusted for effects from the purchase price allocation, which is, I suppose, a rather unusual item. But on that particular topic, I'm very happy to give you some technical information in the end of our call in the Q&A session. Flipping over to KPIs by segment. I think we covered revenue conclusively on the page before, so let's get straight to profitability. I will comment on bike leasing a bit more on the next page. took it on the table on the very left two columns with figures as financial technology segment. For now, I think we can say more than 70 million euros of revenue with 70% growth margin and almost 40 million euros in EBITDA. We are very happy how the company concluded last year. At IGSE in the middle columns under the header of security technologies. Gross profit margin was somewhat down compared to 2020. The margin of 68.8% resulted among other factors from increased prices in procurement, especially due to supply shortages with respect to electronic components. Unfortunately, that gross margin effect paired with the lower revenue led to an EBTA margin of 25.5%, which is below the comparable period and also below what we see as a sustainable level for the company. But also here, we are coming from some 12% in Q1 last year and 17% in the first half of the year. So all in all, for the current market conditions, we find that very promising. Growth profit amounted to more than 80%, which is above the level of the year before and absolutely in the range of the midterm history of that company. Adjusted EBDA for Palas was 34.4% of revenue, which is a bit, but only slightly below 2020. Lastly, in the columns for central functions and consolidation, The central functions costs were essentially driven by higher personal expenses as well as increased due diligence activity throughout the year. Also due to the first time consolidation of bike leasing close to last year's end, expenses for preparing and auditing the financial statements increased based on accruals taking into the books in Q4 of last year. Conclusion and summing up on the consolidated group level, Performer revenue before PPA was 126.5 million euros, up 145% compared to last year or the year 2020. Growth profit margin was solid at close to 72%. Adjusted EBTA margin was 38%, bringing our group to a performer adjusted EBTA, as Marco mentioned before, of 48.2 million euros. As per end of December, the group had cash equivalents of 30 million euros. Turning to the next page. Let me give you some technical background on the 2020, so two years ago, numbers of bike leasing here. One of the material entities within the bike leasing group is the leasing company Hoffmann Leasing GmbH. That company was acquired by Bike Leasing only in mid 2021. The legal framework for drawing up pro forma financials only covers transactions during the pro forma year and not before. Therefore, there is no basis to have 2020 pro forma figures audited. We still would like to present them here as we do in our annual report on page 49. to give everyone a feeling for the strong operating performance of bike leasing. And what we see is the tremendous top line development with the company having doubled revenues in 2021 compared to 2020. Growth profit margin is stable at very close to 70% and adjusted EBITDA margin was extremely strong at 52% in 2020 and almost 55% in last year. This concludes the financial update, and I would like to hand over to Paul.