Brockhaus Technologies AG

Hello, ladies and gentlemen, and welcome to the Brockhaus Investor Update Call. At this time, all participants have been placed on a listen-only mode. The floor will be open for questions following the presentation. Let me now turn the floor over to Marco Brockhaus. Please go ahead.

Yeah, thank you, and good afternoon, everyone. Welcome to Brockhaus Technologies' earnings call for the fiscal year 2024. Before we begin, I would like to point out that the slides we are presenting will afterwards be published in the Investor's relations section of our website, brockhaus-technologies.com. After our presentation, we will open the call to questions from your side. To be fair to everyone, please limit yourself to one question plus one follow-up. Thank you very much in advance. Before we present our results, I encourage all listeners to review the legal notice on page two of our presentation. which explains the understanding of forward-looking statements. Additionally, please refer to note six of our consolidated financial statements for 2024 on page 93 onwards of the annual report 2024 for discussion on alternative performance measures, as well as the reconciliation of non-GAAP figures. For information on risk factors that could cause actual results to differ materially from forward-looking statements, we kindly refer you to the section on risks and opportunities in the Management Report 2024, starting on page 64. Flipping over to page 3 to give you a general remark on the delayed audit and final outcome. As published in our ad hoc release on August 5th, we received an unqualified audit opinion from our auditor, KPMG. The audit by KPMG confirmed our preliminary team performance metrics, group revenue and adjusted EBITDA published at the beginning of March with only very minor deviations. The only significant deviation that resulted from very detailed audit procedures were the non-cash impairments in the consolidated financial statements and financial statements of Bokhaus Technologies as published on July 16th. I will now hand over to Marcel, who will provide you for more information on the postponed and the non-cash impairments.

Thanks, Marco. Also, a welcome to everyone from my side. On the postponement of the 2024 financial statement publication, we would have also preferred to be quicker, and we supported the audit with all our strength as well as with the support of external advisers. However, the timetable is largely determined by the auditor and broadcast technologies had only very limited influence on the speed and actions of the auditor. All requests from Katie and she were answered timely to keep the audit process as efficient as possible. One of the main drivers for the delayed publication was the fact that KPMG significantly extended the scope of the audit for the whole group after certain concerns were raised by KPMG in March 2025, mainly with regard to one specific transaction at a foreign subsidiary of IHSE. The audit committee of Krakow Technologies immediately initiated an internal investigation into the underlying facts after it had been informed by KPMG. As a matter of precaution, the transaction in question in the amount of approximately €2.2 million was not included in our preliminary group revenue. Workhouse Technologies and its subsidiaries worked diligently to answer KPMG's questions and to provide all clarification and audit evidence requested by KPMG. This required considerable management and personal capacities, including a substantial amount of external support from advisors. Naturally, the audit committee and its chairman were in constant contact with the auditor and monitored the internal investigation at ISCE closely. The Supervisory Board and in particular the Audit Committee discussed the findings as well as the potential consequences extensively with us and the auditors. The last months have been very challenging not only for Broca Technologies but also for our whole shareholders. However, we are firmly convinced that we will emerge from this unfavorable situation as a stronger company. On the non-cash impairments, the goodwill of the security technology segment, so IHSE, previously valued at 80 million euros, was impaired by 40 million euros to 14 million euros in 2024 consolidated financial statements. In addition, certain PPA assets recognized during the acquisitions of IHSE and KDM Tech were impaired by 8 million euros. In the 2024 Statutory Annual Financial Statement of Broker Technologies, the shares in IHSEs reported under financial assets were impaired from €6 million by €45 million to €51 million. This has no impact on adjusted EBITDA and no cash impact. The main reason for this impairment was the weaker-than-expected performance of ISFE. Regarding the bite-leasing impairment, it is getting a bit more technical. In fiscal year 2023, a portion of our shares in bite-leasing were transferred to another wholly-owned subsidiary of us, so-called BT2 Beteiligung GmbH. thereby realizing hidden reserves. The realization of hidden reserves allowed us to pay a dividend last year. To do so, we of course had to let an external auditor value the shares of ByteEthing at that time, meaning end of 2023. At that point in time, the valuation came out to around 790 million euros, given the strong growth over the previous years. As a result, those shares were not transferred, carried in a value significantly above their original acquisition cost. Those shares were not transferred are still in the books with their acquisition cost. Due to the weaker than expected development of the German bicycle market over the last year, we had again to let an auditor compile an update valuation opinion on bike leasing, now as per end of 2024. This valuation ended in a significantly higher valuation compared to our entry valuation from end of 2021. below the updated valuation from end of 2023, when transferred some of our shares. Hence, as of December 31st, 2024, these transferred shares in BT.ZWEISER Beteiligungs GmbH were impaired from €17 million by €23 million to €47 million. Despite the impairment, the carrying amount remains well above the original acquisition cost of €22 million. The remaining shares in bike leasing, which continue to be carried at original acquisition costs, remain fully unchanged. I now hand it back to Marco, who will present you our results for the full year 2024.