BIKE24 plans listing on Frankfurt Stock Exchange in 2021

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BIKE24 plans listing on Frankfurt Stock Exchange in 2021

• Leading e-commerce bike platform in continental Europe aims for listing on the Regulated Market (Prime Standard) of the Frankfurt Stock Exchange
• Focusing on premium products that range from bicycle parts, accessories and clothing to traditional bicycles and e-bikes as well as adjacent product categories, BIKE24 has established itself as a destination of choice for the fast-growing community of bike enthusiasts
• BIKE24 operates on an international level and runs country-specific online shops in Germany, Austria and Spain and serves customers in more than 80 countries around the world
• BIKE24 has had a positive adjusted EBITDA since inception and realized double-digit EBITDA margins and an annual top-line growth of 30% from 2018-2020
• In 2020, BIKE24 achieved revenues of EUR 199.2 million and an adjusted EBITDA of EUR 26.7 million (13.4% adjusted EBITDA margin), while the number of customers rose to close to 700,000
• Megatrends such as green mobility and increasing health awareness are driving demand and market growth in the long-term
• A private placement of shares prior to the listing will comprise a capital increase in the magnitude of EUR 100 million
• Amongst others, the proceeds will be used to further accelerate BIKE24's growth path and continue its international expansion in line with a defined growth strategy
• In order to achieve a significant free-float of at least 40%, the major shareholder, Riverside's sixth vintage European Fund, is committed to sell part of its existing holding

Dresden, 07. June 2021 - Bike24 Holding AG ("the Company" or, together with its subsidiaries, "BIKE24"), one of the leading e-commerce bike platforms in continental Europe with a focus on the premium segment, is preparing to list its shares on the Regulated Market (Prime Standard) of the Frankfurt Stock Exchange. Prior to listing, BIKE24 and its shareholders intend to execute a private placement that includes newly issued shares from a capital increase as well as existing shares from the holdings of the Company's major shareholder Riverside's sixth vintage European Fund.

BIKE24 is a leading e-commerce platform in continental Europe with a clear focus on the premium segment. With 77,000 products from more than 800 brand manufacturers, its online shop offers customers an unparalleled range of bike products in the continental European market, including parts, accessories and clothing, traditional bikes and e-bikes, as well as adjacent sports, electric and outdoor products.

"The combination of our broad product assortment, our focus on customer service, the long-established partnerships with our brand partners and suppliers, and our automated and efficient order processing and fulfilment structure have enabled us to create an ecosystem that attracts a loyal and affluent customer base, including many bike enthusiasts," explains Andrés Martin-Birner, CEO and co-founder of BIKE24.

In 2020, BIKE24 had 691,000 customers, up 53 percent from 2019, and processed around 1.5 million orders, up from 1.0 million in 2019. BIKE24 has a high rate of returning customers as it offers the full range of parts, accessories and clothing in addition to bikes and complementary products. BIKE24's efficient logistics, order processing and IT infrastructure has been designed to support further growth. The automated warehouse in Dresden, Germany, ensures both fast shipping and substantial scalability.

Strong revenue and customer base growth driven by a high level of customer satisfaction
CFO Timm Armbrust: "We have achieved remarkable growth in recent years. As BIKE24 generates mostly unpaid website traffic (2020: 97 percent), performance marketing expenses are far less than 1 percent, which is extremely low compared to the overall industry."

Founded in 2002 by a group of bike enthusiasts, including BIKE24's current CEO Andrés Martin-Birner, the Company showed strong revenue growth across the years. From 2018 on, revenue has grown by an average of 30 percent per year with double digit EBITDA margins. In 2020, BIKE24 generated revenues of EUR 199.2 million, an increase of around 45 percent compared to 2019, while the adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) increased by more than 70 percent to EUR 26.7 million. In the first quarter of 2021, revenue was up around 75 percent year-on-year at nearly EUR 58 million, while the adjusted EBITDA more than doubled from EUR 2.9 million in the first quarter of 2020 to EUR 7.3 million in the first quarter of 2021.

BIKE24's range of products, which is unparalleled across continental Europe in terms of breadth and depth, combined with attractive prices, fast shipping and comprehensive customer advice, leads to a high level of customer satisfaction: around 65 percent of sales in 2020 were generated with existing customers, and both their order frequency and average order volume have risen continuously over the past three financial years. The Net Promoter Score of 77 in 2019 and top ratings on Trustpilot and in other rankings confirm the success of BIKE24's customer proposition. Thanks to this customer-centric approach and a correspondingly high recommendation rate, BIKE24 is able to acquire new customers organically and cost-effectively.

Stock exchange listing to finance the further acceleration of growth in continental Europe and future business development
"Online sales of parts, accessories, clothing and bikes have enormous growth potential," says Andrés Martin-Birner. "Going public is therefore the next obvious step in BIKE24's development, supported by several highly relevant megatrends such as green mobility and increasing health awareness. The planned IPO enables us not just to raise equity capital and improve our capital structure but also gives us the flexibility to pursue our long-term growth ambitions and expand our leading position in continental Europe."

Today, BIKE24 is active with country-specific web shops in the German, Austrian and Spanish markets. In addition, BIKE24 serves customers in more than 80 countries around the world via its international online shop www.bike24.com. The proceeds from the private placement will be used, among other things, for the expansion of BIKE24's fulfilment infrastructure domestically and abroad and the localization of its offering in certain foreign markets. After the successful launch of the localized online shop in Spain, BIKE24 plans to roll-out and localize its offering in France and Italy, including the launch of local online shops as well as the set-up of local logistics and fulfilment centres. In addition, BIKE24 intends to further improve the customer's online experience through the use of new technologies. A part of the proceeds will also be used to optimise the capital structure by refinancing existing bank liabilities.

Growth is driven by various societal megatrends simultaneously
After continuous strong growth in recent years, the continental European online and offline bicycle market - consisting of the product categories parts, accessories, clothing, traditional bicycles and e-bikes - reached a volume of around EUR 22 billion in 2019, of which EUR 6.2 billion in Germany alone.

BIKE24 expects both the European and German bike markets to continue to grow, further spurred by long-term megatrends such as increasing health awareness, sustainable green mobility solutions and the increasing propensity of customers to acquire premium products online. In addition, the development of urban cycling infrastructures in connection with highly supportive regulatory initiatives, both on a European and national level, is expected to further boost demand. This includes the European Green Deal. Furthermore, according to the European Cyclist Federation (ECF), more than 300 programmes containing tax incentives promoting the use of bikes and e-bikes are currently offered by state, local and municipal authorities across Europe. Support for these programmes is expected to increase in the following years. For example, the German Federal Ministry of Transport recently announced that it would fund the expansion of cycling infrastructure in Germany with EUR 1.46 billion until 2023.

The market for e-bikes is particularly promising: according to a recent OC&C analysis and management estimates it is expected to have grown by c. 70 percent in Germany from EUR 2.7 billion 2019 to EUR 4.6 billion 2020. The growth in e-bikes is also expected to strongly drive the market segment for parts, accessories and clothing due to customers' desire for appropriate equipment as well as higher technical complexity and maintenance requirements.
Long-standing expertise and proven partnerships form the basis of the business
With nearly 20 years of in-depth market know-how gained since its foundation in 2002, along with long-established active relationships with over 800 brand manufacturers and suppliers, BIKE24 has built up a unique level of expertise. Already active in cycling as a teenager, CEO and co-founder Andrés Martin-Birner combined his passion for bikes with his online know-how in 2002 and thus laid the foundation for BIKE24 together with Falk Herrmann and Lars Witt. All founders are still shareholders in the Company. Today, a highly qualified management team of e-commerce specialists is behind BIKE24's success. Besides Andrés Martin-Birner and Lars Witt, this includes CFO Timm Armbrust, CMO Carsten Wich and CIO Martin Wünnenberg. In addition to their enthusiasm for biking, they share many years of experience in the online sector.

Further details on the Offering
In the course of the planned private placement, new shares from a planned capital increase are expected to be offered, with targeted gross proceeds of approx. EUR 100 million. Furthermore, the major shareholder, Riverside's sixth vintage European Fund, is committed to a secondary component to reach a significant free float and will also make existing shares available for a possible market standard over-allotment. The founders and the BIKE24 management team will not sell any shares in the Offering. A lock-up of six months is expected for the Company and for the existing shareholders, and a lock-up of twelve months for those members of management holding shares. Berenberg and JP Morgan act as Joint Global Coordinators and Joint Bookrunners for the planned transaction.
 

Media contact:
Bettina Fries
E-Mail: [email protected]
+49 172 2976243

Investor Relations:
Thomas Schnorrenberg
E-Mail: [email protected]
+49 151 46531317
 

About BIKE24
BIKE24 is one of continental Europe's leading e-commerce bike platforms. The online retailer with a focus on the premium segment is the central contact point for the fast-growing community of bicycle enthusiasts and thus promotes green mobility. Founded in Dresden in 2002 by CEO Andrés Martin-Birner, Falk Herrmann and Lars Witt, responsible for Legal & Own Brands, the company has quickly developed into one of continental Europe's leading companies as well as a globally active online retailer in this fast-growing market. The online shop offers customers 77,000 products from more than 800 brands. This gives BIKE24 the widest range of branded products in the sector in continental Europe. The online bike platform is already present with three local webshops in Germany (BIKE24.de), Austria (BIKE24.at) and Spain (BIKE24.es) in continental Europe. In addition, the international shop (BIKE24.com) supplies customers all over the world.

The Riverside Company
The Riverside Company is a global private equity firm focused on investing in growing businesses. Since its founding in 1988, Riverside has made more than 750 investments. The firm's international private equity and structured capital portfolios include more than 120 companies.

Disclaimer
These materials may not be published, distributed or transmitted in the United States, Canada, Australia or Japan. These materials do not constitute an offer of securities for sale or a solicitation of an offer to purchase securities (the "Securities") of Bike24 Holding AG (the "Company") in the United States, Australia, Canada, Japan or any other jurisdiction in which such offer or solicitation is unlawful. The Securities of the Company may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the "Securities Act"). There will be no public offering of the securities in the United States. The Securities have not been, and will not be, registered under the Securities Act. The securities referred to herein may not be offered or sold in Australia, Canada or Japan or to, or for the account or benefit of, any national, resident or citizen of Australia, Canada or Japan subject to certain exceptions.
This publication constitutes neither an offer to sell nor a solicitation to buy securities. No public offer will be made. An investment decision regarding securities of the Company should only be made on the basis of the securities prospectus which will be published promptly upon approval by the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin)) and will be available free of charge on the website of the Company.
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This announcement also contains certain financial measures that are not recognized under International Financial Reporting Standards ("IFRS"). These non-IFRS measures are presented because the Company believes that they and similar measures are widely used in the markets in which it operates as a means of evaluating the Company's operating performance and financing structure. They may not be comparable to other similarly titled measures of other companies and are not measurements under IFRS or other generally accepted accounting principles.
THIS DOCUMENT IS NOT A PROSPECTUS BUT AN ADVERTISEMENT AND INVESTORS SHOULD NOT SUBSCRIBE FOR OR PURCHASE ANY SHARES REFERRED TO IN THIS ADVERTISEMENT EXCEPT ON THE BASIS OF THE INFORMATION CONTAINED IN THE PROSPECTUS.