• 3U continues its growth trajectory in the reporting period with revenue growth of 3.4 %
• Segment development attests to resilient business model
• Operating results in line with expectations
• Management Board affirms guidance for the financial year 2024

3U HOLDING AG (ISIN DE0005167902; identifier: UUU) has made a sound start to the new financial year 2024 and continues on its growth trajectory, in line with expectations. In the first quarter of 2024, consolidated revenue rose by 3.4 % to EUR 13.7 million a year-on-year comparison (Q1 2023: EUR 13.3 million). The development of the ITC segment (Information and Telecommunications Technology) and the SHAC segment (Sanitary, Heating and Air Conditioning Technology) both made key contributions to the positive development.

Having increased its revenue by more than 50 %, the ITC segment was the strongest driver of growth. Following weak construction activity in the previous year, the SHAC segment reported a slight upturn in revenue in the first months of 2024. Lower selling prices and outages in the wind farms resulted in the Renewable Energies segment being unable to match its good year-earlier performance in the first quarter of 2024. A technical defect in the Langendorf Wind Farm’s substation in particular prevented virtually any electricity being fed into the grid in January. This defect had nevertheless been eliminated by the start of February.

Above all, the increase in personnel expenses attributable to acquisitions, higher other operating expenses due in particular to maintenance costs and repairs on the wind energy facilities, and the rise in the cost of materials resulted in lower EBITDA, as anticipated. The Group’s earnings before interest, taxes, depreciation and amortisation came in at EUR 0.7 million in the reporting period, down from EUR 1.9 in the first three months of 2023. This result corresponds to an EBITDA margin of 5.5 % (Q1 2023: 14.0 %).

Depreciation and amortisation totalled EUR 1.0 million in the first quarter of 2024 (Q1 2023: EUR 0.9 million). During the period under review, 3U continued to report a positive financial result of EUR 0.3 million (Q1 2023: EUR 0.8 million), along with tax income of EUR 0.1 million (Q1 2023: tax expenses of EUR 0.2 million).

The proportion of the consolidated result attributable to the shareholders of the parent company amounted to EUR 0.1 million (Q1 2023: EUR 1.4 million).

Well-balanced business model promotes growth

In the first quarter of 2024, the ITC segment lifted its revenue by 53.1 % in a year-on-year comparison, from EUR 3.1 million to EUR 4.8 million. The decline anticipated in the Voice Retail business was offset by notable growth in Managed Services and Voice Business. Segment EBITDA advanced to EUR 1.2 million (Q1 2023: EUR 0.9 million). The EBITDA margin stood at 24.7 % in the reporting period compared with 29.7 % the year before.

Due to the weather, and first and foremost because of a technical defect in the Langendorf Wind Farm’s substation in January, the Renewable Energies segment’s energy yield fell considerably short of the strong first quarter of 2023. Segment revenue dropped by 54.6 % as a consequence of considerably lower monthly market values and settled at a level of EUR 1.2 million (Q1 2023: EUR 2.5 million). The results generated in the period under review were burdened by the aforementioned unscheduled repair costs. Segment EBITDA declined by 64.7 % to EUR 0.7 million (Q1 2023: EUR 1.9 million).

The SHAC segment’s revenue increased by 2.9 % to EUR 8.0 million in the first three months of 2024 (Q1 2023: EUR 7.8 million). Growing demand for photovoltaic modules, inverters and electricity storage right through to full-scale PV plants was especially evident in the upturn in e-commerce operations during the reporting period. Against the backdrop of a slight increase in operating expenses, EBITDA stood at EUR –0.2 million (Q1 2023: EUR –0.1 million).

Sound balance sheet ratios as a foundation for future growth

As of 31 March 2024, total assets amounted to EUR 119.3 million, thus remaining at the level posted on 31 December 2023 (EUR 119.3 million). On the assets side, the increase in inventories of EUR 2.6 million to EUR 16.3 million is mainly attributable to higher stock levels in the SHAC segment. The decline of EUR 4.2 million in the Group’s cash and cash equivalents is largely to be seen in the context of this development.

Compared with year-end 2023, the equity ratio remained virtually unchanged at 75.2 % as of 31 March 2024. Total liabilities were pared down marginally, from EUR 29.8 million to EUR 29.6 million, resulting in an improvement in the debt-to-equity ratio of 33.1 % (31 December 2023: 33.2 %). Despite the reduced level of financial liabilities, the net cash position declined and, at the end of the reporting period, posted EUR 35.9 million (31 December 2023: EUR 39.8 million).

Outlook: rigorous implementation of the profitable growth strategy – affirmation of positive guidance for 2024

The company anticipates further profitable growth over the course of 2024. The Management Board assumes that the ITC segment will continue to perform well. At the same time, as part of its MISSION 2026 growth strategy, the Board will continue to concertedly implement the measures necessary to strengthen its competitiveness in its SHAC e-commerce operations. These measures include the realignment of the range on offer, flanked by expanding the proportion of profitable products and services. Concerning the Renewable Energies segment, 3U is opting for extensive investments to expand its own power generating capacities. Having obtained approval for the Langendorf Wind Farm repowering project, the Group can move ahead in realising the project in the coming quarters with the aim of raising installed capacity in Langendorf from 22.5 MW to 43 MW as planned over the period through to the end of 2025. Depending on the general conditions in the construction industry, the Group is anticipating further growth in the SHAC segment later on in the year.

Accordingly, 3U expects overall revenue for 2024 – without acquisitions – to settle in a range of between EUR 58 million and EUR 62 million, which would correspond to a year-on-year increase of around 10 % and 18 % respectively. Owing to the necessary upfront investments in 3U’s future competitiveness, and in conjunction with repowering measures commencing at the Langendorf location, the EBITDA margin is anticipated between approximately 7 % to 8 % in 2024. Net of these one-off effects, the return would improve further in 2024 compared with 2023.

“The start to the year affirms our confidence of achieving notable growth in 2024. Our expansion strategy in the ITC segment in particular is bearing fruit, with double-digit growth rates in revenue and profit. We also derive confidence from the slight improvement in the economic environment which works in favour of demand in SHAC, the Group’s largest segment, although business with heat generators is currently still very sluggish. The focus in the Renewable Energies segment has been clearly placed on expanding our capacities, above all in the Langendorf Wind Farm,” states Uwe Knoke, Board member of 3U Holding AG, commenting on the performance in the first three months.

Important milestone achieved for planned capacity expansion

The approval procedure in line with Germany’s BImSchG is a very complex process as it takes account of all aspects of a wind turbine’s impact on the environment. Consequently, a positive decision is the most important regulatory milestone in the whole project workflow for an enterprise of this kind. The approval covers the building and operating of turbines along with the construction of access roads to the individual turbine sites and the necessary crane erection and assembly areas. There are also plans for building a substation for feeding the energy produced into the grid. Work on preparing the site for building on the designated project area in Langendorf is due to commence in the autumn of 2024.

Planned new wind energy facilities to double electricity production in Langendorf

The repowering project provides for seven of the 15 existing wind turbines to be replaced by five new turbines. The new Vestas V162 wind turbines have a nominal output of 6.2 megawatt (MW), a hub height of 169 m and a rotor diameter of 162 m. Upon implementation of the project, the installed wind turbine capacity in Langendorf will be raised from currently 22.5 MW to 43.0 MW. The design of the new turbines allows them to generate around twice as much environmentally compatible electricity per megawatt of nominal output as the existing facilities.

The energy yield of the Langendorf Wind Farm amounted to more than 35.5 GWh in 2023, thereby even exceeding the farm’s own yield target of 35 GWh. After repowering, the Langendorf Wind Farm’s electricity production is likely to increase to around 95 GWh, which corresponds to the average power consumption of around 30,000 four-person households in mathematical terms. The eight remaining GE 1.5sl wind turbines, each with a nominal output of 1.5 MW, will continue to operate during the construction phase and thereafter. The 3U Group’s total output in producing environmentally compatible electricity free of CO₂ emissions will increase by almost 40 %, from 53.0 MW to an overall 73.5 MW, once the new wind turbines are operating. 3U has estimated a total financing volume of more than EUR 50 million for implementing the project, largely covered by long-term loans.

The first electricity generated by the new facilities scheduled for 2025

3U ENERGY PE GmbH is managing the project involving the entire conversion measures on the Langendorf Wind Farm. Pending the successful participation in a tender for onshore wind and possible delays, the foundations for the new wind turbines are due for completion in mid-2025 in line with the project plan. The delivery and erection of the wind turbines and the completion of the new substation have been scheduled for the second half of 2025. The new facilities in the Langendorf Wind Farm are expected to go live and produce electricity in the fourth quarter of 2025 at the latest.

“In our groupwide growth strategy, the Renewable Energies segment is playing an increasingly important role,” states Christoph Hellrung, 3U HOLDING AG’s Chief Financial Officer and Management Board member responsible for the Renewable Energies segment. “The repowering targeted for our existing wind farms and the resumed project developments in Brandenburg open up the prospect for us of considerable upside potential for revenue and earnings in the medium term. The strong expansion of our facilities for generating electricity from wind and sun is an important contribution to achieving Germany’s climate targets and also for implementing our value strategy under our MISSION 2026.”

• de as the rising star in the league of the top-rated e-commerce shops in the home technology segment
• With selfio, DIYers can draw on extensive support in their renovation projects

Marburg, 30 October 2023 – selfio.de, the leading online shop for home technology products in the group of 3U HOLDING AG (ISIN DE0005167902), has been awarded the “TREND-SHOP 2024” by the COMPUTER BILD magazine and the market research portal Statista. Online traders who have enjoyed the greatest success in recent years have therefore been honoured for the fourth time.

The 3U subsidiary’s e-commerce shop ranks among the Top Shops 2024 in the “Home Technology” segment. The “Technical Quality” and “Growth” received “very high” and “very strong” ratings from the jury. The comprehensive offer of home technology products, flanked by numerous product innovations for saving energy, combined with a reliable customer service and excellent advisory service, runs like a thread through the entire market presence of the 3U’s e-commerce operations, which is one of the 3U Group’s strategic focuses.

“We are delighted by this award. We now have proof of our unceasing endeavours to improve ourselves and live up to the expectations of our customers. We place emphasis not only on providing suitable products for our customers but also on being a reliable point of contact in this dynamic sector. Our journey lies ahead of us, and we greatly appreciate the trust of our customers,” says Roger Moore, Selfio GmbH’s Managing Director.

The long list for this year’s ranking features 10,000 online shops. Retailers were required to produce evidence of relevant turnover and online traffic in the last two years. Marketplace vendors, portals for commercial customers or traders with a presence purely in a foreign language were not considered. Shops who only offer digital merchandise or focus on subscriptions and contracts were not included either.

The award was made on the basis of a detailed analysis, with the defined drivers specified as online access (traffic), revenue growth and technical quality. Sub-scores were defined for all three criteria. The 750 shops with the highest overall score were given the Trend Shop 2024 accolade.

The list is divided up into eight categories: “Motor, Sport & Outdoor”, “Office, Technology & Media”, “Leisure, Game & Hobby”, “Garden & Handicraft,”, “Food & Health”, “Fashion & Accessories”, “Universal Suppliers” and “Home”. The categories are each divided into several sub-segments.

Grade overview: In the case of 12 of the 53 shops in the “Home Technology” segment, “Technical Quality” was rated as “excellent”, with 33 as “very high” and another eight with “high”. The growth of 18 participants was rated as “excellent”, with 15 as “very strong”, and 20 as “strong”.

• Founded in 1990, cs Group pursues growth strategy with comprehensive customer support and cloud solutions for medium-sized businesses
• 3U aims at stronger expansion of managed services portfolio and regional presence
• Joint activities in product range and sales can be realised quickly

3U HOLDING AG (ISIN DE0005167902) is acquiring all shares in cs communication Systems GmbH, based in Pleidelsheim and with locations in Nuremberg and Leipzig, as well as cs network GmbH, also in Pleidelsheim (together "cs Group", https://www.citrus.tel). A corresponding purchase agreement was signed on 2 August 2023. The final closing conditions have been fully met as of today. The purchase price payment will be made using 3U’s existing financial resources. As usual, the parties have agreed not to disclose the exact terms of the transaction.

The cs Group has been successfully active in the telecommunications technology market since 1990 and, with currently almost 50 employees, specialises in telecommunications systems, cloud solutions, network and fibre optic technology. Today, the main focus is on migrating the telecommunications systems of corporate customers to the cloud and connecting their internal and external communications to Microsoft Teams. The cs group offers its approximately 400 existing customers a comprehensive package of services ranging from consulting and project planning to the sale, rental and brokerage of leasing contracts for telecommunications hardware and software to the installation, maintenance and ongoing support of communications solutions and networks. The cs group addresses the market for medium-sized companies and public clients with 20 to 300 office workplaces. It has already established a sound and promising growth strategy by acquiring new customers and upselling existing customers. The brands and offerings of the cs Group will be continued in the ITC segment of 3U. In the 2022 financial year, the group achieved a revenue of around EUR 8.2 million and is profitable.

"The cs Group is very well established in the market and has well-trained specialists. In our ITC segment, the acquisition will allow us to further expand our comprehensive portfolio of innovative solutions in telecommunications and information technology and in particular our range of managed services, as well as strengthen our presence in southern Germany," says Uwe Knoke, Member of the Management Board for Strategy and Business Development at 3U HOLDING AG. "The range of services and corporate culture at cs and at 3U are a very good fit – together we will continue the sustainable profitable growth into the future."

Peter Frohmüller, founder and managing partner of the cs Group, adds: "We are pleased to have found a competent partner and an economically strong new owner, who will continue our many years of successful activity with a high level of commitment and will consistently drive our growth strategy forward. For our employees, customers and our entire setting, we could not have found a better succession arrangement.”

• Significant time and cost savings for do-it-yourselfers and craftspeople
• Innovative complete system addresses growing demand for CO₂-neutral heating
• Utility model protection granted; patent applied for
• Important contribution to achieving climate goals

PELIA Gebäudesysteme GmbH and Selfio GmbH, subsidiaries of 3U HOLDING AG (ISIN DE0005167902), officially launched the distribution of their ThermCube (https://thermcube.de) on 16 August 2023 with a live event broadcast on YouTube. The modular, prefabricated "Heat Pump Heating Centre in a Rack" enables the quick and cost-effective installation of a complete heat pump system and thus makes it easier for homeowners to switch to CO₂-neutral heating, which will soon be required by law.

According to the German Heat Pump Association (Bundesverband Wärmepumpe e.V.), more than 200,000 heat pumps were installed in Germany in 2022 alone, and a further increase in demand is expected from next year. Across Europe, the EU Heat Pump Report 2022 estimates demand at a total of 50 million heat pumps by 2030. In view of the shortage of skilled workers, a heating system that is easy and quick to install can effectively help meet this demand and sustainably reduce the use of fossil fuels.

The ThermCube revolutionises heat pump installation

The core element of the ThermCube is a climate-friendly heat pump. All standardised hydraulic modules and control units required for its operation are permanently installed, hydraulically connected, and electrically prewired. The use of the pre-assembled complete system therefore reduces the connection time of the heating system to a fraction of the previous installation time. The ThermCube also drastically reduces the time and effort required for planning, configuration and procurement by builders and craftspeople. The components and assemblies used come from well-known brand manufacturers and are subject to documented quality controls. Installation and operation of the ThermCube are usually eligible for subsidies according to the applicable subsidy guidelines.

The ThermCube is suitable for detached and semi-detached houses with a total heat requirement of 6-11 kW, both in new and existing buildings. The footprint is less than 1 sqm. It can be installed in the house by do-it-yourselfers and also by non-specialist craftspeople. Special knowledge or special tools are not required. Only for the final dismantling and commissioning a specialised company must be commissioned. The German Patent and Trademark Office has already granted utility model protection for the ThermCube. A patent application has been filed.

Craft businesses specialising in plumbing, electrical or heating construction can also procure the ThermCube from the 3U companies. The significantly lower time expenditure enables them to process more orders with the same team of skilled workers. The ThermCube facilitates work on the construction site and ensures better planning and cost control.

"Climate-friendly, CO₂-neutral heating is currently one of the most discussed topics in the entire industry. With the introduction of the new cost-efficient and climate-friendly heating centres, we are making a further contribution to reducing CO₂ emissions and dependence on fossil fuels such as gas and oil," emphasises Uwe Knoke, Member of the Management Board for Strategy and Business Development at 3U HOLDING AG. "But it should also prove to be a significant driver for the planned rapid and sustainable growth in sales and earnings in our SHK segment. We expect demand to be good and tend to increase further and have already secured our market entry by prudent stocking of components and parts. With the ThermCube, we are expanding our product range with an innovative, economically interesting system and are tending to open up new market segments, such as the prefabricated house sector. The sales launch of the ThermCube is thus an important milestone in the course of our ‘MISSION 2026’."

• Sales growth in the Renewable Energies and ITC segment
• SHAC segment gains market share despite sales decline
• Management Board expects catch-up effects in the SHAC market and reaffirms forecast for 2023

Group revenue of 3U HOLDING AG (ISIN DE0005167902) from continued operations of EUR 25.09 million in the first half of 2023 (H1 2023) was at the level of the first half of 2022 (H1 2022: EUR 25.36 million). Revenues in the two high-margin businesses ITC (Information and Telecommunications Technology) and Renewable Energies increased further compared to the previous year. Sales in the SHAC (sanitary, heating and air conditioning technology) segment also once again outperformed the German online retail sector as a whole, but suffered a year-on-year decline against the backdrop of the downturn in the construction industry, particularly in the second quarter. This development of the strongest segment in terms of sales in the 3U Group could not be fully compensated by the pleasing growth of the other business units. Consequently, the sales proportions of the segments in the Group also changed slightly. The segment ITC generated 25.2% (H1 2022: 24.0%) of total revenues in the first half of the year, the segment Renewable Energies 17.3% (H1 2022: 16.4%) and SHAC 58.7% (H1 2022: 60.7%).

The interim financial statements as at 30 June 2023 no longer comprise the information of the cloud computing business in the subgroup of weclapp SE which was deconsolidated in the financial year 2022. Consequently, the figures from continued operations from the first half of 2022 respectively the second quarter of 2022 are used for year-on-year comparison.

EBITDA

In the first half of 2022, 3U HOLDING still recorded other operating income of EUR 9.01 million, mainly from the InnoHubs property development project. In the current reporting period, this income was significantly lower at EUR 0.84 million. The cost of materials ratio (cost of materials as a percentage of sales) was slightly lower than in the first half of 2022 at 62.8%, while the personnel expense ratio was slightly higher at 16.7%. Despite increased maintenance expenses due to the repair of a wind turbine in Roge in the first quarter of 2023, the ratio of other operating expenses to sales was now significantly lower than in the previous year at 14.3% (H1 2022: 33.2%), largely due to the costs incurred at the time in connection with the sale of InnoHubs space in the comparable period of the previous year.

Against this backdrop, Group earnings before interest, taxes, depreciation and amortisation (EBITDA) decreased to EUR 2.59 million in the first half of the 2023 financial year (H1 2022: EUR 5.99 million). As a result, the EBITDA margin at Group level reached 10.3% after 23.6% in the first six months of the previous year.

Group result

At EUR 1.69 million, depreciation and amortisation in the first half of 2023 was at the same level as in the corresponding period of the previous year (H1 2022: EUR 1.67 million). As expected, 3U recorded a positive financial result of EUR 1.44 million in the first six months of 2023 (H1 2022: EUR -0.14 million).

The consolidated result attributable to the shareholders of the parent company amounted to EUR 1.60 million in the first half of 2023 (H1 2022: EUR 2.47 million). Earnings per share were EUR 0.04 (basic and diluted) in the reporting period.

Segment results

The ITC segment posted revenue growth of 4.2% in the reporting period. In the first six months of 2023, segment revenue of EUR 6.33 million was achieved (H1 2022: EUR 6.08 million). The Data Center & Managed Services business was able to significantly increase its revenue by more than 46%. Due to internal efficiency improvements and thanks to increasing service revenues, the segment’s EBITDA increased by 13.9%. It reached EUR 1.80 million after EUR 1.58 million in the first half of 2022. The EBITDA margin of the ITC segment was thus 28.5% (H1 2022: 26.1%).

Wind yield and solar radiation were around 15% lower in the first half of 2023 than in the same period of the previous year, when wind and sun were strong. In addition, the temporary standstill of a wind turbine at the Roge wind farm in the first quarter of 2023 had a negative impact on sales. In contrast, the improved delivery conditions from the electricity supply contracts agreed for 2023 for the Klostermoor and Roge wind farms made a significant contribution to the revenue growth of the Renewable Energies Segment. Revenue increased by a total of 4.6% to EUR 4.34 million (H1 2022: EUR 4.15 million). Against the backdrop of the repair costs for the turbine in Roge, the segment EBITDA reached a total of EUR 3.21 million, which corresponds to a slight decline of 1.8% (H1 2022: EUR 3.27 million).

The Management continues to believe that the prospects for the SHAC segment, with its focus on the megatrends of e-commerce and climate-friendly or CO2-neutral heating systems, are excellent in the medium to long term. In the reporting period, however, the current business was not able to decouple itself from the overall economic environment. According to the Bundesverband E-Commerce und Versandhandel (BEVH), sales in the German online trade industry shrank by 12% in the second quarter of 2023, while the number of building permits issued for residential buildings nationwide slumped by 36%, according to the Federal Statistical Office. Thus, although business in the SHAC segment again outperformed the industry environment, it still recorded a decline in revenue and earnings. At EUR 14.72 million, segment revenue in the first half of 2023 was 4.4% lower than in the same period of the previous year (H1 2022: EUR 15.40 million). EBITDA declined from EUR -0.06 million in the same period of the previous year to EUR -0.44 million in the first half of 2023 due to lower contribution margins.

Cash flow and financials

Cash flow from operating activities amounted to EUR 0.03 million in the first six months (H1 2022: EUR 2.18 million), which, in addition to a lower result, is mainly due to a significantly lower increase in current trade payables and the change in other liabilities. Investing activities in the reporting period resulted in a cash outflow of EUR 3.74 million (H1 2022: cash outflow of EUR 3.52 million). Investments in investment property relate to the acquisition of office space in the InnoHubs building in Würzburg originally used by the former Group company weclapp, which is now intended for letting to third parties. Investments in tangible assets mainly comprise the acquisition of a plot of land for the construction of a new company headquarters in Marburg.

The cash outflow from financing activities came to EUR 117.97 million in the reporting period (H1 2022: EUR 0.57 million) and is mainly due to the distribution of the dividend for the 2022 financial year in the amount of EUR 3.20 per share. In total, cash and cash equivalents decreased as expected by EUR 121.68 million (H1 2022: decrease of EUR 1.91 million). Cash and cash equivalents amounted to EUR 68.03 million on 30 June 2023 (31 December 2022: EUR 189.70 million and 30 June 2022: EUR 10.80 million).

The almost complete distribution of the balance sheet profit of 3U HOLDING AG to the shareholders is also reflected in the Group’s equity. As of 31 December 2022, the consolidated net income was mainly increased by the sale of weclapp SE and amounted to EUR 159.0 million. The profit carried forward as of 30 June 2023 totalled EUR 45.74 million. As debt was also EUR 3.40 million lower as of 30 June 2023 than as of 31 December 2022, the consolidated balance sheet continues to show a very solid equity ratio of 76.9% (31 December 2022: 86.7%).

"At the half-year 2023, we are very satisfied with the development of our segments ITC and Renewable Energies," affirms Uwe Knoke, member of 3U HOLDING AG’s management board. "However, the fact that many do-it-yourselfers and homeowners were irritated by the political debates about the so-called heating law hampered us in the SHAC segment in the second quarter and left its mark on the half-year results. However, the sharp downturn in the sector leads us to expect catch-up effects in the coming months. With the imminent launch of our innovative ThermCube, ‘the all-in-one cabinet-housed heat pump heating system’, we are very well positioned for this."

The Management Board affirms its guidance announced in March and anticipates strong organic growth in 2023. Revenue in 2023 is expected in a range of between EUR 55.0 million and EUR 60.0 million. In view of the lower level of other income in line with expectations and the significantly higher proportion of lower margin retail business, the Management Board anticipates EBITDA of EUR 6.0 million to EUR 8.0 million. Net profit of the 3U Group is therefore expected in a range of between EUR 2.5 million and EUR 3.5 million.

The actual operating result may be higher or lower than forecast here due to the acquisition or sale of the Group’s operating units. The resulting effects can only be planned for to limited extent, however. The 3U Group remains true to its corporate purpose of creating value in the interest of its shareholders and all stakeholders and will continue to pursue its strategic course of expanding successful parts of the business successfully in the long term and, given the relevant demand, of selling them at attractive conditions.

In harmony with the corporate strategy, the Management Board is addressing a series of investment undertakings. Along with purchasing companies or customer bases in the financial year 2023 this pertains notably to repowering the Langendorf wind farm. Options for further very promising investments are meticulously assessed on a running basis.

Uwe Knoke explains further: "The medium- and long-term perspectives of 3U, as we presented them in our MISSION 2026, remain favourable, and we continue to work consistently on the implementation of our strategic measures. Temporary downturns in the industry environment can be balanced out by us as a diversified management and investment holding company. They strengthen us in our operating activities in the intact megatrends of digitalization, e-commerce and renewable energies, and in our aspiration to increase value in the interests of all stakeholders."

Half-year financial report

The interim statement on the first half of the 2023 financial year will be published on today, 14 August 2023. The report can be downloaded from the company’s website (www.3U.net) under the “Investor Relations/Publications” heading.

• A treasure trove of data, facts, documents and reports in a responsive design
• Website serves as a central information platform for all matters concerning the 3U share and the Group
• Commentaries, interviews and background information facilitate a better understanding and invite all parties to engage in dialogue and interact
• Update of the webpage dedicated to positioning as an attractive employer and company offering vocational training

The website of 3U HOLDING AG (ISIN DE0005167902) now presents a new look. The company has traditionally placed great emphasis on information and transparency and fosters the regular exchange of information with all stakeholders. The www.3u.net website provides interested parties with direct access to a wide range of documents and materials that 3U provides in an updated form and as a historical archive. The new relaunch of the website features a contemporary design and an easier overview of the various control functions. The responsive design enables content to be displayed on all manner of devices.

“We view our online presence as a central point that combines all relevant information on the Group for all stakeholders. Visitors to the website will also experience value added in their search,” says Uwe Knoke, Management Board member responsible for strategy and business development. Naturally, the website carries a wealth of updated and historical financial reports, key documents on corporate governance at 3U, upcoming dates and information on the 3U share. Under the motto of “Successful in Megatrends”, it gives an insight into the three megatrends in which 3U currently operates, as well as the respective business models, along with the products and services on offer. The webpages presenting information on the areas of business and segments provide direct access to the live websites of the subsidiaries.

Along with data and facts, comprehensive commentaries and interviews, video recordings and background discussions promote an understanding of 3U, its strategies and its prospects. Links to the YouTube channel and to the social media accounts provide opportunities for interaction and encourage dialogue.

The website offers extensive information on 3U as an employer under a dedicated heading. Budding experts in the fields of IT, marketing and office management report on their everyday experiences in a “Trainee blog”.

In summary: 3U HOLDING AG presents itself as an investment company with an understanding of actively promoting and driving the business of its subsidiaries in megatrends while acquiring assets suitable for enhancing and monetizing value in the interest of its stakeholders and – last but not least – as a company that seeks and fosters interaction.

Depending on the weather conditions, 3U generates an annual average of more than 65 GWh (gigawatt hours) of electricity from the 53 MW (megawatts) of installed nominal capacity of its three wind farms and the solar park. This means that 3U’s electricity production currently corresponds to the consumption of more than 20,000 multi-person households.

Also as a contribution to achieving the national climate targets, it is part of the growth strategy in the 3U Group to significantly expand electricity generation in the Renewable Energies segment. To this end, the company is pursuing two main approaches: repowering, i.e. the replacement of existing wind turbines with more advanced new state-of-the-art turbines, and project development, i.e. the planning and construction of new wind farms. The implementation of both strategy components is dependent on the legal planning requirements as well as on continued complex approval procedures by municipal institutions and state authorities.

Repowering

As a first step, 3U submitted an application for repowering part of the Langendorf wind farm to the Burgenlandkreis district in Saxony-Anhalt in summer 2022. Currently, 15 wind turbines with a nominal output of 1.5 MW each are operated in Langendorf. The application proposes to replace seven of these turbines with five new wind turbines with a nominal capacity of 6.2 MW each. The installed capacity of the wind farm could be increased from currently 22.5 MW to 43 MW with the implementation of the project. Due to their design, the new turbines generate about twice as much electricity per MW of rated output as the existing ones. After repowering, the total electricity production of the Langendorf wind farm would therefore increase from the current average of around 32 GWh to around 100 GWh. The eight remaining old turbines will continue to be operated during the construction phase and afterwards. For the implementation of the project, 3U estimates a financing volume of around EUR 40 million and expects a return on equity of 15 %.

For a possible repowering of the Klostermoor wind farm, 3U has held promising preliminary talks with the local authorities in anticipation of the required application and approval process and has already extended the lease agreements with the land owners of the existing farm. With the planned replacement of the six existing wind turbines with three modern wind turbines, the installed capacity of the wind farm could be increased by a factor of 3.5 from the current 6 MW to 21 MW.

If the legal requirements also allow for the existing wind farm Roge and the other areas in the wind farm Langendorf, additional repowering projects could also be planned there and implemented after official approval.

Project development

The Brandenburg state government has instructed the regional planning authorities to replace the previous "exclusion planning", which limited wind expansion, with "offer planning", which will probably lead to the increased designation of suitability areas for wind energy use. In the course of this, the regional planning for those areas where 3U intends to develop wind farm projects and has already secured rights of use will also be redrawn. Currently, 3U is evaluating various projects in Brandenburg as promising. In part, this concerns areas in which 3U had already built wind farms in the past and subsequently sold them to investors as part of its corporate purpose of increasing value. The construction of further wind farms there appears to be possible in principle.

The planning documents prepared by 2018 indicated a maximum target capacity of more than 80 MW nominal output for the planned projects in Brandenburg. Higher values would be achievable with state-of-the-art turbines.

Currently, 3U is validating the prospects and potential of the projects it has worked on and will prioritise them appropriately – also from the point of view of the internal resources at hand. It is planned to extend the lease agreements with the landowners accordingly and adjust them as necessary.

For the distribution of electricity from wind power, 3U received an average of more than EUR 80 per MWh in the 2022 financial year; in the first quarter of the 2023 financial year, the revenue averaged around EUR 104 per MWh thanks to the new electricity supply contracts negotiated at the beginning of 2022 and the positive market environment.

The 3U Group’s Renewable Energies segment also includes the Adelebsen solar park with a nominal output of around 10 MW and an average annual electricity yield of around 10 GWh. Until 2032, remuneration is generally based on the guaranteed feed-in tariff of EUR 195 per MWh in accordance with the German Renewable Energy Sources Act (EEG).

Business model

In its 2022 financial year, 3U generated revenues of EUR 7.20 million in the Renewable Energies segment from the distribution of generated electricity. Due to the low operating costs optimised in the 3U Group, earnings before interest, taxes, depreciation, and amortisation (EBITDA) of 60 % to 70 % of revenues are achieved on average.

The generation of electricity from wind and sun is dependent on the weather conditions. Solar irradiation and wind yield are beyond the control of the operators. 3U HOLDING AG and its subsidiaries as operators achieve a high technical availability of the plants as a basic prerequisite for electricity generation through professional monitoring and maintenance of the wind farms. The revenue from electricity distribution is calculated as the product of the amount of electricity fed into the grid and the respective remunerated price. Consequently, the price negotiations and arrangements on the part of the management as well as the general electricity price level have an influence on the level of the economic success of the plants. A full implementation of the projects outlined here, both in repowering and through the development of new wind farm projects, would result in electricity generation in the Renewable Energies segment in the 3U Group multiplying and the installed nominal capacity increasing to 150 to 200 MW. While project development is financed from its equity capital resources, 3U relies mainly on bank loans and, where available, low-interest programmes from the KfW Banking Group to finance repowering projects and the construction of new wind farms.

"In our group-wide growth strategy, the segment Renewable Energies is now playing a significantly growing role again," emphasises Uwe Knoke, responsible for strategy and business development on the Management Board of 3U HOLDING AG. "Repowering and project development cannot be realised overnight, but they open up considerable potential for revenues and earnings for us in the medium term. The strong expansion of our power generation from sun and wind is a contribution to achieving the national climate targets, but also to once again realising our corporate purpose of increasing value in the interest of all stakeholders."

"We are pleased about the new rating – even if it has no direct influence on our financing conditions," emphasises Christoph Hellrung, CFO of 3U HOLDING AG. "It underlines the stable course of our company. Since 2016, we have successfully focused on increasing value and on growth with our three Group segments in megatrends. In addition, we have understood how to continuously improve our key figures, also through solid financing and balance sheet policies. Also by this improved credit rating, we feel encouraged to consistently pursue our strategy, to strengthen the planned organic growth through targeted investments and to realise value increases in due course – in the interest and for the benefit of our stakeholders."