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Original-Research: Avemio AG - from GBC AG

08.07.2025 / 08:43 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQ

Group.

The issuer is solely responsible for the content of this research. The

result of this research does not constitute investment advice or an

invitation to conclude certain stock exchange transactions.

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Classification of GBC AG to Avemio AG

Company Name: Avemio AG

ISIN: DE000A40KY59

Reason for the research: Research study (Anno)

Recommendation: BUY

Target price: 15.00 EUR

Target price on sight of: 31.12.2025

Last rating change:

Analyst: Cosmin Filker; Niklas Ripplinger

Transformation into a media technology group with a focus on high-margin

digital revenue

Avemio AG suffered a decline in business development in the past financial

year 2024. Sales fell by 11.4% to EUR 87.86 million (previous year: EUR 99.15

million). As a provider of customised solutions for the professional

production of film, TV, and video content, the company in particular

suffered from customers' continued reluctance to invest due to the economic

situation. Furthermore, the manufacturers' pace of innovation did not

accelerate, which meant that customers of Avemio AG lacked incentives to

buy.

Looking at the two segments, however, it can be stated that only the retail

segment was responsible for the Group-wide decline in sales, with sale

totalling EUR 78.8 million (previous year: EUR 96.1 million). In the

higher-margin digital segment, the company benefited from the first

full-year inclusion of sales from MoovIT/MSP, which was acquired in 2023,

and reported a significant increase in sales to EUR 8.5 million (previou

year: EUR 2.9 million). The acquired companies LEA/Infinment, which have been

consolidated into Avemio AG since 1 August 2024, only contributed low

inorganic growth with a revenue contribution of EUR 0.8 million.

The reduction in sales is also reflected in a decline in EBITDA to EUR -0.93

million (previous year: EUR -0.05 million). On the one hand, gross profit

improved significantly due to the higher digital share, while on the other

hand, personnel expenses increased due to the full-year inclusion of MoovIT.

Avemio AG also reported a decline in earnings after taxes to EUR -6.54 million

(previous year: EUR -3.45 million). This was largely due to goodwill

amortisation with no effect on liquidity, which is recognised as scheduled

in accordance with HGB accounting. As a result of M&A activity in recent

years, goodwill amounted to EUR 21.17 million as at 31 December 2024, while

total amortisation in the past financial year amounted to EUR 3.79 million.

For the current financial year 2025, the Avemio Executive Board expects a

cautious reversal of the reluctance to invest on the customer side and

anticipates growth momentum from the second half of the year in particular.

The digital segment, on the other hand, should benefit from the launch of

new products. The focus here is on the launch of Cara.One and helmut.cloud,

which should also contribute to sales growth from the second half of the

year on. Overall, the company anticipates slight sales growth. This should

be accompanied by the effects of the cost-cutting programme, which is set to

save EUR 1.5 million annually from 2026. Against this backdrop, EBITDA should

already be positive again in the current financial year 2025.

Based on this, we expect sales to increase by 4.1% to EUR 91.50 million in

2025 and expect sales growth to accelerate in the coming financial years. We

are assuming increasing momentum in the retail segment and anticipate strong

sales growth in the digital segment. The increasing importance of the

digital segment and the complete development of the cost-cutting programme

should enable double-digit EBITDA margins again by the end of our forecast

period (FY 2027).

As part of our DCF valuation model, we have determined a target price of EUR

15.00. Based on the current share price, we assign a „BUY“ rating.

You can download the research here:

https://eqs-cockpit.com/c/fncls.ssp?u=3ac9c047cdf00237954d88e668410688

Contact for questions:

GBC AG

Halderstraße 27

86150 Augsburg

0821 / 241133 0

research@gbc-ag.de

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Disclosure of potential conflicts of interest pursuant to Section 85 WpHG

and Art. 20 MAR The company analysed above has the following potential

conflict of interest: (5a,7,11); A catalogue of potential conflicts of

interest can be found at

https://www.gbc-ag.de/de/Offenlegung

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Date and time of completion of the study: 04.07.2025 (11:15 am)

Date and time of publication of the study: 07.07.2025 (10:00 am)

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2166506 08.07.2025 CET/CEST

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