CHG-MERIDIAN on a growth path | CHG-MERIDIAN AG

• Clear growth signal for lease originations: year-on-year increase of 29.3 percent to €2.23 billion.
• Rising demand: usage models instead of purchases of IT, healthcare, and industrial assets.
• CEO Mathias Wagner affirms CHG-MERIDIAN’s ambition to become the leading global technology2use company.

In a challenging market environment, CHG-MERIDIAN performed well in 2022. Compared with the previous year, it achieved an improvement in lease originations of 29.3 percent to a record figure of €2.23 billion (2021: €1.73 billion). Mathias Wagner, CEO of CHG-MERIDIAN, comments: “Many markets have regained momentum after the impact of supply bottlenecks and the coronavirus pandemic and thus contributed to our positive performance. Furthermore, the challenges of the current economic environment are leading many companies to regard financing models for IT, healthcare, and industrial assets as an attractive option.”

This is reflected in the portfolio of managed technology assets, which increased in value by 15.2 percent (at original equipment value) to €8.95 billion (2021: €7.77 billion). The Group’s net income reached €100.32 million and was therefore 11.3 percent lower than in the previous year (2021: €113.13 million). “This result had been anticipated and reflects targeted capital expenditure on our business model and on the strategic development of the model,” adds  Wagner. “In this context, equity investments, the founding of start-ups, and expansion efforts are inevitably leading to capital expenditure and start-up losses that, along with internal digitalization initiatives, are affecting our bottom line.”

The circular economy has been a core feature of the business model and one of CHG-MERIDIAN’s key competitive advantages since 1979. In 2022 alone, the Group gave a second life to approximately 924,000 IT assets – a year-on-year increase of around 10 percent. Its proprietary technology centers enable CHG-MERIDIAN to achieve a stable refurbishment ratio of 96 percent in spite of rising demand for its usage models. This actively contributes to reducing electronic waste and bringing down demand for newly manufactured equipment.

Sustainable corporate finance solutions are a further sign of CHG-MERIDIAN’s holistic approach to sustainability. Together with Helaba Landesbank Hessen-Thüringen and Landesbank Baden-Württemberg, the Group scaled up its sustainable funding models through ESG-linked loans and generated an additional €200 million, up from €50 million in 2021.