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, commented: “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,” added 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.”
Extensive capital investment and spending on innovation in 2022
In 2022, CHG-MERIDIAN's portfolio was extended to include the new business devicenow and the start-up circulee, which have added a global device-as-a-service concept and sustainable, professionally refurbished IT hardware for small and medium-sized enterprises (SMEs) respectively.
CHG-MERIDIAN continues to grow in geographical terms, expanding in the APAC region, and forging ahead with its corporate strategy focused on growth and internationalization.
Following the acquisition of lifecycle asset manager OPC Asset Solutions in India and the opening of a new location in Singapore, the Group is now active in 30 countries. Further expansion is planned in order to offer the broadest possible geographical coverage for global customers.
Technology usage models
“We want to establish ourselves as the leading global technology2use company, because we create, finance, and deliver technology usage models on a global scale, built on our circular economy business model,” said Wagner.
“The many challenges we saw in 2022 have made it clear once and for all that the age of use has dawned. Technology is more indispensable than ever, but access to it is becoming increasingly challenging. Our innovative response to this problem is ‘technology2use’.
“Our customers can use technology conveniently, scale it globally in accordance with their needs, and promote sustainability in a tangible manner at the same time.”
Sustainability as a business model
The circular economy has been a core feature of CHG-MERIDIAN’s business model and one of its 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 centres 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.
