Tecnotree Oyj · OMXHEX:TEM1V
Tecnotree Oyj — Shareholder Meeting (April 2024)
25 slides from Tecnotree Oyj's shareholder meeting presentation, Apr 15, 2024
Slide 1: Tecnotree Annual General Meeting 2024
Tecnotree Annual General Meeting 2024 April 15, 2024
Slide 2: CEO review
CEO review Annual General Meeting 2024 April 15, 2024 Padma Ravichander, CEO
Slide 3: Linking Core Management Pay to Dividend Target
Linking Core Management Pay to Dividend Target Subject to the approval of the shareholders at the AGM of the reverse split and dividend distribution policy, the management of the Company will take the following actions with regards to Management Compensation. i. The Company will adopt a stable divid
Slide 4: Tecnotree Winning Plan
Tecnotree 2024 2025 2026 Winning Plan Customer Embedded AI Self Configurable 5G, AI, IOT Bundles Free Cashflow + Higher Growth & Investor Investor Opening Dividends Returns Confidence AI Enabled ESG Inclusive Returns on Share Employee Employee Culture Holder Equity Preferred Vendor Challenger in the
Slide 5: Financial Results 2023
Financial Results 2023 Order Intake Order Backlog EBIT Shareholder’s Equity 95.4 ME 80.2 ME 23.8 ME 86.5 ME YOY 11% YOY 16% YOY 30% YOY 8% Net Sales At constant currency Cash Inflow At constant currency 78.4 ME 107.2 ME 62.3 ME 84.1 ME YOY 9% YOY 47% YOY 6% YOY 40%
Slide 6: Tecnotree Achievements in 2023
Tecnotree Achievements in 2023 12 New Logos Top 14 Deliveries Revenue growing above 3 MVNOs 40+ LOBs supported 3 deliveries in <12 market trend @ 2.1% across customers months Euro mn 3 Logos in North America MTN- Nigeria (100Mn+ subs) – Metamorphose MTN IC - B2B MTN South Sudan, MTN ESwatini, MTN Za
Slide 7: Tecnotree's Expanding Global Footprint
Tecnotree’s Expanding Global Footprint Radian United Healthcare Claro Telefonica Follow-the-sun delivery approach with 24x7 Delivery & Customer support Team spread in 32 Locations worldwide Entel Telenor Ooredoo Telus Telikom PNG Nepal Telecom Customer Experience – 2023 Revenue Monetisation - 2023 1
Slide 8: Tecnotree's Delivery Footprint in 2023
Tecnotree’s Delivery Footprint in 2023 Business view of Revenue ARR share of revenue increased from 35% in FY ‘22 to 48% in FY’23 2018 2019 2020 2021 2022 Q1-Q3 20232023 e More than 70% of Order Backlog – ARR Licence Third party hardware &software Delivery ARR 250+ out of box journeys Record high Or
Slide 9: Tecnotree business model - Diversified offerings & revenue streams
Tecnotree business model - Diversified offerings & revenue streams Competitive productized portfolio driving faster go-lives and outcome-based business transformations Increased recurring revenue business models enabling 20% reduction in Tecnotree’s order to cash cycles in 2023 Customer Value Based
Slide 10: Tecnotree AI Strategy
Tecnotree AI Strategy - Enabling business growth & optimization across customers and in internal operations 137+ Co-Pilot Shoots Tecnotree Roots ChatBot AI PATENTS ChatBot Customers Delivery & Support Employee Enablement Business needs-driven Deep understanding of Privacy, accuracy capability infusi
Slide 11: Tecnotree pioneering telecom standards globally
Tecnotree pioneering telecom standards globally 59 TMF Open APIs conformed with ISO Security Certifications 2024 9 Real World OPEN API First Digital Platform Company in the World to be Certified for Real-World Open API Implementation 2023 Diamond Badge 2022 Customer Experience – 2023 Revenue Monetis
Slide 12: Tecnotree's Growing Total Addressable Market
Tecnotree’s Growing Total Addressable Market Revenue growing above market trend Euro mn • BSS IT Global Market 2023 was $11.2B Tecnotree: +13% CAGR BSS* Global market: 2.1% (2022-27) • Gartner recognized Tecnotree as challenger with growing market share • Tecnotree’s total addressable market (TAM) h
Slide 13: Investment Highlights
Investment Highlights STRONG FINANCIALS PORTFOLIO & OPERATIONS Stable financial position Futuristic product portfolio catering to transforming Strong current assets market demand Operational turnaround Receivables are diversified with GROWTH with high EBIT driven by no dependency on single large cos
Slide 14: 2023 Financials
2023 Financials Indiresh Vivekananda Chief Financial Officer April 15, 2024
Slide 15: FY 2023 Financial performance highlights
FY 2023 Financial performance highlights ❑ Consistent growth in revenue EUR million 01-12/2023 01-12/2022 ❑ Company recorded the highest Net sales 78.4 71.6 revenue in its history by 107.2 Change YoY% 9% 11% Me (72.7 Me) at Constant Currency EBIT 23.8 18.3 ❑ Improved EBIT on account of Change YoY% 3
Slide 16: Revenues driven by market demand and increased focus on collections
Revenues driven by market demand and increased focus on collections Revenue at 78.4 M in Q1-Q4 2023 Collections at 62.3 M in Q1-Q4 2023 9% y-o-y growth 6% y-o-y The company recorded highest revenue in its history at EUR 107.2 The full year operating cash inflow at Constant Currency was EUR 84.1 (72.
Slide 17: Healthy financial ratios
Healthy financial ratios Current ratio Account receivables ageing 7,4 40 13% 25% 6,3 35 20% 5,6 5,5 5,3 5,4 30 5,2 4,2 4,5 25 15% 4,1 3,9 3,7 20 15 10% 10% 20% 12% 10 11% 10% 5% 5 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 0 0% not due 0-90 days 9
Slide 18: Cost optimization to impact net income
Cost optimization to impact net income Operating Result (EBIT) at 23.8 M in Q1-Q4 2023 Euro mn Net income at 11.2 in Q1-Q4 2023 Euro mn 30% y-o-y growth -4% y-o-y 46% 39% 33% 30% 32% 36% 21% 32% 30% 29% 22% 17% 16% 12% 19% 15% 27% 15% 28% 25% 23% 29% 8% 11% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 19: Global Cost Reduction Program
Global Cost Reduction Program Increasing portion of customer-specific product development to take place closer to customers 5-7% of global OpEx reduction expected by 2025 through optimization across Key levers for cost optimization ❑ People ❑ Infrastructure Leveraging Global Presence for Optimisatio
Slide 20: CCD Update
CCD Update CCD’s being utilized for increasing Tecnotree’s competitiveness 23.1 Me has been collected till date as per the agreed terms 43.1 Me CCDs were subscribed A consortium of shareholders have agreed to subscribe to The scheme was the remaining CCDs ~ 20Me launched on 22nd within Q2 ‘24 June,
Slide 21: Proposed Cap-table Actions
Proposed Cap-table Actions Strive to maintain consistent dividend levels Currently 318 Mn shares Reverse Split 20:1* Nominal dividend of 1 cent – Company better enabled to Requires 3 Mn Euros in cash payout dividends *Planned Timelines: 1.Reverse share split - 19th April 2024 2.Cancellation of share
Slide 22: Prospects and risks
Prospects and risks February 22, 2024
Slide 23: Key risks
Key risks Constantly evolving market demanding disruptive Footprint in economically vulnerable countries & emerging technologies & differentiators – high competition markets Mitigation Mitigation Constant investment in R&D to stay ahead of the curve and Expanding into newer and developed markets com
Slide 24: Prospects 2024
Prospects 2024 Revenue to Operating profit be higher by (EBIT) to be higher by 2% - 7% 7% - 15% Assumptions: ▪ Telecom BSS industry growth poised at 2.1% annually from 2022-2027* ▪ Tecnotree continues to grow above market rate led by demand for its competitive products and services ▪ More ARR busines
Slide 25: THANK YOU
THANK YOU Investor relation connects: indiresh.vivekananda@tecnotree.com Investor.relations@tecnotree.com