Tecnotree Oyj · OMXHEX:TEM1V
Tecnotree Oyj — Investor Presentation (March 2023)
17 slides from Tecnotree Oyj's investor presentation, March 2023
Slide 1: Investor Presentation
INVESTOR [ PRESENTATION March, 2023 Empowering Digitally Connected Communities
Slide 2: Tecnotree – years of technology expertise serving CSPs globally
Tecnotree – 45 years of technology expertise serving CSPs globally About Tecnotree 2022 Key Highlights 70+ 1 Bn+ €71.6 mn 35% Countries with Subscribers Product Deployments Revenues Recurring Support Revenues 80+% 90+ Employees TM Forum Certified Service Providers €68.9 mn €80 mn Order Book Equity I
Slide 3: Strong and recognized brand driving a diversified customer portfolio
Strong and recognized brand driving a diversified customer portfolio stc
Slide 4: Diversified revenue streams – investing in market transformation
Diversified revenue streams – investing in market transformation BSS Stack: BSS Stack: SaaS License and Delivery Managed Services and Moments and DiWa Blueprints for Empowering Transaction based Subscription based Digitally Connected One-time revenue; fixed fee Maintenance Contracts revenue Communit
Slide 5: Diversified revenue mix with stable growth
Diversified revenue mix with stable growth Customer profile Business view +7 +4 +3 +4 +1 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2023 e Legacy customers New customers Licence Third party hardware &software Delivery ARR • Steady increase in license revenues 2020 onwards • New logos bringing
Slide 6: Robust financial performance and record high order book
Robust financial performance and record high order book Revenue +14% CAGR Euro mn Operating Result (EBIT) +36% CAGR Euro mn 2017.5 2018 2018.5 2019 2019.5 2020 2020.5 2021 2021.5 2022 2022.5 EBIT EBIT % 37% 35% 26% 31% 71.6 18.6 23.7 64.2 13% 18.3 47.0 52.8 41.9 14.4 5.3 2018 2019 2020 2021 2022 201
Slide 7: Revenues driven by market demand and collections secured through focused initiatives
Revenues driven by market demand and collections secured through focused initiatives and backed by increased delivery capabilities 2.7 M Collections provisioning 8 M, 20% 11.5 M, 28% Not due 4.8 M , 12% Less than 90 days 90 - 270 days 9.3 M, 23% 7.1 M, 17% 270 - 365 days 2018 2019 2020 2021 2022 1-
Slide 8: Cost rationalization through organizational efficiencies
Cost rationalization through organizational efficiencies 898 Employees 1 1. Europe (HQ in Finland) 43 2. India 660 3. Argentina 37 6 4. Brazil 6 5 2 5. Dubai 21 6. US 19 4 7. Other regions 112 3 Key drivers for cost optimization • 4.5 M savings through 5-7% reduction in personnel Attrition combined
Slide 9: Tecnotree Growth Strategy
TECNOTREE GROWTH STRATEGY I NITUINTL INIA
Slide 10: Headroom for growth
Headroom for growth High growth industry Demand Drivers 1 2 0 3 3 Increase in 4 Increase in 5 Demand for Prioritization of Growth in data complexities in demand for Cloud innovative digital upgrades from consumption network Solutions & ecosystems legacy to Digital accelerated by ecosystem due to ove
Slide 11: Inorganic growth strategy
Inorganic growth strategy Tecnotree will look to achieve inorganic growth through acquisitions, especially given the favorable terms for acquirers at this time KEY FOCUS AREAS AI/ML CLOUD BSS/OSS FINTECH OTT HEALTHCARE To achieve favorable terms on target acquisitions Tecnotree will seek to leverage
Slide 12: Tecnotree + CognitiveScale Better Together
Tecnotree + CognitiveScale à Better Together Recognized Global Software Leader that Market leading AI Platform with 114+ operates in 70 countries with over 1 Billion patents that delivers intelligent customer Subscribers at the intersection of Telecom, experiences across all channels of Healthcare,
Slide 13: Additional AIML vs Existing revenue growth for 2023
Additional AIML vs Existing revenue growth for 2023 Revenue growth map on existing business without AIML EMEA Expected 2023 Revenue Growth: ASIA 7-15% LATAM NORTH AMERICA Expected 2023 AIML Revenue: 5M Euro OCEANIA 2023 AI Up/Cross sell Opportunities based on growth of Expected 2023 AI Revenue Growt
Slide 14: Key risks
Key risks 01 02 1. Geography specific inflation 2. Customer diversification& Geo expansions 1. Investment to retire large order book & productization Cost Pressures 2. Investments in AI/ML, Fintech, OTT required for Mitigation – Cost Optimization plan – remote diversification from BSS pure-play depl
Slide 15: Outlook as published on 24th February 2023
Outlook as published on 24th February 2023 q Revenue to be higher by 7%-15% q Operating profit (EBIT) to be higher by 10%-20% q Cost rationalization in Q2 of 2023 to the tune of 5%-7% q Cash recovery expected to grow by 12% to 18% Assumptions: § Continued growth in market demand for our products and
Slide 16: Key investment highlights
Key investment highlights Headroom for Unique position in the Business critical growth emerging markets offering Cost-effective Proven management Healthy operating team and agile Financials model organization
Slide 17: Thank you
Ownership structure: Top 8 shareholders own ~56% of the Tecnotree shares Others 44 % 21 % Fitzroy Investments Luminos Sun 12 % 7% JKK Padma Ravichander 9% 4% Oy Hammarén Jorma Nieminen 2% Markku Wilenius 1% THANK YOU Investor relation connects: indiresh.vivekananda@tecnotree.com Investor.relations@t