Slide 1: Q4 2024 Results Presentation
Q4 2024 Results Presentation February 2025
Slide 2: Presenters and Agenda
Presenters and Agenda 1 Q4 Earnings Review and Highlights 2 Strategy Update Padma Ravichander CEO 3 Q4 Financial Review and Highlights 4 Q&A Indiresh Vivekananda CFO Tecnotree Investor Presentation Q4 2024 All Figures in Million Euros (ME)
Slide 3: CEO Update
CEO Update Padma Ravichander
Slide 4: Tecnotree's Expanding Global Footprint
Tecnotree’s Expanding Global Footprint Follow-the-sun delivery approach with 24x7 Delivery & Customer Support Team spread in 32 Locations worldwide 1.2 Bn+ 90+ Subscribers Service Providers stc 70+ 80+% Countries with Employees TM Product Deployments Forum Certified 4200+ 40+ Product Features Produc
Slide 5: Guidance and Results 2024
Guidance and Results 2024 2024 Guidance Revenues EBIT Constant Currency 2024 Constant Currency 2024 +2-7% Guidance achieved +7-15% Guidance achieved +4% +9% Free Cashflow / H2 2024 • 3 consecutive quarters of positive free cash flow • Tier 1 telco win in the U.S.A 2-5 ME Guidance achieved • 6.9 ME c
Slide 6: Historical Revenue Performance
Historical Revenue Performance • Seasonality in quarterly revenues • Moving to an ARR model reduces variability • In 2023, Tecnotree won several new logos in the Revenue by Quarter Middle East and booked healthy license revenues • 2024 revenue impacted by exiting from conflict 22,2 regions 21,4 19,9
Slide 7: 2024 Quarterly EBIT Performance
2024 Quarterly EBIT Performance EBIT by Quarter • Strong cost control mechanisms implemented from Q2 2024 resulting in strong recovery of EBIT despite lower revenues in H2 2024 v 2023 10,9 • Cost reductions were possible due to early investments in stack standardization and productization 7,9 6,2 6,
Slide 8: 2024 Free Cash Flow Performance by Quarter
2024 Free Cash Flow Performance by Quarter FCF by Quarter • Tecnotree faced 6 consecutive quarters of negative free cash flow due to FX losses and inflationary pressures in various geographies upto Q1 2024 5,5 • Strong measures enforced in Q2 2024 including • Cost reductions • Think Cash Do Cash • N
Slide 9: 2024 Capex to Sales
2024 Capex to Sales Guidance: Capex to Sales is 10-12% by 2025 2024 Trends in Capex 2025 Strategy to reduce capex to sales further • Product stack maturity with 400 Out-Of-The-Box journeys • Increase in the use of AI to boost engineering • Retiring non-telecom business and revenue that was delivery
Slide 10: 2024 Currency Risk
2024 Currency Risk Guidance: Reduce exposure to frontier country FX risk to 10-15% in 3 years by 2027 *Source: Bloomberg, Central Bank of Nigeria 2024 Update 2025 Strategy • Revenue hit in 2024 due to extreme FX devaluation of • Stronger signs of Naira stability due to improved Nigerian Naira and A
Slide 11: The Power Of Partnerships
The Power Of Partnerships Why Partnerships? Partners Till Date • Partnerships allow Tecnotree to gain scale in new markets – for implementation and going to market • Supports growth in Cloud Enabled delivery (Microsoft Azure, AWS, GCP, Green cloud) • Partnering with IT services companies increases a
Slide 12: Guidance 2025
Guidance 2025 Guidance for 2025 is a continuation of our strategy to drive higher returns and more FCF (free cashflow) for our shareholders Revenues EBIT Margin Free Cashflow 2025 Constant Currency 2025 Low to mid-single digit % growth Margin growth by 200 basis points (2%) Greater than 4 ME Existin
Slide 13: CFO Update
CFO Update Indiresh Vivekananda
Slide 14: Results Analysis Q4 and 2024
Results Analysis Q4 and 2024 Q4 YOY% 2024 YOY% Q4 24 : 0.4 ME 2024 : -1.8 ME Free Cash Flow Q4 23 : -0.6 ME +1ME 2023 : - 9.7 ME +8 ME Q4 24 : 18.5 ME 2024 : 81.4 ME -17% +4% Revenue in Constant Currency Q4 23 : 22.2 ME 2023 : 78.4 ME Q4 24 : 17.6 ME -9% 2024 : 71.6 ME Revenue Q4 23 : 22.2 ME -21% 2
Slide 15: Free Cash Flow – Results and Analysis Q4 and 2024
Free Cash Flow– Results and Analysis Q4 and 2024 Q4 YoY% 2024 YoY% Q4 24 : 0.4 ME 2024 : -1.8 ME Free Cash Flow Q4 23 : -0.6 ME +1 ME 2023 : - 9.7 ME +8 ME +10% 2024: 31.8 ME ARR 2023: 28.7 ME -7% Capex/Sales 2024 : 13 ME 2023 : 14 ME +15% 2024 : 176 DSO Days 2023 : 153 -1% 2024 : 79.6 ME Order Back
Slide 16: Breakdown of Receivables By Age
Breakdown of Receivables By Age 2024 Receivables 37.7 ME DSO Days 225 216 170 176 >1 year 152 151 153 24 % 144 Not due 39 % 270-365 days 0% 9.2 MEUR 90-270 days 21 % <90 days Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q2 24 Q4 24 16 % Tecnotree Investor Presentation Q4 2024 All Figures in Million Euros (ME
Slide 17: 2024 Financial Performance
2024 Financial Performance ME 2024 2023 2022 • Improved efficiency kept EBIT flat despite Net sales 71.6 78.4 71.6 the reduction in revenue. Change YoY% -9% 9% +11% EBIT 23.8 23.8 18.3 • Net sales in Constant Currency of 81.4 ME Change YoY% 0% 30% -23% (+4% YOY) Financial items -3.7 -9.9 -1.1 One-ti
Slide 18: One-Time Item of 7.3 ME
One-Time Item of 7.3 ME Tecnotree acquired a Middle Eastern customer through Lifetree India (2008) and provided services until mid-2023; no further revenue recognised from this customer Due to geopolitical risks and Tecnotree’s mature market entry plans, exiting this customer was necessary Receivabl
Slide 19: 2024 Financial Position
2024 Financial Position Consolidated balance sheet, ME 2024 2023 • Continued investment for product and portfolio enhancement Non-current assets • Moderate rise in receivables Intangible assets - own development 34.1 27.2 Intangible assets - external 9.0 6.3 • Deferred taxes in India written off Tan
Slide 20: Q&A Session
Q&A Session Tecnotree Investor Presentation Q4 2024
Slide 21: Thank You
Thank You Empowering Digitally Connected Communities to over 90+ Telecom Providers around the world, since 1978