Slide 1: Financial Results Q1 2024
Financial Results Q1 2024 Investor presentation January-March 2024 April 26, 2024
Slide 2: Today's presenters
Today’s presenters Padma Ravichander Indiresh Vivekananda CEO CFO
Slide 3: Agenda
Agenda 1 Business Review 2 Financial review 3 Prospects 2024 4 Q&A
Slide 4: Tecnotree's Expanding Global Footprint
Tecnotree’s Expanding Global Footprint Radian United Healthcare Claro Telefonica 90+ Follow-the-sun delivery approach with 24x7 Delivery & Customer support Team spread in 32 Locations worldwide Entel Telenor Ooredoo 1 Bn+ Telus Telikom PNG Nepal Telecom Subscribers Service Providers 70+ 80+% Countri
Slide 5: Tecnotree Winning Plan
Tecnotree Winning Plan 2024 2025 2026 Customer Embedded AI Self Configurable 5G, AI, IOT Bundles Investor Free Cashflow + Higher Growth & Investor Confidence Opening Dividends Returns Employee Returns on Share AI Enabled Employee ESG Inclusive Culture Holder Equity Preferred Vendor for Market Analys
Slide 6: Q1 2024 Highlights
Q1 2024 Highlights Net Sales Order Backlog 16.3ME 74.8ME YOY 5% YOY 10% Shareholder’s Equity EBIT 85.6ME YOY 6% 4.4ME YOY 22% Key Highlights Deliveries Partnerships Awards & Recognitions New Logo AIML POC
Slide 7: Tecnotree's Delivery Footprint
Tecnotree’s Delivery Footprint High Order Backlog (74.8 M) Delivery ARR ARR share of revenue increased from 35% in FY ‘22 to 48% in FY’23 – 29 M, maintained at 47% in Q1’24 39% 45.8 M, 61% More than 60% of Order Backlog – ARR ~300 new product features delivered via Digital Stack in Q1’24 4 key go-li
Slide 8: 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 9: Embedded AI for Humanized Digital Experiences
Embedded AI for Humanized Digital Experiences 137+ AI PATENTS Engage Tecnotree EdTech Shoots Co-Pilot Connectivity Insights for Customers Sentiment ChatBot Humanizing customer Attraction Analysis experience Customers IOT Embedded AI use Industry 4.0 cases on BSS Stack aross different industry Delive
Slide 10: 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 11: Q1 2024 Financials
Q1 2024 Financials April 26, 2024
Slide 12: Q1 2024 Financial performance highlights
Q1 2024 Financial performance highlights ❑ Consistent growth in revenue EUR million Q1/2024 Q1/2023 Q1/2022 16.3 15.5 13.3 ❑ Revenue at constant currency was Net sales 20.6 M (33% YoY) Change YoY% 5% 17% 19% ❑ SCIF at constant currency was 11.7 EBIT 4.4 3.6 2.0 M (-22% YoY) 22% 81% -34% Change YoY%
Slide 13: Stable revenue growth while collections get impacted by seasonality
Stable revenue growth while collections get impacted by seasonality Revenue at 16.3 M in Q1 2024 Collections at 9.5 M in Q1 2024 5% y-o-y growth -36% y-o-y Revenue growth driven by ongoing deliveries Seasonality and extended holidays at customer locations pushing Euro mn collections to Q2 Euro mn 21
Slide 14: Healthy financial ratios
Healthy financial ratios Account receivables ageing (after provisioning 2.6 Me) Current ratio Majority of the AR is not due 1% 5,6 5,5 5,4 74% 9% -22% -100% -48% 36,1 36,5 5,2 5,3 5,3 14,1 9,2 10 10,2 8,4 4,5 8,1 8 0,2 0 4,4 4,2 Not Due 0-90 days 90-270 days 270-365 days >1 year TOTAL 3,9 Q1 2023 Q1
Slide 15: Cost optimization drives high EBIT growth; Net Income impacted by FX losses
Cost optimization drives high EBIT growth; Net Income impacted by FX losses Operating Result (EBIT) at 4.4 M in Q1 2024 Net income at 1.6 M in Q1 2024 22% y-o-y growth Euro mn -11% y-o-y Euro mn 8% 22% 17% 16% 12% 19% 15% 11% 10% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 202
Slide 16: 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 & Operational Leveraging Global Presence f
Slide 17: Cap-table Actions
Cap-table Actions Strive to maintain consistent dividend levels and bring long term value for investors Key Timelines: Shares reduced from 318 Mn to 15.95 Mn 1. Reverse share split - approved by Board of Directors on 19th April 2024 2. Trading on new number of shares Reverse commenced from 22nd Apri
Slide 18: Prospects and risks
Prospects and risks April 26, 2024
Slide 19: 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 20: 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 21: Q&A
Q&A
Slide 22: THANK YOU
THANK YOU Investor relation connects: indiresh.vivekananda@tecnotree.com Investor.relations@tecnotree.com
Slide 23: Tecnotree AI Strategy
Tecnotree AI Strategy - Enabling business growth & optimization across customers and in internal operations 137+ Co-Pilot ChatBot Tecnotree Roots ChatBot AI PATENTS Customers Delivery & Support Employee Enablement Business needs-driven Deep understanding of Privacy, accuracy capability infusion cust
Slide 24: Tecnotree's growing above market trend
Tecnotree’s growing above market trend Revenue growing above market trend at current growth of 5% Revenue growth above Competitor trends (2023 vs 2022) Euro mn Tecnotree: +13% CAGR BSS* Global market: 2.1% (2022-27) Infrastructure + BSS : Tech Mahindra, Ericsson, Cerillion, STL, NEC Infrastructure+
Slide 25: 137+ AI Patents
Embedded AI for Humanized Digital Experiences 137+ AI PATENTS Co-Pilot Engage Customer lifecycle ChatBot Humanizing Customers Connectivity EdTech customer experience Delivery & Support Sentiment Embedded AI use Attraction cases on BSS Stack Analysis aross different industry verticals Employee Enable