Slide 1: Q3 Results Review and Investor Connect
Q3 Results Review and Investor Connect 30th October 2024
Slide 2: Presenters and Agenda
Presenters and Agenda 1 Q3 2024 Business Review and Highlights 2 Q3 2024 Execution of Financial Guidance KPIs Padma Ravichander CEO 3 Q3 2024 Financial Review and Highlights 4 Q&A Indiresh Vivekananda CFO
Slide 3: CEO Updates
CEO Updates 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 4000+ 40+ Product Features Produc
Slide 5: Top Line Metrics – Results and Analysis Q3 2024
Top Line Metrics – Results and Analysis Q3 2024 Q3 YOY% 9M YOY% Q3 23 – 21.4 ME YTD 23 – 56.2 ME -6% +12% Revenue in Constant Currency Q3 24 – 20.2 ME YTD 24 – 63.2 ME Q3 23 – 21.4 ME -4% YTD 23 – 56.2 ME Revenue Q3 24 – 19 ME -11% YTD 24 – 54 ME Q3 23 – 6.2 ME YTD 23 – 16 ME +35% +29% EBIT in Const
Slide 6: Free Cash Flow – Results and Analysis Q3 2024
Free Cash Flow– Results and Analysis Q3 2024 Q3 YoY% 9M YoY% Free Cash Flow Q3 23 – -7.9 ME Q3 24 – 1.7 ME +9.6 ME YTD 23 – - 8.8 ME YTD 24 – -2.2 ME +6.6 ME +6% Q3 23 - 7.6 ME ARR Q3 24 – 8.1 ME -6% Capex/Sales Q3 23 – 17% Q3 24 – 11% +1% Q3 23 - 151 DSO Days Q3 24 - 153 -4% Q3 23 – 78 ME Order Bac
Slide 7: Q3 Key Highlights
Q3 Key Highlights ~306 new product features delivered at a lower R&D cost in Q3’24 New Customer Key areas: In the MEA region Multi-tenancy | AIML | Cloud Nativity 8 Key Go-Lives in Q3 2024 Campaign as a Service | Marketplace for API and IOT Monetization stc Recognitions and Events Key Customers cont
Slide 8: Financial Guidance 2024 and 2025
Financial Guidance 2024 and 2025 New Financial Guidance, announced at Investor Connect September 6, 2024, including free cash flow projections and dividend payout policy Revenues EBIT Free Cashflow / H2 2024 Constant Currency 2024e Constant Currency 2024e +2-7% +7-15% 2-5 ME New Financial Guidance C
Slide 9: Q3 Revenue and EBIT
Q3 Revenue and EBIT 2-7% revenue growth and 7-15% EBIT growth in constant constant currency in 2024 Q3 2024 vs Q3 2023 Revenue Split by Region Q3 Actions Progress 83% 78% • 19 ME Revenue in Q3 2024 • 5% increase in share of revenue from Q3 2023 to Q3 2024 from mature markets • 12% increase in revenu
Slide 10: Q3 CapEx to Sales
Q3 CapEx to Sales CapEx to Sales trending at 11% in Q3 2024 Guidance for CapEx to Sales 2025 is 10-12% by 2025 Capex to Revenue Q3 Actions Progress • 4000+ features that are TMForum compliant, ready 19% 18% for deployment • Integrating AI/ML into the digital stack for productivity gains, both intern
Slide 11: Q3 Receivable Days
Q3 Receivable Days DSO days at 153 in Q3 2024 Guidance for DSO days 100-140 in 2025 DSO Days Q3 Actions Progress • DSO days reduced from 170 in Q2 2024 to 153 in Q3 2024 225 216 • DSO days continue to have seasonality • Tightening credit limits to improve collections 170 • "No Payments, No Service
Slide 12: Q3 Currency Risk
Q3 Currency Risk Frontier Markets - Till 2023: LATAM and Africa; 2024 and beyond: Africa Reduce exposure to frontier country FX risk to 10-15% in 3 years by 2027 Q3 vs Q2 2024 Revenue Share split by Frontier and Non-Frontier Markets 2024 Revenue Share by Region 75% EU - 3% APAC - 6% 48% 37% NA - 4
Slide 13: Q3 Free Cash Flow
Q3 Free Cash Flow Target of 2-5 ME in H2 2024 and >3 ME in 2025 FCF Trend Q3 Actions Progress • Free Cash Flow of 1.7 ME in Q3’2024 • ARR models with quarterly pre-payments >3 ME • Opex cuts of 4.5ME in 2024 is on target • Lowering exposure to frontier FX risk 2-5 ME • Cash collection remains sea
Slide 14: In Summary – we are poised to deliver on guidance for 2024
In Summary – we are poised to deliver on guidance for 2024 While revenue and order intake remain challenging, growth in revenue Q-o-Q and strong order intake signal recovery – We aim to meet market guidance in constant currency terms Focused on delivering OpEx and CapEx reductions to meet EBIT and F
Slide 15: CFO Updates
CFO Updates Indiresh Vivekananda
Slide 16: Q3 2024 Financial Performance
Q3 2024 Financial Performance • Dividends Update : On 1st October 2024, Tecnotree paid out 1 ME Q3/24 Q2/24 Q1/24 cent per share as approved by the share holders in the AGM Net Sales 19.0 18.7 16.3 held on April 2024. Net Sales at Constant Currency 20.2 20.2 20.5 Adjusted EBIT 5.0 6.4 4.4 • 2% growt
Slide 17: Q3 2024 Financial Performance
Q3 2024 Financial Performance Consolidated balance sheet, ME 30.9.2024 30.9.2023 31.12.2023 • Balance Sheet is strengthened by 10% increase in cash. Non-current assets • 1.7 ME positive Free Cash Flow generated in Q3 2024 Intangible assets - own development 32.2 26.8 27.2 Intangible assets - exter
Slide 18: Global Cost Reduction Program on track for 2024 and Beyond
Global Cost Reduction Program on track for 2024 and Beyond OpEx to Net Sales in YTD 2024 was 58% compared to 60% in YTD 2023 OpeEx to Net Sales YTD 2024 was 52% compared to 66% in H1 2024 Q4 Cost Optimization Plans 5-7% of global OpEx reduction expected by 2025 through cost efficiency actions (EUR 4
Slide 19: Q&A Session
Q&A Session Tecnotree Investor Presentation Q2 2024 P.19
Slide 20: Thank You
Thank You Disclaimer: Please note that certain percentages and numerical figures presented in this video have been rounded up for ease of presentation. For the precise and complete financial data, kindly refer to our official Q3 2024 report. The Q3 2024 report contains the actual figures that should