Slide 1: January-September 2023 Financial Results
January-September 2023 Financial Results Investor presentation October 27, 2023
Slide 2: Today's presenters
Today’s presenters Padma Ravichander Indiresh Vivekananda CEO CFO
Slide 3: Agenda
Agenda 1 Strategy overview and Q3 business highlights 2 Financial review 3 Prospects 2023 4 Q&A
Slide 4: Q3 Financial Results, 2023
Q3 Financial Results, 2023 Net Sales New Orders Record high Q3 21.4 ME 31 ME Orders and YoY 7% YoY 34% Order backlog (78M) Shareholder Equity Operating Result 81.6 ME 6.2 ME 29% YoY 9% EBIT YoY 23% MARGIN Key Highlights Large MENA Norway | Denmark | Sweden CSP TOP 4 Diamond Badge TOP 2 TMF Excellenc
Slide 5: Strategic Investment Focus Areas for Q4 and beyond
Strategic Investment Focus Areas Business Corporate Investment in Expansion and Financial New Product Focus offerings New market penetration Mergers and Acquisitions AI/ML | Cloud | BSS/OSS Healthcare Customer Acquisition Consolidation of debts Fintech | OTT FOCUS FOR Q4 AND BEYOND Strategic acquisi
Slide 6: Tecnotree has been investing in key focus areas for growth
Tecnotree has been investing in key focus areas for growth Business Expansion Corporate and Financial Focus R&D and Enrichment of Product stack FOCUS AREA New market New Customer From Mergers and Consolidation AI/ML CLOUD BSS/VAS Healthcare Fintech OTT penetration Acquisition Acquisitions of debts U
Slide 7: Tecnotree's Q3 Delivery Footprint
Tecnotree’s Q3 Delivery Footprint 9,9, 13% More than 50% of Order 20,2, 26% Backlog – ARR 78 M Order Backlog (Annual Recurring Revenue) 32,4, 41% 15,3, 20% We celebrated 11 Go-lives in WIP Progress Projects New Projects New ARR Existing ARR Q3 2023, including Sensa AI/ML, Cloud, Fintech and Moments
Slide 8: Tecnotree Delivering Impactful Customer Benefits
Tecnotree Delivering Impactful Customer Benefits Business Benefits Technical Benefits Operational Benefits 90% 100% No/Minimal Optimized Product Offerings Open source Technologies down time, across digital stack 5 Mins (Avg.) 59 Tm-forum certified Open APIs & e-TOM Centralized logging Product pricin
Slide 9: Diversified revenue mix with stable growth and increasing ARR
Diversified revenue mix with stable growth and increasing ARR +7 +4 +3 +4 +1 +8 +4 2018 2019 2020 2021 2022 Q1-Q3 2023 2018 2019 2020 2021 2022 Q1-Q3 2023 e 2023 Legacy customers New customers Licence Third party hardware &software Delivery ARR Customer profile Business view ❑ New logos bringing in a
Slide 10: Business Model Transformation – Moving to MRR and secured cashflow
Business Model Transformation – Moving to MRR* and secured cashflow Current Business Model – Transformed Business Model – Delivery Milestones for 1 Project Delivery Milestones – Enable parallel deliveries New deals & deliveries New deals & New deals New deals & deliveries Code New deals & & deliveri
Slide 11: January-September 2023 Financials
January-September 2023 Financials October 27, 2023
Slide 12: Q1-Q3 Financial performance highlights
Q1-Q3 Financial performance highlights EUR Q3/2023 Q3/2022 1-9/23 1-9/22 1-9/21 1-9/20 ❑ Consistent growth in million revenue Net sales 21.4 19.9 56.2 51.5 46.1 38.6 Change YoY% 7% 9% 9% 12 % 20 % 17 % ❑ Improved EBIT on account EBIT 6.2 5.0 16.0 12.2 17.7 14.3 of higher revenue Change YoY% 23% -30%
Slide 13: Revenues driven by market demand; collections impacted by global economic conditions
Revenues driven by market demand; collections impacted by global economic conditions Revenue at 56.2 M in Q1-Q3 2023 Collections at 43.4 M in Q1-Q3 2023 9% y-o-y growth -9% y-o-y Strong revenue growth driven by new logos and increased demand for Collections in Q3 impacted by overall global economic
Slide 14: Focus on operational cost optimization along with planned mitigation for FX impact
Focus on operational cost optimization along with planned mitigation for FX impact to secure net income Operating Result (EBIT) at 16.0 M in Q1-Q3 2023 Euro mn Net income at 8.8M in Q1-Q3 2023 Euro mn 31% y-o-y growth +5% y-o-y 27% 46% 39% 33% 28% 25% 30% 23% 32% 29% 22% 16% 15% 15% 21% 32% 30% 29%
Slide 15: Stable current asset ratio driven by strong current assets
Stable current asset ratio driven by strong current assets Current ratio Account receivables ageing 7,4 Total AR 35.9 MEUR (out of which 2.6 MEUR is provided for) 6,3 5,6 5,5 5,3 5,2 4,2 4,5 4,1 3,9 3,7 6.2, 17% 9.3, 26% 9.2 MEUR Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 202
Slide 16: Tecnotree Balance Sheet
Tecnotree Balance Sheet Consolidated balance sheet, MEUR 9/2023 9/2022 DIFFERENCE Non-current assets Intangible assets 31.4 14.4 118% • Substantial R&D for product Tangible assets 0.4 0.4 0% and portfolio enhancement Deferred tax assets 0.9 0.7 29% Other non-current trade and other receivables 2.0 1
Slide 17: CCD Update
CCD Update 14.1 Me has been collected to date as per the agreed terms 431 Notes of amounting to A consortium of shareholders 100,000 Euros each was have agreed to invest 200 subscribed Notes The scheme was The remaining 90 notes is expected launched in 22nd to be received as per agreement, June, 202
Slide 18: Prospects and risks
Prospects and risks October 27, 2023
Slide 19: Prospects 2023 retained and further refined
Prospects 2023 retained and further refined Revenue to Operating profit Cost rationalization Cash recovery be higher by (EBIT) to be higher by Q4 of 2023 to expected to by the tune of grow by 9% - 13% 15% - 20% 5% - 7% 12% - 14% (7%-15%) (10% - 20%) (12% - 18%) Assumptions: Continued growth in market
Slide 20: Key risks
Key risks Cost Pressures Key Investments 1. Geography specific inflation 1. Investment to retire large order book & productization 2. Customer diversification & Geo expansions 2. Investments in AI/ML, Fintech, OTT required for diversification from BSS pure-play Mitigation Mitigation Cost Optimization p
Slide 21: Why Should you Invest in Tecnotree?
Why Should you Invest in Tecnotree ? Key KPIs and Attributes Tecnotree • Size of Market • 60B TAM across OSS/BSS with 14% CAGR Large TAM • Competitive Landscape • Favorable Tailwinds: CSPs to DSPs with flexible • Market Growth cloud based models • New Customer revenue growth exceed legacy • Customer
Slide 22: Q&A
Q&A
Slide 23: Thank you
THANK YOU Investor relation connects: indiresh.vivekananda@tecnotree.com Investor.relations@tecnotree.com