Tecnotree Oyj · OMXHEX:TEM1V
Tecnotree Oyj — Investor Presentation (September 2024)
15 slides from Tecnotree Oyj's investor presentation, Sep 6, 2024
Slide 1: Investor Connect
Investor Connect 6th September 2024
Slide 2: IR Connect Agenda
1 Path to Recovery 2018-2022 IR Connect 2 2023 FX Tsunami Agenda 3 2024 Actions Taken 4 New Financial Guidance 5 Q&A Tecnotree Investor Presentation Q2 2024 P.2
Slide 3: Panel
Panel Neil Macleod Padma Ravichander Indiresh Vivekananda Harri Koponen Chairman of the Board CEO CFO Moderator (Minority Shareholder) Tecnotree Investor Presentation Q2 2024 P.3
Slide 4: 2018-2022 Road to Recovery, Before 2023 FX Tsunami Hit
2018-2022 Road to Recovery, Before 2023 FX Tsunami Hit Earnings Per Share A 2008 Acquisition of Lifetree 0.10 G H 0.05 B F J - I B 2015 Financial Restructuring 2009 2011 2013 2015 2017 2019 2021 2023 2025 (0.05) E C D (0.10) A C 2016 Padma Ravichander becomes CEO (0.15) (0.20) (0.25) D 2017-18 Pu
Slide 5: Tsunami in 2023 – Currency Exchange Losses, Hyperinflation and Delayed Payments
Tsunami in 2023 – Currency Exchange Losses, Hyperinflation and Delayed Payments Compared to 2022 Headwinds of 2023 • Devaluation of the Naira by 123% resulting in a loss of EUR 6.6 ME Revenue Revenue at Constant in 2023 Currency • Hyper-inflationary pressures in the Argentinian market by 200%+ impa
Slide 6: Q2 2024 in Focus
Q2 2024 in Focus • 0.8 ME positive Free Cash Flow generated in Q2 (-4.7 ME in Q1) due to aggressive cash collection ME Q2/24 Q1/24 • 15% Growth Q-on-Q in revenue • Increase in cash collected by 7.1 ME Net Sales 18.7 16.3 • Adjusted EBIT increase of 2 ME result of strict Opex control Net Sales at
Slide 7: Financial Guidance
Financial Guidance Current Financial Guidance Revenues EBIT Free Cashflow / H2 2024 Constant Currency 2024e Constant Currency 2024e +2-7% +7-15% 2-5 ME New Financial Guidance Capex: Sales % Receivables Days Free Cashflow 2025 Dividend Payout Policy FX Target 2025+ Target 2025+ Annual FCF 2025e of FC
Slide 8: Rationale for Guidance: Revenue and EBIT
Rationale for Guidance: Revenue and EBIT 2-7% revenue growth and 7-15% EBIT growth in constant constant currency in 2024 High Order Backlog (72.6 ME) Management Actions • Mature stack: 3,000 TMForum-compliant features, 52 standard APIs • Faster deployment: 12-15 months (large companies) and 6-12 mo
Slide 9: Rationale for Guidance: CapEx to Sales
Rationale for Guidance: CapEx to Sales Capital Expenditure to Revenue trending at 15-18%. Aim Aim to bring ratio to 10-12% in 2025 Capex to Revenue Management Actions • Opex cuts of 4.5ME in 2024 and 7ME in 2025 - headcount reductions, hiring freezes • Product rationalization: team size reduction,
Slide 10: Rationale for Guidance: Receivable Days
Rationale for Guidance: Receivable Days Target to bring receivable days to 100-140 in 2025 DSO Days Actions • Daily invoicing and collections tracking with "Think Cash, Do Cash” initiative • "No Payments, No Service" policy for customers with tendencies to delay payments • Shifting to mature mar
Slide 11: Rationale for Guidance: Currency Risk
Rationale for Guidance: Currency Risk Reduce exposure to frontier country FX risk to 10-15% in in 3 years 4-year history of revenue share from frontier markets % Revenue Share from Frontier Markets 2024 Revenue Share by Region EU - 3% APAC - 6% NA - 4% 75% Africa - 35% 69% 65% 66% 61% 59% 59% MEA
Slide 12: Rationale for Guidance: Free Cash Flow
Rationale for Guidance: Free Cash Flow Target of 2-5 ME in H2 2024 and >3 ME in 2025 FCF Trend Actions for H2 2024 and Beyond • Opex cuts: 4.5ME in 2024, 7ME in 2025 through headcount reductions and hiring freeze • Capex normalizes on product investments >3 ME • Strategic small investments on acq
Slide 13: Summary
Summary Actions Outcome Focus on improving free cash flow Maintain a stable dividend policy for shareholders Reduce capex-to-sales ratio Enable profitable growth and expansion Lower DSO (Days Sales Outstanding) Decrease exposure to frontier markets Maximize shareholder value Leverage a strong and co
Slide 14: Q&A Session
Q&A Session Tecnotree Investor Presentation Q2 2024 P.14
Slide 15: Thank You
Thank You Empowering Digitally Connected Communities