Slide 1: Financial Results 2023
Financial Results 2023 Investor presentation January-December 2023 February 22, 2024
Slide 2: Today's presenters
Today’s presenters Padma Ravichander Indiresh Vivekananda CEO CFO
Slide 3: Agenda
Agenda 1 Strategy overview and business highlights 2 Financial review 3 Prospects 2024 4 Q&A
Slide 4: Financial Results 2023
Order Intake Order Backlog 95.4 ME 80.2 ME Financial Results YOY 11% YOY 16% 2023 EBIT Shareholder’s Equity 23.8 ME 86.5 ME YOY 30% YOY 8% Net Sales At constant currency Cash Inflow At constant currency 78.4 ME 107.2 ME 62.3 ME 84.1 ME YOY 9% YOY 47% YOY 6% YOY 40%
Slide 5: Key Highlights
Key Highlights 12 New Logos Top 14 Deliveries MTN- Nigeria – Metamorphose Drop 1 MTN IC - B2B Denmark | Sweden MTN South Sudan, MTN ESwatini, MTN Zambia - B2C stc STCK – B2C Residential, B2C Employee, WBS and Mediation Zain Bahrain – DLPM standalone and DBLD Zain-South Sudan – BSS Switch, Mediation
Slide 6: Tecnotree's Competitive Advantages
Tecnotree’s Competitive Advantages Revenue growing above market trend Euro mn Tecnotree: +13% CAGR BSS* Global market: 2.1% (2022-27) Fastest time to market with the most standardized platform in the world, No. 1 TMF Open API 78,4 71.6 64,2 41,9 47,0 52,8 137 patents on AI, Genai, Trust, Governance,
Slide 7: Tecnotree Recognised as a Challenger with Growing Market Share
Tecnotree Recognised as a Challenger with Growing Market Share • BSS IT Global Market 2023 was $11.2B* Average Contracts Per Supplier Type YoY* • Gartner recognized Tecnotree as challenger with growing 25,00 market share 20,00 • 51% of 2023 revenue contributed by new customers in the last 5 years 15
Slide 8: Tecnotree business model - Diversified offerings & revenue streams
Tecnotree business model - Diversified offerings & revenue streams Competitive productized portfolio driving faster go-lives and outcome-based business transformations Increased recurring revenue business models enabling 20% reduction in Tecnotree’s order to cash cycles in 2023 License and Delivery
Slide 9: Digital leadership with record order book and high profitability
Tecnotree demonstrates digital leadership with record order book and high profitability • Record Order Book driven by large digital transformations, Cloud, AIML, B2B2X Monetization offerings • Healthy ARR order mix led by growing demand for SaaS, subscription based business and transactional revenue
Slide 10: Tecnotree's FY'23 Delivery Footprint
Tecnotree’s FY’23 Delivery Footprint Business view of Revenue ARR share of revenue increased from 35% in FY ‘22 to 48% in FY’23 2018 2019 2020 2021 2022 Q1-Q3 20232023 e More than 70% of Order Backlog – ARR Licence Third party hardware &software Delivery ARR 1,000+ new product features delivered via
Slide 11: BSS Market Evolution 2023-2030
BSS Market Evolution 2023-2030 Adjacent Core BSS market forecasted to have 2.1% annual growth from verticals 2022-2027 (CAGR) – Gartner 2023 targeted by CSPs Growth Barriers Growth Accelerators Business Model Transformation Product Led Transformations Increased demand for cloud-native Shift from IT
Slide 12: Strategic focus areas for driving growth and profitability in 2024
Tecnotree strategic focus areas for driving growth and profitability in 2024 AIML Cloud Digital Business Model Market Expansion Corporate & B2b2x BSS Stack Transformation Financial Focus IoT Ecosystem ❑ Increase in cloud ❑ Accelerated revenue ❑ Fastest time to ❑ Growth in developed ❑ OpEx Control ba
Slide 13: 2023 Financials
2023 Financials February 22, 2024
Slide 14: FY 2023 Financial performance highlights
FY 2023 Financial performance highlights ❑ Consistent growth in revenue EUR million Q4/2023 Q4/2022 01-12/2023 01-12/2022 22.2 ❑ Tecnotree recorded the Net sales 20.1 78.4 71.6 highest revenue in its history Change YoY% 10% 11% 9% 11% by 107.2 Me (72.7 Me) at Constant Currency EBIT 7.9 6.2 23.8 18.3
Slide 15: Revenues driven by market demand and increased focus on collections
Revenues driven by market demand and increased focus on collections backed by efficient delivery capabilities Revenue at 78.4 M in Q1-Q4 2023 Collections at 62.3 M in Q1-Q4 2023 9% y-o-y growth 6% y-o-y The company recorded highest revenue in its history at EUR 107.2 The full year operating cash inf
Slide 16: 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 23.8 M in Q1-Q4 2023 Euro mn Net income at 11.2 in Q1-Q4 2023 Euro mn 30% y-o-y growth -4% y-o-y 27% 46% 39% 33% 28% 25% 30% 23% 32% 29% 36% 21% 32% 29% 22% 17% 16% 19%
Slide 17: Stable current asset ratio driven by strong current assets
Stable current asset ratio driven by strong current assets Account receivables ageing, Euro mn Current ratio 40 13% 25% 7,4 35 20% 30 6,3 5,6 25 5,5 5,3 5,4 15% 5,2 20 4,2 4,5 4,1 3,9 15 10% 10% 3,7 20% 12% 10 11% 10% 5% 5 0 0% not due 0-90 days 90-270 days 270-365 days >1 year Total 9.2 MEUR Q1 202
Slide 18: Tecnotree Balance Sheet
Tecnotree Balance Sheet Consolidated balance sheet, MEUR 2023 2022 DIFFERENCE Non-current assets Intangible assets 33.5 23.6 42% ❑ Substantial R&D for product Tangible assets 0.4 0.4 -13% and portfolio enhancement Deferred tax assets 0.5 0.6 -10% Other non-current trade and other receivables 1.9 1.8
Slide 19: CCD Update
CCD Update 21.1 Me has been collected by Dec 2023 as per the agreed terms 43.1 Me CCDs were 2 Me received in Jan ’24 subscribed The scheme was launched on 22nd A consortium of shareholders June, 2023 have agreed to subscribe to the remaining CCDs ~ 20Me
Slide 20: Prospects and risks
Prospects and risks February 22, 2024
Slide 21: 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 22: Prospects 2024
Prospects 2024 Revenue to Operating profit be higher by (EBIT) to be higher by 2% - 7% 7% - 15% Assumptions: ▪ The company will continue its focus on increasing licence revenue while is moving constantly evolving from Projects delivery Licence and Delivery mode into an Annual Recurring Revenue model.
Slide 23: Investment Highlights
Investment Highlights STRONG FINANCIALS GROWTH PORTFOLIO & OPERATIONS Stable financial position Healthy organic growth Modernized product with high order book portfolio catering for market demand Strong current assets Diversified, high quality Operational turnaround customer base with high EBIT Dive
Slide 24: Q&A
Q&A
Slide 25: Thank you
THANK YOU Investor relation connects: indiresh.vivekananda@tecnotree.com Investor.relations@tecnotree.com
Slide 26: BSS Market Evolution
BSS Market Evolution Growth Barriers Growth Accelerators Business Model Transformation Product Led Transformations Shift from IT transformation to digital Increased demand for cloud-native Core BSS market transformation with measurable business composable architectures, low-code/no-code impact funct
Slide 27: Investment Highlights
Investment Highlights STRONG FINANCIALS GROWTH PORTFOLIO & OPERATIONS Healthy organic growth Stable financial position with all time high order Modernized product book portfolio catering for market demand Expanding high quality Strong current assets customer base (STC, Zain Ooredoo etc) with robust
Slide 28: 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