Slide 1: Financial Results H1 2024
Financial Results H1 2024 Investor presentation January-June 2024 August 9, 2024
Slide 2: Today's Presenters
Today’s Presenters Padma Ravichander CEO Indiresh Vivekananda CFO 1 Business Review 2 Financial review 3 Guidance 2024
Slide 3: Positive free cash flow for the quarter, sustaining steady revenue growth
achieves positive free cash flow for the quarter, sustaining steady revenue growth Net Sales Sales Cash Inflow H1: EUR 34.9 million (34.8) H1: EUR 26.1 million (31.5) Q2: EUR 18.7 million (16.3) Q2: EUR 16.6 million (9.5) 15% QoQ 75% QoQ Order Backlog Free Cash Flow H1: EUR 72.6 million (68.4) Posit
Slide 4: Positive FCF in Q2 driven by collections, cost optimization & FX risk mitigation
Positive FCF in Q2 driven by focus on collections, cost optimization & FX risk mitigation ▪ Adjusted EBIT: 10.7% YoY growth 10.9 million (9.8), ▪ Stable revenue and strong focus on OpEx and cost reduction 3.8% QoQ growth EUR 6.4 million (6.2) ▪ Focus on expanding to North America and European market
Slide 5: H1 Key Highlights
H1 Key Highlights Key Customers contributing to ARR 10 key go-lives in H1 2024 stc group Tunisia ~600 new product features delivered via Digital Stack in H1’24 Key areas: New Partnerships Multitenancy | AIML | Cloud Nativity | Campaign as a Service | Marketplace for API and IOT Monetization
Slide 6: Recognitions
Recognitions 137+ AI patents Magic Quadrant for AI in CSP 3 Hype Cycles : Partner Ecosystem Management Platforms for CSPs CSP Digital Marketplaces Private Mobile Enterprise Communication Network Services Largest manufacturers of Services Tecnotree Moments Telecom Billing and Operations and identifie
Slide 7: Robust financials – leading the market in growth and profitability
Robust financials – leading the market in growth and profitability Revenue: growth till 2023 has been among the best in market 5-year average revenue growth 5-year average gross margins 8,7% 70,8% 7,4% 60,6% Average Gross Margins: high compared 5,4% to peers at ~60% 35,9% EBITDA margins: have been h
Slide 8: Tecnotree well positioned to expand market share
Tecnotree well positioned to expand market share Changing market dynamics Strategic Partnerships • Core BSS market forecasted to have • Partnership for marketplace led API only 2.1% annual growth from 2022- monetization (Enterprise 2027 (CAGR) – Gartner 2023 group for. ) • CSPs are looking at adjace
Slide 9: Tecnotree Sensa Certifai – unique product offering tailored to EU markets
Tecnotree Sensa Certifai – unique product offering tailored to EU markets 137+ PATENTS The Regulation The Opportunity Annex III of the EU AI Act The Advantage enumerates various AI applications deemed high-risk due to their potential impact on public safety Sensa Certifai helps CSPs gear up • 50% of
Slide 10: Strategic focus areas for driving growth and profitability in 2024
Tecnotree strategic focus areas for driving growth and profitability in 2024 Competitive product Growth portfolio Profitability • Investment in growth areas • Expansion in North (AIML – including AI Trust & America and Europe Governance, Cloud, • OpEx Control– on track • Competitive displacement Mar
Slide 11: January-June (H1) 2024 Financials
January-June (H1) 2024 Financials August 9, 2024
Slide 12: H1 2024 Financial performance highlights
H1 2024 Financial performance highlights EUR million H1/2024 H1/2023 H1/2022 Net sales 34.9 34.8 31.6 ❑ Increase in revenue. 5.1 % Change YoY% 0% 10% 13% increase at constant currency – Adjusted EBIT 10.9 9.8 7.1 EUR 40.8 (38.8) million Change YoY% 11% 38% -33% ❑ 6% increase in OBL – EUR 72.6 (68.4)
Slide 13: H1 2024 Balance Sheet
H1 2024 Balance Sheet Consolidated balance sheet, MEUR 30.6.2024 30.6.2023 Change Non-current assets Intangible assets - own development 30.5 23.2 31% ❑ Balance Sheet is strengthened by Intangible assets - external 9.6 5.7 68% 57% increase in cash. Tangible assets 0.3 0.2 50% Deferred tax assets 0.4
Slide 14: 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 H1 2024 was 66% compared to 70% in 2023 H2 Cost Optimization Plans 5-7% of global OpEx reduction expected by 2025 through cost efficiency actions (EUR 4.5 million in 2024 and EUR 7 million in 2025) • Reduction in Capex/S
Slide 15: Healthy Financial Ratios
Healthy Financial Ratios DSO Days Trend Account receivables H1 EUR 35.4 million (out of which EUR 2.8 million is provided for) Majority of the AR is not due 9% 250 225 216 200 170 152 151 144 150 -13% 172% 86% 32,535,4 -11% 100 -29% 12,1 13,9 2,6 3,5 50 2,7 7,4 8,4 7,4 4,9 4,9 - Not Due 0-90 days 90
Slide 16: Guidance 2024
Guidance 2024 Maintaining original guidance on Revenue and EBIT at this point in time Additional guidance on Free Cash Flow Revenue to be Free Cash Flow Operating profit higher by H2 2024 (EBIT) to be higher by 2% - 7% EUR 2 million – EUR 5 7% - 15% million Rationale Revenue Expectations ▪ Growth abo
Slide 17: Q&A
Q&A
Slide 18: Thank You
THANK YOU Investor relation connects: indiresh.vivekananda@tecnotree.com Investor.relations@tecnotree.com