Novabase SGPS

Interim / Quarterly Report • Jul 31, 2024

Relevant information

Lisbon, 31 July 2024

Novabase – Sociedade Gestora de Participações Sociais, S.A., under the terms and for the purposes of article 17 of Regulation (EU) no. 596/2014 of the European Parliament and of the Council and article 29.º- Q of the Portuguese Securities Code, discloses today to the market the results regarding the 1st half of 2024, whose essential features are included in the presentation attached.

Any questions about the information disclosed herein can be sent to investor.relations@novabase.com.

Privileged Information

Novabase © 2024 | All Rights Reserved

NEXT-GEN

IT SERVICES COMPANY

1H24 CONSOLIDATED RESULTS 31 July 2024

Disclaimer

• This presentation contains sector and forward-looking statements concerning the development of Novabase's business. While these statements are based on Novabase's current projections, judgments and future expectations, a number of risks and uncertainties could cause actual data to differ materially from those expressed or implied by such statements. Such risks and uncertainties relate to factors that are beyond Novabase' ability to control or estimate precisely, and include but are not limited to, general economic conditions, macroeconomic factors, regulatory, political or government guidelines and trends, credit markets, among others.
• Statements in this release relate only to this presentation date. Except when required by law or specific regulation, Novabase assumes no obligation to update the information or to notify in the event that any matter stated herein changes or becomes inaccurate. Thus, neither Novabase, nor any of its subsidiaries, its administrators, members of the other corporate bodies or employees, make any declaration or commitment on the accuracy or completeness of the information and do not assume, therefore, any type of obligation or responsibility.
• Financial reporting terms used in this Report are mostly in accordance with International Financial Reporting Standards (IFRS) but will include certain non-IFRS financial measures of our performance (APMs). APMs used by Novabase are intended to provide additional information, more comprehensive and relevant to users, and are applied consistently in all periods reflected in this release. Reconciliation of each of these APMs to its most directly comparable IFRS financial measure can be found in the end of this Report. All amounts in this presentation are expressed in million Euros, except otherwise stated. The financial information here reported is unaudited.
• This presentation is provided for informational purposes only and does not constitute a document for the offer of securities, and its distribution or use by any person or entity is forbidden without prior authorization from Novabase.

1H24 Outlook

Message from Luís Paulo Salvado

"Novabase's results for the first half of 2024 reveal the continued execution of our strategy under current market conditions: Revenue grew by 1%, EBITDA by 5%, and Net Income from continuing operations by 16%.

In the Next-Gen segment, where international activity accounts for more than 70% of the business, EBITDA increased by 8%, reaching double-digit profitability. The number of employees grew by 1%, in line with revenue, and the attrition rate decreased to below 11%, an improvement compared to previous periods. This resulted from a more competitive value proposition for talent and a macroeconomic context more favourable for retention.

The first half was also marked by the dividend payment of €1.79 per share, with 80% of shareholders opting to receive shares of the company. Consequently, of the €46m distributed, €38m was reinvested in the capital increase, bringing the Net Cash position to €59m. Notably, the total shareholder return during this period was 35%, compared to -6% for the PSI All-Share index and 20% for the EuroStoxx Technology index.

Despite the uncertainty that persists for the rest of the year, we will maintain our strategic course. We thank our teams for their work, trusting in their ability to overcome future challenges."

5

Novabase in the News1

• Most Valuable Brand in the Technology & Software sector | Novabase was considered the most valuable portuguese brand in the Technology & Software sector and one of the Top100, according to Brand Value study conducted by the consultancy OnStrategy.
• Award at FutureNet World 2024 | Celfocus won the Operator Award at FutureNet World for its Cognitive Intelligence & Automation Solution (CIAS) for Global NOC in collaboration with Vodafone.
• Merit Awards for Telecom | Celfocus has secured the Gold medal in three prestigious categories at the Merit Awards for Telecom. The Awards recognises Celfocus' outstanding contributions to the telecom industry alongside its clients, Vodafone and Eutelsat OneWeb.
• Catalyst Awards at the DTW24 | Celfocus won four prestigious Catalyst Awards at the DTW24 Ignite event, held in Copenhagen. Recognised for their innovation and collaboration, Celfocus' projects tackled critical industry challenges, showcasing cutting-edge solutions.
• Talent Acquisition initiatives | Celfocus hosted another edition of "Celfocus Insider", an open day initiative specially designed for university students, in collaboration with IST2, offering them an immersive experience within our offices and team.
• Partnership with Technovation Girls Portugal | Celfocus sponsored, mentored and trained 9 teams of girls, aged 8 to 18. This program aims to inspire and empower young girls in STEM3 fields, contributing to create a responsible, inclusive, and diverse community.
• New Corporate Bodies | Novabase's corporate bodies were elected for the 2024-2026 term, with a Board of Directors led by Luís Salvado.
• Novabase paid €1.79 per share | Distribution of profits and free reserves in cash, included the option, on the part of shareholders, to alternatively allocate shares of the same category to be issued by Novabase for this purpose.
• Novabase increased its capital by €38.0m | Novabase concluded its share capital increase by issuing 9,234,565 new shares to be allocated to shareholders who opted to receive the dividend in kind. New shares entered the stock exchange on 28 June.

¹ Until this presentation date.

Press Zone

² University of Lisbon's Instituto Superior Técnico.

³ Science, Technology, Engineering, and Mathematics.

Financial Highlights

1H24 Performance

Stable 1H with improved profitability

Turnover and EBITDA do not include the IT Staffing Business (Value Portfolio), discontinued in 4Q23, for all periods in this presentation.

• Turnover grew 1% YoY
• 70% of Next-Gen's Turnover is generated outside Portugal
• Europe & Middle East target markets account for 96% of NG's International Ops.
• Top Tier clients Revenues grew 2% YoY
• EBITDA increased 5% YoY, with Next-Gen showing a two-digit profitability
• Net Profit from continuing operations of €2.5m, +16% YoY
• Solid Net Cash position of €59.3m, after €1.79/share payment
• Talent Pool of 1333 employees
• Total Shareholder Return of 35%

Turnover & EBITDA

Turnover grew 1% YoY and EBITDA increased 5% YoY

(1) 100% of Turnover refers to Next-Gen in both periods.

(2) Turnover by Geography is computed based on the location of the client's decision centre.

(3) Includes Value Portfolio EBITDA of -€1.5m in 1H24 (-€1.3m in 1H23), almost entirely related to central structure costs.

Next-Gen Segment

Next-Gen Turnover grew organically 1% YoY with EBITDA reaching double-digit profitability

Next-Gen Segment

International Ops. represent 70% of Next-Gen's Turnover

Multi-industry approach results emerging, but still Telco dominance.

Europe & Middle East totalled 96% of Next-Gen's international Revenues, in line with the strategic focus.

Next-Gen Segment

Top Tier clients Revenues grew 2% YoY

The client base (1) expanded by 6% YoY.

% of Revenues from Top Tier clients (2)

Total number of clients in 1H24 increased to 111 (105 in 1H23).

(1) Client is defined as the decision-making client.

(2) Top Tier clients (>1 M€) considers the Trailing 12 Months.

EBITDA to Net Profit

Net Profit from continuing operations of €2.5m, +16% YoY…

… as a result of higher EBITDA, partially offset by higher D&A and Income tax, and improved Financial Results.

Net Profit stood at €2.8m, -32% YoY, due to the divestiture in 2023 of the Neotalent business, the results of which are presented in Discontinued Operations. A capital gain adjustment of €0.4m was recorded in 1H24, following the final determination of price clauses provided for in the Agreement.

Total EPS was €0.10 (€0.15 in 1H23).

EBITDA to Net Profit

Net Cash

Solid Net Cash position of €59.3m…

… after €1.79/share payment, where the distribution in kind, at the option of the shareholders, allowed for a reinforcement of capitalization.

Cash use of €0.2m in 1H24, excluding the €46.3m cash outflow from shareholder remuneration and the €38.0m cash inflow from share capital increase.

Considering the last 12 months, noteworthy is the €51.1m cash inflow from IT Staffing Business disposal in 2H23.

€2.5m of Net Cash refers to Non-Controlling Interests (Vs. €3.3m in FY23).

Talent

Talent Pool of 1333 employees

Average number of Employees

Talent pool increased 1% YoY (1317 in 1H23).

TTM attrition rate (2) of Next-Gen dropped to 10.7% (14.4% in 1H23 and 11.2% in FY23), in a downward trend since 2H22, as a result of proactive management of our pool and evolving market context.

(1) Excludes IT Staffing representing 843 employees in 1H23.

(2) Determined by the formula: number of leaves at the employee's initiative ÷ average number of employees, for the Trailing 12 Months.

Stock Market

TSR of 35%

NBA total shareholder remuneration increased 35% in 1H24, whilst the EuroStoxx Technology Index gross return increased 20% and the PSI All-Share Index gross return decreased 6% (in price returns, +3%, +17%, and -9%, respectively).

The sale of IT Staffing Business in late 2023 enabled additional shareholders' remuneration, and in 1H24 Novabase paid €1.79/share, where shareholders were given the possibility to alternatively opt for the allotment of shares of the same class to be issued for this purpose.

Novabase and the Market

(1) The capital increase was subscribed by shareholders holding shares representing around 80% of the share capital entitled to the dividend.

As a result of the cash contributions made by Novabase's shareholders who opted to receive the dividend in kind, the amount of the share capital increase was €38.0m, corresponding to the issue of 9,234,565 new shares (1).

New shares were admitted to trading on the Euronext Lisbon regulated market from 28 June (inclusive).

No transactions of own shares took place during 1H24. At 30 June 2024, Novabase holds 658,461 own shares (1.84% of its share capital).

Market Cap at the end of 1H24 is €196.7m, with a ttm Price to Sales of 1.47x.

APMs

In compliance with ESMA guidelines

Alternative Performance Measures

APMs used by Novabase in this presentation are: EBITDA and Net Cash.

EBITDA allows to evaluate the profitability of the business and the company's capacity to generate resources through its operating activities. EBITDA is defined as operating profit excluding depreciation and amortisation and (if any) non-operating costs (e.g. restructuring costs). "Operating Profit" is simultaneously the item of the consolidated income statement, which is an integral part of this Report, more directly reconcilable and more relevant to this APM.

Net Cash provides information on the level of cash and other bank deposits and marketable securities, after discounting the debts to financial institutions, assisting in the analysis of the company's liquidity and its ability to meet non-bank commitments. "Cash and cash equivalents" is simultaneously the item of the consolidated statement of financial position more directly reconcilable and more relevant to this APM.

The detail and breakdown of Net Cash, as well as the reconciliation in 1H24 and prior period, is analysed in the table below.

1H24
68 487 ,
3 622 ,
449) (7 ,
(5 376) ,
59 284 ,

	FY23	1H24
shares held by the Treasury Company	658 461 ,	658 461 ,
Closing last tradable day price (€) @	5 360	5 500
shares held by the Treasury Company thousands) (Euro	3 529 ,	3 622 ,

(1) Determined by multiplying the number of treasury shares held by the Company at the end of the period by the share price on the last tradable day.

NEXT-GEN IT SERVICES COMPANY

Novabase SGPS, S.A. Euronext code: PTNBA0AM0006 Registered in TRO of Lisbon and Corporate Tax Payer no. 502.280.182 Share Capital: 1,072,866.06 € Head Office: Av. D. João II, 34, 1998-031 Lisbon - PORTUGAL

María Gil Marín Chief Investors Officer Tel. +351 213 836 300 Fax: +351 213 836 301 investor.relations@novabase.com

Report available on website: www.novabase.com

Next Events

2024 Full Year Results (tbd)

Consolidated Statement of Financial Position Consolidated Income Statement as at 30 June 2024 for the period of 6 months ended 30 June 2024

	30.06.24 (Thousands of Euros)	31.12.23		30.06.24	30.06.23 (*) (Thousands of Euros)	Var. %
ASSETS			CONTINUING OPERATIONS
Tangible assets	1,220	1,391	Operating income
Intangible assets	10,177	9,264	Services rendered	65,896	65,135
Right-of-use assets	10,263	11,390	Supplementary income and subsidies	848	51
Financial investments	13,855	13,879	Other operating income	12	6
Deferred income tax assets	6,882	6,945
Other non-current assets	1,466	1,466		66,756	65,192
Total Non-Current Assets	43,863	44,335	Operating expenses
			External supplies and services	(24,517)	(23,861)
Trade debtors and accrued income	42,440	40,073	Employee benefit expense	(37,291)	(36,435)
Other debtors and prepaid expenses	12,875	10,326	(Provisions) / Provisions reversal	52	(14)
Derivative financial instruments	113	246	Net impairm. losses on financ. assets	370	267
Cash and cash equivalents	68,487	80,314	Other operating expenses	(120)	(149)
Total Current Assets	123,915	130,959
				(61,506)	(60,192)
Assets for continuing operations	167,778	175,294
			Gross Net Profit (EBITDA)	5,250	5,000	5.0 %
Assets for discontinued operations	1,499	1,373	Depreciation and amortisation	(1,936)	(1,594)
Total Assets	169,277	176,667	Operating Profit (EBIT)	3,314	3,406	-2.7 %
			Financial results	143	(559)
EQUITY			Net Profit before taxes (EBT)	3,457	2,847	21.4 %
Share capital	1,073	796	Income tax expense	(908)	(648)
Treasury shares	(20)	(20)
Share premium	37,930	226	Net Profit from continuing operations	2,549	2,199	15.9 %
Reserves and retained earnings	28,892	27,449
Net profit	2,824	47,058	DISCONTINUED OPERATIONS
Total Shareholders' Equity	70,699	75,509	Net Profit from discont. operations	528	2,187	-75.9 %
Non-controlling interests	11,838	11,587
Total Equity	82,537	87,096	Non-controlling interests	(253)	(261)
LIABILITIES			Attributable Net Profit	2,824	4,125	-31.5 %
Bank borrowings	7,449	8,587
Lease liabilities	8,805	9,796
Provisions	3,952	3,269
Other non-current liabilities	2,749	2,749
Total Non-Current Liabilities	22,955	24,401
Bank borrowings	5,376	7,475
Lease liabilities	2,516	1,961
Trade payables	4,262	4,628
Other creditors and accruals	26,724	28,240
Derivative financial instruments	254	112
Deferred income	22,893	20,972
Total Current Liabilities	62,025	63,388
Total Liabilities for cont. operations	84,980	87,789
Total Liabilities for discont. operations	1,760	1,782
Total Liabilities	86,740	89,571	Other information :
Total Equity and Liabilities	169,277	176,667	Turnover EBITDA margin	65,896 8.0 %	65,135 7.7 %	1.2 %
			EBT % on Turnover	5.2 %	4.4 %
Net Cash	59,284	67,781	Net profit % on Turnover	4.3 %	6.3 %

* Restated - The IT Staffing business was considered in discontinued operations.

Novabase S.G.P.S., S.A. Euronext code: PTNBA0AM0006	Share Capital 1,072,866.06 Euros - Corporate Registration CRCL N.º 1495
Head-office: Av. D. João II, 34, Parque das Nações, 1998-031 Lisbon, Portugal	Corporate Tax Payer N.º 502 280 182

Results Information by SEGMENTS for the period of 6 months ended 30 June 2024

(Thousands of Euros)

	Value Portfolio	Next-Gen	NOVABASE
CONTINUING OPERATIONS
Turnover	-	65,896	65,896
Gross Net Profit (EBITDA)	- (1,528)	- 6,778	- 5,250
Depreciation and amortisation	- (5)	- (1,931)	- (1,936)
Operating Profit (EBIT)	(1,533)	4,847	3,314
Financial results	- 702	- (559)	- 143
Net Profit / (Loss) before Taxes (EBT)	(831)	4,288	3,457
Income tax expense	- (323)	- (585)	- (908)
Net Profit / (Loss) from cont. operations	(1,154) -	3,703	2,549
DISCONTINUED OPERATIONS
Net Profit from discontinued operations	528	-	528
Non-controlling interests	(55)	(198)	(253)
Attributable Net Profit / (Loss)	(681)	3,505	2,824
	-	-	-
Other information :
EBITDA % on Turnover EBT % on Turnover	n/a n/a	10.3% 6.5%	8.0% 5.2%
Net profit % on Turnover	n/a	5.3%	4.3%