Kerlink

Earnings Release • Jul 21, 2022

H1 2022 revenue: €10m

Up 33% compared to H1 2021 Very strong 2nd quarter (+65%) driven by EMEA and Asia-Pacific

PRESS RELEASE

Thorigné-Fouillard, France – 21 July 2022, 6.00 p.m. CET

Kerlink (AKLK FR0013156007), a French IoT network and solutions provider, published its H1 2022 figures today.

The Group posted a good performance in the 2nd quarter, up 65% compared to the 1st quarter, enabling it to generate a global revenue of €10 million in H1 2022, up 33% on a comparable period.

This achievement is all the more remarkable as it comes in a context of tension on semiconductor supplies, which weighed on the availability of products delivered by the Group, particularly in the 1st quarter.

The Group also recalls that the 2nd quarter of 2021 had already been very dynamic, with strong sales growth (+79% compared to 2nd quarter 2020), resulting in an unfavourable base effect in the 2nd quarter.

Kerlink was able to overcome the difficulties of the environment and posted an excellent performance over the period.

Revenue by type of sale In thousands of euros	H1 2022	Q2 2022	Q1 2022	H1 2021	Q2 2021	Q1 2021
Equipment	7,573	4,820	2,753	6,009	3,084	2,925
Services	2,397	1,414	982	1,569	772	797
Sub-total – IoT Solutions	9,970	6,234	3,736	7,578	3,856	3,722
HNT cryptocurrency revenue	82	20	62
Total	10,052	6,254	3,798	7,578	3,856	3,722

Growth in services and equipment revenue

IFRS – Unaudited figures

Sales of network infrastructure equipment accounted for 76% of sales of IoT solutions in H1 2022. They reached €7.6m, up 26% compared to H1 2021. The Group also noted a slight improvement in the situation on the semiconductor market, reflected in particular by a 75% increase in equipment sales between 1st and 2nd quarter 2022.

Continuing their favourable trend, service sales increased by 53% in H1 2022 on a comparable period. This change is fully aligned with the Group's ambitions to develop these recurring revenues. They represent 24% of IoT revenues for the period.

In the second quarter, Kerlink recorded an increasing number of HNT tokens from the deployment of the IoT network "The People's Network" of US company Helium. However, the decline in the price of cryptocurrencies in recent months limited the contribution of revenues in HNT to the Group's financial statements, which amounted to €82k in the first half of the year.

H1 marked by the significant growth of the Smart Building & Industry business

Sales were up in the three main areas of activity:

IoT Solutions revenue by area of activity In thousands of euros	H1 2022	% of total IoT H1 2022	Q2 2022	Q1 2022	Change Q2 vs. Q1
Private operators	8,119	81%	4,992	3,126	+60%
Smart Cities & Quality of Life	1,787	18%	1,104	683
Smart Building & Industry	5,485	55%	3,237	2,248
Smart Agriculture & Environment	847	8%	651	195
Historic telecoms operators	1,851	19%	1,242	609	x 2
Total IoT Solutions	9,970		6,234	3,736

IFRS – Unaudited figures, excluding HNT cryptocurrency revenue

A significant share of the increase in sales in Q2 concerned the Smart Building and Industry segment, with revenue of €3.2 million over the period. In total, over the first half of the year, this activity generated more than half of the Group's revenue (55%). As a reminder, the Smart Building & Industry segment covers areas of building occupancy supervision, air quality and atmosphere monitoring, asset management and air maintenance and pollution.

On the telecom operators' market, the rebound in activity can in particular be explained by orders for additional fleets and maintenance contracts from legacy customers.

Strong growth in Europe, good momentum in Asia-Pacific, economic slowdown in the Americas

IoT Solutions revenue by region In thousands of euros	H1 2022	H1 2021	Change
NCSA (Americas)	1,043	1,314	-21%
APAC (Asia-Pacific)	1,946	486	+301%
EMEA (Europe, Middle East & Africa)	6,981	5,778	+21%
Total IoT Solutions	9,970	7,578	+31%

IFRS – Unaudited figures, excluding HNT cryptocurrency revenue

The Asia-Pacific region posted strong growth in the 2nd quarter, with over €1.6m in revenue. Business momentum has become favourable again in this region.

The temporary decline in the Americas (NCSA) can be explained by tensions in the supply of electronic components specific to this area.

The Group's offering continued to improve in the EMEA region, with activity remaining buoyant, with halfyear revenue approaching €7m.

Confirmed confidence in 2022

In a macro-economic context that remains uncertain, and a market that was heavily disrupted by electronic components crisis, Kerlink demonstrated its ability to deliver strong growth. The Group relies in particular on strengthened supply chains, a benchmark offering across the entire value chain and strong partnerships with the largest international distributors and verticalized solution providers.

Kerlink continues to foresee a positive outlook thanks to its wide variety of projects and solid order book, for which the trends remain upbeat.

The Group's fundamentals remain solid, enabling it to be confident in the financial year ahead.

In order to shed light on the market's development prospects, the Group will present its 2025 strategic plan for the publication of its revenue for the 3rd quarter of 2022 on 20th October.

About Kerlink

Kerlink Group is one of the world's leading providers of connectivity solutions for the design, rollout and operation of public and private networks dedicated to the Internet of Things (IoT). Its comprehensive portfolio of solutions includes industrial-grade network equipment, best-of-breed network core, network operations and management software, value-added applications and expert professional services, backed by strong R&D capabilities. Kerlink specialises in access to smart and scalable IoT connectivity for three main areas: Smart cities and quality of life – urban operations, energy distribution and metering, retail and public places, infrastructure and trade centres, quality of life and health; Smart Building and Industry – buildings and real estate, industry and manufacturing, asset monitoring and tracking; and Smart Agriculture and Environment – precision agriculture, livestock monitoring and farming, environment and climate, protection of fauna and flora. More than 200,000 Kerlink installations have been deployed at more than 350 customers in 70 countries. Based in France, with subsidiaries in the United States, Singapore, India and Japan, Kerlink is a founding member of the boards of the LoRa® Alliance and the uCIFI™ Alliance. It is listed on Euronext Growth Paris under the symbol ALKLK.

For more information, please visit our website at www.kerlink.com.

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Kerlink financial press contact:

Actifin Isabelle Dray +33 (0) 1 56 88 11 29 idray@actifin.fr

Kerlink investor contact: Actifin Benjamin Lehari +33 (0)1 56 88 11 25 blehari@actifin.fr

Kerlink press contact and market analysts: Mahoney Lyle Sarah-Lyle Dampoux +33 (0) 6 74 93 23 47 sldampoux@mahoneylyle.com

Next publication H1 2022 results 20 September 2022 after market closure www.kerlink.com