Novabase SGPS — Earnings Release 2024

Feb 20, 2025

Relevant information

FY2024 Results

Lisbon, 20 February 2025

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 year 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 © 2025 | All Rights Reserved

NEXT-GEN

IT SERVICES COMPANY

FY24 CONSOLIDATED RESULTS 20 February 2025

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.

FY24 Outlook

Chairman and CEO

Message from Luís Paulo Salvado

"The 2024 results reflect the success of our strategy, as evidenced by the improved profitability and growing operational efficiency.

Total EBITDA increased by 20%, and Net Profit from continuing operations nearly doubled, despite marginal business growth.

Next-Gen EBITDA grew by nearly 30% to 12.2%, surpassing the double-digit profitability target set in the Strategy 2019+. Over the past couple of years, we have reduced talent turnover from 18% to 10%, driven by our commitment to professional development and competitive compensation, as well as labour market trends.

Net Cash decreased by approximately €11m, reflecting shareholder remuneration and investment in working capital, which is expected to normalize in the coming months.

Total shareholder return reached 43%, clearly outperforming the reference indexes EuroStoxx Technology (12%) and PSI All-Share (-12%).

In 2024, we celebrated 35 years of innovation and impact, taking pride in the value we have generated for all stakeholders. Today, millions of people across the world use our solutions daily, improving their lives. According to OnStrategy, we are the most valuable Portuguese brand in the Technology & Software sector and one of the Top 100, acknowledging the talent and dedication of the thousands of professionals who have contributed to our journey – to all of them, our deepest gratitude!

Given our solid Net Cash position of €57m, the Board of Directors intends to propose at the next GMS a dividend of €1.35 per share, including the option for shareholders to receive this remuneration in kind.

5 Despite the uncertain macroeconomic environment, we enter 2025 confident in the success of our strategy, supported by the restructuring implemented at the end of 2024, which cement our client-centric focus and continuous operational efficiency."

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.
• Awards for CIAS2 | Celfocus' solution for Global NOC in collaboration with Vodafone won the Operator Award at FutureNet World 2024 and the Communication and IT Award at IET3 Excellence and Innovation Awards.
• 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 premier 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.
• AI & Intelligent Automation Project of the Year | Celfocus won the award with Vodafone for TOBi: Vodafone Ireland's virtual assistant.
• Acting with a Purpose | Celfocus joined volunteering initiatives, e.g. "Just a Change", helping to renovate a space in Lisbon for disabled individuals.
• Talent Acquisition initiatives | Celfocus hosted another open day with IST4, providing students an immersive experience within our team.
• Technovation Girls | Celfocus sponsored, mentored and trained 9 teams of young girls as part of this renowned international program, aiming to inspire and empower them in STEM5 fields, and is now launching the 3rd edition to continue fostering a responsible, inclusive, and diverse community.
• New Corporate Bodies | 2024-2026 term corporate bodies were elected at the 22 May 2024 GMS, with Luís Salvado leading the Board of Directors.
• Payout to Shareholders of €1.79 per share | The 2024 distribution of dividends and reserves included the option for shareholders to alternatively receive the dividend in kind, in shares of the same category to be issued for this purpose.
• Share Capital increase of €38.0m | Novabase issued 9,234,565 new shares, allocated to shareholders who opted to receive the dividend in kind.

¹ Until this presentation date.

Press Zone

² Cognitive Intelligence & Automation Solution.

³ Institution of Engineering and Technology.

⁴ University of Lisbon's Instituto Superior Técnico.

⁵ Science, Technology, Engineering, and Mathematics.

Financial Highlights

FY24 Performance

Strong profitability growth

• Turnover grew 1% YoY
• 69% 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 3% YoY
• EBITDA increased 20% YoY, with Next-Gen showing a double-digit profitability
• Net Profit from continuing operations nearly doubled to €6.6m
• Solid Net Cash position of €57.0m, after €1.79/share payment
• Talent Pool of 1325 employees
• Total Shareholder Return of 43%

Turnover & EBITDA

Turnover grew 1% YoY and EBITDA increased 20% 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 -€3.2m in FY24 (-€1.7m in FY23).

Next-Gen Segment

Next-Gen showing a double-digit profitability, climbing 270 bps YoY

Next-Gen Turnover grew organically 1% YoY.

Next-Gen Segment

International Ops. represent 69% of Next-Gen's Turnover

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

Europe & Middle East account for 96% of Next-Gen's international revenues, consistent with the strategic focus.

Next-Gen Segment

Top Tier clients Revenues grew 3% YoY

The client base (1) expanded by 8% YoY.

% of Revenues from Top Tier clients (2)

Total number of clients increased to 112 (104 in FY23).

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

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

EBITDA to Net Profit

Net Profit from continuing operations nearly doubled to €6.6m...

… due to higher EBITDA and improved Financial Results, primarily driven by interest income and the VC portfolio gains, despite the restructuring costs of €1.9m.

Net Profit evolution was influenced by the €38.4m gain from the 2023 sale of the Neotalent business, reported under Discontinued Operations. In 2024, a capital gain adjustment was recorded following the final determination of price clauses outlined in the Agreement.

Total EPS was €0.21 (€1.76 in FY23).

EBITDA to Net Profit

Net Cash

Solid Net Cash position of €57.0m…

… after €1.79/share payment, where the distribution in kind, at the shareholders' discretion, enabled a reinforcement of capitalisation.

Cash use of €2.5m in 2024, excluding the €46.3m outflow for shareholder remuneration and the €38.0m inflow from share capital increase, indicates a significant investment in working capital.

€2.3m of Net Cash refers to Non-Controlling Interests (Vs. €3.3m in FY23).

Given the strong balance sheet, the Board of Directors intends to propose to the next GMS a remuneration of 1.35 €/share.

Talent

Talent Pool of 1325 employees

Average number of Employees

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

Talent pool increased 1% YoY (1317 in FY23).

TTM attrition rate (1) of Next-Gen dropped to 10.1% (11.2% in FY23), in a downward trend since 2H22, thanks to our proactive management and changing market conditions.

At the end of 2024, Novabase undertook a restructuring process aiming to streamline operations. Figures presented in this slide do not yet reflect this effect.

Stock Market

Total Shareholder Return of 43%

Novabase TSR increased 43% in 2024, whilst the EuroStoxx Technology Index gross return increased 12% and the PSI All-Share Index gross return decreased 12% (in price returns, +10%, +7%, and -16%, respectively).

In 2024, Novabase paid €1.79 per share, offering shareholders the option to alternatively receive an allotment of shares of the same class to be issued for this purpose.

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

Novabase PSI All-Share Eurostoxx Technology

Cash contributions made by Novabase's shareholders who opted to receive the dividend in kind enabled a share capital increase of €38.0m, corresponding to the issuance of 9,234,565 new shares (1), which were admitted to trading on the Euronext Lisbon as of 28 June.

Novabase acquired on the market 460 shares under the buy-back programme initiated on 20 December. At the end of 2024, Novabase held 658,921 own shares (1.84% of its share capital).

Market Cap on 31 December 2024 was €211.0m, with a ttm Price to Sales of 1.5x.

The Board intends to propose to the GMS to be held on 22 May, a distribution of 1.35 €/share to be paid, in whole or in part, in kind, at the discretion of the beneficiary shareholder.

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 FY24 and prior period, is analysed in the table below.

747
888
311)
276)
048

	FY23	FY24
shares held by the Treasury Company	658 461 ,	658 921 ,
Closing last tradable day price (€) @	5 360	5 900
shares held by the Treasury Company thousands) (Euro	3 529 ,	3 888 ,

(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

General Meeting of Shareholders May 22 (3 pm GMT+1)

Results 1H25 July 31 (after market closure)

Consolidated Statement of Financial Position Consolidated Income Statement as at 31 December 2024 for the year ended 31 December 2024

	31.12.24 (Thousands of Euros)	31.12.23		31.12.24 (Thousands of Euros)	31.12.23	Var. %
ASSETS			CONTINUING OPERATIONS
Tangible assets	1,777	1,391	Operating income
Intangible assets	10,602	9,264	Services rendered	134,188	132,556
Right-of-use assets	9,360	11,390	Supplementary income and subsidies	2,057	144
Financial investments	14,000	13,879	Other operating income	68	321
Deferred income tax assets	6,806	6,945
Other non-current assets	529	1,466		136,313	133,021
Total Non-Current Assets	43,074	44,335	Operating expenses
			External supplies and services	(48,412)	(46,760)
Trade debtors and accrued income	45,841	40,073	Employee benefit expense	(74,102)	(73,945)
Other debtors and prepaid expenses	9,266	10,326	Provisions	(971)	(827)
Derivative financial instruments	75	246	Net impairm. losses on financ. assets	692	(156)
Cash and cash equivalents	62,747	80,314	Other operating expenses	(391)	(404)
Total Current Assets	117,929	130,959
				(123,184)	(122,092)
Assets for continuing operations	161,003	175,294
			Gross Net Profit (EBITDA)	13,129	10,929	20.1 %
Assets for discontinued operations	1,393	1,373	Restructuring costs	(1,854)	-
			Operating Gross Net Profit	11,275	10,929	3.2 %
Total Assets	162,396	176,667	Depreciation and amortisation	(3,845)	(3,468)
EQUITY			Operating Profit (EBIT)	7,430	7,461	-0.4 %
Share capital	1,073	796	Financial results	1,369	(1,215)
Treasury shares	(20)	(20)
Share premium	37,930	226	Net Profit before taxes (EBT)	8,799	6,246	40.9 %
Reserves and retained earnings	28,538	27,449	Income tax expense	(2,192)	(2,822)
Net profit	6,420	47,058
Total Shareholders' Equity	73,941	75,509	Net Profit from continuing operations	6,607	3,424	93.0 %
Non-controlling interests	10,945	11,587
Total Equity	84,886	87,096	DISCONTINUED OPERATIONS
LIABILITIES			Net Profit from discont. operations	1,058	44,031	-97.6 %
Bank borrowings	6,311	8,587	Non-controlling interests	(1,245)	(397)
Lease liabilities	7,913	9,796
Provisions	5,552	3,269	Attributable Net Profit	6,420	47,058	-86.4 %
Other non-current liabilities	3,575	2,749
Total Non-Current Liabilities	23,351	24,401
Bank borrowings	3,276	7,475
Lease liabilities	2,771	1,961
Trade payables	3,274	4,628
Other creditors and accruals	25,445	28,240
Derivative financial instruments	688	112

Deferred income 17,217 20,972 Total Current Liabilities 52,671 63,388

Total Liabilities for cont. operations 76,022	87,789
--------------------------------------------------	--------

Total Liabilities for discont. operations	1,488	1,782
Total Liabilities	77,510	89,571	Other information :
			Turnover	134,188	132,556	1.2 %
Total Equity and Liabilities	162,396	176,667	EBITDA margin	9.8 %	8.2 %
			EBT % on Turnover	6.6 %	4.7 %
Net Cash	57,048	67,781	Net profit % on Turnover	4.8 %	35.5 %

* 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 year ended 31 December 2024

(Thousands of Euros)
	Value Portfolio	Next-Gen	NOVABASE
CONTINUING OPERATIONS
Turnover	11	134,177	134,188
Gross Net Profit (EBITDA)	- (3,198)	- 16,327	- 13,129
Restructuring costs	- -	- (1,854)	- (1,854)
Depreciation and amortisation	- (12)	- (3,833)	- (3,845)
Operating Profit (EBIT)	(3,210)	10,640	7,430
Financial results	- 2,596	- (1,227)	- 1,369
Net Profit / (Loss) before Taxes (EBT)	(614)	9,413	8,799
Income tax expense	- (17)	- (2,175)	- (2,192)
Net Profit / (Loss) from cont. operations	(631) -	7,238	6,607
DISCONTINUED OPERATIONS
Net Profit from discontinued operations	1,058	-	1,058
Non-controlling interests	(863)	(382)	(1,245)
Attributable Net Profit / (Loss)	(436) -	6,856 -	6,420 -
Other information :
EBITDA % on Turnover	n/a	12.2%	9.8%
EBT % on Turnover	n/a	7.0%	6.6%
Net profit % on Turnover	n/a	5.1%	4.8%