Tecnotree Oyj — Earnings Release 2021

Feb 25, 2022

Tecnotree Corporation Full Year Report 1[st] Jan – 31[st] Dec 2021 (unaudited)

Tecnotree Corporation Full Year Report 1[st] Jan – 31[st] Dec 2021 (unaudited)

Tecnotree Corporation Stock Exchange Release 25 February 2022 at 9:00 EET

RECORD RESULTS AND STRONG ORDER BOOK

Fourth quarter (October – December 2021)

· Net sales were EUR 18.1 (14.2) million.
· The operating result was EUR 5.9 (4.3) million.
· The result was EUR 5.2 (4.3) million.
· The order book at the end of the period stood at EUR 53.5 (32.1) million.
· Cash flow after investments was EUR 3.8 (2.3) million.
· Earnings per share were EUR 0.02 (0.02).

Full year (January - December 2021)

· Net sales were EUR 64.2 (52.8) million.
· The adjusted operating result was EUR 23.7 (19.3) and the operating result
was EUR 23.7 (18.6) million.
· The adjusted result was EUR 18.3 (14.2) million and the result was EUR 18.3
(13.6) million.
· Cash flow after investments was EUR 4.0 (7.0) million and the company’s cash
and cash equivalents were EUR 17.6 (8.0) million.
· Earnings per share were EUR 0.06 (0.05).
[][][][]
Key figures, MEUR 10-12/ 10-12/ 1-12/ 1-12/
2021 2020 2021 2020
Net sales, MEUR 18.1 14.2 64.2 52.8
Adjusted operating 5.9 4.3 23.7 19.3
result, MEUR [1]
Operating result, 5.9 4.3 23.7 18.6
MEUR
Result before taxes, 5.9 4.2 21.4 15.9
MEUR
Adjusted result for 5.2 4.3 18.3 14.2
the period, MEUR [2]
Result for the 5.2 4.3 18.3 13.6
period, MEUR

Earnings per share, 0.02 0.02 0.06 0.05
basic, EUR

Order book, MEUR 53.5 32.1

Cash flow after 3.8 2.3 4.0 7.0
investments, MEUR
Change in cash and 3.6 1.2 9.5 4.7
cash equivalents,
MEUR
Cash and cash 17.6 8.0
equivalents, MEUR

Equity ratio % 85.2 39.3
Net gearing % -26.0 27.1

Personnel at end of 750 659
period

[1] Adjusted
operating result =
operating result
before one-time
items.
[2] Adjusted result
for the period =
result for the
period before one
-time items.

CEO Padma Ravichander: 2021 was a Robust, Exciting and Transformational Year for
Tecnotree

2021 was a historical year for Tecnotree as it registered high growth in revenue
(higher by 21.6% compared to last year) and net income (higher by 34.6% compared
to last year) and strengthened its balance sheet in addition to investing across
key products and offerings.

Tecnotree continued to reinforce its position as one of the leading Digital BSS
service providers by increasing its order intake to EUR 85.6 million, highest in
the last nine years (43.9% higher than the last year). Tecnotree has a strong
competitive advantage to serve the fast-evolving global telecom industry as its
5G ready and cloud native Digital BSS solutions have been tested by multiple
telecom operators for large digital transformations especially in the growth
markets which is further accelerated by their 5G deployment.

Further, the fund raising through equity of ~EUR 22 million, retiring of debt
and coming out of restructuring programme in 2021 built strong confidence among
Tecnotree’s stakeholders which led to new customer and partnership
opportunities; it is expected to remain strong in 2022 as well. Tecnotree has
also continued to be an attractive company for global talent and added 91
employees during 2021 despite the hiring challenges related to the pandemic.

Tecnotree will continue to have a balanced approach towards strategic growth
investments as well as maintaining a strong liquidity position with focus on
receivables and cash management. Also, we believe that the investments committed
in 2020 and 2021 have started translating into winning new logos across markets
which is visible in our order intake and order book growth.

Tecnotree continues to monitor the Covid-19 pandemic situation and takes
necessary actions and mitigation steps to reduce any impact it may cause.

Revenue
Revenue in the fourth quarter was EUR 18.1 million and EUR 64.2 million for the
full year showing 27.2% and 21.6% growth compared to last year respectively. The
full year revenue was highest in the last six years and the strongest growth
came from MEA & APAC region demonstrating 23.6% growth compared to last year.

Profitability
Tecnotree’s operating result in the fourth quarter was EUR 5.9 million compared
to EUR 4.3 million last year witnessing EUR 1.6 million or 37.0% growth. Full
year operating result was EUR 23.7 million compared to EUR 18.6 million last
year and was equal to 36.9% of revenue, the record operating result and
operating result margin.

Net result for the full year was EUR 18.3 million compared to EUR 13.6 million
and was equal to 28.50% of revenue, a record net result and net result margin.
The earning per share (EPS) was 0.06 euros compared to 0.05 euros last year.

Order intake
New orders recorded for the full year totalled to EUR 85.6 million showing 43.9%
increase compared to last year and being the highest in the last nine years.
Year-end order book was EUR 53.5 million being 66.5% higher compared to EUR 32.1
million last year. During the year, Tecnotree enhanced its customer portfolio by
adding large telecom operators such as Zain Group and Ooredoo Group for the
digital transformations of their operating companies.

Tecnotree has also signed a first of its kind, subscription based recurring
revenue agreement with MTN Nigeria, one of the largest telecom operators in
Africa, for a B2B2X ecosystem play on Tecnotree Moments platform with pre
-integrated partner offerings in esports, gaming, sports, media entertainment,
education and healthcare. Tecnotree has also signed an exclusive technology
partnership agreement with Dubai Sports Council, the official sports governance
body of Government of Dubai, under the Digital Dubai initiative to provide
Tecnotree Moments platform which will streamline event ticketing, e-sports
tournament leagues, high-quality OTT video streaming of live games with AR & VR
capabilities, coaching, training and gym subscriptions with the aim of
socialising Sports, Health and Wellness in Dubai.

Financial situation
In 2021, Tecnotree purchased its outstanding debt under the debt restructuring
programme and the company became debt free. At the year end, Tecnotree had a
strong liquidity cash reserve and no interest being liabilities. Cash and cash
equivalents at the end of year were EUR 17.6 million compared to EUR 8.0 million
last year.

Other business updates
Tecnotree continues to be on the accelerated growth trajectory in its business
across global markets by increasing the presence of its brand and taking
advantage of the onset of digital transformation requirements of communication
and digital service providers. We strongly believe that the readiness of our
digital stack brings a unique opportunity to increase the operational efficiency
and optimize cost of our customers especially those in markets suffering
inflationary pressure.

With Tecnotree Moments platform and its Fintech offerings, we hope to synergize
new partnerships with communication and digital service providers, eco-system
players and internet of things (IOT) providers, to introduce new revenue models
and API frameworks to take advantage of the 5G roll-outs world-wide and forge
new frontiers to empower digitally connected communities in the sectors of
Education, Health, E-commerce, Gaming, Sports and Entertainment.

Further information
Padma Ravichander, CEO, tel +97 156 414 1420
Priyesh Ranjan, CFO, tel +971 50 955 1188

About Tecnotree
Tecnotree is the only full stack digital business management solution provider
for digital service providers, with over 40 years of deep domain knowledge,
proven delivery and transformation capability across the globe. Our open source
technology based agile products and solutions comprise the full range (order-to
-cash) of business process and subscription management for telecom and other
digital service providers. Tecnotree products and platforms service over 800
million subscribers worldwide. Tecnotree is listed on Nasdaq Helsinki (TEM1V).
For more information, please visit www.tecnotree.com.

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