Tecnotree Oyj — Interim / Quarterly Report 2021

Oct 29, 2021

Tecnotree Corporation Short Report 1[st] Jan - 30[th] Sep 2021 (Unaudited)

Tecnotree Corporation Short Report 1[st] Jan - 30[th] Sep 2021 (Unaudited)

Tecnotree Corporation Stock Exchange Release 29 October 2021 at 9:00 EET

ROBUST REVENUE AND ORDER BOOK GROWTH CONTINUES

Third quarter (July – September 2021)

· Net sales were EUR 18.2 (14.7) million.
· The adjusted operating result was EUR 7.1 (6.9) million and the operating
result was EUR 7.1 (6.9) million.
· The adjusted result was EUR 5.4 (4.4) million and the result was EUR 5.4
(4.4) million.
· The order book at the end of the period stood at EUR 58.6 (31 December 2020:
32.1) million.
· Cash flow after investments was EUR -3.3 (1.2) million.
· Earnings per share were EUR 0.02 (0.02).

January - September 2021

· Net sales were EUR 46.1 (38.6) million.
· The adjusted operating result was EUR 17.7 (15.0) million and the operating
result was EUR 17.7 (14.3) million.
· The adjusted result was EUR 13.1 (9.9) million and the result was EUR 13.1
(9.3) million.
· Cash flow after investments was EUR 0.2 (4.7) million and the company’s cash
and cash equivalents were EUR 13.9 (31 December 2020: 8.0) million.
· Earnings per share were EUR 0.05 (0.03).
[][]
Key figures, MEUR 7-9/ 7-9/ 1-9/ 1-9/ 1-12/
2021 2020 2021 2020 2020
Net sales 18,2 14,7 46,1 38,6 52,8
Adjusted operating result [1] 7,1 6,9 17,7 15,0 19,3
Operating result 7,1 6,9 17,7 14,3 18,6
Result before taxes 6,4 5,4 15,5 11,7 15,9
Adjusted result for the period [2] 5,4 4,4 13,1 9,9 14,2
Result for the period 5,4 4,4 13,1 9,3 13,6

Earnings per share, basic, EUR 0,02 0,02 0,05 0,03 0,05

Order book 58,6 26,7 32,1

Cash flow after investments -3,3 1,2 0,2 4,7 7,0
Change in cash and cash equivalents 3,3 1,1 5,9 3,5 4,7
Cash and cash equivalents 13,9 6,8 8,0

Equity ratio % 83,1 33,6 39,3
Net gearing % -22,6 43,5 27,1

Personnel at end of period 715 653 659

CEO Padma Ravichander: Impressive Revenue and Order Book Growth Continues

Tecnotree delivered strong revenue growth and robust margins again in the third
quarter. The revenue recorded is the highest in the last five years and order
book is highest in the last nine years. Tecnotree continued to witness high
acceptance for its Digital BSS Suite, especially in the Middle East and Africa
(MEA) region. With each win and delivery, we continue to prove our product and
scalable delivery capabilities including 5G, cloud native and remote deployment
abilities. We expect the digital transformation to continue at a fast pace in
the telecom industry thereby resulting in more global opportunities for
Tecnotree. Additionally, Tecnotree has also made exciting advances in the B2B2C
venture via its Tecnotree Moments platform.

In the third quarter, Tecnotree further enhanced its balance sheet position by
raising ~EUR 22 million through directed share issue. We also retired the
outstanding debt to become debt-free and came out of restructuring program which
will help us in enhancing our customer portfolio and partnerships.

Tecnotree continues to monitor the Covid-19 pandemic situation and take
necessary actions and mitigation steps to reduce any impact it may cause. We
also continue to provide all possible assistance including vaccination drives to
all our employees globally, to combat the pandemic. We also continue to expand
our talent acquisition program globally to ensure we have the human resource
redundancy globally to deliver in these times.

Revenue
Revenue in the third quarter was EUR 18.2 million and EUR 46.1 million during
the first nine months of the year, witnessing 24.7% and 19.5% growth
respectively compared to last year. MEA region recorded strong growth
constituting 85.2% or EUR 15.5 million to the total third quarter revenue. Out
of other regions, LATAM region demonstrated strong recovery by recording 46.1%
growth in the third quarter revenue compared to last year.

Profitability
Operating result in the first nine months was EUR 17.7 million compared to EUR
14.3 million last year, witnessing EUR 3.5 million or 24.2% growth compared to
last year. Net result for the first nine months was EUR 13.1 million being EUR
3.9 million or 41.6% higher compared to last year. Earnings per share (EPS) was
0.05 euros compared to 0.03 euros last year.

Order intake
During the third quarter, Tecnotree recorded multiple new wins including new
logos. The total order intake during the first nine months was EUR 72.6 million
being 82.3% higher compared to same period last year. Order book in the end of
the third quarter was EUR 58.6 million.

Financial situation
In the third quarter, Tecnotree purchased all its outstanding debt held by
Viking Acquisitions Corp. under the debt restructuring programme. This
officially ended the restructuring program and the company became debt free, and
its net gearing turned to negative demonstrating a very strong financial
situation. In addition, cash proceeding received through directed share issues
in the third quarter further strengthened the company’s liquidity as well as
brought in new possibilities for strategic growth investments. Cash and cash
equivalents at the end of the third quarter were EUR 13.9 million compared to
EUR 6.8 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.

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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