Tecnotree Oyj

Good morning and welcome to TechMetree Q3 2026 Earnings Report Call and Webcast. My name is Thomas Caponin, Director of Investor Relations, and with me presenting today is CFO Indira Sridharananda. We'll be going through the presentation in 30 minutes with questions and answers included. And if you have any questions, you can submit them in the Q&A box below. Without further ado, please go ahead, CFO Indira Sridharananda.

Thank you. Thank you, Thomas. Good morning, everyone. Thanks for joining this call. We'll walk you through the quarterly results what we announced yesterday. Let me start with some of the business updates. As you can see, the key deals in Q3 was we got one BSS deal in the APAC, one MBNX deal in Africa, One DevOps in MTN Arco and a multi-year ARR deal from Lata. In addition to that, we also went live in four different geographies in different Arcos. And some of the achievements, technical achievements, what we did in this quarter was 279 features delivered in Q3. Overall, this year, we have done more than 700 features which were delivered. AI operational efficiency is in effect across the views as you know that the AI is now into everywhere and every product of technotree we use the AI and that has already making us more efficient in AI embedded features in all our products with strong market-driven program further on some of the recognitions what we got we were finalists at Global Awards 2026 with MTN for VSS OSS modernization and for AI-led capability development on our Modus platform. And as you know that we are also recognized by Gartner in five high cycles. Our AI investment is being recognized by Tecnotree because as it appears in five Gartner's Now let's dive into some of the financial numbers. First I would like to talk about the numbers Q1 to Q3 what we have the some of the key metrics for this Y2D numbers. The free cash flow for this first nine months is at 3.9 million against 3.2 we achieved last year. which gave us a 21% increase year on year. The revenue, we grew by 7.8%. This is in the real currency. Compared to 52.8, we did 57 million. In constant currency, we did slightly better at 9.5% from 52.8 to 57.8. On the EBIT, that's earning before interest and taxes, we grew by 43.8%. from 30.2 to 19 million in the first 9 months. The net income as a result of all the operations it grew by 23.8% from 6 million to 7.4 billion. Next slide please. Some of the other financial parameters also I want to draw the attention are the investments in the capex to the sales ratio. Last year Leena Koskelainen The order backlog remains consistently at the same level above 105 million. Can we move on to the next slide please? Now, I want to draw attention of the audience here for the YGG financial performance in the last four years. In the last four years our revenue for the first nine months have always been above 50 million and this year probably this is the highest among the last four years. The EBIT is also highest in the last four years at 19 million and financial items was substantially higher at 9.1 compared to the earlier years. I want to draw attention here The financial items was higher, substantially higher, due to a one-time write-off of 5 million what we undertook in Q2 of the current year. The taxes remained consistently around 2.5 million. The net income, in spite of that high write-off, remained at 7.4 million, almost in line with the earlier years. The cash inflow is also at a high compared to the last four years. Again, ballparking at 40 million plus in the last four years. The order received is also around the same range as earlier years, except in the last year, we took a couple of large orders, which boosted our ordering day in 2025, the first nine months. The order backlog, since we had a higher ordering day, plus the new order received as reduced by the revenue recognize, remains strong at above 105 million. The earning per share is at 0.34 in line with the last year and slightly lower than 24. And for 2023, I want to draw the attention that was calculated based on the pre-share split numbers. Can we go into the next slide? Now, let's look at only this particular quarter performance. As you can see, we have got a consistency in our revenue earnings over a period of time. Current year is at 20.2, which is in line with the earlier years on 18 million plus in each of the last 2-3 in the 4 years. The EBIT is at high level at 5.8 compared to the previous years at 3.6. The financial items is at higher at 1.6. and taxes at 1.2. Net income is in line with the last year numbers at 3 million compared to 3.4 in the last year, slightly lower than 4.1 we achieved in 2024 and higher than or at the same level as we did in 2023. Cash flow, again as I can share, as we shared in our financial report, is at highest level in the last 4 years in a particular quarter at 18.1 million. Order receipt is at 19.1 consistently around that is what we achieved in the last couple of years. Last year it was slightly lesser in Q3 at 12.5 and order backlog as we called out earlier is above 105 million. The earning per share is at 0.13 in the current year. Can we move to the next slide? Now, let's go a little bit deeper into some of our financial performances. As you can see, we have given a guidance earlier at the beginning of the year that our revenue will grow between low to midpoint single digits in constant currency. However, a few days back, we reassessed the numbers and the board gave a guidance revision and changing it The Q3 up to Q3 first 9 months as we saw earlier we did 57 million at 7.8% year on year growth. In constant currency we were at 27.8 giving us a growth of 9.5% year on year. Again, if I compare the YDD numbers in revenue bank, we maintain the license revenue at almost same level as last year. The delivery revenue went up slightly and the ARR revenue also went up a little bit higher. And when you look at the geographical area by region, Again, this depends on our revenue models of getting the revenue when we get the orders in different regions. The Europe and America was slightly lower, which was compensated by increasing revenue from VIA and APAC. Again, order backlog, as you can see, since my revenue in this year has been slightly lower in Europe and America, I have a higher backlog. to deliver in Europe and America and almost consistently at the same level India and APAC. Can we move to the next slide please? Now, I want to also draw attention about our EVIT performance. The EVIT is at 19 million which was compared to 13.2 million what we did in the last year which gives us an increase of 43.8% year on year.

The EBIT margin, the EBIT earned against the revenue is at 33.4% against 25% in the last year.