ENENSYS TECHNOLOGIES: 2022 annual results: Positive EBITDA of EUR 0.9 million – Net profit of EUR 2.6 million – Sharp reduction in net financial debt – 04/11/2023 at 6:00 p.m.

• Positive EBITDA of €0.9m
  

• Net profit of €2.6 million thanks to profits related to financial restructuring operations
  

• Free cash flow
  [1]
  €1.0 million
  

• Sharp reduction in net financial debt
  

The ENENSYS Technologies Group, a global specialist in digital video broadcasting and targeted advertising insertion, announces the publication of its 2022 annual results, approved by the Board of Directors on April 6, 2023.

The year 2022 was marked by the finalization of financial restructuring operations in the first half of the year, which enabled the Group to rebuild its equity, significantly reduce its net financial debt and generate a largely positive net result. In this year of recovery, the Group delivered, despite a generally unfavorable economic context, a slight growth and confirmed the good control of its expenses with a positive EBITDA.

ENENSYS Technologies achieved revenue of €12.7 million, up +1.8%, thanks to a dynamic level of activity in the second half with revenue of €7.3 million, up by +10.4% over the period, which made it possible to make up for the delay taken in the first half. The most buoyant regions were the United States (+33.2% to €3.2m) and Asia-Pacific (+37.3% to €2.1m). Business remained solid in EMEA (+2.7% to €6.2m) while France did not experience any significant business in 2022 (-46% to €1.1m).

The Group continued to reap the benefits of its international commercial presence on all offers, from historical terrestrial activity to OTT monitoring or targeted advertising. The Group’s solutions have thus been marketed in nearly 80 countries in 2022, and can be illustrated by the following achievements:

• ENENSYS OneBeam is deployed with Canal+ International to reduce OPEX distribution costs in Africa (press release);

• ENENSYS AdsReach monetizes regional TV audiences at TVN in Chile (press release)

• ENENSYS and Ateme associated for an ATSC 3.0 solution in Boston (USA) ( press release );

• BTESA deploys ENENSYS OneBeam solution for RTVC in Colombia (press release)

• ENENSYS and TestTree selected by Rai Way for the TV contribution network in Italy (press release);

• ENENSYS and Electrolink partner to deploy T2 transmitters for Rai Way in Italy (press release)

• ENENSYS and Ateme partners for the DVBT-2 development of Rai Way in Italy (press release)

Largely positive EBITDA of €0.9m – Net income boosted by exceptional income

The gross margin stands at 75% of sales, still at the highest historical levels. This performance confirms the strong share of software solutions in the activity and the ability of the Group to pass on the increase in the cost of purchasing electronic components in the selling prices.

External expenses logically increased by €0.5 million, mainly due to the increase in commercial expenses, in particular linked to the resumption, after 2 years of cancellation, of international trade fairs. Personnel costs remained stable and under control with a workforce still stabilized at around 85 employees. Research and development costs, fully expensed, remained stable at €4.3 million over the year.

Taking these elements into account, the Group maintains a positive EBITDA of €0.9 million.

After accounting for allocations to amortization and provisions for €1.6 million, increased by €0.7 million by the end of amortization of intangible assets,

current operating profit was -€0.7 million. Without these non-recurring amortizations of intangible assets, it would break even.

Operating income is largely positive at €1.8 million

by benefiting from exceptional income of €2.9 million, marking under IFRS the difference between the value of the bond debt extinguished (€4.5 million) and the value of the newly issued shares at the price on the day of issue (1 .6 M€).

The financial result

is also positive at €0.7 million, thanks to a profit of €0.5 million related to the cancellation of bond interest.

After recognition of a positive accounting effect on tax of €0.1 million,

the net profit attributable to the group was profitable at €2.6 million, up €2.5 million.

Reinforced financial structure – strong reduction in indebtedness

The cash flow generated by the activity over the 2022 financial year amounted to €1.1 million, benefiting from an improvement in the WCR of €0.6 million linked to a return of trade receivables to a more normative level. Investments remained at a very low level, enabling the Group to generate

free cash flow of €1.0 million

on exercise.

The free cash flow and the conversion of bond debt into shares have made it possible to significantly reduce net financial debt. The latter amounted to €7.1 million at December 31, 2022 compared to €12.2 million at December 31, 2021. Excluding rental debt (IFRS 16) of €3.2 million, it amounted to €3.9 million.

Available cash increased to a comfortable level of €3.6 million (+€0.7 million over one year) and the Group thus has a sound financial structure to pursue its development.

Solid outlook for 2023 despite the context

The Group started 2023 with a strong backlog of around €6.0 million, in line with that of last year at the same period.

Despite a context that tends to favor a wait-and-see attitude in decision-making cycles, the solutions developed by the Group continue to arouse strong interest, as demonstrated by the success of commercial prospecting at the Mobile World Congress held in February in Barcelona, ​​particularly around critical communications projects.

The development of this high-potential segment has also been entrusted to Peter Clemons, who brings all his expertise and knowledge of customers in this area (press release).

In the coming weeks, ENENSYS Technologies will participate in the NAB Show in Las Vegas in April 2023 at the end of April, which will be an opportunity to present the latest innovative solutions on targeted advertising (AdsReach). The Group will also be present at the IBC show in Amsterdam in September.

The Group thus continues to make every effort to sustainably pursue its new virtuous development trajectory.

Next meeting

: Publication of 2023 half-year revenue on July 27, 2023

About ENENSYS Technologies Group

:

For nearly 20 years, the ENENSYS Technologies Group has supported its international customers in the evolution of uses and technologies. ENENSYS offers highly innovative solutions allowing efficient distribution of content serving several ecosystems: Targeted Advertising, Streaming, Terrestrial Broadcasting, Satellite Communications and Critical Communications. With approximately €60 million invested in Research and Development over the past 10 years, the Group enjoys a reputation for excellence in solutions for optimizing, securing and monetizing video streams. The solutions are marketed through two brands – ENENSYS and TestTree – and reach more than 1.2 billion viewers worldwide. The Group achieved a turnover of €12.7 million in 2022, of which more than 90% internationally.

[1]

Free cash flow = Cash flow generated by activity – Cash flow from investments

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