GECI INTERNATIONAL: GECI International Group Half-Year Results 2022/2023 – 12/16/2022 at 6:30 p.m.

• Gross sales
  
  ¹
  
  half-year growth of +16.4%
  

• Significant improvement in half-year results
  

• Strengthening the Group’s financial structure
  

• Confirmation of strong growth objectives for the full year
  

• The extension of the economic model to the smart city in 2023
  

The Board of Directors meeting on December 15, 2022 examined and approved the half-year financial statements closed on September 30, 2022.

HIGHLIGHTS OF THE SEMESTER

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During the first half of 2022-23, the GECI International Group continued its recovery by confirming its ability to grow strongly while strengthening its profitability profile. With revenue up by +16.4% and financial indicators clearly improving, the Group demonstrates the relevance of its strategy of redeployment and structural optimization.

These changes are based on the Group’s dynamic growth in the high value-added Digital and Technology markets, more particularly in HPC, financial IT and Telecoms in Brazil. The renewal of several client references in these markets and the obtaining of major new contracts, particularly in Brazil, made it possible to offset the slowdown in outsourcing and telecoms activities in France, as well as the withdrawal from activities in South Africa. .

At the same time, the streamlining of the Group’s cost structure has contributed to greater agility.

Finally, financing through the issue of ORNAN (Bond Redeemable in Cash and/or New Shares) made it possible to meet the company’s cash requirements in the short and medium term and to support the strengthening of its financial situation.

Overall, the Group’s commercial dynamic, strict cost control and continued debt reduction have led to a marked improvement in its results and financial structure.

FIRST HALF RESULTS

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The Group’s half-year revenue at September 30, 2022 amounted to €9.8 million, up +16.4% compared to the first half of 2021-22 (+15.9% at constant exchange rates) and is divided between

Digital

at 60.6% and the

Technology

39.4% with International which represents 23.8% of the activity.

Current operating income was negative at €(0.3)m, compared to €(0.8)m in the first half of the previous year. This improvement in operating efficiency is mainly due to the increase in the gross margin in a context of growth with higher added value and to the control of overheads, which have fallen over the last 3 semesters.

Net income, Group share amounted to €(0.3)m as of September 30, 2022 compared to €(1.4)m as of September 30, 2021. It includes an amount of €(0.3)m of expenses not related in particular to the early exit from the lease in Trappes following the exit from the scope of the company Etud Intégral in 2021.

FINANCIAL STRUCTURE

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After taking into account the half-year result, shareholders’ equity, Group share at September 30, 2022 is positive at €2.6 million, compared to €1.6 million at March 31, 2022. They include a total amount of €1.0 million capital increases made through the conversion of 100 ORNAN

²

issued under the financing agreement entered into on September 30, 2020. This financing also enabled a partial repayment of the debt.

The Group’s net financial debt thus amounted to €6.6 million at the end of September 2022, down €1.0 million, or -13.3%, compared to March 31, 2022 (€7.6 million ). It includes financial debts for an amount of €2.9 million, restatement of rents for €0.7 million, debts related to the acquisition of the Eolen Group for €3.4 million (put and vendor credit), a partner current account of €0.2 million

³

and cash of €0.7 million.

OUTLOOK

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The Group is actively pursuing its innovation strategy, combining

technology

and the

digital

to strengthen its positions in high-potential markets – telecommunications, transport, renewable energies, IT and smart cities – and meet the challenges of a planet in upheaval by supporting institutions and companies in their digital, ecological and energy transformation needs .

GECI International benefits from technological partnerships, commercial alliances and the creativity necessary to support the development of its two business lines, increase their convergence and initiate a new entrepreneurial dynamic with the development of new offers and new intelligent products serving smart cities.

With this in mind, the Group has taken a first step by signing an exclusive distribution agreement in September 2022 with the company Gertrude SAEM, specializing in the field of ITS – Intelligent Transportation System, relating to the marketing by the subsidiaries of GECI International in Israel and Brazil of the Gertrude ITS software. This intelligent traffic control system optimizes the flow of public and private vehicles, reduces pollution and improves the safety of urban and metropolitan roads.

With the spirit of innovation that has characterized it since its creation, its mastery of complex projects, its ability to energize new technological companies, the Group intends to broaden its economic model to new sources of growth, while placing its development in a profitable growth trajectory.

Given the results of this first half, the Group anticipates double-digit growth in its annual turnover, which should be accompanied by a further improvement in results.

The half-year financial report is available on the company’s website (www.geci.net).

NEXT MEETING

2022-23 annual revenue, May 15, 2023 after market close.

ABOUT GECI INTERNATIONAL


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“Smart Solutions for a Smart World”

GECI International, driven by Innovation since its inception in 1980 and combining Technology and Digital, offers cutting-edge digital solutions and technology consulting services for major players in the sectors of Industry, Finance, Research , Services and Telecoms.

GECI International is also deploying a new entrepreneurial dynamic with the development of new offers and new intelligent products serving “smart cities”, thanks to an ecosystem of technological partnerships, commercial alliances and highly qualified skills on a global scale.

GECI International is listed on the Euronext Growth Paris market. ISIN code (share): FR0000079634 – ALGEC.

CONTACTS

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GECI International – Investor Relations

Such. : +33 (0)1 46 12 00 00 / [email protected]

CALYPTUS Agency – Cyril Combe

Such. : +33 (0)1 53 65 68 68 / [email protected]

1

after adjustment following financial feedback from the subsidiaries compared to the turnover communicated on November 15, 2022. the turnover was notably adjusted for France by + €0.01 million and Brazil by + 0 €.03 million. Sales in Brazil of €2.3 million take into account a positive exchange rate effect in Brazil for an amount of €0.04 million, or 0.4% of sales, taking into account the revaluation of the Brazilian real against the euro during the semester.

2

On the authorization of the Extraordinary General Meeting of November 12, 2020, the Group implemented on the same day a financing for a total net nominal amount of up to €9.3 million by issuing a maximum number of 1 000 ORNAN reserved for YA II PN, Ltd. During the half-year, the Group made two drawdowns of 50 ORNANs on May 25, 2022 and July 27, 2022. There are 450 ORNANs remaining, representing a gross envelope of €4.5 million.

3

The partner current account concerns the reference shareholder XLP Holding, which contributed €0.2 million in August 2022 to support the Group’s development strategy.

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