GECI INTERNATIONAL: Half-Year Revenue for the 2022/2023 financial year – 11/15/2022 at 6:30 p.m.

STRONG INCREASE IN REVENUE IN

^1ST

SEMESTER 2022-23

GECI International, a specialist in Digital and Technology, is stepping up its development in the first half of 2022-23 with revenue up by +16.4%. This performance confirms the Group in its growth objectives for the whole of the 2022-23 financial year.

HIGHLIGHTS OF THE SEMESTER

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GECI International achieved consolidated revenue of 9.77 million euros in the first half of 2022-23, up +16.4% compared to the previous financial year (+15.9% at exchange rates constant), thus confirming the momentum of development.

This change is based on the Group’s redeployment in the high value-added Digital and Technology markets, more particularly in high-performance computing (HPC), financial IT and telecoms in Brazil. This redeployment made it possible to compensate for the slowdown in outsourcing and telecoms activities in France, as well as the withdrawal from activities in South Africa.

[1]

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As of September 30, 2022, the Group’s consolidated revenue is split between France (76.4%) and Brazil (23.3%). It takes into account a positive exchange rate effect in Brazil for an amount of 0.04 million euros, or 0.4% of sales, taking into account the revaluation of the Brazilian real against the euro during of the semester.

At the end of September 2022, the Group had a total workforce of 442 people compared to 439 at the end of March 2022 and 491 at the end of September 2021. This one-off reduction in the overall workforce is mainly linked to the completion of a telecommunications project in Brazil, to the reduction of the administrative team and the end of the contract in South Africa.

Also, in the context of its redeployment, the Group is continuing to develop its international network of recruitment, technology and sales partnerships.

EVOLUTION OF TURNOVER BY DIVISION AND GEOGRAPHICAL AREA

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the

Digital division

(5.9 million euros, or 60.7% of half-year revenue) is up +24.3% compared to the first half of the previous year. The slowdown in Managed Services (-6.5%) was offset by higher HPC sales (+23.9%) and growth in Finance activities (+54.6%).

the

Technology Division

(3.8 million euros, or 39.3% of half-year sales) recorded growth of +5.9% compared to the previous year. Telecoms activities in France fell by -8.6% due to a reduction in demand. However, the growth in turnover of the Brazilian subsidiary (+27.1% at constant exchange rates), following the deployment of major contracts in the Telecoms sector signed over the past two years, has reinforced the positioning of the subsidiary.

FINANCIAL SITUATION

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The Group is strengthening its financial position through

(i) the strengthening of its presence with its main customers via an offer with higher added value, which is reflected in particular by a significant increase in turnover in banking and tertiary activities (+54.6%) and in high performance computing (+23.9%);

(ii) the increase in the average daily billing rate in France (+18.4% between April 2021 and October 2022).

The Group’s net financial debt amounted to €6.5 million at the end of September 2022 (figures under audit), including financial debt for an amount of €2.9 million, the restatement of rents for 0.7 million euros, debts related to the acquisition of the Eolen Group for 3.4 million euros (put and vendor credit), a partner current account of 0.2 million euros and cash of 0.7 million euros.

Net financial debt thus decreased by 1.1 million euros, or -14.0%, compared to March 2022 (7.6 million euros). 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.

During the first half of 2022-2023, the Company raised 1 million euros gross through the conversion of 100 ORNAN

[2]

. This financing enabled a partial repayment of the debt and the strengthening of its equity at the end of September 2022, through capital increases of the same amount.

OUTLOOK

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The GECI International Group is redefining its strategy with the withdrawal from South Africa, the refocusing of its IT activity on finance and the tertiary sector, the development of HPC in industry and the expansion of its Telecom activity towards smart urban equipment and smart solutions and products for the smart city.

In this context of recovery and metamorphosis, the Group is strengthening its innovation strategy, combining technology and digital, to support its redeployment and serve high-potential markets – telecommunications, transport, renewable energies, financial IT and smart cities.

In the field of cybersecurity, the Group has also decided to focus its expertise on consulting in SOCs (Security Operations Centers) with an original offer of 24/7 and multilingual services, and to suspend the distribution of cybersecurity software.

GECI International now benefits from technological alliances and innovation capabilities, notably with its network of alliances in France, Israel and Brazil, to support the development of its Digital and Technology activities, increase the convergence of its two divisions , and meet the challenges of a new world in search of an energy transition and an economy adapted to the conditions of a planet in full upheaval.

Regarding the current financial year and given the good momentum observed, the Group anticipates double-digit growth in its annual turnover.

With the convergence of its activities in Digital and Technologies, 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 aims to continue its development in a new trajectory. profitable growth and to diversify its economic model to new growth drivers, particularly those of the Smart City.

NEXT MEETING

2022/2023 half-year results, December 16, 2022 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]

The contract with ESKOM (energy) ended in November 2021.

[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.

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