GECI INTERNATIONAL: Half-year turnover for the 2023/2024 financial year – 11/14/2023 at 6:00 p.m.

GECI INTERNATIONAL CONFIRMS ITS GROWTH DYNAMICS

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SEMESTER 2023-24

The turnover of 1

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half-year, up +17.9%, confirms the dynamic initiated several semesters ago by the GECI International Group, specialist in Digital and Technology. In an economic and geopolitical context marked by strong turbulence, the performances recorded confirm the Group in its double-digit growth objectives for the entire financial year. The Group’s desire to build a sustainable growth model is reinforced.

HIGHLIGHTS OF THE SEMESTER

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GECI International achieved consolidated turnover of 11.55 million euros in the first half of 2023-24, up +17.9% compared to the previous financial year (+18.7% at exchange rate). constant).

Maintaining a dynamic of strong organic growth is mainly based on the sustained progression of telecoms activities with the transformation of major contracts in Brazil, and on the resilience of High Performance Computing (HPC) and financial IT activities despite the slowdown in demand.

As of September 30, 2023, the Group’s consolidated turnover is divided between France (59.3%) and Brazil (40.7%). It takes into account a negative exchange rate effect in Brazil for an amount of 0.08 million euros, or 0.7% of turnover, taking into account the evolution of the Brazilian real against the euro in course of the semester.

The Group has a total workforce of 504 people at the end of September 2023, compared to 442 at the end of September 2022 and 530 at the end of March 2023. This change is mainly linked to the deployment of framework contracts in Brazil.

During the first half, the Group continued its policy of international alliances, particularly in human resources, sales and technology.

EVOLUTION OF TURNOVER BY Sector AND GEOGRAPHICAL AREA

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THE

Technologies Center

(6.4 million euros, or 55.1% of half-year turnover) recorded growth of +64.9% compared to the previous year. This development is mainly based on the intensification of the development of the Brazilian subsidiary’s activity (+108.0% at constant exchange rate) with the deployment of major contracts signed during previous years in the telecoms sector. In France, the division confirms the resumption of telecoms activities (+3.7%) and the emergence of Engineering activities (+31.1%).

THE

Digital Center

(5.2 million euros, or 44.9% of half-year turnover) is down -12.7% compared to the first half of the previous financial year. This development is mainly explained by the contraction of Managed Services activities over the period (-42.8%), while the HPC and Finance activities are generally stable compared to high bases of comparison in the first half of the previous year.

FINANCIAL SITUATION

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The Group continues to reorganize its financial situation through:

1. the strengthening of its presence among its main clients via a higher added value offer, which is reflected in particular by the strong growth in the turnover of the Technologies Sector and the resilience of the turnover of the Digital Sector in a more difficult economic situation;

2. the continued increase in the average daily billing rate in France (+12% between April 2023 and October 2023).

The Group’s net financial debt amounts to 6.4 million euros at the end of September 2023 (figures currently being audited), including financial debts in the amount of 0.6 million euros (including overdrafts), the factoring advance of 1.7 million euros, the ORNAN and OCA debts for 0.4 million euros, the restatement of rents for 0.5 million euros, the debts linked to acquisition of the Eolen Group for 3.4 million euros (put and seller credit), a partner current account of 0.1 million euros and cash of 0.4 million euros.

Net financial debt thus decreases by 0.3 million euros, or -4.6%, compared to March 2023 (6.6 million euros). The associate current account concerns the reference shareholder XLP Holding, which contributed 0.2 million euros in August 2022 in order to support the Group’s development strategy.

During the first half of 2023-2024, the Company raised 0.25 million euros gross through the conversion of 25 ORNAN

[1]

. This financing enabled a partial repayment of the debt and the strengthening of its equity at the end of September 2023, through capital increases of the same amount.

OUTLOOK

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The growth in turnover, the continued strengthening of the financial situation and the expected improvement in profitability confirm the Group in the relevance of the strategy implemented and in its ability to pursue sustainable growth.

Concerning the current financial year and taking into account the dynamics observed, the Group anticipates double-digit growth in its annual turnover.

In a disruptive environment driven by new challenges linked to the digital, ecological and energy transformation of organizations and companies, GECI International is pursuing its innovation strategy in order to increase the convergence of its two business areas and strengthen its positions in high value-added markets: telecommunications, transport, renewable energies, IT.

At the same time, the Group is continuing to diversify its economic model, relying on technological alliances and commercial partnerships, particularly in France and Brazil, to market a range of intelligent solutions with high potential, particularly in the smart city market. (smart cities and associated systems such as traffic systems, public lighting, parking lots, residences, internet of things, etc.).

With the spirit of innovation that has characterized it since its creation, its mastery of complex projects, its ability to boost new technologies, the Group aims to pursue profitable growth and expand its economic model.

NEXT MEETING

Half-year results 2023/2024, December 15, 2023 after market close.

ABOUT GECI INTERNATIONAL


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“Smart Solutions for a Smart World”

GECI International is a Group specializing in Technology and Digital. Since its origin in 1980, the Group has innovated to design and develop intelligent solutions, products and services for the Research, Industry and Services sectors.

With its recognized know-how, its ecosystem of technological partnerships, its commercial alliances and its highly qualified skills on a global scale, GECI International positions itself, with agility, across the entire value chain – advice and expertise, development and integration, outsourcing and training – to support companies and organizations in their search for competitive strategy.

GECI International is also deploying a new entrepreneurial dynamic with the development of new intelligent and technological offers in the areas of “smart cities” and the world of transport.

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]

Upon authorization of the Combined General Meeting of September 29, 2022, the Group implemented financing on May 12, 2023 for a total net nominal amount of up to €9.3 million by issuing a number maximum of 1,000 ORNAN reserved for YA II PN, Ltd. During the half-year, the Group carried out 1 draw of 25 ORNAN on June 25, 2023. There remain 975 ORNAN, representing a gross envelope of 9.75 million euros.

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