MUNIC: ANNUAL TURNOVER 2023: EUR 14.8 M – 01/30/2024 at 6:30 p.m.

• -42% decline in Product sales due to order postponements

• Strong growth of +89% in Services sales, driven by recurring revenue from subscriptions to the Munic.io Cloud platform

MUNIC (Euronext Growth® Paris – FR0013462231 – ALMUN)

specialist in embedded technologies and artificial intelligence for the valorization of automotive data, publishes its turnover for the 2023 financial year (ending December 31, 2023).

At the end of its 2023 financial year, MUNIC recorded a turnover of €14.8 million, down -32% compared to the previous financial year, in line with the annual business volume targeted at the end of September 2023 at the occasion of the publication of the half-year results.

After a post-pandemic economic recovery and very strong demand following the components crisis in 2022 which led to an increase in stocks among MUNIC’s main customers, activity suffered in 2023 from an economic environment which gradually deteriorated over the course of the year, leading to increased caution among MUNIC’s major account clients in launching their projects and therefore their orders for

Smart Dongles

.

In this context, the volume of several expected orders was partially reduced or completely postponed to 2024, leading to a -42% decline in Product sales over the financial year.

Conversely, the share of Services sales continued to increase sharply, to represent 21% of turnover last year, compared to 8% in 2022. This activity, which generates structurally higher gross margins, appreciated by +89% over the year, due to the increase in billings linked to subscriptions to the Munic.io Cloud platform, a source of recurring revenue which should continue to grow over the coming years, as as the number of

Smart Dongles

activated. The constant growth of these recurring revenues thus suggests solid prospects for the evolution of the company’s gross margin over the coming years.

By geographic region, 2023 annual sales come 71% from the Americas (vs. 67% a year earlier), 27% from Europe (vs. 16%) and 2% from the rest of the world (vs. 17%).

IMPORTANT OUTLOOK AFTER A DISRUPTED YEAR 2023

The year 2023, although characterized by a difficult market environment, resulted in progress on MUNIC’s various development opportunities and suggests a rebound in activity in 2024.

During the 2

^n/a

half-year, MUNIC continued its efforts and its mobilization on the commercial level, with in particular progress on current contracts concerning the large-scale launch of the EKKO platform and is counting on the signing of numerous large-scale deployment contracts in all next months.

At the same time, the company continued its R&D investments for the development and improvement of EKKO and associated services, for its Artificial Intelligence platform at the heart of all its solutions and for the enrichment of the engine

Edge Computing

embedded as well as its range of terminals, including three new products.

The range now includes a “hardened” terminal (withstanding shocks and strong mechanical, thermal and climatic constraints) which embeds all of MUNIC’s know-how in a configuration adapted to commercial vehicles such as construction machinery, agricultural machinery, airport vehicles, and more generally many categories of special vehicles. Another terminal under development, with advanced diagnostic capabilities, the V8+Max, will be marketed during the 2

^th

quarter 2024: it will support new networks, such as Ethernet, embedded in more recent vehicles. Other products, the result of these developments, will be announced in 2024.

In addition to these actions, MUNIC continues to actively work on obtaining new sources of financing, which will make it possible to extend its financing needs beyond mid-2024, and thus to have at the end of this year improved cash flow compared to that at the end of 2023. At the end of December 2023, MUNIC had available cash flow of €0.6 million, an amount which does not include €1.1 million in CIR (research tax credit) for the 2022 financial year, the collection of which was postponed to 2024. At the end of 2022, available cash amounted to €3.2 million. Net financial debt stands at -€5.3 million at the end of the 2023 financial year (vs. -€3.7 million at the end of 2022).

On the commercial front, MUNIC anticipates good activity dynamics in 2024, which should result in a rebound in its turnover. In addition, the company anticipates an improvement in its profitability, driven in particular by the strong increase in recurring subscriptions to the Munic.io Cloud platform.

In the longer term, given the deterioration of the economic environment and the delays in large-scale deployment projects of the EKKO platform following conclusive pilot phases, MUNIC has decided not to maintain its objectives at the end 2026. The company nevertheless reaffirms its significant ambitions for profitable growth, based on the broad development of the EKKO platform over the coming years.

FINANCIAL AGENDA 2024

All publications will take place after the close of the Euronext Paris market.

About MUNIC

Created in 2002, MUNIC designs and develops technological solutions, combining Smart Dongles, capable of collecting and decoding thousands of data from automobile vehicle sensors, and an artificial intelligence Edge Computing platform, Munic.io, allowing analyze and promote them.

The result of more than 20 years of R&D, MUNIC’s patented technology combines (i) high-level electronic expertise (design and industrialization of on-board equipment with a small footprint, high energy and radio performance, high reliability in an automotive environment, at low costs very competitive), (ii) vehicle data decoding capacity, and (iii) an artificial intelligence Edge Computing platform (MUNIC.io) to process this data.

Based in Villejuif (94), with offices in the United States and China, MUNIC has 60 employees, 77% of whom are engineers. The company achieved €14.8 million in turnover in 2023, mainly in the United States and Europe. The company is labeled Innovative Company (Bpifrance).

MUNIC is listed on the Euronext Growth® Paris market (ISIN code: FR0013462231 – Ticker: ALMUN).

More information on: www.munic.io

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