Tecnotree Oyj — Call Transcript 2025

With me today presenting are our CEO, Padma Ravichander, and CFO, Indiresh Vivekananda. We will be having the webcast here on Zoom, and we are opening the questions down below, which will be presented at the end of the call in the Q&A sections. Without further ado, CEO, Padma Ravichander, please go ahead. Good morning and welcome to our Q3 2025 results. I'm pleased to share our findings and update you on Tecnotree, along with Indiresh, our CFO, today. Q3 results continue to demonstrate our commitment to getting our long-term fundamentals as a company right. As a headline, I would say we have crossed the chasm of being a cash-burning company to a cash-generating growth story. I've been a CEO in Tecnotree now for almost 10 years, and I would say Tecnotree is a rare asymmetric opportunity. We are profitable, we generate cash, our revenues grow faster than other competitors in the market, which is fast consolidating, and we are also in the fastest growing market segments, which I will explain through the course of this presentation, especially in the areas of cloud, AI. However, we seem to be trading much below P/E multiples of our peer group in the market. My commitment is to ensure, as we move forward with these structural changes we have made, that every year, year on year, the new revenue that we grow will create, going forward, and convert to faster cash. As we move to mature markets, it will accelerate our delivery capability with AI and ensure that we move more towards a steady revenue growth capability with an ARR subscription-based model in the mature markets. Now, when we look at the key metrics, as you can see, this is a sixth consecutive quarter where we have had a free positive cash flow: 2025, $3.2 million year to date. This is not just an ad hoc one-time event. I think in the history of the company, this has been a record continuous performance in terms of free cash flow. It's actually a very structured process that we have created to generate cash from our operations. I'm proud to see our performance per guidance. In terms of revenue, we have certainly done well in constant currency. We grew by 4.8%. We will have to strip away the forex noise, as we are definitely growing faster than the flat BSS market when it comes to revenue growth in U.S. currency. Most of the markets that we sell are in U.S. dollars, and hence the forex devaluation has certainly had an impact on us, and hence the revenue in the quarter, of course, and for the year in euro terms, is a -2%. From my own personal perspective, I would like to see this to be a positive number, and I have an aspirational goal before the end of the year to make way to make this number positive as well. When it comes to EBIT in constant currency terms, again, we have done exceedingly well compared to 2024 at $13 million. We are at 14.9% or 15% growth. This demonstrates our underlying profitability. I will double-click on this along with Indiresh further in the presentation. Looking at these numbers, you can see that our fundamentals are right, and we are a growth story. The next set of metrics are equally important, and we are as per guidance in most cases. If you look at the ARR, it's up by 8%. This is definitely creating stickiness with our customers. This is a recurring revenue engine, which is predictable, which has high margin, and has a compounding effect as we deliver more projects and more managed operations for our customers year on year. The real story here is definitely the order backlog: 40% up to $105.5 million, the strongest that the company has ever seen in its history so far. This is not just pipeline. This is actual orders booked that will convert in the next 12 months-36 months into revenue, along with more ARR. On the CapEx-to-sales, I think that we are doing well in terms of guiding that towards 12%, as we have said in the market, from the 19% of 2024. We are getting far more capital efficient as we use and adopt more AI in terms of improving our productivity and engineering velocity. While the DSO days are tracking a little under the guidance, we are certainly moving in the right direction in terms of the DSO days. The bottom line on the numbers year to date would sum it up as the metrics are right, ARR is up, CapEx is down, order backlog, and collections are improving. This is definitely creating long-term shareholder value. Now, let's look at the detailed performance of Q3. We got three new deals in this quarter, creating multiple geography expansions from a market perspective. What is really important this quarter is definitely the five Goal IV s. The Goal IV of a tier-one telco in the U.S. is extremely important to unlock and upsell more capability of our product stack into this particular operator in the U.S., but it also creates enough capability for us to go after other tier-one telcos in the U.S. market. Ooredoo Oman billing Goal IV and modernization in a growth market gave them a 3x performance improvement on their billing systems. The eSIM Goal IV in a European market is a hot product for MVNX capability and will create business expansion for Tecnotree globally. Finally, the tier one telcos that went live are not just pilot projects in MTN or in the Asia-Pac region. They are real production deployments in tier one operations. As you can see, our key contributors for ARR growth continue to grow, and our stickiness with these customers in terms of expanding our footprint, giving them greater support to monetize revenue on the platform continues. What is really compelling this quarter is the industry recognitions, and I would say two are exceedingly important. The first one is the Gartner recognition, where Gartner recognizes our AI capability to move from a niche player to a visionary. For Tecnotree, this is a feather on our cap, mainly because these are important validations in three ways. First of all, many tier one telcos in mature markets look to Gartner for references. Secondly, it also helps us to address more cloud and more AI capabilities for tier two markets and MVNX players globally. Finally, the AI capability that we have brought in attracts SIs to work closer with us, increasing our market share and also expanding our footprint into newer markets. This quarter, we have continued to also grow the product features. Today, we stand out of the box with more than 4,500 features in our stack. We definitely continue to deliver a lot of large-scale AI transformation capabilities to tier one telcos, and the billing improvement definitely is opening doors for new opportunities in brownfield operators. Now, let's look at the details in terms of the revenue guidance. Let me unpack this a bit more. In constant currency, our revenue actually is right on the guidance, up 5.4%, but in real euro terms, it's down by 2%, mainly because of the dollar headwinds that we have faced over the course of the whole year. I'm sure Indiresh will talk a little bit more about the U.S. dollar fluctuations, which was, while it appears temporary, seems to have continued across the first half especially. What is really critical to understand is the mix of the revenue. If you look at quarter three, while the license revenues are down, and we had predicted because we won several new orders and delivered the licenses in the first half of this year, in the second half of the year, the deliveries for these customers have commenced, and therefore the delivery revenues have increased. We have also shown a very good positive increase on ARR revenue, which is exactly what we need in terms of front-loading delivery, and services revenue will convert into higher ARR margins in 6 months-12 months. To me, the key takeaway is the fact that the revenue diversification to ARR and the subscription-based models are working for the company. There are definitely improvements in collecting revenue because of AI. Finally, as you can see, we are winning in mature markets, both in terms of revenue in the regions of Europe and Americas, but also in terms of order backlog within these regions. These markets are definitely lower risk, higher payment growth, and higher margin markets. When I look a little bit deeper into the revenue mix, I'd like to go backward and look at the last five years of performance. It's historical data, but it does tell a story. You can see over the last five years, we have added more than 14 new customers. The requirement at the time was that tier one legacy customers, Claro and MTN, wanted a better mix and a better portfolio of customers who use Tecnotree products. We took this really seriously into our journey, and we added 14 new customers, all of which have today more potential to cross-sell and upsell. If you look at the ARR revenue, revenue was up in 2020, and then it took a slight dip and then moved back up again. That's mainly because of changing the customer profile and adding new customers, which meant unlocking new licensed revenue and then moving up these customers into more DevOps and ARR subscription-based models over the course of 2023 and 2024. We also did certain other strategic things in the last five years. In order to enter mature markets, we had to conform to certain regulatory requirements. We retired some very long-standing customers that were giving us a lot of ARR revenue in the 2021-2022 timeframe. That also reflects in terms of the dip that we took in ARR. We have sufficiently worked hard to replace those customers with new opportunities with our current portfolio of customers. It's also important to note that we added seven new customers already this year. I wanted to take a little bit of time to really talk about the market positioning map and the five-year trends that we are seeing in the market and why the Tecnotree long-term strategy is a growth strategy, and we are extremely well positioned in the market. If you look at the first graph, you can see that the opportunities for greenfield and brownfield, and the highest amount of greenfield opportunities are definitely in Africa and MEA. Tecnotree's presence in these markets is long-term. We have a long-term engagement model. We have a lot of reference operators who are tier one, and therefore our ability to take on more digital transformations for greenfield definitely exists. We also see that there are new brownfield opportunities in North America and Europe. These are large transformation opportunities that will create new ARR capability for us and new revenue growth opportunities, the first one of which we unlocked in the U.S. market last year. In terms of the MVNO, MVNX business, we entered the European market to take market share in the MVNO business. As you can see, in terms of market maps, Europe and North America are the fastest growing MVNO, MVNX markets, and Tecnotree is well positioned in terms of its product stack to take market share in these markets. In terms of CapEx and OpEx, again, Europe is more tuned towards an OpEx model, more an OpEx model, along with the U.S. This subscription-based model definitely means better margin, higher ARR revenue opportunities for Tecnotree. In terms of the BSS product stack itself, the highest call for action is in the transformation of the billing and the customer experience capabilities. If you look at the IDC recognition as a major player, recognizing Tecnotree as a major player in customer experience definitely ensures a sweet spot for us in terms of growing in the customer experience segment right across the globe. Finally, in terms of our own maturity in AI, we are seeing opportunities come up in the MEA market for AI, and we are also seeing opportunities in Europe and U.S., mainly with SI partners partnering with us for faster growth. Basically, this market map tells us that we are placing our bets strategically perfectly. We have done the right types of product investments. All today we need to do is to execute, and the market will lift us to better growth. This is a very important slide for Q3, and I would request the help of Indiresh to unpack this a bit more. We did not make the Q3 expected numbers in terms of EBIT. The Q3 number for EBIT was $3.6 million, compared to $4.3 million in Q3 of 2024. Sorry, $5 million of 2024. Obviously, the expectation in the market was a better EBIT, but there are reasons why we believe that it was prudent on our part to take the proper provisions that were necessary from a financial perspective. I will have Indiresh talk to it a little bit more on this slide. To me, what is really important is none of our customers have ever not paid us. I don't believe, even today, I think we are collecting receivables that are due from 2021 and 2022. Some customers, long-standing customers, have, you know, we have realized the revenue so late into the game. I don't believe that the revenues or the overdue receivables are not recognizable, but I will allow Indiresh to take this forward and explain a little bit more on the EBIT. Thank you, Padma. Thank you. Good morning, everyone. Thanks for joining this investor call. As Padma mentioned, I'll explain a little bit on the EBIT front. As you can see, in real terms, our EBITs are lower compared to the last year. Do we measure ourselves on a quarterly basis, or do we look at a longer period of YTD? When we look at the YTD numbers, we are given a guidance that we will be up by 2%, and this is on the real numbers, not on a constant currency. As you can see, compared to the last year's first nine months and the current year's first nine months, we are above what we had achieved in the last year, which means that we are in line to achieve what we have given a guidance. Now we'll look at what has impacted our EBIT in this year, and especially in this quarter, if you see. There are two trends I want to highlight. One is we have made certain provisions. As you know, provisions are not write-offs. Basically, it's a prudent, conservative way of accruing for any future haphazard. We have made a provision based on the geography in which my receivables are due and also the period for which it is outstanding. That calls for making prudent provisions, which we conservatively do, and also these provisions get reversed when we get paid for such outstandings. As Padma called out, we never had any bad debt so far in many years, but these are all accounting provisions which we need to make. Also, what is the other thing that is impacting our EBIT? If you look at it, the CapEx-to-sales trend, as you can see, last year, at this point, we were capitalizing about 18% as a percentage of sales to our CapEx. This year, consciously, we have brought it down to about 12%, which is the guidance we had given. If we had continued the same trend of last year, my EBIT for this whole year would have been higher by another $4 million if we had captured it. All these things also, we need to understand that there are certain things which are external, like foreign currency raising. If we had a constant EURUSD, probably our results would have been completely different. Probably I'd like to take it at a later slide. EBIT at this point, I would like to say that the provisions have impacted this. The lesser CapEx has impacted this, and currency fluctuations have impacted this. On a constant currency, we are higher than last year. On a guidance for the first nine months, we are higher than the last year. Back to you, Padma. Thank you. Thank you. Thank you, Indiresh. What is also important is that our overall fundamental strategy, I keep talking about the long-term profitable growth strategy of Tecnotree. If you look at the OpEx reductions that we commenced in 2024, they are still on. They are definitely giving us a good capability in terms of lowering the overall OpEx from the 2024 EUR 51.2 million to the projected less than EUR 46 million that we have projected for 2025. Our headcount is also carefully managed, and it's lower than what it was in 2024. It's not just pure accounting, but it's also certain operational considerations that we are making in the business. The use of AI to boost engineering velocity certainly is continuing to help us. Free cash flow. Cash is king. Consistent performance of delivering positive free cash flow for 18 consecutive months, I think, is a record performance for the company. This is clearly not a temporary phenomenon. This is structural, and I would have to say we have actually crossed the chasm to becoming a cash-generative compounder. Now we are in a mode where our operations generate cash enough for us to invest and grow and ensure we pay higher dividends on an annual basis. There are five long-term structural efficiencies, I think, in the business process that we brought forward over the last 18 months that have created this compelling story for Tecnotree. I already mentioned the OpEx reductions that we have benefited more than EUR 5 million in permanent savings. As Indiresh mentioned, the streamlining of our CapEx spend in line with the revenue growth. The cash collection, the Think Cash Do Cash initiative of ensuring that we are able to target and invoice and collect cash periodically and in right intervals, notify our customers who do not pay with proper dunning capabilities. The predictable ARR revenue and the subscription revenue that is improving the revenue collection capability and therefore the cash collection capability, the revenue recognition capability, and therefore the cash collection capability. Finally, we've brought in pricing discipline in terms of the deals that we go to market with. We are ensuring that we move away from non-profitable deals and do the right pricing especially in mature markets. That strategy definitely will improve our free cash flow going forward. We had a negative cash flow trend in 2022 of -EUR 4.8 million. It went to -EUR 7.7 million to a -EUR 1.8 million in year to date. We are tracking at EUR 3.2 million. I honestly believe we are on target to deliver a greater than EUR 4 million free cash flow. If we were to look at this in constant currency, what would it be? I mean, this would be a very different story, won't it be? Yes, if the dollar had remained equal to what it was at the end of last year, my free cash flow up to now would have been something like $8 million. That's what we were expecting, or more than what some of the analysts also had expected last year that we'll do $8 million in this year. We would have done it by nine months itself. That is something which is not in our control. Excellent. Okay, so this is my final slide. I think Tecnotree, I've laid out the story. We are poised for growth. The bottom line is we are playing in markets that amplify our growth, and we are growing. We have made the necessary foundational changes that we needed to make to create a moat and to take market share from our competitors. If you look at the BSS market, it's performing at 2.2%. We are growing at 4.8% in constant currency. We're taking market share away in mature markets from tier one competitors. You look at the cloud BSS business, we are partnering with hyperscalers and bundling our offerings with them to reduce the overall TCO. While the market is growing at 12%-14%, the majority of our deals are now cloud-based, and we are taking a good amount of market share at 62%. You look at the MVNO/MVNX spread, especially in mature markets of North America and the U.S., our order book is definitely clocking in a good amount of MVNO/MVNX opportunities at 35% when the market is moving below 10%. All of these key metrics tell us that we have made the right product choices. Our investment in TM Forum compliance has helped us definitely create a moat in the market and create attractiveness to our products in terms of its ease and speed of implementation. We have the right product mix. We have the right market. I shared with you all the market dynamics in the market map, and you can see that our ability to take market share in multiple areas across multiple geographies with multiple types of customers, enterprise customers, tier one operators, tier two telcos, etc., is a winning strategy. Our partner mix, whether it is partnering with HCL or Accenture, Tata, these definitely accelerate our growth. They bundle our products along with the services that they are able to add on, which increases scalability for us. They often take us to the Fortune 500, especially in mature markets of the Americas and Europe, which we would have otherwise never been able to enter. The business model of ARR and subscription is far more profitable, far more predictable, and we have the right team to execute this capability for Tecnotree. I honestly believe this is the right investment thesis for growth of this company. Thank you. Thank you. Thank you, Padma. I will take over from now. Yes, it's been a mixed quarter for us. We have done pretty well in some of the areas, especially on the cash. We are able to continue our free cash flow for the sixth consecutive quarter. The revenue, we had given a guidance of low to high single-digit growth, which I believe we are in pace to achieve that. EBIT margin, we had said that we'll be higher by 200 basis points. That's 2% as a percentage. That is also we are in line compared to the last year nine months we have done it. Cash, free cash flow, we are greater than $4 million. So far in the first nine months, we have achieved $3.2 million. Receivable days, we have 100-140. Currently, we are tracking around 154, and we should be able to achieve between 100-140 what we have given the guidance. CapEx to sales, 10%-12%. Last year, we were at 18%. From there, we are bringing it down to between 10%-12%. Dividend payout is something which we decided at the end of the year. Depending on the free cash flow, 10% of that is the aim to pay out as dividend and reduce the forex exposure to frontier countries by 10%-15% in three years. We are able to achieve it in a shorter time. Currently, I think we are at around 15%-16% in our thing. Now, I'll go a little bit deeper into the numbers in a deeper way. Net sales, as we already said, is at $52.8 million compared to $54 million. This is part of YTD. That's from January to September current year versus last year. In 2023, we were at $56.2 million, and in 2022, we were at $51.5 million. A small decrease in terms of the real currency, but in constant currency, there is an increase by about 4.8%. What we see as $52.8 million would have been $56.6 million if the currencies had remained static as it was at the beginning of the year. The EBIT is at $13.2 million compared to $13 million in the last year and $16 million in 2023 and $12.2 million in 2022. Current year, we are at an operating margin of 26% compared to 24% in 2024. Again, reiterating, the guidance is 2% margin enhancement. On the financial items, which mainly comprises of my exchange losses, current year we have lost $4.8 million on exchange losses against $3.2 million in 2024. In 2023, again, we had a huge loss in one of the geographies at $4.8 million. In 2022, we were at a smaller amount at $0.3 million. Exchange rate losses in financial this year is what is included in the financial items is $3.9 million, whereas last year it was $2.2 million. Based on the lower EBIT and the higher financial items and taxes, current year in the first nine months, we have clocked a net income of EUR 6 million compared to EUR 7.8 million, EUR 8.8 million, and EUR 8.3 million in the earlier years. The positive free cash flow, we have reiterating that again for the first nine months, is at EUR 3.2 million, whereas last year it was -EUR 2.2 million. The other highlight what we have spoken in this year has been the orders what we received is at EUR 90.5 million, which is one of the highest against EUR 54.2 million, EUR 62 million, and EUR 74 million in the earlier years. Because of the higher orders what we have received, the order backlog is at an all-time high of EUR 105 million compared to EUR 75 million, EUR 78 million, and EUR 76 million. The earnings per share is at EUR 0.35. Last year it was EUR 0.46. In 2023 and 2022, at a much, much lower one, but that is before the reverse split happened at EUR 0.03 and EUR 0.03. Now let's move into the next slide. This is purely only the quarterly numbers I'm going to speak about. Current quarter, as we have already seen, we clocked EUR 18.6 million compared to EUR 19 million in the last year, same quarter. Revenue removed at the constant level compared to the last year in a real currency. In constant currency, we were higher compared to the last year. The EBIT, again, EUR 3.6 million. As we already explained, we took certain additional provisioning, and we also made provisions for the third-party contracts at EUR 3.6 million. Last year it was EUR 5 million and EUR 6.2 million. Financial items, which is also an indication of how the currencies are moving, had more a stable time this year at EUR 0.4 million, which is a positive compared to -EUR 0.1 million in the previous year. Taxes are at EUR 6.6 million this time compared to EUR 0.8 million and EUR 1 million in the earlier years. Net income is at EUR 3.4 million compared to EUR 4.1 million and EUR 3.2 million in the earlier years. Cash flow, again, is slightly lower compared to the last year at EUR 12.4 million. Order received is also slightly lower because we had a lot of orders coming in the earlier period at EUR 16.5 million. Order backlog, as we explained at the end of the quarter, is EUR 1.5 million, and EPS is at EUR 0.2. One more point here is financial items positive due to forex movements. We had provided certain excess interest in the earlier period. After negotiation, we have brought it down, and we have taken that into our accounts this time. Next, I will go to the breakup of AR, which is one of the major asset items in the company. Currently, my AR stands at EUR 35.8 million. Out of that, we are already provided for EUR 5.7 million. Basically, as we said, the company has a policy based on the aging of the receivable plus the country in which these receivables are due. We do have a risk index, and based on that, these provisions are made. As a prudent accounting one, we would like to ensure that our receivables are adequately provided for. The other highlight I want to bring to the attention of the audience here is the DSO days. Our aim, again, is between 100-140 by end of the year. As you could see, in Q2 of this year, it was clocking at 175 days. It is highly oscillating given the cyclical nature of our collections. On the breakup of these receivables, as you can see, nearly 25% are more than 270 days. That is where our major concentration will be to ensure that we bring that down. The rest of the ones are more in line with our industry standards, where normal credit terms are 90+ days. Next, I move into the U.S. euro trend, 2024 and 2025, what we have understood from the experts. As you can see, euro has strengthened against USD substantially in the current year, more than 13% since the beginning of the year. Most of our contracts are in dollars. That has hit us. Probably, I don't think any one of us had estimated or guessed that the dollar would weaken so badly and in such a short time. We are slightly recovering from the forex impact of weakening the dollar against euro in hedge funds. Exposure to frontier countries, we have brought it down substantially, and growth in mature markets is expected to reduce the impact of currency risk over a period of time. As you can see, our volatile currency was about 27% in last year, and that is about 16% in the current year. Now I'll also go to the summary of our assets and liabilities. The intangible assets that are basically the products which are developed in-house, there is a slight increase in that. Our trade receivables are lower compared to last year's number, and also as at the end of December, by a slight amount. Other receivables are also trending at the same level of December, even though slightly lower than last year's September number. Because we are able to have more free cash flow and aggressive cash collections, my cash balance, which was about $17 million last year at this time, has gone up to $20.7 million in the current year. The shareholders' equity, because of the increase in our profit, has been added. It's at $96.3 million at this point of time compared to $89.5 million at the same time last year. There's no change in the compulsory convertible dividends, which still stands at $23.1 million. Other non-current liabilities, basically for the employees' retirement plans, the liability accounted is $4.2 million. Current interest-bearing liabilities, there is a slight increase compared to last year at $6.2 million. Trade payables have substantially come down from $15 million to about $10 million. Now, from our takeaway, I want to call out the following. One, as Padma pointed out, six quarters of free cash flow and on track to meet the FI guidance. Just at this point, in 2023, we had a -$7 million free cash flow. The last time we had a negative free cash flow was in Q1 2024. After that, six quarters, we are able to achieve a free cash flow positive. Increase in provisions in Q3 resulted in lower EBIT. Operating margin is comparatively lower, but again, we are on track to meet the guidance. Healthy underlying performance on all parameters, the guidance is on target. Order book at multi-year high and pipeline is stronger than ever. These are some of the takeaways from my side on the current financials. Thank you, Indiresh. I think we can move to a Q&A session. Thank you so much, Indiresh and Padma. Yes, I can confirm that we do have questions in the live chat, and we also had questions arriving just before the live event started that a few investors would not be able to join the webcast, but they will be watching the recording, and they submitted some questions. I'll start with those questions. I apologize if the questions' fonts will be too small for you, Padma and Indiresh, so I'm just going to read them out loud from the chat. You reported a 19% EBIT margin in Q3 2025, well below expectations. Your guidance of 200 basis points for 2025 would imply a very strong Q4, almost like the 61% EBIT margin from last year. That looks to be influenced by other items or timing effects. Would that be a correct assumption, and what exactly are those items? Okay, Padma, may I take? Yeah, I think it's best. Okay, thank you. Thank you, Thomas, for asking this question. Thanks to the investor who asked this. Yes, if you look at the guidance, the guidance is normally given for the whole year, and the guidance given is 2% or 200 basis points above the last year's margin. Last year, we had an EBIT margin of 24%, and current year, for the first three months, and current year, we have achieved 25% in the first three months, which means that we are on track with the guidance. This quarter was affected by a higher provisioning and accruing for third-party contracts for delivering large transformation deals, which we got, and also certain mobilization costs for ramping up the delivery in mature markets we need to incur this quarter. The margins can fluctuate based on the business seasonality and project lifecycle. Structurally, the company is focused on optimizing OpEx, improving CapEx-to-sales, and building long-term predictable ARR. Again, just to bring it to the point that normally last year also our Q4 EBIT was the highest in the whole year. Given that historical data and looking at the current year trend, we are confident of meeting the guidance what we are given. Thank you, Indiresh. The second question, you announced a surprise receivables provision in Q3. Can you please give more information on which region this relates to and why it was booked under other operating expenses rather than financial items if it's linked to trade receivables? Probably I'll take it again. Thanks. This is a great question. Thank you for asking this. I want to call out one thing. What we have made is a provision and not a write-off. That's the first point I want to call out. The provision is a standard thing which we make prudently based on a set accounting principles and a policy what we have. It depends on the country, it depends on the aging, and the country risk assessment, which we take it from the global websites. We have a matrix through which we arrive at what is the provision that is to be needed, and we take it. Again, as I repeated earlier, provision does not mean a write-off, and also it does not mean that the provisions will not be reversed. When we collect the money, automatically that gets reversed. Also, a write-off could be a financial item, but as far as the IFRS 9 is concerned, any of these provisions we make is an operating expense and not a financial expense, and that is how we prefer to disclose it, and that is how we show it as an impact on my EBIT. You talked about mobilization costs from new contracts in the U.S. and Europe. How big were they, and will they continue to weigh on margins? Do these costs currently contribute to revenue, or are they more like investments at this stage? Right now, the mobilization costs in Q3 are not really significant, so we have not calculated it separately. Typically, it's for onboarding teams in newer markets where we have digital transformation deliveries like U.S., Europe, MEA, South Africa, etc. These investments definitely support the project execution and then gradually generate ARR revenue in future quarters and years. It's really a strategic long-cycle contracts that require this kind of investments typically, and not quick revenue hits like in the past years. The payback will come with higher ARR over time because of the local delivery capability that we will be creating close to the customers that we serve in the markets that we serve. At a company level, I really believe that the significantly reduced OpEx compared to the last year will efficiently manage the resourcing requirements of these local geographies. The use of AI in our engineering velocity will improve productivity and also is already showing better cost management overall for us. With all of these factors built in, this is not a significant event. Thank you, Padma. You've had recurring foreign exchange hits this year. What's the remaining exposure, and can we expect the volatility to ease now? Okay, probably I can take it. Yeah, thank you. Thank you again, Thomas. Great question. The YTD forex loss, if you look at it, it's about $3.9 million, mainly coming from the hedge fund impact. In Q3, we had a small gain of $0.3 million. The frontier market share now is substantially lower at about 16%, down from 27% we discussed earlier. The local delivery and currency match contracts do create a sort of a natural hedge. However insignificant it could be, but still there is a natural hedge. The EURUSD outsized impact on forex loss this year. I don't think we had factored this when we planned last year. Forex loss is not structural. Large cost and revenues sit in USD. We expect markedly lower FX swings going into 2026 based on what we have seen in Q3 of this year. Thank you, Indiresh. Next one, the order book is strong at $105 million, but cash flow is still modest. When will this backlog start turning into visible revenue and cash generation? Probably I'll take, and then I can request Padma to add something. Absolutely. Yeah, these are all large transformation projects. These take the timeframe anywhere between 8 to 24 months, depending on the complexity of the particular customer. Revenue recognition is cyclical, with the license coming in earlier, followed by services through the course of deployment, and followed by the support, which is in ARR mode. Cash usually follows one or two quarters later due to the milestone payments. In Q3, free cash flow is about $1.2 million, as I called out, sixth straight positive quarter. I hope 2026-2027, we should have this uplift coming in the future years. Padma, you want to add anything? No, I think you've covered it all, and I think this is a record order book for the company. It speaks highly of the product stack and the standardization that we have achieved. Therefore, I would only say the more we improve the speed of delivery, the faster you can recognize the revenue and collect the cash. That's where our focus will be going forward. There are some similar questions, so I will take the first one. License sales collapsed to $0.1 million from $5.8 million year on year. What happened, and when do they come back? I had mentioned this even in the H1 results that the nature of our business is digital transformation, which involves three parts. It involves licenses to be dropped to the client, then modifications, integrations, testing, training, holding the hands of the customer to go through some transformations themselves, etc. happen, which we call as services revenue. That's followed by an ARR model through which they can add more features to the product stack or also manage the operations. We manage the operations for the clients. This is a cycle of our revenue pattern. Last quarter, we heavily booked licenses. This quarter, we have started delivering the services on top of those licenses in the various geographies. Therefore, we are seeing the transformation has moved to a deployment phase. Once the deliveries and services revenue rise and ebb, you will start seeing the ARR revenues going up as new customers come on board. This is the cyclical nature of our business and a normal pattern for most tier one telcos. We are working more and more towards a subscription-based model, especially with the smaller tier two telcos, MVNX kind of clients, and cloud SaaS model clients. That, I believe, will be where we will bundle both the licenses and the services into an ARR to improve revenue predictability and more timely cash collection. That will be the change in the mix of revenue that we will see in the upcoming years. Thank you, Padma. The $1 million per quarter free cash flow looks small. How much of that is operational versus timing or one-off movements? What is the role of new loans that the company took in Q3? Okay, thank you. Interesting question. Sorry to be repeated here, but I need to bring it to everybody's attention that for multiple years, we had a negative free cash flow culminating at about -$7 million in 2023. In 2024, beginning also the first quarter, we had something like -$4 million free cash flow. Thereafter, we changed the way we operate. There was an initiative last year called Think Cash Do Cash. All of that ensured that we started moving into the free cash flow positive region. This is the sixth quarter we are continuously on free cash flow positive. Is that a history? Is it a justification for the current performance? May not be. I want to also again bring one more parameter into this. Had the EURUSD parity remained the same, like at the beginning of the year, our cash flow for this first nine months, instead of $3.2 million, would have looked something like $8 million in USD terms. The operating cash flow YTD is about $14.8 million, which is about 15% higher than last year. There was a question on why do we take small-term loans, which is practically the way we look at it. We operate in multiple countries, and in certain geographies, we are expected to give certain performance guarantees to our customers. When we approach the banks for these guarantees, they insist that we do have a certain credit business with them, and also the same is given back to the bank as a security deposit for the guarantees they issue. This is more for an operational reason why we need to be associated with some of these large banks. As you can see, whenever I compute my free cash flow, I do not consider these loans into that. It's straight away from my operations as the free cash flow is computed as per the IFRS guidance. Thank you, Indiresh. If I could ask that the next question and answers, if you guys could keep answers to about 30 seconds to a minute, we could get through all the questions that are coming into the chat. We'll try. We'll try. It's great that, you know, there's a lot of interest regarding our company's results for the Q3. Let's keep them short in the future. Given the cost-based and provision, are you still comfortable with your guidance for growth in margin? I'll try to answer, you can add. Yes, we are ready to meet the guidance for the end of the year, as far as I go. We have a healthy order backlog, which is converting and a strong pipe. We expect Q4 to be a strong ending quarter for us, as always. As long as we can manage the execution risks and we are through the use of AI and other tools and further productization, our pipe conversion visibility is very, very good. Thank you. What are the key priorities for the last quarter of 2025? I'll answer this. I really believe it's converting the backlog into billings and cash. Collecting cash is the most important priority and focusing on the right projects that will ensure that we will invoice in the quarter and collect within the quarter. We also are focused on attracting global high-skilled talent across the board as we expand our market footprint, both in the area of AI and cloud. This is another key focus for the company. We need to manage our timelines. We need to deliver on time to make the invoicing and the cash collections also be on time. That will continue to be a delivery pressure on all the engineers in the company and a pressure on management as well. Finally, using AI-driven efficiencies to maintain cost controls and scaling into newer markets will also be an equal focus in Q4. Thank you, Padma. As revenue contribution from North America and Europe rises over the next years, how should we model the net impact on gross margins given deferring professional services, intensity, personal compensation levels? Very good question. This is what we deal with all the time. I really believe we have transformed Tecnotree from a solutions and projects company to a product company over the last five years. It's taken a lot of CapEx. It's taken a lot of effort from our teams, and the TM Forum standardization and adherence to standards has definitely helped create a moat. We have placed the right bets, as you have seen, whether it's in cloud, whether it's in AI. We acquired an AI company well ahead of the requirements for AI in telecoms, and we have created a moat. The productized stack and the partners today that we attract, especially the SIs, help us unlock more revenue in Fortune 500 companies in mature markets. I think we will intensify embedding AI into our tools to manage costs, increase productivity, more automation in the process, less reliance on professional services. All of these things will help us manage the OpEx well. Thank you. Shortly, what's your biggest competitive threat? I don't think I have a competition because I really believe our real risk is execution. I believe the tier one competitors are consolidating and pulling back from mid-market, so they are not really a threat for us. The network and OSS vendors have very limited opportunities because they have legacy systems and are bound by certain geopolitics. Our other competitors, which are tier two vendors, but we are out innovating them in AI and cloud-native and MVNO/MVNX capabilities, so they are not really a threat. The market is truly ours to lose. The only loss could be because of pure execution. We really need to focus on delivery, delivery, delivery on time. Thank you. How big is the share of work done by system integrators' personnel at delivering projects? Are system integrator billings Tecnotree or the customer directly? They vary from project to project. It really depends on the role that the SI plays in a given project. Sometimes they come into a management role. Sometimes we train them, and then they start delivering some of the services themselves. I believe that, you know, what was the, can I just look at the question again? The role of the SI continues to change, and I believe that some of the SIs bill directly, some of the SIs bill through us. The combination also continues to evolve based on client requirements. The partnerships are always strategic. Okay. You mentioned in the Q3 report that digital transformation projects in Europe and the Americas require you to incur mobilization costs towards hiring of local high-skilled talent to accelerate delivery. However, only two persons were added to your headcount in the other countries, from 37 persons to 39 persons. What type of costs do you mean with mobilization costs? There are many types of costs. In large transformation projects, there are also costs for people to travel to those locations, people who are highly skilled in the product execution, architects, product experts, managers, engineers, testers. Many of them have to travel, meet clients, work in the client environments, train clients to use our product, etc. The cost is not just a hiring mix. The cost is high-skilled labor and mobilization costs to deliver the project on time using the capabilities we already have. We also have some third-party and hardware costs, depending on what the client requires, whether a bundled cloud or an on-prem infrastructure depends on the nature of the engagement. Having a productized stack and AI-driven productivity definitely helps us reduce the overall cost spend, but there are definitely localized costs that evolve during the course of the project. Of course, maybe Indiresh knows, in some cases, because of the security requirements, we are even having to have some costs related to financing. Bank guarantees. Yes. Okay, thank you so much. There are questions that we'll have to wait until an Indiresh interview or other type of session. There's also, thankfully, questions that we have already answered in the questions earlier, so I will skip those, such as can you open up a bit more about which outstanding receivables you did take provisions for? There's also questions on the licensing. Great job answering those, but we are unfortunately getting out of time for the Q3 earnings call. We will be gathering all the questions that you guys have pulled in the open Q&A boxes. We will also be announcing the Q4 sometime on our investor pages once we have those dates confirmed. Regarding capital market days, we are exploring, so if you have any questions or suggestions for Tecnotree to join any European capital market days, please do ahead and do so on my behalf. If Indiresh and Padma would like to thank you for joining this Q3 call, and we hope to see and hear from you soon. Thank you, and any sign-off from Padma or Indiresh? Thank you, Thomas, and I'm looking forward to an excellent close of 2025. Thank you. Thank you. All right, thank you, everybody.

Speaker 1: With me today presenting are our CEO, Padma Ravichander, and CFO, Indiresh Vivekananda. We will be having the webcast here on Zoom, and we are opening the questions down below, which will be presented at the end of the call in the Q&A sections. Without further ado, CEO, Padma Ravichander, please go ahead. With me today presenting are our CEO, Padma Ravichander, and CFO, Indiresh Vivekananda. with me today presenting are our ceo padma ravichander and cfo indiresh vivekananda We will be having the webcast here on Zoom, and we are opening the questions down below, which will be presented at the end of the call in the Q&A sections. we will be having the webcast here on zoom and we are opening the questions down below which will be presented at the end of the call in the q&a sections Without further ado, CEO, Padma Ravichander, please go ahead. without further ado ceo padma ravichander please go ahead

Speaker 3: Good morning and welcome to our Q3 2025 results. I'm pleased to share our findings and update you on Tecnotree, along with Indiresh, our CFO, today. Q3 results continue to demonstrate our commitment to getting our long-term fundamentals as a company right. As a headline, I would say we have crossed the chasm of being a cash-burning company to a cash-generating growth story. I've been a CEO in Tecnotree now for almost 10 years, and I would say Tecnotree is a rare asymmetric opportunity. We are profitable, we generate cash, our revenues grow faster than other competitors in the market, which is fast consolidating, and we are also in the fastest growing market segments, which I will explain through the course of this presentation, especially in the areas of cloud, AI. However, we seem to be trading much below P/E multiples of our peer group in the market. Good morning and welcome to our Q3 2025 results. good morning and welcome to our q3 2025 results I'm pleased to share our findings and update you on Tecnotree, along with Indiresh , our CFO, today. i'm pleased to share our findings and update you on tecnotree along with indiresh our cfo today Q3 results continue to demonstrate our commitment to getting our long-term fundamentals as a company right. q3 results continue to demonstrate our commitment to getting our long-term fundamentals as a company right As a headline, I would say we have crossed the chasm of being a cash-burning company to a cash-generating growth story. as a headline i would say we have crossed the chasm of being a cash-burning company to a cash-generating growth story I've been a CEO in Tecnotree now for almost 10 years, and I would say Tecnotree is a rare asymmetric opportunity. i've been a ceo in tecnotree now for almost 10 years and i would say tecnotree is a rare asymmetric opportunity We are profitable, we generate cash, our revenues grow faster than other competitors in the market, which is fast consolidating, and we are also in the fastest growing market segments, which I will explain through the course of this presentation, especially in the areas of cloud, AI. we are profitable we generate cash our revenues grow faster than other competitors in the market which is fast consolidating and we are also in the fastest growing market segments which i will explain through the course of this presentation especially in the areas of cloud ai However, we seem to be trading much below P/E multiples of our peer group in the market. however we seem to be trading much below p/e multiples of our peer group in the market My commitment is to ensure, as we move forward with these structural changes we have made, that every year, year on year, the new revenue that we grow will create, going forward, and convert to faster cash. As we move to mature markets, it will accelerate our delivery capability with AI and ensure that we move more towards a steady revenue growth capability with an ARR subscription-based model in the mature markets. Now, when we look at the key metrics, as you can see, this is a sixth consecutive quarter where we have had a free positive cash flow: 2025, $3.2 million year to date. This is not just an ad hoc one-time event. I think in the history of the company, this has been a record continuous performance in terms of free cash flow. My commitment is to ensure, as we move forward with these structural changes we have made, that every year, year on year, the new revenue that we grow will create, going forward, and convert to faster cash. my commitment is to ensure as we move forward with these structural changes we have made that every year year on year the new revenue that we grow will create going forward and convert to faster cash As we move to mature markets, it will accelerate our delivery capability with AI and ensure that we move more towards a steady revenue growth capability with an ARR subscription-based model in the mature markets. as we move to mature markets it will accelerate our delivery capability with ai and ensure that we move more towards a steady revenue growth capability with an arr subscription-based model in the mature markets Now, when we look at the key metrics, as you can see, this is a sixth consecutive quarter where we have had a free positive cash flow: 2025, $3.2 million year to date. now when we look at the key metrics as you can see this is a sixth consecutive quarter where we have had a free positive cash flow 2025 $3.2 million year to date This is not just an ad hoc one-time event. this is not just an ad hoc one-time event I think in the history of the company, this has been a record continuous performance in terms of free cash flow. i think in the history of the company this has been a record continuous performance in terms of free cash flow It's actually a very structured process that we have created to generate cash from our operations. I'm proud to see our performance per guidance. In terms of revenue, we have certainly done well in constant currency. We grew by 4.8%. We will have to strip away the forex noise, as we are definitely growing faster than the flat BSS market when it comes to revenue growth in U.S. currency. Most of the markets that we sell are in U.S. dollars, and hence the forex devaluation has certainly had an impact on us, and hence the revenue in the quarter, of course, and for the year in euro terms, is a -2%. From my own personal perspective, I would like to see this to be a positive number, and I have an aspirational goal before the end of the year to make way to make this number positive as well. It's actually a very structured process that we have created to generate cash from our operations. it's actually a very structured process that we have created to generate cash from our operations I'm proud to see our performance per guidance. i'm proud to see our performance per guidance In terms of revenue, we have certainly done well in constant currency. in terms of revenue we have certainly done well in constant currency We grew by 4.8%. we grew by 4.8% We will have to strip away the forex noise, as we are definitely growing faster than the flat BSS market when it comes to revenue growth in U.S. currency. we will have to strip away the forex noise as we are definitely growing faster than the flat bss market when it comes to revenue growth in u.s currency Most of the markets that we sell are in U.S. dollars, and hence the forex devaluation has certainly had an impact on us, and hence the revenue in the quarter, of course, and for the year in euro terms, is a - 2%. most of the markets that we sell are in u.s dollars and hence the forex devaluation has certainly had an impact on us and hence the revenue in the quarter of course and for the year in euro terms is a - 2% From my own personal perspective, I would like to see this to be a positive number, and I have an aspirational goal before the end of the year to make way to make this number positive as well. from my own personal perspective i would like to see this to be a positive number and i have an aspirational goal before the end of the year to make way to make this number positive as well When it comes to EBIT in constant currency terms, again, we have done exceedingly well compared to 2024 at $13 million. We are at 14.9% or 15% growth. This demonstrates our underlying profitability. I will double-click on this along with Indiresh further in the presentation. Looking at these numbers, you can see that our fundamentals are right, and we are a growth story. The next set of metrics are equally important, and we are as per guidance in most cases. If you look at the ARR, it's up by 8%. This is definitely creating stickiness with our customers. This is a recurring revenue engine, which is predictable, which has high margin, and has a compounding effect as we deliver more projects and more managed operations for our customers year on year. When it comes to EBIT in constant currency terms, again, we have done exceedingly well compared to 2024 at $13 million. when it comes to ebit in constant currency terms again we have done exceedingly well compared to 2024 at $13 million We are at 14.9% or 15% growth. we are at 14.9% or 15% growth This demonstrates our underlying profitability. this demonstrates our underlying profitability I will double-click on this along with Indiresh further in the presentation. i will double-click on this along with indiresh further in the presentation Looking at these numbers, you can see that our fundamentals are right, and we are a growth story. looking at these numbers you can see that our fundamentals are right and we are a growth story The next set of metrics are equally important, and we are as per guidance in most cases. the next set of metrics are equally important and we are as per guidance in most cases If you look at the ARR, it's up by 8%. if you look at the arr it's up by 8% This is definitely creating stickiness with our customers. this is definitely creating stickiness with our customers This is a recurring revenue engine, which is predictable, which has high margin, and has a compounding effect as we deliver more projects and more managed operations for our customers year on year. this is a recurring revenue engine which is predictable which has high margin and has a compounding effect as we deliver more projects and more managed operations for our customers year on year The real story here is definitely the order backlog: 40% up to $105.5 million, the strongest that the company has ever seen in its history so far. This is not just pipeline. This is actual orders booked that will convert in the next 12 months-36 months into revenue, along with more ARR. On the CapEx-to-sales, I think that we are doing well in terms of guiding that towards 12%, as we have said in the market, from the 19% of 2024. We are getting far more capital efficient as we use and adopt more AI in terms of improving our productivity and engineering velocity. While the DSO days are tracking a little under the guidance, we are certainly moving in the right direction in terms of the DSO days. The real story here is definitely the order backlog: 40% up to $105.5 million, the strongest that the company has ever seen in its history so far. the real story here is definitely the order backlog 40% up to $105.5 million the strongest that the company has ever seen in its history so far This is not just pipeline. this is not just pipeline This is actual orders booked that will convert in the next 12 months- 36 months into revenue, along with more ARR. this is actual orders booked that will convert in the next 12 months- 36 months into revenue along with more arr On the CapEx-to-sales, I think that we are doing well in terms of guiding that towards 12%, as we have said in the market, from the 19% of 2024. on the capex-to-sales i think that we are doing well in terms of guiding that towards 12% as we have said in the market from the 19% of 2024 We are getting far more capital efficient as we use and adopt more AI in terms of improving our productivity and engineering velocity. we are getting far more capital efficient as we use and adopt more ai in terms of improving our productivity and engineering velocity While the DSO days are tracking a little under the guidance, we are certainly moving in the right direction in terms of the DSO days. while the dso days are tracking a little under the guidance we are certainly moving in the right direction in terms of the dso days The bottom line on the numbers year to date would sum it up as the metrics are right, ARR is up, CapEx is down, order backlog, and collections are improving. This is definitely creating long-term shareholder value. Now, let's look at the detailed performance of Q3. We got three new deals in this quarter, creating multiple geography expansions from a market perspective. What is really important this quarter is definitely the five Goal IV s. The Goal IV of a tier-one telco in the U.S. is extremely important to unlock and upsell more capability of our product stack into this particular operator in the U.S., but it also creates enough capability for us to go after other tier-one telcos in the U.S. market. Ooredoo Oman billing Goal IV and modernization in a growth market gave them a 3x performance improvement on their billing systems. The bottom line on the numbers year to date would sum it up as the metrics are right, ARR is up, CapEx is down, order backlog, and collections are improving. the bottom line on the numbers year to date would sum it up as the metrics are right arr is up capex is down order backlog and collections are improving This is definitely creating long-term shareholder value. this is definitely creating long-term shareholder value Now, let's look at the detailed performance of Q3. now let's look at the detailed performance of q3 We got three new deals in this quarter, creating multiple geography expansions from a market perspective. we got three new deals in this quarter creating multiple geography expansions from a market perspective What is really important this quarter is definitely the five Goal IV s. what is really important this quarter is definitely the five goal iv s The Goal IV of a tier-one telco in the U.S. is extremely important to unlock and upsell more capability of our product stack into this particular operator in the U.S., but it also creates enough capability for us to go after other tier-one telcos in the U.S. market. the goal iv of a tier-one telco in the u.s is extremely important to unlock and upsell more capability of our product stack into this particular operator in the u.s but it also creates enough capability for us to go after other tier-one telcos in the u.s market Ooredoo Oman billing Goal IV and modernization in a growth market gave them a 3x performance improvement on their billing systems. ooredoo oman billing goal iv and modernization in a growth market gave them a 3x performance improvement on their billing systems The eSIM Goal IV in a European market is a hot product for MVNX capability and will create business expansion for Tecnotree globally. Finally, the tier one telcos that went live are not just pilot projects in MTN or in the Asia-Pac region. They are real production deployments in tier one operations. As you can see, our key contributors for ARR growth continue to grow, and our stickiness with these customers in terms of expanding our footprint, giving them greater support to monetize revenue on the platform continues. What is really compelling this quarter is the industry recognitions, and I would say two are exceedingly important. The first one is the Gartner recognition, where Gartner recognizes our AI capability to move from a niche player to a visionary. For Tecnotree, this is a feather on our cap, mainly because these are important validations in three ways. The eSIM Goal IV in a European market is a hot product for MVNX capability and will create business expansion for Tecnotree globally. the esim goal iv in a european market is a hot product for mvnx capability and will create business expansion for tecnotree globally Finally, the tier one telcos that went live are not just pilot projects in MTN or in the Asia-Pac region. finally the tier one telcos that went live are not just pilot projects in mtn or in the asia-pac region They are real production deployments in tier one operations. they are real production deployments in tier one operations As you can see, our key contributors for ARR growth continue to grow, and our stickiness with these customers in terms of expanding our footprint, giving them greater support to monetize revenue on the platform continues. as you can see our key contributors for arr growth continue to grow and our stickiness with these customers in terms of expanding our footprint giving them greater support to monetize revenue on the platform continues What is really compelling this quarter is the industry recognitions, and I would say two are exceedingly important. what is really compelling this quarter is the industry recognitions and i would say two are exceedingly important The first one is the Gartner recognition, where Gartner recognizes our AI capability to move from a niche player to a visionary. the first one is the gartner recognition where gartner recognizes our ai capability to move from a niche player to a visionary For Tecnotree, this is a feather on our cap, mainly because these are important validations in three ways. for tecnotree this is a feather on our cap mainly because these are important validations in three ways First of all, many tier one telcos in mature markets look to Gartner for references. Secondly, it also helps us to address more cloud and more AI capabilities for tier two markets and MVNX players globally. Finally, the AI capability that we have brought in attracts SIs to work closer with us, increasing our market share and also expanding our footprint into newer markets. This quarter, we have continued to also grow the product features. Today, we stand out of the box with more than 4,500 features in our stack. We definitely continue to deliver a lot of large-scale AI transformation capabilities to tier one telcos, and the billing improvement definitely is opening doors for new opportunities in brownfield operators. Now, let's look at the details in terms of the revenue guidance. Let me unpack this a bit more. First of all, many tier one telcos in mature markets look to Gartner for references. first of all many tier one telcos in mature markets look to gartner for references Secondly, it also helps us to address more cloud and more AI capabilities for tier two markets and MVNX players globally. secondly it also helps us to address more cloud and more ai capabilities for tier two markets and mvnx players globally Finally, the AI capability that we have brought in attracts SI s to work closer with us, increasing our market share and also expanding our footprint into newer markets. finally the ai capability that we have brought in attracts si s to work closer with us increasing our market share and also expanding our footprint into newer markets This quarter, we have continued to also grow the product features. this quarter we have continued to also grow the product features Today, we stand out of the box with more than 4,500 features in our stack. today we stand out of the box with more than 4,500 features in our stack We definitely continue to deliver a lot of large-scale AI transformation capabilities to tier one telcos, and the billing improvement definitely is opening doors for new opportunities in brownfield operators. we definitely continue to deliver a lot of large-scale ai transformation capabilities to tier one telcos and the billing improvement definitely is opening doors for new opportunities in brownfield operators Now, let's look at the details in terms of the revenue guidance. now let's look at the details in terms of the revenue guidance Let me unpack this a bit more. let me unpack this a bit more In constant currency, our revenue actually is right on the guidance, up 5.4%, but in real euro terms, it's down by 2%, mainly because of the dollar headwinds that we have faced over the course of the whole year. I'm sure Indiresh will talk a little bit more about the U.S. dollar fluctuations, which was, while it appears temporary, seems to have continued across the first half especially. What is really critical to understand is the mix of the revenue. If you look at quarter three, while the license revenues are down, and we had predicted because we won several new orders and delivered the licenses in the first half of this year, in the second half of the year, the deliveries for these customers have commenced, and therefore the delivery revenues have increased. In constant currency, our revenue actually is right on the guidance, up 5.4%, but in real euro terms, it's down by 2%, mainly because of the dollar headwinds that we have faced over the course of the whole year. in constant currency our revenue actually is right on the guidance up 5.4% but in real euro terms it's down by 2% mainly because of the dollar headwinds that we have faced over the course of the whole year I'm sure Indiresh will talk a little bit more about the U.S. dollar fluctuations, which was, while it appears temporary, seems to have continued across the first half especially. i'm sure indiresh will talk a little bit more about the u.s dollar fluctuations which was while it appears temporary seems to have continued across the first half especially What is really critical to understand is the mix of the revenue. what is really critical to understand is the mix of the revenue If you look at quarter three, while the license revenues are down, and we had predicted because we won several new orders and delivered the licenses in the first half of this year, in the second half of the year, the deliveries for these customers have commenced, and therefore the delivery revenues have increased. if you look at quarter three while the license revenues are down and we had predicted because we won several new orders and delivered the licenses in the first half of this year in the second half of the year the deliveries for these customers have commenced and therefore the delivery revenues have increased We have also shown a very good positive increase on ARR revenue, which is exactly what we need in terms of front-loading delivery, and services revenue will convert into higher ARR margins in 6 months-12 months. To me, the key takeaway is the fact that the revenue diversification to ARR and the subscription-based models are working for the company. There are definitely improvements in collecting revenue because of AI. Finally, as you can see, we are winning in mature markets, both in terms of revenue in the regions of Europe and Americas, but also in terms of order backlog within these regions. These markets are definitely lower risk, higher payment growth, and higher margin markets. When I look a little bit deeper into the revenue mix, I'd like to go backward and look at the last five years of performance. It's historical data, but it does tell a story. We have also shown a very good positive increase on ARR revenue, which is exactly what we need in terms of front-loading delivery, and services revenue will convert into higher ARR margins in 6 months- 12 months. we have also shown a very good positive increase on arr revenue which is exactly what we need in terms of front-loading delivery and services revenue will convert into higher arr margins in 6 months- 12 months To me, the key takeaway is the fact that the revenue diversification to ARR and the subscription-based models are working for the company. to me the key takeaway is the fact that the revenue diversification to arr and the subscription-based models are working for the company There are definitely improvements in collecting revenue because of AI. there are definitely improvements in collecting revenue because of ai Finally, as you can see, we are winning in mature markets, both in terms of revenue in the regions of Europe and Americas, but also in terms of order backlog within these regions. finally as you can see we are winning in mature markets both in terms of revenue in the regions of europe and americas but also in terms of order backlog within these regions These markets are definitely lower risk, higher payment growth, and higher margin markets. these markets are definitely lower risk higher payment growth and higher margin markets When I look a little bit deeper into the revenue mix, I'd like to go backward and look at the last five years of performance. when i look a little bit deeper into the revenue mix i'd like to go backward and look at the last five years of performance It's historical data, but it does tell a story. it's historical data but it does tell a story You can see over the last five years, we have added more than 14 new customers. The requirement at the time was that tier one legacy customers, Claro and MTN, wanted a better mix and a better portfolio of customers who use Tecnotree products. We took this really seriously into our journey, and we added 14 new customers, all of which have today more potential to cross-sell and upsell. If you look at the ARR revenue, revenue was up in 2020, and then it took a slight dip and then moved back up again. That's mainly because of changing the customer profile and adding new customers, which meant unlocking new licensed revenue and then moving up these customers into more DevOps and ARR subscription-based models over the course of 2023 and 2024. We also did certain other strategic things in the last five years. You can see over the last five years, we have added more than 14 new customers. you can see over the last five years we have added more than 14 new customers The requirement at the time was that tier one legacy customers, Claro and MTN, wanted a better mix and a better portfolio of customers who use Tecnotree products. the requirement at the time was that tier one legacy customers claro and mtn wanted a better mix and a better portfolio of customers who use tecnotree products We took this really seriously into our journey, and we added 14 new customers, all of which have today more potential to cross-sell and upsell. we took this really seriously into our journey and we added 14 new customers all of which have today more potential to cross-sell and upsell If you look at the ARR revenue, revenue was up in 2020, and then it took a slight dip and then moved back up again. if you look at the arr revenue revenue was up in 2020 and then it took a slight dip and then moved back up again That's mainly because of changing the customer profile and adding new customers, which meant unlocking new licensed revenue and then moving up these customers into more DevOps and ARR subscription-based models over the course of 2023 and 2024. that's mainly because of changing the customer profile and adding new customers which meant unlocking new licensed revenue and then moving up these customers into more devops and arr subscription-based models over the course of 2023 and 2024 We also did certain other strategic things in the last five years. we also did certain other strategic things in the last five years In order to enter mature markets, we had to conform to certain regulatory requirements. We retired some very long-standing customers that were giving us a lot of ARR revenue in the 2021-2022 timeframe. That also reflects in terms of the dip that we took in ARR. We have sufficiently worked hard to replace those customers with new opportunities with our current portfolio of customers. It's also important to note that we added seven new customers already this year. I wanted to take a little bit of time to really talk about the market positioning map and the five-year trends that we are seeing in the market and why the Tecnotree long-term strategy is a growth strategy, and we are extremely well positioned in the market. In order to enter mature markets, we had to conform to certain regulatory requirements. in order to enter mature markets we had to conform to certain regulatory requirements We retired some very long-standing customers that were giving us a lot of ARR revenue in the 2021-2022 timeframe. we retired some very long-standing customers that were giving us a lot of arr revenue in the 2021-2022 timeframe That also reflects in terms of the dip that we took in ARR. that also reflects in terms of the dip that we took in arr We have sufficiently worked hard to replace those customers with new opportunities with our current portfolio of customers. we have sufficiently worked hard to replace those customers with new opportunities with our current portfolio of customers It's also important to note that we added seven new customers already this year. it's also important to note that we added seven new customers already this year I wanted to take a little bit of time to really talk about the market positioning map and the five-year trends that we are seeing in the market and why the Tecnotree long-term strategy is a growth strategy, and we are extremely well positioned in the market. i wanted to take a little bit of time to really talk about the market positioning map and the five-year trends that we are seeing in the market and why the tecnotree long-term strategy is a growth strategy and we are extremely well positioned in the market If you look at the first graph, you can see that the opportunities for greenfield and brownfield, and the highest amount of greenfield opportunities are definitely in Africa and MEA. Tecnotree's presence in these markets is long-term. We have a long-term engagement model. We have a lot of reference operators who are tier one, and therefore our ability to take on more digital transformations for greenfield definitely exists. We also see that there are new brownfield opportunities in North America and Europe. These are large transformation opportunities that will create new ARR capability for us and new revenue growth opportunities, the first one of which we unlocked in the U.S. market last year. In terms of the MVNO, MVNX business, we entered the European market to take market share in the MVNO business. If you look at the first graph, you can see that the opportunities for greenfield and brownfield, and the highest amount of greenfield opportunities are definitely in Africa and MEA. if you look at the first graph you can see that the opportunities for greenfield and brownfield and the highest amount of greenfield opportunities are definitely in africa and mea Tecnotree's presence in these markets is long-term. tecnotree's presence in these markets is long-term We have a long-term engagement model. we have a long-term engagement model We have a lot of reference operators who are tier one, and therefore our ability to take on more digital transformations for greenfield definitely exists. we have a lot of reference operators who are tier one and therefore our ability to take on more digital transformations for greenfield definitely exists We also see that there are new brownfield opportunities in North America and Europe. we also see that there are new brownfield opportunities in north america and europe These are large transformation opportunities that will create new ARR capability for us and new revenue growth opportunities, the first one of which we unlocked in the U.S. market last year. these are large transformation opportunities that will create new arr capability for us and new revenue growth opportunities the first one of which we unlocked in the u.s market last year In terms of the MVNO, MVNX business, we entered the European market to take market share in the MVNO business. in terms of the mvno mvnx business we entered the european market to take market share in the mvno business As you can see, in terms of market maps, Europe and North America are the fastest growing MVNO, MVNX markets, and Tecnotree is well positioned in terms of its product stack to take market share in these markets. In terms of CapEx and OpEx, again, Europe is more tuned towards an OpEx model, more an OpEx model, along with the U.S. This subscription-based model definitely means better margin, higher ARR revenue opportunities for Tecnotree. In terms of the BSS product stack itself, the highest call for action is in the transformation of the billing and the customer experience capabilities. If you look at the IDC recognition as a major player, recognizing Tecnotree as a major player in customer experience definitely ensures a sweet spot for us in terms of growing in the customer experience segment right across the globe. As you can see, in terms of market maps, Europe and North America are the fastest growing MVNO, MVNX markets, and Tecnotree is well positioned in terms of its product stack to take market share in these markets. as you can see in terms of market maps europe and north america are the fastest growing mvno mvnx markets and tecnotree is well positioned in terms of its product stack to take market share in these markets In terms of CapEx and OpEx, again, Europe is more tuned towards an OpEx model, more an OpEx model, along with the U.S. in terms of capex and opex again europe is more tuned towards an opex model more an opex model along with the u.s This subscription-based model definitely means better margin, higher ARR revenue opportunities for Tecnotree. this subscription-based model definitely means better margin higher arr revenue opportunities for tecnotree In terms of the BSS product stack itself, the highest call for action is in the transformation of the billing and the customer experience capabilities. in terms of the bss product stack itself the highest call for action is in the transformation of the billing and the customer experience capabilities If you look at the IDC recognition as a major player, recognizing Tecnotree as a major player in customer experience definitely ensures a sweet spot for us in terms of growing in the customer experience segment right across the globe. if you look at the idc recognition as a major player recognizing tecnotree as a major player in customer experience definitely ensures a sweet spot for us in terms of growing in the customer experience segment right across the globe Finally, in terms of our own maturity in AI, we are seeing opportunities come up in the MEA market for AI, and we are also seeing opportunities in Europe and U.S., mainly with SI partners partnering with us for faster growth. Basically, this market map tells us that we are placing our bets strategically perfectly. We have done the right types of product investments. All today we need to do is to execute, and the market will lift us to better growth. This is a very important slide for Q3, and I would request the help of Indiresh to unpack this a bit more. We did not make the Q3 expected numbers in terms of EBIT. The Q3 number for EBIT was $3.6 million, compared to $4.3 million in Q3 of 2024. Sorry, $5 million of 2024. Finally, in terms of our own maturity in AI, we are seeing opportunities come up in the MEA market for AI, and we are also seeing opportunities in Europe and U.S., mainly with SI partners partnering with us for faster growth. finally in terms of our own maturity in ai we are seeing opportunities come up in the mea market for ai and we are also seeing opportunities in europe and u.s mainly with si partners partnering with us for faster growth Basically, this market map tells us that we are placing our bets strategically perfectly. basically this market map tells us that we are placing our bets strategically perfectly We have done the right types of product investments. we have done the right types of product investments All today we need to do is to execute, and the market will lift us to better growth. all today we need to do is to execute and the market will lift us to better growth This is a very important slide for Q3, and I would request the help of Indiresh to unpack this a bit more. this is a very important slide for q3 and i would request the help of indiresh to unpack this a bit more We did not make the Q3 expected numbers in terms of EBIT. we did not make the q3 expected numbers in terms of ebit The Q3 number for EBIT was $3.6 million, compared to $4.3 million in Q3 of 2024. the q3 number for ebit was $3.6 million compared to $4.3 million in q3 of 2024 Sorry, $5 million of 2024. sorry $5 million of 2024 Obviously, the expectation in the market was a better EBIT, but there are reasons why we believe that it was prudent on our part to take the proper provisions that were necessary from a financial perspective. I will have Indiresh talk to it a little bit more on this slide. To me, what is really important is none of our customers have ever not paid us. I don't believe, even today, I think we are collecting receivables that are due from 2021 and 2022. Some customers, long-standing customers, have, you know, we have realized the revenue so late into the game. I don't believe that the revenues or the overdue receivables are not recognizable, but I will allow Indiresh to take this forward and explain a little bit more on the EBIT. Obviously, the expectation in the market was a better EBIT, but there are reasons why we believe that it was prudent on our part to take the proper provisions that were necessary from a financial perspective. obviously the expectation in the market was a better ebit but there are reasons why we believe that it was prudent on our part to take the proper provisions that were necessary from a financial perspective I will have Indiresh talk to it a little bit more on this slide. i will have indiresh talk to it a little bit more on this slide To me, what is really important is none of our customers have ever not paid us. to me what is really important is none of our customers have ever not paid us I don't believe, even today, I think we are collecting receivables that are due from 2021 and 2022. i don't believe even today i think we are collecting receivables that are due from 2021 and 2022 Some customers, long-standing customers, have, you know, we have realized the revenue so late into the game. some customers long-standing customers have you know we have realized the revenue so late into the game I don't believe that the revenues or the overdue receivables are not recognizable, but I will allow Indiresh to take this forward and explain a little bit more on the EBIT. i don't believe that the revenues or the overdue receivables are not recognizable but i will allow indiresh to take this forward and explain a little bit more on the ebit

Speaker 2: Thank you, Padma. Thank you. Good morning, everyone. Thanks for joining this investor call. As Padma mentioned, I'll explain a little bit on the EBIT front. As you can see, in real terms, our EBITs are lower compared to the last year. Do we measure ourselves on a quarterly basis, or do we look at a longer period of YTD? When we look at the YTD numbers, we are given a guidance that we will be up by 2%, and this is on the real numbers, not on a constant currency. As you can see, compared to the last year's first nine months and the current year's first nine months, we are above what we had achieved in the last year, which means that we are in line to achieve what we have given a guidance. Thank you, Padma. thank you padma Thank you. thank you Good morning, everyone. good morning everyone Thanks for joining this investor call. thanks for joining this investor call As Padma mentioned, I'll explain a little bit on the EBIT front. as padma mentioned i'll explain a little bit on the ebit front As you can see, in real terms, our EBITs are lower compared to the last year. as you can see in real terms our ebits are lower compared to the last year Do we measure ourselves on a quarterly basis, or do we look at a longer period of YTD? do we measure ourselves on a quarterly basis or do we look at a longer period of ytd When we look at the YTD numbers, we are given a guidance that we will be up by 2%, and this is on the real numbers, not on a constant currency. when we look at the ytd numbers we are given a guidance that we will be up by 2% and this is on the real numbers not on a constant currency As you can see, compared to the last year's first nine months and the current year's first nine months, we are above what we had achieved in the last year, which means that we are in line to achieve what we have given a guidance. as you can see compared to the last year's first nine months and the current year's first nine months we are above what we had achieved in the last year which means that we are in line to achieve what we have given a guidance Now we'll look at what has impacted our EBIT in this year, and especially in this quarter, if you see. There are two trends I want to highlight. One is we have made certain provisions. As you know, provisions are not write-offs. Basically, it's a prudent, conservative way of accruing for any future haphazard. We have made a provision based on the geography in which my receivables are due and also the period for which it is outstanding. That calls for making prudent provisions, which we conservatively do, and also these provisions get reversed when we get paid for such outstandings. As Padma called out, we never had any bad debt so far in many years, but these are all accounting provisions which we need to make. Also, what is the other thing that is impacting our EBIT? Now we'll look at what has impacted our EBIT in this year, and especially in this quarter, if you see. now we'll look at what has impacted our ebit in this year and especially in this quarter if you see There are two trends I want to highlight. there are two trends i want to highlight One is we have made certain provisions. one is we have made certain provisions As you know, provisions are not write-offs. as you know provisions are not write-offs Basically, it's a prudent, conservative way of accruing for any future haphazard. basically it's a prudent conservative way of accruing for any future haphazard We have made a provision based on the geography in which my receivables are due and also the period for which it is outstanding. we have made a provision based on the geography in which my receivables are due and also the period for which it is outstanding That calls for making prudent provisions, which we conservatively do, and also these provisions get reversed when we get paid for such outstandings. that calls for making prudent provisions which we conservatively do and also these provisions get reversed when we get paid for such outstandings As Padma called out, we never had any bad debt so far in many years, but these are all accounting provisions which we need to make. as padma called out we never had any bad debt so far in many years but these are all accounting provisions which we need to make Also, what is the other thing that is impacting our EBIT? also what is the other thing that is impacting our ebit If you look at it, the CapEx-to-sales trend, as you can see, last year, at this point, we were capitalizing about 18% as a percentage of sales to our CapEx. This year, consciously, we have brought it down to about 12%, which is the guidance we had given. If we had continued the same trend of last year, my EBIT for this whole year would have been higher by another $4 million if we had captured it. All these things also, we need to understand that there are certain things which are external, like foreign currency raising. If we had a constant EURUSD, probably our results would have been completely different. Probably I'd like to take it at a later slide. EBIT at this point, I would like to say that the provisions have impacted this. The lesser CapEx has impacted this, and currency fluctuations have impacted this. If you look at it, the CapEx-to-sales trend, as you can see, last year, at this point, we were capitalizing about 18% as a percentage of sales to our CapEx. if you look at it the capex-to-sales trend as you can see last year at this point we were capitalizing about 18% as a percentage of sales to our capex This year, consciously, we have brought it down to about 12%, which is the guidance we had given. this year consciously we have brought it down to about 12% which is the guidance we had given If we had continued the same trend of last year, my EBIT for this whole year would have been higher by another $4 million if we had captured it. if we had continued the same trend of last year my ebit for this whole year would have been higher by another $4 million if we had captured it All these things also, we need to understand that there are certain things which are external, like foreign currency raising. all these things also we need to understand that there are certain things which are external like foreign currency raising If we had a constant EUR USD, probably our results would have been completely different. if we had a constant eur usd probably our results would have been completely different Probably I'd like to take it at a later slide. probably i'd like to take it at a later slide EBIT at this point, I would like to say that the provisions have impacted this. ebit at this point i would like to say that the provisions have impacted this The lesser CapEx has impacted this, and currency fluctuations have impacted this. the lesser capex has impacted this and currency fluctuations have impacted this On a constant currency, we are higher than last year. On a guidance for the first nine months, we are higher than the last year. Back to you, Padma. On a constant currency, we are higher than last year. on a constant currency we are higher than last year On a guidance for the first nine months, we are higher than the last year. on a guidance for the first nine months we are higher than the last year Back to you, Padma. back to you padma

Speaker 3: Thank you. Thank you. Thank you, Indiresh. What is also important is that our overall fundamental strategy, I keep talking about the long-term profitable growth strategy of Tecnotree. If you look at the OpEx reductions that we commenced in 2024, they are still on. They are definitely giving us a good capability in terms of lowering the overall OpEx from the 2024 EUR 51.2 million to the projected less than EUR 46 million that we have projected for 2025. Our headcount is also carefully managed, and it's lower than what it was in 2024. It's not just pure accounting, but it's also certain operational considerations that we are making in the business. The use of AI to boost engineering velocity certainly is continuing to help us. Free cash flow. Cash is king. Thank you. thank you Thank you. thank you Thank you, Indiresh. thank you indiresh What is also important is that our overall fundamental strategy, I keep talking about the long-term profitable growth strategy of Tecnotree. what is also important is that our overall fundamental strategy i keep talking about the long-term profitable growth strategy of tecnotree If you look at the OpEx reductions that we commenced in 2024, they are still on. if you look at the opex reductions that we commenced in 2024 they are still on They are definitely giving us a good capability in terms of lowering the overall OpEx from the 2024 EUR 51.2 million to the projected less than EUR 46 million that we have projected for 2025. they are definitely giving us a good capability in terms of lowering the overall opex from the 2024 eur 51.2 million to the projected less than eur 46 million that we have projected for 2025 Our headcount is also carefully managed, and it's lower than what it was in 2024. our headcount is also carefully managed and it's lower than what it was in 2024 It's not just pure accounting, but it's also certain operational considerations that we are making in the business. it's not just pure accounting but it's also certain operational considerations that we are making in the business The use of AI to boost engineering velocity certainly is continuing to help us. the use of ai to boost engineering velocity certainly is continuing to help us Free cash flow. free cash flow Cash is king. cash is king Consistent performance of delivering positive free cash flow for 18 consecutive months, I think, is a record performance for the company. This is clearly not a temporary phenomenon. This is structural, and I would have to say we have actually crossed the chasm to becoming a cash-generative compounder. Now we are in a mode where our operations generate cash enough for us to invest and grow and ensure we pay higher dividends on an annual basis. There are five long-term structural efficiencies, I think, in the business process that we brought forward over the last 18 months that have created this compelling story for Tecnotree. I already mentioned the OpEx reductions that we have benefited more than EUR 5 million in permanent savings. As Indiresh mentioned, the streamlining of our CapEx spend in line with the revenue growth. Consistent performance of delivering positive free cash flow for 18 consecutive months, I think, is a record performance for the company. consistent performance of delivering positive free cash flow for 18 consecutive months i think is a record performance for the company This is clearly not a temporary phenomenon. this is clearly not a temporary phenomenon This is structural, and I would have to say we have actually crossed the chasm to becoming a cash-generative compounder. this is structural and i would have to say we have actually crossed the chasm to becoming a cash-generative compounder Now we are in a mode where our operations generate cash enough for us to invest and grow and ensure we pay higher dividends on an annual basis. now we are in a mode where our operations generate cash enough for us to invest and grow and ensure we pay higher dividends on an annual basis There are five long-term structural efficiencies, I think, in the business process that we brought forward over the last 18 months that have created this compelling story for Tecnotree. there are five long-term structural efficiencies i think in the business process that we brought forward over the last 18 months that have created this compelling story for tecnotree I already mentioned the OpEx reductions that we have benefited more than EUR 5 million in permanent savings. i already mentioned the opex reductions that we have benefited more than eur 5 million in permanent savings As Indiresh mentioned, the streamlining of our CapEx spend in line with the revenue growth. as indiresh mentioned the streamlining of our capex spend in line with the revenue growth The cash collection, the Think Cash Do Cash initiative of ensuring that we are able to target and invoice and collect cash periodically and in right intervals, notify our customers who do not pay with proper dunning capabilities. The predictable ARR revenue and the subscription revenue that is improving the revenue collection capability and therefore the cash collection capability, the revenue recognition capability, and therefore the cash collection capability. Finally, we've brought in pricing discipline in terms of the deals that we go to market with. We are ensuring that we move away from non-profitable deals and do the right pricing especially in mature markets. That strategy definitely will improve our free cash flow going forward. We had a negative cash flow trend in 2022 of -EUR 4.8 million. It went to -EUR 7.7 million to a -EUR 1.8 million in year to date. We are tracking at EUR 3.2 million. The cash collection, the Think Cash Do Cash initiative of ensuring that we are able to target and invoice and collect cash periodically and in right intervals, notify our customers who do not pay with proper dunning capabilities. the cash collection the think cash do cash initiative of ensuring that we are able to target and invoice and collect cash periodically and in right intervals notify our customers who do not pay with proper dunning capabilities The predictable ARR revenue and the subscription revenue that is improving the revenue collection capability and therefore the cash collection capability, the revenue recognition capability, and therefore the cash collection capability. the predictable arr revenue and the subscription revenue that is improving the revenue collection capability and therefore the cash collection capability the revenue recognition capability and therefore the cash collection capability Finally, we've brought in pricing discipline in terms of the deals that we go to market with. finally we've brought in pricing discipline in terms of the deals that we go to market with We are ensuring that we move away from non-profitable deals and do the right pricing especially in mature markets. we are ensuring that we move away from non-profitable deals and do the right pricing especially in mature markets That strategy definitely will improve our free cash flow going forward. that strategy definitely will improve our free cash flow going forward We had a negative cash flow trend in 2022 of - EUR 4.8 million. we had a negative cash flow trend in 2022 of - eur 4.8 million It went to - EUR 7.7 million to a - EUR 1.8 million in year to date. it went to - eur 7.7 million to a - eur 1.8 million in year to date We are tracking at EUR 3.2 million. we are tracking at eur 3.2 million I honestly believe we are on target to deliver a greater than EUR 4 million free cash flow. If we were to look at this in constant currency, what would it be? I mean, this would be a very different story, won't it be? I honestly believe we are on target to deliver a greater than EUR 4 million free cash flow. i honestly believe we are on target to deliver a greater than eur 4 million free cash flow If we were to look at this in constant currency, what would it be? if we were to look at this in constant currency what would it be i I mean, this would be a very different story, won't it be? i mean this would be a very different story won't it be

Speaker 2: Yes, if the dollar had remained equal to what it was at the end of last year, my free cash flow up to now would have been something like $8 million. That's what we were expecting, or more than what some of the analysts also had expected last year that we'll do $8 million in this year. We would have done it by nine months itself. That is something which is not in our control. Yes, if the dollar had remained equal to what it was at the end of last year, my free cash flow up to now would have been something like $8 million. yes if the dollar had remained equal to what it was at the end of last year my free cash flow up to now would have been something like $8 million That's what we were expecting, or more than what some of the analysts also had expected last year that we'll do $8 million in this year. that's what we were expecting or more than what some of the analysts also had expected last year that we'll do $8 million in this year We would have done it by nine months itself. we would have done it by nine months itself That is something which is not in our control. that is something which is not in our control

Speaker 3: Excellent. Okay, so this is my final slide. I think Tecnotree, I've laid out the story. We are poised for growth. The bottom line is we are playing in markets that amplify our growth, and we are growing. We have made the necessary foundational changes that we needed to make to create a moat and to take market share from our competitors. If you look at the BSS market, it's performing at 2.2%. We are growing at 4.8% in constant currency. We're taking market share away in mature markets from tier one competitors. You look at the cloud BSS business, we are partnering with hyperscalers and bundling our offerings with them to reduce the overall TCO. While the market is growing at 12%-14%, the majority of our deals are now cloud-based, and we are taking a good amount of market share at 62%. Excellent. excellent Okay, so this is my final slide. okay so this is my final slide I think Tecnotree, I've laid out the story. i think tecnotree i've laid out the story We are poised for growth. we are poised for growth The bottom line is we are playing in markets that amplify our growth, and we are growing. the bottom line is we are playing in markets that amplify our growth and we are growing We have made the necessary foundational changes that we needed to make to create a moat and to take market share from our competitors. we have made the necessary foundational changes that we needed to make to create a moat and to take market share from our competitors If you look at the BSS market, it's performing at 2.2%. if you look at the bss market it's performing at 2.2% We are growing at 4.8% in constant currency. we are growing at 4.8% in constant currency We're taking market share away in mature markets from tier one competitors. we're taking market share away in mature markets from tier one competitors You look at the cloud BSS business, we are partnering with hyperscalers and bundling our offerings with them to reduce the overall TCO. you look at the cloud bss business we are partnering with hyperscalers and bundling our offerings with them to reduce the overall tco While the market is growing at 12%- 14%, the majority of our deals are now cloud-based, and we are taking a good amount of market share at 62%. while the market is growing at 12%- 14% the majority of our deals are now cloud-based and we are taking a good amount of market share at 62% You look at the MVNO/MVNX spread, especially in mature markets of North America and the U.S., our order book is definitely clocking in a good amount of MVNO/MVNX opportunities at 35% when the market is moving below 10%. All of these key metrics tell us that we have made the right product choices. Our investment in TM Forum compliance has helped us definitely create a moat in the market and create attractiveness to our products in terms of its ease and speed of implementation. We have the right product mix. We have the right market. I shared with you all the market dynamics in the market map, and you can see that our ability to take market share in multiple areas across multiple geographies with multiple types of customers, enterprise customers, tier one operators, tier two telcos, etc., is a winning strategy. You look at the MVNO/MVNX spread, especially in mature markets of North America and the U.S., our order book is definitely clocking in a good amount of MVNO/MVNX opportunities at 35% when the market is moving below 10%. you look at the mvno/mvnx spread especially in mature markets of north america and the u.s our order book is definitely clocking in a good amount of mvno/mvnx opportunities at 35% when the market is moving below 10% All of these key metrics tell us that we have made the right product choices. all of these key metrics tell us that we have made the right product choices Our investment in TM Forum compliance has helped us definitely create a moat in the market and create attractiveness to our products in terms of its ease and speed of implementation. our investment in tm forum compliance has helped us definitely create a moat in the market and create attractiveness to our products in terms of its ease and speed of implementation We have the right product mix. we have the right product mix We have the right market. we have the right market I shared with you all the market dynamics in the market map, and you can see that our ability to take market share in multiple areas across multiple geographies with multiple types of customers, enterprise customers, tier one operators, tier two telcos, etc., is a winning strategy. i shared with you all the market dynamics in the market map and you can see that our ability to take market share in multiple areas across multiple geographies with multiple types of customers enterprise customers tier one operators tier two telcos etc is a winning strategy Our partner mix, whether it is partnering with HCL or Accenture, Tata, these definitely accelerate our growth. They bundle our products along with the services that they are able to add on, which increases scalability for us. They often take us to the Fortune 500, especially in mature markets of the Americas and Europe, which we would have otherwise never been able to enter. The business model of ARR and subscription is far more profitable, far more predictable, and we have the right team to execute this capability for Tecnotree. I honestly believe this is the right investment thesis for growth of this company. Thank you. Our partner mix, whether it is partnering with HCL or Accenture, Tata , these definitely accelerate our growth. our partner mix whether it is partnering with hcl or accenture tata these definitely accelerate our growth They bundle our products along with the services that they are able to add on, which increases scalability for us. they bundle our products along with the services that they are able to add on which increases scalability for us They often take us to the Fortune 500, especially in mature markets of the Americas and Europe, which we would have otherwise never been able to enter. they often take us to the fortune 500 especially in mature markets of the americas and europe which we would have otherwise never been able to enter The business model of ARR and subscription is far more profitable, far more predictable, and we have the right team to execute this capability for Tecnotree. the business model of arr and subscription is far more profitable far more predictable and we have the right team to execute this capability for tecnotree I honestly believe this is the right investment thesis for growth of this company. i honestly believe this is the right investment thesis for growth of this company Thank you. thank you

Speaker 2: Thank you. Thank you, Padma. I will take over from now. Yes, it's been a mixed quarter for us. We have done pretty well in some of the areas, especially on the cash. We are able to continue our free cash flow for the sixth consecutive quarter. The revenue, we had given a guidance of low to high single-digit growth, which I believe we are in pace to achieve that. EBIT margin, we had said that we'll be higher by 200 basis points. That's 2% as a percentage. That is also we are in line compared to the last year nine months we have done it. Cash, free cash flow, we are greater than $4 million. So far in the first nine months, we have achieved $3.2 million. Receivable days, we have 100-140. Thank you. thank you Thank you, Padma. thank you padma I will take over from now. i will take over from now Yes, it's been a mixed quarter for us. yes it's been a mixed quarter for us We have done pretty well in some of the areas, especially on the cash. we have done pretty well in some of the areas especially on the cash We are able to continue our free cash flow for the sixth consecutive quarter. we are able to continue our free cash flow for the sixth consecutive quarter The revenue, we had given a guidance of low to high single-digit growth, which I believe we are in pace to achieve that. the revenue we had given a guidance of low to high single-digit growth which i believe we are in pace to achieve that EBIT margin, we had said that we'll be higher by 200 basis points. ebit margin we had said that we'll be higher by 200 basis points That's 2% as a percentage. that's 2% as a percentage That is also we are in line compared to the last year nine months we have done it. that is also we are in line compared to the last year nine months we have done it Cash, free cash flow, we are greater than $4 million. cash free cash flow we are greater than $4 million So far in the first nine months, we have achieved $3.2 million. so far in the first nine months we have achieved $3.2 million Receivable days, we have 100- 140. receivable days we have 100- 140 Currently, we are tracking around 154, and we should be able to achieve between 100-140 what we have given the guidance. CapEx to sales, 10%-12%. Last year, we were at 18%. From there, we are bringing it down to between 10%-12%. Dividend payout is something which we decided at the end of the year. Depending on the free cash flow, 10% of that is the aim to pay out as dividend and reduce the forex exposure to frontier countries by 10%-15% in three years. We are able to achieve it in a shorter time. Currently, I think we are at around 15%-16% in our thing. Now, I'll go a little bit deeper into the numbers in a deeper way. Net sales, as we already said, is at $52.8 million compared to $54 million. This is part of YTD. Currently, we are tracking around 154, and we should be able to achieve between 100- 140 what we have given the guidance. currently we are tracking around 154 and we should be able to achieve between 100- 140 what we have given the guidance CapEx to sales, 10%- 12%. capex to sales 10%- 12% Last year, we were at 18%. last year we were at 18% From there, we are bringing it down to between 10%- 12%. from there we are bringing it down to between 10%- 12% Dividend payout is something which we decided at the end of the year. dividend payout is something which we decided at the end of the year Depending on the free cash flow, 10% of that is the aim to pay out as dividend and reduce the forex exposure to frontier countries by 10%- 15% in three years. depending on the free cash flow 10% of that is the aim to pay out as dividend and reduce the forex exposure to frontier countries by 10%- 15% in three years We are able to achieve it in a shorter time. we are able to achieve it in a shorter time Currently, I think we are at around 15%- 16% in our thing. currently i think we are at around 15%- 16% in our thing Now, I'll go a little bit deeper into the numbers in a deeper way. now i'll go a little bit deeper into the numbers in a deeper way Net sales, as we already said, is at $52.8 million compared to $54 million. net sales as we already said is at $52.8 million compared to $54 million This is part of YTD. this is part of ytd That's from January to September current year versus last year. In 2023, we were at $56.2 million, and in 2022, we were at $51.5 million. A small decrease in terms of the real currency, but in constant currency, there is an increase by about 4.8%. What we see as $52.8 million would have been $56.6 million if the currencies had remained static as it was at the beginning of the year. The EBIT is at $13.2 million compared to $13 million in the last year and $16 million in 2023 and $12.2 million in 2022. Current year, we are at an operating margin of 26% compared to 24% in 2024. Again, reiterating, the guidance is 2% margin enhancement. On the financial items, which mainly comprises of my exchange losses, current year we have lost $4.8 million on exchange losses against $3.2 million in 2024. That's from January to September current year versus last year. that's from january to september current year versus last year In 2023, we were at $56.2 million, and in 2022, we were at $51.5 million. in 2023 we were at $56.2 million and in 2022 we were at $51.5 million A small decrease in terms of the real currency, but in constant currency, there is an increase by about 4.8%. a small decrease in terms of the real currency but in constant currency there is an increase by about 4.8% What we see as $52.8 million would have been $56.6 million if the currencies had remained static as it was at the beginning of the year. what we see as $52.8 million would have been $56.6 million if the currencies had remained static as it was at the beginning of the year The EBIT is at $13.2 million compared to $13 million in the last year and $16 million in 2023 and $12.2 million in 2022. the ebit is at $13.2 million compared to $13 million in the last year and $16 million in 2023 and $12.2 million in 2022 Current year, we are at an operating margin of 26% compared to 24% in 2024. current year we are at an operating margin of 26% compared to 24% in 2024 Again, reiterating, the guidance is 2% margin enhancement. again reiterating the guidance is 2% margin enhancement On the financial items, which mainly comprises of my exchange losses, current year we have lost $4.8 million on exchange losses against $3.2 million in 2024. on the financial items which mainly comprises of my exchange losses current year we have lost $4.8 million on exchange losses against $3.2 million in 2024 In 2023, again, we had a huge loss in one of the geographies at $4.8 million. In 2022, we were at a smaller amount at $0.3 million. Exchange rate losses in financial this year is what is included in the financial items is $3.9 million, whereas last year it was $2.2 million. Based on the lower EBIT and the higher financial items and taxes, current year in the first nine months, we have clocked a net income of EUR 6 million compared to EUR 7.8 million, EUR 8.8 million, and EUR 8.3 million in the earlier years. The positive free cash flow, we have reiterating that again for the first nine months, is at EUR 3.2 million, whereas last year it was -EUR 2.2 million. In 2023, again, we had a huge loss in one of the geographies at $4.8 million. in 2023 again we had a huge loss in one of the geographies at $4.8 million In 2022, we were at a smaller amount at $0.3 million. in 2022 we were at a smaller amount at $0.3 million Exchange rate losses in financial this year is what is included in the financial items is $3.9 million, whereas last year it was $2.2 million. exchange rate losses in financial this year is what is included in the financial items is $3.9 million whereas last year it was $2.2 million Based on the lower EBIT and the higher financial items and taxes, current year in the first nine months, we have clocked a net income of EUR 6 million compared to EUR 7.8 million, EUR 8.8 million, and EUR 8.3 million in the earlier years. based on the lower ebit and the higher financial items and taxes current year in the first nine months we have clocked a net income of eur 6 million compared to eur 7.8 million eur 8.8 million and eur 8.3 million in the earlier years The positive free cash flow, we have reiterating that again for the first nine months, is at EUR 3.2 million, whereas last year it was -EUR 2.2 million. the positive free cash flow we have reiterating that again for the first nine months is at eur 3.2 million whereas last year it was -eur 2.2 million The other highlight what we have spoken in this year has been the orders what we received is at EUR 90.5 million, which is one of the highest against EUR 54.2 million, EUR 62 million, and EUR 74 million in the earlier years. Because of the higher orders what we have received, the order backlog is at an all-time high of EUR 105 million compared to EUR 75 million, EUR 78 million, and EUR 76 million. The earnings per share is at EUR 0.35. Last year it was EUR 0.46. In 2023 and 2022, at a much, much lower one, but that is before the reverse split happened at EUR 0.03 and EUR 0.03. Now let's move into the next slide. This is purely only the quarterly numbers I'm going to speak about. Current quarter, as we have already seen, we clocked EUR 18.6 million compared to EUR 19 million in the last year, same quarter. The other highlight what we have spoken in this year has been the orders what we received is at EUR 90.5 million, which is one of the highest against EUR 54.2 million, EUR 62 million, and EUR 74 million in the earlier years. the other highlight what we have spoken in this year has been the orders what we received is at eur 90.5 million which is one of the highest against eur 54.2 million eur 62 million and eur 74 million in the earlier years Because of the higher orders what we have received, the order backlog is at an all-time high of EUR 105 million compared to EUR 75 million, EUR 78 million, and EUR 76 million. because of the higher orders what we have received the order backlog is at an all-time high of eur 105 million compared to eur 75 million eur 78 million and eur 76 million The earnings per share is at EUR 0.35. the earnings per share is at eur 0.35 Last year it was EUR 0.46. last year it was eur 0.46 In 2023 and 2022, at a much, much lower one, but that is before the reverse split happened at EUR 0.03 and EUR 0.03. in 2023 and 2022 at a much much lower one but that is before the reverse split happened at eur 0.03 and eur 0.03 Now let's move into the next slide. now let's move into the next slide This is purely only the quarterly numbers I'm going to speak about. this is purely only the quarterly numbers i'm going to speak about Current quarter, as we have already seen, we clocked EUR 18.6 million compared to EUR 19 million in the last year, same quarter. current quarter as we have already seen we clocked eur 18.6 million compared to eur 19 million in the last year same quarter Revenue removed at the constant level compared to the last year in a real currency. In constant currency, we were higher compared to the last year. The EBIT, again, EUR 3.6 million. As we already explained, we took certain additional provisioning, and we also made provisions for the third-party contracts at EUR 3.6 million. Last year it was EUR 5 million and EUR 6.2 million. Financial items, which is also an indication of how the currencies are moving, had more a stable time this year at EUR 0.4 million, which is a positive compared to -EUR 0.1 million in the previous year. Taxes are at EUR 6.6 million this time compared to EUR 0.8 million and EUR 1 million in the earlier years. Net income is at EUR 3.4 million compared to EUR 4.1 million and EUR 3.2 million in the earlier years. Cash flow, again, is slightly lower compared to the last year at EUR 12.4 million. Revenue removed at the constant level compared to the last year in a real currency. revenue removed at the constant level compared to the last year in a real currency In constant currency, we were higher compared to the last year. in constant currency we were higher compared to the last year The EBIT, again, EUR 3.6 million. the ebit again, eur 3.6 million As we already explained, we took certain additional provisioning, and we also made provisions for the third-party contracts at EUR 3.6 million. as we already explained we took certain additional provisioning and we also made provisions for the third-party contracts at eur 3.6 million Last year it was EUR 5 million and EUR 6.2 million. last year it was eur 5 million and eur 6.2 million Financial items, which is also an indication of how the currencies are moving, had more a stable time this year at EUR 0.4 million, which is a positive compared to -EUR 0.1 million in the previous year. financial items which is also an indication of how the currencies are moving had more a stable time this year at eur 0.4 million which is a positive compared to -eur 0.1 million in the previous year Taxes are at EUR 6.6 million this time compared to EUR 0.8 million and EUR 1 million in the earlier years. taxes are at eur 6.6 million this time compared to eur 0.8 million and eur 1 million in the earlier years Net income is at EUR 3.4 million compared to EUR 4.1 million and EUR 3.2 million in the earlier years. net income is at eur 3.4 million compared to eur 4.1 million and eur 3.2 million in the earlier years Cash flow, again, is slightly lower compared to the last year at EUR 12.4 million. cash flow again is slightly lower compared to the last year at eur 12.4 million Order received is also slightly lower because we had a lot of orders coming in the earlier period at EUR 16.5 million. Order backlog, as we explained at the end of the quarter, is EUR 1.5 million, and EPS is at EUR 0.2. One more point here is financial items positive due to forex movements. We had provided certain excess interest in the earlier period. After negotiation, we have brought it down, and we have taken that into our accounts this time. Next, I will go to the breakup of AR, which is one of the major asset items in the company. Currently, my AR stands at EUR 35.8 million. Out of that, we are already provided for EUR 5.7 million. Basically, as we said, the company has a policy based on the aging of the receivable plus the country in which these receivables are due. Order received is also slightly lower because we had a lot of orders coming in the earlier period at EUR 16.5 million. order received is also slightly lower because we had a lot of orders coming in the earlier period at eur 16.5 million Order backlog, as we explained at the end of the quarter, is EUR 1.5 million, and EPS is at EUR 0.2. order backlog as we explained at the end of the quarter is eur 1.5 million and eps is at eur 0.2 One more point here is financial items positive due to forex movements. one more point here is financial items positive due to forex movements We had provided certain excess interest in the earlier period. we had provided certain excess interest in the earlier period After negotiation, we have brought it down, and we have taken that into our accounts this time. after negotiation we have brought it down and we have taken that into our accounts this time Next, I will go to the breakup of AR, which is one of the major asset items in the company. next i will go to the breakup of ar which is one of the major asset items in the company Currently, my AR stands at EUR 35.8 million. currently my ar stands at eur 35.8 million Out of that, we are already provided for EUR 5.7 million. out of that we are already provided for eur 5.7 million Basically, as we said, the company has a policy based on the aging of the receivable plus the country in which these receivables are due. basically as we said the company has a policy based on the aging of the receivable plus the country in which these receivables are due We do have a risk index, and based on that, these provisions are made. As a prudent accounting one, we would like to ensure that our receivables are adequately provided for. The other highlight I want to bring to the attention of the audience here is the DSO days. Our aim, again, is between 100-140 by end of the year. As you could see, in Q2 of this year, it was clocking at 175 days. It is highly oscillating given the cyclical nature of our collections. On the breakup of these receivables, as you can see, nearly 25% are more than 270 days. That is where our major concentration will be to ensure that we bring that down. The rest of the ones are more in line with our industry standards, where normal credit terms are 90+ days. We do have a risk index, and based on that, these provisions are made. we do have a risk index and based on that these provisions are made As a prudent accounting one, we would like to ensure that our receivables are adequately provided for. as a prudent accounting one we would like to ensure that our receivables are adequately provided for The other highlight I want to bring to the attention of the audience here is the DSO days. the other highlight i want to bring to the attention of the audience here is the dso days Our aim, again, is between 100- 140 by end of the year. our aim again, is between 100- 140 by end of the year As you could see, in Q2 of this year, it was clocking at 175 days. as you could see in q2 of this year it was clocking at 175 days It is highly oscillating given the cyclical nature of our collections. it is highly oscillating given the cyclical nature of our collections On the breakup of these receivables, as you can see, nearly 25% are more than 270 days. on the breakup of these receivables as you can see nearly 25% are more than 270 days That is where our major concentration will be to ensure that we bring that down. that is where our major concentration will be to ensure that we bring that down The rest of the ones are more in line with our industry standards, where normal credit terms are 90+ days. the rest of the ones are more in line with our industry standards where normal credit terms are 90+ days Next, I move into the U.S. euro trend, 2024 and 2025, what we have understood from the experts. As you can see, euro has strengthened against USD substantially in the current year, more than 13% since the beginning of the year. Most of our contracts are in dollars. That has hit us. Probably, I don't think any one of us had estimated or guessed that the dollar would weaken so badly and in such a short time. We are slightly recovering from the forex impact of weakening the dollar against euro in hedge funds. Exposure to frontier countries, we have brought it down substantially, and growth in mature markets is expected to reduce the impact of currency risk over a period of time. As you can see, our volatile currency was about 27% in last year, and that is about 16% in the current year. Next, I move into the U.S. euro trend, 2024 and 2025, what we have understood from the experts. next i move into the u.s euro trend 2024 and 2025 what we have understood from the experts As you can see, euro has strengthened against USD substantially in the current year, more than 13% since the beginning of the year. as you can see euro has strengthened against usd substantially in the current year more than 13% since the beginning of the year Most of our contracts are in dollars. most of our contracts are in dollars That has hit us. that has hit us Probably, I don't think any one of us had estimated or guessed that the dollar would weaken so badly and in such a short time. probably i don't think any one of us had estimated or guessed that the dollar would weaken so badly and in such a short time We are slightly recovering from the forex impact of weakening the dollar against euro in hedge funds. we are slightly recovering from the forex impact of weakening the dollar against euro in hedge funds Exposure to frontier countries, we have brought it down substantially, and growth in mature markets is expected to reduce the impact of currency risk over a period of time. exposure to frontier countries we have brought it down substantially and growth in mature markets is expected to reduce the impact of currency risk over a period of time As you can see, our volatile currency was about 27% in last year, and that is about 16% in the current year. as you can see our volatile currency was about 27% in last year and that is about 16% in the current year Now I'll also go to the summary of our assets and liabilities. The intangible assets that are basically the products which are developed in-house, there is a slight increase in that. Our trade receivables are lower compared to last year's number, and also as at the end of December, by a slight amount. Other receivables are also trending at the same level of December, even though slightly lower than last year's September number. Because we are able to have more free cash flow and aggressive cash collections, my cash balance, which was about $17 million last year at this time, has gone up to $20.7 million in the current year. The shareholders' equity, because of the increase in our profit, has been added. It's at $96.3 million at this point of time compared to $89.5 million at the same time last year. Now I'll also go to the summary of our assets and liabilities. now i'll also go to the summary of our assets and liabilities The intangible assets that are basically the products which are developed in-house, there is a slight increase in that. the intangible assets that are basically the products which are developed in-house there is a slight increase in that Our trade receivables are lower compared to last year's number, and also as at the end of December, by a slight amount. our trade receivables are lower compared to last year's number and also as at the end of december by a slight amount Other receivables are also trending at the same level of December, even though slightly lower than last year's September number. other receivables are also trending at the same level of december even though slightly lower than last year's september number Because we are able to have more free cash flow and aggressive cash collections, my cash balance, which was about $17 million last year at this time, has gone up to $20.7 million in the current year. because we are able to have more free cash flow and aggressive cash collections my cash balance which was about $17 million last year at this time has gone up to $20.7 million in the current year The shareholders' equity, because of the increase in our profit, has been added. the shareholders' equity because of the increase in our profit has been added It's at $96.3 million at this point of time compared to $89.5 million at the same time last year. it's at $96.3 million at this point of time compared to $89.5 million at the same time last year There's no change in the compulsory convertible dividends, which still stands at $23.1 million. Other non-current liabilities, basically for the employees' retirement plans, the liability accounted is $4.2 million. Current interest-bearing liabilities, there is a slight increase compared to last year at $6.2 million. Trade payables have substantially come down from $15 million to about $10 million. Now, from our takeaway, I want to call out the following. One, as Padma pointed out, six quarters of free cash flow and on track to meet the FI guidance. Just at this point, in 2023, we had a -$7 million free cash flow. The last time we had a negative free cash flow was in Q1 2024. After that, six quarters, we are able to achieve a free cash flow positive. Increase in provisions in Q3 resulted in lower EBIT. There's no change in the compulsory convertible dividends, which still stands at $23.1 million. there's no change in the compulsory convertible dividends which still stands at $23.1 million Other non-current liabilities, basically for the employees' retirement plans, the liability accounted is $4.2 million. other non-current liabilities basically for the employees' retirement plans the liability accounted is $4.2 million Current interest-bearing liabilities, there is a slight increase compared to last year at $6.2 million. current interest-bearing liabilities there is a slight increase compared to last year at $6.2 million Trade payables have substantially come down from $15 million to about $10 million. trade payables have substantially come down from $15 million to about $10 million Now, from our takeaway, I want to call out the following. now from our takeaway i want to call out the following One, as Padma pointed out, six quarters of free cash flow and on track to meet the FI guidance. one as padma pointed out six quarters of free cash flow and on track to meet the fi guidance Just at this point, in 2023, we had a - $7 million free cash flow. just at this point in 2023 we had a - $7 million free cash flow The last time we had a negative free cash flow was in Q1 2024. the last time we had a negative free cash flow was in q1 2024 After that, six quarters, we are able to achieve a free cash flow positive. after that six quarters we are able to achieve a free cash flow positive Increase in provisions in Q3 resulted in lower EBIT. increase in provisions in q3 resulted in lower ebit Operating margin is comparatively lower, but again, we are on track to meet the guidance. Healthy underlying performance on all parameters, the guidance is on target. Order book at multi-year high and pipeline is stronger than ever. These are some of the takeaways from my side on the current financials. Operating margin is comparatively lower, but again, we are on track to meet the guidance. operating margin is comparatively lower but again we are on track to meet the guidance Healthy underlying performance on all parameters, the guidance is on target. healthy underlying performance on all parameters the guidance is on target Order book at multi-year high and pipeline is stronger than ever. order book at multi-year high and pipeline is stronger than ever These are some of the takeaways from my side on the current financials. these are some of the takeaways from my side on the current financials

Speaker 3: Thank you, Indiresh. I think we can move to a Q&A session. Thank you, Indiresh. thank you indiresh I think we can move to a Q&A session. i think we can move to a q&a session

Speaker 1: Thank you so much, Indiresh and Padma. Yes, I can confirm that we do have questions in the live chat, and we also had questions arriving just before the live event started that a few investors would not be able to join the webcast, but they will be watching the recording, and they submitted some questions. I'll start with those questions. I apologize if the questions' fonts will be too small for you, Padma and Indiresh, so I'm just going to read them out loud from the chat. You reported a 19% EBIT margin in Q3 2025, well below expectations. Your guidance of 200 basis points for 2025 would imply a very strong Q4, almost like the 61% EBIT margin from last year. That looks to be influenced by other items or timing effects. Would that be a correct assumption, and what exactly are those items? Thank you so much, Indiresh and Padma. thank you so much indiresh and padma Yes, I can confirm that we do have questions in the live chat, and we also had questions arriving just before the live event started that a few investors would not be able to join the webcast, but they will be watching the recording, and they submitted some questions. yes i can confirm that we do have questions in the live chat and we also had questions arriving just before the live event started that a few investors would not be able to join the webcast but they will be watching the recording and they submitted some questions I'll start with those questions. i'll start with those questions I apologize if the questions' fonts will be too small for you, Padma and Indiresh, so I'm just going to read them out loud from the chat. i apologize if the questions' fonts will be too small for you padma and indiresh so i'm just going to read them out loud from the chat You reported a 19% EBIT margin in Q3 2025, well below expectations. you reported a 19% ebit margin in q3 2025 well below expectations Your guidance of 200 basis points for 2025 would imply a very strong Q4, almost like the 61% EBIT margin from last year. your guidance of 200 basis points for 2025 would imply a very strong q4 almost like the 61% ebit margin from last year That looks to be influenced by other items or timing effects. that looks to be influenced by other items or timing effects Would that be a correct assumption, and what exactly are those items? would that be a correct assumption and what exactly are those items

Speaker 2: Okay, Padma, may I take? Okay, Padma, may I take? okay padma may i take

Speaker 3: Yeah, I think it's best. Yeah, I think it's best. yeah i think it's best

Speaker 2: Okay, thank you. Thank you, Thomas, for asking this question. Thanks to the investor who asked this. Yes, if you look at the guidance, the guidance is normally given for the whole year, and the guidance given is 2% or 200 basis points above the last year's margin. Last year, we had an EBIT margin of 24%, and current year, for the first three months, and current year, we have achieved 25% in the first three months, which means that we are on track with the guidance. This quarter was affected by a higher provisioning and accruing for third-party contracts for delivering large transformation deals, which we got, and also certain mobilization costs for ramping up the delivery in mature markets we need to incur this quarter. The margins can fluctuate based on the business seasonality and project lifecycle. Okay, thank you. okay thank you Thank you, Thomas, for asking this question. thank you thomas for asking this question Thanks to the investor who asked this. thanks to the investor who asked this Yes, if you look at the guidance, the guidance is normally given for the whole year, and the guidance given is 2% or 200 basis points above the last year's margin. yes if you look at the guidance the guidance is normally given for the whole year and the guidance given is 2% or 200 basis points above the last year's margin Last year, we had an EBIT margin of 24%, and current year, for the first three months, and current year, we have achieved 25% in the first three months, which means that we are on track with the guidance. last year we had an ebit margin of 24% and current year for the first three months and current year we have achieved 25% in the first three months which means that we are on track with the guidance This quarter was affected by a higher provisioning and accruing for third-party contracts for delivering large transformation deals, which we got, and also certain mobilization costs for ramping up the delivery in mature markets we need to incur this quarter. this quarter was affected by a higher provisioning and accruing for third-party contracts for delivering large transformation deals which we got and also certain mobilization costs for ramping up the delivery in mature markets we need to incur this quarter The margins can fluctuate based on the business seasonality and project lifecycle. the margins can fluctuate based on the business seasonality and project lifecycle Structurally, the company is focused on optimizing OpEx, improving CapEx-to-sales, and building long-term predictable ARR. Again, just to bring it to the point that normally last year also our Q4 EBIT was the highest in the whole year. Given that historical data and looking at the current year trend, we are confident of meeting the guidance what we are given. Structurally, the company is focused on optimizing OpEx, improving CapEx-to-sales, and building long-term predictable ARR. structurally the company is focused on optimizing opex improving capex-to-sales and building long-term predictable arr Again, just to bring it to the point that normally last year also our Q4 EBIT was the highest in the whole year. again just to bring it to the point that normally last year also our q4 ebit was the highest in the whole year Given that historical data and looking at the current year trend, we are confident of meeting the guidance what we are given. given that historical data and looking at the current year trend we are confident of meeting the guidance what we are given

Speaker 1: Thank you, Indiresh. The second question, you announced a surprise receivables provision in Q3. Can you please give more information on which region this relates to and why it was booked under other operating expenses rather than financial items if it's linked to trade receivables? Thank you, Indiresh. thank you indiresh The second question, you announced a surprise receivables provision in Q3. the second question you announced a surprise receivables provision in q3 Can you please give more information on which region this relates to and why it was booked under other operating expenses rather than financial items if it's linked to trade receivables? can you please give more information on which region this relates to and why it was booked under other operating expenses rather than financial items if it's linked to trade receivables

Speaker 2: Probably I'll take it again. Thanks. This is a great question. Thank you for asking this. I want to call out one thing. What we have made is a provision and not a write-off. That's the first point I want to call out. The provision is a standard thing which we make prudently based on a set accounting principles and a policy what we have. It depends on the country, it depends on the aging, and the country risk assessment, which we take it from the global websites. We have a matrix through which we arrive at what is the provision that is to be needed, and we take it. Again, as I repeated earlier, provision does not mean a write-off, and also it does not mean that the provisions will not be reversed. When we collect the money, automatically that gets reversed. Probably I'll take it again. probably i'll take it again Thanks. thanks This is a great question. this is a great question Thank you for asking this. thank you for asking this I want to call out one thing. i want to call out one thing What we have made is a provision and not a write-off. what we have made is a provision and not a write-off That's the first point I want to call out. that's the first point i want to call out The provision is a standard thing which we make prudently based on a set accounting principles and a policy what we have. the provision is a standard thing which we make prudently based on a set accounting principles and a policy what we have It depends on the country, it depends on the aging, and the country risk assessment, which we take it from the global websites. it depends on the country it depends on the aging and the country risk assessment which we take it from the global websites We have a matrix through which we arrive at what is the provision that is to be needed, and we take it. we have a matrix through which we arrive at what is the provision that is to be needed and we take it Again, as I repeated earlier, provision does not mean a write-off, and also it does not mean that the provisions will not be reversed. again as i repeated earlier provision does not mean a write-off and also it does not mean that the provisions will not be reversed When we collect the money, automatically that gets reversed. when we collect the money automatically that gets reversed Also, a write-off could be a financial item, but as far as the IFRS 9 is concerned, any of these provisions we make is an operating expense and not a financial expense, and that is how we prefer to disclose it, and that is how we show it as an impact on my EBIT. Also, a write-off could be a financial item, but as far as the IFRS 9 is concerned, any of these provisions we make is an operating expense and not a financial expense, and that is how we prefer to disclose it, and that is how we show it as an impact on my EBIT. also a write-off could be a financial item but as far as the ifrs 9 is concerned any of these provisions we make is an operating expense and not a financial expense and that is how we prefer to disclose it and that is how we show it as an impact on my ebit

Speaker 1: You talked about mobilization costs from new contracts in the U.S. and Europe. How big were they, and will they continue to weigh on margins? Do these costs currently contribute to revenue, or are they more like investments at this stage? You talked about mobilization costs from new contracts in the U.S. and Europe. you talked about mobilization costs from new contracts in the u.s and europe How big were they, and will they continue to weigh on margins? how big were they and will they continue to weigh on margins Do these costs currently contribute to revenue, or are they more like investments at this stage? do these costs currently contribute to revenue or are they more like investments at this stage

Speaker 3: Right now, the mobilization costs in Q3 are not really significant, so we have not calculated it separately. Typically, it's for onboarding teams in newer markets where we have digital transformation deliveries like U.S., Europe, MEA, South Africa, etc. These investments definitely support the project execution and then gradually generate ARR revenue in future quarters and years. It's really a strategic long-cycle contracts that require this kind of investments typically, and not quick revenue hits like in the past years. The payback will come with higher ARR over time because of the local delivery capability that we will be creating close to the customers that we serve in the markets that we serve. At a company level, I really believe that the significantly reduced OpEx compared to the last year will efficiently manage the resourcing requirements of these local geographies. Right now, the mobilization costs in Q3 are not really significant, so we have not calculated it separately. right now the mobilization costs in q3 are not really significant so we have not calculated it separately Typically, it's for onboarding teams in newer markets where we have digital transformation deliveries like U.S., Europe, MEA, South Africa, etc. These investments definitely support the project execution and then gradually generate ARR revenue in future quarters and years. typically it's for onboarding teams in newer markets where we have digital transformation deliveries like u.s europe mea south africa etc these investments definitely support the project execution and then gradually generate arr revenue in future quarters and years It's really a strategic long-cycle contracts that require this kind of investments typically, and not quick revenue hits like in the past years. it's really a strategic long-cycle contracts that require this kind of investments typically and not quick revenue hits like in the past years The payback will come with higher ARR over time because of the local delivery capability that we will be creating close to the customers that we serve in the markets that we serve. the payback will come with higher arr over time because of the local delivery capability that we will be creating close to the customers that we serve in the markets that we serve At a company level, I really believe that the significantly reduced OpEx compared to the last year will efficiently manage the resourcing requirements of these local geographies. at a company level i really believe that the significantly reduced opex compared to the last year will efficiently manage the resourcing requirements of these local geographies The use of AI in our engineering velocity will improve productivity and also is already showing better cost management overall for us. With all of these factors built in, this is not a significant event. The use of AI in our engineering velocity will improve productivity and also is already showing better cost management overall for us. the use of ai in our engineering velocity will improve productivity and also is already showing better cost management overall for us With all of these factors built in, this is not a significant event. with all of these factors built in this is not a significant event

Speaker 1: Thank you, Padma. You've had recurring foreign exchange hits this year. What's the remaining exposure, and can we expect the volatility to ease now? Thank you, Padma. thank you padma You've had recurring foreign exchange hits this year. you've had recurring foreign exchange hits this year What's the remaining exposure, and can we expect the volatility to ease now? what's the remaining exposure and can we expect the volatility to ease now

Speaker 2: Okay, probably I can take it. Yeah, thank you. Thank you again, Thomas. Great question. The YTD forex loss, if you look at it, it's about $3.9 million, mainly coming from the hedge fund impact. In Q3, we had a small gain of $0.3 million. The frontier market share now is substantially lower at about 16%, down from 27% we discussed earlier. The local delivery and currency match contracts do create a sort of a natural hedge. However insignificant it could be, but still there is a natural hedge. The EURUSD outsized impact on forex loss this year. I don't think we had factored this when we planned last year. Forex loss is not structural. Large cost and revenues sit in USD. We expect markedly lower FX swings going into 2026 based on what we have seen in Q3 of this year. Okay, probably I can take it. okay probably i can take it Yeah, thank you. yeah thank you Thank you again, Thomas. thank you again thomas Great question. great question The YTD forex loss, if you look at it, it's about $3.9 million, mainly coming from the hedge fund impact. the ytd forex loss if you look at it it's about $3.9 million mainly coming from the hedge fund impact In Q3, we had a small gain of $0.3 million. in q3 we had a small gain of $0.3 million The frontier market share now is substantially lower at about 16%, down from 27% we discussed earlier. the frontier market share now is substantially lower at about 16% down from 27% we discussed earlier The local delivery and currency match contracts do create a sort of a natural hedge. the local delivery and currency match contracts do create a sort of a natural hedge However insignificant it could be, but still there is a natural hedge. however insignificant it could be but still there is a natural hedge The EUR USD outsized impact on forex loss this year. the eur usd outsized impact on forex loss this year I don't think we had factored this when we planned last year. i don't think we had factored this when we planned last year Forex loss is not structural. forex loss is not structural Large cost and revenues sit in USD. large cost and revenues sit in usd We expect markedly lower FX swings going into 2026 based on what we have seen in Q3 of this year. we expect markedly lower fx swings going into 2026 based on what we have seen in q3 of this year

Speaker 1: Thank you, Indiresh. Next one, the order book is strong at $105 million, but cash flow is still modest. When will this backlog start turning into visible revenue and cash generation? Thank you, Indiresh. thank you indiresh Next one, the order book is strong at $105 million, but cash flow is still modest. next one the order book is strong at $105 million but cash flow is still modest When will this backlog start turning into visible revenue and cash generation? when will this backlog start turning into visible revenue and cash generation

Speaker 2: Probably I'll take, and then I can request Padma to add something. Probably I'll take, and then I can request Padma to add something. probably i'll take and then i can request padma to add something

Speaker 3: Absolutely. Absolutely. absolutely

Speaker 2: Yeah, these are all large transformation projects. These take the timeframe anywhere between 8 to 24 months, depending on the complexity of the particular customer. Revenue recognition is cyclical, with the license coming in earlier, followed by services through the course of deployment, and followed by the support, which is in ARR mode. Cash usually follows one or two quarters later due to the milestone payments. In Q3, free cash flow is about $1.2 million, as I called out, sixth straight positive quarter. I hope 2026-2027, we should have this uplift coming in the future years. Padma, you want to add anything? Yeah, these are all large transformation projects. yeah these are all large transformation projects These take the timeframe anywhere between 8 to 24 months, depending on the complexity of the particular customer. these take the timeframe anywhere between 8 to 24 months depending on the complexity of the particular customer Revenue recognition is cyclical, with the license coming in earlier, followed by services through the course of deployment, and followed by the support, which is in ARR mode. revenue recognition is cyclical with the license coming in earlier followed by services through the course of deployment and followed by the support which is in arr mode Cash usually follows one or two quarters later due to the milestone payments. cash usually follows one or two quarters later due to the milestone payments In Q3, free cash flow is about $1.2 million, as I called out, sixth straight positive quarter. in q3 free cash flow is about $1.2 million as i called out sixth straight positive quarter I hope 2026-2027, we should have this uplift coming in the future years. i hope 2026-2027 we should have this uplift coming in the future years Padma, you want to add anything? padma you want to add anything

Speaker 3: No, I think you've covered it all, and I think this is a record order book for the company. It speaks highly of the product stack and the standardization that we have achieved. Therefore, I would only say the more we improve the speed of delivery, the faster you can recognize the revenue and collect the cash. That's where our focus will be going forward. No, I think you've covered it all, and I think this is a record order book for the company. no i think you've covered it all and i think this is a record order book for the company It speaks highly of the product stack and the standardization that we have achieved. it speaks highly of the product stack and the standardization that we have achieved Therefore, I would only say the more we improve the speed of delivery, the faster you can recognize the revenue and collect the cash. therefore i would only say the more we improve the speed of delivery the faster you can recognize the revenue and collect the cash That's where our focus will be going forward. that's where our focus will be going forward

Speaker 1: There are some similar questions, so I will take the first one. License sales collapsed to $0.1 million from $5.8 million year on year. What happened, and when do they come back? There are some similar questions, so I will take the first one. there are some similar questions so i will take the first one License sales collapsed to $0.1 million from $5.8 million year on year. license sales collapsed to $0.1 million from $5.8 million year on year What happened, and when do they come back? what happened and when do they come back

Speaker 3: I had mentioned this even in the H1 results that the nature of our business is digital transformation, which involves three parts. It involves licenses to be dropped to the client, then modifications, integrations, testing, training, holding the hands of the customer to go through some transformations themselves, etc. happen, which we call as services revenue. That's followed by an ARR model through which they can add more features to the product stack or also manage the operations. We manage the operations for the clients. This is a cycle of our revenue pattern. Last quarter, we heavily booked licenses. This quarter, we have started delivering the services on top of those licenses in the various geographies. Therefore, we are seeing the transformation has moved to a deployment phase. I had mentioned this even in the H1 results that the nature of our business is digital transformation, which involves three parts. i had mentioned this even in the h1 results that the nature of our business is digital transformation which involves three parts It involves licenses to be dropped to the client, then modifications, integrations, testing, training, holding the hands of the customer to go through some transformations themselves, etc. happen, which we call as services revenue. it involves licenses to be dropped to the client then modifications integrations testing training holding the hands of the customer to go through some transformations themselves etc happen which we call as services revenue That's followed by an ARR model through which they can add more features to the product stack or also manage the operations. that's followed by an arr model through which they can add more features to the product stack or also manage the operations We manage the operations for the clients. we manage the operations for the clients This is a cycle of our revenue pattern. this is a cycle of our revenue pattern Last quarter, we heavily booked licenses. last quarter we heavily booked licenses This quarter, we have started delivering the services on top of those licenses in the various geographies. this quarter we have started delivering the services on top of those licenses in the various geographies Therefore, we are seeing the transformation has moved to a deployment phase. therefore we are seeing the transformation has moved to a deployment phase Once the deliveries and services revenue rise and ebb, you will start seeing the ARR revenues going up as new customers come on board. This is the cyclical nature of our business and a normal pattern for most tier one telcos. We are working more and more towards a subscription-based model, especially with the smaller tier two telcos, MVNX kind of clients, and cloud SaaS model clients. That, I believe, will be where we will bundle both the licenses and the services into an ARR to improve revenue predictability and more timely cash collection. That will be the change in the mix of revenue that we will see in the upcoming years. Once the deliveries and services revenue rise and ebb, you will start seeing the ARR revenues going up as new customers come on board. once the deliveries and services revenue rise and ebb you will start seeing the arr revenues going up as new customers come on board This is the cyclical nature of our business and a normal pattern for most tier one telcos. this is the cyclical nature of our business and a normal pattern for most tier one telcos We are working more and more towards a subscription-based model, especially with the smaller tier two telcos, MVNX kind of clients, and cloud SaaS model clients. we are working more and more towards a subscription-based model especially with the smaller tier two telcos mvnx kind of clients and cloud saas model clients That, I believe, will be where we will bundle both the licenses and the services into an ARR to improve revenue predictability and more timely cash collection. that i believe will be where we will bundle both the licenses and the services into an arr to improve revenue predictability and more timely cash collection That will be the change in the mix of revenue that we will see in the upcoming years. that will be the change in the mix of revenue that we will see in the upcoming years

Speaker 1: Thank you, Padma. The $1 million per quarter free cash flow looks small. How much of that is operational versus timing or one-off movements? What is the role of new loans that the company took in Q3? Thank you, Padma. thank you padma The $1 million per quarter free cash flow looks small. the $1 million per quarter free cash flow looks small How much of that is operational versus timing or one-off movements? how much of that is operational versus timing or one-off movements What is the role of new loans that the company took in Q3? what is the role of new loans that the company took in q3

Speaker 2: Okay, thank you. Interesting question. Sorry to be repeated here, but I need to bring it to everybody's attention that for multiple years, we had a negative free cash flow culminating at about -$7 million in 2023. In 2024, beginning also the first quarter, we had something like -$4 million free cash flow. Thereafter, we changed the way we operate. There was an initiative last year called Think Cash Do Cash. All of that ensured that we started moving into the free cash flow positive region. This is the sixth quarter we are continuously on free cash flow positive. Is that a history? Is it a justification for the current performance? May not be. I want to also again bring one more parameter into this. Okay, thank you. okay thank you Interesting question. interesting question Sorry to be repeated here, but I need to bring it to everybody's attention that for multiple years, we had a negative free cash flow culminating at about -$7 million in 2023. sorry to be repeated here but i need to bring it to everybody's attention that for multiple years we had a negative free cash flow culminating at about -$7 million in 2023 In 2024, beginning also the first quarter, we had something like -$4 million free cash flow. in 2024 beginning also the first quarter we had something like -$4 million free cash flow Thereafter, we changed the way we operate. thereafter we changed the way we operate There was an initiative last year called Think Cash Do Cash. there was an initiative last year called think cash do cash All of that ensured that we started moving into the free cash flow positive region. all of that ensured that we started moving into the free cash flow positive region This is the sixth quarter we are continuously on free cash flow positive. this is the sixth quarter we are continuously on free cash flow positive Is that a history? is that a history Is it a justification for the current performance? is it a justification for the current performance May not be. may not be I want to also again bring one more parameter into this. i want to also again bring one more parameter into this Had the EURUSD parity remained the same, like at the beginning of the year, our cash flow for this first nine months, instead of $3.2 million, would have looked something like $8 million in USD terms. The operating cash flow YTD is about $14.8 million, which is about 15% higher than last year. There was a question on why do we take small-term loans, which is practically the way we look at it. We operate in multiple countries, and in certain geographies, we are expected to give certain performance guarantees to our customers. When we approach the banks for these guarantees, they insist that we do have a certain credit business with them, and also the same is given back to the bank as a security deposit for the guarantees they issue. Had the EUR USD parity remained the same, like at the beginning of the year, our cash flow for this first nine months, instead of $3.2 million, would have looked something like $8 million in USD terms. had the eur usd parity remained the same like at the beginning of the year our cash flow for this first nine months instead of $3.2 million would have looked something like $8 million in usd terms The operating cash flow YTD is about $14.8 million, which is about 15% higher than last year. the operating cash flow ytd is about $14.8 million which is about 15% higher than last year There was a question on why do we take small-term loans, which is practically the way we look at it. there was a question on why do we take small-term loans which is practically the way we look at it We operate in multiple countries, and in certain geographies, we are expected to give certain performance guarantees to our customers. we operate in multiple countries and in certain geographies we are expected to give certain performance guarantees to our customers When we approach the banks for these guarantees, they insist that we do have a certain credit business with them, and also the same is given back to the bank as a security deposit for the guarantees they issue. when we approach the banks for these guarantees they insist that we do have a certain credit business with them and also the same is given back to the bank as a security deposit for the guarantees they issue This is more for an operational reason why we need to be associated with some of these large banks. As you can see, whenever I compute my free cash flow, I do not consider these loans into that. It's straight away from my operations as the free cash flow is computed as per the IFRS guidance. This is more for an operational reason why we need to be associated with some of these large banks. this is more for an operational reason why we need to be associated with some of these large banks As you can see, whenever I compute my free cash flow, I do not consider these loans into that. as you can see whenever i compute my free cash flow i do not consider these loans into that It's straight away from my operations as the free cash flow is computed as per the IFRS guidance. it's straight away from my operations as the free cash flow is computed as per the ifrs guidance

Speaker 1: Thank you, Indiresh. If I could ask that the next question and answers, if you guys could keep answers to about 30 seconds to a minute, we could get through all the questions that are coming into the chat. Thank you, Indiresh. thank you indiresh If I could ask that the next question and answers, if you guys could keep answers to about 30 seconds to a minute, we could get through all the questions that are coming into the chat. if i could ask that the next question and answers if you guys could keep answers to about 30 seconds to a minute we could get through all the questions that are coming into the chat

Speaker 2: We'll try. We'll try. We'll try. we'll try We'll try. we'll try

Speaker 1: It's great that, you know, there's a lot of interest regarding our company's results for the Q3. Let's keep them short in the future. Given the cost-based and provision, are you still comfortable with your guidance for growth in margin? It's great that, you know, there's a lot of interest regarding our company's results for the Q3. it's great that you know there's a lot of interest regarding our company's results for the q3 Let's keep them short in the future. let's keep them short in the future Given the cost-based and provision, are you still comfortable with your guidance for growth in margin? given the cost-based and provision are you still comfortable with your guidance for growth in margin

Speaker 3: I'll try to answer, you can add. Yes, we are ready to meet the guidance for the end of the year, as far as I go. We have a healthy order backlog, which is converting and a strong pipe. We expect Q4 to be a strong ending quarter for us, as always. As long as we can manage the execution risks and we are through the use of AI and other tools and further productization, our pipe conversion visibility is very, very good. I'll try to answer, you can add. i'll try to answer you can add Yes, we are ready to meet the guidance for the end of the year, as far as I go. yes we are ready to meet the guidance for the end of the year as far as i go We have a healthy order backlog, which is converting and a strong pipe. we have a healthy order backlog which is converting and a strong pipe We expect Q4 to be a strong ending quarter for us, as always. we expect q4 to be a strong ending quarter for us as always As long as we can manage the execution risks and we are through the use of AI and other tools and further productization, our pipe conversion visibility is very, very good. as long as we can manage the execution risks and we are through the use of ai and other tools and further productization our pipe conversion visibility is very very good

Speaker 1: Thank you. What are the key priorities for the last quarter of 2025? Thank you. thank you What are the key priorities for the last quarter of 2025? what are the key priorities for the last quarter of 2025

Speaker 3: I'll answer this. I really believe it's converting the backlog into billings and cash. Collecting cash is the most important priority and focusing on the right projects that will ensure that we will invoice in the quarter and collect within the quarter. We also are focused on attracting global high-skilled talent across the board as we expand our market footprint, both in the area of AI and cloud. This is another key focus for the company. We need to manage our timelines. We need to deliver on time to make the invoicing and the cash collections also be on time. That will continue to be a delivery pressure on all the engineers in the company and a pressure on management as well. Finally, using AI-driven efficiencies to maintain cost controls and scaling into newer markets will also be an equal focus in Q4. I'll answer this. i'll answer this I really believe it's converting the backlog into billings and cash. i really believe it's converting the backlog into billings and cash Collecting cash is the most important priority and focusing on the right projects that will ensure that we will invoice in the quarter and collect within the quarter. collecting cash is the most important priority and focusing on the right projects that will ensure that we will invoice in the quarter and collect within the quarter We also are focused on attracting global high-skilled talent across the board as we expand our market footprint, both in the area of AI and cloud. we also are focused on attracting global high-skilled talent across the board as we expand our market footprint both in the area of ai and cloud This is another key focus for the company. this is another key focus for the company We need to manage our timelines. we need to manage our timelines We need to deliver on time to make the invoicing and the cash collections also be on time. we need to deliver on time to make the invoicing and the cash collections also be on time That will continue to be a delivery pressure on all the engineers in the company and a pressure on management as well. that will continue to be a delivery pressure on all the engineers in the company and a pressure on management as well Finally, using AI-driven efficiencies to maintain cost controls and scaling into newer markets will also be an equal focus in Q4. finally using ai-driven efficiencies to maintain cost controls and scaling into newer markets will also be an equal focus in q4

Speaker 1: Thank you, Padma. As revenue contribution from North America and Europe rises over the next years, how should we model the net impact on gross margins given deferring professional services, intensity, personal compensation levels? Thank you, Padma. thank you padma As revenue contribution from North America and Europe rises over the next years, how should we model the net impact on gross margins given deferring professional services, intensity, personal compensation levels? as revenue contribution from north america and europe rises over the next years how should we model the net impact on gross margins given deferring professional services intensity personal compensation levels

Speaker 3: Very good question. This is what we deal with all the time. I really believe we have transformed Tecnotree from a solutions and projects company to a product company over the last five years. It's taken a lot of CapEx. It's taken a lot of effort from our teams, and the TM Forum standardization and adherence to standards has definitely helped create a moat. We have placed the right bets, as you have seen, whether it's in cloud, whether it's in AI. We acquired an AI company well ahead of the requirements for AI in telecoms, and we have created a moat. The productized stack and the partners today that we attract, especially the SIs, help us unlock more revenue in Fortune 500 companies in mature markets. Very good question. very good question This is what we deal with all the time. this is what we deal with all the time I really believe we have transformed Tecnotree from a solutions and projects company to a product company over the last five years. i really believe we have transformed tecnotree from a solutions and projects company to a product company over the last five years It's taken a lot of CapEx. it's taken a lot of capex It's taken a lot of effort from our teams, and the TM Forum standardization and adherence to standards has definitely helped create a moat. it's taken a lot of effort from our teams and the tm forum standardization and adherence to standards has definitely helped create a moat We have placed the right bets, as you have seen, whether it's in cloud, whether it's in AI. we have placed the right bets as you have seen whether it's in cloud whether it's in ai We acquired an AI company well ahead of the requirements for AI in telecoms, and we have created a moat. we acquired an ai company well ahead of the requirements for ai in telecoms and we have created a moat The productized stack and the partners today that we attract, especially the SIs, help us unlock more revenue in Fortune 500 companies in mature markets. the productized stack and the partners today that we attract especially the sis help us unlock more revenue in fortune 500 companies in mature markets I think we will intensify embedding AI into our tools to manage costs, increase productivity, more automation in the process, less reliance on professional services. All of these things will help us manage the OpEx well. I think we will intensify embedding AI into our tools to manage costs, increase productivity, more automation in the process, less reliance on professional services. i think we will intensify embedding ai into our tools to manage costs increase productivity more automation in the process less reliance on professional services All of these things will help us manage the OpEx well. all of these things will help us manage the opex well

Speaker 1: Thank you. Shortly, what's your biggest competitive threat? Thank you. thank you Shortly, what's your biggest competitive threat? shortly what's your biggest competitive threat

Speaker 3: I don't think I have a competition because I really believe our real risk is execution. I believe the tier one competitors are consolidating and pulling back from mid-market, so they are not really a threat for us. The network and OSS vendors have very limited opportunities because they have legacy systems and are bound by certain geopolitics. Our other competitors, which are tier two vendors, but we are out innovating them in AI and cloud-native and MVNO/MVNX capabilities, so they are not really a threat. The market is truly ours to lose. The only loss could be because of pure execution. We really need to focus on delivery, delivery, delivery on time. I don't think I have a competition because I really believe our real risk is execution. i don't think i have a competition because i really believe our real risk is execution I believe the tier one competitors are consolidating and pulling back from mid-market, so they are not really a threat for us. i believe the tier one competitors are consolidating and pulling back from mid-market so they are not really a threat for us The network and OSS vendors have very limited opportunities because they have legacy systems and are bound by certain geopolitics. the network and oss vendors have very limited opportunities because they have legacy systems and are bound by certain geopolitics Our other competitors, which are tier two vendors, but we are out innovating them in AI and cloud-native and MVNO/MVNX capabilities, so they are not really a threat. our other competitors which are tier two vendors but we are out innovating them in ai and cloud-native and mvno/mvnx capabilities so they are not really a threat The market is truly ours to lose. the market is truly ours to lose The only loss could be because of pure execution. the only loss could be because of pure execution We really need to focus on delivery, delivery, delivery on time. we really need to focus on delivery delivery delivery on time

Speaker 1: Thank you. How big is the share of work done by system integrators' personnel at delivering projects? Are system integrator billings Tecnotree or the customer directly? Thank you. thank you How big is the share of work done by system integrators' personnel at delivering projects? how big is the share of work done by system integrators' personnel at delivering projects Are system integrator billings Tecnotree or the customer directly? are system integrator billings tecnotree or the customer directly

Speaker 3: They vary from project to project. It really depends on the role that the SI plays in a given project. Sometimes they come into a management role. Sometimes we train them, and then they start delivering some of the services themselves. I believe that, you know, what was the, can I just look at the question again? The role of the SI continues to change, and I believe that some of the SIs bill directly, some of the SIs bill through us. The combination also continues to evolve based on client requirements. The partnerships are always strategic. They vary from project to project. they vary from project to project It really depends on the role that the SI plays in a given project. it really depends on the role that the si plays in a given project Sometimes they come into a management role. sometimes they come into a management role Sometimes we train them, and then they start delivering some of the services themselves. sometimes we train them and then they start delivering some of the services themselves I believe that, you know, what was the, can I just look at the question again? i believe that you know what was the can i just look at the question again The role of the SI continues to change, and I believe that some of the SIs bill directly, some of the SIs bill through us. the role of the si continues to change and i believe that some of the sis bill directly some of the sis bill through us The combination also continues to evolve based on client requirements. the combination also continues to evolve based on client requirements The partnerships are always strategic. the partnerships are always strategic

Speaker 1: Okay. You mentioned in the Q3 report that digital transformation projects in Europe and the Americas require you to incur mobilization costs towards hiring of local high-skilled talent to accelerate delivery. However, only two persons were added to your headcount in the other countries, from 37 persons to 39 persons. What type of costs do you mean with mobilization costs? Okay. okay You mentioned in the Q3 report that digital transformation projects in Europe and the Americas require you to incur mobilization costs towards hiring of local high-skilled talent to accelerate delivery. you mentioned in the q3 report that digital transformation projects in europe and the americas require you to incur mobilization costs towards hiring of local high-skilled talent to accelerate delivery However, only two persons were added to your headcount in the other countries, from 37 persons to 39 persons. however only two persons were added to your headcount in the other countries from 37 persons to 39 persons What type of costs do you mean with mobilization costs? what type of costs do you mean with mobilization costs

Speaker 3: There are many types of costs. In large transformation projects, there are also costs for people to travel to those locations, people who are highly skilled in the product execution, architects, product experts, managers, engineers, testers. Many of them have to travel, meet clients, work in the client environments, train clients to use our product, etc. The cost is not just a hiring mix. The cost is high-skilled labor and mobilization costs to deliver the project on time using the capabilities we already have. We also have some third-party and hardware costs, depending on what the client requires, whether a bundled cloud or an on-prem infrastructure depends on the nature of the engagement. Having a productized stack and AI-driven productivity definitely helps us reduce the overall cost spend, but there are definitely localized costs that evolve during the course of the project. There are many types of costs. there are many types of costs In large transformation projects, there are also costs for people to travel to those locations, people who are highly skilled in the product execution, architects, product experts, managers, engineers, testers. in large transformation projects there are also costs for people to travel to those locations people who are highly skilled in the product execution architects product experts managers engineers testers Many of them have to travel, meet clients, work in the client environments, train clients to use our product, etc. The cost is not just a hiring mix. many of them have to travel meet clients work in the client environments train clients to use our product etc the cost is not just a hiring mix The cost is high-skilled labor and mobilization costs to deliver the project on time using the capabilities we already have. the cost is high-skilled labor and mobilization costs to deliver the project on time using the capabilities we already have We also have some third-party and hardware costs, depending on what the client requires, whether a bundled cloud or an on-prem infrastructure depends on the nature of the engagement. we also have some third-party and hardware costs depending on what the client requires whether a bundled cloud or an on-prem infrastructure depends on the nature of the engagement Having a productized stack and AI-driven productivity definitely helps us reduce the overall cost spend, but there are definitely localized costs that evolve during the course of the project. having a productized stack and ai-driven productivity definitely helps us reduce the overall cost spend but there are definitely localized costs that evolve during the course of the project Of course, maybe Indiresh knows, in some cases, because of the security requirements, we are even having to have some costs related to financing. Of course, maybe Indiresh knows, in some cases, because of the security requirements, we are even having to have some costs related to financing. of course maybe indiresh knows in some cases because of the security requirements we are even having to have some costs related to financing

Speaker 2: Bank guarantees. Bank guarantees. bank guarantees

Speaker 3: Yes. Yes. yes

Speaker 1: Okay, thank you so much. There are questions that we'll have to wait until an Indiresh interview or other type of session. There's also, thankfully, questions that we have already answered in the questions earlier, so I will skip those, such as can you open up a bit more about which outstanding receivables you did take provisions for? There's also questions on the licensing. Great job answering those, but we are unfortunately getting out of time for the Q3 earnings call. We will be gathering all the questions that you guys have pulled in the open Q&A boxes. We will also be announcing the Q4 sometime on our investor pages once we have those dates confirmed. Regarding capital market days, we are exploring, so if you have any questions or suggestions for Tecnotree to join any European capital market days, please do ahead and do so on my behalf. Okay, thank you so much. okay thank you so much There are questions that we'll have to wait until an Indiresh interview or other type of session. there are questions that we'll have to wait until an indiresh interview or other type of session There's also, thankfully, questions that we have already answered in the questions earlier, so I will skip those, such as can you open up a bit more about which outstanding receivables you did take provisions for? there's also thankfully questions that we have already answered in the questions earlier so i will skip those such as can you open up a bit more about which outstanding receivables you did take provisions for There's also questions on the licensing. there's also questions on the licensing Great job answering those, but we are unfortunately getting out of time for the Q3 earnings call. great job answering those but we are unfortunately getting out of time for the q3 earnings call We will be gathering all the questions that you guys have pulled in the open Q&A boxes. we will be gathering all the questions that you guys have pulled in the open q&a boxes We will also be announcing the Q4 sometime on our investor pages once we have those dates confirmed. we will also be announcing the q4 sometime on our investor pages once we have those dates confirmed Regarding capital market days, we are exploring, so if you have any questions or suggestions for Tecnotree to join any European capital market days, please do ahead and do so on my behalf. regarding capital market days we are exploring so if you have any questions or suggestions for tecnotree to join any european capital market days please do ahead and do so on my behalf If Indiresh and Padma would like to thank you for joining this Q3 call, and we hope to see and hear from you soon. Thank you, and any sign-off from Padma or Indiresh? If Indiresh and Padma would like to thank you for joining this Q3 call, and we hope to see and hear from you soon. if indiresh and padma would like to thank you for joining this q3 call and we hope to see and hear from you soon Thank you, and any sign-off from Padma or Indiresh? thank you and any sign-off from padma or indiresh

Speaker 3: Thank you, Thomas, and I'm looking forward to an excellent close of 2025. Thank you. Thank you, Thomas, and I'm looking forward to an excellent close of 2025. thank you thomas and i'm looking forward to an excellent close of 2025 Thank you. thank you

Speaker 2: Thank you. Thank you. thank you

Speaker 1: All right, thank you, everybody. All right, thank you, everybody. all right thank you everybody