Icona Technology SpA: Icona Technology S.p.A. reports the results for the FY 2023

Cinisello Balsamo (MI) (pta034/28.03.2024/19:59 UTC+1)

Financial Highlights

• Net sales at 3,4M EUR (+60% YoY) on ca. 2.200 customers
• Recurring revenue at 62%, with international revenue at 14%
• Adj. EBITDA at 477k EUR (+112% YoY)
• Adj. net profit at 133k (+321% YoY)
• Operating cash flow at 710k EUR
• Net cash at 900k EUR

Giorgio Nepa, President and CEO of Icona Technology, comments: "Throughout the last year, our group has gained a deep understanding of the significant expertise and influence we can wield in the digitalization of after-sales services for manufacturing companies and the HoReCa sector. This realization led us to define a motto that captures our vision: "Unleashing the Future After-Sales in the Digital Age," highlighting our commitment to driving digital innovation and standing out in the market.

The group's strategy is structured around four main axes:

• Vision: We aim to revolutionize the post-sale experience through digital innovation, offering solutions that not only anticipate customer needs but also create new business opportunities. Expanding our value through acquisitions, open innovation, and strategic partnerships is essential.
• Strategic Objectives: We focus on the Service Hub as a single point of contact, for a seamless and highly customizable customer experience. We aim to reduce problem resolution times through automation, artificial intelligence, and predictive analytics, integrating our solutions for a cohesive and synergistic post-sale ecosystem.
• Strategy Pillars: We invest in emerging technologies to develop the next generation of post-sale solutions, listen carefully to our customers to guide the development of each new solution or feature, and adopt sustainable practices that benefit both society and the environment.
• Success Metrics: Measuring the impact on our customers' success through specific KPIs that reflect the improvement of customer experience (CX), the optimization of information flow, and the expansion of our market share through innovation and the quality of the solutions offered.

In Icona, Service Qube is the centerpiece of our proposition, designed to empower manufacturing companies' revenues through recurring services, ensuring continuous support. Our vision goes beyond simply generating revenue, aiming to achieve economies of scale that optimize costs and build long-lasting relationships with customers, particularly those who rely on our software licenses on a subscription basis.
Innovation is the lifeblood of our strategy. With the continuous evolution of our services, the search for new partners, and the integration with advanced technologies like artificial intelligence, we are committed to exploring new business opportunities and upselling strategies to increase per-customer profitability. In summary, we remain firmly positive. Icona Technology embodies a proactive approach, armed with a clear strategy and a solid commitment to innovation and development. We are equipped not only to navigate the uncertain waters of 2024 but also to further strengthen ourselves, sailing towards a future of greater strength and resilience."

Cinisello Balsamo, March 28, 2024. Icona Technology S.p.A. ("Icona Technology") (ISIN IT0005465528 – ticker: CARE), an international scale-up aimed at catalysing the digital evolution of after-sales services, announces the results for the full year 2023.

Note: "FY2023" and "Adj. FY2023" refer to consolidated pro-forma financial statements, including the full contribution of the acquisition of Explan.

The sales revenue, amounting to €3.446.094, is generated from the turnover of the two subsidiaries, Icona (70%) and Explan (30%); the change of €1.289.039 is therefore due to the organic increase in Icona's results by about €200.000 (+10,39% on 2022) and the new contribution from the newly acquired company. 62% of the total group turnover comes from the sale of recurring services with international revenue at 14%.
The 2023 results show a positive adj. EBITDA value of €477.188 (about 14% of sales revenue), successfully covering all group costs with the core activities of the two subsidiaries and achieving a satisfactory margin. Thanks to the acquisition of Explan and the efficient management of Icona, the group has managed to more than double its operational result.
The items involved in the adjustment process include costs for services related to consulting and stock market management expenses and intangible amortizations resulting from listing and corporate restructuring costs recorded in 2021; overall, they amount to about €110.000 for both exercises. For 2023, the amortization value of Explan's goodwill of €132.383 was also eliminated.
Despite the acquisition of Explan, the net financial position shows an overall balance of € -896.748 (net cash), consisting of € 247.652 in short-term debt and € 268.423 in long-term debt (almost doubled from the previous year mainly due to the consolidation of the numbers of Explan), covered by € 1.366.629 in cash and € 46.194 in financial receivables.

Main events occurred in FY 2023

First half of the year:
- New marketing strategy adopted, with a focus on Service Hub and LinkedIn campaigns to improve lead acquisition.
- Launch of Service Hub by Icona Srl, including a significant contract with Orved to digitize their customer service, contributing €350.000 in orders.
- Addition of the Customer Success Manager (CSM) role to Icona Srl, aimed at improving customer service and strategic sales expansion.

Second half of the year:
- Acquisition of 80% of Explan Consulting Srl, with plans to acquire the remaining 20%, part of a growth strategy integrating service offerings and Plangei software.
- Adoption of the Agile model in the Development Factory to update development processes and meet continuous training needs.
- Announcement of Sophia, a virtual assistant integrating ChatGPT 4, with a beta version released for testing.
- Introduction of an updated Service Level Agreement (SLA) and Data Protection Agreement (DPA) for Acty product, enhancing international business compliance.
- Dynamics, Microsoft's CRM software, went into production for Icona Srl, expected to be integrated into Explan Consulting Srl during 2024.

Main events occurred in Q1 2024

- Participation in the SIGEP trade show using a LinkedIn-based appointment booking strategy, yielding 70 direct and indirect contacts.
- Workshop held to define the value proposition of Service Hub, outlining its innovative digital solution for the manufacturing and Ho.Re.Ca sectors.
- Decision to rebrand Service Hub to "Service Qube" due to a homonymy issue, with the official name change scheduled for April/May 2024.

Profit / loss allocation of Icona Technology S.p.A.

Icona Technology as a single holding company recorded a loss of € 171.434 in 2023. It is proposed to carry forward the loss for the year.

Shareholders' meeting

The Shareholders' meeting of Icona Technology will be held on first call on 29 April 2024, and, if necessary, on second call for 30 April 2024, as per the financial calendar. The related call, including the details of the agenda, will be circulated in the next weeks, according to the terms of the law.

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Emitter:	Icona Technology SpA Viale Brianza 20 20092 Cinisello Balsamo (MI) Italy
Contact Person:	Giorgio Nepa
Phone:	+39 02 6111981
E-Mail:	investor.relations@iconatech.com
Website:	www.iconatech.com
ISIN(s):	IT0005465528 (Share)
Stock Exchange(s):	Vienna Stock Exchange (Vienna MTF)