KERLINK (EPA:ALKLK) - 2020 Revenue: €11.2M; -14%

Transparency directive : regulatory news

11/02/2021 17:53

2020 Revenue: EUR11.2M; -14%
A first half heavily impacted by the Covid-19 pandemic
Gradual improvement in business in the second half
Return to growth in the final quarter

PRESS RELEASE
Thorigné-Fouillard, 11 February 2021, 5.45 p.m.

Thorigné-Fouillard, France - Kerlink (ALKLK - FR0013156007), specialising in
network and IoT solutions, published its 2020 revenue today.

Quarterly revenue
(EURK)               2020         2019       Change

Q1                  2,610        2,989        -13%
Q2                  2,155        3,473        -38%
Q3                  2,721        2,927         -7%
Q4                  3,697        3,650         +1%
Total              11,184       13,038        -14%

IFRS - Unaudited figures

Q4 2020: the best level of business in 2 years

After a 1st half heavily impacted by the Covid-19 pandemic (-26%) followed by a
3rd quarter down 7% on a recovering market, the gradual improvement in business
was confirmed at year end. Q4 revenue rose slightly to EUR3.7m (+1%), making
this the best quarter for the Group in 2 years.
Sales in the second half (EUR6.4m) have been 35% higher than in the first half
(EUR4.8m). Thanks to continuous, gradual improvement, annual revenue just
dropped by 14%.

Private network operators: return to quarterly growth, leading players
confidence, a stronger partnership ecosystem

Revenue              H2 2020   H1 2020   Change   2020      2019    Change
by business (EURK)

Historic & alternative
telecoms operators       875     790     +11%     1,665     2,335     -29%
Private network
operators              5,476   3,806     +44%     9,282    10,386     -11%
Reference design          68     169     -60%       237       317     -25%
Total                  6,419   4,765     +35%    11,184    13,038     -14%

IFRS - Unaudited figures

The growing contribution of private operators to the Group's revenues has been
confirmed and now weights for more than 80% of annual revenue. In this priority
market segment for Kerlink, Q3 saw a return to growth (+2% on Q3 2019).
Finally, Q4 sales to the same private network operators rose 8%, containing the
decline in annual revenue on this customer base at 11%.

Despite 2020's restrictive health measures, commercial prospecting maintained
its momentum. The breadth of the client portfolio and the depth of the Group's
offering have allowed a gradual return to growth.

The Group's partnership ecosystem has also been strengthened. At the end of the
year Kerlink announced partnerships with iconic players such as Richardson RFPD
and Amazon Web Services.

New contracts were also announced in 2020, reflecting commercial investments,
demonstrating the accessibility and relevance of the Group's solutions and
confirming the dynamic deployment of private IoT networks using LoRaWAN(r)
technology.
Contracts have already been signed in Kerlink's three target segments:

* Smart Cities: in addition to historical rollouts of remote energy grid
solutions for major European operators, the Group has deepened its penetration
of this segment by signing a major partnership with Pilot Things to implement a
pilot contract in Bordeaux, and more recently another with Sensing Vision for
the fast and smooth roll-out of a municipal asset management solution (Smart
City).

* Smart Industries: In partnership with Smart Traffik, a provider of analytics
solutions for retailers, Kerlink has put the finishing touches on solutions
that create a personalized shopping experience by improving the visitor path
within point of sales. The partnership with Microshare resulted in a joint
range of reliable and easy-to-implement contact tracing solutions for companies
as a response to the COVID-19 pandemic. Finally, Kerlink and ZENNER IoT
Solutions GmbH announced the roll-out of Germany's largest LoRaWAN(r) network
for Netze BW, an energy, gas and water utilities company.

* Smart Territories: In this segment, connected and sustainable agriculture and
aquaculture solutions were deployed with GISupply in Japan, as well as water
monitoring projects in refugee camps for UNHCR in Uganda and Iraq and a
surveillance system to monitor the activity of Mount ETNA in Italy.

In the historical and alternative telecoms operators' segment, revenue for the
financial year totalled EUR1.7m (-29%).

Services: service revenues rise, recurring revenue sources

Revenues from services totalled EUR3.1m or 28% of total revenue vs 25% year on
year. Sales of value-added services (operation and maintenance of IoT
networks, administration and geolocation of connected equipment, Reference
Design expertise and professional services) fell just 5% over the period.
Equipment sales were hit harder by the first lockdown. This led to annual
revenue totalling EUR8.1m, down 17%.

Revenue growth in the Americas and EMEA, marked decline in France

In 2020 53% of Group revenue was generated internationally, a significant
increase on 2019 (+40%).

Revenue by          H2 2020   H1 2020   Change     2020      2019    Change
by geographic
region (EURK)

NCSA (Americas)         340       124    +174%       464       301     +54%
APAC (Asia-Pacific)     397       341     +16%       738       890     -17%
EMEA excl. France     2,980     1,827     +63%     4,807     4,101     +17%
FRANCE                2,702     2,473      +9%     5,175     7,745     -33%
Total                 6,419     4,765     +35%    11,184    13,038     -14%

IFRS - Unaudited figures

In the Americas, annual sales rose sharply (+54%), accelerating significantly
at the end of the period.

APAC (Asia-Pacific) business was encouraging at the beginning of 2020 but was
dampened by the effects of Covid-19. The lockdowns have delayed projects for
some of the Group's customers in this part of the world.

Revenue in the EMEA (Europe, Middle East and Africa) excluding France rose 17%
against 2019. The drop in French sales was mainly associated with historic
telecoms operators.

A solid growth dynamic at year end and a well-filled 2021 order book mean
Kerlink can look forward with confidence to the next few months while
maintaining the caution demanded by pandemic developments since the start of
the year. Beyond this, the Group remains confident of its ability to weather
the crisis thanks to its firm grip on its finances and a commercial and
technological range of products that has now found its market.

About Kerlink
Kerlink Group is a leading global provider of connectivity solutions for
designing, launching and operating public & private Internet of Things
networks. Its comprehensive product portfolio includes industrial-grade network
equipment, best-of-breed network core, operations and management software,
value-added applications and expert professional services, backed by strong R&D
capabilities. Kerlink specializes in providing future-proof, intelligent IoT
connectivity for three major domains: Smart Cities - metering, parking, street
lighting, waste management, air quality, building & facilities, asset
monitoring... Smart Industries - fleet & asset tracking, energy & utilities,
oil, gas & mining, airports, harbors, infrastructure, manufacturing, retail...
and Smart Territories - precision agriculture, environment protection and rural
towns & regions. Kerlink has deployed its hardware and software solutions in
more than 120,000 installations with more than 330 clients in 69 countries.
Based in France, with subsidiaries in the US, Singapore, India, and Japan,
Kerlink is a founding and board member of the LoRa Alliance(r) and the uCIFI
Alliance(tm). It is listed on Euronext Growth Paris under the symbol ALKLK.

For more information, visit www.kerlink.com/ or follow us on Twitter
@kerlink_news.

Upcoming Events
2020 Full year results & 2021 Q1 Revenue
15 April 2021, after market close

www.kerlink.fr

Investors contact :
Actifin
Benjamin Lehari
+33 (0)1 56 88 11 25
blehari@actifin.fr

Financial press Contact :
Actifin
Isabelle Dray
+33 (0)1 56 88 11 29
idray@actifin.fr

Kerlink press & market analysts contact :
Mahoney Lyle
Sarah Lyle
+33 (0)6 75 85 60 42
slyle@mahoneylyle.com

www.kerlink.com
Linkedin fr.linkedin.com/company/kerlink
Twitter @kerlink_news

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KERLINK (EPA:ALKLK) - 2020 Revenue: €11.2M; -14%

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