Kerlink : 2021 Revenue

2021 revenue of €19.9m: +78%

Above the high end of its target range

Strong order execution despite pressure on semiconductor supplies

Positioned for a new growth cycle

PRESS RELEASE

Thorigné-Fouillard,France - 27 January 2022, 6:00 p.m.

Kerlink(AKLK FR0013156007), a specialist provider of IoT (Internet of Things) networks and solutions, is today publishing its revenue for 2021.

After a 2020 fiscal year marked by the effects of the health situation, Kerlink returned to growth at the end of a year of strong customer acquisition. The Group's revenue in 2021 amounted to €19.9 million, up 78% compared to the 2020 financial year (€11.2m). This performance is nearly 5% higher than the high end of the target range of between €16m and €19m announced during the half-year results. Business activity in 2021 was also up sharply (+52%) compared to 2019.

These performances are even more remarkable given the context of unprecedented tension on the supply of semiconductors and commodities, which will have affected all global industrial and technological players, particularly in the second half of the year. Growth in sales was mainly driven by private network operators.

Historic telecom network operators nevertheless posted growth of 25%, representing revenue of €2m.

	Quarterly revenue (In €k)			2021			2020			Change			Reminder
									2019
	Q1	3,722		2,610		+ 43%		2,989
	Q2	3,856		2,155		+ 79%		3,473
	Q3	3,180		2,721		+ 17%		2,927
	Q4	9,118		3,697			x 2.5	3,650
	Total			19,876			11,184			+ 78%			13,038
										IFRS - Unaudited figures

A record 4th quarter

The Group had a record 4th quarter, with sales up 2.5 times compared to Q4 2020 which, as a reminder, had already seen a record high of €3.7m in revenue. In the context of pressure on supply, the Group held up well during the period, during which it generated nearly half of its annual revenue (46%) by securing the necessary supplies. In the end, revenue for the quarter came out at €9.1m, pushing 2021 sales above the higher end of the target range.

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Doubling of revenues from infrastructure equipment

This strong business momentum came mainly from sales of infrastructure equipment, which account for 81% of 2021 revenue. Kerlink's IoT gateways, now accessible from an extensive network of distribution channels, are becoming increasingly popular around the world.

Service revenues (operation and maintenance of operating conditions of IoT networks, administration of connected equipment and professional services) automatically benefited from this growth, with an increase of 22% in value compared to 2020, now amounting to €3.8 million. They represent 19% of total sales in 2021 versus 28% in the previous year; this decrease is due to the sharp growth in equipment sales.

Strong international growth

The Group's offer has grown in all regions. The Europe, Middle East and Africa (EMEA) region accounted for 65% of the Group's activity in 2021. The other regions, such as the Americas and Asia-Pacific, increased significantly in the total mix, illustrating the growing momentum of the Group and its international distribution channels, which now account for 70% of total sales compared to 52% in 2020.

Revenue in the EMEA region rose to €12.9m. It was up 30% compared to 2020.

The Americas region (NCSA) posted the strongest growth rate, with activity multiplied by more than 10. It now accounts for more than a quarter of the Group's activity (27%). On top of the revenues from the partnership with CalChip Connected Devices for the deployment of the Helium project, the region also saw the development of new partnerships with high potential in Central and South America.

Finally, in the Asia-Pacificregion (APAC), despite the health restrictions that have persisted in some countries, the Group has managed to extend its offer to new customers. Sales rose from €0.7m to €1.7m in 2021, representing 8% of the Group's revenues over the year.

	Revenue by geographic region
			2021			2020			Change			Reminder
	(In €k)									2019
	NCSA (Americas)			5,274			464			x 11.3			301
	APAC (Asia-Pacific)			1,665			737			x 2.3			890
	EMEA (Europe, Middle East & Africa)			12,936			9,982			+ 30%			11,846
	Total			19,876			11,184			+ 78%			13,038
										IFRS - Unaudited 2021 figures

A new growth cycle for the Group

This successful financial year enabled Kerlink to start 2022 with strong ambitions.

Its confidence is further boosted by the order book it will invoice in the current financial year, which was announced in January.

As at 1 January 2022, the order book stood at €17.8m compared with €6.2m on 1 January 2021.

William Gouesbet, Chairman and Chief Executive Officer of Kerlink, says of this performance: "We are very pleased to return to a strong growth trajectory. We were able to position ourselves with agility in a market that has been significantly disrupted by the component crisis. Thanks to the capital increase carried out in spring 2021, we were able to rapidly take strong positions with manufacturers. Given the choices made at crucial and early stages, Kerlink is handling the current situation by asserting itself as one of the leaders in IoT connectivity solutions with a reference offering and strong partnerships across the entire value chain.

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The quality of its IOT gateways and services means that Kerlink is now able to position itself as a major player at the heart of the global ecosystem in its sector, as evidenced by the sharp increase in its order book, which already gives it solid visibility on future growth. The Group's skills are sought by many market players and enable us to establish alliances with partners with complementary functional and/or business expertise, thus allowing us to further enhance our offering and obtain access to new market segments. All of this together with its contracts with the largest international distributors and suppliers of vertical solutions mean that Kerlink is now in an ideal position to speed up and reap the benefits of its new strategy."

Against this backdrop and in order to inform the market about its development prospects, the Group will unveil its new strategic plan on 31 March when it announces its 2021 full-year results.

About Kerlink

Kerlink Group is a leading global provider of end-to-end connectivity solutions for designing, deploying, and operating public & private low power/wide area (LPWA) Internet of Things IoT) 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 enabling future-proof intelligent IoT connectivity for three major domains: Smart City & Quality of Life - urban operations, utilities & metering, retail & public places, infrastructure & hubs, health; Smart Building & Industry - buildings

• real estate, industry & manufacturing, asset monitoring & tracking, and Smart Agriculture & Environment - precision agriculture, cattle monitoring & farming, environment & climate, and wildlife protection. More than 140,000 Kerlink installations have been rolled out with over 350 clients in 70 countries. Based in France, with subsidiaries in the US,
  Singapore, India and Japan, Kerlink is a cofounder and board member of the LoRa Alliance® and the uCIFI Alliance™.
  It is listed on Euronext Growth Paris under the symbol ALKLK.
  For more information, visit www.kerlink.com or follow us on our social media - Twitter @kerlink_news, LinkedIn #Kerlink, YouTube - Kerlink

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2021 Full Year Results:

March 31st, 2022, after market close

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