TIE Kinetix N : Halfjaarlijkse financiële verslaggeving

Half Year Report:	1
First six months 2023
	TIE KINETIX N.V. ~ HALF YEAR REPORT 2023

Table of contents

First six months 2023	2
Message from Jan Sundelin, CEO	2
Key developments	2
Key fgures	5
Half year report 2023	1
Company performance	5
Cash fows and cash positon	6
Order intake	7
Personnel	7
Segment performance	7
Risk management	9
Press releases issued	9
Per share informaton	9
Alternatve performance measures	10
Interim consolidated statement of fnancial	14
positon

About TIE Kinetix

At TIE Kinetx, we help companies of all sizes achieve their digitalizaton goals. From 1% to 100% or anywhere in between, our cloud-natve FLOW Partner Automaton platorm is designed to completely eliminate paper from the supply chain, enabling our customers to focus on three corporate initatves that drive true organizatonal change: business process efciency, compliance, and corporate social responsibility (CSR).

We believe that digitalizaton (not digitzaton) is the future. We believe in conscious development, and we believe in moving ourselves and our customers forward. More than 2,500 companies have chosen TIE Kinetx to support their EDI, e-invoicing, and general digitalizaton projects, and we proudly facilitate the exchange of over 1 billion documents through FLOW each year-the equivalent of 100,000 trees saved.

Founded in 1987, TIE Kinetx is a public company (Euronext: TIE) with ofces in the Netherlands (HQ), France, Germany, Australia, and the United States. For more informaton, please visit www.TIEKinetx.com

Statement from the Executve Board	11
Contact and other informaton	12
Interim consolidated fnancial statements	13
Interim consolidated statement of fnancial	14
positon
Interim consolidated statement of	16
comprehensive income
Interim consolidated statement of changes in	17
equity
Interim consolidated statement of cash fows	18
Notes to the interim consolidated fnancial	19
statements

Financial calendar

Date	Event
02 August 2023	Publicaton of Q3 2023
	Trading update
15 November 2023	Publicaton of 2023 Full year
	results press release

Notice

This half year press release and the accompanying interim consolidated fnancial statements are unaudited.

All fgures in this press release are stated in thousands of euro, unless indicated otherwise.

First six months 2023:

Order Intake Doubles To More

• Than € 10 Million

TIE KINETIX N.V. ~ HALF YEAR REPORT 2023

Breukelen, 10 May 2023, 08.00 CEST - TIE Kinetx, a leader in 100% supply chain digitalizaton, announces its interim fnancial results for the frst half year of FY 2023 today.

Message from Jan Sundelin, CEO

I cannot be modest about it: our 2022 growth plan is a success. The investments that we have made in 2022 are paying of in more than 100% growth of our order intake in the frst half year of 2023. Our customer success teams and new business teams have brought in signifcant amounts of business both from existng accounts and from new accounts. In order to increase the delivery of this additonal business we are standardizing our go-to-market strategy, our propositons and also our back end delivery processes. This will allow us to take on more business without having to further increase our cost base for the delivery of it. These standardizaton processes are in full swing and will be further followed through in the second half year. I expect our cost base to come down in the second half year as a result of this. Coming back to our increased order intake: we are delivering on our promises made last year as we are providing a healthy return to the 2022investments/expenditures made.

Needless to say that we will contnue to invest in our state-of-the-art "next generaton" FLOW platorm, a single platorm that supports all global EDI and E-invoicing standards worldwide.

Key developments

TIE Kinetix boosts 2023 order intake with high growth strategy

Tie Kinetx high growth strategy results in signifcantly higher Order Intake. Order Intake for the frst 6 months of 2023 has almost doubled from € 5.3 million (2022) to € 10.0 million (2023). The company sees this as a confrmaton of the success of its new strategy. Investments in newly formed 'Customer Success' teams are paying of through additonal sales with existng customers, whereas sales to new business accounts have signifcantly increased through the revised channel strategy. The company expects that the accelerated growth in Order Intake will become visible in higher SaaS revenues in the second half of 2023 and beyond.

The Company operates as a 100% SaaS (Sofware as a Service) company, with a focus on long term subscripton contracts and annual recurring revenues. In 2022, the Company stepped up its expenditures and investments in marketng, sales, and onboarding to lay the foundaton for accelerated growth in all its markets. Increased expenditures in 2023 was visible in increasing staf levels, as well as certain one-of costs for recruitment costs, marketng and projects.

Orders from New Business/New Logo triples

Management is proud to be able to report that the high growth strategy is bearing fruit. In the frst half year, SaaS revenue has further increased with 18% from 5.3 million (frst half year 2022) to 6.3 million (frst half year 2023). By focusing our sales actvites, we are not only seeing growth in order intake, but also in the SaaS revenue. We are planning for a further increase in new business sales in the second half of 2023.

We have focused our channel actvity on Microsof (and afliated companies), Oracle and SAP. We are happy to report that as a result, FLOW has gained the status of preferred soluton for use with Microsof's Dynamics 365 ERP system. In additon, TIE Kinetx has been nominated Oracle's strategic partner for supply chain digitalizaton, with FLOW being sold through Oracle's Cloud Marketplace. Management is planning to step up channel sales in the second half of 2023 and beyond.

Built in the Microsof Azure cloud and operated largely with standard processes for onboarding customers and their suppliers, the FLOW platorm provides a sheer endless scaling capacity with no limit to the number of potental customers and suppliers. This scalability perfectly complements these major partnerships.

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TIE KINETIX N.V. ~ HALF YEAR REPORT 2023

Investing in growth

Investing to accelerate growth of our 100% SaaS business

The Company's business model is entrely focused on the delivery and use of our SaaS soluton called FLOW. This strengthens the positon of the Company as a 100% SaaS company with a focus on long term subscripton contracts and annual recurring revenue. The Company will contnue to develop the functonality of the FLOW platorm.

The focus on SaaS has also been refected in the internal organizaton of the Company with the introducton of new roles and teams:

• Customer success, focusing on driving the successful deployment of FLOW with our current customers as well as maintaining and growing customer relatonships;
• New business, being fully dedicated to acquisiton of new customers; and
• Central Dev Ops team for fast delivery of for standard projects.

To add to our goal of acceleratng organic revenue growth, we have expanded our indirect sales channel. The spearhead of our indirect sales strategy is our worldwide partnerships with major ERP vendors. In additon, we are partnering with local ERPs in Europe and North America.

Tie Kinetix unique market position and upsell protentional

Tie Kinetx diferentates from its compettors by our ability to ofer our client 100% digitalizaton of their supply chain with our services Portal-2-FLOW,PDF-2-FLOW and EDI-2-FLOW. Tie Kinetx has the unique propositon to increase its clients' digitalizaton ambiton to a 100% digitalized supply chain. With the implementaton of our new customers success teams the company is not only focusing on the increase of new trading partners, but also on the increase of digitalizaton of documents in the FLOW platorm. With most of our large Hub customers not yet having a fully 100% digitalized supply chain, this provides a large upsell potental in our installed base.

The French legislator has signed a mandate whereby all business to business (B2B) commerce are required to digitalize all electronic invoicing before 2026. With our fow platorm and newly established customer success teams we expect further growth on the back of this mandate. With the fow platorm we can help medium size companies to realize 100% digitalizaton, taking out all paper in their supply chain.

Other important developments

Operational and fnancial efciencies

The Company's operatons have been further streamlined with a second phase of centralizaton. In additon to the frst phase - in which in prior years the non-primary business processes such as fnance, billing, marketng and development were centralized - the second phase centralizes certain primary business processes around setng up new customers and supplier onboarding. For example, building mappings to connect suppliers are now managed centrally.

The Company has contnued to working more remotely and digitally. As a result, less ofce space was needed for our operatons. Approximately 1/3rd of the foor space of the Breukelen head ofce has been subleased, reducing the cost pro-rata. In Germany and U.S. all our employees are working fully remotely. This will further decrease our carbon footprint.

Capital market communication

As stated in our Investor Relatons policy,we aim for transparent communicaton and provide detailed, clear and tmely informaton to all fnancial market partcipants. We aim to expand our communicaton to capital markets by disclosing more informaton in a transparent manner as well as increasing the frequency of our disclosures.

Our eforts to step up capital market communicaton are visible in:

» Various road show presentatons with our UK based Investor Relatons advisory frm;

First six months 2023: Order Intake

• Doubles To More Than € 10 Million

TIE KINETIX N.V. ~ HALF YEAR REPORT 2023

• Quarterly trading updates on key aspects of our performance such as (SaaS) revenue growth;
• Ad-hocpress releases regarding key aspects of company performance; and
• Expansion of disclosures in our2022 Annual Report.

We are confdent that this improved communicaton strategy is appreciated by capital markets and we welcome new investors that share our vision of 100% digitalizaton.

Expiration warrants Tie Kinetix

On December 2, 2013 the company has issued 388,846 warrants as part of the acquisiton of TFT. Each warrant enttles to holder to purchase a newly issued TIE Kinetx share at a share price of € 7.00 untl December 2, 2023. The company has 58,590 warrants outstanding with a duraton of 11 months (< 1 year). The exercise of the warrants can be utlized untl the maturity date December 2, 2023. Afer the maturity date, the right of exercise will be expired.

Our "frst" ESG report 2022

Tie Kinetx is proud to be the frst listed company in the Netherlands to publish its ESG report 2022. As part of our sustainable growth objectves, we are embedding environmental, social and governance (ESG) principles into our strategy and decision-making. With increasing investor focus on Environmental, Social and Governance aspects of their portolio, our 2022 ESG report was welcomed by many of our worldwide clients. Management has therefore published her ESG report 2022 in three diferent languages: English, French and German.

'Second consecutive' dividend payment / Dividend policy

Afer shareholder approval at the AGM of 24 March 2023, the Company has paid its second consecutve dividend of € 0.50 per share on 2 May 2023. Shareholders had a choice of receiving this FY 2023 interim dividend either in shares or in cash. With this second consecutve dividend payment, the Company strives for a stable dividend payout, with the aim of distributng at least 40% of net proft, potentally growing to a 50% level in future. Management considers that such a dividend policy is backed by the very high recurring business (80%+) in its business model. To underscore management's confdence in the growth strategy the Company opted to distribute the 2023 interim dividend from its reserves, in the absence of sufcient net proft.

Following the electon period, it was apparent that the majority of the shareholders have chosen to follow the Company in its excitng journey towards higher growth as shareholders representng 1,214,583 shares (62%) have elected to receive a stock dividend. Shareholders representng the remaining 744,526 shares (38%) have elected to receive a cash dividend. The company welcomes this strong vote of confdence from the shareholders with the company's high growth strategy.

Should a similar situaton prevail in the near future, the Company may opt for a similar dividend distributon from its reserves. The optonal dividend enables TIE Kinetx to realize a higher pay-out while maintaining a strong balance sheet for the roll-out of its strategy and possible acquisitons. This is a good ft with, and expresses management's confdence in, our growth strategy.

On the interim consolidated statement of fnancial positon as at 31 March 2023, a liability has been recognized for the dividend distributon. Reference is made to the note Dividend payable, startng on page 23of the interim consolidated fnancial statements.

Related party transaction

On 24 March 2023 the company has entered into a loan agreement with a related party, its shareholder DW Vastgoed Beleggingen BV. Under the terms of the agreement DW Vastgoed Beleggingen can draw up to an amount of € 2 million. The loan carries interest at market rates, is payable quarterly, and is secured with a Senior Pledge on commercial property owned by the borrower. On 24 March 2023 an amount of € 1 million has been drawn. The transacton has been disclosed in the Interim consolidated statement of cash fows.

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TIE KINETIX N.V. ~ HALF YEAR REPORT 2023

Key fgures

(€ x 1,000)

	HY 2023	HY 2022	Variance (%)
Total Revenues	8,024	7,172	12%
of which: SaaS revenue	6,319	5,366	18%
EBITDA	(381)	31

Financial highlights HY 2023

• 87% increase in H1 Order intake from € 5.4 million (H1 2022) to € 10.0 million;
• 18% SaaS revenue growth on plan from € 5.4 million (H1 2022) to € 6.3 million;
• 12% total revenue increase from € 7.2 million (H1 2022) to € 8.0 million, in line with planned strategic changes in revenue recogniton, refer to 'Revenues' below under the secton Company performance, startng on page 5; and
• EBITDA decreased from € 0.03 million (H1 2021) to € (0.5) million (in line with expectaton, as impacted by strategic changes in revenue recogniton and strategy-induced increased expenditures).

Company performance

Revenues

Within our new high growth strategy, we see that SaaS revenue has increased with 18%. The implementng of 'Customer Success', "New business" and "Central Dev Ops" teams are paying of through additonal sales with existng customers, whereas sales to new business accounts have signifcantly increased through the revised channel strategy. We expect that the accelerated growth in higher SaaS revenues will be more visible in the second half of FY 2023 and beyond.

With the focus on 100% SaaS revenue, our US operatons are completng the End-of-Life program of our legacy US soluton. In prior years, on-premises solutons have been sold as licensed product with an annual maintenance fee. The End-of-Life program therefore has lead to a - planned - reducton of US maintenance revenue. At the same tme, in the absence of on-premises customers requiring support we are planning for the associatng cost reductons. The decline in group maintenance revenue in HY 1, 2023 versus HY 1, 2022 is entrely atributable to the US End-of-Life program. In the future maintenance revenue will remain with a limited amount of customers asking for FLOW functonality in an on- premises license model.

Following the 100% focus on SaaS delivery, the company has focused all its consultancy actvites to SaaS services. As a result, revenue (and costs) of consultancy actvites are recognized over 36 months (and costs amortzed accordingly). This accountng treatment - as stpulated by IFRS 15 - has resulted in a decrease in consultancy revenue and higher deferred revenue positon on the balance sheet. This tme allocaton does not lead to lower or diferent revenue/margins over the life of the contract.

The focus on SaaS is becoming visible in the growth of our SaaS revenues, showing a record year-on-year growth. The decrease in maintenance and support revenues as well as license revenues are fully expected as outlined above and consistent with this strategy.