GeoJunxion NV (ticker: GOJXN.AS) Formerly called AND International Publishers NV (AND.AS) Financial & Business update Q2 (Oct–Dec) and 1H (Jul-Dec) 2021/22

Capelle aan den IJssel, The Netherlands, 24 February 2022, GeoJunxion reports a 45% revenue growth in Q2 2021/22 (1H +59%), a positive EBITDA and ongoing strong reductions in Net Loss and Cash outflow for Q2 and 1H 2021/22, compared with the same period in 2020/21.

The current financial year covers the 12 months period from 1 July 2021 to 30 June 2022. The second quarter of this financial year covers the period from 1 October 2021 to 31 December 2021. The first half covers the period from 1 July 2021 to 31 December 2021.

Looking back at this second quarter, GeoJunxion’s business continued to show resilience and good performance. Revenue grew by 45% compared to the same quarter in 2020/21 and order intake showed growth of about 31% compared to the same period of last year. For 1H 2021/22 (from June to December) the growth on the order intake is of about 36% compared with the same period of the previous year and revenue grew by an even more encouraging 59% for the same period.

We are continuously encouraged by the market interest in our new premium location aware products, in particular Eco and Safety Alert Zones. However, the main traction is coming from the Location Intelligence Services, which have attracted the attention of public and private companies in various industry sectors and resulted in the increased strength of our pipeline. It is also worth noting that order intake continues the positive trend in the diversification across all our product lines and services, in particular for recurring multi-year business opportunities.

FINANCIAL HIGHLIGHTS Q2 (OCTOBER – DECEMBER) 2021 and 1H (JULY – DECEMBER) 2021 VERSUS THE SAME PERIODS IN 2020

• Revenue for Q2 2021/22 grew strongly by +45% compared to the same period in 2020. 1H growth +59%.
• Q2,2021/22 Operational expenses (OPEX) reduced by 12%. 1H OPEX reduced by 1%.
• Q2 2021/22 Operating result improved by €310 K, or 84% to a loss of €60 K, compared to a loss of €370 K in Q2 2020. For the first half 2021/22 improvement was €520 K or 74%.
• EBITDA was positive again in Q2 by €154 K. For the first half +€238 K
• Net result after tax improved by €113 K, or 38% to a net loss of €187 K versus €300 K in Q2 2020.
• Net cash-flow from operating and investing activities equals an outflow of €86 K Euro, a very significant improvement compared to a cash outflow of €393 K in Q2 2020 (excluding the impact of the equity raise in December 2020)
• Consolidated 31 December 2021 cash-position equals €674 K.
  
  

OUTLOOK FOR THE ACCOUNTING YEAR 2021-2022

The Covid-19 related measures, continue to hamper our business development and growth. This is the case for our products directed towards the travel, leisure, and events industry. Despite this headwind, we continue to experience strong market interest in our product portfolio, resulting in solid Q2 and first half year 2021/22 revenue growth, and a growing pipeline of opportunities with major players in our industry. Based on the orders in hand, and the strength of the pipeline of opportunities, we confirm our expectation of revenue growth for the accounting year 2021/22, in the range of 40 to 50% compared to the 12-month period from July 2020 to June 2021. This means we are expecting our revenue to come in between €2.350 K and €2.550 K for the accounting year ending per 30 June 2022.

OPERATIONAL HIGHLIGHTS AND STRATEGY UPDATE

Strategy Update

GeoJunxion’s strategy remains solidly focused on creating "map agnostic” data products: digital geo-localized content, designed to be fully integrated into or overlaid on any commercial or open-source brand of maps, or to be utilised in developing smart solutions for a large variety of use cases, in different industries and market sectors.

GeoJunxion’s activities are directed towards establishing long-term relationships with our customers, through the creation of recurring business models rather than one-off opportunities. Although the relationship with clients frequently starts with a proof-of-concept or a custom one-off project, most of the Company’s efforts go into building value-added, dynamic content, requiring continuous and frequent updates to maintain and increase their value over time. This means that most of our proof-of-concept and one-off projects are a launch-pad for establishing a service or license contract, converting the initial activities into a recurring, more predictable and sustainable business model.

When executing projects, GeoJunxion typically also retains the Intellectual Property and ownership of the newly developed datasets and solutions, which can be subsequently resold to other customers. Thereby, leveraging the initial investment and creating a virtuous business cycle.

Our mission remains focused on improving road safety and contributing to a more sustainable world, reducing the impact on the environment through intelligent solutions enabling more environmentally conscious decisions.
Central to GeoJunxion’s strategy are:

• Cost effective sourcing, production, ingestion and aggregation of geodata.
• Flexible licensing models at competitive pricing.
• Direct delivery of dynamic, up-to-date content via APIs.
• Highly customised solutions and content creation.

Market Developments

COVID restrictions still significantly impacted the mentioned quarter everywhere and consequently such measures continued influencing the general willingness to spend and invest. Most of the companies remained cautious in their investments. However, clear signs of improvement have been confirmed in some industry sectors, like in the case of big IT companies or public organizations and Municipalities which want to increase the digitalization of their services or implement Smart Cities solutions.

Insurances and Insurtech, Transports and Logistics, Automotive and Autonomous driving sectors are also markets where GeoJunxion is looking for interesting opportunities. For the first two cases, GeoJunxion developed and released dedicated e-books, in support of marketing campaigns, through which we reached over 5.000 prospects around the world.

GeoJunxion’s strategy focused on map agnostic data solutions, fostering safety on the road and environmental sustainability, perfectly aligns to the recent market developments.

Business Development

In the quarter from October to December 2021, GeoJunxion maintained its primary attention on the High Alert Zones data suite, continuing the development and maintenance of the Eco Alert Zones, while studying new algorithms to develop improved smart polygons for enriching the Safety Alert Zones.

The clients’ interest and attention remain mainly on the Eco Alert Zones (EAZ), where we continued expanding our unique value proposition of fully attributed, global, and authoritative coverage of Low Emission Zones, Congestion areas and Restricted Traffic zones. Our attribution covers all types of vehicles: from passenger vehicles to light commercial vehicles up to 3,5T and heavy vehicles above 3,5T. EAZ continued to be the most requested data suite. Requests are received from existing customers and prospects, resulting in a solid pipeline of opportunities for this dataset.

Safety Alert Zones (SAZ) also started some new prospects. After the initial release of the Accident-prone Areas on the Netherlands and Germany, and the completion of the additional datasets in the Netherlands, Germany and Italy about Tunnels and Bridges, classified as potentially dangerous spots for drivers under certain weather conditions, we started a vast business campaign focused on attracting customers from the Insurance and Insurtech market, Transports and Logistics and Automotive. The results of such campaigns are expected during the coming quarters.

Our Outdoor Venue Plan and Location Intelligence Services have received great interest from existing and prospect customers. This interest comes from local Municipalities, engaged in their path to digitalization of their services. Here, this offering helps with the development of geographic information systems and can provide bespoke suites of data related to Smart Cities applications. We are also seeing a growing interest from businesses in travel, leisure, and tourism. This is despite currently being impacted by Covid restrictions. Potentially in preparation for the period after the release of the measures to restart "at full steam”.

Product Development

Product development during the second quarter of the fiscal year 2021/22 (October-December ‘21) was focused on the expansion of Eco Alert Zones dataset and related APIs, to enable an easier and more effective delivery to the clients. The expansion included the passenger and light vehicles datasets, as well as the heavy vehicles (above 3,5T) content.

These authoritative and dynamic datasets perfectly fit the GeoJunxion’s mission to foster safety and sustainability through location-aware content. This creates added value to B2B clients operating in the Automotive, Transport & Logistics, Real Estate, Utilities & Services markets, as well as public organizations.

At the end of December 2021, GeoJunxion’s Eco Alert Zones included over 2.500 areas in 29 Countries, divided in three major categories:

• Low Emission and Congestion Zones for passenger vehicles and light commercial vehicles up to 3,5T;
• Low Emission and Congestion Zones for Heavy Vehicles over 3,5T;
• Limited Traffic Zones for all vehicles.
  
  

These areas are monitored daily and updated as soon as any modification in their geometry or attributes is announced by the official governmental authorities responsible for their definition, implementation, and enforcement.

Eco Alert Zones – an example of environmental areas identified on a portion of the Italian territory.

Another significant achievement during the second quarter, was the completion of the Built-Up-Areas (BUA) premium dataset, i.e., boundaries enclosing densely populated and urbanized areas. A BUA provides the geographic shape of cities, towns, and villages. The coverage at the end of the year, was extended to 195 Countries around the world.

In December 2021, GeoJunxion completed the development of a bespoke Outdoor Venue Plan for Macana Maldives, a premium Diving Tour Operator. This includes interactive maps with geo-localized multimedia content about the Maldives Islands. We created interactive maps for 5 of their Cruise itineraries, as well as Virtual Tours to discover the details of Macana’s Yachts.

The combination of geo-localized interactive content and virtual immersive reality provides a unique and attractive combination to remotely show and promote the services offered by the Tour Operator to potentially customers. The interactive maps can be browsed and interrogated on a PC or smartphone, enabling a remote experience. It can also be a real-time live experience when on location through the display of the GPS position on the map itself. We believe this project can be the first of a series and a launching pad for an interesting business development in the travel & tourism industry. An industry, which is expected to restart growing as soon as the restrictions for the Covid pandemic will be over.

Outdoor Venue Plan – one of the 5 itineraries developed for Macana Maldives Diving Tour Operator.

Order Intake / Bookings developments

Orders for premium location data and Location Intelligence Services booked in the past quarters continued materializing into revenues in the current quarter. This was made possible due to diligent internal delivery procedures and the full commitment of the team towards product excellence and customer satisfaction.
The order intake for the quarter October-December 2021 showed an increase of +31% compare with the same period of the previous year. When we consider the entire semester, from June till December 2021; the growth in the order intake was about +36%, compared with the same period of the previous year.

ORGANIZATION

During the past quarter, changes have been made in the management team. The roles "Head of Marketing” and "Head of Business Strategy & Enablement” have been removed. An agreement has been negotiated with both persons related to the terms of their departure. All related costs have been fully accrued as extra-ordinary expenses in the Q2 reported results.

FINANCIAL POSITION

GeoJunxion progresses in turning its business around from a digital map supplier focused on one-off large deals, to a premium location content and location intelligence service provider with a subscription based, recurring "data as a service” revenue model. During the quarter GeoJunxion has continued to invest in product development, in strengthening its R&D and Operations teams. The results reported for Q2 and the first half of the 2021/22 financial year evidence this progress. Based on our current outlook, the available cash on hand is estimated to be sufficient to cover our operational requirements for at least the next 12 months.

APPOINTMENT OF EXTERNAL AUDITOR – Status update

GeoJunxion is one of 9 actively trading companies, quoted on Euronext Amsterdam stock exchange, that have been unable to present audited financial statements, because of unavailability of a PIE/OOB licensed auditor. The proposed legislation regarding the future of the Dutch Accountancy Sector (voorstel voor de Wet toekomst accountancysector), includes a proposed process whereby the NBA (Nederlandse Beroepsorganisatie van Accountants), at the request of the company, can assign a PIE/OOB licensed auditor and determine a reasonable fee for the auditing activities. The Management Board welcomes and supports this initiative and hopes that this proposal obtains the necessary support to be converted into legislation in a timely way.   In the meantime, we continue to connect with all PIE/OOB licensed auditors to find a solution.

RISK MANAGEMENT

Risk management is an integral managerial task. Our risk management and control procedures take into consideration the size of the company and the character of the business to identify the most significant risks which the company is exposed to. The risks identified are discussed on a periodical basis and mitigated or fully resolved, where possible. Such a system cannot provide absolute certainty that objectives will be realized. Neither can it guarantee prevention of potential cases of material mistakes, damage, fraud, or breaches of statutory laws.

The 2020-21 annual report, as published in October 2021, describes the principal strategic, operational, and financial risks. The risks and uncertainties described in the annual report are relevant and are deemed incorporated and repeated by reference in this report. There were no cases of material damage, fraud or breaches of law detected since issuing the Annual Accounts.

On the Social aspect, we continue to pay particular attention on preventive actions to limit exposure of our people to Covid-19, encouraging and supporting smart working from home, and establishing clear rules for those that need to be physically present in our offices. Our people are our key assets, and we do whatever we can to keep them safe and healthy.

BOARD OF MANAGEMENT STATEMENT

The Board of Management hereby declares that, to the best of its knowledge, the summarized Q2 (October – December and 1H (July – December) 2021 interim consolidated financial statements, drawn up in accordance with IAS 34 "Interim financial reporting”, represents a faithful rendering of the assets, liabilities, financial position, profit and cash flow of GeoJunxion NV and its subsidiaries as stated in the consolidated financial report, and that the Board report as included in this Q1 (July-September) 2021 Interim Financial report represents a faithful rendering of the information required in relation to item 5:25d subs 8 and 9 of the Dutch Financial Supervision Act.

GROUP STRUCTURE SIMPLIFICATION

During the past quarter the GeoJunxion group structure was significantly simplified:

• The AND Data India Private Ltd entity liquidation process was completed, with the approval of the NCLT court in Mumbai in November.
• The two Dutch dormant entities AND Publishers B.V. and AND Holding B.V. were liquidated and the registration of both entities at the Chamber of Commerce (KVK) were removed.

After this simplification, the group contains GeoJunxion N.V. and its 100% operating entity GeoJunxion B.V.

FORWARD-LOOKING STATEMENTS / IMPORTANT NOTICE

This document contains certain forward-looking statements with respect to the financial position and results of GeoJunxion. We have based these forward-looking statements on our current expectations and projections about future events, including assumptions regarding our present and future business strategies, operations, and the environment in which we will operate in the future. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, and you should not place undue reliance on them.

Many of these risks and uncertainties relate to factors that are beyond the company’s ability to control or estimate precisely, such as timing of placement of orders of our customers, exchange-rate and interest-rate fluctuations, changes in tax rates, regulatory and legal changes, the rate of technological change, the competitive landscape, political developments in countries in which the company operates and the risk of a downturn in the market.

The forward-looking statements contained herein speak only as of the date they are made. We do not assume any obligation to update any public information or forward-looking statement in this document to reflect events or circumstances after the date of this document, except as may be required by applicable laws.

Capelle aan den IJssel, 24 February 2022,
Ivo Vleeschouwers – CEO / CFO
Francesco Altamura - CBO

This is a public announcement by GeoJunxion N.V., pursuant to article 17, paragraph 1 of the European Market Abuse Regulation (596/2014). This public announcement does not constitute an offer, or solicitation of an offer, to buy or offer securities in GeoJunxion N.V.

Attachment

• Press Release - Financial Update 1H 2021-22_Geojunxion NV