Unlocking Value Through Focus on Core Digital Services - Seite 2

Unifiedpost offers (i) an all-in-one solution for micro- enterprises and SMEs that consolidates financial tasks into one platform and (ii) an API integrations for our corporate clients under the brand name Banqup. Alongside this, eFaktura was launched in Serbia in 2023, our government licensable solution. Our solutions' modular capability provides the flexibility to meet specific customer requirements and broaden our target market.

We are focused on organically growing in this segment through our current footprint, upsells and upgrades, market share gains, and partner network strategy.

Our platform also positions us optimally for the upcoming regulatory wave which provides further upside opportunities to support scalability across multiple markets.

Financial framework

Revenue reclassification

We have reclassified our revenue segments to align with our strategic focus on the core digital services. Our previous revenue breakdown consisted of Digital Processing revenues (recurring and non-recurring) and Postage & Parcel optimisation revenue, where Digital Processing included core and hybrid services. Under the new reporting structure, the breakdown will be Digital services which represents our core business, and Traditional Communication services which represents hybrid digital and paper-based services.

Cash flow commitments

We remain committed to improving our cash flow position. The cost-cutting measures implemented over the last two years provide us with an improved foundation for future cash flow generation. This will be supported by EBITDA growth driven by organic revenue growth in our core digital services and higher gross margins in this division as well as a stabilised capex spend.

Our capital expenditure, in absolute terms, will be maintained at the level of the full year 2023, to facilitate strategic growth initiatives. Capex / Digital services revenue ratio is expected to decrease from 25-27% in FY 2023 towards ~6-7% in the mid-term.

FY 2024 objectives:

• Digital Service revenue growth: low teens
• Attaining free cash flow¹ breakeven under the current group structure (i.e. Pre disinvestments)

Medium-term objectives:

• Organic Digital Service revenue base case (Ex-regulation)
  • Revenue CAGR: mid-teens percentage growth
  • Drive gross margin close to ~70%
  • Capex as a ratio of Digital services revenue around 6-7%
• Regulation booster to be further quantified when mandatory laws in different countries are implemented.

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