Intellego Technologies (INT) investor relations material

Recent financial performance and outlook

• Achieved strong Q2 results with significant revenue growth, improved margins, and a cash balance of approximately €9 million at quarter-end.

• EBIT margin and operating cash flow have shown notable improvement, with Q2 EBIT margin reaching 71%, though future margins are expected to normalize as the organization expands.

• Revenue for the group reached about €40 million by the end of Q2, with a three to five-year target of €200 million in revenue and €60 million EBIT.

• Cash flow and liquidity are supported by a combination of cash in bank, credit-assured receivables, and unused credit, with EKN (Swedish Export Credit Agency) providing risk mitigation for larger export receivables.

• The board is considering options for excess cash, including acquisitions, buybacks, or dividends.

Market position, growth strategy, and customer base

• Operates in large, growing markets: UV disinfection, UV curing, and horticulture, with the disinfection market alone estimated at €1.6 billion annually.

• Collaborations with major industry players like Henkel and Likang are key to growth, though scaling these partnerships takes time due to long lead times and gradual order increases.

• Customer base is global and diverse, ranging from small buyers to large accounts with orders exceeding €1 million; about 60% of customers are recurring.

• Product development is driven by customer demand, with a focus on quality, reliability, and continuous innovation, including the rollout of a digital app system for dosimeter readouts.

• Regulatory trends in key markets (China, Canada, US) are expected to drive further adoption of quality assurance tools.

Operational structure, risk management, and capital allocation

• Maintains a lean, cost-efficient structure with minimal fixed office space, prioritizing R&D and growth over overhead.

• Employee retention is managed through individualized incentives, and hiring is planned across R&D, finance, sales, and marketing to support rapid growth.

• Receivables risk is managed through EKN and strong customer relationships; days sales outstanding have improved but remain a focus for further reduction.

• Revenue by region can fluctuate significantly due to the timing and location of large orders, with ongoing efforts to improve reporting transparency.

• Capital allocation priorities include hiring, potential acquisitions, and possibly returning capital to shareholders.