IQGeo : Annual Report 2023

Telecommunications and utility operators are "Building Better Networks" with IQGeo's award-winning software solutions. The ability to powerfully model any network requirement, integrate every system and data source, and support field and office teams with continual innovation is helping operators create the networks of the future. Our solutions ensure greater cross-team collaboration and process efficiency throughout the network lifecycle, from planning and design to construction, operations and sales.

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Contents

Strategic report

1. Our vision, purpose and strategic focus
2. At a glance

1. Investment case

1. Chair's statement

1. IQGeo's five-year anniversary

1. Market opportunity

1. CEO's statement

1. Our products

1. Our business model

1. Our strategy

1. Strategy updates

1. Key performance indicators

1. Sustainability

1. S172 statement

1. Our stakeholders

38 Chief Financial Officer's statement

42 Principal risks and risk management

Corporate governance

46 Board of Directors

1. Corporate governance report

1. Audit Committee report

1. Remuneration Committee report

1. Nomination Committee report
2. Directors' report

60 Directors' responsibilities statement

Financial statements

1. Independent auditor's report

1. Consolidated income statement

1. Consolidated statement of comprehensive income
2. Consolidated statement of changes in equity
3. Consolidated statement of financial position
4. Consolidated statement of cash flows
5. Notes to the consolidated financial statements

1. Company balance sheet
2. Company statement of changes in equity
3. Notes to the Company financial statements

IBC Company information

Our vision

At IQGeo we are enabling digital equity for communities around the world with the deployment of full fibre broadband, and working to meet the challenges of net-zero carbon emissions by creating the renewable energy networks of the future.

Our purpose

IQGeo's Integrated Network and Adaptive Grid solutions for telecom operators and electric utilities are designed to support the entire network lifecycle from initial planning through construction, maintenance, sales and outage response. Our solutions reduce process costs across the lifecycle, accelerate time-to-revenue and create more resilient networks through improved data quality.

Throughout 2023 the telecom and utility industries continued to make major capital investments in broadband rollout and electric grid modernisation. In North America alone, the Fiber Broadband Association recorded another record year with over nine million homes passed with new fibre

Highlights

Exit annual recurring revenue (£m)

£21.3m

+41%

and the Biden administration announced government funding of more than $42 billion to support nationwide digital equity. At the same time, electric operators

5.3

15.1

8.2

21.3

are ramping up investment to redesign and modernise their grids to accommodate renewable and distributed energy generation and meet national targets for net-zero carbon emissions. With these global megatrends set to continue for the coming decade, they provide a strong long-term market opportunity for IQGeo's award-winning network management solutions.

IQGeo's end-to-end SaaS network management software provides a single platform across planning, design, construction, operations, maintenance and sales processes. We deliver the industry's most flexible system integrations and digital workflows to support everything from enterprise scale deployments to the needs of private fibre and regional utilities. Our desktop and mobile solutions create and maintain an accurate view of complex telecom and utility network assets that is easily accessible by anyone, wherever and whenever needed.

In-year recurring revenues (£m)

£15.7m

5.810.6

3.2

Total order intake (£m)

£57.2m

2023

+48%

15.7

2023

+40%

57.2

2023

Adjusted EBITDA (£m)

£6.6m

+247%

6.6

2023

Telecom network operators and electric utilities recognise the imperative to transform their ageing networks with new fibre infrastructure and modernised grids. They continue to make major investments in modern technology to achieve their commercial revenue goals and to meet carbon emission regulatory requirements.

01.

Compelling market drivers

02.

World-class products

Upgrading these networks will take decades with billions in investment and the IQGeo network management software is well positioned to be a strategic component to the long-term success of these businesses.

As large scale capital project funding continues to grow from government initiatives and private investors for universal broadband and electric grid modernisation and decarbonisation,

IQGeo product innovation is key to our business success and in 2023 we launched our Integrated Network and Adaptive Grid solutions for telecom operators and electric grid utilities, and we led the industry with the release of

In 2023 our SaaS solutions have been firmly established as a market leader within the fibre industry and our utility solutions are gaining market share and building momentum as we continue to secure new high-profile customers.

IQGeo is well positioned to capitalise on these global industry megatrends and capture greater market share in existing and new regions.

Read more on page 10

the Insight, Professional and Enterprise editions of our award-winning Network Manager products.

Read more on pages 16 to 18

03.

Experienced team

04.

Strong financials

In 2023 we continued to expand the breadth and depth of the IQGeo team with the appointment of a new Chief Technology Officer and the addition of 60 new colleagues across virtually every area of our business.

IQGeo delivered against all of our key financial metrics in 2023 and we continue to build a resilient recurring revenue stream with our software subscriptions. This is being achieved through our "land and expand" business model that provides a healthy

Our growing reputation for market success is helping us attract a highly talented group of technology and industry professionals.

Read more on pages 36 and 37

mix of new project sales and the expansion of software subscription and service revenue with existing customers.

Read more on pages 26 to 29

05.

Growing market momentum

I am delighted to report that

2023 proved to be an extremely successful year for IQGeo, delivering strong financials, material product developments and an organisation which is now rapidly accelerating and broadening its market opportunity.

This year we celebrated five years since the launch of the IQGeo brand and operational focus. We started this process with some best-in-breed products but needed to establish organisational readiness to truly address the opportunities that we felt would develop. Over that period, we have remained focused on our industry segments, developing our products and people aimed at addressing the pressing industry needs for Integrated Network and Adaptive Grid solutions in the telecom and utility sectors. These industries have continued to grow and demand modern tools to solve new and existing problems.

Our new customer wins and retention rates across all our markets from global blue-chip customers to smaller regional providers remain very high. In addition, many of those same customers continue to expand the number of software users and range of products and applications. All of which provides positive testament to our strategy.

Paul Taylor

Chair

Record order intake (£m)

£57.2m

We continue to see the markets we serve demanding modern adaptable tools to support field and back-office solutions. Customer wins invariably come

from those needs and requirements with many seeing material solution replacements where those current strategies are no longer capable of meeting either external or internal requirements. As such, our customer profile typically develops as demand for more users, new products and functionality spreads across varying aspects of their business.

Our acquisitions in prior years have been fully integrated and have continued to allow us to address a wider market opportunity and provide existing customers with more product and functionality. Whilst we remain focused on the strong organic growth opportunity, we will as in previous periods consider carefully those opportunities that may well be served by market consolidations.

Adjusted EBITDA (£m)

£6.6m

Results overview

Strong financial results in year delivered revenues of £44.5 million

(2022: £26.6 million) a growth of 67%.

Organisation

We have continued to establish the teams across the globe to make sure we are able to develop customer relationships with cultural, regional understanding and local/infield support. In 2023 we saw the expansion of our Asian region with the opening of an office in Kuala Lumpur. Headcount has been carefully increased in the year to 217 (2022: 180). This expansion continues to enhance our management team and those skills needed to understand the challenges our customers and industries face.

Exit annual recurring revenue (£m)

£21.3m

Outlook

We entered 2023 with a strong conviction for the opportunity we had in front of us, and those opportunities and convictions remain as we exited the year. Against a backdrop of fast-growing market opportunities a talented organisation and a set of strong financial attributes, we remain confident that we can continue to meet growing market demand.

Finally, I would like to thank our customers who entrust their material operational needs with our products and people, our shareholders for their continued support, and our team at IQGeo.

Paul Taylor

On 1 January 2024, we celebrated our five-year anniversary as IQGeo. While this is a major milestone with many significant achievements, the roots of the company and our software technology run much deeper than this half-decade. The original geospatial software has a rich history of development under the Ubisense brand prior to its disposal on 31 December 2018, and we have since added decades of industry and technology experience through the acquisitions of OSPInsight in

2020 and Comsof in 2022. Thanks to our dedicated and talented team, the IQGeo software portfolio and business has matured dramatically over the last five years as we have evolved from an industry challenger to a leader, and we look forward to even greater achievements in the future.

IQGeo launched

2019