Kerlink : 2023 Full Year Results

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KERLINK Group is a leading global provider of connectivity solutions for designing, launching,

and operating public & private Internet of Things networks.

Its comprehensive product portfolio includes industrial-grade network equipment, best-of-breed network core,

operations and management software, value-added applications and expert professional services,

backed by strong R&D capabilities.

KERLINK specializes in enabling future-proof intelligent IoT connectivity for key verticals such as fleet management, transportation & logistics, retail, asset tracking, and smart metering, as well as smart agriculture & environment, and smart cities, buildings, and factories.

More than 250,000 KERLINK installations have been rolled out with more than 550 clients in 75 countries.

Based in France, with subsidiaries in the US, Singapore, India, and Japan, KERLINK is a founding and board member of

the LoRa Alliance® and the uCIFI Alliance™.

KERLINK is listed on Euronext Growth Paris under the symbol ALKLK.

KERLINK	@KERLINK_NEWS	LINKEDIN	YOUTUBE	[e-mail]
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F U L L Y E A R R E P O R T

U N T I L 3 1 D E C E M B E R 2 0 2 3

Limited liability company (Société Anonyme)

with capital of €2.017.474.29

Head office: 1 Rue Jacqueline Auriol, 35235 Thorigné-Fouillard

477 840 441 RCS RENNES

Legal Entity Identifyer: 969500SCFBLZQTVIG483

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AT KERLINK,

WE'RE HELPING TO PRESERVE WILDLIFE THROUGH

OUR IOT SOLUTIONS

TO LIVE IN A WORLD THAT'S MORE RESPECTFUL OF OUR

BEAUTIFUL PLANET.

M O R E I N F O R M A T I O N

KERLINK

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T A B L E O F C O N T E N T S

PROFILE & GOVERNANCE

CSR - CORPORATE SOCIAL RESPONSABILITY

MANAGEMENT REPORT

CORPORATE GOVERNANCE REPORT

IFRS FINANCIAL STATEMENTS

CERTIFICATE OF THE PERSON RESPONSIBLE

STATUTORY AUDITOR'S REVIEW REPORT

6

15

51

63

75

120

71/116

#ProviderOfIoT

P R O F I L E & G O V E R N A N C E

A W O R D F R O M T H E C H A I R M A N

• 2023 WILL HAVE BEEN A YEAR OF TRANSITION FOR KERLINK. IT WAS A YEAR IN WHICH WE COMPLETELY RETHOUGHT OUR OFFERINGS TO MEET THE NEEDS OF BUSINESSES DEPLOYING IOT NETWORKS AND THUS RETURN TO GROWTH, IN A MARKET THAT IS ONCE AGAIN DEVELOPING FAVOU- RABLY. WE HAVE ALSO LOWERED OUR BREAKEVEN POINT BY REDUCING OUR PAYROLL TO PREPARE FOR A RAPID RETURN TO OPERATING PROFITABILITY.

AS WE ENTER THE 2024 FINANCIAL YEAR, WE ARE CONTINUING TO INVEST IN TECHNOLOGICAL INNOVATIONS TO EFFECTIVELY SERVE THE NEEDS OF BUSINESS OPERATING DEPARTMENTS. INNOVATION HAS ALWAYS BEEN AT THE HEART OF THE GROUP'S DNA AND STRATEGY. KERLINK OFFERS THE FIRST FULLY AND TRULY PLUG & PLAY GATEWAYS, INTEGRATES EDGE TECHNOLOGY INTO ITS PRODUCTS, AND OFFERS NEW IOT SOLUTIONS THAT MEET THE NEEDS OF MNOS (MOBILE NETWORK OPERATORS) AND ISPS (INTERNET SERVICES PROVIDERS). FROM A MARKET POSITIONING POINT OF VIEW, OUR GATEWAYS, ALREADY RECOGNISED FOR THEIR INDUSTRIAL QUALITY, NOW STAND OUT FROM THEIR COMPETITORS BY INCORPORATING THE HIGHEST-PERFORMANCE SECURITY FEATURES ON THE MARKET AND ENSURING COMPATIBILITY WITH THE OFFERINGS OF THE MAIN DECENTRALISED LORA NETWORK SERVER (LNS) PROVIDERS. .»

Kerlink solutions currently offer the best quality/safety/price

ratio on the market.

So we are resolutely looking to the future, with a view to winning

back which should bear fruit this year.

William GOUESBET, CEO KERLINK Group

• BUILD A SMARTER WORLD, SERVE HUMANITY, PROTECT THE ENVIRONMENT.

FOR THE INTERNET OF THINGS, WHERE COMMUNICATION IS EVERYTHING, WE CREATE THE LINK

TO SHAPE YOUR FUTURE. »

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THE BOARD OF DIRECTORS

P R O F I L E & G O V E R N A N C E

Kerlink's Board of Directors validates the company's strategy and general policy, settles through its deliberations any question concerning the smooth running of the company in accordance with the powers conferred by law, the Articles of Association and the Board of Directors' internal rules, approves investments and ensures the quality of the information provided to shareholders in compliance with ethical standards and transparency.

The Board is made up of people with complementary skills and experience.

Chaired by William GOUESBET, the Board of Directors met ten times during the 2023 financial year.

William GOUESBET		Christian QUEFFELEC
Chief Executive Officer		Director
Chairman of the Board

Yannick DELIBIE		Robert FRATI
	Director
Deputy General Manager
Director

Catherine FAILLIET

Director

61years

AVERAGE AGE OF DIRECTORS

EXECUTIVEREMUNERATION

BOARDCOMMITTEE

60%

ADMINISTRATOR AS INDEPENDANT

Meeting in 2023 : 9	Meeting in 2023 : 2
Participation rate: 95%	Participation rate: 100%

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P R O F I L E & G O V E R N A N C E

H I G H L I G H T S O F 2 0 2 3

DEFINITIVE ACQUISITION OF THE SHARES ALLOCATED FREE OF

CHARGE IN 2021

JANUARY 2023

On January 20, 2023, 32,750 shares allocated free of charge under the free share allocation plan set up by the Board of Directors on January 20, 2021 (out of a total of 36,750 shares initially

allocated) were definitively acquired by 65 beneficiaries (out of the 79 initial beneficiaries), employees and corporate offi-

cers, who met the vesting conditions provided for in the plan. A capital increase of 8,842.50 euro, through the issue of 32,750 new shares with a par value of 0.27 euro each, was therefore recorded, bringing the share capital to 2,017,474.29 euro.

Of the 32,750 shares definitively acquired, 1,250 were acquired

by Mr. William GOUESBET and 1,250 by Mr. Yannick DELIBIE, it

being specified that, as beneficiaries and corporate officers,

the latter are required to keep the free shares thus acquired in registered form until the termination of their respective func- tions.

GLOBAL ECONOMIC CONTEXT

Main impact of the global economic situation on the Group's business :

1. Impact on the global electronics market, particularly on supplies of electronic components such as semiconduc- tors;
2. Increase in Kerlink's production and infrastructure mana- gement costs due to rising energy costs;
3. The war in Ukraine and geopolitical tensions contributed to economic uncertainty which had a significant negative effect on all financial markets;
4. Falling cryptocurrency markets in 2022.

CONTROLLING OPERATING COSTS

The Group has continued to keep a tight rein on its external costs and is reducing its workforce in the first half of 2023.

GAIA RESEARCH CAMPAIGN - ETHIFINANCE

Gaïa-Index, a subsidiary of EthiFinance and a major player in ESG (Environment, Social and Governance) rating of French listed SMEs and SMIs, has awarded Kerlink a score of 69/100for the Gaia 2023 campaign on 2022 data. As a reminder, the Group entered the 2021 Gaïa ranking with a score of 62/100 above the sector average (55/100).

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P R O F I L E & G O V E R N A N C E

AGREEMENT ON THE RESTRUCTURING DEBT

On October 23, 2023, the Group announced the finalisation of an agreement with all its banking partners for the restructuring of its financial debts.

The negotiations initiated with the banking partners on 16 May 2023 resulted in a comprehensive agreement on 20 October 2023. The Kerlink Group has thus obtained the following adjustments:

• For loans subject to amortisation as of 16 May 2023: capital exemption of loan instalments for a period of 18 months from 16 May 2023, the maturity of said loans having been extended by 18 months;
• For a loan already deferred for amortisation on 16 May 2023: an
  18-month extension of the maturity, with no additional excess.

The Group has also frozen the payment of its tax and social security instalments in respect of the period from May 2023 to August 2023 and has obtained a deferral of the debt settlement of €733k thus constituted, over 24 months, from 20 November 2023.

P R E S S R E V I E W

2023.02.16:Kerlink appoints Kuntal Desai to drive growth in India

2023.07.06:Kerlink and The Things Industries announce strategic partnership on contactless configuration solution for LoRaWAN® IoT networks.

2023.10.05:Kerlink and Avnet announce the signing of a distribution agreement to boost LoRaWAN® deployments in the Asia-Pacific region (APAC).

2023.11.29:Kerlink and OrbiWise work together to ensure customers can deploy and operate their networks quickly and easily.

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P R O F I L E & G O V E R N A N C E

OFFER AN END-TO-END SOLUTION

TO OUR CUSTOMERS

IN THREE PRIORITY AREAS

SMART CITIES

& QUALITY OF LIFE

CHALLENGES FOR

CITIESBY 2050

HEALTH	PROTECT
SAFETY	MONITOR
ENVIRONMENT	ANTICIPATE
ECONOMY	ACT

SMART BUILDING

& INDUSTRY

INNOVATIONS FOR

INDUSTRY AND

BUILDINGSBY 2030

EFFICIENCYINNOVATE

SAFETYMONITOR

HEALTH GUARANTEE

SUSTAINABILITYACT

SMART AGRICULTURE

& ENVIRONMENT

GROWING CHALLENGES

FOR AGRICULTURE

AND THE ENVIRONMENT

HEALTHPROTECT

SAFETYMONITOR

ENVIRONMENTANTICIPATE

(1)
70%	Collect data
of the world's population
will live in urban areas	and understand
(2)
+50%	Visualise
increase in water demand,
which will make it	and simulate
a geostrategic resource
(3)
+55%	Analyse
of global greenhouse gas	and decide
(GHG) emissions

50%(1)

of the energy will be consumed
by commercial buildings
(2) in the world
30% of this energy is
currently wasted
Up to90%
(3)
of his time an individual
is exposed to indoor pollutants,
which reduces their attention
and increases the risk of disease
33% of the food(4)
20%of medicines
are lost or wasted	(5)
each year in the world

Collect data and understand

Visualise and simulate

Analyse and decide

By 2030

Water scarcity will lead to displacement

of 24 to

700 millionpeople(1) Collect data

and understand

By 2050
10 billion
people will increase demand	Visualise
for food quantity and diversity
by more than50 %(2)	and simulate
1,6 billion(3)	Analyse
people will be at risk
of flooding	and decide
50%(4)
of the planet's species
could become extinct

KERLINK SOLUTIONS

at the heart of the digital transformation of cities

KERLINK SOLUTIONS

driving innovation

for buildings

and industries

KERLINK SOLUTIONS

for intelligent agriculture

and environmental

protection

Retail	Energy
Infrastructure
Public services	Transport Buildings
Cultural areas	Urban equipment

Health

Food

Air quality Pollution

Climate risks

SOME

USE CASES

Sources:

1/ https://population.un.org/wup/Publications/Files/WUP2018-Highlights.pdf - 2/ https://www.oecd.org/env/indicators-modelling-outlooks/49846090.pdf

3/ https://www.oecd.org/env/indicators-modelling-outlooks/oecdenvironmentaloutlookto2050theconsequencesofinaction-keyfactsandfigures.htm

kerlink.com

l© Kerlink 2022

Energy optimisation	Surveillance	Precision agriculture
of buildings and
Asset & equipment	Water & soil management
real estate	Equipment & livestock
management
	management	Pest control
	Quality of life at work

Supervision of the	Air quality monitoring
production tool	Pollution control
Equipment maintenance	Climate risk management
Inventory management Supply chain	Protection of endangered species
SOME	SOME
USE CASES	USE CASES

Sources:
1/ https://www.ey.com/en_gl/real-estate-hospitality-construction/smart-buildings-why-energy-management-matters	Sources:
2/ hhttps://www.epa.gov/ghgemissions/inventory-us-greenhouse-gas-emissions-and-sinks-1990-2018
3/ United States Environmental Protection Agency, Managing air quality - air pollutant types, October 2018, https://www.epa.gov/air-quality-management-process/managing-air-quality-air-pollutant-types	1/ https://www.unwater.org/publications/water-changing-world - 2/ http://www.fao.org/3/a-i6583e.pdf
4/ http://www.fao.org/3/i3347e/i3347e.pdf - 5/ https://www.wri.org/publication/reducing-food-loss-and-waste	3/ https://public.wmo.int/en/resources/united_in_science - 4/ https://www.nationalgeographic.com/animals/2019/09/poll-extinction-public-slow-extinction

kerlink.com		kerlink.com
l© Kerlink 2022		l© Kerlink 2022

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