The future of Telnet will be bright

The future of Telnet is bright, according to Mohamed Frikha. The dreams and ambitions of the holding company are huge and its projects are even bigger: space and nano-satellites, drones, electric cars, artificial intelligence and robotics. All future high -technological activity that the company will develop or intend to develop, the aim being to advance the group into the major leagues and ultimately benefit its shareholders and Tunisia.

This emerges in general from the ordinary general meeting (AGO) for the 2021 fiscal year, held on Monday May 16, 2022 at the IACE in Berges du Lac, under the leadership of its chairman of the board of directors Sami Khouaja ​​| and its managing director, Mohamed Frikha.

Telnet Holding generated, for the 2021 financial year, net income of 4.83 million dinars (MD) against 4.19 MD last year, up 15.05%. The company decided to distribute nearly 6.07 MD of total revenue. Thus, shareholders will be entitled this year to a dividend of 0.5 dinar gross per share for the 2021 financial year (double than a year earlier, note), to be paid from May 27, 2022.

Revenue, in part, increased by 5.91%, from 4.46 MD at the end of 2020 to 4.72 MD at the end of 2021. Revenue from participation (dividends from subsidiaries) increased by 40.59%, to reach 4.36 MD versus 3.10 MD between 2019 and 2020.

The holding company’s aggregate result stands at 9.19 MD by the end of 2021 against 7.3 MD in 2020, up 25.97%. Cumulative turnover rose 21.43%, rising from 39.75 MD by the end of 2020 to 48.27 MD by the end of 2021. A historic turnover close to 50 MD “Commented DG.

In detail, the research and development division in product engineering, which represents 82.04% of operating income at the end of 2021, recorded an increase of 24.53% compared to a year earlier, due to increasing business volume in electronic banking (+ 27.1%), multimedia activity (10.5%) and telecom activity (6.4%).

For its part, the telecom and network integration division, which represents 5.44% of operating income at the end of 2021, experienced an increase of 30.32%. The Product Life-cycle management (PLM) division, which represents 12.52% operating income at the end of 2021, recorded a decrease of 1.25%.

Group perspectives are very important. The future of Telnet, apart from the successes we have achieved in the past, will be very bright. I will describe projects for the future, important projects that we will undertake that are used in dealing with challenges. We will make achievements that will bring honor to our country, the launch of the first Tunisian satellite is only a small step. The Telnet company will be a model for Tunisia, actively participating and effective in technological change on a global scale. The company now represents for the western world and modern countries, a pilot company, at the level of the Arab world and Africa in all that technological development. “, Mr. hammer. Frikha.

Regarding future projects in which the company is working, they mainly discuss four areas: space and nano-satellites, drones, electric cars, artificial intelligence and robotics.

The first relates to everything associated with the galaxy and satellites. The CEO said: On March 22, 2021, Challenge One, the first Tunisian satellite was launched. Throughout the year, the company worked on validating the concept: setting up the necessary procedures for data exchange, validating the Internet of Things concept via the LoRaWAN telecommunications protocol. In 2022, the company moved to developing applications in various fields of agriculture, security, energy and environment. These applications will be validated in 2022, with the implementation of pilot applications. From 2023, Telnet will move to the stage of marketing services associated with Challenge One. At the same time, the company has received significant requests from several countries, to make developments equivalent to those carried out in Tunisia: the manufacture of nano-satellites for applications for these countries. We are on two concrete projects to be completed in 2022: one in Africa and one in the Gulf countries “.

Mohamed Frikha underlines: To show you the importance of product development in relation to service application: Telnet turnover at the service level is on average 15 million euros per year. However, building a satellite for a country could bring in 10 million euros. This will bring about a significant change in the turnover level and profitability level of the group. “.

And add: In 2023, we will launch the first constellation of nano-satellites on the Arab and African scale, i.e., 24 nano-satellites. For this purpose, we need to raise funds. Following internal discussions at the level of the Board of Directors, which decided to create in France a Telnet Space company, which will have offices in Paris and especially in the Aerospace Valley in Toulouse. This establishment in France of Telnet Space makes it possible to participate in research and development projects together with the European Space Agency. We are on a major Helio project. In addition to positioning ourselves in France, making it easier for us to raise funds to carry out the ambitious project of a constellation of satellites “.

The second axis is the drone, for which the company has already developed a prototype in collaboration with the Japanese. ” There, we were selected to participate in the national drone project. I think the exciting development and demand outlook across the Middle East and Africa is very important. “, specified by the DG.

The third axis is that of the electric car. Mr. Frikha points out in this context: “ Today, we are responsible for launching the country in everything electric car related. Today, 70% of tomorrow’s vehicles are software, which is Telenet’s specialty, in addition to an electronic and mechanical component, which is less compared to the complete product. Telnet took the initiative behind a group which has manufacturers in electronics and automobiles, to make Tunisia the country of electric car integrators. This is a project for the future, an important project for the country. We have set up a coordination group for this project and we will move forward to offer this platform and of course there will be license signatures to industrialists and car manufacturers in the future. “.

The fourth axis covers artificial intelligence and robotics. And to prove: We have skills in the mechanical department, because the advantage of Telnet is that it covers everything related to product engineering: embedded software, electronics and mechanics.

There are important fields of application, which can affect robotics in our daily lives but also in the field of space.

Achieving these goals requires collaboration. Here we also selected various foreign partners in various fields. We have a neutral position in all countries and what is important to us is the interest of Telnet and the interest of the country. We know that each country has its own strengths in technological development: artificial intelligence/United States, space/Europe and Russia, automotive/France and Germany for electronic parts – the Chinese in mechanical parts, drones/Japan “.

DG ensures: We are going through a major transition of engineering services, which is an activity that continues to grow significantly, 20 to 25% growth. Regarding product activity, the benchmarks and dimensions are different: the design of a nano-satellite represents ten million euros, while the turnover of engineering and subcontracting activity is 15 million euros. »

During the debate, analyst Sélim Riahi was amazed at the fact that the company, although working abroad, did not mention either the downgrading of Tunisia’s highest rating, the famous “CCC”, or the hard situation. On the contrary, the company spoke about record numbers. Here, DG explained that the company does not speak of the crisis and thinks that the country’s solution lies in technologies and engineering, because Tunisia’s difference from other countries is its skills.

Arab Financial Consultants (AFC) CEO Ferid Ben Brahim wondered about Telnet Space’s ownership percentage and the targeted capitalization. Here Mr. Frikha indicated that Telnet Space is a subsidiary owned by 70% of the holding company with a capitalization of 500,000 euros, which offers significant fundraising prospects. Mr. Khouaja ​​stressed, for his part, that the company aims to retain control of 70% of the shares even after the raising of funds.

As for how the company will proceed with fundraising, the two men did not want to say more, noting that it would first need to have the approval of the Financial Market Council and the Central Bank of Tunisia.

An analyst asked management about the consequences of the Ukrainian-Russian war on the company. Where, the CEO pointed out that the company is an independent private company, not playing politics and neutral. And remember that Russia with its Soyuz launcher offers the best value for money, very interesting compared to the competition.

He also recalled the joint project with Russia to send a Tunisian astronaut into space in 2023. The choice fell to an Air Force fighter pilot.

Russia’s cooperation is very good “, approval of the chairman of the board of directors.

It should be noted that the company intended to conduct elections for the director’s seat representing small shareholders, but the CMF only confirmed the candidacy of one person out of the four presented. Thus, Amine Bel Hadj Salah is the successful candidate for this position.

A good first, the company asked its minority shareholders to select two independent directors, among the three submitted. And Nidhal Ouerfelli and Slim Zeghal were elected to these positions.

The future prospects of the company are significant. Thus, Sami Khouaja ​​declared: “ We see that the challenges of Telnet are huge and the potential is enormous in terms of business and products. The four strategic axes will provide an important push for Telnet “.

In fact, the company expects 20% revenue growth in 2022, he said.

The Telnet Group has big ambitions and strives to accomplish them. It works on the four highly technological strategic axes of the future. Its management remains very optimistic for the future despite the national and international situation.


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