Txt E-solutions S.p.a. · MIL:TXT
Txt E-solutions — TXT Group — European Midcap Event 2024
31 slides from Txt E-solutions's conference presentation, Jun 6, 2024
Slide 1: TXT Group: Corporate overview
1 TXT Group: Corporate overview European Midcap Event 6 June 2024 Daniele MISANI, CEO Andrea FAVINI, IR
Slide 2: Your Global Digital Enabler
2 TXT has always been a pioneer in Digital Innovation. Founded in 1989, since 2000 it has been listed in Milan Stock Exchange, Star Segment. In 2018 a new course has been started, with a plan of accelerated and sustainable growth. TXT is an Ecosystem of vertical excellences and digital competences.
Slide 3: Where we are
Where we are 3 USA CANADA UK NL CH DE Seattle Montreal Bristol Delft Chiasso Köln Stans Berlin €224m Revenues FY 2023 Lucerna Munich Solid Financial structure SINGAPORE Guaranteed by operating excellence & innovation July 2000 Listed on the Italian 20+ Stock Exchange Locations worldwide STAR segment
Slide 4: Ecosystem of Excellences
4 Ecosystem of Excellences TXT Group has a solid network of multidisciplinary competences and vertical excellences, developed in industries in which we are the leader. We arrange them in a dynamic and productive way, according to the evolution of the markets. From consulting, to design and implement
Slide 5: Market position: Reliability + Agility
Market position 5 TXT today is an emerging player in the digital innovation market, competing against tech giants, in Italy and Internationally, by aggregating highly specialized digital boutiques and established businesses. TXT Group TXT Company Reliability + Agility Size Specialization Specializat
Slide 6: Segmentation by Offering
Segmentation by Offering 6 Artificial Intelligence Software Engineering Digitization & Servitization of products Extended Reality Cloud & Data Analytics Software Engineering v % EBITDA ~ 12% Cybersecurity & 65% of Business * Sustainability Information Risk & ESG Management platforms Smart Solutions
Slide 7: KPIs: FY-2023 by Offering
7 FY-2023 results show resilience in the organic growth of business and an increase in the operating margin (EBITDA), with synergies and M&A contribution that are expected to generate additional growth. _KPIs: FY-2023 by Offering EBITDA margin for FY 2023 reached the target set at more than 14% for.
Slide 8: A Successful Story
A Successful Story 8 Extend Smart Solutions portfolio in the Aerospace Software Engineering Solutions, Digital Advisory & Defence market A new plan of and Smart Solutions and increased portfolio offering competencies in Accelerated Growth consolidation, the Software 2024 strengthening the Engineerin
Slide 9: Historical Trading Results (2018-2023)
Historical Trading Results (2018-2023) 9 After the divestment of the retail division in 2017, revenues and EBITDA Margin have benefit from TXT Group's growth strategy driven by diversification and investments in innovation and synergies 15.1% New TXT after divestment of Retail division in 2017: 14.8
Slide 10: Focus on Profitable Growth
Focus on Profitable Growth 10 Growth pillars: External Internal • M&A: after 20+ acquisitions completed in the last 6 years, • Commercial & Technological synergies: leveraging strong track continuous focus on sustainable investments (5-8xEBITDA) with the record of double-digit organic growth recorde
Slide 11: Offering & Markets
11 OFFERING & MARKETS
Slide 12: Core Markets & Incidence
Core Markets & Incidence 12 12 We are expanding across different markets, with a growing footprint in Aerospace, Aviation, Defense, Industrial, Automotive, Telco, Government and Fintech, by leveraging more than 2000 experts, competence centers in AI, cybersecurity, XR, IoT. 26% Aerospace & Defense 8
Slide 13: Go-to-Market
13 Ecosystem of multidisciplinary competences and vertical excellences, customers can rely on experts. Go-to-Market Licenses, Subscription and SaaS Smart Solutions market-ready for specific verticals in customers’ core We accelerate the customer’s digital transition processes. by providing advanced
Slide 14: Smart Solutions for the Aerospace & Industrial Market
Smart Solutions for the Aerospace & Industrial Market 14 Our range of commercial off-the-shelf software solutions is the result of more than two decades of working with and carefully listening to a highly diverse customer base from the aerospace & defense industries. It is based on a strong commitme
Slide 15: Fintech Smart Solutions
Fintech Smart Solutions 15 Our FinTech smart solutions range from best-in-class financial software for the management of financing to innovative platforms for different mission-critical needs as Risk management and Digital payments, offered as SaaS and designed to be responsive with unique customer
Slide 16: Financial Highlights & Guidance
16 _Financial Highlights & Guidance
Slide 17: Revenues €224 Mn, pro-forma ~235 Mn
17 FY-2023 results show double-digit organic growth of revenues, boosted by synergies Revenues Pro-Forma Solid Organic €224 Mn Revenues Growth in FY-23 +48.8% ~235 Mn +11.9% vs. FY-2022 +€18 Mn
Slide 18: EBITDA €31.6 Mn, Net Profit €15.5 Mn
18 Solid profitability recorded in FY-2023 leveraging synergies and operational efficiency EBITDA Net Profit Dividend (consolidated) (consolidated) (proposal) €31.6 Mn €15.5 Mn €0.25 / share Equal to 14.1% of revenues +29% vs. FY-2022 +39% vs. 2023
Slide 19: Value creation: FY-23
19 _Value creation: FY-23 R&D INVESTMENTS (fully expenses in the period) € 9.0Mn FY-23, +18% vs. FY-22 SMART SOLUTIONS REVENUES € 43Mn FY-23, +12% vs. FY-22 INTERNATIONAL REVENUES € 48Mn 21% of total revenues SUSTAINABLE DEBT (ADJUSTED) + TREASURY SHARES FOR FINANCING GROWTH € 31Mn (Net Debt Adjuste
Slide 20: FY-2023 Investment Milestones – Strategic M&A
FY-2023 Investment Milestones – Strategic M&A: 20 Investment Equity & Asset Innovative Capital Increase Minority with Type of Deals Technology (Minority stakes) put/call options 2 2 2 1 N. Of Deal FastCode; Arcan; Las Lab; PayDo EGS Paladin AI Simplex Boost Software Increase specialized TXT to act a
Slide 21: FY-2024 Guidance
FY-2024 Guidance 21 Target Revenues Target EBITDA Continuing Organic Growth FY-24 Margin FY-24 M&A plan > 10% > 14% Net Debt < 2xEBITDA
Slide 22: KPIs: Q1-2024 by Offering
22 KPIs reported in Q1-2024 show continuity in the accelerated growth plan of TXT based on the mix of organic _KPIs: Q1-2024 by Offering growth of business, M&A contribution and synergies that are expected to generate additional growth and benefits during the year: EBITDA margin target for FY 2024 s
Slide 23: Financials
23 FINANCIALS
Slide 24: FY-2023 details
24 € thousand 2023 % 2022 % Var % REVENUES 224,394 100 150,758 100 48.8 Direct costs 143,112 63.8 94,309 62.6 51.7 GROSS MARGIN 81,282 36.2 56,449 37.4 44.0 Research and Development costs 9,035 4.0 7,634 5.1 18.4 Y-2023 details Commercial costs 24,227 10.8 14,149 9.4 71.2 General and Administrative
Slide 25: Q1-2024 details
25 € thousand Q1 2024 % Q1 2023 % Var % REVENUES 67,127 100 52,312 100 28.3 Direct costs 45,327 67.5 34,505 66.0 31.4 GROSS MARGIN 21,800 32.5 17,807 34.0 22.4 Research and Development costs 3,342 5.0 2,210 4.2 51.2 1-2024 details Commercial costs 4,836 7.2 4,573 8.7 5.7 General and Administrative c
Slide 26: Net Financial Debt: solid financial position
26 .000 Euro 31.03.2024 31.12.2023 Var olid financial position Cash (40,671) (37,927) (2,744) Trading securities at fair value (25,758) (24,058) (1,700) NET Financial Debt: Other Short Term Financial Assets (400) (810) 410 Short term Financial Debts 55,623 57,654 (2,031) Short term Financial Debts (
Slide 27: Balance sheet: details
27 € thousand 31.03.2024 31.12.2023 Change Intangible assets 84,905 85,900 (995 ) _Balance sheet: details Tangible assets 20,994 20,430 564 Other fixed assets 24,236 24,462 (226 ) Fixed Assets 130,135 130,792 (657 ) Inventories 19,747 18,733 1,014 Trade receivables 72,841 74,346 (1,505 ) Other short
Slide 28: Shareholding Structure & Market Data
28 Shareholding Structure & Market Data
Slide 29: Shareholding structure
29 Shareholding Structure March 31st, 2024* Dividends and Treasury Shares Repurchase (€m) hareholding structure * Latest Public Data Available as of 31 Mar. 2024 Treasury 18 16,3 15,4 Shares; 10% 16 L.V.O. Global Asset Laserline 14 4,6 Management S.A. SpA; 30% 12 3% 10 8 6,8 13,3 5,3 5,5 6 11,7 1 4
Slide 30: Q&A
30 Q&A
Slide 31: Ls TXT
Ls TXT