Slide 1: TXT e-Solutions Corporate Overview
TXT e-Solutions Corporate Overview STAR Conference May 2020
Slide 2: Disclaimer
Disclaimer The material in this presentation has been prepared by TXT e-solutions (“TXT”) and is general background information about TXT’s activities current as at the date of this presentation. This information is given in summary form and does not purport to be complete. Information in this prese
Slide 3: Leadership Team
Leadership Team Alvise Braga Illa Enrico Magni Misani Daniele Eugenio Forcinito Chairman Group CEO Mananging Director Group CFO Founder of TXT, Alvise has a A seasoned entrepreneur with + 20 years in TXT, strong +20 years experience in the clear vision of the future: no a solid track record in drivi
Slide 4: Company Overview
Company Overview
Slide 5: TXT Group At a Glance
TXT Group At a Glance PIONEER OF SOFTWARE TECHNOLOGIES, we offer a mix MARGIN EXPANSION of best-in-class proprietary products & specialized services 11.9% FY19 EBITDA margin, +2.4pp YoY 30+ YEARS OF EXPERIENCE IN AEROSPACE, defence RECURRING REVENUE GROWTH and aviation sectors with high specialized
Slide 6: TXT Group's digital foundations
TXT Group’s digital foundations TXT Group’s technological excellence centres enable best-of-breed digital solutions: Real-Time Software Modelling & Simulation Cloud AI / Machine Learning Industrial IoT Blockchain Big Data Analytics Extended Reality We are leveraging our industry know-how and tech-ca
Slide 7: Key Milestones
Key Milestones FinTech: Start-up TXT Working Capital Solutions FinTech R.: €3mn in FY17 Banking & Finance FinTech: New start-up for the Supply M&A R.: €9mn in FY18 Chain Finance market Aerospace & Aviation RegTech: Innovative Start-up R.: €7mn in FY15 1989 2000 2016 2017 2018 2019 2020 Other Corpora
Slide 8: Our transformation path...
Our transformation path... Over the period 2017-2019, M&A contribution was FinTech incidence increased thanks to outmatched by Organic and Software Growth M&A and Organic Growth 59,1 35,9 59,1 8,2 3,5 23% 9,7 20,4 35% 35,9 1,8 8,2 77% 38,7 65% 27,6 FY17 FY17 Organic Software Organic growth M&A Finte
Slide 9: Revenues and Margins Growth
Revenues and Margins Growth Strong Revenues from Software and Profitability Growth Revenues from Software * EBITDA Revenues (€mn) (€mn, % on total revenues) (€mn, % on total revenues) 6,9 7,0 59,1 +65% +73% +102% 35,9 4,00 3,5 11,7% 11,9% 11,2% 9,7% 2017 2019 2017 2019 2017 2019 The perfect mix of o
Slide 10: TXT at the time of COVID-19 outbreak
TXT at the time of COVID-19 outbreak Still early to define the overall impact of the crisis, but the mitigation plan put in place is already delivering results thanks to: • Smooth and quick transition to remote working of the entire workforce • Job rotations / Government funding to minimize the impa
Slide 11: Interim Results: Q1 2020
Interim Results: Q1 2020 Results of Q1 2020 show a strong growth in Revenues & EBITDA, with software revenues increasing +50,2% YoY Revenues from Software EBITDA Revenues (€mn) (€mn, % on total revenues) (€mn, % on total revenues) 16,3 +37% 11,9 2,3 10,5 2,0 65% +50% 1,5 +52% 8,9 1,3 75% 14,1% 12,1%
Slide 12: Business Overview
Business Overview
Slide 13: TXT Group's Divisions
TXT Group’s Divisions Aerospace & Aviation FinTech 65% of FY19’s revenues 35% of FY19’s revenues Core markets Diversification Industrial, Manufacturing, Automotive & Transportation <10% Public Sector, Treasury <5% 13
Slide 14: Aerospace & Aviation
Aerospace & Aviation: Proprietary products, Solutions and Specialized services On-board Software 28% TOP CUSTOMERS Product Development Preliminary Design 7% & Evaluation Product 21% Configuration Customer Engineering & Manufacturing Digital 10% Manufacturing Training & 25% Simulation Aircraft Operat
Slide 15: FinTech
FinTech: New Proprietary Solutions and Platforms, Best-in-class SW quality services Best-in class solutions for: test strategy, TOP CUSTOMERS development, execution, automation, and First mover & Italian Software Quality for test environments administration. leader in Software 75% Services Strong te
Slide 16: Some Examples of TXT's Best-in-class Solutions
Some Examples of TXT’s Best-in-class Solutions Aerospace & Aviation FinTech Anti Money Laundry, Anti- Extended Reality Collaboration & XR Digitisation of daily transactions Corruption, Anti-Terrorism • Pacelab WEAVER: the best-in-class • Product configuration with • Modular software solutions for ri
Slide 17: Growth Strategies
TXT Growth Strategies
Slide 18: An Evolving Offering
An Evolving Offering Historical Activities Extending the Offering We started from specific industry process domain to: • We became Int’l, specialized, multi-niche provider of proprietary engineering platforms delivering worldwide; Offering • develop deep knowledge of different processes in single ni
Slide 19: Growth Strategy - Highlights
Growth Strategy - Highlights • Increased recurring revenue from software licences Retain • > 90% renewal rates • Accelerate innovation with over €30M in R&D over the next 3 years Growth • Scale our domestically and international position • €42M 1Q20 Net Cash Position to be invested in: 50% 18, 0 15.
Slide 20: Summary & Financial Details
“T ial Details inanc F Summary
Slide 21: Increasing and solid trading results – Full Year 2019
Increasing and solid trading results – Full Year 2019 € thousand 2019 % 2018 % Var % REVENUES 59,091 100.0 39,957 100.0 47.9 Direct costs 31,824 53.9 22,289 55.8 42.8 GROSS MARGIN 27,267 46.1 17,668 44.2 54.3 Research and Development costs 6,071 10.3 2,990 7.5 103.0 Commercial costs 8,610 14.6 5,603
Slide 22: Strong Balance Structure as at December 31, 2019
Strong Balance Structure as at December 31, 2019 € thousand 31.12.2019 31.12.2018 Var. Intangible assets 24,380 17,751 6,629 Tangible assets 7,929 3,680 4,249 Other fixed assets 2,325 1,511 814 Fixed Assets 34,634 22,942 11,692 Inventories 4,156 3,141 1,015 Trade receivables 19,371 14,029 5,342 Othe
Slide 23: Results Q1 2020
Results Q1 2020 REVENUES 16,255 100.0 11,885 100.0 36.8 Direct costs 8,981 55.3 6,671 56.1 34.6 [GROSS MARGIN 7,274 447 5,214 43.9 39.5 Research and Development costs 1,803 11.4 1,163 98 55.0 Commercial costs 1872 115 1,585 133 181 General and Administrative costs 1,634 101 1,174 99 39.2 EBITDA 1,96
Slide 24: Shareholding Structure, Dividends & Shareholder's Return
Shareholding Structure, Dividends & Shareholder‘s Return Dividends and Treasury Shares Repurchase (€m) Shareholding Structure 16,3 A. B. Illa 18 Managers 16 5% 4% 14 4,6 11,7 12 Laserline SpA 1,4 10 26% 8 6,8 6 11,7 1 10,3 3,7 3,7 3,8 3,2 3,2 0,3 4 0,6 1 0,8 5,8 0,9 1,1 3,5 2 2,6 2,7 2,9 0,3 2,1 0 0
Slide 25: Thank you for your attention!
Thank you for your attention! www.txtgroup.com Via Frigia, 27 20126 Milano Italy infofinance@txtgroup.com +39 02 257711 © TXT e-solutions – All rights reserved. Confidential and proprietary document. This document and all information contained herein is the sole property of TXT e-solutions . No inte