Txt E-solutions S.p.a. · MIL:TXT
Txt E-solutions — Investor Presentation (February 2018)
29 slides from Txt E-solutions's investor presentation, February 2018
Slide 1: TXT e-Solutions Corporate Overview
TXT e-Solutions Corporate Overview February 2018
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: Summer 2017 – A major Change to TXT Group's Business Perimeter
Summer 2017 – A major Change to TXT Group’s Business Perimeter Before October 2nd … … On October 2nd Definitive agreement for sale of TXT Retail Division to Aptos TXT receives EUR 85 million in cash TXT Next Division development projects to be accelerated 36 m€ 33,2 m€ ▪ TXT e-solutions entered into
Slide 4: Historical Performance of TXT Next Division
Historical Performance of TXT Next Division Revenues (m€) EBITDA (m€) 35 33.2 3,5 3,2 30 3 24,9 25 2,5 20,9 21,8 +33% (+8% 2 20 2 Organic) 1,7 10% 15 +14 % 1,5 1,3 10 +5 % 1 8.2% +4 % 7.9% 5 0,5 6.4% 0 0 2013 2014 2015 2016 + 2013 2014 2015 2016 +α + NOTE: In 2016 TXT acquired PACE Aerospace & Engin
Slide 5: The New TXT Business Perimeter
The New TXT Business Perimeter International provider of High-tech Software Solutions & Services to Global Aerospace, Aviation & Automotive Industry APAC US 1% Software Aerospace 9% 15% & 2016 Revenues EMEA Italy breakdown Aviation 34% 56% Services 85% Revenues: 26 m€ EBITDA: 10,9% Team: 340 pp 2016
Slide 6: Aerospace & Aviation
Aerospace & Aviation 6
Slide 7: Aerospace & Aviation: Market Overview
Aerospace & Aviation: Market Overview Since 30 years Partner for our Clients to boost their Engineering Capabilities Products & core Processes are highly complex … … calling for cooperation across an extensive network of Specialised Partners R&D and Product Development Support to Customers’ Engineer
Slide 8: Growth Strategy & Plans
Growth Strategy & Plans Our Vision & Goal is to become: • An Int’l, specialized, multi-niche, mid-sized (100 m€) provider of Engineering “Solutions” (Software & Services) • Serving the global Aerospace & Aviation Industry • Via both organic AND inorganic growth initiatives 8
Slide 9: Customer Base - A Longstanding, Global Customer Base across the Value Chain
Customer Base - A Longstanding, Global Customer Base across the Value Chain • A diversified Customer Base of Industry Leaders • Long-term partnership underpinning highly repeatable revenues streams • A growing number of new, high-potential international customers in recent years • A significant up-s
Slide 10: What We Do - Value Proposition Spanning the Entire Product Life-cycle
What We Do - Value Proposition Spanning the Entire Product Life-cycle • Industry and Technology expertise: Engineering Services, backed by Software Assets • Breadth and Depth: focus on high-value niches, but understand the whole picture PRODUCTION & CUSTOMER PRODUCT DESIGN & DEVELOPMENT OPERATIONS E
Slide 11: How We Do It - Engineering Solutions: Software Assets Global Map
How We Do It - Engineering Solutions: Software Assets Global Map PRODUCT DESIGN & DEVELOPMENT PRODUCTION & CUSTOMER ENGINEERING OPERATIONS PRELIMINARY ON-BOARD DIGITAL PRODUCT TRAINING FLIGHT DESIGN SOFTWARE MANUFACTURING CONFIGURATION & SIMULATION OPERATIONS Fully Packaged SW Products Reference App
Slide 12: How We Do It – An Expanding Set of Flexible Engagement Models
How We Do It – An Expanding Set of Flexible Engagement Models Turn-Key service engagements weight ¾ of the total, while Time & Material account for the remaining ¼ Custom Projects Software & Data Creation & Functional On-site Managed System & Maintenance Extension to Consultancy Services Integration
Slide 13: 30+ Years in the Industry, 340+ Specialised Engineers and Growing Int'l Presence
30+ Years in the Industry, 340+ Specialised Engineers and Growing Int’l Presence … • Local presence, to provide best-in-class on-site support to key customers; • Corporate competence centers, to deliver & support customers across their business in 30+ Countries 2017 Revenue breakdown by geography US
Slide 14: Sustain a Strong Competitive Position, Recognised by Old & New Customers
… that Sustain a Strong Competitive Position, Recognised by Old & New Customers A unique spectrum of specialized high-value niches across the entire Product Life-Cycle, that differentiates us from local and global competitors • Small, Local Players: Deep in single niches, compete mainly in price a
Slide 15: Growth Strategy & Plans – Market Opportunity
Growth Strategy & Plans – Market Opportunity A large & healthy Industry: global Engineering Solutions & Service Europe accounts for a large share of the groups, with high speed of Market worth 130 bn€; Aerospace & Market innovation and sustained R&D / Automotive accounts for 20% each; Engineering sp
Slide 16: Growth Strategy & Plans – Summary
Growth Strategy & Plans – Summary Solid Foundations Identified Growth Initiatives • Solid Management Team with a Our Vision: to become an Int’l, specialized, multi-niche, track record in self-sustainable mid-sized (100 m€) provider of Engineering “Solutions” organic growth AND acquisitions serving t
Slide 17: Banking & Finance
Banking & Finance
Slide 18: What We Do & Key Customers
What We Do & Key Customers • Since 15 years focused on Software Quality and on Independent Testing, Verification & Validation of software, to ensure the functioning, functional fit, and compliance of IT systems • It has adapted best practices, tools and methodologies from Aerospace to the needs of t
Slide 19: How We Do It – Domain Expertise, Methods & Tools and Proprietary Testing Bricks
How We Do It – Domain Expertise, Mastering of Methods & Tools and Proprietary “Testing Bricks” Services across the end-to-end Software Quality and Independent Testing, Verification & Validation Lifecycle Test Test Test Defect Test Test Management Strategy Development Execution Management & Environme
Slide 20: Growth Strategy & Plans – Market Opportunity
Growth Strategy & Plans – Market Opportunity • Stratified, complex, highly heterogeneous & rapidly evolving IT landscape, coupled with increasingly stricter regulatory frameworks, makes Software Quality a mandatory, yet challenging task • Emerging “Fintech” software & services increase complexity of
Slide 21: Growth Strategy & Plans - Summary
Growth Strategy & Plans - Summary Keep growing organically in the Sw Quality & Testing domain, with a primary focus on the Italian Market Strengthen the Foundations of Software Quality & Testing Services • Domain Expertise & IP assets: continue differentiating by deepening domain knowledge in specif
Slide 22: Summary & Financial Details
Summary & Financial Details 22
Slide 23: TXT e-solutions Global Targets
TXT e-solutions Global Targets • Organic Growth – Aerospace & Aviation: 8-10% per annum, with focus on International Growth – Banking & Finance: 5+% per annum, 100% Italy – Self-financed R&D and Marketing & Sales – Constant equilibrium across growth & profit – EBITDA Margin: 12% Global Target • Inor
Slide 24: TXT e-solutions – Top Management Team
TXT e-solutions – Top Management Team Alvise Braga Illa – Chairman After graduating at the Polytechnic Institute in Milan, Mr Braga Illa was for 10 years in research and teaching at the Lincoln Laboratory and Massachusetts Institute of Technology, innovating in satellite technology, optical communic
Slide 25: 9m 2017 TXT Retail Results reclassified among Discontinued Operations
9m 2017 € thousand 9m 2017 % 9m 2016 % Var % REVENUES 26.032 100,0 23.469 100,0 10,9 Direct costs 14.906 57,3 13.731 58,5 8,6 GROSS MARGIN 11.126 42,7 9.738 41,5 14,3 Research and Development costs 1.864 7,2 1.399 6,0 33,2 Commercial costs 3.456 13,3 2.495 10,6 38,5 General and Administrative costs
Slide 26: Strong Balance Structure
Strong Balance Structure € thousand 30.9.2017 31.12.2016 Var Intangible assets 7.419 7.634 (215) Tangible assets 781 765 16 Other fixed assets 1.901 1.749 152 Fixed Assets 10.101 10.148 (47) Inventories 3.787 2.767 1.020 Trade receivables 10.413 14.015 (3.602) Other short term assets 2.730 1.954 776
Slide 27: Dividends & Shareholder's Return 2011-2017
Dividends & Shareholder‘s Return 2011-2017 • Share Price • Dividends • 31.12.2010: 1.51€/share (rebased for • 2011: 1 € /share (extraordinary, rebased) free share distribution) • 2012: Free Share Distribution 1:1 • 16.1.2018: 10.20€ /share • 2013: 0.20 € /share (rebased) • 2014: Free Share Distribut
Slide 28: TXT Market Capitalization (m€)
TXT Market Capitalization (m€) Free share distribution 1:10 Free share distribution 1:1 Free share distribution 1:1 Dividend 3.5m€ Dividend 2.9m€ Dividend 2.6m€ Dividend 2.6m€ Dividend 2.1m€ Dividend 10.3m€ 28
Slide 29: Shareholding Structure – December 2017
Shareholding Structure – December 2017 Managers A. Braga Illa 5,6% 14,0% E-Business Consulting 25,6% Market 45,1% Treasury Shares 9,7% 29
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