Txt E-solutions S.p.a. · MIL:TXT
Txt E-solutions — STAR Conference 2024
30 slides from Txt E-solutions's conference presentation, Mar 20, 2024
Slide 1: STAR Conference 19-20 March 2024
1 STAR Conference 19 - 20 March 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 Lucerna Munich Revenues FY 2023 SINGAPORE Guaranteed by operating excellence & innovation Locations worldwide STAR segment (TXT.MI) ITALY Milano Torino FRANCE Novara Bologna Toulouse Brescia Roma Parma Bar
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: 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: Revenues by Offering and EBITDA
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. EBITDA margin for FY 2023 reached the target set at more than 14% for. Revenues by Offering EBITD
Slide 8: A Successful Story
A Successful Story 8 Extend Smart Solutions portfolio in the Aerospace Software Engineering & Defence market Solutions, Digital Advisory and Smart Solutions and increased portfolio offering competencies in consolidation, the Software 2024 strengthening the Engineering acquired positioning and domain
Slide 9: M&A Contribution: 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 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 recorded from 2018, syn
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. Aerospace Industrial Telc
Slide 13: Go-to-Market
13 of multidisciplinary competences and vertical excellences, customers can rely on experts. Go-to-Market market-ready for specific verticals in customers’ core We accelerate the customer’s digital transition processes. by providing advanced vertical solutions. Exploit TXT Group’ with Large corporat
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: FY-2023 Highlights & FY 2024 Guidance
16 _FY-2023 Highlights & FY 2024 Guidance
Slide 17: Revenues €224 Mn, Pro-Forma ~235 Mn
FY-2023 results show double-digit organic growth of revenues, boosted by synergies 17 Revenues Solid Organic €224 Mn Pro-Forma 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, Dividend
Solid profitability recorded in FY-2023 leveraging synergies and operational efficiency 18 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: R&D, Cash and Treasury Shares Highlights
19 € 9.0Mn FY-23, +18% vs. FY-22 € 43Mn FY-23, +12% vs. FY-22 € 48Mn 21% of total revenues € 31Mn (Net Debt Adjusted) - € 26Mn* in Treasury Shares * Value calculated with stock price of € 19,82 per share (Share Price Dec. 31st, 2023)
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: Subsequent Events and Business Outlook
Subsequent Events and 22 Business Outlook: • Smart Solutions: leveraging strategic investments made throughout 2023, both internal and external, the TXT Group forecasts growth rates in line with the expected market trend for the software segment estimated at 12%. • Digital Advisory: organic growth i
Slide 23: FY-2023 Financials
23 FY-2023 FINANCIALS
Slide 24: FY-2023 Income Statement
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 Commercial costs 24,227 10.8 14,149 9.4 71.2 General and Administrative costs 16,388 7.
Slide 25: Net Financial Debt
25 .000 Euro 31.12.2023 31.12.2022 Var Cash (37,927) (33,015) (4,912) Trading securities at fair value (24,058) (48,490) 24,431 Other Short Term Financial Assets (810) - (810) Short term Financial Debts 57,654 51,187 6,467 Short term Financial Debts (5,141 ) (30,318 ) 25,176 Non current Financial De
Slide 26: Capital Employed and Financing
26 € thousand 31.12.2023 31.12.2022 Change Intangible assets 85,900 77,975 7,925 Tangible assets 20,430 18,293 2,137 Other fixed assets 24,462 19,360 5,102 Fixed Assets 130,792 115,628 15,164 Inventories 18,733 13,765 4,968 Trade receivables 74,346 73,115 1,231 Other short term assets 14,876 15,352
Slide 27: Shareholding Structure & Market Data
27 Shareholding Structure & Market Data
Slide 28: Shareholding, Share Price and Dividends
28 * Latest Public Data Available as of 31 Dec. 2023 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 5,8 5,3 5,5 0,76 Market; 2 0,26 2,1 0 0,5 0 42% 0 2018 2019 2020 2021 2022 2023 Managers; Repurchase Treasury
Slide 29: Q&A
29 Q&A
Slide 30: Ls TXT
Ls TXT