Slide 1: Investor Presentation NextGems
INVESTOR PRESENTATION NextGems 3-4 November 2020
Slide 2: Agenda
AGENDA TPS Group Impact of COVID-19 pandemic 1H 2020 milestones and results 2
Slide 3: TPS Group at a glance: headquarters, locations, group companies
ELITE CERTIFICATE since 2016 HEADQUARTERS Since 28th march 2017 GALLARATE LISTED ON THE ITALIAN STOCK TORINO EXCHANGE GROUP COMPANIES TPS 12 GALLARATE LOCATIONS IN ITALY TPS AEROSPACE ENGINEERING TORINO SATIZ TPM POIRINO (TO) SATIZ POLAND AVIOTRACE SWISS ADRIATECH MILANO BOLZANO PIACENZA 3 LOCATIONS
Slide 4: Business Oriented
BUSINESS ORIENTED CERTIFICATIONS 4 BUSINESS UNIT TECHNICAL PUBLISHING AND TRAINING ISO 9100 DOA POA - SUB PART G DESIGN EASA PART 147 AND COST ENGINEERING INFORMATION TECHNOLOGIES AND AVIONIC SERVICES DIGITAL CONTENT MANAGEMENT
Slide 5: SBU1: Technical Publishing & Training
SBU1: TECHNICAL PUBLISHING & TRAINING ILS INTEGRATED PROCESS & LOGISTIC SUPPORT TECHNICAL DOCUMENTS STANDARDS OIL & GAS TRANSLATION CERTIFICATIONS SERVICES TRAINING
Slide 6: SBU2: Design & Cost Engineering
SBU2: DESIGN & COST ENGINEERING AEROSPACE: MECHANICAL, ELECTRICAL, STRUCTURAL SPECIAL VEHICLES & OIL & GAS ENGINEERING DEFENCE ENGINEERING GEARBOXES: AUTOMOTIVE: COST PRECISION MECHANICAL ENGINEERING & MECHANICAL ELECTRICAL ENGIEERING BENCHMARKING ENGINEERING
Slide 7: SBU3: Information Tech. & Avionic Services
SBU3: INFORMATION TECH. & AVIONIC SERVICES TEST SOFTWARE ENGINEERING AND WEB DESIGN SOFTWARE AVIONICS SYSTEM AND DEVELOPMENT DEVELOPMENT INTEGRATION TEST PROGRAM SET
Slide 8: SBU4: Digital Content Management
SBU4: DIGITAL CONTENT MANAGEMENT COMPUTER BASED 3D RENDERING VIRTUAL AUGMENTED REALITY TRAINING AND VIDEO REALITY
Slide 9: Industry Footprint
INDUSTRY FOOTPRINT aeronautics & space automotive trucks & buses railways special vehicles defence vehicles ropeways oil & gas 9
Slide 10: Aerospace
AEROSPACE HELICOPTERS AIRCRAFTS NEW DRONES eVTOL TECHNOLOGIES 10
Slide 11: Automotive
AUTOMOTIVE CARS TRUCKS SHOW CARS BUSES LOW-SERIES & SPECIAL PROJECTS
Slide 12: Agricultures & Special Vehicles
AGRICOLTURES & SPECIAL VEHICLES TRACTORS CONSTRUCTION SNOW FIREFIGHTING GEARBOXES EQUIPMENT GROOMERS VEHICLES 12
Slide 13: Defence, Ropeways, Rail, Oil&Gas
DEFENCE, ROPEWAYS, RAIL, OIL&GAS 13
Slide 14: TPS Group Eco-Fin Results: Solid Growth Path Over the Years
TPS GROUP ECO-FIN RESULTS SOLID GROWTH PATH OVER THE YEARS Consolidated Revenues, € m 36.8 CAGR: +35% 24.1 19.1 14.6 8.1 2015 2016 2017 2018 2019 14
Slide 15: Sharp Focus on EBITDA and Bottom Line
TPS GROUP ECO-FIN RESULTS SHARP FOCUS ON EBITDA AND BOTTOM LINE Consolidated EBITDA, € m 7.05 CAGR: +40% 4.76 4.15 3.12 1.29 2015 2016 2017 2018 2019 Consolidated Net Income €m 0.53 1.91 2.11 2.42 2.44 15
Slide 16: Strong Financial Position
TPS GROUP ECO-FIN RESULTS STRONG FINANCIAL POSITION Consolidated Net Debt € m ▪ TPS Group had a net cash position of €4,60 m at the end of 1H 2020, -2.92 -4.56 increased by ~€1.68 m vs. Dec. 31st -2.92 2019 impact IFRS16 ▪ The effect of the application of IAS / -2.68 IFRS accounting standards, and s
Slide 17: Steady M&A and Integration Machine
TPS GROUP STEADY M&A AND INTEGRATION MACHINE Year Acquisitions Mergers by incorporation ▪ TPS Group has successfully acquired and integrated 12 2013 companies over the last 7 years 2015 ▪ The expansion strategy is focused on the following pillars: ‒ Strengthen the leadership 2017 position in aerospa
Slide 18: Group Structure (expected at year-end 2020)
TPS GROUP GROUP STRUCTURE (expected at year-end 2020) Group structure streamlining ongoing in H2 2020: 70% 100% 100% 100% 80% ▪ Adriatech S.r.l. merged by incorporation into TPS S.p.A. ▪ NEOS S.r.l. merged by incorporation into TPS S.p.A. ▪ TPS Aerospace Engineering S.r.l. merged by incorporation in
Slide 19: Agenda
AGENDA TPS Group Impact of COVID-19 pandemic 1H 2020 milestones and results 19
Slide 20: COVID-19 Impact on Italy
COVID-19 PANDEMIC COVID-19 IMPACT ON ITALY ▪ Italy has been hit by the spread of the Covid-19 before and more than other European countries ▪ To stop the spread of the virus, the national government decided to put the Lombardy region (where TPS Group’s Gallarate HQ is located) in lockdown since Marc
Slide 21: COVID-19 Impact on TPS Group
COVID-19 PANDEMIC COVID-19 IMPACT ON TPS GROUP ▪ TPS S.p.A. and most of the Group’s Italian subsidiaries did not have to shut down because were included among the essential services1 as defined by the DCPM2 of March 22nd and following ▪ Nevertheless, to protect as much as possible the health and saf
Slide 22: COVID-19 Impact on TPS Group's Revenues
COVID-19 PANDEMIC COVID-19 IMPACT ON TPS GROUP’S REVENUES Open during TPS Group revenues during Client Sector TPS Group revenue exposure lockdown lockdown (March & April 2020) % on TPS Group revenues 2019 % on expected within the period Client 1 Aerospace 39% 89% With delays in projects Client 2 Aut
Slide 23: COVID-19 Impact on TPS Group's Operations
COVID-19 PANDEMIC COVID-19 IMPACT ON TPS GROUP'S OPERATIONS ▪ Thanks to immediate reaction to the effect of the crisis, the reduction in revenues over the first semester of the year has been relatively low (~7%), as well as the reduction in margins (~15%) ▪ TPS Group showed resilience to the market
Slide 24: Agenda
AGENDA TPS Group COVID-19 pandemic 1H 2020 milestones and results 24
Slide 25: Key Figures 1H 2020 vs. 1H 2019
1H 2020 MILESTONES AND RESULTS KEY FIGURES 1H 2020 vs. 1H 2019 REVENUES EBITDA €m €m 16,5 15,4 3,0 2,5 -7% -15% 1H 2019 1H 2020 1H 2019 1H 2020 NET DEBT1 Improved EMPLOYEES €m by €1.64 m 478 482 -2,92 -4,56 Dec. 31st June 30th Dec. 31st June 30th 2019 2020 2019 2020 1 Net Debt includes impact of the
Slide 26: Income Statement Highlights
1H 2020 MILESTONES AND RESULTS INCOME STATEMENT HIGHLIGHTS ▪ Consolidated revenues: €15.4 m ✓ -7% vs. 1H 2019 (1H 2019 does not consolidate EMTB results) ✓ Strong resilience in both technical publishing and engineering services, especially in the aerospace industry ▪ EBITDA: €2.5 m ✓ -15% vs. 1H 201
Slide 27: Balance Sheet Highlights
1H 2020 MILESTONES AND RESULTS BALANCE SHEET HIGHLIGHTS ▪ Consolidated Net Debt / (Net Cash): €(4.56) m ✓ + €1.68 m vs. Dec. 31st, 2019 ✓ Includes €2.79 m impact of IFRS 16 ✓ Cash & cash equivalents on hand : €8.5 m ▪ Net Working Capital: €13.59 m ✓ Stable in comparison with Dec 31st, 2019 (€13.35 m
Slide 28: H2 2020 Update
1H 2020 MILESTONES AND RESULTS H2 2020 update ▪ During first semester 2020 TPS Group has been fully concentrated on the crisis management and on the continuous reorganization of the work activity ▪ Some of the strategic projects (among them, the startup of our aerospace activities in USA) has been p
Slide 29: Strategic Outlook
1H 2020 MILESTONES AND RESULTS Strategic Outlook ▪ In light of its solid financial and operational fundamentals, TPS Group will not change the medium/long-term growth strategy, that is based on: ‒ Geographical diversification (EU, USA and China) ‒ A proven M&A organization ‒ Further expansion in adj
Slide 30: group
group