Txt E-solutions S.p.a. · MIL:TXT
Txt E-solutions — TXT Group — Investor Presentation (September 2024)
30 slides from Txt E-solutions's investor presentation, Sep 25, 2024
Slide 1: TXT Group: Corporate overview
1 TXT Group: Corporate overview Le Eccellenze del Made in Italy September 25°, 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: TXT Group at a Glance
TXT Group at a Glance 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 STA
Slide 4: Digital Innovation
Digital Innovation 4 Smart Solutions Innovative Platforms to accelerate customers’ business Cybersecurity & % EBITDA Target ~ 20% Information Risk Management 19% of Business* IoT Digital Advisory Digital Reshaping and automatization Cloud Technology of processes % EBITDA Target ~ 15% 16% of Business
Slide 5: Ecosystem of Excellences
5 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 6: Reliability + Agility
Market position 6 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 7: Historical Trading Results (2018-2023)
Historical Trading Results (2018-2023) 7 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 8: A sustainable growth boosted by M&A
A sustainable growth boosted by M&A 8 Mix of complementary competences, new business in domestic market, and international expansion of core expertise New MarTech A new plan of Increase international offering Accelerated Growth New Software business with stronger Extend presence presence in DACH Eng
Slide 9: Focus on Profitable Growth
Focus on Profitable Growth 9 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 recorded
Slide 10: Offering & Markets
10 OFFERING & MARKETS
Slide 11: Go-to-Market
11 Ecosystem of multidisciplinary competences and vertical excellences, customers can rely on experts. Go-to-Market Licenses, Subscription and SaaS Smart Solutions market-ready for We accelerate the customer’s digital transition specific verticals in customers’ core processes. by providing advanced
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: Our Smart Solutions
Our Smart Solutions: 13 Vertical Applications empowered by cutting-edge technology Our Smart Solution offering is rooted on deep expertise in vertical domains where TXT Group’s excellences are recognised as leaders and innovators. Our proprietary tools are supporting core processes and products of l
Slide 14: Our Smart Solutions portfolio (1/2)
Our Smart Solutions portfolio (1/2) 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, Automotive, Industry & Beyond. It is based on a strong commit
Slide 15: Our Smart Solutions portfolio (2/2)
Our Smart Solutions portfolio (2/2) 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 uniq
Slide 16: Financial Highlights & Guidance
16 _Financial Highlights & Guidance
Slide 17: FY-2023 revenues €224 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 and Net Profit FY-2023
18 Solid profitability recorded in FY-2023 leveraging synergies and operational efficiency EBITDA Net Profit Dividend (consolidated) (consolidated) (resolved) €31.6 Mn €15.5 Mn €0.25 / share Equal to 14.1% of revenues +29% vs. FY-2022 +39% vs. 2023
Slide 19: FY-2024 Guidance
19 FY-2024 Guidance 19 Target Revenues Target EBITDA Continuing Organic Growth FY-24 Margin FY-24 M&A plan > 10% > 14% Net Debt < 2xEBITDA
Slide 20: KPIs: 1H-2024 by Offering
20 KPIs reported in 1H-2024 show continuity in the growth plan of TXT based on the mix of organic growth of business, M&A contribution and synergies that are expected to generate additional growth and benefits _KPIs: 1H-2024 by Offering during the year: EBITDA margin target for FY 2024 set at more t
Slide 21: Value creation: 1H-2024
21 _Value creation: 1H-2024 R&D INVESTMENTS (fully expenses in the period) € 6.7Mn 1H-24, +50% vs. 1H-23 SMART SOLUTIONS REVENUES € 25.7Mn 1H-24, +31% vs. 1H-23 INTERNATIONAL REVENUES € 39.9Mn 29% of total revenues SUSTAINABLE DEBT (Adjusted) + TREASURY SHARES FOR FINANCING GROWTH € 37Mn (Net Debt a
Slide 22: Financials
22 FINANCIALS
Slide 23: 1H-2024 details
Profit & loss: 1H-2024 details 23
Slide 24: FY-2023 details
24 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 Administrati
Slide 25: Net Financial Debt
25 .000 Euro 30.06.2024 31.12.2023 Var olid financial position Cash (47,503) (37,927) (9,576) Trading securities at fair value (27,428) (24,058) (3,370) NET Financial Debt: Other Short Term Financial Assets (400) (810) 410 Short term Financial Debts 58,175 57,654 521 Short term Financial Debts (17,1
Slide 26: Balance sheet: details
26 € thousand 30.06.2024 31.12.2023 Change Intangible assets 91,783 85,900 5,883 _Balance sheet: details Tangible assets 22,078 20,430 1,648 Other fixed assets 24,049 24,462 (413 ) Fixed Assets 137,911 130,792 7,119 Inventories 24,700 18,733 5,967 Trade receivables 71,193 74,346 (3,153 ) Other short
Slide 27: Shareholding Structure & Market Data
27 Shareholding Structure & Market Data
Slide 28: Shareholding structure
28 Shareholding Structure June 30th, 2024* Dividends and Treasury Shares Repurchase (€m) hareholding structure * Latest Public Data Available as of 30 Jun. 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 5.6 6 11.7 1
Slide 29: Q&A
29 Q&A
Slide 30: Ls TXT
Ls TXT