Txt E-solutions S.p.a. · MIL:TXT
Txt E-solutions — STAR Conference Milan 2023
26 slides from Txt E-solutions's conference presentation, Mar 21, 2023
Slide 1: STAR Conference March 21, 2023
1 STAR Conference March 21°, 2023 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 3 USA UK NL CH DE Seattle Bristol Delft Chiasso Köln Dallas Stans Berlin Lucerna Munich Revenues FY 2022 (Pro-forma) Guaranteed by operating excellence & innovation Locations worldwide STAR segment (TXT.MI) Italy Milano Torino France Novara Bologna Toulouse Brescia Roma Bari Palermo C
Slide 4: Ecosystem of Excellences
4 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 impleme
Slide 5: Market position: 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: A Story of Increasing Value
A Story of Increasing Value 6 Continue to consolidate offering in Software Engineering Solutions, Digital Advisory and Smart Solutions portfolio, strengthening the acquired positioning and addressing new market segments and geographies Increase international business with stronger presence in German
Slide 7: Trading Results (2017-2022) and M&A Contribution
Trading Results (2017-2022) 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% 205 14.8% New TXT after divestment of Retail division in 2017: 13.9%
Slide 8: Consolidated figures for 2022 show accelerated growth of revenues
8 Consolidated figures for 2022 show accelerated growth of Revenues by maintaining target EBITDA margin Revenues by Market EBITDA (€mn, % on total revenues) (€mn, % on total revenues) €150.7 €22.3 +56% +53% €85.7 €96.4 57% €14.5 +59% €53.8 56% 14,8% 15,1% €65.0 €42.5 +53% 43% 44% FY-21 FY-22 FY-21 F
Slide 9: 2022 Pro-Forma Revenues and EBITDA of approx. €205 Mn and €30 Mn
9 _2022 Pro-Forma Revenues and EBITDA of approx. € 200 Mn and € 30 Mn, respectively Revenues Pro-Forma * EBITDA Pro-Forma * (€mn) (€mn, % on total revenues) €205.0 €28.4 +88% +73% € 76.0 €108.6 €16.5 +19% 13,9% €129.0 15,2% €108.6 FY-21 FY-22 FY-21 FY-22 M&A 2022 (full-year) 01 Jan 2022 Conso. Perim
Slide 10: Perfect mix of organic & inorganic growth to boost profitability
10 Perfect mix of organic & inorganic growth to boost profitability Solid Organic Postive M&A Net Profit Growth Contribution (consolidated) +18% +€37 Mn M&A Revenues in FY-22 €12.0 Mn vs. FY-2021 8% of Revenues (Consolidated*) +53% vs. FY-2021 * Excluded ProSim-TS not consolidated in FY-2023
Slide 11: FY-22 key figures
11 € 7.6Mn FY-22, +11% vs. FY-21 € 10.3Mn +22% vs. FY-21, + € 28Mn from services around proprietary SW € 42Mn 28% of total consolidated revenues € 38Mn (Net Debt) - € 12Mn* in Treasury Shares & € 16Mn Fair Value Financial Investment * Value calculated with stock price of € 12,84 per share (Share Pri
Slide 12: 2023 Guidance & Targets
2023 Guidance & Targets 12 EBITDA Margin Revenues * Net Debt (Group) (Group Consolidated) (Year-End) >14% +€250mn <2xEBITDA * Including M&A 2023 expected contribution
Slide 13: Markets & Offering
13 MARKETS & OFFERING
Slide 14: Go-to-Market
14 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 15: Segmentation by Market: Aerospace & Aviation, Fintech
Segmentation by Market 15 We are an international specialized provider of digital advisory and software engineering solutions relying on distinctive technological and business-critical core processes expertise to support major players in different markets with a unique ability to solve customers’ pr
Slide 16: Segmentation by Offering
Segmentation by Offering 16 Artificial Software Engineering Intelligence Digitization & Servitization of products Extended Reality Data Analytics Software Engineering v 69% of Business * Sustainability Cybersecurity & & ESG Information Risk Management platforms Smart Solutions v 19% of Business * Fi
Slide 17: Smart Solutions for the Aerospace & Industrial Market
Smart Solutions for the Aerospace & Industrial Market 17 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 18: Fintech Smart Solutions
Fintech Smart Solutions 18 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 19: FY-2022 Financials
19 FY-2022 FINANCIALS 19
Slide 20: FY2022 income statement
20 € thousand 2022 % 2021 % Var % REVENUES 150,758 100 96,363 100 56.4 Direct costs 94,309 62.6 57,013 59.2 65.4 GROSS MARGIN 56,449 37.4 39,350 40.8 43.5 Research and Development costs 7,634 5.1 6,890 7.2 10.8 Commercial costs 14,149 9.4 9,751 10.1 45.1 General and Administrative costs 12,407 8.2 8
Slide 21: Q4 2022 income statement
21 € thousand Q4 2022 % Q4 2021 % Var % REVENUES 58,358 100 29,630 100 97.0 Direct costs 37,771 64.7 16,891 57.0 123.6 GROSS MARGIN 20,587 35.3 12,739 43.0 61.6 Research and Development costs 1,856 3.2 1,799 6.1 3.2 Commercial costs 5,336 9.1 3,270 11.0 63.2 General and Administrative costs 4,667 8.
Slide 22: Net financial position
22 € thousand 31.12.2022 31.12.2021 Var Cash 33,015 36,076 (3,061) Trading securities at fair value 48,490 48,869 (379) Total Cash & Cash Equivalent 81,505 84,945 (3,440) Current Financial Debts - Lessors IFRS 16 (2,506) (1,539) (967) Current Debts for PUT/CALL and EarnOut (4,300) (9,614) 5,314 Shor
Slide 23: Reclassified balance sheet
23 € thousand 31.12.2022 31.12.2021 Change Intangible assets 77,975 55,182 22,793 Tangible assets 18,293 12,126 6,167 Other fixed assets 19,360 16,529 2,831 Fixed Assets 115,628 83,837 31,791 Inventories 13,765 7,810 5,955 Trade receivables 73,115 43,156 29,959 Other short term assets 15,352 8,864 6
Slide 24: Shareholding Structure & Market Data
24 Shareholding Structure & Market Data
Slide 25: Shareholding structure, share price and dividends
25 * Latest Public Data Available as of 31 Dec. 2022 Treasury 18 16,3 Shares; 7% 16 L.V.O. Global Asset Laserline 14 4,6 Management S.A. SpA; 30% 12 3% 10 8 6,8 5,3 5,5 6 11,7 1 4 Market; 5,8 5,3 5,5 2 0,76 43% 0,26 0 0 0,5 0 2018 2019 2020 2021 2022 Managers; Repurchase Treasury Shares Payment divi
Slide 26: Ls TXT
Ls TXT