Slide 1: TXT e-Solutions Corporate Overview March 2018
TXT e-Solutions Corporate Overview March 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: Fall 2017 – A major Change to TXT Group’s Business Perimeter
Fall 2017 – A major Change to TXT Group’s Business Perimeter On October 2nd, 2017 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 ▪ TXT e-solutions entered into a definitive agreement to transf
Slide 4: Historical Performance of TXT (Continuing Operations)
Historical Performance of TXT (Continuing Operations) Revenues (m€) EBITDA (m€) 40 4 3,8 35.9 3.5 35 33.1 3,5 30 3 10% 24,9 +8% 25 2,5 20,9 21,8 11% +33% 2 20 2 1,7 +14 % 15 1,5 1,3 +5 % 8.2% 10 +4 % 1 7.9% 6.4% 5 0,5 0 0 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 NOTE: In 2016 TXT acquired P
Slide 5: TXT Business Perimeter (Continuing Operations): Mission & Markets
TXT Business Perimeter (Continuing Operations): Mission & Markets TXT e-solutions is an international, specialized provider of engineering software solutions supporting customers in high-tech markets in their mission- and business-critical core processes and throughout their product lifecycles. Aero
Slide 6: TXT Business Perimeter (Continuing Operations): Key 2017 Facts & Figures
TXT Business Perimeter (Continuing Operations): Key 2017 Facts & Figures International provider of High-tech Software Solutions & Services to Global Aerospace, Aviation & Automotive Industry Software Aerospace 15% & Aviation Services 85% Revenues: 27,8 m€ 2017 Revenues breakdown EBITDA: ~11% Team: 3
Slide 7: Aerospace & Aviation
Aerospace & Aviation 7
Slide 8: Growth Strategy & Plans
Growth Strategy & Plans Seattle Amsterdam Berlin Bristol Munich Stans Toulouse Milan Turin 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
Slide 9: A Longstanding, Global Customer Base across the Industry Value Chain
A Longstanding, Global Customer Base across the Industry Value Chain • A diversified Customer Base of Industry Leaders • Long-term partnership underpinning highly repeatable revenues streams • A growing number of new, high-potential int’l customers in recent years • A significant up-selling opportun
Slide 10: Value Proposition Spanning the Entire Product Life-cycle
Value Proposition Spanning the Entire Product Life-cycle • Breadth and Depth: focus on high-value niches, but understand the whole picture • Industry and Technology expertise: Engineering Services, backed by Software Assets • Flexible engagements models, with turn-Key service engagements weighting ¾
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: … that Sustain a Strong Competitive Position
… 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: Full Year 2017
Full Year 2017 € thousand 2017 % 2016 % Var % REVENUES 35.852 100,0 33.060 100,0 8,4 Direct costs 20.224 56,4 18.954 57,3 6,7 GROSS MARGIN 15.628 43,6 14.106 42,7 10,8 Research and Development costs 2.481 6,9 2.086 6,3 18,9 Commercial costs 5.066 14,1 3.733 11,3 35,7 General and Administrative costs
Slide 26: Strong Balance Structure
Strong Balance Structure € thousand 31.12.2017 31.12.2016 Var Intangible assets 7.332 7.634 (302) Tangible assets 793 765 28 Other fixed assets 735 1.749 (1.014) Fixed Assets 8.860 10.148 (1.288) Inventories 2.528 2.767 (239) Trade receivables 14.681 14.015 666 Other short term assets 2.533 1.954 57
Slide 27: Dividends & Shareholder‘s Return 2011-2018
Dividends & Shareholder‘s Return 2011-2018 • Dividends • 2011: 1 € /share (extraordinary, rebased) • 2012: Free Share Distribution 1:1 • 2013: 0.20 € /share (rebased) • 2014: Free Share Distribution 1:1 • 2014: 0.25 € / share • 2015: Free Share Distribution 1:10 • 2015: 0.25 € / share • 2016: 0.25 €
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€
Slide 29: Shareholding Structure – March 2018
Shareholding Structure – March 2018 Managers A. Braga Illa 5,6% 14,0% Laserline SpA 25,6% Market 44,8% Treasury Shares 10,0% 29