Txt E-solutions S.p.a. · MIL:TXT
Txt E-solutions — TXT Group — FY2023 Earnings Presentation
20 slides from Txt E-solutions's earnings presentation, Mar 15, 2024
Slide 1: TXT Group: FY 2023 Results Call with Investors
TXT Group: FY 2023 Results Call with Investors March 15 | 11 a.m. (CET) Daniele MISANI, CEO Andrea FAVINI, IR
Slide 2: Double-digit organic revenue growth boosted by synergies
2 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 3: Solid profitability leveraging synergies and operational efficiency
3 Solid profitability recorded in FY-2023 leveraging synergies and operational efficiency 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 4: KPIs: FY-2023 by Offering
4 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. _KPIs: FY-2023 by Offering EBITDA margin for FY 2023 reached the target set at more than 14% for.
Slide 5: Value creation: FY-23
5 _Value creation: FY-23 R&D INVESTMENTS (fully expenses in the period) € 9.0Mn FY-23, +18% vs. FY-22 SMART SOLUTIONS REVENUES € 43Mn FY-23, +12% vs. FY-22 INTERNATIONAL REVENUES € 48Mn 21% of total revenues SUSTAINABLE DEBT (ADJUSTED) + TREASURY SHARES FOR FINANCING GROWTH € 31Mn (Net Debt Adjusted
Slide 6: Core Markets & Incidence
Core Markets & Incidence 6 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% In
Slide 7: FY-2024 Guidance
FY-2024 Guidance 7 Target Revenues Target EBITDA Continuing Organic Growth FY-24 Margin FY-24 M&A plan > 10% > 14% Net Debt < 2xEBITDA
Slide 8: FY-2023 Business Evolution & Subsequent Events
8 _FY-2023 Business Evolution & Subsequent Events
Slide 9: FY-2023 Investment Milestones – Strategic M&A
FY-2023 Investment Milestones – Strategic M&A: 9 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 as
Slide 10: FastCode: strengthened Cloud & Digital Transformation Expertise
10 FastCode: strengthened Cloud & Digital Transformation Expertise • In December 2023 TXT acquired 100% of FastCode, a digital company based in Emilia Romagna region funded in 2006 which has developed into a firm with specialized proficiency in digital transformation, supported by advanced capabilit
Slide 11: Advanced AI technology
11 Advanced AI technology: 11 During Q4-2023, TXT strengthened the specialized know-how in Artificial Intelligence for the benefit of Group offering in different market sectors. • In the Aerospace & Defence, InstructIQ® is a new Smart Solution based on AI for Evidence-Based-Training acquired from Pa
Slide 12: PayDo: Innovation for the Digital Payments market
12 PayDo: Innovation for the Digital Payments market • In December 2023 TXT invested in the capital of PayDo, an innovative SME offering proprietary solutions for digital payments and money collection, withdrawal, and deposit at bars, kiosks, and other shops. • PayDo was funded in 2018 by the curren
Slide 13: Subsequent Events and Business Outlook
Subsequent Events and 13 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 14: FY-2023 Financials
14 FY-2023 FINANCIALS
Slide 15: FY-2023 details
15 € 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 Administrative
Slide 16: Q4 2023 details
16 € thousand Q4 2023 % Q4 2022 % Var % REVENUES 65,038 100 58,358 100 11.4 Direct costs 40,441 62.2 37,771 64.7 7.1 GROSS MARGIN 24,597 37.8 20,587 35.3 19.5 Research and Development costs 2,311 3.6 1,856 3.2 24.5 4 2023 details Commercial costs 8,761 13.5 5,336 9.1 64.2 General and Administrative
Slide 17: Net Financial Debt: solid financial position
17 .000 Euro 31.12.2023 31.12.2022 Var olid financial position Cash (37,927) (33,015) (4,912) Trading securities at fair value (24,058) (48,490) 24,431 NET Financial Debt: Other Short Term Financial Assets (810) - (810) Short term Financial Debts 57,654 51,187 6,467 Short term Financial Debts (5,141
Slide 18: Balance sheet: details
18 € thousand 31.12.2023 31.12.2022 Change Intangible assets 85,900 77,975 7,925 _Balance sheet: details 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 te
Slide 19: Shareholding Structure and Dividends
19 Shareholding Structure December 31st, 2023* Dividends and Treasury Shares Repurchase (€m) hareholding structure * 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
Slide 20: Q&A
21 Q&A