Txt E-solutions S.p.a. · MIL:TXT
Txt E-solutions — Investor Day (May 2025)
39 slides from Txt E-solutions's investor day presentation, May 27, 2025
Slide 1: Your Global Digital Enabler - Capital Markets Day
YOUR GLOBAL DIGITAL ENABLER Capital Markets Day 27 May 2025
Slide 2: Agenda
Capital Markets Day 2025 01 Your Global Digital Enabler Agenda 02 03 Continuous Growth with Focus on Value TXT Positioning a) Offering b) Markets 04 2025 – 2027 Group Financial Targets 05 Closing Remarks Speakers: Enrico Magni Daniele Misani Frank Ehlermann Nicola Cordone Chairman CEO A&D Cluster Le
Slide 3: WHO: Your Global Digital Enabler
USA CANADA UK DE WHO Seattle Montreal Bristol Köln Berlin CH Munich NL Chiasso Your Global Delft Stans Lucerna Digital Enabler France Toulouse ITALY Milano Torino Singapore SPAIN Novara Bologna Brescia Roma Prma Bari Palermo Cagliari CHILE BRASIL €350Mln July 2000 20+ 30+ 3500+ Revenue 2024 Pro-Form
Slide 4: WHAT: Digital Innovation and Digital Technology
a n i z a tio n s C o WHAT m ple x Or g r e Bu sine s Digital Innovation o o f p r o c es s e s an s C o n d pr ati odu ov cts n In CYBER SECURITY ARTIFICIAL INTELLIGENCE IOT Digital Technology EXTENDED REALITY CLOUD
Slide 5: Advise, Speed up, Make it!
WHAT Digital Innovation Aerospace Industrial Telco, Media Fintech Public Martech & Defence & Automotive & Gaming Sector DIGITAL ADVISORY Advise Reshaping and automation of processes SMART SOLUTIONS Speed up Innovative platforms to accelerate customer ’s go-to-market SOFTWARE ENGINEERING Make it! Dig
Slide 6: FCAS and major defence European programs
WHAT FCAS Major Defence European Programs France Italy Digital Innovation Germany UK GCAP Spain Japan DIGITAL ADVISORY Advise Requirements Standards SMART SOLUTIONS Speed up SOFTWARE ENGINEERING Make it! Airborne systems Training & Simulations
Slide 7: A strategy based on Acquisitions & Synergies
HOW A strategy based on Acquisitions & Synergies POSITIONING WE ENABLE Specialized front end boutiques of WE LEVERAGE WE LEVERAGE competencies empowered by a solid listed Group with a strong commitment to M&A Organic growth ESG principles and objectives, as outlined through commercial in the 2024 Su
Slide 8: Reliability + Agility positioning
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 positioning TXT’s Companies positioning TXT Company Reliability + Agility TXT Size
Slide 9: Continuous growth with focus on value
Continuous growth with focus on value
Slide 10: Accelerated Growth to Continuous growth
PHASE 1 PHASE 2 Accelerated Continuous growth Growth with focus on value Consolidation of 20+ companies Organic growth (CAGR) >10% REVENUES EBITDA MARGIN 36MLN CAGR +36% 305MLN 12.9% Reported +210 bps 15% Target EBITDA Margin 2017 2024 2027
Slide 11: Sustain organic growth through synergies
Sustain organic growth through synergies Strat e gic p o s it io n in g To leverage sustainable and long in a&D Market term growth. TECH & COMPETENCE CENTERS Strong Recurrent As business accelerator for TXT in Public & Long-term business Sector, Health and Strong Positioning to capture opportunitie
Slide 12: Phase 1 and Phase 2 growth plan
PHASE 1: 2017 - 2024 PHASE 2: 2025 - 2027 Accelerated Continuous growth Growth with focus on value 20+ acquisitions completed, continuous focus on CONTINUITY with Phase 1 but more focus on sustainable sustainable investments with the engagement of profitability and complementarity of offering entrep
Slide 13: Offering
OFFERING
Slide 14: Domestic Digital Market by Segment
Domestic Digital Market Source: NetConsulting Cube, October 2024 Il Digitale in Italia 2024 – Previsioni 2024-2027 by Segment Digital Market 2024E Annual % Growth 25E/24E 26E/25E 27E/26E TXT focus segments 20% 24% 8,8% 8,6% 8,7% TXT focus segments 23% 12% 4,6% 4,6% 4,5% 4,5% 4,4% 4,4% 4,1% 4,2% 3,8%
Slide 15: Digital advisory
Digital advisory AdviSe We operate with 3 go-to-market pillars (divisions) Digital advisory deals with reshaping and automation of processes. ~€ 70MLN BLUE-CHIP CUSTOMERS € 54MLN 80% Pro-Forma EBITDA Revenues margin target 80%+ of Digital Innovation business € 49MLN ~14.6% carried out with blue-chip
Slide 16: Smart solutions
Smart solutions SPEED UP ~€ 125MLN € 77MLN EBITDA Margin Target Pro-Forma with Capex ~35% Yearly R&D Investments (Avg.) R&D fully ~20% € 64MLN expended ~15% Reported Revenues Sales reinvested to lead innovation REcurrent business 3Y CAGR ~17% >80% 2024 2027
Slide 17: Software engineering
Normalized 3-Y CAGR excluding one-off MAKE IT! * revenues from FY-2024: ~9% Software engineering ~€ 280MLN € 229MLN Pro-Forma € 191MLN Reported EBITDA margin target ~13% Revenues MULTI-YEAR projects > 50% 3Y CAGR ~7%* 70%+ of business forecasted for the next year is from contracts and tenders acquir
Slide 18: Markets
MARKETS
Slide 19: Domestic Digital Market by Industry
Domestic Digital Market Source: NetConsulting Cube, October 2024 Il Digitale in Italia 2024 – Previsioni 2024-2027 by Industry TXT focus segments 14,0% 12,0% PAL Healthcare 10,0% PAC 8,0% CAGR 2027E/2024E Insurance & Banks Utilities Financial 6,0% Education Industries Retail Travel & Transportation
Slide 20: TXT Group's revenue incidence by Industry
TXT Group’s revenue incidence by Industry 2024 3-Y CAGR 2027 Public Sector 25% 24.3% +14% 22.7% Aerospace & Defence 21.4% +14% 20.5% 20% 19.6% Telco 17.2% Flat Emerging leader Industrial +5% 15.4% in top performing 15% +15% 15.1% 14.5% markets. 13.4% Fintech MARGIN INDICATOR 10% Top Good Martech 8%
Slide 21: Aerospace & Defense Market Overview & Trends
Aerospace & Defense Market Overview GLOBAL CIVIL AVIATION MARKET * & Trends 2023 Avg Growth Rate: ~9% Estimated 2030 $0.9 * Source: Trillions $1.6 Zionmarketresearch.com; Civil Aviation Market Size, Share, Trends, Trillions Growth and Forecast 2030 NATO DEFENCE MARKET ** 2023 2-5% of GDP expected Es
Slide 22: Aerospace & Defense Positioning & Proposition
Aerospace & Defense Positioning & Proposition Technologies
Slide 23: Aerospace & Defense Strategic Initiatives
Aerospace & Defense 2024 2027 Strategic Initiatives Revenues (Pro-Forma) Revenues (Target) €74MLN €108MLN Incidence Incidence 20.5% 22.7% ~0% 14% Churn-rate last 5-Y Top Line 3-Y CAGR
Slide 24: Fintech Market Overview & Trends (Domestic)
FINTECH Market Overview & Trends (Domestic) ITALIAN DIGITAL FINANCE and insurance MARKET * 2024 Avg Growth Rate: 7.5% Estimated 2027 €13.3 Billions €16.5+ Billions Source: NetConsulting Cube, October 2024 * Il Digitale in Italia 2024 – Previsioni 2024-2027 Italian Digital Market for the Banks, Insur
Slide 25: Fintech TXT Positioning & Proposition
FINTECH TXT Positioning & Proposition ADVISORY DIGITAL DIGITAL DIGITAL CHANNEL & LENDING PAYMENTS ONBOARDING & RISK ARTIFICIAL INTELLIGENCE
Slide 26: Fintech Strategic Initiatives
FINTECH 2024 2027 Revenues (Pro-Forma) Revenues (Target) Strategic Initiatives €48MLN €73MLN Incidence Incidence 13.4% 15.4% 15% >25% Top Line 3-Y CAGR (Target) EBITDA 3-Y CAGR (Target)
Slide 27: Public Sector Market Overview & Trends (Domestic)
public sector Market Overview & Trends (Domestic) ITALIAN DIGITAL MARKET FOR PUBLIC AND HEALTHCARE * 2024 Avg Growth Rate: 10% Estimated 2027 €8.8 Billions €11.7+ Billions Source: NetConsulting Cube, October 2024 * Il Digitale in Italia 2024 – Previsioni 2024-2027 Italian Digital Market for the “PAC
Slide 28: Public Sector Positioning & Proposition
public sector Reference Strategic TXT Positioning Projects: & Proposition Technologies
Slide 29: Public Sector Strategic Initiatives
public sector 2024 2027 Revenues (Pro-Forma) Revenues (Target) Strategic Initiatives €77MLN €115MLN Incidence Incidence 21.4% 24.3% €300+ 14% MLN Multi-year Contract Backlog Top Line 3-Y CAGR
Slide 30: Financial Guidance
FINANCIAL GUIDANCE
Slide 31: Financial KPIs — Organic growth
* current perimeter including IT Values Financial KPIs — Organic growth ** →→ after dividends payout 20% Net Profit / year including monetization from sale of BDF stake → excluding buyback-related outflows 2024 Reported 2024 PF* 3-Y CAGR 2027 Revenues (€) 305MLN ~360MLN ~10% ~475MLN EBITDA (€) 39MLN
Slide 32: M&A Figures 2027
* BP Assumption: all acquisitions from M&A Plan 2027 closed at year-end 2027 M&A Figures 2027* ** Including appx. € 8Mn of Treasury Shares available as of the date of TXT CMD POTENTIAL outlay for m&a ebitda acquired from m&a ** ~160Mn ~20Mn Avg. % EBITDA: 15% EV sales/m&A EV/ebitda m&A ~1.2x ~8.0
Slide 33: Financial KPIs — With M&A
Financial KPIs — With M&A BP Assumption: all acquisitions from M&A Plan 2027 closed at year-end 2027 * ** current perimeter including IT Values → after dividends payout 20% Net Profit / year → including monetization from sale of BDF stake → excluding buyback-related outflows 3-Y CAGR M&A 2027 Organ
Slide 34: Aspirational Mid-Long Term
Aspirational Mid-Long Term REVENUES (€ MLN) EBITDA (€ MLN) 800+ 135+ EBITDA Margin 16%+
Slide 35: Closing Remarks
CLOSING REMARKS
Slide 36: Closing Remarks
Closing CONFIDENCE on 2025 GUIDANCE Revenues EBITDA Remarks (Organic) MARGIN TXT is an emerging leader with >8% >14% Unique mix of Industry Knowledge and Technology expertise CONTINIOUS ORGANIC GROWTH of REVENUEs End-to-End go-to-market approach: Advise, Accelerate, Make IT ~ 10 % 3-Y CAGR (Target)
Slide 37: Q&A
Q&A For further questions: IR - infofinance@txtgroup.com
Slide 38: Disclaimer
This presentation includes statements that are forward-looking Disclaimer in nature, reflecting the intentions, beliefs, or current expectations regarding future growth across various business lines, overall company performance, financial outcomes, and other elements related to the TXT Group's opera
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