Txt E-solutions S.p.a. · MIL:TXT
Txt E-solutions — 9M 2023 Earnings Presentation
19 slides from Txt E-solutions's earnings presentation, Nov 10, 2023
Slide 1: Call with Investors
Call with Investors November 10 | 9.30 a.m. (CET) Daniele MISANI, CEO Andrea FAVINI, IR
Slide 2: First 9 months 2023 results: organic and inorganic growth
First 9 months 2023 results show perfect mix of organic & inorganic growth to boost KPIs 2 Revenues Solid Organic EBITDA Net Profit €159 Mn Growth in 9m-23 (consolidated) (consolidated) +72.5% +14.2% €21.4 Mn €9.8 Mn vs. 9m-2022 +€14 Mn Equal to 13.4% of revenues +84% vs. 9m-2022
Slide 3: Revenues by Offering and EBITDA
3 Q3-2023 results showed 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. Target EBITDA margin for FY-2023 of more than 14%. Revenues by Offering EBITDA (€mn, % on total
Slide 4: Digital Innovation
Digital Innovation 4 Artificial Software Engineering Intelligence Digitization & Servitization of products Extended Reality Quality Data Analytics Software Engineering v 67% of Business * Digital Cybersecurity & Aviation Information Risk Management Smart Solutions v 19% of Business * Fintech, Smart
Slide 5: Division revenues and net debt adjusted
5 € 6.7Mn 9m-23, +16% vs. 9m-22 € 30Mn 9m-23, +9% vs. 9m-22 € 32Mn 20% of total revenues € 29Mn (Net Debt Adjusted) - € 23Mn* in Treasury Shares * Value calculated with stock price of € 16,84 per share (Share Price Sept. 30th, 2023)
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. Aerospace Industrial Telco, M
Slide 7: 9m-2023 Subsequent Events & Business Evolution
7 _9m-2023 Subsequent Events & Business Evolution
Slide 8: Smart Solutions
8 Smart Solutions: • New office in Montreal, Canada: PACE Canada Aerospace & IT has been founded in Q2-2023 to support operations of new international software businesses for the Aerospace & Aviation industry. • Embedded Graphics Business (“EG”) – VAPS XT: • Following closing of the investment agree
Slide 9: ReVersal SIM
9 ReVersal SIM: • ReVersal SIM, a Fintech start-up capitalized by TXT during 2021 with an initial investment of € 0.5 Mn that allowed TXT to owns the majority its share capital (51%), has been authorized from July 2022 to operate as a securities brokerage firm regulated by Bank of Italy and Consob I
Slide 10: Smart Solutions
10 Smart Solutions: • Multi-year subscriptions contract with initial annual value of up to over $1 Mn signed with the US airline JetBlue for the provision of ESG platform Pacelab FPO. Operations starts in 2024. • On October 9th, 2023, PACE – a TXT company, announced that FPO-SR, the solutions that c
Slide 11: Digital Advisory
11 11 Digital Advisory: • Division recorded a +38.8% organic growth in the first 9 months of 2023 (+43.9% in Q3-2023) led by the start and consolidation of the activities on CONSIP contracts (Public Sector). • New public contracts and strategic opportunities ahead: in Q4-2024 TXT is consolidating it
Slide 12: Software Engineering
12 12 Software Engineering: • Division recorded a double-digit organic growth in the first 9 months of 2023 (+12.2%), with an acceleration in Q3-2023 (+13.4%) with main drivers of the growth consisting of new multi-million contracts in the Aerospace & Defence segment, which recorded a +20% organic g
Slide 13: 9m-2023 Financials
13 9m-2023 FINANCIALS
Slide 14: Income statement 9m-2023
14 € thousand 30.09.2023 % 30.09.2022 % Var % REVENUES 159,356 100 92,400 100 72.5 Direct costs 102,670 64.4 56,538 61.2 81.6 GROSS MARGIN 56,686 35.6 35,862 38.8 58.1 Research and Development costs 6,724 4.2 5,778 6.3 16.4 Commercial costs 15,466 9.7 8,813 9.5 75.5 General and Administrative costs
Slide 15: Income statement Q3 2023
15 € thousand Q3 2023 % Q3 2022 % Var % REVENUES 52,057 100 29,862 100 74.3 Direct costs 32,722 62.9 18,056 60.5 81.2 GROSS MARGIN 19,335 37.1 11,806 39.5 63.8 Research and Development costs 2,224 4.3 1,824 6.1 21.9 Commercial costs 4,980 9.6 3,094 10.4 61.0 General and Administrative costs 4,650 8.
Slide 16: Net financial position
16 € thousand 30.09.2023 31.12.2022 Var Cash 31,400 33,015 (1,615) Trading securities at fair value 38,709 48,490 (9,781) Total Cash & Cash Equivalent 70,109 81,505 (11,396) Short term Financial Debts (54,809) (51,187) (3,623) Short term Financial Resources 15,299 30,318 (15,019) Other Long Term Fin
Slide 17: Capital employed and financing
17 € thousand 30.09.2023 31.12.2022 Change Intangible assets 77,871 77,975 (104 ) Tangible assets 20,297 18,293 2,004 Other fixed assets 22,125 19,360 2,765 Fixed Assets 120,293 115,628 4,665 Inventories 18,275 13,765 4,510 Trade receivables 63,139 73,115 (9,976 ) Other short term assets 14,625 15,3
Slide 18: Shareholders, share price and dividends
18 * Latest Public Data Available as of 30 Sept. 2023 Treasury 18 16,3 Shares; 11% 16 13,5 L.V.O. Global Asset Laserline 14 4,6 Management S.A. SpA; 30% 12 3% 10 8 6,8 11,4 5,3 5,5 6 11,7 1 4 5,8 5,3 5,5 2 0,76 0,26 2,1 Market; 0 0 0,5 0 43% 2018 2019 2020 2021 2022 H1-23 Managers; Repurchase Treasu
Slide 19: Q&A
20 Q&A