Tinexta Spa · MIL:TNXT
Tinexta Spa — Investor Presentation (March 2022)
52 slides from Tinexta Spa's investor presentation, March 2022
Slide 1: Company Presentation
Company Presentation March 2022
Slide 2: Agenda
Agenda 1 Company Overview 2 2021 Results 3 2022 – 2024 Plan 4 Appendix 2
Slide 3: Tinexta's Management
1 Tinexta’s Management PIER ANDREA CHEVALLARD ODDONE POZZI JOSEF MASTRAGOSTINO General Manager & Chief Executive Officer Group Chief Financial Officer Chief Investor Relations Officer ▪ Former CEO of Tecno Holding ▪ Group Chief Financial Officer and ▪ Head of Investor Relations ▪ General Secretary o
Slide 4: Tinexta's history & evolution
1 Tinexta’s history & evolution Tinexta has successfully grown into one of the largest qualified operators in the Financial Services sector in Italy Tecno Holding Listing on AIM Italia Listing on the STAR Internationalization Cyber Security + France Entrance in Spain 2009 2014-2015 2016-2017 2018-20
Slide 5: Tinexta's Business: Key metrics FY'21 and Guidance 2022
1 Tinexta’s Business Key metrics (FY’21) – Guidance 2022 Revenues* EBITDA Adj.* NFP/EBITDA Adj. Net Profit FCF Dividend Employees €375M €99M 2.67x €40M >€55M €0.30 or 35% 2,259 +18-20% vs PY +20-22% vs PY c.2x of Net Profit Digital Trust Cyber Security Credit Information & Management Innovation & Ma
Slide 6: 2021 Results by Business Unit
1 2021 Results by Business Unit CREDIT INNOVATION & DIGITAL TRUST CYBER SECURITY INFORMATION & MARKETING MANAGEMENT SERVICES Revenues €95M €131M €73M €79M EBITDA Adj €36M €10M €23M €41M EBITDA Adj. Margin 28% 14% 29% 43% 25.1% DT DT 34.7% 33.0% CS 37.2% Revenues Distribution CS EBITDA Distribution C
Slide 7: Digital Trust – Snapshot
1 Digital Trust – Snapshot Business at a glance CAGRs: +23-31% Digital Trust Brands Market & Growth expectations p.a. ▪ Provides IT solutions for digital identity and the ▪ DTM/E-Signature market $640M (EU), $2.3B World dematerialization of processes according to the applicable legislation ▪ Digital
Slide 8: Cyber Security – Snapshot
1 Cyber Security – Snapshot Business at a glance CAGR: Cyber Security Brands Market & Growth expectations +8% p.a. ▪ Created a new player in the ▪ The Italian Cyber Security market (worth €2.1B) is expected to grow 8%* sector, to be the National Hub of per year. Cyber Security. ▪ Functional areas an
Slide 9: Credit Information & Management – Snapshot
1 Credit Information & Management – Snapshot Business at a glance Credit Information & Management Brands Market & Growth trends Offers: ▪ Increased demand for data in Business Info given higher predictive value ▪ The Banking sector is dealing with possible new NPE management needs due to the default
Slide 10: Innovation & Marketing Services – Snapshot
1 Innovation & Marketing Services – Snapshot Business at a glance Innovation & Marketing Services Main Brands Market & Growth trends ▪ The Budget Law 2021 in Italy introduced important corrections both in the area of R&D, Innovation, Design Tax Credit (from 2022) and in the area of Offers Consultanc
Slide 11: Results 2021 – Trend
1 Results 2021 – Trend Tinexta Group's Revenues grew at a 25.5% CAGR from 2014 to 2021. EBITDA Adjusted grew at a 36.6% CAGR over the same period. Revenues (€M) EBITDA Adjusted (€M) NFP (€M) NFP/EBITDA Adj.* 375.4* 2.67x 98.7* Considering Bregal’s investment of €70M completed on 3 February 2022: 85.
Slide 12: Results 2021 – Dividends
1 Results 2021 – Dividends Dividends Per Share (€) Overall Dividends (€M) 35.0% N 31.8% N 33.3% O O 13.8 0.30 12.0 D 11.0 D I 0.26 I V V 0.228 I 32.3% I D D E E N 6.5 N 34.9% D 23% 0.14 D S S 30.1% 4.0 0.088 P 0.08 P A 2.5 A I 0.047 I D 1.5 D 2014 2015 2016 2017 2018 2019 2020 2021 2014 2015 2016 20
Slide 13: Agenda
Agenda 1 Company Overview 2 2021 Results 3 2022 – 2024 Plan 4 Appendix 13
Slide 14: Performance 2021
2 Performance 2021 Achieved further growth in most Business Units strengthening the Group’s market position Created solid grounds for Cyber Security’s expansion; secured key clients/contracts Expanded the Group internationally by entering the French market in Digital Trust Entered in strategic partn
Slide 15: FY 2021 Another year of growth
2 FY 2021 Another year of growth • FY 2021 registered strong progress: - Revenues1 at € 375.4M (+39.5% vs PY, +7.7% on a 2020 base); - EBITDA Adjusted1 at € 98.7M (+21.5% vs PY, +2.7% on a 2020 base), EBITDA2 at € 93.0M (+19.4% vs PY, +1.5% on a 2020 base); - EBITDA Adjusted1 margin 26.3% (28.8% on
Slide 16: FY 2021 Consolidated Results
2 FY 2021 Consolidated Results 2021 Results show revenues of 375.4 million euros, EBITDA Adjusted of 98.7 million euros and Net Profit of 44.9 million euros. EBITDA Reported is 93.0 million euros • 2021 Results show a growth both in Revenues (+39.5%) and in EBITDA 375.4* Adjusted (+21.5%). These res
Slide 17: Q4'21 Consolidated Results
2 Q4’21 Consolidated Results Q4’21 Results show revenues of 113.8 million euros, EBITDA Adjusted of 35.4 million euros and Net Profit of 15.5 million euros. EBITDA Reported is 33.4 million euros • Q4’21 Results show a growth both in Revenues (+41.9%) and in EBITDA 113.8* Adjusted (+45.7%). These res
Slide 18: EBITDA Walkthrough
2 EBITDA Walkthrough EBITDA Adjusted WALKTHROUGH €M ca. €96M €98.7M ▪ Expected back-ended year EBITDA growth and overdelivered on all accounts c. 54 56.4 ▪ 2021 EBITDA Adjusted was €98.7M Mostly Covid, followed by rebound 46.3 46.0 ▪ Quarter on quarter performance is not 42.3 Margin representative o
Slide 19: FY 2021 Financial Results – FCF & NFP
2 FY 2021 Financial Results – FCF & NFP NFP FREE CASH FLOW €M Decrease is mainly Main Changes in 2021: 66.7 due to higher taxes 56.4 paid offset by 263.3 • - € 193.3M acquisitions continued Bregal’s Bregal • Corvallis: - € 56M improvement in investment of • Yoroi: - € 38.6M €70M completed 70.0 worki
Slide 20: Business Units Deep Dive – Overview FY 2021
2 Business Units Deep Dive – Overview FY 2021 DIGITAL TRUST CREDIT INFORMATION & MGMT €M 131.3 79.0 115.8 128.6 77.3 75.4 GROUP 36.4 22.8 31.0 35.2 23.7 22.0 2020 2021 2020 2021 2020 2021 2020 2021 REVENUES EBITDA Adj. REVENUES EBITDA Adj Perimeter 2020 Δ Perimeter Perimeter 2020 Δ Perimeter CYBER S
Slide 21: Agenda
Agenda 1 Company Overview 2 2021 Results 3 2022 – 2024 Plan - 2022 – 2024 Plan - 2022 – 2024 Plan + M&A 4 Appendix 21
Slide 22: Key pillars of our strategy – 2022-2024 Plan
3 Key pillars of our strategy – 2022-2024 Plan Strengthen our leadership in Continue to leverage on Selective M&A + our reference markets strong organic growth Internationalization 1 2 3 People & Organization Increase integration + Laser focused financial policy ESG 4 5 6 PNRR «Piano Nazionale di Ri
Slide 23: Key pillars of our strategy 1/6
3 Key pillars of our strategy – 2022-2024 Plan 1/6 ➢ Strengthen market presence via vertical integration in: ❖ Digital Trust ❖ Cyber Security ❖ Digital Innovation Strengthen our leadership in ❖ Digital Marketing our reference markets ➢ Grow presence in the Public Administration market 1 ➢ Foster cro
Slide 24: Key pillars of our strategy 2/6
3 Key pillars of our strategy – 2022-2024 Plan 2/6 ➢ Strong sector organic growth yields continuous momentum for Tinexta Continue to leverage on ➢ The markets in which the Group operates are growing at attractive rates strong organic growth ➢ The Group’s product offering is constantly fine tuned to
Slide 25: Key pillars of our strategy 3/6
3 Key pillars of our strategy – 2022-2024 Plan 3/6 Major M&A Stringent criteria Digital Trust Credit Information & Mgmt Solid Business Fundamental Only Selective M&A with key strategic criteria to enter Tinexta Growing market segment Group Selective M&A + Strategic Fit & Finish Internationalization
Slide 26: Key pillars of our strategy 4/6
3 Key pillars of our strategy – 2022-2024 Plan 4/6 ➢ Centralized CRM ➢ Group Sales & Marketing enables: ❖ Central coordination for the development of an integrated offer of the Group and the related “go to market” ❖ Streamlining the newly instituted Forvalue channel to strengthen the Increase integr
Slide 27: Key pillars of our strategy 5/6
3 Key pillars of our strategy – 2022-2024 Plan 5/6 Group FTE & by BU ➢ Higher growth of employment - driven by business expansion (mainly M&A) - 2259 requires solid grounds of project analysis and involves the redefining of the: 1272 1285 ❖ Organization & integration of People & Organization process
Slide 28: Key pillars of our strategy – ESG
3 Key pillars of our strategy – 2022-2024 Plan - ESG 5/6 Environment, Social & Governance Key accomplishments in 2021 What to expect Beyond 2022 Main activities: Environmental Social ✓ From Compliance to Engagement ▪ Benchmark ✓ Performed Benchmark ESG with Gap analysis to better ▪ Gap Analysis unde
Slide 29: Key pillars of our strategy 6/6
3 Key pillars of our strategy – 2022-2024 Plan 6/6 ➢ Continue to focus on Cash Flow constantly applying a “Cash is King” approach ➢ Attractive leverage ratio ❖ Pro-forma leverage ratio for Bregal’s investment yields competitive Laser focused financial policy ratios ➢ Strong attention to cost 6 ➢ Env
Slide 30: Key pillars of our strategy – PNRR
3 Key pillars of our strategy – 2022-2024 Plan PNRR PNRR Funding (€B) PNRR Allocations (€M) Recovery Plan - PNRR «Piano Nazionale di Ripresa e Resilienza» 7 ➢ Among the PNRR’s priorities, Digitalization assumes a pivotal role of role and Tinexta is expected to strongly benefit from it in an indirect
Slide 31: Key pillars of our strategy – PNRR
3 Key pillars of our strategy – 2022-2024 Plan PNRR Italy & Digitalization: 4 critical aspects that deserve top priority Low digitalization of the economy and society Italy 25th in the European Commission's DESI digitization index Recovery Plan - PNRR Skills shortage Delays in the digitalization of
Slide 32: Priorities for superior shareholder return
3 2022-2024 Plan – Priorities for superior shareholder return Improve operational efficiency by increasing the Continued growth in quality revenues EBITDA Margin of the Group a) b) Improving EPS as well as growing DPS Strong cash generation and robust balance sheet c) d) c) 32
Slide 33: Revenue growth driven by organic growth and M&A
3 a) Revenue growth driven by significant organic growth and M&A Organic Growth M&A • Continued acquisition strategy in selected • Continue to expect strong market growth countries: following a strong 2021 • France, Spain, UK & Germany • To reinforce and defend our market shares • Growth among all B
Slide 34: Profitability driven by sector growth & operating leverage
3 b) Profitability driven by sector growth & operating leverage The drivers of profitability Fuel for growth • People • Local and International scale • Attracting, rewarding and retaining • Operating leverage talent • Cross-selling + potential synergies • Change Management (awareness, • Centralized
Slide 35: EPS growth & DPS
3 c) EPS growth & DPS D&A Financial Expenses Taxes • Ratio on revenues in line with prior • ~ 1% all-in average cost of debt • In line with recent years years DPS (€) EPS Adj. (€) 0.26 0.87 0.228 0.82 0.77 No dividends paid 0.140 0.47 0.42 0.37 0.080 0.088 0.047 0.14 2014 2015 2016 2017 2018 2019 20
Slide 36: Sustained cash flow generation and robust balance sheet
3 d) Sustained cash flow generation and robust balance sheet Operating Cash Flow Capex Cash-out for M&A • Continued sustained pace of acquisitions in selected markets: • Continued strong cash conversion • France, Spain, UK & Germany • On average substantially in line with recent years • Strict manag
Slide 37: 2022-2024 Key Financial Targets
3 2022-2024 Key Financial Targets Guidance 2022 (Organic) 2022 with acquisitions 2024 with acquisitions Revenues ~ 10-12% growth vs PY ~ 18-20% growth vs PY Low double digits CAGR 2022-2024 Mid double digits EBITDA Adjusted ~ 8-10% growth vs PY ~ 20-22% growth vs PY CAGR 2022-2024 NFP/EBITDA Adjuste
Slide 38: The Group – Business Plan 2022-2024; Organic growth
3 The Group – Business Plan 2022-2024; Organic growth The Three-Year Plan, on an organic basis, forecasts the following growth rates Revenues (€M) EBITDA Adj. (€M) 369.0 96.8 269.0 81.2 2020 2021 2022E 2023E 2024E 2020 2021 2022E 2023E 2024E The 2022-2024 Plan is based on various assumptions, expect
Slide 39: The Group – Business Plan 2022-2024; Organic growth
3 The Group – Business Plan 2022-2024; Organic growth The Three-Year Plan based on the new perimeter provides for a significant reduction in net debt and a gradual reduction in the NFP/EBITDA Adjusted ratio at the end of the plan, which is expected to be <1x ~ 2x deleverage 263.3 2021 2.7x* *With Br
Slide 40: Bridging the NFP to Guidance
▪ >€220M of FCF between 2022-2024 3 Bridging the NFP to Guidance ▪ Bregal Milestone investment of €100M spread between 2022-2023 263.3 ▪ >€55M in dividends between 2022-2024 ~ 2.0x NFP/2022 ~ 20M EBITDA Adj. ~ 10M ~ 20M ~ -60 40M ~ 0.7x/0.8x NFP/2024 -70M ~ 35M EBITDA Adj. ~ 35M ~ > -160M -30M €M 40
Slide 41: Digital Trust – Business Plan 2022-2024
3 Digital Trust – Business Plan 2022-2024 The Three-Year Plan on an organic basis provides a growth in revenues of around 10.0% and in EBITDA Adjusted of around 14.0%, with acquisitions Revenue growth is c. 14% and EBITDA Adjusted growth c. 18% Revenues (€M) EBITDA Adj. (€M) Acquisition (CERTEUROPE)
Slide 42: Cyber Security – Business Plan 2022-2024
3 Cyber Security – Business Plan 2022-2024 The Three-Year Plan provides for revenue growth of approximately 19% and EBITDA Adjusted growth of approximately 31% Revenues (€M) EBITDA Adj. (€M) 72.8 10.1 2021 2022E 2023E 2024E 2021 2022E 2023E 2024E The 2022-2024 Plan is based on various assumptions, e
Slide 43: Credit Information & Management – Business Plan 2022-2024
3 Credit Information & Management – Business Plan 2022-2024 The Three-Year Plan on an organic basis provides for revenue growth of around 6% and EBITDA Adjusted growth of around 5% Revenues (€M) EBITDA Adj. (€M) 77.3 75.4 74.3 72.6 23.7 22.0 17.5 15.6 2018 2019 2020 2021 2022E 2023E 2024E 2018 2019
Slide 44: IMS – Business Plan 2022-2024
3 IMS – Business Plan 2022-2024 The Three-Year Plan on an organic basis (i.e., constant perimeter) forecasts revenue growth of approximately 7% and EBITDA Adjusted growth of c. 5%. Including recent acquisitions, revenues will grow by around 11% and EBITDA will grow by c. 10% Revenues (€M) EBITDA Adj
Slide 45: Agenda
Agenda 1 Company Overview 2 2021 Results 3 2022 – 2024 Plan - 2022 – 2024 Plan - 2022 – 2024 Plan + M&A 4 Appendix 45
Slide 46: M&A: The track record
3 M&A: The track record • A consolidated track record in delivering accretive M&A • Since 2013 Tinexta has completed 27 M&A Deals for a total investment of about €450M 2020 2021 2022 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Digital Trust 16.6% 60% Cyber MoU to support
Slide 47: Business Plan 2022-2024; Organic growth + Acquisitions
3 The Group – Business Plan 2022-2024; Organic growth + Acquisitions Accelerated growth in Revenues and EBITDA adjusted with the contribution of recent acquisitions Revenues (€M) EBITDA Adj. (€M) CertEurope, Forvalue and Evalue CertEurope, Forvalue and Evalue Tinexta Tinexta 375.4 98.7 269.0 81.2 20
Slide 48: Agenda
Agenda 1 Company Overview 2 2021 Results 3 2022 – 2024 Plan 4 Appendix 48
Slide 49: FY 2021 Financial Results – Income Statement
4 FY 2021 Financial Results – Income Statement Perimeter 2021 Perimeter 2020 FY 2021 on FY 2021 % FY 2020 % % Δ Δ% Δ Δ% 2020 Revenues 375.4 100.0% 269.0 100.0% 289.8 100.0% 106.3 39.5% 20.8 7.7% Total Operating Costs 276.6 73.7% 187.8 69.8% 206.4 71.2% 88.8 47.3% 18.6 9.9% Service & Other Costs 138.
Slide 50: The Group today
4 The Group today 88.17% 100.0 % 100.0 % 75.0 % 95.0 % 100.0 % 100.0% 100.0 % 80.0 % 60.0% 100.0 % 100.0 % 60.0 % 100.0 % 51.0 % 100.0 % 100.0 % 51.0 % 60.0 % 100.0 % 99.99 % Perù 100.0 % 70.0% 50.0 % 100.0 100.0 % % 60.0 % 70.0% Financial Clab 100.0% Financial Clab 100.0 % S.r.L S.r.L. 70.0% Digita
Slide 51: Disclaimer
Disclaimer • This document was prepared by Tinexta Spa (the “Company”) for the sole purpose of presenting the performance and the activities of the Company. • The information provided with this document does not contain nor constitute an offer of securities for sale, or the solicitation of an offer
Slide 52: Investor relations: [email protected]
Investor relations: [email protected]