Tinexta Spa · MIL:TNXT
Tinexta Spa — 2024 Italian Excellences
36 slides from Tinexta Spa's conference presentation, October 2024
Slide 1: 2024 Italian Excellences Company Presentation
2024 Italian Excellences Company Presentation Paris – October 2024
Slide 2: Disclaimer
Disclaimer This company presentation includes: ➢ forward-looking data based on internal management assumptions that are subject to material changes, including changes due to external factors beyond the Group's control ➢ management data, when presented, are identified as such Business unit data are d
Slide 3: Company Overview
Company Overview WZ TINEXTA
Slide 4: Management Team
Company Overview Management Team Oddone Pozzi Pier Andrea Chevallard Josef Mastragostino Chief Financial Officer GM & Chief Executive Officer Chief Investor Relations Officer • Group CFO and Board Member • Former CEO of Tecno Holding • Head of Investor Relations Gamenet & Mondadori Group • General S
Slide 5: Tinexta's history – Milestones
Tinexta’s history – Milestones 2020 2016 2009 2022 2024 Group’s beginning Consolidation Cybersecurity M&A development Further growth > Tecno Holding, an > Acquisitions of Visura, > Acquisition of > Acquisition of: Evalue, > Reached the 100% institutional shareholder Innolva, ReValuta, Corvallis, Yor
Slide 6: Reached all planned targets
Company Overview LEGEND KEY NUMBERS Reached all planned REVENUES EBITDA Adj. NFP/EBITDA Adj. Net Profit Adj. FCF targets 2023 Guidance +11-15% vs PY +8-12% vs PY 0.7-0.8x FY2023 Results €395.8M (+11%) €103.0M (+9%) 0.99x* €70M €57M Digital Trust Cybersecurity Business Innovation Refers to IT solutio
Slide 7: Consolidated Results
Company Overview Consolidated Results €M Revenues EBITDA Adjusted NFP 20.0% CAGR ‘14-‘23 28.1% CAGR ‘14-‘23 395.8 264.4 103.0 357.2 94.8 301.5 81.2 76.8 76.5 269.1 258.7 66.6 239.6 0.99x* 181.0 124.9 129.1 147.3 104.4 102.0 38.9 91.9 126.4 30.2 71.2 77.6 25.5 76.6 11.1 2014 2015 2016 2017 2018 2019
Slide 8: 1H 2024 Results
1H 2024 Results TINEXTA
Slide 9: Key data
Key data REVENUES € 203.0 M EBITDA Adjusted € 34.4 M (- 9% vs PY) EBITDA EBIT Adjusted + 11% vs PY € 25.5 M € 19.5 M NET PROFIT Adjusted € 11.9 M FCF Adjusted of cont. ops. NFP € 25.8 M € 276.9 M Results at 30/06/2024 vs € 102 M in FY2023 9
Slide 10: 1H 2024: Updating, after the first six months
1H 2024 Results 1H 2024: Updating, after the first six months • Results: - Revenues at € 203.0M in 1H’24 (+ 11.3% vs PY); - EBITDA Adjusted at € 34.4M in 1H’24 (- 9.1% vs PY) mainly impacted by ABF’s contribution combined with CS’s less favorable revenue mix and BI’s known seasonality, partially off
Slide 11: 1H 2024 Results
1H 2024 Results 1H 2024 Results 1H 2024 results show Revenues of € 203.0 €M million, EBITDA Adjusted of € 34.4 million and Net Profit of € 2.3 million. Growth was registered in Revenues (c. + 11%) with a light contraction in EBITDA Adjusted (c. - 9%) EBITDA Adjusted amounted to 34.4 million euros EB
Slide 12: EBITDA Adjusted Quarter by Quarter – back end weighted business
1H 2024 Results EBITDA Adjusted Quarter by Quarter – back end weighted business €M 2024 to have 60% 61% 63% noticeable 2H EBITDA Significant 2H generation historical weight driven by business model ~ 46.1 ABF 40.0 29.5 22.6 22.9 19.1 17.7 19.0 19.3 16.2 14.5 15.0 15.1 Weight of each Q 11.7 on Total
Slide 13: 1H 2024 Results – Income Statement
1H 2024 Results 1H 2024 Results – Income Statement 1H 2024 with Acquisitions LFL2023 €M 1H’24 % 1H’23 % % on 2023 Δ Δ% Δ Δ% Revenues 203.0 100.0% 182.5 100.0% 186.4 100.0% 20.5 11.3% 3.9 2.1% Total Operating Costs -168.6 -83.0% -144.6 -79.2% -153.9 -82.6% -24.0 16.6% -9.3 6.4% Service & Other Costs
Slide 14: 1H 2024 Results – A clear view on P&L Adjustments
1H 2024 Results 1H 2024 Results – A clear view on P&L Adjustments EBITDA Operating profit (loss) Net profit from continuing operations €M 1H 2024 1H 2023 1H 2024 1H 2023 1H 2024 1H 2023 Reported income statement results 25.5 34.5 0.9 15.2 2.3 9.3 Non-recurring service costs 3.8 1.4 3.8 1.4 3.8 1.4 L
Slide 15: 1H 2024 Results – Balance Sheet
1H 2024 Results 1H 2024 Results – Balance Sheet €M 706.2 Net invested capital increased by € 149.2 million compared to 31 December 2023 mainly due to the investment in ABF for a total of € 134.0 Net 557.0 million at the acquisition date, in Lenovys for a total of € 17.4 million and Invested + 26.8%
Slide 16: Overview Business Units
1H 2024 Results Overview Business Units €M Digital Trust Cybersecurity Group 102.3 42.6 45.3 86.4 24.4 29.4 4.8 4.1 203.0 1H 2023 1H 2024 1H 2023 1H 2024 1H 2023 1H 2024 1H 2023 1H 2024 182.5 Margin Margin REVENUES EBITDA Adj. REVENUES EBITDA Adj. 20.8% 17.0% Business Innovation 37.9 34.4 1H 2023 1H
Slide 17: 1H 2024 – Digital Trust
1H 2024 Results 1H 2024 – Digital Trust €M 102.3 8.2 Margin Margin 28.2% 28.8% 29.4 86.4 94.1 2.6 24.4 26.9 1H 2023 1H 2024 1H 2023 1H 2024 REVENUES EBITDA Adj. LFL 2023 Δ Acquisitions • Revenues amounted to 102.3 million euros, up by 18.4% (+ 8.9% on a 2023 basis) of which 9.5% attributable to the
Slide 18: 1H 2024 – Cybersecurity
1H 2024 Results 1H 2024 – Cybersecurity €M 42.6 45.3 Margin Margin 11.3% 9.0% 4.8 4.1 1H 2023 1H 2024 1H 2023 1H 2024 REVENUES EBITDA Adj. • Revenues amounted to 45.3 million euros, up 6.5%. The growth was mainly supported by the resale component of third-party products in the Implementation Service
Slide 19: 1H 2024 – Business Innovation
1H 2024 Results 1H 2024 – Business Innovation €M 59.9 8.5 Margin Margin 29.0% 17.1% 56.1 51.4 10.3 16.3 10.9 1H 2023 1H 2024 1H 2023 1H 2024 REVENUES EBITDA Adj. LFL 2023 Δ Acquisitions • Revenues amounted to 59.9 million euros growing 6.7% vs PY thanks to the announced acquisitions of Studio Fiesch
Slide 20: Explaining ABF
1H 2024 Results Explaining ABF €M The 1H’24 exceptional events in France have noticeably increased the effect of seasonality, determining a 6 months delay • Government change in January • Significant budget revisions at the end of February • Dissolution of the National Assembly at the end of June …w
Slide 21: 1H 2024 Results – NFP & FCF
1H 2024 Results 1H 2024 Results – NFP & FCF €M NFP Adjusted FCF of continuing ops 29.3 Main Changes in 1H 2024: 1.3 25.8 276.9 • - € 4.6M Put Options 11.5 • + € 4.1M Treasury Shares Non-recurring components Free Cash Flow of • - € 153.4M Acquisitions 27.9 Continuing Operations 102.0 • - € 5.7M Adjus
Slide 22: 1H 2024 Results – NFP Bridge
1H 2024 Results 1H 2024 Results – NFP Bridge + € 153.4M Acquisitions €M + € 4.6M Put Options 158.0 11.5 276.9 1.0 0.7 - 3.5 - 4.1 5.7 102.0 29.1 2.3 - 25.8 0.99x NFP/EBITDA1 2.78x (1) Calculated as NFP/LTM EBITDA Adjusted 22
Slide 23: 1H 2024 Results – NFP LTM Bridge
1H 2024 Results 1H 2024 Results – NFP LTM Bridge €M + € 203.9M Acquisitions 14.8 276.9 224.1 4.3 1.3 2.1 + € 20.2M PUT Options - 2.7 - 1.3 - 4.0 52.6 8.1 29.1 - 53.4 1.9 0.55x NFP/EBITDA1 2.78x (1) Calculated as NFP/LTM EBITDA Adjusted 23
Slide 24: M&A: The Track Record
1H 2024 Results M&A: The Track Record 2021 2022 2023 2024 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP DT 60% 100% 65% 40% 100% 40% 40.09% CS 60% 20% 30% Teknesi 100
Slide 25: Defence Tech Summary
Defence Tech Summary TINEXTA
Slide 26: Defence Tech Takeover Bid – Explained
Defence Tech Summary Defence Tech Takeover Bid – Explained STARLIFE April 2023 June 2024 October 2024 c.85% c.15%* 100% TINEXTA DEFENCE S.R.L 100% 40.09% In June 2024: Takeover Bid € 3.80 Exercise of the call option As per BoD resolution of triggers a takeover bid October 7th, 2024 (Public Offer) Pu
Slide 27: 2024-2026 – Pillars
2024-2026 — Pillars TINEXTA
Slide 28: The growth strategy
The growth strategy Sound pillars of the strategy represent a clear and cohesive plan Financial Policy Maintain a close focus on the cost structure, the predictability People + ESG of cash flows and the cost of debt, for a long-term Enhance corporate culture, sustainable growth strategy investing in
Slide 29: ESG Plan 2024-2025
2024-2026 – Pillars ESG Plan 2024-2025 Summary of the Group's ESG objectives PEOPLE CLIMATE CHANGE 1. Consolidation of the culture of 1. Increased use of energy from sustainability in the Group through renewable sources training activities on ESG topics 2. Promote sustainable mobility also by 2. Pro
Slide 30: ESG Plan 2024-2025 – KPIs and targets
2024-2026 – Pillars ESG Plan 2024-2025 KPIs and targets Education and training ESG training hours provided per capita Ensure decent working conditions Percentage of employees with permanent contracts Health & Safety Injury rate Share of suppliers who adhere to the Code of Ethics and the Group Sustai
Slide 31: Financial Policy
2024-2026 – Pillars Financial Policy Growth in quality revenues ➢ Continue to expect sound organic growth in line with prior years ➢ Financial structure is set to deal with planned M&A Improve operational efficiency by increasing EBITDA ➢ Operating leverage ➢ Cross-selling + synergies EPS & DPS grow
Slide 32: Financial Policy – Group's Financial Targets/Assumptions Post 1H 2024
2024-2026 – Pillars Financial Policy – Group’s Financial Targets/Assumptions Post 1H 2024 • Guidance has been updated, excluding ABF, and shows continuous progress in underlying business trends • ABF’s contribution for FY’24 has been moderately revised due to the political events in France • “Transi
Slide 33: Closing Remarks and Q&A
Closing Remarks and Q&A TINEXTA
Slide 34: Closing Remarks
Closing Remarks The path for growth is clear and supported by a sound strategy and increased cohesiveness of the Group Important M&As already finalized, new and strategic ones will continue to fuel the Group’s pipeline. Balance sheet remains very robust to support growth 2024-2026 Outlook reconfirms
Slide 35: Group structure
DIGITAL TRUST CYBERSECURITY BUSINESS INNOVATION 83.91% 100.00% 90.48% 100.00% 100.00% 100.00% 51.00% 100.00% 50.00% 85.00% 100.00% 60.00% 100.00% 100.00% 100.00% 100.00% 73.87% 65.00% 100.00% Warrant Funding 70.00% Project 60.00% 100.00% OTHER PARTECIPATIONS TINEXTA DEFENCE 100.00% Infocert 35.00% S
Slide 36: Thanks.
Thanks. Tinexta.com Investor Relations Contacts Tinexta Presentation Piazzale Flaminio, 1/B E-mail [email protected] Josef Mastragostino Download the presentation Roma, 00196, Italia Pec [email protected] Chief Investor Relations Officer Tel. +39.06.42012631 LinkedIn: Tinexta [email protected]