Tinexta Spa · MIL:TNXT
Tinexta Spa — Italian Investment Conference 2023
35 slides from Tinexta Spa's conference presentation, May 2023
Slide 1: Italian Investment Conference Company Presentation
Italian Investment Conference Company Presentation Milan – May 2023
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: Group's beginning
2009 2016 2020 2022 Group’s beginning Consolidation Cybersecurity M&A development > Acquisitions of Visura, > Acquisition of: Evalue, Enhancers, Innolva, ReValuta,Co.Mark, > Acquisition of: Plannet, Lan&Wan > Tecno Holding, an Warrant Hub Corvallis,Yoroi and Swascan > Disposal of the Credit Info Mgm
Slide 6: Reached all planned targets
TINEXTA’S BUSINESS LEGEND KEY NUMBERS Reached all planned REVENUES EBITDA Adj. NFP/EBITDA Adj. Net Profit Adj. FCF Results 2022 €357M; +18% vs 2021 €95M; +24% vs 2021 €78M €49M targets Guidance 2023 0.8x +11-15% vs PY +8-12% vs PY Cash positive Digital Trust Cybersecurity Business Innovation Refers
Slide 7: 2022 Consolidated Results
Company Overview 2022 Consolidated Results Tinexta Group's Revenues grew at a 21.2% CAGR from 2014 to 2022. EBITDA Adjusted grew at a 30.7% CAGR over the same period. €M Revenues EBITDA Adjusted NFP NFP/EBITDA Adj. 2.68x Considering Bregal’s investment of €70M NFP €194.4M 357.2 NFP/EBITDA Adj.: 1.97
Slide 8: 2022 Consolidated Results
Company Overview 2022 Consolidated Results €M Growth was registered both in Revenues (c. +18%) and EBITDA Adjusted (c. +24%) EBITDA Adjusted amounted to 94.8 million euros up from 76.5 million in PY 357.2 Margin Margin EBITDA reported was 86.3 million euros 301.5 25.4% 26.5% EBITDA Adjusted margin w
Slide 9: 1Q 2023 Results
1Q 2023 Results TINEXTA
Slide 10: 1Q 2023 key figures
REVENUES € 86. M EBITDA Adjusted € 15.0 M (+3% vs PY) EBITDA +10% vs PY € 13.5 M (+17% vs PY) NET PROFIT € 39.7 M NFP € 3.8 M Results at 31/03/2023 vs € 77.6M in FY2022 10
Slide 11: 1Q 2023 Solid start of the year
1Q 2023 Results 1Q 2023 Solid start of the year • Results1 showed continued growth: - Revenues at € 86.1M in 1Q’23 (+ 10.1% vs PY); - EBITDA Adjusted at € 15.0M in 1Q’23 (+ 3.1% vs PY) mainly driven by DT and CS, EBITDA2 at € 13.5M in 1Q’23 (+ 17.0% vs PY); - EBITDA Adjusted margin 17.4% (18.6% vs P
Slide 12: 1Q 2023 Results
1Q 2023 Results 1Q 2023 Results €M Growth was registered both in Revenues (c. +10%) and EBITDA Adjusted (c. +3%) EBITDA Adjusted amounted to 15.0 million euros up from 14.5 million in PY 86.1 Margin Margin EBITDA Adjusted margin was 17.4% (vs 18.6% in PY) 78.2 18.6% 17.4% EBITDA reported was 13.5 mi
Slide 13: 1Q 2023 Results – Income Statement
1Q 2023 Results 1Q 2023 Results – Income Statement LFL 2022 €M 1Q’23 % 1Q’22R % Δ Δ% Revenues 86.1 100.0 78.2 100.0 7.9 10.1 Total Operating Costs 71.1 82.6 63.6 81.4 7.5 11.7 Service & Other Costs 32.6 37.9 29.1 37.2 3.6 12.3 Personnel Costs 38.5 44.7 34.6 44.3 3.9 11.2 EBITDA Adjusted 15.0 17.4 14
Slide 14: 1Q 2023 Results – Balance Sheet
1Q 2023 Results 1Q 2023 Results – Balance Sheet €M 479.6 Net invested capital decreased by €8.0 million compared to 31 December 471.6 2022 as a result of the decrease in NWC and Provisions (€14.7 million), Net -1.7% the deconsolidation of ReValuta (€5.0 million), amortization of Other Invested Intan
Slide 15: 1Q 2023 Results – Business Units Overview
1Q 2023 Results 1Q 2023 Results – Business Units Overview €M Digital Trust Cybersecurity Group 42.4 20.7 38.0 18.0 10.4 11.6 1.2 2.1 1Q 2022R 1Q 2023 1Q 2022R 1Q 2023 1Q 2022R 1Q 2023 1Q 2022R 1Q 2023 REVENUES EBITDA Adj. REVENUES EBITDA Adj. Business Innovation 22.6 24.0 6.4 4.9 1Q 2022R 1Q 2023 1Q
Slide 16: 1Q 2023 Results – NFP & FCF
1Q 2023 Results 1Q 2023 Results – NFP & FCF €M NFP Adjusted FCF of continuing ops Main Changes in 1Q 2023: • - €2.0M Put Options 22.3 22.8 77.6 1.6 • - €1.6M Purchase of Treasury Shares 1.9 • + €42.1M Disposals Non recurring Costs & • - €1.1M Adjustments to leasing contracts Extraordinary Taxes Free
Slide 17: 1Q 2023 Results – NFP Bridge
1Q 2023 Results 1Q 2023 Results – NFP Bridge €M 77.6 2.0 + € 2.0M Put Options 0.9 0.0 1.1 -22.8 1.6 1.0 0.2 1.6 13.0 -0.3 -42.1 3.8 -30.0 0.82x NFP/EBITDA1 0.04x (1) Calculated as NFP/LTM EBITDA Adjusted 17
Slide 18: 1Q 2023 Results – NFP LTM Bridge
1Q 2023 Results 1Q 2023 Results – NFP LTM Bridge €M • - € 13.9M acquisitions 0.0 229.5 30.6 • +€ 13.9M Put Options 21.0 5.1 -49.9 9.7 0.9 9.2 13.0 -4.5 -4.3 -171.6 -84.9 3.8 2.26x NFP/EBITDA1 0.04x (1) Calculated as NFP/LTM EBITDA Adjusted 18
Slide 19: M&A: The Track Record
1Q 2023 Results M&A: The Track Record 2020 2021 2022 2023 JAN FEB MAR APR MAY JUN JUL AUG SET OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SET OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SET OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG DIGITAL 16.6% 60% TRUST 100% 65% MoU to support 60% 100% CYBERSECU
Slide 20: Business Plan 2023-2025
Business Plan 2023-2025 TINEXTA
Slide 21: Robust pillars of the strategy represent a clear and cohesive plan
Robust 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 people to support
Slide 22: Strengthen our leadership
Business Plan 2023-2025 Strengthen our leadership Digital Trust ➢ Expand the offer integrating towards a Digital Wallet ➢ Continue to develop cybersecurity features/functionalities as a distinguishing factor ➢ Identity certification of IoT (Internet of Things) ➢ Grow more internationally, specifical
Slide 23: Coordination & Integration
Business Plan 2023-2025 Coordination & Integration ➢ Increase and improve post M&A integration ➢ Simplify the corporate structure (see recent Warrant reorganization) ➢ Centralized CRM ➢ Foster cross/up-selling operational synergies within the organization ➢ Central coordination for the development o
Slide 24: Tinexta's approach to M&A
Business Plan 2023-2025 M&A + Internationalization Tinexta’s approach to M&A: ➢ Target check list/criteria ➢ Growing market segment ➢ Solid Business Fundamentals ➢ Strategic Fit & Finish ➢ Synergy analysis ➢ Disciplined Financial Policy ➢ Cash Flow generative ➢ Carrying out the deal ➢ Purchase - at
Slide 25: People + ESG: Business Units, Countries, one Group
Business Plan 2023-2025 People + ESG 393 new hires (40% women, 42% <30) Business Talks + Subject Matter 266 external workers Expert 97% full-time workers in Italy (94% To launch E-learning courses to focus abroad) employee population on ESG themes 39% are women 29,508 hours of companywide training 1
Slide 26: Significant leap forward in addressing all major ESG topics
Business Plan 2023-2025 People + ESG Significant leap forward in addressing all major ESG topics at a Group level Major steps taken: ➢ Established Internal & Permanent ESG committee (regularly reporting to the Risk and Sustainability Control Committee + Board of Directors) ➢ Approved 6 ESG policies
Slide 27: Progress report
Business Plan 2023-2025 People + ESG Progress report: Defined a plan to Approved the Approved the Adherence to the measure Sustainability Environment programmatic Performance Policy Policy document HUMAN RIGHTS PERFORMANCE VALUATION SUSTAINABILITY POLICY ENVIRONMENT POLICY Established an Carried out
Slide 28: Environmental and social actions
Business Plan 2023-2025 Various actions have been implemented to reduce the environmental impact of our activities on the planet. Our efforts focus on two action areas: Material and energy resources and Greenhouse gas emissions. ➢ Action tool: Environmental Policy We are aware that responsible manag
Slide 29: Financial Policy
Business Plan 2023-2025 Financial Policy Growth in quality revenues ➢ Continue to expect sound organic growth in line with prior years ➢ Financial structure even more ready to capture future growth thanks to significant cash on hand from CIM disposal Improve operational efficiency by increasing EBIT
Slide 30: Financial Policy – Business Units' Financial Targets – Organic
Business Plan 2023-2025 Financial Policy – Business Units’ Financial Targets – Organic Revenues EBITDA Adjusted Key Highlights Digital Trust +10% +11% Continues to generate healthy double-digit growth 2023 Cybersecurity +30% +43% Strong top line followed by even more solid EBITDA adjusted growth vs
Slide 31: Financial Policy – Group's Financial Targets/Assumptions – Organic
Business Plan 2023-2025 Financial Policy – Group’s Financial Targets/Assumptions – Organic Revenues EBITDA Adjusted NFP / EBITDA Adj. Dividends Inflation 2023 +11-15% +8-12% Cash positive 30% of Net Profit 6% vs PY 2025 Low to mid-double digit double digit Cash positive 35% of Net Profit Assumed at
Slide 32: Closing Remarks and Q&A
Closing Remarks and Q&A TINEXTA
Slide 33: Closing Remarks
Closing Remarks Growth path is secure with robust fundamentals, a clear business plan and strong management commitment M&A already in place, balance sheet ready and new targets identified to further support international expansion 2023-2025 Outlook confirms sustained revenue growth rate, solid profi
Slide 34: Group structure by business unit
Closing Remarks and Q&A Digital Trust Cyber Security Business Innovation 83.91% 100.00% 100.00% 60.00% 100.00% 80.00% 51.00% 60.00% 51.00% 70.00% 99.99% 88,00% 60.00% 100.00% 100.00% 100.00% 50.00% 70.00% 100.00% 100.00% OTHER HOLDINGS TINEXTA FUTURO DIGITALE S.C.A.R.L. TINEXTA DEFENCE S.R.L. 100.00
Slide 35: Tinexta.com Investor Relations Contacts
Tinexta.com Investor Relations Contacts Tinexta Presentation Piazza Sallustio,9 E-mail [email protected] Josef Mastragostino Download the presentation Roma, 00187, Italia Pec [email protected] Chief Investor Relations Officer Tel. +39.06.42012631 LinkedIn: Tinexta [email protected]