Slides
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Cy4Gate FY 2024 Financial Results March 12, 2025
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AGENDA ➢ FY 2024 Financials ➢ Strategy & Outlook
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Speakers 3 Top Management CEO & General Manager CFO & Investor Relations Manager EMANUELE GALTIERI MARCO LATINI
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Highlights 4 The results of 2024 confirm the soundness of the CY4Gate Group. It continues on its path of consolidation driven by organic growth and M&A. 2024 New orders acquired equal to €84 million, +15% compared to 2023 and Backlog as at 31 December 2024 at €36 million, +40% compared to 2023 The Value of Production compared to 2023 grows by 10% thanks to the defence sector, the cyber intelligence sector to support law enforcement in Italy, and the excellent performance of the newly acquired XTN. This growth partially offset the lack of revenues related to foreign orders in the Forensic Intelligence sector, affected by the uncertainty of the international geopolitical scenario The Group continues to pursue its strategy to deseasonalize the business, also thanks to the creation of an important backlog with the closing of significant contracts in terms of amount and profitability, with multi-year duration. Guidance 2025 in the range of €84-87 million
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Financials
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FY 2024 Key Data 61. Including other operating revenues; comparative 2023 does not include XTN results Revenues¹ (€ mln) R&D (€ mln) EBITDA Adj. (€ mln) ▪ Revenues +10% (+3% by organic growth) compared to 2023, thanks to Defence and national Forensic Intelligence sectors, as well as the excellent performance of the newly acquired XTN Cognitive Security. ▪ R&D Costs +10% compared to 2023 aimed at creating and developing innovative features and products innovative and cutting-edge technological solutions Adj. EBITDA ▪ EBITDA Adjusted at €12.0 million – margins decreased by 1% but still affected by lower revenues in foreign Forensic Intelligence 68.3 75.1 FY 2023 FY 2024 +10.0% 7.2 7.9 FY 2023 FY 2024 +10.1% 9.3 11.6 2.7 FY 2023 0.3 FY 2024 12.1 12.0 -0.9%
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FY 2024 Revenues Breakdown 7 Business mix changes, mainly due to the consolidation of XTN and increase in cyber activities in the Defence sector. Forensic reduction mainly abroad Despite the lack of foreign Forensic sales, the business mix is almost unchanged due to increased foreign Defence contracts By business line By geographical area 40% 45% 15% 40% 30% 30% ~63% ~65% ~37% ~35% FY 2024FY 2023 Italy Export FY 2023 FY 2024 Decision Intelligence Forensic Intelligence Cyber Security Note: Calculated on operating revenues
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FY 2024 People Investment 8 Total personnel increased in 2024 by a total of 48 resources: ▪ Increase of 25 resources related to the XTN acquisition ▪ Increase of 132 resources in engineering and commercial compared to 109 exits Engineering Positive Items Negative Items Total 504 529 552113 Cy4Gate Group FY 2023 25 XTN Acquisition Cy4Gate Group post deal 19 Commercial (84) Turnover Engineering (25) Turnover Commercial Cy4Gate Group FY 2024
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FY 2024 NFP Bridge 9 Positive Items Negative Items Total € mln (13.6) (30.9) (5.9) (14.8) (5.6) NFP 2023 11.6 EBITDA 1.6 Change NWC M&A Capex (1.6) Treasury Shares (2.2) Interests Taxes 1.6 Others (2.0) Payout Minorities NFP FY 2024 NFP FY 2024 w/o put option 26.7 4.2 Put option liability NFP FY 2023 w/o put option 7.9 5.7 Put option liability
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FY 2024 Profit & Loss 10 € mln FY 2024 FY 2023 Operating Revenues 72.4 66.5 Other Operating Revenues 2.7 1.8 Total Revenues 75.1 68.3 Services, Procurement & other operating costs 30.3 27.1 Personnel Costs 32.8 29.1 Costs 63.1 56.2 EBITDA Adjusted 12.0 12.1 D&A [including leasing costs] (16.8) (12.3) EBIT Adjusted (4.8) (0.2) D&A [related to PPA] (4.7) (4.5) EBIT (9.6) (4.7) Financial Income (Expenses) (2.4) (2.0) One off costs (0.3) (2.7) Taxes 6.6 0.6 Profit (Loss) (5.6) (8.9) 1 1. Including the consolidation of XTN from 1st January 2024 1
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FY 2024 Asset & Liabilities 11 € mln FY 2024 FY 2023 Fixed assets 98.0 87.9 Inventory 1.0 0.8 Contract assets (liabilities) 6.0 3.1 Trade receivables 49.9 53.7 Trade payables (11.9) (14.4) Trade Working Capital 45.0 43.1 Other assets (liabilities) (9.7) (6.3) Net Working Capital 35.2 36.8 Net Capital Invested 133.2 124.8 Cash and cash equivalents 14.5 17.6 Financial assets 1.5 1.4 Financial Liabilities (41.1) (28.8) Lease liabilities (5.9) (3.8) Net Financial Position (30.9) (13.6) Put option liability (4.2) (5.7) Net Financial Position Adjusted (26.7) (7.9) Shareholders' Equity (102.3) (111.1) Sources (133.2) (124.8)
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Strategy & Outlook
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Our growth Strategy: Market Corporate Defence Security & Law Enforcement Cy4Gate Group portfolio – cyber intelligence & cyber security products - perfectly fits with the following 3 fast growing markets, both in Italy and abroad: ▪ Double digit growth for digital transformation market (around 20% CAGR to 2027); ▪ Cyber security market is underpenetrated in terms of for SMEs, targets of massive attacks. Products involved ▪ Decision Intelligence & AI (Quipo) ▪Cyber security products and services bundle (RTA, Diateam, CTI, XTN, Services) for a 360° capabilities coverage ▪ Decision Intelligence & AI (Quipo) for C2 platforms ▪Cyber security products and services bundle (RTA, Diateam, CTI, customization services) ▪ Decision Intelligence & AI (Quipo & Mito) for data gathering and correlation ▪Forensic Intelligence suite ▪ Increasing internal and external security threats and undergoing military network-centric modernization; ▪ Market CAGR 8% - predicted to grow to 1350B$ in 2030 from 750B$ (2022). ▪ Digital crime via digital/electronic devices is LEAs biggest challenge; AI is a key enabler; ▪ Market is globally growing at 9% CAGR up to 2028; ▪ Need for cases management, track evidences, data gathering and correlation, creation of reports. 13
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Our growth Strategy: Actions Corporate Defence Security & Law Enforcement 14 ▪ Increase Italian Market position leaveraging an already created brand awarness, dedicated sales force and channels to expand pipline and its conversion rate ▪ Expand business to new geographies in E.U. mainly in Western Europe, partnering with foreign channels and fostering development of an international sales team ▪ Continue scouting for M&A opportunities in cybersecurity sector ▪ Consolidate our relationships with ELT by working to acquire orders in a thriving business ▪ Take part to international consortia or JVs for pluriannual defence programs ▪ Capture EU funds (NATO, EDA, ESA) for R&D in the cyber also through industrial partnership ▪ Continue scouting for M&A opportunities in cybersecurity sector ▪ Further strengthen the company in the domestic market by focusing on proprietary products for telematics ▪ Progressively gain relevant shares and presence in the more stable European region ▪ Ensure stable growth in the Spanish market leveraging on our pluriannual presence in the Country , to maintain and develop Cy4 second domestic market for revenues after Italy. ▪ Continue scouting for M&A opportunities in cybersecurity sector 2025-2026
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Outlook 2025 15 Euro ~ 67 M BACKLOG/RECURRING Euro ~ 19 M PIPELINE CONVERSION Euro 84 - 87 M TOTAL REVENUES
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16 Headquarter Via Coponia, 8 00131 Rome - Italy Follow us: CFO & Investor Relations Manager Marco Latini investors@cy4gate.com Investor Relations Advisor CDR Communication silvia.dirosa@cdr-communication.it luca.gentili@cdr-communication.it