Slides
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TXT Group: Q1-2025 Results Call with Investors May 16 | 11 a.m. (CEST) Daniele MISANI, CEO Andrea FAVINI, IR
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Solid Organic Growth in Q1-25 Revenues EBITDA €92 Mn +12%* +€8 Mn €13.3 Mn +52% 14.5% of revenues +37% vs. Q1-2024 * Organic growth normalized by excluding from 2024 perimeter the one -off revenues related to resale activities for € 3 Mn. Report ed organic growth of 7%. Q1-2025 results show an increase in profitability boosted by M&A and a positive trend in the organic growth of the business
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Q1-24 Q1-25 Smart Solutions Digital Advisory Software Eng. Q1-24 Q1-25 Smart Solutions Digital Advisory Software Eng. _KPIs: Q1-2025 by Offering Revenues by Offering (€mn, % on total revenues) KPIs by Division (offering) reported in Q1-2025 show growth of the Top Line with strong increase of operating profitability (EBITDA Margin +1.5pp YoY) in all the divisions, boosted by M&A, synergies between TXT entities, and increasing operational efficiency. +52% 13.3 14.5% +55% +20% +74% 7.9 14% 2.1 14% 3.4 17% 5.2 12% EBITDA (€mn, % on revenues) 8.8 13.0% +37% 92 1.7 18% 1.9 15% 67 +28% +52% +59% 45 67% 58 63% 15 16% 19 21% 10; 15% 12; 18%
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_Value creation: Q1-25 R&D INVESTMENTS (fully expenses in the period) € 5Mn Q1-25, +51% vs. Q1-24 SMART SOLUTIONS REVENUES € 19Mn Q1-25, +55% vs. Q1-24 INTERNATIONAL REVENUES € 15Mn 16% of total revenues SUSTAINABLE DEBT (ADJUSTED) & TREASURY SHARES FOR FINANCING GROWTH € 89Mn (Net Debt Adjusted) - € 10Mn* in Treasury Shares * Value calculated with stock price of € 31.50 per share (Share Price Mar. 31st, 2025)
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5 We are expanding across different markets, with a growing footprint in Aerospace, Aviation, Defense, Industrial, Automotive, Telco, Government and Fintech, by leveraging more than 3000 experts, competence centers in AI, cybersecurity, XR, IoT. 21% Core Markets & Incidence (FY-2024 pro-forma) * 8% 17% 19% 14% 21% Discover Discover Public Sector Discover Discover Banking & Finance Discover Discover Telco, Media & Gaming Discover Discover Industrial & Automotive Discover Discover Aerospace & Defense MarTech * Updated revenues breakdown by industry reassessed based on the industry of the final customers and not on the industry of the entity being invoiced by the TXT Group, with exceptions for Martech offering.
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_Business Evolution & Subsequent Events
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TXT Capital Markets Day 27 MAY 2025 • TXT is pleased to invite institutional investors, financial analysts and media to its Capital Markets Day (CMD), an exclusive event where TXT’s Chairman Enrico Magni CEO Daniele Misani, together with parts of Group Management, will share the latest insights, strategic initiatives in the core industries of TXT, and vision for the future. • Together with a 3-year financial guidance, TXT CMD will provide a unique opportunity to connect with our Executive Leadership Team and gain valuable perspectives on our market outlook. • The event will take place in Milan, and a live streaming will be available for those registered. Both the event and the live streaming are reserved for institutional investors, financial analysts and media. • A Press Release related to the financial guidance will be published to the markets the same morning of the CMD, and the TXT CMD Presentation will be published on TXT the website after the event.
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Business Evolution by Division • Smart Solutions: positive performance in Q1, with revenues growing at +55% (+9% organic) driven by Aerospace & Defence, Martech, and Fintech, the latter consolidating a mix of mature products and investments in new technologies for, e.g., digital payments. Total R&D investments in Q1 grew by +51%. MarTech offering is boosting synergies with other divisions and industries while delivering as per budget, while the consolidation of IT Value from April 2025 will strengthen digital offering for PS and adjacent industries. • Digital Advisory: after very strong like-to-like performance in Q1 (+28%), slower organic growth expected for next quarters, following the strong performance of the division starting from the second quarter of 2024. Double- digit growth expected in Public Sector (including Health segment) and in the scope of the ESA (European Space Agency) contract. MarTech performance in Digital Advisory expected to slightly improve in next quarters. • Software Engineering: Q1 outperformed budget (+29% YoY, +11% organic Adj) thanks to continuous growth in Defence , and the consolidation of Webgenesys boosted Group’s positioning in the Italian Public Sector and overall division’s performance. Telco recorded a drop (-5%) due to cessation of 2024 one-off activities, but margin recoded a growth. Offering in Banking & Finance stable, while encouraging signs also coming in the Industrial sector.
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IT Values Investment: Closing announced • On April 1, 2025, TXT announced the closing of the investment in IT Value, a software boutique founded in Rome in 2022 specialised in the development and commercialization of digital innovation solutions to optimise processes of public administration and, more broadly, the enterprise market. • For 2025, annual revenues are expected at € 5 Mn, with strong EBITDA margin (circa 40%), with a top line growth expected in line with group average for next 3 years and an average EBITDA margin more than 35%. The results of IT Values will be consolidated from April 2025 in the Smart Solutions division of TXT. • The investment in IT Values (EV) was of € 15 Mn, of which: • € 12 Mn paid in cash • € 3Mn paid in TXT treasury shares (average price 30 days before closing of € 31.7) • Investment contract includes clauses for retention, claw-back, earnouts, and bonus in favour of selling Shareholder (current Managers), with deadlines ranging from the approval of IT Values' 2024 financial statements to the approval of the financial statements for the year ending December 31, 2028
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FINANCIALS
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_Profit & loss Q1-2025: EBITDA Details & Evolution 09 25 (16) (02) (01) (01) 13 EBITDA Q1-24 Δ Revenues Δ Direct Costs Δ R&D Δ Commercial Δ G&A EBITDA Q1-25 Increase Decrease Total 13.0% 14.5% +37.3% YoY +35.5% YoY +51.4% YoY +25.5% YoY +28.7% YoY € thousand Q1 2025 % Q1 2024 % Var % REVENUES 92,154 100 67,127 100 37.3 Direct costs 61,414 66.6 45,327 67.5 35.5 GROSS MARGIN 30,739 33.4 21,801 32.5 41.0 Research and Development costs 5,059 5.5 3,342 5.0 51.4 Commercial costs 6,069 6.6 4,836 7.2 25.5 General and Administrative costs 6,269 6.8 4,870 7.3 28.7 EBITDA 13,343 14.5 8,754 13.0 52.4
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13,3426 -1,5721 -,6373 -,3675 10,7657 -1,4854 -,4057 -,0234 -2,3007 6,5505 -1,0181 5,5324 _Profit & loss Q1-2025: EBITDA to Net Profit Bridge EBITDA Q1-25 IFRS 16 (Leasing) Deprec. (Excl. Leasing) Amortiz. & Write-offs EBIT Adj. Q1-25 Net Financial Charges FX Loss Result from minorities Income Taxes Net Profit Adj. Q1-25 Amortiz. from PPA Net Profit Q1-25 14.5% 11.7% 7.1% 6.0% (1.7%) (0.7%) (0.4%) (1.6%) (0.4%) (0.0%) (2.5%) (1.1%) € thousand Q1 2025 % Q1 2024 % Var % EBITDA 13,343 14.5 8,754 13.0 52.4 Amortization, Depreciation & Write-offs (Excl. PPA) 2,577 4.2 1,739 3.8 48.2 OPERATING PROFIT (EBIT) ADJ. 10,766 11.7 7,014 10.4 53.5 Net Financial income/(charges) (1,891) (2.1) (72) (0.1) 2529.4 Share of profit/(loss) of associates (23) (0.0) (317) (0.5) (92.6) EARNINGS BEFORE TAXES (EBT) ADJ. 8,851 9.6 6,625 9.9 33.6 Taxes (2,301) (2.5) (1,589) (2.4) 44.8 NET PROFIT ADJ. 6,551 7.1 5,036 7.5 30.1 Amortization - PPA 1,018 1.1 929 1.4 9.6 NET PROFIT 5,533 6.0 4,107 6.1 34.7
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.000 Euro 31.03.2025 31.12.2024 Var Cash (83,196) (58,250) (24,946) Trading securities at fair value (3,469) (17,283) 13,814 Other Short Term Financial Assets (399) (254) (144) Short term Financial Debts 63,768 65,658 (1,889) Short term Financial Debts (23,296 ) (10,130 ) (13,166) Non current Financial Debts - Lessors IFRS 16 9,740 10,476 (736) Other Long Term Financial Assets - - - Other Non current Financial Debts 120,348 108,517 11,831 Non current Financial Debts 130,088 118,993 11,095 Net Financial Debt 106,792 108,863 (2,071) Non-monetary debts for adjustment of the price (380) (380) - of the acquisitions to be paid in TXT shares Financial Investment - Banca Del Fucino (17,778) (17,778) - Adjusted Net Financial Debt 88,634 90,705 (2,071 ) _NET Financial Debt: Solid financial position
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_Balance sheet: details € thousand 31.03.2025 31.12.20024 Change Intangible assets 158,698 159,254 (556 ) Tangible assets 28,875 28,840 35 Other fixed assets 26,789 26,506 283 Fixed Assets 214,363 214,601 (238 ) Inventories 27,081 23,737 3,344 Trade receivables 114,763 114,054 709 Other short term assets 22,129 20,198 1,931 Trade payables (42,922 ) (43,342 ) 420 Tax payables (12,016 ) (10,879 ) (1,137 ) Other payables and short term liabilities (51,168 ) (48,481 ) (2,687 ) Net working capital 57,867 55,287 2,580 Severance and other non current liabilities (9,492 ) (9,200 ) (292 ) Capital employed - Continuing Operations 262,737 260,688 2,049 Shareholders' equity 153,396 149,764 3,632 Shareholders' equity - minority interest 2,550 2,061 489 Net financial debt 106,792 108,863 (2,071 ) Financing of capital employed 262,738 260,688 2,049
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_Dividends & Shareholding structure Market Data Share Price Dec. 31st, 2019 Share Price Mar. 31st, 2025 Mkt Mar. 31st, 2025 Dividend Yield ** 9.66€/share 31.50€/share 400m € 0.7% Shareholding Structure March 31st, 2025* * Latest Public Data Available as of 31 Mar. 2025 Dividends and Treasury Shares Repurchase (€m) 5,8 0 0,5 0 2,1 2,9 1 5,3 0,26 5,5 13,3 5,5 1,1 6,8 5,3 0,76 5,5 15,4 8,4 1,1 0 2 4 6 8 10 12 14 16 18 2019 2020 2021 2022 2023 2024 Q1-25 Repurchase Treasury Shares Payment dividends €milion Total Dividends 2019 nil 2020 0.04 € / share 2021 nil 2022 0.18 € / share 2023 0.25 € / share 2024 0.25 € / share Year Dividends ** Price per share of 35.10€ as of 31 Dec. 2024 Laserline SpA; 30% Managers; 24% Market; 40% L.V.O. Global Asset Management S.A. 3% Treasury Shares; 3%
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Q & A