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CY4GATE S.p.A. Investor Presentation 2025
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Investor Presentation
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Cy4Gate FY 2024 Financial Results
March 12, 2025
AGENDA
➢ FY 2024 Financials
➢ Strategy & Outlook
EMANUELE GALTIERI MARCO LATINI
CEO & General Manager CFO & Investor Relations Manager
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
FY 2024 Key Data
▪ 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
Revenues¹ (€ mln) R&D (€ mln) EBITDA Adj. (€ mln)
▪ EBITDA Adjusted at €12.0 million – margins decreased by 1% but still affected by lower revenues in foreign Forensic Intelligence
FY 2024 Revenues Breakdown
By business line By geographical area
Despite the lack of foreign Forensic sales, the business mix is almost unchanged due to increased foreign Defence contracts
FY 2024 People Investment
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
FY 2024 Profit & Loss
| € mln | 1 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) |
FY 2024 Asset & Liabilities
| € 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) |
Our growth Strategy: Market
Cy4Gate Group portfolio – cyber intelligence & cyber security products - perfectly fits with the following 3 fast growing markets, both in Italy and abroad:
Defence
Security & Law Enforcement
Corporate
- 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.
- 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) 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
- Decision Intelligence & AI (Quipo)
▪Cyber security products and services bundle (RTA, Diateam, CTI, XTN, Services) for a 360° capabilities coverage
Our growth Strategy: Actions
2025-2026
- 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 opportunitiesin 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
- 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
Defence
Security & Law Enforcement
Corporate
Outlook 2025
Headquarter Via Coponia, 8 00131 Rome - Italy
CFO & Investor Relations Manager Marco Latini [email protected] Investor Relations Advisor CDR Communication