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Tinexta Earnings Release 2021
4493_ip_2022-03-17_bcf4f59a-0e93-4b6e-8a47-67b6f764eb44.pdf
Earnings Release
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FY 2021 Results Ended December 31, 2021
17 March 2022
FY 2021 Highlights and Updates Josef Mastragostino, Chief IRO
FY 2021 Financial Results Oddone Pozzi, CFO
Business Units Deep Dive Oddone Pozzi, CFO
Q&A
1 FY 2021 Another year of growth
• FY 2021 registered strong progress:
- Revenues1 at € 375.4M (+39.5% vs PY, +7.7% on a 2020 base);
- EBITDA Adjusted1 at € 98.7M (+21.5% vs PY, +2.7% on a 2020 base), EBITDA2 at € 93.0M (+19.4% vs PY, +1.5% on a 2020 base);
- EBITDA Adjusted1 margin 26.3% (28.8% on a 2020 base); EBITDA2 margin 24.8% (27.3% on a 2020 base);
- EBIT at € 56.9M (+8.1% vs PY, +2.7% on a 2020 base) EBIT Margin: 15.2% (18.7% on a 2020 base);
- Net Profit at € 44.9M, including PPA € 39.6M (+4.9% vs PY, -0.4% on a 2020 base);
- NFP reflects entirely the recent acquisitions and stands at € 263.3M (€ 193.3M considering BREGAL's investment completed on February 3rd 2022) & Leverage3 of 2.67x (1.96x proforma for Bregal);
- Free Cash Flow € 56.4M in FY'21.
- In 2021 most of the business lines4 continued to grow:
- Digital Trust, grew 13.3% (+11.0% on a 2020 base) in Revenues with EBITDA increasing 17.2% (+13.5% on a 2020 base). EBITDA margin 27.7%
- Cyber Security, revenues reached € 72.8M and EBITDA margin 13.9%
- Credit Information and Management, increased 2.2% in Revenues with a -3.7% in EBITDA. EBITDA margin 28.9%
- Innovation and Marketing Services, posted a +23.9% in Revenues (+11.3% on a 2020 base) with EBITDA rising 14.0% (+3.7% on a 2020 base). EBITDA margin 43.3%
• Recent Events:
- Tinexta Capital Markets Day – Presented the 2022-2024 Business Plan Presentation on February 28th 2022.
- ➢ Provided 2022 guidance and 2024 business outlook
Memo: In order to allow as complete an analysis as possible, FY 2021 results are compared both at constant 2020 perimeter, as well as on a 2021 perimeter (which includes all of TINEXTA's companies with the addition of the newly acquired ones).
(1) Include CertEurope as of November 2021 and Forvalue as well as other minor acquisitions. Revenues and EBITDA excluding CertEurope and Forvalue are €369.0M and €96.8M, respectively. 2020 figures are restated following the completion of the Business
Combination relating to Swascan and Euroquality. EBITDA Adjusted (Excludes Stock Options & Other non-recurring items)
(2) EBITDA Reported
- (3) Calculated as NFP/EBITDA Adjusted
- (4) BU data is provided as Adjusted in terms of EBITDA
1 FY 2021 Consolidated Results
2021 Results show revenues of 375.4 million euros, EBITDA Adjusted of 98.7 million euros and Net Profit of 44.9 million euros. EBITDA Reported is 93.0 million euros
€ M
* Include CertEurope as of November 2021 and Forvalue as well as other minor acquisitions. Revenues and EBITDA excluding CertEurope and Forvalue are €369.0M and €96.8M, respectively.
- 2021 Results show a growth both in Revenues (+39.5%) and in EBITDA Adjusted (+21.5%). These results are mainly driven by the growth in most of the business lines;
- EBITDA Adjusted amounted to 98.7 million euros, up from 81.2 in FY 2020; EBITDA Adjusted* vs 2021 guidance was €96.8M;
- EBITDA is equal to 93.0 million euros;
- The EBITDA Adjusted Margin is equal to 26.3%;
- Net Profit margin is at 12.0% from 14.0% in PY;
- Free cash Flow at over €55M.
1 Q4'21 Consolidated Results
Q4'21 Results show revenues of 113.8 million euros, EBITDA Adjusted of 35.4 million euros and Net Profit of 15.5 million euros. EBITDA Reported is 33.4 million euros
- Q4'21 Results show a growth both in Revenues (+41.9%) and in EBITDA Adjusted (+45.7%). These results are mainly driven by the growth in most of the business lines;
- EBITDA Adjusted amounted to 35.4 million euros, up from 24.3 in FY 2020;
- EBITDA is equal to 33.4 million euros;
- The EBITDA Adjusted Margin is equal to 31.1% vs 30.3% PY;
- Net Profit margin is at 13.6% from 14.3% in PY.
* Include CertEurope as of November 2021 and Forvalue as well as other minor acquisitions.
- Expected back-ended year EBITDA growth and overdelivered on all accounts
- 2021 EBITDA Adjusted was €98.7M
- Quarter on quarter performance is not representative of Group's yearly performance
Q3'21
Q4'21
€98.7M
35.4
+33% vs 1H
Margin Q4'21 31.1%
Margin Q3'21 25.1%
21.0
2H'21 Act.
FY 2021 Highlights and Updates Josef Mastragostino, Chief IRO
FY 2021 Financial Results Oddone Pozzi, CFO
Business Units Deep Dive Oddone Pozzi, CFO
Q&A
2 FY 2021 Financial Results – Income Statement
| Perimeter 2021 | Perimeter 2020 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| FY 2021 | % | FY 2020 | % | FY 2021 on 2020 |
% | Δ | Δ% | Δ | Δ% | |
| Revenues | 375.4 | 100.0% | 269.0 | 100.0% | 289.8 | 100.0% | 106.3 | 39.5% | 20.8 | 7.7% |
| Total Operating Costs | 276.6 | 73.7% | 187.8 | 69.8% | 206.4 | 71.2% | 88.8 | 47.3% | 18.6 | 9.9% |
| Service & Other Costs | 138.9 | 37.0% | 103.9 | 38.6% | 114.8 | 39.6% | 35.0 | 33.7% | 10.8 | 10.4% |
| Personnel Costs |
137.7 | 36.7% | 83.9 | 31.2% | 91.6 | 31.6% | 53.8 | 64.2% | 7.8 | 9.3% |
| EBITDA Adjusted | 98.7 | 26.3% | 81.2 | 30.2% | 83.4 | 28.8% | 17.5 | 21.5% | 2.2 | 2.7% |
| Stock Option & Other non-recurring costs | 5.7 | 1.5% | 3.3 | 1.2% | 4.3 | 1.5% | 2.4 | 72.2% | 1.0 | 30.3% |
| EBITDA | 93.0 | 24.8% | 77.9 | 29.0% | 79.1 | 27.3% | 15.1 | 19.4% | 1.2 | 1.5% |
| Depreciation, amortisation, provisions and impairment |
36.1 | 9.6% | 25.2 | 9.4% | 25.0 | 8.6% | 10.9 | 43.1% | -0.3 | -1.0% |
| Operating Profit | 56.9 | 15.2% | 52.7 | 19.6% | 54.1 | 18.7% | 4.3 | 8.1% | 1.4 | 2.7% |
| Financial Income | 1.1 | 0.3% | 3.6 | 1.3% | 0.5 | 0.2% | -2.4 | -68.6% | -3.0 | -85.5% |
| Financial Charges | 4.4 | 1.2% | 3.0 | 1.1% | 3.6 | 1.2% | 1.5 | 49.2% | 0.7 | 22.0% |
| Net financial Charges |
3.3 | 0.9% | -0.6 | -0.2% | 3.1 | 1.1% | 3.9 | -649.8% | 3.7 | -615.5% |
| Profit of equity-accounted investments |
-0.2 | -0.1% | -1.0 | -0.4% | -0.2 | -0.1% | 0.8 | -79.4% | 0.8 | -81.1% |
| Profit Before Taxes |
53.4 | 14.2% | 52.3 | 19.4% | 50.9 | 17.6% | 1.1 | 2.1% | -1.5 | -2.8% |
| Income Taxes |
13.8 | 3.7% | 14.5 | 5.4% | 13.2 | 4.6% | -0.7 | -5.1% | -1.3 | -9.0% |
| Net Profit | 39.6 | 10.6% | 37.8 | 14.0% | 37.6 | 13.0% | 1.9 | 4.9% | -0.2 | -0.4% |
2 4Q'21 Financial Results – Income Statement
| Perimeter 2021 | Perimeter 2020 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 4Q 2021 | % | 4Q 2020 | % | 4Q 2021 on 2020 |
% | Δ | Δ% | Δ | Δ% | |
| Revenues | 113.8 | 100.0% | 80.2 | 100.0% | 86.5 | 100.0% | 33.6 | 41.9% | 6.3 | 7.9% |
| Total Operating Costs | 78.4 | 68.9% | 55.9 | 69.7% | 58.2 | 67.3% | 22.5 | 40.3% | 2.3 | 4.1% |
| Service & Other Costs | 41.8 | 36.7% | 32.5 | 40.6% | 33.9 | 39.2% | 9.2 | 28.4% | 1.4 | 4.2% |
| Personnel Costs |
36.7 | 32.2% | 23.4 | 29.2% | 24.3 | 28.1% | 13.3 | 56.8% | 0.9 | 4.0% |
| EBITDA Adjusted | 35.4 | 31.1% | 24.3 | 30.3% | 28.3 | 32.7% | 11.1 | 45.7% | 4.0 | 16.6% |
| Stock Option Costs & other non-recurring costs | 2.0 | 1.7% | 1.9 | 2.4% | 1.5 | 1.7% | 0.0 | 1.9% | -0.4 | -23.0% |
| EBITDA | 33.4 | 29.4% | 22.3 | 27.9% | 26.8 | 31.0% | 11.1 | 49.5% | 4.5 | 20.1% |
| Depreciation, amortisation, provisions and impairment |
9.3 | 8.2% | 6.7 | 8.4% | 6.2 | 7.1% | 2.6 | 38.3% | -0.6 | -8.3% |
| Operating Profit | 24.1 | 21.2% | 15.6 | 19.4% | 20.6 | 23.9% | 8.5 | 54.4% | 5.0 | 32.3% |
| Financial Income | 1.0 | 0.9% | 2.2 | 2.8% | 0.1 | 0.1% | -1.2 | -55.3% | -2.2 | -97.4% |
| Financial Charges | 1.4 | 1.2% | 0.9 | 1.1% | 1.0 | 1.1% | 0.6 | 64.9% | 0.1 | 14.6% |
| Net financial Charges |
0.4 | 0.4% | -1.4 | -1.7% | 0.9 | 1.1% | 1.8 | -131.0% | 2.3 | -168.0% |
| Profit of equity-accounted investments |
0.0 | 0.0% | -1.1 | -1.3% | 0.0 | 0.0% | 1.1 | -103.8% | 1.1 | -100.0% |
| Profit Before Taxes |
23.7 | 20.8% | 15.9 | 19.8% | 19.7 | 22.8% | 7.8 | 49.0% | 3.8 | 24.0% |
| Income Taxes | 8.2 | 7.2% | 4.5 | 5.6% | 7.5 | 8.7% | 3.7 | 83.7% | 3.1 | 69.0% |
| Net Profit | 15.5 | 13.6% | 11.4 | 14.3% | 12.2 | 14.1% | 4.1 | 35.6% | 0.7 | 6.5% |
2 FY 2021 Financial Results – Balance Sheet
FY 2021 Financial Results – FCF & NFP
193.3
92.0
2
€ M
investment of
on February 3rd
2022
2020 2021
FREE CASH FLOW
Decrease is mainly due to higher taxes paid offset by continued improvement in working capital (+ €3.1M)
LTM FREE CASH FLOW
70.0 Bregal Bregal's €70M completed 263.3
NFP
-
- € 193.3M acquisitions
- Corvallis: - € 56M
- Yoroi: - € 38.6M
- Queryo: - € 18.1M
- Forvalue: + € 1.3M
- Other: - € 5.8M
- CertEurope: - € 76.2M
-
- € 12.0M Dividends
-
- € 5.0M Put/Earn out Adjustment
-
- € 9.3M Purchase of treasury shares to service the stock option plan
2 FY 2021 Financial Results – NFP Bridge
€ M
1.1x NFP/EBITDA 2.67x 1
13
FY 2021 Financial Results Oddone Pozzi, CFO
Business Units Deep Dive Oddone Pozzi, CFO
3 Business Units Deep Dive – Overview FY 2021
Perimeter 2020 Δ Perimeter
3 Business Units Deep Dive – Digital Trust
€ M
- Revenues amounted to 131.3 million euros (128.6 million euros on a 2020 base) increasing 13.3% vs 2020. (+11.0% on a 2020 base)
- 2021 registered solid growth through the continued demand both for digital and dematerialization services. LegalMail, LegalCert, SPID and Top & GoSign, among the most requested.
- Off the Shelf (OTS) revenues show signs of strength given the continuous demand; Revenues related to Enterprise Solutions grew on new commercial initiatives and state of the art cyber security functionalities. Joint projects with the CS BU such as Face matching and Self ID all show strong market traction. Constant demand is also registered for Digital onboarding services.
- EBITDA Adjusted is equal to 36.4 million euros. (35.2 million euros on a 2020 base) The increase is equal to 17.2% (13.5% on a 2020 base). EBITDA Adjusted margin at 27.7%.
3 Business Units Deep Dive – Cyber Security
€ M
- Revenues amounted to 72.8 million euros, while EBITDA was 10.1 million euros. The EBITDA Adjusted margin is equal to 13.9%.
- Cyber Security Business Unit achieved planned targets with strong EBITDA Adjusted margin generation.
- From a strategic standpoint, the BU is developing initiatives related to both planning and consulting activities, the provision of dedicated services as well as in the R&D area. Areas of greatest focus/competencies:
- Finance: products geared towards Banks, Insurance, and CRM
- Industry: significant development of innovative activities on IoT processes
- The BU is very active in the Implementation Services linked to the security architecture for its customers, as well as the development of its own cyber products with Data Loss Prevention, SASE solutions; identity & access management; data security and application security.
3 Business Units Deep Dive – Credit Information & Management
- Revenues amounted to 79.0 million euros with an increase of 2.2% vs PY. (-2.4% on a 2020 base)
- Notwithstanding a hard comp vs prior year where the requests relating to the access to the Central Guarantee Fund were particularly strong margins remained solid, rebounding vs 2019. Demand for Real estate services by main national banking groups grew compared to PY.
- EBITDA Adjusted is equal to 22.8 million euros, the margin at 28.9%. EBITDA Adjusted between 2019 and 2021 grew 26%.
3 Business Units Deep Dive – Innovation & Marketing Services
€ M
- Revenues amounted to 94.8 million euros (85.1 million euros on a 2020 base), increasing 23.9% vs 2020. (11.3% on a 2020 base)
- The BU's companies have developed innovative services and products by increasing the turnover generated through the increase in managed requests and the acquisition of new customers. Strong demand came also from services such as: European Funding, Digital innovation, Data protection, IP Management, and the newly established Training division. Temporary Export and consultancy services geared towards innovation rebounded while Digital Marketing services were entirely consolidated. 4Q'21 vs PY was superb, revenues grew more than 30% and EBITDA posted a +29% vs PY, showing the outstanding operating leverage of this Business Unit.
- EBITDA Adjusted is equal to 41.1 million euros (37.4 million euros on a 2020 base) while the margin is 43.3%. The increase compared to PY is equal to 14.0%. (3.7% on a 2020 base)
FY 2021 Financial Results Oddone Pozzi, CFO
Business Units Deep Dive Oddone Pozzi, CFO
Q&A
| Guidance | 2022 (Organic) | 2022 with acquisitions | 2024 with acquisitions | ||
|---|---|---|---|---|---|
| Revenues | ~ 10-12% growth vs PY | ~ 18-20% growth vs PY | Low double digits CAGR 2022-2024 |
||
| EBITDA Adjusted | ~ 8-10% growth vs PY | ~ 20-22% growth vs PY | Mid double digits CAGR 2022-2024 |
||
| NFP/EBITDA Adjusted | N.M. | ~ 2.0x |
~0.7/0.8x |
➢ PNRR's potential positive benefits not included in guidance nor any additional M&A
4 Bridging the NFP to Guidance
▪ >€220M of FCF between 2022-2024
▪ Bregal Milestone investment of €100M
FY 2021 Financial Results Oddone Pozzi, CFO
Business Units Deep Dive Oddone Pozzi, CFO
Q&A
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