Tinexta — Investor Presentation 2022

May 12, 2022

2022 First Quarter Results Ended March 31, 2022

12 May 2022

Business Units Deep Dive Oddone Pozzi, CFO

Q&A

1Q'22 Financial Results Oddone Pozzi, CFO

Closing remarks Josef Mastragostino, Chief IRO

1Q'22 setting the base for delivery

• Good start of the year leads to enhanced financial performance:
  • Revenues at € 96.0M in 1Q'22 (+16.2% vs PY, +7.0% on a 2021 base);
  • EBITDA Adjusted at € 19.2M in 1Q'22 (+13.0% vs PY, -1.6% on a 2021 base) mainly driven by DT and IMS; EBITDA¹at € 16.2M (-0.9% vs PY, -16.0% on a 2021 base);
  • EBITDA Adjusted Margin 20.0% (20.6% in PY, 18.9% on a 2021 base); EBITDA¹ Margin 16.9% (15.5% on a 2021 base);
  • EBIT at € 7.6M (-1.3% vs PY, -32.0% on a 2021 base) EBIT Margin: 7.9% (5.9% on a 2021 base);
  • Net Profit at € 4.3M (-21.0% vs PY, -52.4% on a 2021 base); Adjusted Net Profit at € 8.6M (+17.1% vs PY);
  • NFP of € 228.4M includes both the Evalue and Enhancers acquisitions & Leverage² of 2.26x;
  • Free Cash Flow: € 24.6M in 1Q'22; growing on a LTM base to € 56.2M.
• All of our business lines³ continue to grow with most of them contributing to margin growth vs PY:
  • Digital Trust, grows 21.8% in revenues with EBITDA growing more than 40%. Margin reaches c.27%
  • Cyber Security, grows by 7.1% in revenues, EBITDA at € 1.2M. EBITDA margin at 6.5%
  • Credit Information and Management, increases of 5.6%, EBITDA at € 4.7M. c.23% EBITDA margin
  • Innovation and Marketing Services, posted a +30.0% in Revenues with EBITDA rising above 27%. c.30% the EBITDA margin
• Recent Events:

1

• January 2022, acquired 70% of Evalue entering the Spanish market for Innovation & Marketing Services. Total investment (for 100%) € 33.3M
• March 2022, acquired 100% of Enhancers via Warrant Hub to integrate and complement the offer. Total investment € 24.4M
• AGM approved € 0.30 per share dividend

• Human Resources: as of March 31, 2022 the Group employed 2,501 employees

Memo: In order to allow as complete an analysis as possible, 1Q'22 results are compared both at constant 2021 perimeter, as well as on a 2022 perimeter (which includes all of TINEXTA's companies with the addition of the newly acquired ones). 1Q'21 figures have been restated and for further details please refer to the 1Q'22 financial statements.

• (1) EBITDA reported
• (2) Calculated as NFP/LTM EBITDA Adjusted
• (3) BU data is provided as Adjusted

The First Quarter 2022 shows revenues of 96.0 million euros, EBITDA adjusted of 19.2 million euros and Net Profit of 4.3 million euros. EBITDA Reported is 16.2 million euros.

Perimeter 2021 Δ Perimeter

• 1Q'22 results shows a growth both in Revenues (c. +16%) and in EBITDA Adjusted (+13%). These results are mainly driven by the growth in most of the business lines;
• EBITDA Adjusted amounted to 19.2 million euros, up from 17.0 million in PY; EBITDA Adjusted on a 2021 base was 16.7 million euros;
• EBITDA Reported is equal to 16.2 million euros;
• EBITDA Adjusted Margin is equal to 20.0% (20.6% in PY);
• Net Profit margin is at 4.5% from 6.6% in PY, Adjusted Net Profit is 8.6 million euros, +17%;
• Free Cash Flow at 24.6 million euros.

² 1Q'22 Financial Results – Income Statement

							Perimeter 2022		Perimeter 2021
	1Q 2022	%	1Q 2021	%	1Q 2022 on 2021	%	Δ	Δ%	Δ	Δ%
Revenues	96.0	100.0%	82.7	100.0%	88.5	100.0%	13.4	16.2%	5.8	7.0%
Total Operating Costs	76.8	80.0%	65.7	79.4%	71.8	81.1%	11.2	17.0%	6.1	9.3%
Service & Other Costs	36.7	38.2%	31.8	38.5%	33.3	37.7%	4.8	15.2%	1.5	4.8%
Personnel Costs	40.2	41.8%	33.9	41.0%	38.4	43.4%	6.3	18.7%	4.5	13.4%
EBITDA Adjusted	19.2	20.0%	17.0	20.6%	16.7	18.9%	2.2	13.0%	-0.3	-1.6%
Stock Option Costs & other non-recurring costs	3.0	3.1%	0.6	0.8%	3.0	3.4%	2.3	364.9%	2.3	364.9%
EBITDA	16.2	16.9%	16.4	19.8%	13.7	15.5%	-0.1	-0.9%	-2.6	-16.0%
Depreciation, amortisation, provisions and impairment	8.6	9.0%	8.7	10.5%	8.5	9.6%	0.0	-0.5%	-0.2	-1.9%
Operating Profit	7.6	7.9%	7.7	9.3%	5.2	5.9%	-0.1	-1.3%	-2.5	-32.0%
Financial Income	0.0	0.0%	0.1	0.1%	0.0	0.0%	0.0	-73.2%	0.0	-73.2%
Financial Charges	1.0	1.0%	0.9	1.1%	0.9	1.0%	0.1	5.8%	0.0	0.0%
Net financial Charges	1.0	1.0%	0.9	1.0%	0.9	1.0%	0.1	10.8%	0.0	4.7%
Profit of equity-accounted investments	-0.1	-0.1%	0.0	0.0%	-0.1	-0.1%	-0.1	NM	-0.1	NM
Profit Before Taxes	6.5	6.8%	6.8	8.3%	4.2	4.8%	-0.3	-4.1%	-2.6	-37.9%
Income Taxes*	2.2	2.3%	1.3	1.6%	1.6	1.8%	0.9	65.5%	0.3	21.8%
Net Profit	4.3	4.5%	5.5	6.6%	2.6	3.0%	-1.2	-21.0%	-2.9	-52.4%

² 1Q'22 Financial Results – Income Statement

² 1Q'22 Financial Results – Balance Sheet

² 1Q'22 Financial Results – NFP & FCF

LTM FREE CASH FLOW

² 1Q'22 Financial Results – NFP Bridge

² 1Q'22 Financial Results – NFP Bridge on a LTM base

1Q'22 Financial Results Oddone Pozzi, CFO

Business Units Deep Dive Oddone Pozzi, CFO

Closing remarks Josef Mastragostino, Chief IRO

³ Business Units Deep Dive – Overview 1Q'22

INNOVATION & MKT SERVICES

Perimeter 2021 Δ Perimeter

³ Business Units Deep Dive – Digital Trust

• Revenues amounted to 38.0 million euros (33.6 million euros on a 2021 base) increasing 21.8% vs 1Q 2021. (+7.7% on a 2021 base)
• 1Q 2022 registered very interesting growth in terms of LegalMail sales (which is now enriched with cyber security features) and above than expected performance from the sale of SPID; ature, Onboarding and Identity services (GoSign and TOP) were all on track increasing the recurring revenue portion of the BU. Archiving and Invoicing products (mostly historical products) show signs of moderate and constant growth.
• CertEurope started the year very well with strong revenues coming in from the sale of certificates and SignAPI (Application Programming Interface).
• EBITDA Adjusted is equal to 10.4 million euros (8.6 million euros on a 2021 base). The increase is equal to 44.5% (19.4% on a 2021 base) showing the strong operational leverage of this business. EBITDA Adjusted margin at 27.3%, up from 23.0% of 2021.

³ Business Units Deep Dive – Cyber Security

• Revenues amounted to 18.0 million euros increasing 7.1% vs 1Q 2021.
• Business kicked-off the quarter well with good results from the system integration services side of the business as well as increased demand on the Legalmail Security Premium, the cyber-safe Electronic certified email jointly developed by InfoCert and Yoroi. In addition, the BU also carried out important product launches (Cyber Exposure Index, Kanwa, Cybersec.club) and services (SOC H24 and Defense Center).
• EBITDA Adjusted was 1.2 million euros in line with expectations. The decline was attributable to the increased costs driven by the set-up of all activities for the newly established BU as well as increased commercial initiatives needed to strongly launch the new business proposals. The marginality is expected to reap the benefits of the investments (and therefore increase) in the quarters to come. The EBITDA Adjusted margin is equal to 6.5%.

³ Business Units Deep Dive – Credit Information & Management

• Revenues amounted to 19.9 million euros with an increase of 5.6% vs PY. (-2.9% on a 2021 base)
• The Business Unit was overall in line with our expectations with milder demand for services relating to the access of the Central Guarantee Fund vs PY (where demand was higher given the pandemic), appraisal real estate services – instead – were mostly in line with PY notwithstanding increased mortgage rates, lower renegotiations, and an overall reduced level of mortgages. The ForValue activities started according to expectations given the newly establish business division and are expected to ramp-up in the medium/long term thanks to the widespread network servicing most regions of Italy.
• EBITDA Adjusted is equal to 4.7 million euros, the margin came in at 23.4%. The decline in EBITDA is attributable to the larger volume of sales relating to the Central guarantee fund registered during PY.

³ Business Units Deep Dive – Innovation & Marketing Services

• Revenues amounted to 21.0 million euros (19.3 million euros on a 2021 base), increasing 30.0% vs 1Q 2021. (+19.4% on a 2021 base)
• The start of the year was very strong both for Warrant that grew on subsidized finance, Patent Box, European Funding and Training and Co.Mark, which registered strong demand on Temporary Export Services notwithstanding the current international crisis.
• Evalue started the year very well with sound operations in Spain and a good mix of sales mostly comprising of R&D credit.
• EBITDA Adjusted is equal to 6.3 million euros (5.7 million euros on a 2021 base) while the margin is 30.2%. The increase compared to 1Q 2021 is equal to 27.1%. (14.2% on a 2021 base)

1Q'22 Financial Results Oddone Pozzi, CFO

Business Units Deep Dive Oddone Pozzi, CFO

1Q'22 Highlights and Updates Josef Mastragostino, Chief IRO

Closing remarks Josef Mastragostino, Chief IRO

1Q'22 performance:

• ✓ Positive start of the year with growth both in terms of Revenues and EBITDA
• ✓ Strong Free Cash Flow and Cash generation remain key objectives for the Group
• ✓ NFP improved considerably vs FY'21 and is in line with the expectations to deleverage by year end
• ➢ Tinexta confirms its 2022 full year guidance of:
  • Revenues: +18-20% vs PY (+10-12% organic growth)
  • EBITDA Adjusted: +20-22% vs PY (+8-10% organic growth)
  • NFP/EBITDA Adjusted at c.2x

1Q'22 Financial Results Oddone Pozzi, CFO

Business Units Deep Dive Oddone Pozzi, CFO

Q&A

1Q'22 Highlights and Updates Josef Mastragostino, Chief IRO

Closing remarks Josef Mastragostino, Chief IRO

Disclaimer

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