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Tinexta
Investor Presentation • Aug 2, 2024
4493_ip_2024-08-02_b3cece26-a1ae-4c61-bd5c-938d335c5f15.pdf
Investor Presentation
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1H 2024 Results Ended June 30, 2024
Milan – August 2, 2024
Agenda
1H'24 Highlights and Updates J. Mastragostino | Chief Investor Relations Officer 1H'24 Financial Results O. Pozzi | Group Chief Financial Officer
Business Units Deep Dive O. Pozzi | Group Chief Financial Officer
2
Closing Remarks + Q&A J. Mastragostino | Chief Investor Relations Officer
1H'24 Highlights and Updates J. Mastragostino | Chief Investor Relations Officer
1
Key data
EBITDA Adjusted € 34.4 M (- 9% vs PY)
EBITDA EBIT Adjusted € 25.5 M € 19.5 M
€ 203.0 M + 11% vs PY REVENUES
NET PROFIT Adjusted € 11.9 M FCF Adjusted of cont. ops.
€ 25.8 M
NFP € 276.9 M vs € 102 M in FY2023
Results at 30/06/2024
1H'24 Highlights and Updates
1H 2024: Updating, after the first six months
• Results:
- Revenues at € 203.0M in 1H'24 (+ 11.3% vs PY);
- EBITDA Adjusted at € 34.4M in 1H'24 (- 9.1% vs PY) mainly impacted by ABF's contribution combined with CS's less favorable revenue mix and BI's known seasonality, partially offset by DT's strong performance; EBITDA1 at € 25.5M in 1H'24 (- 26.2% vs PY) includes € 6.5M of non-recurring items;
- EBITDA Adjusted margin 17.0% (20.8% vs PY); EBITDA1 margin 12.6% (18.9% vs PY);
- EBIT Adjusted at € 19.5M (- 30.4% vs PY); EBIT Adj. Margin at 9.6%;
- Adjusted Net Profit of continuing operations at € 11.9M (- 37.1% vs PY); Net Profit at € 2.3M;
- NFP of € 276.9M (€ 102.0M in FY'23) reflects mainly ABF's and Lenovys' acquisitions; NFP/LTM EBITDA Adjusted of 2.78x up from 0.55x in 1H'23;
- Adjusted Free Cash Flow of continuing operations: € 25.8M vs € 29.3M in 1H'23; on a LTM base Adjusted FCF of continuing ops was: € 53.4M.
• Top line still growing in all business lines2 :
- Digital Trust, Revenues + 18.4% and EBITDA + 20.8%. Excellent EBITDA margin of 28.8%
- Cybersecurity, grew 6.5% in Revenues, EBITDA at € 4.1M. EBITDA margin at 9.0%
- Business Innovation, posted a + 6.7% growth in Revenues with EBITDA at € 10.3M. EBITDA margin 17.1%
• Recent Events & Updates:
- Finalized in January the acquisition of 73.9% of ABF Group
- Launched in February of a new strategic and operational advisory business line for SMEs'
- Reached in April the 100% of Yoroi, Swascan & Corvallis, impact already included in NFP as of acquisition date. The BOD authorized the purchase and disposal of treasury shares
1H'24 Highlights and Updates
1H 2024 Results
€ M
1H 2024 results show Revenues of € 203.0 million, EBITDA Adjusted of € 34.4 million and Net Profit of € 2.3 million.
Growth was registered in Revenues (c. + 11%) with a light contraction in EBITDA Adjusted (c. - 9%)
EBITDA Adjusted amounted to 34.4 million euros
EBITDA Adjusted margin was 17.0% (vs 20.8% in PY)
EBITDA reported was 25.5 million euros (- 26.2% vs PY)
EBITDA reported margin at 12.6%
Net Profit came in at 2.3 million euros
Adjusted Net Profit from continuing operations was equal to 11.9 million euros
Adjusted Free Cash Flow from continuing operations was 25.8 million euros
1H'24 Highlights and Updates
EBITDA Adjusted Quarter by Quarter – back end weighted business
*Data considered mid-point of 2024 EBITDA Adjusted guidance
1H'24 Financial Results O. Pozzi | Group Chief Financial Officer
2
1H 2024 Results – Income Statement
| € M | 1H 2024 | with Acquisitions | LFL2023 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 1H'24 | % | 1H'23 | % | on 2023 | % | Δ | Δ% | Δ | Δ% | ||
| Revenues | 203.0 | 100.0% | 182.5 | 100.0% | 186.4 | 100.0% | 20.5 | 11.3% | 3.9 | 2.1% | |
| Total Operating Costs | -168.6 | -83.0% | -144.6 | -79.2% | -153.9 | -82.6% | -24.0 | 16.6% | -9.3 | 6.4% | |
| Service & Other Costs | -79.5 | -39.2% | -65.9 | -36.1% | -74.2 | -39.8% | -13.6 | 20.6% | -8.3 | 12.5% | |
| Personnel Costs |
-89.1 | -43.9% | -78.7 | -43.1% | -79.7 | -42.8% | -10.4 | 13.2% | -1.0 | 1.3% | |
| EBITDA Adjusted | 34.4 | 17.0% | 37.9 | 20.8% | 32.5 | 17.4% | -3.5 | -9.1% | -5.4 | -14.3% | |
| Share Based Payments & Other non-recurring costs | -8.9 | -4.4% | -3.4 | -1.9% | -8.9 | -4.8% | -5.6 | 165.1% | -5.6 | 164.8% | |
| EBITDA | 25.5 | 12.6% | 34.5 | 18.9% | 23.5 | 12.6% | -9.0 | -26.2% | -11.0 | -31.8% | |
| Depreciation, amortisation, provisions and impairment | -24.6 | -12.1% | -19.3 | -10.6% | -22.6 | -12.1% | -5.3 | 27.6% | -3.3 | 17.2% | |
| Operating Profit | 0.9 | 0.4% | 15.2 | 8.3% | 0.9 | 0.5% | -14.4 | -94.2% | -14.3 | -94.0% | |
| Financial Income | 6.7 | 3.3% | 3.2 | 1.7% | 5.0 | 2.7% | 3.5 | 111.6% | 1.9 | 59.1% | |
| Financial Charges | -8.0 | -3.9% | -3.8 | -2.1% | -7.0 | -3.8% | -4.3 | 113.6% | -3.2 | 86.5% | |
| Net financial Charges | -1.3 | -0.6% | -0.6 | -0.3% | -2.0 | -1.1% | -0.7 | 124.7% | -1.4 | 234.7% | |
| Profit of equity-accounted investments |
0.3 | 0.1% | -0.1 | -0.1% | 0.3 | 0.2% | 0.4 | -370.3% | 0.4 | -370.3% | |
| Profit Before Taxes |
-0.1 | -0.1% | 14.5 | 8.0% | -0.7 | -0.4% | -14.7 | -100.9% | -15.3 | -105.1% | |
| Income Taxes |
2.4 | 1.2% | -5.2 | -2.9% | 1.8 | 1.0% | 7.6 | -146.8% | 7.0 | -134.5% | |
| Net Profit of Continuing Operations | 2.3 | 1.1% | 9.3 | 5.1% | 1.1 | 0.6% | -7.0 | -75.3% | -8.3 | -88.7% | |
| Results of Discontinued Operations |
0.0 | N/A | 36.1 | N/A | 0.0 | N/A | -36.1 | -100.0% | -36.1 | -100.0% | |
| Net Profit | 2.3 | 1.1% | 45.4 | N/A | 1.1 | 0.6% | -43.1 | -94.9% | -44.4 | -97.7% |
1H 2024 Results – Having a clear view on P&L Adjustments
| € M | EBITDA | Operating profit (loss) | Net profit from continuing operations | |||||
|---|---|---|---|---|---|---|---|---|
| 1H 2024 | 1H 2023 | 1H 2024 | 1H 2023 | 1H 2024 | 1H 2023 | |||
| Reported income statement results | 25.5 | 34.5 | 0.9 | 15.2 | 2.3 | 9.3 | ||
| Non-recurring service costs | 3.8 | 1.4 | 3.8 | 1.4 | 3.8 | 1.4 | ||
| LTI incentive plans | 2.4 | 1.8 | 2.4 | 1.8 | 2.4 | 1.8 | ||
| Non-recurring personnel costs | 2.7 | 0.3 | 2.7 | 0.3 | 2.7 | 0.3 | ||
| Other non-recurring operating costs | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | ||
| Amortisation of other intangible assets from consolidation | 9.7 | 9.0 | 9.7 | 9.0 | ||||
| Non-recurring provisions | 0.0 | 0.2 | 0.0 | 0.2 | ||||
| Non-recurring depreciation | 0.0 | 0.2 | 0.0 | 0.2 | ||||
| Non-recurring financial incomes | (0.2) | 0.0 | ||||||
| Contingent Consideration | (3.9) | (0.3) | ||||||
| Non-recurring financial charges | 2.8 | 0.3 | ||||||
| Tax effect on adjustments | (4.2) | (3.3) | ||||||
| Non recurring taxes | (3.5) | 0.0 | ||||||
| Adjusted income statement results | 34.4 | 37.9 | 19.5 | 28.0 | 11.9 | 18.9 | ||
| Change from previous year | -9.1% | -30.4% | -37.1% |
1H 2024 Results – Balance Sheet
1H'24 Financial Results
1H 2024 Results – NFP & FCF
€ M
FY 2023 1H 2024
102.0
1H'24 Financial Results
1H'24 Financial Results
1H 2024 Results – NFP LTM Bridge
(1) Calculated as NFP/LTM EBITDA Adjusted
Business Units Deep Dive O. Pozzi | Group Chief Financial Officer
Overview 1H'24
Business Innovation
Business Units Deep Dive
Digital Trust 1H'24
€ M
- Revenues amounted to 102.3 million euros, up by 18.4% (+ 8.9% on a 2023 basis) of which 9.5% attributable to the acquisitions of Ascertia and Camerfirma Colombia; consolidated as of August 1 st 2023 and April 1 st 2024 respectively
- Growth was mainly driven by solutions relating to both LegalMail and LegalCert, as well GoSign & Trusted Onboarding Platform solutions specifically geared to the Enterprise market. International revenues continue to grow as we reach a larger number of customers throughout Europe, topping over 18% of the BU's total revenues vs 12% in PY
- To continue to be at the leading edge, the BU continues to invest to improve its products in terms of usability and integration, AI applications are expected to contribute significantly to enhancing efficiency and offering to professional associations
Cybersecurity 1H'24
€ M
- Revenues amounted to 45.3 million euros, up 6.5%. The growth was mainly supported by the resale component of third-party products in the Implementation Services area (approximately + 25%) and in Cyber & Digital Resilence services through customization, configuration, installation, maintenance, and security monitoring of products, including third-party ones
- In the Finance sector, the BU recorded growth of approximately 15% mainly determined by the Product component. The results obtained in the Managed Security Services area were in line with 2023; the integration of the offer of Cybersecurity services with those of Digital Trust continued, thanks to the sale of LegalMail which recorded over 50,000 new activations in the first half of 2024. In the Advisory area, the BU provided services through the new Cyber Threat Intelligence (CTI) platform and the Ryoken platform, both developed internally, capturing new regulatory needs in the Finance and Infrastructure fields. The first half of 2024 was also characterized by the completion of the corporate integration following the acquisition of full control of all the companies acquired in 2021
- Adjusted EBITDA at 4.1 million euros, down 15.1%. The reduction in marginality was determined by a greater component of revenues from the resale of low-margin products, stable revenues from services, the "temporary" greater use of third parties, and less favorable revenue mix
Business Innovation 1H'24
€ M
- Revenues amounted to 59.9 million euros growing 6.7% vs PY thanks to the announced acquisitions of Studio Fieschi, ABF Group, and Lenovys
- The decrease in organic revenues is mainly attributable to the well-known decline in volumes and deductible rates relating to automatic subsidized finance services as well as lower sales in Training, Energy, Gas Credit, and Green. The subsidized finance market was also affected by the well-known reduction in rates relating to R&D Credit 4.0. "Transizione 5.0" – which will allow for deductible rates of up to 45% - represents a strong growth opportunity for the latter part of the year and its contribution is expected by the second half of August. ABF Group's revenue contribution for the first half was equal to 5.6 million euros (less than expectations) and EBITDA came in negative at 1.3 million euros
Business Units Deep Dive
Explaining ABF
€ M
The 1H'24 exceptional events in France have noticeably increased the effect of seasonality, determining a 6 months delay
- Government change in January
- Significant budget revisions at the end of February
- Dissolution of the National Assembly at the end of June
…which brought to a postponement of national public financing decisions (France 2030) and therefore a delay in the launch of new project tenders (decarbonization, etc.), and uncertainty over the maintenance of budgets for ongoing project tenders (resulting in greater selectivity of applications and consequent increased in failure rates)
Closing Remarks + Q&A J. Mastragostino | Chief Investor Relations Officer
Closing Remarks + Q&A
Group's Financial Targets – Explained
- Guidance has been updated, excluding ABF, and shows continuous progress in underlying business trends
- ABF's contribution for FY'24 has been moderately revised due to the political events in France
- "Transizione 5.0" to show its benefits in latter part of the year, but no earlier than end of Q3 and Q4
| Revenues | EBITDA Adjusted | |||
|---|---|---|---|---|
| + 11-15% | + 10-14% | Without ABF | ||
| 2024 | NFP / EBITDA Adj. | |||
| vs PY | 1.9x | |||
| Revenues | EBITDA Adjusted | |||
| + 20% | + 22% | With ABF | ||
Benefits from any additional M&A are not included in guidance
Disclaimer
This company presentation includes:
- ➢ forward-looking data based on internal management assumptions that are subject to material changes, including changes due to external factors beyond the Group's control
- ➢ management data, when presented, are identified as such
Business unit data are divisional and do not include the elimination of intra-BU items, which are instead eliminated at a Group level.
For detailed information on Tinexta S.p.A., it is recommended to refer to the company's documentation, including the latest interim reports and the Company's financial statements.
Thanks.
Tinexta.com
Piazzale Flaminio, 1/B Roma, 00196, Italia Tel. +39.06.42012631
E-mail [email protected] Pec [email protected] LinkedIn: Tinexta
Investor Relations Contacts
Josef Mastragostino Chief Investor Relations Officer [email protected]
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