TXT E-Solutions — Investor Presentation 2021

Nov 9, 2021

1

Call with Investors November 9 | 11.00am (CEST)

Daniele MISANI, CEO Andrea FAVINI, IR

Since 2018, constantly improving quarterly Revenues and EBITDA results. Fast reboot after COVID-19 outbreak.

#neverbetter

€6.3Mn -3% vs. 9m-20, recovering from –12% in Q1-21

€ 17.2 Mn 26% of total revenues

€ 38Mn Short term net financial resources & + €11Mn* in Treasury Shares

* Value calculated with stock price of € 8.72 per share (Share Price Sep 30th, 2021)

_Sustainable growth, diversification

Aerospace & Aviation Fintech

R&D Investments (Start-ups) 9m-2021: 1.0M €

Aerospace & Defense ≃82% (out of 55.7%)

Industrial, Manufacturing, Automotive & Transportation

≃18% (out of 55.7%)

Government & Public Sector ≃35% (out of 44.3%)

_Q3 & October Main Events

focus on accelerated

• Teratron contribution in 2021 is 5Mln revenues, 1Mln EBITDA, estimated double in 2022 with additional contributions coming from synergies.
• We expect to close new operations in Q421 to start with an additional contribution in line with Teratron operation.
• Solid pipline of further acquisitions.

We are very proud of the results achieved and the forecasts for the fourth quarter, which allow us to pursue with great positivity and determination our investment plan in specialised proprietary solutions and in strategic acquisitions to increase our positioning in different markets in different geographies, increasing TXT's value and profitability.

New contracts with main Banking Institution & Regional Public Entity for proprietary platform FARADAY (RegTech)

TXT entered in October 2021 in new, multi-year contracts with the Italian branch of a main international banking institution and with a regional public IT company for the supply of FARADAY, TXT's proprietary platform that leverage on artificial intelligence (AI) and machine learning (ML) algorithms to offer best-in-class solutions for risk management, AML and compliance.

Successful integration of TeraTron GmbH and new synergies ready to take off

After the acquisition of TeraTron GmbH finalized in the Q3, TXT has successfully competed the integration process for the new acquired company and is now ready to benefit from the commercial, technological and market synergies identified during the acquisition process and now ready to take off.

TXT together with European Space Agency (ESA) for Immersive Search and Rescue (ISAR) Project

TXT is ready to take off for a new space opportunity! Leveraging on its deep knowledge in Training and Simulation, TXT will develop a VR-simulation environment based on WEAVR, TXT proprietary platform, for the development of a new immersive VR solution for first responder training based on space data, this time at disposal of Search & Rescue (SAR) professionals.

New licenses contract with main Chinese player in the aviation market

As of the start of November 2021, TXT has been awarded with an upfront licenses contract for the supply of an advanced modelling software to one of the main Chinese institution active in the aviation market, with great opportunities to further expand its presence in the APAC market

flies again:

• Pacelab FPO joining the #1000solutions challenge, an initiative by the Solar Impulse Foundation that place us among solutions that meet high standards in profitability and sustainability and present them to decision -makers to fast -track their implementation.
• New commercial successes in H2 -2021:
• Trial contract signed in October with primary North American airline (200+ aircrafts, 100+ destinations)
• Ongoing negotiation of final contract with major North American cargo line after successful trial period
• Continues promising volume of Pacelab SUITE in projects with major European e -VTOL OEMs and with UK Government Organization ATI (Flyzero initiative )

9 months-2021 FINANCIALS

€ thousand	9m 2021	%	9m 2020	%	Var %
REVENUES	66,733	100	47,826	100	39.5
Direct costs	40,122	60.1	26,345	55.1	52.3
GROSS MARGIN	26,611	39.9	21,482	44.9	23.9
Research and Development costs	5,091	7.6	5,045	10.5	0.9
Commercial costs	6,481	9.7	5,755	12.0	12.6
General and Administrative costs	6,283	9.4	4,562	9.5	37.7
EBITDA	8,756	13.1	6,119	12.8	43.1
Depreciation	1,767	2.6	1,470	3.1	20.2
Amortization	1,280	1.9	919	1.9	39.3
Riorganization and Non Recurrent Costs	347	0.5	350	0.7	(1.0)
OPERATING PROFIT (EBIT)	5,362	8.0	3,379	7.1	58.7
Financial income (charges)	345	0.5	1,168	2.4	(70.4)
EARNINGS BEFORE TAXES (EBT)	5,707	8.6	4,546	9.5	25.5
Taxes	(1,576)	(2.4)	(939)	(2.0)	67.9
NET PROFIT	4,131	6.2	3,608	7.5	14.5

€ thousand	Q3 2021	%	Q3 2020	%	Var %
REVENUES	23,034	100	15,718	100	46.5
Direct costs	13,037	56.6	8,258	52.5	57.9
GROSS MARGIN	9,997	43.4	7,461	47.5	34.0
Research and Development costs	1,778	7.7	1,331	8.5	33.5
Commercial costs	3,109	13.5	2,497	15.9	24.5
General and Administrative costs	2,016	8.8	1,555	9.9	29.6
EBITDA	3,093	13.4	2,076	13.2	49.0
Depreciation	644	2.8	495	3.1	30.0
Amortization	435	1.9	303	1.9	43.7
Riorganization and Non Recurrent Costs	71	0.3	0	0.0	n.s.
OPERATING PROFIT (EBIT)	1,943	8.4	1,278	8.1	52.1
Financial income (charges)	74	0.3	276	1.8	(73.0)
EARNINGS BEFORE TAXES (EBT)	2,018	8.8	1,553	9.9	29.9
Taxes	43	0.2	(676)	(4.3)	n.s.
NET PROFIT	2,061	8.9	878	5.6	134.8

$\epsilon$ thousand	30.09.2021	31.12.2020	Var
Cash	24,078	11,933	12,145
Trading securities at fair value	48,589	68,161	(19, 572)
Short term Financial Debts	(34,489)	(30,636)	(3,853)
Short term Financial Resources	38,179	49,458	(11, 279)
Non current Financial Debts - Lessors IFRS 16	(3,877)	(3,580)	(297)
Other Non current Financial Debts	(30,799)	(23,818)	(6,981)
Non current Financial Debts	(34,676)	(27, 398)	(7,278)
Net Available Financial Resources	3,503	22,060	(18,557)

Solid $\overline{\mathbf{C}}$ positi NET cash: cia $\overline{\bullet}$

TXT

$\epsilon$ thousand	30.09.2021	31.12.2020	Change
ntangible assets	41,703	37,653	4,050
Tangible assets	11,254	7,460	3,794
Other fixed assets	16,474	2,299	14,175
Fixed Assets	69,431	47,412	22,019
nventories	9,626	4,749	4,877
Trade receivables	29,354	35,411	(6,057)
Other short term assets	7,264	5,782	1,482
Trade payables	(3,851)	(4,176)	325
Tax payables	(2,900)	(3,164)	264
Other payables and short term liabilities	(18,503)	(17, 471)	(1,032)
Net working capital	20,990	21,131	(141)
Severance and other non current liabilities	(4,672)	(4,740)	68
Capital employed - Continuing Operations	85,749	63,803	21,946
Shareholders' equity	88,824	85,454	3,370
Shareholders' equity - minority interest	427	409	18
Net financial debt	(3,503)	(22,060)	18,557
Financing of capital employed	85,748	63,803	21,945

Latest Public Data Available as of 30 September 2021

Share Price Dec 31st, 2018	9.66€/share
Share Price Sep 30th, 2021	8.72€/share
Mkt Sep 30th, 2021	103.1m €
Dividend Yield	0,5%

14

Dividends and Treasury Shares Repurchase (€m)

Dividends

Year Dividends	Year
2013 0.20 € / share	2017 0.30 € $/$ share
2014 Free Share Distribution 1:1	2018 1.00 € / share
2014 0.25 € / share	2019 0.50 € / share
2015 Free Share Distribution 1:10	2020 nil
2015 0.25 € / share	2021 0.04 € / share
2016 0.25 € / share