TXT E-Solutions — Investor Presentation 2021

Aug 6, 2021

1

Call with Investors August 6 | 11.00am (CEST)

Daniele MISANI, CEO Andrea FAVINI, IR

#neverbetter Since 2018, constantly improving quarterly Revenues and EBITDA results.

+17% (Like-to-Like)

€4.2Mn -4% vs. H1-20, recovering from –12% in Q1-21

€ 10.9 Mn 25% of total revenues

€ 34Mn Short term net financial resources & + €10Mn* in Treasury Shares

* Value calculated with stock price of € 8.0 per share

_Sustainable growth, diversification

7%

Aerospace & Aviation Fintech

Aerospace & Defense ≃86% (out of 53.4%)

Industrial, Manufacturing, Automotive & Transportation

≃14% (out of 53.4%)

Government & Public Sector ≃23% (out of 46.6%)

_Q2 & July Main Events

Rebranding

Reboot of Our

• Reinforce the TXT Group identity
• Enhance the excellence of each part
• Show the change of speed
• Leverage synergies: designed by

TXT Group is going through a phase of change and strong growth. We are aggregating a network of synergic excellencies with the strategic ambition to maintain and expand the strong momentum in all key sectors of our business. This is why we have decided to create, with creative and innovative thinking, a new visual identity capable not only of communicating our nature as digital innovators and our flexibility in responding to ongoing change, but also of reinforcing the group identity, enhancing the excellence of all its parts .

TXT acquires :

strengthened

• TXT e -solutions S.p.A. ("TXT") announces the acquisition of TeraTron GmbH, acquiring 100% of its capital.
• TXT continues its internationalisation process with a further acquisition in Germany.
• This new acquisition strengthens TXT IoT offering in its already robust Automotive & Industrial (Industry 4.0) sector .
• Expected €9 million revenues with EBITDA of approximately €2 million full year results 2021. TXT will consolidate results starting from 1 August 2021.

New Fintech

Capital increase in

• TXT obtains stake equal to 51% of the share capital of the startup company for €0.51 Mln.
• Innovative solutions for wealth-management
• Go-to-market & Break Even in 2022

TXT Group's technological expertise represents a key asset in the implementation of innovative solutions to be offered to customers in different application areas such as the robot-advisors. Italy is ranked among the last in Europe for the number of active platforms and our wide and extensive technology platform combined with the multi-year financial market expertise of ReVersal's Members and Managers will be able to generate significant value for ReVersal's clients and TXT shareholders

TXT, Politecnico di Milano and ANT-X start a collaboration to develop drone-based solutions

A collaboration to develop and test innovative solutions and services based on the use of drones cooperating with helicopters to be employed in rescue missions. The JV will start projects, activities, and initiatives on topics such as search and rescue operations, advanced air mobility, earth monitoring, and cooperation between different aerial means.

HSPI working with INAIL for Digital Innovation Our software to support UK's FlyZero initiative

HSPI has been awarded the tender called by INAIL last June for the management of editorial web publishing and media relations support services. The success involves all the companies in the Temporary Grouping of Companies with whom HSPI won the tender, including Il Sole 24 Ore

Digitalisation and centralised management of Trade

9

Finance processes: Banca UBAE joins Polaris

Banca UBAE has joined the Polaris platform as a Financial Partner. Thanks to this platform, Banca UBAE, becomes part of the digital community generated by Polaris, gaining privileged access to one of the most dynamic segments of the financial market.

PACE will supply licenses of its preliminary aircraft and systems design suite and its route and aircraft economic analysis tool to the Aerospace Technology Institute's (ATI) FlyZero project. Led by the ATI and backed by the UK Government, the project is investigating the design challenges, manufacturing demands and market opportunities of zero-carbon emission aircraft.

H1-2021 FINANCIALS

(€ thousand)	H1 2021	%	H1 2020	%	Var %
REVENUES	43,699	100.0%	32,108	100.0%
Direct costs	27,085	62.0%	18,087	56.3%	49.7%
GROSS MARGIN	16,614	38.0%	14,021	43.7%	18.5%
Research and Development costs	3,313	7.6%	3,714	11.6%	(10.8%)
Commercial costs	3,757	8.6%	3,258	10.1%
General and Administrative costs	3,882	8.9%	3,007	9.4%
EBITDA	5,663	13.0%	4,042	12.6%	40.1%
Amortization, depreciation and write downs	1,927	4.4%	1,591	5.0%
Reorganization and non-recurring costs	316	0.7%	350	1.1%	(9.6%)
OPERATING PROFIT (EBIT)	3,419	7.8%	2,101	6.5%	62.7%
Financial income (charges)	271	0.6%	892	2.8%	(69.7%)
EARNINGS BEFORE TAXES (EBT)	3,689	8.4%	2,993	9.3%	23.3%
Taxes	(1,619)	(3.7%)	(263)	(0.8%)	515.6%
NET PROFIT	2,071	4.7%	2,730	8.5%	(24.2%)

€ thousand	30.06.2021	31.12.2020	Var
Cash & Cash equivalents	12,942	11,933	1,009
Trading securities at fair value	53,638	68,161	(14,523)
Current financial assets	-	-	-
Current bank loans	(32,350)	(30,636)	(1,714)
Short term Financial Resources	34,229	49,458	(15,229)
Non current financial debts - Lessors IFRS 16	(3,976)	(3,580)	(396)
Options referred to M&A (Put/Call - Earn Out)	(19,114)	(23,818)	4,704
Non current Financial Debts	(23,090)	(27,398)	4,308
Net Available Financial Resources	11,139	22,060	(10,921)

€ thousand	31.06.2021	31.12.2020	Var.
Intangible assets	37,035	37,653	(618)
Tangible assets	7,657	7,460	197
Other fixed assets	16,269	2,299	13,970
Fixed Assets	60,961	47,412	13,549
Inventories	5,862	4,749	1,113
Trade receivables	32,605	35,411	(2,806)
Other short term assets	6,402	5,782	620
Trade payables	(3,783)	(4,176)	393
Tax payables	(3,972)	(3,164)	(808)
Other payables and short term liabilities	(18,454)	(17,471)	(983)
Net working capital	18,661	21,131	(2,470)
Severance and other non current liabilities	(4,477)	(4,740)	263
Capital employed - Continuing Operations	75,145	63,803	11,342
Shareholders' equity	86,050	85,454	596
Shareholders' equity (minority interests)	233	409	(176)
Net financial debt	(11,139)	(22,060)	10,921
Financing of capital employed	75,144	63,803	11,341

rebased for free share distribution*

¹⁵ 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