TXT E-Solutions — Investor Presentation 2022

Mar 14, 2022

1

Call with Investors March 14 | 11.00am (CEST)

Daniele MISANI, CEO Andrea FAVINI, IR

Record performance for TXT Group achieved in 2021

#neverbetter

_2021 record performances

Revenues (pro-forma *)

EBITDA (pro-forma *)

€108.6mn €16.5mn

* All current TXT Group companies aggregated from January 2021

Never better.

_2021 Highlights

NET PROFIT

New Companies

Organic Growth

€7.3mn

+5

+13.3% vs ²⁰

Never better.

_Revenues & EBITDA CAGR (2018-2021) show extraordinary growth ⁵

€8.4Mn -2% vs. FY-20, recovering from –12% in Q1-21

€ 28.7 Mn 30% of total revenues

€ 3.8Mn (Net Debt Position) + €13Mn* in Treasury Shares

* Value calculated with stock price of € 10.14 per share (Share Price Dec 31st, 2021)

_2021 Main Events & Future Evolutions

⁸ _a new positioning and visual Identity for TXT Group

TXT is an international IT Group, end-to-end provider of consultancy, software services and solutions, supporting the digital innovation of customers' products and core processes. With a proprietary software portfolio and deep expertise in vertical domains, TXT operates across different markets, with a growing footprint in Aerospace, Aviation, Defense, Industrial, Government and Fintech.

TXT is headquartered in Milan and has subsidiaries in Italy, Germany, the United Kingdom, France, Switzerland and the United States of America. The holding company TXT e-Solutions S.p.A, has been listed on the Italian Stock Exchange, STAR segment (TXT.MI), since July 2000.

(including Public Sector offering)

• After successful integration on the new acquired Fintech companies, in 2022 the Group foresees significant growth of all segments boosted by technological synergies and new sales network built in the last 3 years;
• New contracts in the AML, risk management, digital payments and consumer credit segments to support the growth and the investments in proprietary platforms (startups);
• Organic growth in Public sector segment boosted by the start of activities on public tenders awarded in Q4 2021
• New products for the digital payments and e-commerce segments with the acquisition of LBA Consulting;
• New prestigious customers operating in the Italian and Swiss acquired with M&A; strong cross selling and up selling opportunities to drive the organic growth of the division.

Aerospace & Aviation Division (including Automotive & Manufacturing offering)

• Positive outlook of TXT business in the civil aviation market thanks to the ongoing negotiations with major airlines and manufacturers for the sale of PACE's proprietary products;
• New product launched: Pacelab HALO The world's first 3D aircraft interior configurator;
• Constant growth in the defence segment with new project contracts signed with domestic and European customers;
• New European R&D Projects awarded by the Group in the field of hybrid-electric propulsion and more
• Automotive, Manufacturing & Industrial segments are growing fast for TXT thanks to the integration of Teratron, the synergies between group companies and the new commercial and marketing power built in 2021. Customer portfolio consists of the main European players; still strong growth potential.

_Sustainable growth, diversification

Aerospace & Aviation Fintech

R&D Investments (Start-ups) FY-2021: +1.0M €

Aerospace & Defense ≃79% (out of 55.9%)

Industrial, Manufacturing, Automotive & Transportation

≃21% (out of 55.9%)

Government & Public Sector ≃34% (out of 44.1%)

campaign in

• Three small-size Fintech specialists consolidated from December 2021 to strength TXT offering: LBA Consulting (Digital Payments), Novigo Consulting (Digital Transformation of financial institutions) and QUENCE (SW Quality Assurance). Expected M&A contribution to the Fintech division results for 2022: 8Mln revenues and 1,5Mln EBITDA (nonmaterial in 2021);
• In the industrial field, Teratron GmbH (Industry 4.0) consolidated from H2-2021 contributed for 5Mln revenues and 1Mln EBITDA in the 2021 results, estimated double in 2022 with additional contributions coming from synergies.

focus on

• For the Q1 2022 , revenues of Euro 28 /29 million are expected, up by approximately 35 % compared to Q 1 2021 (Euro 21 million), of which Euro 3 million of organic growth (+ 15 % compared to Q 1 2021 ) and Euro 4 million deriving from acquisitions .
• Solid pipeline of new potential acquisitions to boost the growth of TXT Group in 2022

€ 40Mn Short term net financial resources >€13Mn in Treasury Shares >€ 14Mn financial investment in Banca del Fucino

"We are evaluating new investment opportunities that would lead TXT to revenue volumes in excess of €150m already in 2022."

FY-2021 & Q4-2021 FINANCIALS

NET PROFIT 7,839 8.1 4,715 6.9 66.3

€ thousand	Q4 2021	%	Q4 2020	%	Var %
REVENUES	29,630	100	20,927	100	41.6
Direct costs	16,891	57.0	13,125	62.7	28.7
GROSS MARGIN	12,739	43.0	7,802	37.3	63.3
Research and Development costs	1,799	6.1	1,639	7.8	9.8
Commercial costs	3,270	11.0	1,881	9.0	73.8
General and Administrative costs	1,910	6.4	1,841	8.8	3.7
EBITDA	5,760	19.4	2,441	11.7	136.0
Depreciation	669	2.3	548	2.6	22.1
Amortization	842	5.0	1,873	14.3	(55.0)
Riorganization and Non Recurrent Costs	9	0.0	244	1.2	(96.3)
OPERATING PROFIT (EBIT)	4,240	14.3	(224)	(1.1)	(1992.9)
Financial income (charges)	361	1.2	221	1.1	n.m.
Non-recurrent financial income (charges)	-	0.0	1,331	6.4	n.m.
EARNINGS BEFORE TAXES (EBT)	4,601	15.5	1,328	6.3	246.5
Taxes	(893)	(3.0)	(224)	(1.1)	n.m.
NET PROFIT	3,708	12.5	1,104	5.3	235.9

€ thousand	31.12.2021	31.12.2020	Var
Cash	36,076	11,933	24,143
Trading securities at fair value	48,869	68,161	(19,292)
Short term Financial Debts	(44,570)	(30,635)	(13,935)
Short term Financial Resources	40,375	49,459	(9,084)
Non current Financial Debts - Lessors IFRS 16	(4,209)	(3,580)	(629)
Other Non current Financial Debts	(45,260)	(23,818)	(21,442)
Non current Financial Debts	(49,469)	(27,398)	(22,071)
Net Cash/(Debt)	(9,094 )	22,061	(31,155)
Non-monetary debts for adjustment of the price of the 2021 acquisitions to be paid in TXT shares	5,253	-	5,253
Net Cash/(Debt) Adjusted	(3,841 )	22,061	(25,902 )

€ thousand	31.12.2021	31.12.2020	Change
Intangible assets	52,626	37,653	14,973
Tangible assets	12,126	7,460	4,666
Other fixed assets	16,529	2,299	14,230
Fixed Assets	81,281	47,412	33,869
Inventories	7,810	4,749	3,061
Trade receivables	43,156	35,411	7,745
Other short term assets	8,864	5,782	3,082
Trade payables	(6,303 )	(4,176 )	(2,127 )
Tax payables	(5,700 )	(5,147 )	(553 )
Other payables and short term liabilities	(23,650 )	(17,471 )	(6,179 )
Net working capital	24,177	19,148	5,029
Severance and other non current liabilities	(3,297 )	(2,757 )	(540 )
Capital employed - Continuing Operations	102,161	63,803	38,358
Shareholders' equity	92,655	85,454	7,201
Shareholders' equity - minority interest	412	409	3
Net financial debt	9,094	(22,060 )	31,154
Financing of capital employed	102,161	63,803	38,358

19

Latest Public Data Available as of 31 December 2021

Share Price Dec 31st, 2018	9.66€/share
Share Price Dec 31st, 2021	10.14€/share
Mkt Dec 31st, 2021	119.3m €
Dividend Yield	n.a.

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	2022 nil

With the aim of best pursuing the accelerated growth plans through acquisitions and continuing investments in proprietary platforms to increase the value of the Group and, also in view of the current situation of geopolitical uncertainty and macroeconomic instability, the Board resolved to propose to the General Meeting not to distribute a dividend.

The Board discussed the possibility of distributing a dividend during the year linked to market developments and future economic and political contingencies.