Tinexta — Incorporating Cyber Security

Tinexta (MIL: TNXT)

Last close As at 21/06/2024

EUR17.19

0.54 (3.24%)

Market capitalisation

EUR812m

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Research: TMT

Tinexta — Incorporating Cyber Security

Tinexta’s FY20 results were broadly in line with management’s prior guidance and demonstrated margin leverage despite it being a more challenging year due to COVID-19, and a significant improvement in free cash flow generation and net debt. The acquisitions of the Cyber Security businesses have enhanced the group’s growth revenue and EBITDA growth profile, albeit diluting the group’s EBITDA margin. Our DCF-based approach suggests a valuation of €27 per share.

Russell Pointon

Written by

Russell Pointon

Director of Content, Consumer and Media

TMT

Tinexta

Incorporating Cyber Security

FY20 results

Professional services

6 April 2021

Price

€23.08

Market cap

€1,072m

€/£0.85

Net debt (€m) at 31 December 2020

91.9

Shares in issue

46.4m

Free float

34%

Code

TNXT

Primary exchange

Borsa Italiana Star

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

18.5

8.1

147.6

Rel (local)

9.9

(2.8)

64.8

52-week high/low

€23.25

€9.12

Business description

Tinexta currently has four divisions: Digital Trust – solutions to increase trust in digital transactions; Credit Information & Management – services to manage credit; Innovation & Marketing Services – consulting services to help clients develop their businesses; and Cybersecurity.

Next events

Q121 results

12 May 2021

H121 results

3 August 2021

Q321 results

10 November 2021

Analysts

Russell Pointon

+44 (0)20 3077 5700

Fiona Orford-Williams

+44 (0)20 3077 5739

Tinexta is a research client of Edison Investment Research Limited

Tinexta’s FY20 results were broadly in line with management’s prior guidance and demonstrated margin leverage despite it being a more challenging year due to COVID-19, and a significant improvement in free cash flow generation and net debt. The acquisitions of the Cyber Security businesses have enhanced the group’s growth revenue and EBITDA growth profile, albeit diluting the group’s EBITDA margin. Our DCF-based approach suggests a valuation of €27 per share.

Year end

Revenue (€m)

PBT*
(€m)

EPS*
(€)

DPS
(€)

P/E
(x)

Yield
(%)

12/19

258.7

53.5

0.80

0.00

29.0

N/A

12/20

269.0

58.6

0.87

0.26

26.6

1.1

12/21e

370.2

73.5

1.11

0.33

20.9

1.4

12/22e

411.7

86.9

1.31

0.39

17.6

1.7

Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

FY20: In line with management’s guidance

The FY20 results were broadly in line with management’s guidance: organic revenue growth of 3.2% to €269m compared to guidance of €260m, and reported EBITDA of €77.9m was versus guidance of ‘close to €80m’. The improved (adjusted) EBITDA margin of 30.2% is consistent with management’s belief that long-term profit growth should be higher than revenue growth. The CFO’s focus on cash flow generation is evident in 60% y-o-y growth in free cash flow due to the higher profitability and a working capital inflow versus the customary outflow. This led to a significant improvement in the year-end net debt position of €91.9m (FY19: €129.1m).

Forecasts: Incorporating Cyber Security

The initial acquisitions that form the new division, Cyber Security, were completed in Q420 and Q121. Our FY21 estimates for revenue (growth of c 38% to €370.2m) and EBITDA (19% to €96.2m) are in line with management’s guidance. Management’s guidance for Cyber Security of three-year revenue growth of 17% compares favourably to Tinexta’s historical organic growth rates (6–7% in recent years). However, its initial lower EBITDA margin (c 13% guidance in FY21 versus Tinexta’s FY20 30.2%) dilutes the group average (margin of c 26% in FY21), but is expected to grow quickly (c 41% three-year CAGR) thereafter, enhancing the group’s medium-term EBITDA growth profile.

Valuation: DCF valuation of €27/share

Our DCF-based approach points to a valuation of €27 per share. Using our new forecasts, at the current share price the EV/sales multiple is in line with the prior (non-COVID-19 affected) peak of 3.1x, while the P/E multiple of 20.9x is below its prior peak. We believe Tinexta’s better future growth profile and cash generation warrant a higher multiple than historically.

FY20 results and new guidance

Tinexta’s FY20 results are broadly in line with management’s guidance at the time of the Q320 results in November 2020. As is customary at the start of a new financial year, management provided its guidance for the current financial year, as well as introducing the new annual three-year business plan. These are important given they show how management expects financial results to recover from the COVID-19 affected FY20, as well as being the first time that management has provided detailed financial guidance following the newly created business unit, Cyber Security, as well as other recent and smaller acquisitions.

FY20 income statement

For FY20, Tinexta’s revenue of €269.0m and reported EBITDA of €77.9m represented year-on-year growth from FY19 of 4.0% (3.2% organic) and 9.3% respectively. The revenue is c 4% ahead of management’s prior revenue guidance of ‘around €260m’ and just below EBITDA guidance of ‘close to €80m’. Our EBITDA forecast was €81m, marginally ahead of guidance. The results confirmed management’s belief that profit growth should, typically, be greater than revenue growth. For completeness, EBITDA before stock options and adjusted EBITDA (ie before non-recurring items) increased by 5.3% y-o-y to €78.8m and 5.7% to €81.2m respectively.

Adjusted net profit growth was 31.7% to €37.9m, helped by a better-than-expected net finance expense given the strong operating and free cash flow generation, discussed below. The normalised tax rate of 29.5% was as expected.

Divisional performance

With the results there is a minor change in divisional disclosure; sales made by the parent company are now separately reported and intra-group sales are eliminated on consolidation. As Exhibit 1 highlights, the change is not material between the old and new disclosure for FY19, but as a result we cannot (accurately) compare organic growth rates for the individual business segments consistently through FY20 as we do not have restated financials for the quarters in FY19 and FY20. For the group as a whole, organic revenue growth was 2.8% in Q420 and adjusted EBITDA declined by c 4% due to a very strong comparative from Q419, in particular Innovation and Marketing Services (discussed below). Growth rates for revenue and EBITDA were both lower than the strong Q3 growth rates of 18.5% and 45.9%, which were helped by the bounce back post COVID-19 lockdowns.

Exhibit 1: Business unit performance in FY20 versus FY19

€000

FY19 old

FY19 new

FY20

Organic growth
y-o-y

Adjusted revenue

- Digital Trust

106,655

107,266

115,843

8.0%

- Credit Information & Management

72,286

72,566

77,251

6.5%

- Innovation & Marketing Services

79,781

79,824

76,511

(5.6%)

- Cyber Security

743

N/A

- Other (Parent Company)

1,357

2,186

61.1%

- Intra-segment

(2,291)

(3,524)

53.7%

Total

258,722

258,722

269,010

3.2%

EBITDA before non-recurring items

- Digital Trust

29,570

29,570

31,045

5.0%

- Credit Information & Management

17,482

17,482

23,678

35.4%

- Innovation & Marketing Services

37,948

37,948

36,067

(6.1%)

- Cyber Security

140

- Other (Parent Company)

(8,173)

(8,173)

(9,711)

(18.8%)

Total

76,827

76,827

81,219

5.0%

Margin

- Digital Trust

27.7%

27.6%

26.8%

- Credit Information & Management

24.2%

24.1%

30.7%

- Innovation & Marketing Services

47.6%

47.5%

47.1%

- Cyber Security

18.8%

Total

29.7%

29.7%

30.2%

Source: Tinexta

Digital Trust’s FY20 organic revenue growth of 8.0% to €115.9m from €107.3m was helped by the ongoing strength of the Enterprise Solutions business with strong growth in the number of customers and/or transactions processed.

Credit Information & Management’s organic revenue increased by 6.5% to €77.3m and its EBITDA increased by 35.4% to €23.7m, a margin of c 30.7% versus FY19’s 24.1%. The business has recovered very well following the macro weakness in H120. The real estate valuation business was negatively affected by COVID-19; however, demand for the core credit information product has been enhanced by the poor macro environment making its use in managing credit strategically more important. The business unit has also been helped by demand for its services that help clients gain access to government financial stimulus in response to COVID-19, ie guarantees of bank loans.

Revenue and EBITDA for Innovation & Marketing Services fell by 5.6% organically in FY20 and by 6.1% respectively due the macro effects of lower volumes in subsidised finance and the contraction in clients’ ability and desire to export, albeit the latter recovered towards the end of FY20.

Cash flow and balance sheet

There was an impressive performance with respect to free cash flow generation, which increased by 60% y-o-y to €66.7m, and represented c 25% of revenue versus 16% in the prior year. The main drivers of improvement were higher profitability and an impressive inflow of working capital versus an outflow in FY19. We highlight that improving free cash flow generation has been a key focus of the new CFO, Oddone Pozzi. Following the strong working capital performance in FY20, the goal for the next three years is to maintain the level of the KPI of 2020, ie there will be only a slight working capital absorption as revenue grows.

Investment in capex and intangibles was broadly consistent with FY19 at 5.5% of revenue.

Tinexta’s net debt position at the end of FY20 improved to €91.9m from €129.1m at the end of FY19, despite a net outflow of c €36.1m on M&A and €10m on the purchase of shares to support the stock option plan. The net debt/EBITDA position of 1.2x was a significant improvement from 1.8x at the end of FY19. Management guides to net debt/EBITDA of approximately 2x by the end of FY21 following the completed acquisitions of the Cyber Security businesses.

FY21 guidance and new three-year business plan for FY21–23

Management’s new guidance for FY21 is for revenue of approximately €370m (y-o-y growth of c 38%) and EBITDA of €96m, an increase of c 23% from FY20. FY21 benefits from the first full year of the recently formed Cyber Security business unit. Please see our update note published on 19 October 2020.

Management estimates that Cyber Security will contribute c €76m in revenue and €10m in EBITDA, a margin of c 13%. Pro forma FY20 revenue was €69m and EBITDA was €8m, and management guidance therefore represents growth of c 10% and 25%, respectively. Group EBITDA is expected to grow at a slower rate than revenue, given Cyber Security’s margin is lower than the group average, but will then return to the long-term trend of EBITDA growth higher than revenue growth. The guidance implies that the non-Cyber Security businesses will contribute revenue of c €296m and EBITDA of €86m, including a contribution from recent small acquisitions in Innovation & Marketing Services, eg Queryo, the digital marketing agency, which reported revenue of c €5m and EBITDA of €2.5m in FY20, prior to its acquisition.

In the absence of further M&A, management’s three-year business plan is summarised in Exhibit 2, including some roundings.

Exhibit 2: Tinexta’s organic business plan FY21–23

€m

FY20

FY21

FY23

FY21–23 CAGR

Digital Trust:

Revenue

115.9

124.0

142.0

7%

Growth y-o-y

7%

EBITDA

30.4

34.0

42.7

12%

Growth y-o-y

12%

Cyber Security:

Revenue

76.0

104.0

17%

Growth y-o-y

EBITDA

10.0

19.9

41%

Growth y-o-y

Credit Information & Management:

Revenue

76.9

82.0

91.6

6%

Growth y-o-y

7%

EBITDA

23.4

24.0

28.7

7%

Growth y-o-y

3%

Innovation & Management Services:

Revenue

76.5

90.0

110.4

13%

Growth y-o-y

18%

EBITDA

34.8

40.0

51.6

14%

Growth y-o-y

15%

Other, ie central costs

(10.8)

(12.0)

Group:

Revenue

269.3

372.0

448.0

18%

Growth y-o-y

38%

EBITDA

77.8

96.0

127.8

18%

Growth y-o-y

23%

Source: Tinexta

In aggregate and in the absence of M&A, management’s three-year business plan estimates CAGRs for revenue and EBITDA in FY21–23e of 18%, indicating revenue of c €448m and EBITDA of €128m. Management states that the estimates are challenging but achievable, while recognising current macro weakness and uncertainty about the near- to medium-term pace of COVID vaccinations. Furthermore, management highlights that potential M&A could increase the CAGRs for both revenue and EBITDA in FY21–23e to 22%, an increase of 4pp per year.

With respect to the estimates, we make the following observations:

Digital Trust: management’s estimate of 7% organic revenue growth compares with a range of 8–11% in the three financial years prior to COVID, and 8% growth reported in FY20.

Cyber Security: management’s estimate of 17% organic revenue growth is far ahead of the quoted estimates for market growth of 9–10%, implying the businesses acquired should be well positioned and revenue synergies will be achieved when combined.

Credit Information & Management: the estimate of 6% organic revenue growth compares with revenue declines in the most recent years prior to COVID. This reflects management’s new optimism about the demand for credit information in managing credit in a tougher macro environment and the ongoing COVID stimulus from the Italian government.

Our new estimates are in line with management guidance.

Exhibit 3: Summary of forecast changes

€m

FY21 old

FY21 new

Change (%)

FY22 new

Revenue

- Digital Trust

128.1

124.0

(3.3%)

132.6

- Credit Information & Management

71.2

81.9

15.0%

86.8

- Innovation & Marketing Services

84.5

88.4

4.6%

99.0

- Cyber Security

0.0

76.0

N/A

93.3

total

283.8

370.2

30.4%

411.7

EBITDA before non-recurring items

- Digital Trust

34.5

34.3

(0.5%)

37.8

- Credit Information & Management

19.5

24.2

23.9%

26.0

- Innovation & Marketing Services

39.2

39.8

1.4%

45.1

- Cyber Security

10.0

N/A

14.9

- Other (Parent Company)

(9.2)

(12.0)

29.9%

(13.2)

total

83.9

96.2

14.6%

110.6

EBITDA margin

- Digital Trust

26.9%

27.7%

28.5%

- Credit Information & Management

27.4%

29.5%

30.0%

- Innovation & Marketing Services

46.4%

45.0%

45.5%

- Cyber Security

N/A

13.2%

16.0%

total

29.6%

26.0%

26.9%

Source: Edison Investment Research

Valuation: Well-supported by DCF

Our DCF-based valuation points to a share price of €27, upside of c 17% to the current share price, using a WACC of 7% and terminal growth rate of 2%. In the DCF we assume 5% revenue growth for FY24 and FY25, post management’s new three-year business plan, before a quick fade down to 2% revenue growth thereafter, and we hold the EBITDA margin flat at 27.9% from FY23.

On our upgraded forecasts, at the current share price Tinexta’s EV/sales multiple for FY21e is 3.1x, which is in line with its previous all-time high achieved in a non-COVID-affected year, ie FY19. The P/E multiple for FY21e of 20.9x is at a premium to the multiples achieved in more recent years except FY20, which was heavily affected by COVID, but below the multiples on which it traded in the formative years of the group. We believe that Tinexta’s improved growth outlook, higher profitability and free cash flow generation following the change in structure of the group warrants a higher valuation.

Exhibit 4: Tinexta’s EV/sales multiple (x)

Exhibit 5: Tinexta’s PE multiple (x)

Source: Tinexta, Edison Investment Research, Refinitiv

Source: Tinexta, Edison Investment Research, Refinitiv

Exhibit 4: Tinexta’s EV/sales multiple (x)

Source: Tinexta, Edison Investment Research, Refinitiv

Exhibit 5: Tinexta’s PE multiple (x)

Source: Tinexta, Edison Investment Research, Refinitiv

Exhibit 6: Financial summary

€m

2016

2017

2018

2019

2020

2021e

2022e

Year end 31 December

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

INCOME STATEMENT

Revenue

 

 

146.9

174.8

238.7

258.7

269.0

370.2

411.7

Operating costs

(135.9)

(172.1)

(181.9)

(187.8)

(274.0)

(301.1)

EBITDA before non-recurring costs

 

 

30.2

38.9

66.6

76.8

81.2

96.2

110.6

EBITDA

 

 

29.3

40.6

66.0

71.3

77.9

96.2

110.6

Normalised operating profit

 

 

23.5

29.9

54.3

59.0

62.2

75.5

88.9

Amortisation of acquired intangibles

(5.1)

(4.6)

(5.8)

(5.9)

(6.0)

(6.0)

(6.0)

Exceptionals

(1.0)

1.8

(0.6)

(5.5)

(3.3)

0.0

0.0

Share-based payments

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Reported operating profit

17.4

27.1

47.9

47.5

52.9

69.5

82.9

Net Interest

(1.0)

1.5

(2.5)

(4.1)

0.6

(2.0)

(2.0)

Joint ventures & associates (post tax)

0.0

0.0

0.1

(1.1)

(1.0)

0.0

0.0

Exceptionals

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Profit Before Tax (norm)

 

 

22.5

30.7

51.8

53.5

58.6

73.5

86.9

Profit Before Tax (reported)

 

 

16.4

28.6

45.5

42.2

52.5

67.5

80.9

Reported tax

(4.8)

(8.4)

(12.6)

(13.4)

(14.6)

(19.9)

(23.9)

Profit After Tax (norm)

15.9

21.6

36.8

38.3

40.6

51.8

61.3

Profit After Tax (reported)

11.6

20.2

32.9

28.8

37.9

47.6

57.0

Minority interests

(0.1)

(0.1)

(0.6)

(0.6)

(0.6)

(0.8)

(1.0)

Discontinued operations

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Net income (normalised)

15.9

21.6

36.2

37.7

40.0

51.0

60.3

Net income (reported)

11.6

20.1

32.4

28.2

37.3

46.8

56.1

Average number of shares outstanding (m)

37.5

46.6

46.8

47.3

46.1

46.1

46.1

EPS - normalised (€)

 

 

0.42

0.47

0.78

0.80

0.87

1.11

1.31

EPS - normalised fully diluted (€)

 

 

0.42

0.46

0.77

0.80

0.87

1.11

1.31

EPS - basic reported (€)

 

 

0.31

0.43

0.69

0.60

0.81

1.01

1.22

Dividend (€)

0.09

0.14

0.23

0.00

0.26

0.33

0.39

Revenue growth (%)

18.3

19.0

36.6

8.4

4.0

37.6

11.2

EBITDA Margin before non-recurring costs (%)

20.6

22.2

27.9

29.7

30.2

26.0

26.9

Normalised Operating Margin

16.0

17.1

22.8

22.8

23.1

20.4

21.6

BALANCE SHEET

Fixed Assets

 

 

216.4

275.8

307.1

316.7

325.8

436.0

436.3

Intangible Assets

200.7

260.6

272.1

269.9

285.1

398.3

400.5

Tangible Assets

7.1

8.3

8.2

21.2

19.0

16.0

14.1

Investments & other

8.6

6.9

26.8

25.6

21.7

21.7

21.7

Current Assets

 

 

122.6

125.8

143.4

139.4

196.1

146.2

184.2

Stocks

1.0

2.1

1.3

1.1

1.2

1.2

1.2

Debtors

50.9

80.3

86.3

89.8

84.1

115.8

128.7

Cash & cash equivalents

60.4

37.0

35.1

33.6

92.8

11.2

36.3

Other financial assets

6.4

4.3

8.2

6.6

7.3

7.3

7.3

Other

3.9

2.2

12.4

8.2

10.7

10.7

10.7

Current Liabilities

 

 

(89.8)

(102.9)

(194.4)

(160.4)

(154.9)

(177.6)

(186.9)

Creditors

(33.2)

(47.7)

(93.9)

(92.7)

(106.7)

(129.3)

(138.6)

Tax and social security

(1.5)

(6.1)

(0.7)

(2.9)

(5.1)

(5.1)

(5.1)

Short term borrowings

(36.9)

(21.7)

(97.4)

(62.0)

(40.4)

(40.4)

(40.4)

Other

(18.2)

(27.3)

(2.4)

(2.9)

(2.7)

(2.7)

(2.7)

Long Term Liabilities

 

 

(119.2)

(155.5)

(110.8)

(146.2)

(193.2)

(203.2)

(198.2)

Long term borrowings

(100.8)

(123.8)

(70.7)

(107.0)

(150.5)

(160.5)

(155.5)

Other long-term liabilities

(10.2)

(17.5)

(18.2)

(15.8)

(14.3)

(14.3)

(14.3)

Net Assets

 

 

129.9

143.2

145.4

149.4

173.9

201.5

235.4

Minority interests

(0.2)

(0.5)

(3.8)

(3.9)

(4.0)

(4.8)

(5.8)

Shareholders' equity

 

 

129.7

142.7

141.6

145.6

169.8

196.6

229.6

CASH FLOW

Operating cash flow

 

 

20.0

32.2

43.4

55.2

81.6

61.3

77.1

Capex and intangibles

(5.7)

(6.5)

(13.1)

(13.5)

(14.9)

(18.0)

(21.9)

Acquisitions/disposals

(37.0)

(61.1)

(33.2)

(47.5)

(36.1)

(113.0)

0.0

Net interest

(1.0)

(1.5)

(1.4)

(2.5)

(1.9)

(2.0)

(2.0)

Equity financing

48.2

1.1

1.1

1.1

(10.0)

(8.0)

(8.0)

Dividends

(3.8)

(7.0)

(12.1)

(16.4)

(2.2)

(12.0)

(15.0)

Borrowings

19.4

15.2

17.3

23.7

35.4

10.0

(5.0)

Other

1.1

4.2

(3.9)

(1.7)

7.3

0.0

0.0

Net Cash Flow

41.1

(23.4)

(1.9)

(1.5)

59.2

(81.6)

25.1

Opening net debt/(cash)

 

 

48.5

71.2

104.4

124.9

129.1

91.9

182.3

FX

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Other non-cash movements

(63.8)

(9.7)

(18.7)

(2.7)

(22.0)

(8.8)

5.0

Closing net debt/(cash)

 

 

71.2

104.4

124.9

129.1

91.9

182.3

152.2

Source: Tinexta accounts, Edison Investment Research


General disclaimer and copyright

This report has been commissioned by Tinexta and prepared and issued by Edison, in consideration of a fee payable by Tinexta. Edison Investment Research standard fees are £49,500 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2021 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

General disclaimer and copyright

This report has been commissioned by Tinexta and prepared and issued by Edison, in consideration of a fee payable by Tinexta. Edison Investment Research standard fees are £49,500 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2021 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

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