Ard Grup Bilisim Teknolojileri As · BIST:ARDYZ

Ard Grup Bilisim Teknolojileri As — Q2 2023 Earnings Presentation

37 slides from Ard Grup Bilisim Teknolojileri As's earnings presentation, Sep 18, 2023

  1. Slide 1: Investor Presentation 2Q 2023 Figures

    1 INVESTOR PRESENTATION 2Q 2023 FIGURES 18.09.2023

  2. Slide 2: Headlines, Summary, Financials, Investment Thesis, Appendix

    2 01 02 03 04 05 Headlines Summary Financials Investment Appendix Thesis Page 3 Page 4 Page 8 Sayfa 28 Page 30

  3. Slide 3: Key figures: net sales, EBITDA, net income, market cap

    Net Sales, m₺ EBITDA, m₺ Net Income, 3 254 Net Sales mTL Annualy* %65 Growth 700,0 600,0 Gross Margin 78% 69% 90% 80% 450,0 400,0 61% 62% 61% 450,0 400,0 m₺ 60% 61% 60% 59% 01.01.2022-30.06.2023 financial period 63% 70% 350,0 350,0 60% 500,0 58% 300,0 177 300,0 60% EBITDA 400,0 50% 250,0 59% 250,0 5

  4. Slide 4: 2Q 2023 Headlines

    2Q 2023 HEADLINES 4 Capital Yield: 49% of ROE* Beating Market Interest Rate Financials: Growth Gains Acceleration in Q1 Leverage: Low Indebtedness Creates Significant Borrowing Capacity Affiliate Acquisition: 60% of Argedor Bilişim acquired for 1.8 mn USD * Return on Equity

  5. Slide 5: Executive Summary

    EXCUTIVE SUMMARY 5 Despite the rising sales between 2019 and 2021, the decline in the working capital to sales indicates efficiency. However, the Leverage relative increase in the working capital requirement in 2022 draws attention. However, while the rise in working capital needs is noted in 2023/0

  6. Slide 6: Subsidiaries

    SUBSIDIARIES 6 SubsıdIarIes Company's Capital Title Capital Business Overview Share Virtual Reality (“VR”) platforms, Artificial Intelligence (“AI”) algorithms, Big Data Processing (“Big Data”) are used in planning, execution, monitoring, forecasting and Açılımsoft Yazılım Teknolojileri A.Ş. 3.000.0

  7. Slide 7: Headlines, Summary, Financials, Investment Thesis, Appendix

    7 01 02 03 04 05 Headlines Summary Financials Investment Appendix Thesis Page 3 Page 6 Page 8 Page 28 Page 30

  8. Slide 8: Partnership Structure

    PARTNERSHIP STRUCTURE 8 Board of Directors Name and Surname Title Arda Ödemiş (ARD Grup Holding AŞ Adına) Chairman of the Board Deputy Chairman of the Board of Doğan Ödemiş Directors Ard Grup Holding Anonim Gürkan Bilgin Board Member Şirketi 25,13% Sabri Çağrı Çakır Board Member Other 68,74% Nükhet

  9. Slide 9: Headlines, Summary, Financials, Investment Thesis, Appendix

    9 01 02 03 04 05 Headlines Summary Financials Investment Appendix Thesis Page 3 Page 6 Page 8 Page 28 Page 30

  10. Slide 10: Solid Performance

    10 SOLID PERFORMANCE 2023/06 & 2022/06 PERIODICAL 2Q23 & 2Q22 QUARTERLY REVENUE 127,7% 64,5% 39,8% GROWTH EBITDA * 89,0% 72,4% GROWTH NET INCOME 103,5 96,1% GROWTH EBITDA* 69,6% 71,5% MARGIN *Other Income / Expense from Operating Activities are included in EBITDA

  11. Slide 11: 2Q 2023 Results: Sales Gained Momentum in Q2

    11 2Q 2023 RESULTS Sales Gained Momentum in Q2 QUARTERLY FIGURES Net Satış (mTL) 180 ➢ Net sales raised by 39,8% on a quarterly basis compared to the same period of the previous year and amounted to 166,1 m 166,1 160 TL. 140 120 118,8 100 80 60 40 20 0 2Ç22 2Ç23

  12. Slide 12: 2Q 2023 Results: Improvement in Sales Supported Profitability

    12 2Q 2023 RESULTS Improvement in Sales Supported Profitability QUARTERLY FIGURES Net Income (mTL) EBITDA (mTL) 140 75,7% 71,5% 140 120 120 118,7 125,8 100 100 80 58,0% 54,0% 80 60 68,8 60 64,1 40 40 20 20 0 0 2Q22 2Q23 2Q22 2Q23 ➢ EBITDA improved by 72,4% QoQ to 118,7 mTL, while the ➢ Net profit in

  13. Slide 13: 2Q 2023 Results: High Inflation Affects the Sales

    13 2Q 2023 RESULTS High Enflation Affects the Sales PERIODICAL FIGURES Net Sales (mTL) ➢ Net sales raised by 64,5% on a yearly compared to the same 300 period of the previous year and amounted to 254,3 m TL. 250 254,3 200 150 154,5 100 50 0 6M22 6M23

  14. Slide 14: 2Q 2023 Results: Improvement in Sales Supported Profitability

    14 2Q 2023 RESULTS Improvement in Sales Supported Profitability PERIODICAL FIGURES Net Income (mTL) EBITDA (mTL) 69,6% 200 68,1% 200 180 180 160 173,2 160 176,9 140 140 120 60,6% 55,1% 120 100 100 80 80 93,6 85,1 60 60 40 40 20 20 0 0 6M22 6M23 6M22 6M23 ➢ EBITDA improved by 89,0% YoY to 176,9 mTL,

  15. Slide 15: The Rise in Sales and Low Opex Supported EBITDA

    15 2Q 2023 RESULTS The Rise in Sales and Low Opex Supported EBITDA ➢ The rising revenue and margins and low opex supported EBITDA. ➢ R&D expenditures create expectations for EBITDA growth in the coming period. ∆ : Change

  16. Slide 16: Sustainable Net Income Growth Continued

    16 2Q 2023 RESULTS Sustainable Net Income Growth Continued ➢ The rise in net profit continued thanks to the factors supporting the EBITDA growth. ➢ Increasing R&D investments and the change in working capital put downward pressure on the cash position. This situation created the net financing cost.

  17. Slide 17: 655,1 mTL of Annualized Revenue in 2023/06

    17 2Q 2023 RESULTS 655,1 mTL of Annualized Revenue in 2023/06 ANNUAL NET SALES DEVELOPMENT (mTL) 101% CAGR* 18% 99,6% 655,1 2019– 2023/06 122,2% 555,3 120,6% 2019 2020 2021 2022 2023/06 *CAGR : Compounded Annual Growth Rate Total Sales TL M

  18. Slide 18: 402,2 mTL of Annualized EBITDA in 2023/06

    18 2Q 2023 RESULTS 402,2 mTL of Annualized EBITDA in 2023/06 ANNUAL EBITDA DEVELOPMENT (mTL) 105% CAGR* 26,1% 97,2% 402,2 2019– 2023/06 117,3% 318,9 161,7 74,4 129,3% 32,5 2019 2020 2021 2022 2023/06 *CAGR: Compounded Annual Growth Rate EBITDA TL M

  19. Slide 19: Working Capital to Sales Will Be Normalised At the End of the Year

    19 2Q 2023 RESULTS Working Capital to Sales Will Be Normalised At the End of the Year Working Capital Working Capital Working Capital Analysis 700 62,3% 70% 66,2% 600 60% 38 mTL 2019 2020 2021 2022 2023/06 500 78 50% Trade Receivables 40,9 62,6 116,1 462,1 528,8 400 44,9% 40% Inventory + Other Curre

  20. Slide 20: Decline in Trade Payables Increased Working Capital

    20 2Q 2023 RESULTS Decline in Trade Payables Increased Working Capital ➢ In the second quarter of 2023, there is an improvement in the working capital with the inventories, while the sharp decline in the commercial debts put an upward pressure on the working capital. ➢ Working capital increased from

  21. Slide 21: Low Debt Ongoing

    21 2Q 2023 RESULTS Low Debt Ongoing Net Cash Position Net Debt/EBITDA 150 0,4 Net Cash & Equity & Financial Leverage 0,3 128,6 0,3 TLm 2019 2020 2021 2022 2023/06 100 Cash and Cash Equivalents 1,7 27,3 64,0 24,6 22,9 0,2 0,2 Financial Investments - - - 41,2 0,0 Net Cash/EBITDA 0,1 Other Receivables

  22. Slide 22: Foreign Exchange Position and Credit Maturity Breakdown

    22 2Q 2023 RESULTS Foreign Exchange Position Credit Maturity Breakdown 50 16,0% 14,5% 14,0% 40 12,0% 30 10,0% 3-12 Mounth 27% 46,93 8,0% 0-3 Mounth 20 69% 6,0% 10 4,0% 1-2 Year 4% 2,05 2,0% 0 0,3% -5,77 0,0% -10 -0,7% -2,0% 2021/12 2022/12 2023/06 Foreign Exchange Position Foreign Exchange Position

  23. Slide 23: Investments and Seasonality

    23 2Q 2023 RESULTS Most of the Increase in Investments in 2023/06 is Resulting from the Purchase of Subsidiary Investments (mTL) Seasonality (mTL) 200 60,0% 120% 350 180 51,3% 50,0% 96% 160 100% 300 170,4 89% 140 41,5% 83% 85% 250 40,0% 80% 75% 67% 61% 53% 70% 120 34,7% 81% 83% 200 31,1% 77% 100 30,

  24. Slide 24: 49,3% ROE Well Above Interest Yield

    24 2Q 2023 RESULTS 49,3% ROE Well Above Interest Yield ➢ The liquidity level of the balance sheet continued 1.000 ROE to increase with each period. 800 2023/06 49,2% ➢ The return on equity is above the bond yield, indicating that the capital is being used efficiently. Equity (TLm) 600 ➢ Low indebted

  25. Slide 25: Financial Ratios

    25 2Q 2023 RESULTS Financial Ratios Liquidity Ratios 2023/06 2021/12 2020/12 Reference Current Ratio 3,07 2,24 5,53 1,0-1,5 Liquidity Ratios 3,00 2,19 5,40 0,8-1,0 Investment Ratios (12M Trailing) 2023/06 2021/12 2020/12 Reference Investment/Depreciation 355,0% 759,3% 653,2% >%100 Investment/Net Sal

  26. Slide 26: Financial Ratios

    26 2Q 2023 RESULTS Financial Ratios Debt Ratios 2023/06 2021/12 2020/12 Reference Total Debt/Total Assets 19,7% 29,4% 10,1% <%40 Short-Term Fin. Debt/Equity 15,3% 9,3% 1,7% <100% Coverage Ratio 33,1 241,2 -79,8 >3 Net Debt/EBITDA 0,3 0,0 -0,3 <4 Short-Term Liabilities/Assets 19,0% 28,3% 9,4% Sector

  27. Slide 27: Financial Ratios

    27 1Q 2023 RESULTS Financial Ratios Profitability Ratios (12MTrailing) 2023/03 2021/12 2020/12 Reference Gross Margin 62,8% 62,8% 77,5% Sector EBIT Margin 53,6% 53,3% 53,8% Sector EBITDA Margin 58,0% 57,4% 58,1% Sector Net Margin 54,5% 55,2% 54,4% Sector ROE 49,1% 48,7% 46,6% >Bond Yield ROA 34,2% 3

  28. Slide 28: Share Performance

    28 2Q 2023 RESULTS Share Performance (TL) Mcap (TL) 22 4.000 3.440,8 mn TL 20,24 ₺ million TL 20 15.09.2023 3.500 18 16 3.000 14 2.500 12 2.000 10 8 1.500 6 1.000 4 500 2 0 0 ➢ High share return for the investors from the date of the public offering until today ➢ Strong financial figures and corpora

  29. Slide 29: Headlines, Summary, Financials, Investment Thesis, Appendix

    29 01 02 03 04 05 Headlines Summary Financials Investment Appendix Thesis Page 3 Page 6 Page 8 Page 28 Page 30

  30. Slide 30: Investment Thesis

    30 2Q 2023 RESULTS Investment Thesis Rising software expenditure all over the world with the pandemic makes the sector strategic; R&D and Technocity incentives and low tax rate; Being one of the fastest growing technology companies in Turkey by the Deolitte Technology Fast 50 Turkey since 2016; Low

  31. Slide 31: Headlines, Summary, Financials, Investment Thesis, Appendix

    31 01 02 03 04 05 Headlines Summary Financials Investment Appendix Thesis Page 3 Page 4 Page 8 Page 28 Page 30

  32. Slide 32: Appendix

    32 APPENDIX

  33. Slide 33: Balance Sheet and Income Statement

    33 2Q 2023 RESULTS 2022/12 2023/06 Balance Sheet (TL) 2022/06 2023/06 2022/09-2021/09 Audited UnAudited Income Statements (TL) Assets 891.473.629 1.012.147.763 Unaudited Unaudited Change (%) Cash & Cash Equivalent 24.646.077 22.890.847 Net Sales 154.549.182 254.287.823 (39,2%) Current Financial Inve

  34. Slide 34: Milestones of Ard Group

    34 MILESTONES OF ARD GROUP Public offering of Ard Grup Dellmeier Turkiye Elektronik With the change of type, the Information Technologies on San. Tic. AŞ and ARDTECH company title was changed to February 6, 2020 LTD in England were ARD GROUP BİLİŞİM established TEKNOLOJİLERİ A.Ş. Establishment of En

  35. Slide 35: Ard Group structure

    ARD GROUP & ARDENERII UP ENERUI ILAGSAN. VETIC. AS. ‘ARO GRUP ENERI wy SAN.VETIC.AS. % 100 * (1.000.000 TL) ARDHOLDING (1.000.000 7 oy ‘ABD DANISMANUK [ARD GRUP PROJE YONETIM ARDBLISIM ARD GRUP BitisiM TEKNOLOJILERI AS. DANISMANLIKA.S. % 25,13 %100 (170.000.000 TL ) (1.000.000 TL) & & DRONSAAT ARDSA

  36. Slide 36: Disclaimer

    36 DISCLAIMER This presentation contains information relating to ARD GROUP INFORMATION TECHNOLOGIES INC. (“ ARD INFORMATICS ”) that may not be redistributed, reproduced, published, or passed on to any other person or used in whole or in part for any other purpose. By accessing this document you agre

  37. Slide 37: Investor Relations Contacts

    37 INVESTOR RELATIONS CONTACTS Semih Kökden Investor Relation Manager T: 0 312 299 25 95 investor.relations@ardgroup.com.tr THANK YOU For detailed information, please contact us by e-mail investor.relations@ardgroup.com.tr

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