Logo Yazilim Sanayi Ve Ticaret A.s. · BIST:LOGO
Logo Yazilim Sanayi Ve Ticaret A.s — Investor Presentation (May 2020)
36 slides from Logo Yazilim Sanayi Ve Ticaret A.s's investor presentation, May 2020
Slide 1: Investor presentation May 2020
Investor presentation May 2020
Slide 2: Disclaimer
Disclaimer This presentation contains information and analysis on financial statements as well as forward-looking statements that reflect Logo management’s current views with respect to certain future events. Although it is believed that the information and analysis are correct and expectations refl
Slide 3: Logo at a glance
Logo at a glance Enterprise Application Local leader Active in Software (EAS) in Turkey and India Company Romania through a JV 41% 56% IFRS revenue 422 mn TL Recurring Growing SaaS CAGR 2019 revenue base business in 2009-2019 revenues Dedicated 1.200+ 44% 5.000+ 90.000+ R&D spending employees women
Slide 4: Key investment highlights
Key investment highlights Solid growth Leading provider of EAS solutions High profitability Extensive product suit Latest technology Largest business partner network in Turkey / 800+ International expansion in emerging markets Most valuable IT brand* * Brand Finance Turkey www.logo.com.tr 4
Slide 5: Shareholder structure
Shareholder structure Logo Teknoloji Freefloat* ve Yatırım A.Ş. 66.37% 33.63% Logo Yazılım San. ve Tic. A.Ş. Logo Infosoft Logo KOBİ Dijital ELBA HR Total Soft S.A. Logo Elektronik Business Technology Hizmetler A.Ş. (Peoplise) 80% Ticrate Hizmetleri A.Ş. Private Ltd. 100% 86.70% 100% 50% ABS SRL ABS
Slide 6: Logo milestones
Logo milestones First-ever 20th year- Leader in Turkish Enterprise software software Applications- IPO in market w/ 1 Establishment 1986 Windows 1999 Turkey 2000 mn+ users 1984 Enterprise 1996 Logo 2000 Software 2004 Applications ERP Development - DOS Center @ Gebze R&D leader Mediterra Acquisitions
Slide 7: Turkish EAS market and Logo market share
Turkish EAS market and Logo market share Turkish EAS market is expected to have robust growth* ($mn) CAGR 5.1% Other; Logo; 386 405 26% 24% 367 349 332 302 316 2017** 269 Microsoft; 8% SAP; 2015 2016 2017 2018E 2019E 2020E 2021E 2022E 43% SMEs lead software market growth Government push for digitali
Slide 8: Extensive product suite
Extensive product suite Human Resources Enterprise Warehouse Resource Management Planning 60+ solutions Customer Environment Relationship Health and Safety Management Management Vertical Logo Solutions apps One-stop-shop for companies of all sizes Field B2B Sales Management Customisation Retail Mana
Slide 9: Logo Turkey's product portfolio from micro to large corporates
Logo Turkey’s product portfolio from micro to large corporates Employees #Firms Positioning Competitors Large Volumes Revenues (500+) 1.5k 1 Medium (100–499) 12.3k 2 Logo’s highest revenue contribution Small (10–99) 300k Logo’s highest 3 volume contribution Micro (<10) 2.4m 4 Total 2.7m 1 • Higher p
Slide 10: Logo Turkey sales cycle
Logo Turkey sales cycle Partner 1 Customers Partner 2 • User increments R&D Product Initial Sales Following Marketing Development Sales (to customers) Sales • Modules • 3rd party Cross - Sales • CRM / BI / WMS / BPM Support Logo Coin • e-Services (e-invoices etc.) Membership • LEM Tiger Invoice Invo
Slide 11: Competitive advantages of Logo Turkey
Competitive advantages of Logo Turkey 1 2 3 Robust product suite Extensive distribution Strong brand network ◉ Best suited to local market ◉ Large network of 800+ BPs and c. ◉ Trusted brand with >30yrs of legislations and business 5,000 sales and implementation presence practices team members ◉ Lowe
Slide 12: Major recurring revenue streams of Logo Turkey
Major recurring revenue streams of Logo Turkey LEM – Logo Enterprise Membership Pay as you go – Logo coins Market 4000 leader in License new features 32,000+ e-government customers maintenance added in 2019 solutions Version 43% 28% e-invoice Logo Coin releases Revenue Revenue New features e-archive
Slide 13: eLogo: e-services platform and leader in digital transformation
eLogo: e-services platform and leader in digital transformation Market leader in e-government solutions; e-invoice, e-archive, e-ledger, e-dispatch with 38K+ customers # of customers ('000) coin usage (mn) CAGR: 46% CAGR: 43% 38 213 32 134 18 104 10 14 73 2016 2017 2018 2019 1Q20 2016 2017 2018 2019
Slide 14: Logo Total Soft - Romania
Logo Total Soft - Romania 25 years of Financial Trade experience Services Energy Manufacturing Over 800 clients Services Constructions Expertise in business Healthcare Agriculture application software development & implementation across various industries www.logo.com.tr 14
Slide 15: Competitive advantages of Logo Total Soft
Competitive advantages of Logo Total Soft 1 2 3 Robust product suite & Strong brand Project management superior service quality know-how ◉ Charisma Business Suite; core being Trusted brand with >20 yrs of ◉ Development of best of breed ◉ ERP and Human Capital presence solutions together w/ vertical
Slide 16: Research and Development
Research and Development Evolving from content Meeting new user richness approach to Mobile and Compliance with generation’s expectations usability and accessibility web usage e-gov’t processes approach Customer centric All products on All products with the design one platform same design approach w
Slide 17: Logo Cloud Portal
Logo Cloud Portal Software ecosystem on cloud infrastructure; enabling all Logo business partners and solutions partners to develop products that work in sync with core ERP LOGO ERP Core application Micro End services user portal Logo solution providers ISV App1 3 rd parties App2 Partner ECO system
Slide 18: MicroSME digitalization
MicroSME digitalization Turkey India SaaS solution Logo İşbaşı’s users reached 36K w/2K Logo Vyapari Logo Vyapari paying is GSTN is a mobile approved solution Very competitive MicroSME segment Only 8 solutions are Only 4 solutions are approved by the Goods mobile among the 8- and Services Tax GS
Slide 19: Peoplise: next generation talent acquisition
Peoplise: next generation talent acquisition Logo’s new asset complementing its HR solutions www.logo.com.tr 19
Slide 20: ERP case study: Pegasus Airlines
ERP case study: Pegasus Airlines Turkey’s digital airline is using Logo’s solutions since 2008 eLogo Logo Connect allows Pegasus process e- ensures seamless invoices within its vast supply connection between the chain network and with core ERP and e-gov’t General Revenue solutions Administration (GI
Slide 21: Case studies for various solutions
Case studies for various solutions Unilever / Barilla / Yaktas / Consumer Goods Pasta Flooring Logo Ocean (warehouse automation) Logo CRM Logo j-Platform (ERP) Logo Tiger 3 Enterprise (ERP) Logo Netsis 3 Standard (ERP) e-gov’t solutions (eLogo) Customer’s need: Customer’s need: Customer’
Slide 22: Corporate governance and sustainability
Corporate governance and sustainability 01 02 03 Corporate BIST BIST governance Corporate Sustainability rating: governance index 9.2/10.0 index member member 2019 since 2009 since 2017 www.logo.com.tr 22
Slide 23: 1Q2020 results presentation
1Q2020 results presentation
Slide 24: Strong performance in 1Q20
Strong performance in 1Q20 Consolidated Revenues (TL mn) EBITDA (TL mn) Net Income (TL mn) 25% 32% 36% 40% 102 20% 34% 36 81 28 18% 21 15 1Q19 1Q20 1Q19 1Q20 1Q19 1Q20 • Revenues grew by 25% reaching 102 TL mn, with Turkey and Romania operations contributing 62% and 38% respectively. • EBITDA increa
Slide 25: Strong Financial Management
Strong Financial Management Consolidated Improved Liquidity Net Cash* (TL mn) Cash and Cash Eq. (TL mn ) 13% 615% 171 152 87 12 1Q19 1Q20 2019 1Q20 * Net cash together with 3.48% treasury shares @Mcap and excluding IFRS impact of 17 TL mn and 15 TL mn for 1Q19 and 1Q20 respectively EPS* growth (LTM)
Slide 26: Update on Covid-19 outbreak's impact
Update on Covid-19 outbreak’s impact All employees well and Logo’s diversified Big ticket sales Agile adaptation to safe working remotely customer base completed during this conditions: keeping since March 17th with no (geography, sector and period and solid sales SG&A in line with disruption in ope
Slide 27: Stellar performance in Turkey
Stellar performance in Turkey Logo Standalone-Revenues (TL mn) Logo Standalone-EBITDA (TL mn) Logo Standalone-Net Income (TL mn) 30% 31% 12% 46% 63 46% 34% 29% 48 29 18 22 16 1Q19 1Q20 1Q19 1Q20 1Q19 1Q20 Logo Turkey Standalone: Logo’s operations in Turkey excluding Logo KOBİ (İşbaşı) and Logo Infos
Slide 28: Significant profitability improvements at Total Soft
Significant profitability improvements at Total Soft Total Soft–Revenues (TL mn) Total Soft–Gross profit (TL mn) Total Soft–EBITDA (TL mn) 16% 17% 34% 38 50% 22% 49% 33 19% 19 8 16 6 1Q19 1Q20 1Q19 1Q20 1Q19 1Q20 Total Soft-Net Income (TL mn) • Revenues grew by 16% y/y and revenue growth in Euros wa
Slide 29: Invoiced Revenue vs IFRS Revenue (Consolidated)
Invoiced Revenue vs IFRS Revenue (Consolidated) First Quarter Invoices & IFRS Revenues (TL mn) IFRS Revenues= 108 Invoices - Net Deferrals 102 Invoices 81 • 1Q sales invoice growth was 42% y/y 76 67 66 54 53 • IFRS Revenue growth was 25%y/y in 1Q 36 26 24 30 22 24 1Q14 1Q15 1Q16 1Q17 1Q18 1Q19 1Q20
Slide 30: Recurring Revenue Growth Ensuring Predictability
Recurring Revenue Growth Ensuring Predictability Consolidated Recurring Invoices (TL mn) • LEM revenues increased by 33% y/y CAGR: 40% 257 • Pay as you go revenues increased by 130% y/y with strong coin sales. Coin customers and coin usage grew by 103% and 125%, respectively 181 135 • Maintenance re
Slide 31: eLogo: e-services platform and leader in digital transformation
eLogo: e-services platform and leader in digital transformation Market leader in e-government solutions; e-invoice, e-archive, e-ledger, e-dispatch with 38K customers # of customers ('000) coin usage (mn) CAGR: 46% CAGR: 43% 103% 38 213 32 134 125% 18 19 104 90 14 73 10 40 2016 2017 2018 2019 1Q19 1
Slide 32: Cost of Sales
Cost of Sales Consolidated (TL mn) – As % of IFRS Revenue Total Soft (TL mn) – As % of IFRS Revenue 22% 20% 51% 50% 102 81 38 33 15% 25% 17 15% 19 18 20 1Q19 1Q20 1Q19 1Q20 Revenue Cost of Sales Revenue Cost of Sales www.logo.com.tr 32
Slide 33: Operating Expenses
Operating Expenses OpEx (TL mn) – As % of IFRS Revenue R&D Expenses (TL mn) – As % of IFRS Revenue 59% 58% 27% 26% 102 102 81 81 59 48 25% 21% 22 27 1Q19 1Q20 1Q19 1Q20 Total Revenue Total Opex Total Revenue R&D Expense S&M (TL mn) – As % of IFRS Revenue G&A (TL mn) – As % of IFRS Revenue 16% 17% 16
Slide 34: Dedicated Investment in Technology
Dedicated Investment in Technology R&D Spending (TL mn) – As % of Invoices 180 40% 35% 160 33% 35% 30% 30% 30% 140 28% 27% 27% 30% 120 123 25% 100 99 20% 80 60 77 22% 15% 40 57 10% 41 5% 20 32 27 33 0 0% 2014 2015 2016 2017 2018 2019 1Q19 1Q20 R&D Spending (TLmn) - LHS R&D Spending/Invoices -RHS www
Slide 35: Strong Balance Sheet
Strong Balance Sheet Balance Sheet Highlights (TL mn) Working Capital (TL mn) 2019 1Q20 ∆ Cash & Cash Eq. 152,2 171,3 13% 270 Trade Receivables 211,2 176,4 -16% 50% 44% 240 41% 41% Tangible Assets 20,0 20,6 3% 36% 210 40% 33% 34% Intangible Assets* 342,2 365,9 7% 29% 30% 180 Other Assets 50,2 52,8 5
Slide 36: Thank you
Thank you
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