Logo Yazilim Sanayi Ve Ticaret A.s. · BIST:LOGO
Logo Yazilim Sanayi Ve Ticaret A.s — Logo Yazılım Sanayi ve Ticaret A.Ş. — AGCO EMEFM Virtual Investor Conference (October 2021)
41 slides from Logo Yazilim Sanayi Ve Ticaret A.s's conference presentation, Oct 27, 2021
Slide 1: AGCO EMEFM Virtual Investor Conference Presentation
AGCO EMEFM Virtual Investor Conference Presentation Giilnur Anlas CFO Canan Senkut IR Director October 27', 2021
Slide 2: 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 reflected in th
Slide 3: Logo at a glance
Logo at a glance Enterprise = Application Local leader Active in Software (EAS) in Turkey and = India Romania through a JV Compan IFRS revenue Recurring Growing SaaS _ CAGR 2020 @ revenue base business — in 2010-2020 revenues ata migiaegese Dedicated 1.200+ 44% 5-000+ R&D spending f employees ff wom
Slide 4: Key investment highlights
Key investment highlights Zoq we ca rie Solid growth Leading provider of EAS solutions tL © High profitability Extensive © product suit += @ Latest technology Largest business partner 22m network in Turkey / 800+ International expansion in emerging markets Most valuable IT brand* he © Ay jogo » | ,
Slide 5: Logo Yazılım San. ve Tic. A.Ş. group 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% 88% 100% 50% ABS SRL ABS Financial Logo Financi
Slide 6: Company history and milestones
1986 1999 2000 1984 1996 2000 2004 2006 2011 2013 2016 2008 2013 2015 2016 2017 2019 2016 2017 2018 2020 6
Slide 7: Market size and share
CAGR 3.1% 372 Other; 26% Logo; 24% 355 2019** 341 330 Microsoft; 319 323 5% SAP; 45% 2019 2020E 2021E 2022E 2023E 2024E
Slide 8: 60+ solutions one-stop-shop for companies of all sizes
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 Management Tools 35+ years o
Slide 9: Competitors positioning
Employees #Firms Positioning Competitors Volumes Revenues 1.5k 12.3k 300k 2.4m 2.7m • • • 1 2-3 4 • • •
Slide 10: Partner model and sales process
Partner 1 Partner 2 • R&D Product Initial Sales Marketing Sales (to customers) Following • Development Sales • Cross - Sales • Support Logo Coin • Membership • Services Tiger Go Start 10
Slide 11: Extensive distribution network, robust product suite
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 > 35yrs of legislations and business 5,000 sales and implementation presence practices team members ◉ Lower total cost of ownership ◉ All BPs e
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 ; leader in pays new features e-government ‘maintenance added in 2020 solutions 71,000 - Customers (end-H121) 28% a Yersion rg "59% releases Logo coin © New features e-archive revenue CAGR in ©
Slide 13: eLogo
Market leader in e-government solutions; e-invoice, e-archive, e-ledger, e-dispatch with 56K customers # of customers ('000) eLogo invoiced revenues (TL mn) CAGR: 53% CAGR: 49% 158 56 107 85% 32 18 32 38 56 66% 10 14 68% 66% 74% 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 coin revenues module&
Slide 14: Total Soft: Financial Services and verticals
25 years Financial Trade Services Energy Manufacturing 800 Services Constructions Healthcare Agriculture application software 14
Slide 15: Robust product suite and superior service quality
1 2 3 Robust product suite & Strong brand Project management superior service quality know-how ◉ Charisma Business Suite; core being ◉ Trusted brand with >25 yrs of ◉ Development of best of breed ERP and Human Capital presence solutions together w/ vertical Management (HCM) leaders ◉ 1st place in Ro
Slide 16: Research and Development
Research and Development Evolving from content Meeting new user richness approach to Mobile and Compliance with generation’s expectations 8 —_ usability and accessibility web usage e-gov't processes Customer centric design approach Machine Learning aPaas for ERP All products with the enabled documen
Slide 17: Software ecosystem on cloud infrastructure
Software ecosystem on cloud infrastructure; enabling all Logo business partners and solutions partners to develop products that work in sync with core ERP
Slide 18: India: Logo CaptainBiz
✓ 383% growth y/y Logo CaptainBiz Logo CaptainBiz is GSTN is a mobile approved solution ✓ Only 8 solutions are Only 4 solutions are high service quality approved by the Goods mobile among the 8- and Services Tax GSTN-approved ✓ easy upgradability Network (GSTN) of India solutions ✓ Value creation on
Slide 19: Logo's new asset complementing its HR solutions
Logo’s new asset complementing its HR solutions
Slide 20: Turkey's digital airline using Logo solutions since 2008
Turkey’s digital airline is using Logo’s solutions since 2008 20
Slide 21: Customer case studies
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’s need: • Managing distributors’ sa
Slide 22: Employees and ESG indicators
+ + + + 1,233 44% 45% 79 35 Employees Women Women in Employee Average age employees executive engagement of employees management index score (TR) + + + 78% 24% 50% 9,22/10 100% of employees R&D spending/ of Board is Corporate of e-waste works in invoiced independent Governance recycled in TR softwar
Slide 23: 9M 2021 results
A) logo 9M 2021 results
Slide 24: Ongoing strong performance in Q3
▪ Ongoing strong performance in Q3 ▪ Revenue growth combined with efficiency ensure the upward trend in revenue and EBITDA per employee ▪ Recurring revenues grew in all categories reaching 63% of invoiced sales ▪ Turkey; ▪ Revenues increased by 49% with healthy new customer acquisitions, increased s
Slide 25: Q3 revenues, EBITDA and net income
Revenues (TL mn) EBITDA (TL mn) Net Income (TL mn) 41% 60% 55% 169 40% 29% 120 35% 67 26% 49 42 31 Q320 Q321 Q320 Q321 Q320 Q321 • Revenues grew by 41% y/y reaching 169 TL mn, with Turkey and Romania operations contributing 67% and 33% respectively. • EBITDA increased by 60% y/y, yielding 40% margin
Slide 26: 9M revenues, EBITDA and net income
Revenues (TL mn) EBITDA (TL mn) Net Income (TL mn) 44% 62% 103% 486 42% 35% 37% 203 168 339 24% 125 83 9M20 9M21 9M20 9M21 9M20 9M21 • Revenues up by 44%y/y, reaching 486 TL mn, with Turkey and Romania operations contributing 67% and 33% respectively • EBITDA up by 62% y/y, reaching 203 TL mn yieldi
Slide 27: Free cash flow, cash and EPS
Cash & Financial Investments (TL mn) Strong FCF – LTM (TL mn) 26% 406 26% 322 90 60 65 51 262 316 2020 9M21 9M20 9M21 Cash and Cash Eq. Financial Investments (ST<) EPS (LTM)* growth 78% 2,07 1,16 9M20 9M21 *Adjusted by 3.22% treasury shares (9M20: 3.48%)
Slide 28: Logo Turkey revenues, EBITDA, net income
Logo Turkey-Revenues (TL mn) Logo Turkey-EBITDA (TL mn) Logo Turkey-Net Income (TL mn) 49% 63% 86% 325 51% 46% 56% 166 47% 217 47% 56% 150 37% 48% 102 42% 113 45% 39% 81 77 34 54 47 30 Q320 Q321 9M20 9M21 Q320 Q321 9M20 9M21 Q320 Q321 9M20 9M21 • Revenues increased by 49% y/y with healthy new custom
Slide 29: Market leader in e-government solutions with 80K customers
Market leader in e-government solutions; e-invoice, e-archive, e-ledger, e-dispatch with 80K customers # of customers ('000) eLogo invoiced revenues (TL mn) CAGR: 53% CAGR: 49% 65% 80 24 56 49 32 37 10 14 18 134 10 18 11 70 21 28 38 2016 2017 2018 2019 2020 9M20 9M21 2016 2017 2018 2019 2020 coin us
Slide 30: Logo İşbaşı basic accounting and e-invoicing
Offering basic accounting software and e-invoicing services # of users ('000) 27 24 21 18 20 User growth: 16 15 383% y/y 13 12 10 7 8 ARPU*: 313 TL 4 6 3 3 2 2 2 1 1 2 LTV/CAC**: 25 ✓ easy upgradability ▪ ▪ ➔ ✓ leading e-invoice provider ▪ high service quality ✓ Value creation on digital platform *A
Slide 31: Total Soft revenues, gross profit, EBITDA
Total Soft–Revenues (TL mn) Total Soft–Gross profit (TL mn) Total Soft–EBITDA (TL mn) 33% 29% 46% 59% 23% 162 48% 30% 33% 75 78% 37 121 19% 58 45% 24% 23 44% 18% 56 25 14 43 19 8 Q320 Q321 9M20 9M21 Q320 Q321 9M20 9M21 Q320 Q321 9M20 9M21 Total Soft-Net Income (TL mn) • Revenues grew by 33% y/y and
Slide 32: Third quarter invoices and IFRS revenues
Third Quarter Invoices & IFRS Revenues (TL mn) IFRS Revenues = Invoices - Net Deferrals 169 172 Invoices 137 120 • Q3 sales invoice growth was 26% y/y 92 90 77 75 • IFRS Revenue growth was 41%y/y in Q3 57 52 35 31 38 28 Q315 Q316 Q317 Q318 Q319 Q320 Q321 Invoiced Revenues (TL mn) CAGR: 32% • In Turk
Slide 33: Consolidated recurring invoices
Consolidated Recurring Invoices (TL mn) • LEM revenues increased by 22% y/y CAGR: 40% • Pay as you go revenues increased by 55% y/y with strong coin sales 384 39% 312 • Maintenance revenues increased by 26% y/y with 257 significant contribution from Total Soft 224 180 135 • Retail SaaS revenues incr
Slide 34: Cost of sales as % of IFRS revenue
Consolidated (TL mn) – As % of IFRS Revenue Total Soft (TL mn) – As % of IFRS Revenue 20% 20% 52% 54% 486 162 339 121 87 63 41% 96 37% 68 9M20 9M21 9M20 9M21 Revenue Cost of Sales Revenue Cost of Sales
Slide 35: OpEx, R&D, S&M, G&A as % of revenue
OpEx (TL mn) – As % of IFRS Revenue R&D Expenses (TL mn) – As % of IFRS Revenue 57% 50% 25% 24% 486 486 339 339 244 39% 191 28% 117 84 9M20 9M21 9M20 9M21 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 18% 14% 14% 12% 486 486
Slide 36: R&D spending as % of invoices
R&D Spending (TL mn) – As % of Invoices 33% 35% 200 30% 30% 30% 27% 27% 27% 30% 24% 150 25% 45% 146 146 20% 100 123 15% 99 101 77 10% 50 57 5% 41 0 0% 2015 2016 2017 2018 2019 2020 9M20 9M21 R&D Spending (TLmn) - LHS R&D Spending/Invoices -RHS
Slide 37: Balance sheet highlights and working capital
Balance Sheet Highlights (TL mn) Working Capital (TL mn) 2020 9M21 ∆ Cash & Cash Eq. 261,6 316,4 21% 400 Trade Receivables 235,7 222,5 -6% 50% 44% 350 41% Tangible Assets 19,3 19,2 -1% 36% 300 40% 33% 34% Intangible Assets* 470,2 548,8 17% 28% 250 Other Assets 110,7 143,8 30% 30% 23% 26% 200 Total A
Slide 38: 2021 guidance
2020 2021 guidance Invoiced Revenue (TL mn) +31% 179 560 226 802 615 16 429 6 IFRS Revenue (TL mn) +33% 226 15 728 179 6 545 489 361 EBITDA** (TL mn) +47% 221 260 30 177 43 -8 150 -8 Margins 41% 17% n.m. 33% 45% 19% n.m. 36% EBT (TL mn) +66% -11 190 11 196 118 4 -9 118 Margins 33% 2% n.m. 22% 39% 5%
Slide 39: Appendix
Appendix
Slide 40: Invoice revenues one-time and recurring
2016 2017 2018 2019 2020 4-yr-CAGR Invoice revenues (TL mn) 175,8 259,1 333,0 460,1 617,7 37% One-time 91,6 123,6 152,5 203,0 233,5 26% share in total 52% 48% 46% 44% 38% Recurring 84,1 135,5 180,5 257,2 384,2 46% share in total 48% 52% 54% 56% 62% Recurring invoice revenues (TL mn) LEM 46,2 61,4 75
Slide 41: Thank you
Thank you
Logo Yazılım Sanayi ve Ticaret A.Ş. — AGCO EMEFM Virtual Investor Conference (October 2021) on 6ix