Logo Yazilim Sanayi Ve Ticaret A.s. · BIST:LOGO
Logo Yazilim Sanayi Ve Ticaret A.s — Logo Yazılım — Non-Deal Roadshow (December 2015)
32 slides from Logo Yazilim Sanayi Ve Ticaret A.s's roadshow presentation, Dec 8, 2015
Slide 1: İş Yatırım Roadshow Presentation
İş Yatırım Roadshow Presentation Stockholm - Warsaw - London Orhan AYANLAR Board Member Gülnur ANLAŞ Chief Financial Officer December 8-10, 2015
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: Contents
Contents Logo at a Glance Turkey: Macro Review and EAS Market Company Overview Financial Overview Questions & Answers
Slide 4: Logo at a Glance
Logo at a Glance Established in 1984, Logo is the leading provider of Enterprise Application Software for SMEs in Turkey Software Services EAS Procurement & Payment (Enterprise Application Software) e-Commerce, e-Invoice, e-Settlement Accounting, payroll, HR, CRM, BA, etc Q1 Highlights Accounting &
Slide 5: Corporate Statement
Corporate Statement To become the trusted business partner that enables SME’s and mid-sized companies Vision in Turkey to excel in their businesses by providing high value added technology oriented business solutions To enable SME’s and mid-sized companies to do more business more efficiently Missio
Slide 6: Our Strengths
Our Strengths Q1 Highlights Largest Small/Mid Cap Strong customer Extensive distribution One stop shop for client base with perception & brand Best in-class technology network SME’s resilient revenue base name 139 6
Slide 7: Sustainable Competitive Advantage (1 of 2)
Sustainable Competitive Advantage (1 of 2) Logo is clearly positioned as the leading EAS player targeting the SME segment • Logo has a strong and sustainable customer & revenue base: 85,000 active users (largest in the country) • Logo’s products are simpler, easier to implement, adapted to local reg
Slide 8: Sustainable Competitive Advantage (1 of 2)
Sustainable Competitive Advantage (1 of 2) Logo is clearly positioned as the leading EAS player targeting the SME segment • Trusted and well known brand with 30 years presence. Positive perception of Logo products across the board Strong customer • There is potential to vitalize large passive custom
Slide 9: Competitive Positioning
Competitive Positioning Logo is expected to increase its share in the rapidly growing EAS market through the expansion of product range and add-on acquisitions... Employees / Company Positioning Products Competitors Market Share (2014) Large 1.5K (500+) Other 19,7% Medium 12.3K SAP (100-499) Oracle
Slide 10: Key Investment Attractions
Key Investment Attractions 1 Turkey macro story with secular growth: SME growth & EAS penetration story 2 Attractive industry dynamics 3 Sustainable competitive advantage 4 Captive business solutions for SME’s 5 Q1 churn Resilient revenue base, sticky product, low Highlights 6 Expanding recurring re
Slide 11: Strategy
Strategy • Continue to capitalize on the SME growth and penetration opportunity 1 • Become the local champion in key vertical solutions in selected sectors 2 • Take full advantage on the continued E-initiatives of the Government 3 • Further improve revenue resilience through product/service diversif
Slide 12: Contents
Contents Logo at a Glance Turkey: Macro Review and EAS Market Company Overview Financial Overview Questions & Answers
Slide 13: Turkish Macroeconomic Outlook
Turkish Macroeconomic Outlook Turkey is the fastest growing Emerging Europe economy with real GDP projected to grow 3.4% CAGR through 2019... Real GDP Growth (%) Government Debt (as % of GDP) CAGR: 3.4% 46% 43% 40% 38% 37% 35% 33% 3,7% 3,6% 3,5% 3,6% 33% 3,3% 2,9% 3,0% 2,6% 2009 2010 2011 2012 2013
Slide 14: EAS Market Trends
EAS Market Trends Turkey’s IT spending and share of SW spending is one of the lowest among its peers, room for continued growth… PC and Internet Penetration (2005-2016E) IT Spend Breakdown in Various Countries (2014) 68% 64% 58% 60% 52% 52% 55% 22% 20% 13% 17% 50% 32% 31% 23% 31% 46% 42% 7% 9% 44% 1
Slide 15: Contents
Contents Logo at a Glance Turkey: Macro Review and EAS Market Company Overview Financial Overview Questions & Answers
Slide 16: Corporate Structure
Corporate Structure 2000 2013 2000 Logo YATIRIM MEDITERRA CAPITAL HOLDING PARTNERS I, LP* PUBLICLY TRADED 37.1% 37.1% 25.8%*** Logo YAZILIM SAN. ve TIC. A.Ş. Q1 Highlights SEMPA BİLİŞİM Logo BUSINESS Logo BUSINESS Logo ELEKTRONIK INTERMAT BİLİŞİM A.Ş.** VARDAR A.Ş.** A.Ş.** SOFTWARE GMBH SOLUTIONS F
Slide 17: Milestones
Milestones 1984 2015 Logo was established Acquisition of Intermat, by 8 young engineers inclding 1999 2004 a CRM software provider Acquisition of Sempa, 2012 Tuğrul Tekbulut Logo ERP a SCM software provider e-products Acquisition of Vardar 1992 2001 Supply Chain Execution e-State Solutions Yazılım,
Slide 18: Product Offerings
Product Offerings Innovative products that improve company competitiveness • Developing solutions for the coming decades • Providing services for a wide range of industries, including among others, • Retail • Distribution • Production • Tourism • Technology • Marine • Solutions for structuring in li
Slide 19: Growth Through Acquisitions
Growth Through Acquisitions Further acquisitions with strategic value remain in our investment agenda... • Founded in 1995, Coretech is one of the leading technology companies in the field Leading SaaS Coretech of SaaS application retail after 2011 • Introduced SaaS model for the first time in Turke
Slide 20: Leading SaaS Provider in Turkey
Leading SaaS Provider in Turkey • Logo is the leading SaaS provider in Turkey • Acquired major competitors in the market: Diva (Coretech) and Netlite (Netsis) • Dominant player in certain verticals such as retail and after sales services. Potential for a wide range of vertical add-ons: textile, read
Slide 21: Operational Presence
Operational Presence Turkey, Germany, Azerbaijan, United Arab Emirates, Ethiopia, Morocco, Georgia, Iraq, Iran, Kazakhstan, Kyrgyzstan, Kosova, Libya, Egypt Russia, Sudan, Saudi Arabia, Turkmenistan Ukraine, Jordan The leading player in a geography offering unrivaled opportunities • Strong presence
Slide 22: Contents
Contents Logo at a Glance Turkey: Macro Review and EAS Market Company Overview Financial Overview Questions & Answers
Slide 23: Financial Snapshot
Financial Snapshot Consistent record of high growth and high profitability 9M LFL Guidance IFRS (m TL) 9M 14 9M 15 D 9M 14 9M 15 D YE14 YE15 D Revenue 68,9 89,0 29% 70,0 89,0 27% 104,0 120,0 15% EBITDA 30,9 47,6 54% 31,0 47,6 54% 39,6 47,5 20% EBITDA Margin 45% 54% 44% 54% 38% 40% Net Income 21,6 39
Slide 24: Key Financials
Key Financials Third Quarter Sales(m TL) Sales Performance (m TL) CAGR: 50% 29% 40,00 120 34,70 104 35,00 100 89,0 30,00 80 70,7 25,00 68,9 20,87 20,00 60 46,2 14,21 15,00 40 31 10,00 8,52 20,8 5,84 4,12 20 5,00 2,79 0,00 0 Q3 2009 Q3 2010 Q3 2011 Q3 2012 Q3 2013 Q3 2014 Q3 2015 2010 2011 2012 2013
Slide 25: Key Financials
Key Financials Recurring Sales (m TL) Recurring Sales (%) one-time recurring CAGR: 211% 7% 120 4% 4% 15% 100 24% 36% 39% 37 47% 80 53% 36% 42 60 17 27 96% 85% 40 7 76% 64% 61% LEM 1 67 54 53% Pay as you go 20 42 47 39 Maintenance 30 SaaS 0 2011 2012 2013 2014 9M14 9M15 2011 2012 2013 2014 9M14 9M15
Slide 26: Key Financials
Key Financials R&D (000 TL) Share in Revenue (%) S&M (000 TL) Share in Revenue (%) G&A (000 TL) Share in Revenue (%) 29% 27% 22% 19% 10% 8% 100,0 100,0 89,0 100,0 89,0 89,0 80,0 80,0 68,9 80,0 68,9 68,9 60,0 60,0 60,0 40,0 40,0 40,0 20% 24,16 12% -3% 20,06 15,48 17,31 20,0 20,0 20,0 7,23 7,04 0,0 0,
Slide 27: Key Financials
Key KeyFinancials Financials EBIT (m TL) EBITDA (m TL) Net Income (m TL) CAGR: Ch: CAGR: Ch: CAGR: Ch: 65% 63% 50% 54% 107% 83% 45 39,6 40 38,4 38%47,6 35 29,6 39,6 28 30 23,5 38% 30,9 21,6 25 20,8 27,1 19 20 15 31% 28% 17,4 11,6 11 11,8 10% 10% 29% 10 6,6 5 3 0 2011 2012 2013 2014 9M14 9M15 2011 20
Slide 28: Key Financials
Key Financials Balance Sheet Highlights (m TL) Working Capital (m TL) (Share in Revenue %) 2014 9M 2015 D Cash & Cash Eq. 48,7 33,7 -31% 35% 38% 60% 46% 49% 49% Trade Receivables 53,7 46,6 -13% Tangible Assets 15,1 15,3 1% 48,0 42,8 43,4 Intangible Assets 43,6 57,0 31% Other Assets 5,1 3,0 -41% 33,5
Slide 29: Share Performance
Share Performance Share Price (TL) eLogo 45 Call option Acqusition of agrement 50.1% stake in (Feb 20. 2014) Intermat (Jan 5, Acqusition of 40 Voluntary 1H2014 2015) Dividend 100% stake in Q3 financials tender offer Q12014 Announcement released financials Sempa (17 June (Jan 27. 2014) (Apr 1, 2015)
Slide 30: Trading Comparables
Trading Comparables € mln LTM LTM LTM EBITDA Market Enterprise EV/Sales EV/EBITDA P/E Company Country Revenue EBITDA Net income margin % Cap. Value LTM 15E 16E LTM 15E 16E LTM 15E 16E Totvs Brazil 413 86 62 21% 1,327 1,308 3.2x 2.9x 2.6x 15.2x 12.3x 11.3x 21.6x 19.9x 20.7x Sage UK 1,946 527 263 27%
Slide 31: Contents
Contents Logo at a Glance Turkey: Macro Review and EAS Market Company Overview Financial Overview Questions & Answers
Slide 32: Thank you for joining us today
Thank you for joining us today Logo Investor Relations Team T: +90 262 679 8000 E: investor@Logo.com.tr