Logo Yazilim Sanayi Ve Ticaret A.s. · BIST:LOGO
Logo Yazilim Sanayi Ve Ticaret A.s — Logo Yazılım Sanayi ve Ticaret A.Ş. — AGCO EMFM Virtual Investor Conference (October 2022)
42 slides from Logo Yazilim Sanayi Ve Ticaret A.s's conference presentation, Oct 27, 2022
Slide 1: AGCO EMFM Virtual Investor Conference Presentation
AGCO EMFM Virtual Investor Conference Presentation Gülnur Anlaş CFO Canan Şenkut IR Director October 27th, 2022
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 India Software (EAS) in Turkey and through a JV Company Romania 38% 62% IFRS revenue 767 mn TL Recurring Growing SaaS CAGR 2021 business revenue base in 2011-2021 revenues Dedicated R&D 1.300+ 43% 5.000+ 150.000+ spending employees women
Slide 4: Key investment highlights
Key investment highlights Solid growth Leading provider of EAS solutions High profitability Extensive Solutions& Services 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.t
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 ELBA HR Total Soft S.A. Business Technology (Peoplise) 80% Private Ltd. 88% 50% ABS SRL ABS Financial Logo Financial 80% Services SRL Solutions GmbH 80% 100% * 32,32% belongs
Slide 6: Logo milestones
Logo milestones 1980s-1990s 2000s 2010s 2020s ✓ 1984; establishment ✓ 2000; First-ever ✓ Local acquisitions; Coretech ✓ Specialized acquisitions; software company IPO (2011), Netsis (2013), WorldBI Peoplise (Elba HR, 2020), ✓ Enterprise Applications- in Turkey (LogoBI, 2011), Intermat (CRM, Nexia (R
Slide 7: Turkish EAS market and Logo market share
Turkish EAS market and Logo market share Turkish EAS market growth expectation* ($mn) CAGR 3.1% 372 Others; 24% Logo; 26% 355 2020** 341 Oracle; 5% 330 319 323 Microsoft; 5% 2019 2020E 2021E 2022E 2023E 2024E SAP; 40% SMEs lead software market growth Government push for digitalisation Enterprise clo
Slide 8: Extensive product suite
Extensive product suite 60+ solutions One-stop-shop for companies of all sizes 35+ years of experience www.logo.com.tr 8
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 • Higher pre
Slide 10: Logo Turkey sales cycle
Logo Turkey sales cycle Partner 1 Customers Partner 2 • User increments R&D Product Initial Sales Following Marketing Sales (to customers) • Modules Development Sales • 3rd party Cross - Sales • HR / CRM / BI / WMS / BPM Support Logo Coin • e-Services (e-invoices etc.) Membership • LEM Services 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 > 35yrs of legislations and business 5,000 sales and implementation presence practices team members ◉ Low
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 3,996 leader in License new features 95,000 e-government Customers maintenance added in 2021 solutions Version 56% 28% e-invoice Logo coin releases Revenue New features revenue 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 95K customers ✓ High-quality customer service in addition to superior # of customers ('000) tech infrastructure differentiates eLogo in a very CAGR
Slide 14: Logo İşbaşı: SaaS solution for MicroSME digitalization
Logo İşbaşı: SaaS solution for MicroSME digitalization Offering basic accounting software and e-invoicing services # of users ('000) 37 33 27 29 User growth: 24 20 21 269% y/y 18 16 15 12 13 ARPU*: 326 TL 10 8 6 7 3 3 4 1 1 2 2 2 2 LTV/CAC**: 28 Aug.'20 Nov.'20 Aug.'21 Nov.'21 Dec.'19 Dec.'20 Dec.'2
Slide 15: Peoplise: next generation talent acquisition
Peoplise: next generation talent acquisition SaaS solution for recruitment, on-boarding and talent engagement needs of enterprises www.logo.com.tr 15
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 Customer centric design approach Machine Learning enabled aPaas for ERP All products with the documentat
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 3rd parties App2 App3 Partner ECO sys
Slide 18: 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 18
Slide 19: 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 >25 yrs of ◉ Development of best of breed ERP and Human Capital presence solutions together w/ vertical
Slide 20: MicroSME digitalization - India
MicroSME digitalization - India CaptainBiz: pre-accounting and e-invoicing services with in-built GSTN compliance Logo CaptainBiz Logo CaptainBiz Same 1,5K users is GSTN is a mobile source-code at end-2021 approved solution with Logo İşbaşı Only 8 solutions are Only 4 solutions are Basic functionali
Slide 21: ESG in numbers
ESG in numbers + + + 1,315 43% 50% 35 Employees Women Women in Average age employees executive of employees management + + 27% 50% 9.28/10 100% R&D spending/ of Board is Corporate of e-waste invoiced independent Governance recycled in TR revenues Rating *Employee data is 2021 year-end figures includ
Slide 22: Q2 2022 results
A) logo Q2 2022 results
Slide 23: Solid performance continues in Q222
Solid performance continues in Q222 Consolidated Revenues (TL mn) EBITDA (TL mn) Net Income (TL mn) 107% 97% 126% 368 43% 40% 45% 158 178 37% 147 80 65 Q221 Q222 Q221 Q222 Q221 Q222 • Strong revenue growth and solid operational profitability continued in Q2 despite macro uncertainties • Recurring re
Slide 24: Strong results in H122
Strong results in H122 Consolidated Revenues (TL mn) EBITDA (TL mn) Net Income (TL mn) 101% 101% 100% 43% 38% 637 271 239 43% 38% 317 135 120 H121 H122 H121 H122 H121 H122 • Revenues up by 101%, reaching 637 TL mn, with Turkey and Romania operations contributing 67% and 33% respectively • EBITDA up
Slide 25: Effective financial management
Effective financial management Consolidated Cash and Financial Investments (TL mn) Strong FCF – LTM (TL mn) 555 499 -10% 75% 295 118 262 67 259 237 H121 H122 2021 H122 Cash and cash eq. Financial Investment (ST<) EPS* growth (LTM) 111% 4.0 1.9 H121 H122 *Adjusted by 3.61% treasury shares (H121: 3.
Slide 26: Strong performance in Turkey
Strong performance in Turkey Logo Turkey-Revenues (TL mn) Logo Turkey-EBITDA (TL mn) Logo Turkey-Net Income (TL mn) 110% 102% 86% 95% 126% 113% 51% 52% 427 218 220 49% 53% 53% 49% 253 134 212 56% 125 112 49% 103 121 67 59 Q221 Q222 H121 H122 Q221 Q222 H121 H122 Q221 Q222 H121 H122 • Revenues in H1 i
Slide 27: 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 117K customers # of customers ('000) eLogo invoiced revenues (TL mn) CAGR: 56% CAGR: 47% 24 64% 117 55% 95 24 71 23 56 37 194 10 32 134 18 109 10 1
Slide 28: Logo İşbaşı: SaaS solution for MicroSME digitalization
Logo İşbaşı: SaaS solution for MicroSME digitalization Offering basic accounting software and e-invoicing services # of users ('000) 44 45 46 48 37 40 43 User growth: 33 24 27 29 141% y/y 21 18 20 15 16 3 3 4 6 7 8 10 12 13 ARPU*: 333 TL 1 1 2 2 2 2 LTV/CAC**: 22 Dec.'21 Aug.'20 Aug.'21 Dec.'19 Dec.
Slide 29: Solid performance at Total Soft
Solid performance at Total Soft Total Soft–Revenues (TL mn) Total Soft–Gross profit (TL mn) Total Soft–EBITDA (TL mn) 101% 99% 90% 156% 130% 98% 45% 210 25% 94 53 46% 47% 29% 115 22% 105 46% 52 50 33 22% 23 57 26 13 Q221 Q222 H121 H122 Q221 Q222 H121 H122 Q221 Q222 H121 H122 Total Soft-Net Income (T
Slide 30: Invoiced Revenue vs IFRS Revenue (Consolidated)
Invoiced Revenue vs IFRS Revenue (Consolidated) Second Quarter Invoices & IFRS Revenues (TL mn) IFRS Revenues= 368 Invoices - Net Deferrals 343 Invoices • Q2 sales invoice growth was 93% y/y 178 177 • IFRS Revenue growth was 107%y/y in Q2 132 95 92 117 63 62 72 74 37 31 Q216 Q217 Q218 Q219 Q220 Q221
Slide 31: Recurring Revenue Growth Ensuring Predictability
Recurring Revenue Growth Ensuring Predictability Consolidated Recurring Invoices (TL mn) • LEM revenues increased by 83% y/y CAGR: 44% • Pay as you go revenues increased by 50% y/y 527 • Maintenance revenues increased by 108% y/y 81% with significant contribution from Total Soft 384 371 • Retail Saa
Slide 32: Cost of Sales
Cost of Sales Consolidated (TL mn) – As % of IFRS Revenue Total Soft (TL mn) – As % of IFRS Revenue 19% 20% 53% 55% 637 210 317 105 116 111% 130 56 108% 62 H121 H122 H121 H122 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 50% 46% 23% 19% 637 637 317 290 317 158 84% 123 72 70% H121 H122 H121 H122 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 14% 1
Slide 34: Dedicated Investment in Technology
Dedicated Investment in Technology R&D Spending (TL mn) – As % of Invoices 300 33% 31% 35% 30% 30% 29% 250 27% 27% 30% 24% 200 232 25% 186 20% 150 146 15% 100 123 10% 99 94 50 77 5% 57 0 0% 2016 2017 2018 2019 2020 2021 H121 H122 R&D Spending (TLmn) - LHS R&D Spending/Invoices -RHS www.logo.com.tr 3
Slide 35: Strong Balance Sheet
Strong Balance Sheet Balance Sheet Highlights (TL mn) Working Capital (TL mn) 2021 H122 ∆ 44% 500 Cash & Cash Eq. 259.4 236.5 -9% 40% 34% 36% Trade Receivables 332.8 326.3 -2% 33% 400 Tangible Assets 21.0 22.2 6% 31% 30% 28% 27% Intangible Assets* 759.2 910.1 20% 23% 300 Other Assets 435.1 482.0 11%
Slide 36: Revised Guidance
Revised Guidance 2021 2022 revised guidance Invoiced Revenue (TL mn) +81% 483 1,574 1,050 40 254 19 867 594 IFRS Revenue (TL mn) +88% 483 35 1,445 262 767 930 490 15 EBITDA** (TL mn) +68% 352 150 481 198 96 -14 286 -34 Margins 40% 37% n.m. 37% 38% 31% n.m. 33% EBT (TL mn) +57% 425 71 -38 471 238 72
Slide 37: Appendix
Appendix
Slide 38: eLogo: e-services platform and leader in digital transformation
eLogo: e-services platform and leader in digital transformation New communique’s details (January 22nd, 2022) BEFORE AFTER (eff. as of July 1st, 2022) Companies w/sales 5mio₺+, Companies w/sales 4mio₺+, e-invoice Specific sectors with no sales Companies in some sectors w/sales 1mio ₺+, threshold Spe
Slide 39: Invoiced Revenue Growth and Breakdown
Invoiced Revenue Growth and Breakdown 2016* 2017 2018 2019 2020 2021 4-yr-CAGR Invoiced revenues (TL mn) 175,8 259,1 333,0 460,1 617,7 848,6 35% One-time - TR 70,3 83,4 95,0 130,1 145,6 207,2 26% share in total 40% 32% 29% 28% 24% 24% One-time - RO 21,3 40,2 57,5 72,9 87,9 114,2 30% share in total 1
Slide 40: 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 41: 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 42: Thank you
Thank you
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