Ard Grup Bilisim Teknolojileri As · BIST:ARDYZ

Ard Grup Bilisim Teknolojileri As — Q4 2023 Earnings Presentation

35 slides from Ard Grup Bilisim Teknolojileri As's earnings presentation, Jun 21, 2024

  1. Slide 1: Investor Presentation 4Q 2023 Figures

    1 INVESTOR PRESENTATION 4Q 2023 FIGURES 21.06.2024

  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 10 Sayfa 30 Page 32

  3. Slide 3: Financial period summary 2022-2023

    01.01.2022-31.12.2023 financial period Net Sales, m₺ EBITDA, m₺ Net Income, m₺ 3 1.141 Annualy* %79 Growth Net Sales mTL 1.200,0 Gross Margin 79% 90% 80% 1.000,0 900,0 EBITDA Margin 76% 90% 80% 500,0 450,0 Net Margin 38% 40% 35% 1.150,0 400,0 28% 800,0 70% 70% 61% 30% 700,0 58% 350,0 871 60% EBITDA

  4. Slide 4: 4Q 2023 Headlines

    4Q 2023 HEADLINES 4 Capital Efficiency: 26% ROE including TAS-29 Effect* Growth: We expect 1,7 bn TRY of EBITDA at the end of 2024 Subsidiary Acquisition: 51% Shares of Oxivo Grup Bilişim A.Ş. Acquired * Return on Equity

  5. Slide 5: Executive Summary

    EXCUTIVE SUMMARY 5 Leverage The decline in working capital sales share with increasing sales between 2019 and 2021 indicates efficiency. However, with the increase in trade receivables and the decline in commercial debts in 2023/12, the need for working capital increased. Increasing sales in 2023 we

  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 9 Page 10 Page 30 Page 32

  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 Ard Grup Holding Anonim Şirketi Doğan Ödemiş 25,13% Directors Gürkan Bilgin Board Member Other 68,91% Sabri Çağrı Çakır Board Member 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 9 Page 10 Page 30 Page 32

  10. Slide 10: Solid Performance

    10 SOLID PERFORMANCE 2023/12 & 2022/12 PERIODICAL 0,0% 10,0% 20,0% 30,0% 40,0% 50,0% 60,0% 70,0% 80,0% 90,0% REVENUE Gelir Büyümesi 15,3% 127,7% GROWTH EBITDA * FAVÖK* Büyümesi 51,0% GROWTH NET INCOME Ne t K ar Büyümes i 58,8% GROWTH EBITDA* FAVÖK Marjı 76,4% MARGIN *Other Income / Expense from Oper

  11. Slide 11: 15,3% Real Growth in Sales in 2023

    11 4Q 2023 HEADLINES 15,3% Real Growth in Sales in 2023, Including TAS-29 Effect PERIODICAL FIGURES Net Sales (mTL) 1.200 ➢ Net sales increased by 15,3% annually, including the TAS-29 effect, reaching 1.140,6 mTL in 2023. 1.150 1.140,6 1.100 1.050 1.000 989,0 950 900 12M22 12M23

  12. Slide 12: Improvement in Sales Supported Profitability

    12 4Q 2023 HEADLINES Improvement in Sales Supported Profitability PERIODICAL FIGURES EBITDA (mTL) Net Income (mTL) 1.000 76,4% 500 37,6% 900 450 800 871,3 428,9 400 700 58,3% 28,2% 350 600 300 500 577,0 250 279,3 400 200 300 150 200 100 100 50 0 0 12M22 12M23 12M22 12M23 ➢ EBITDA improved by 270,4%

  13. Slide 13: Increased Sales and Rising Margins Supported EBITDA

    13 4Q 2023 HEADLINES Increased Sales and Rising Margins Supported EBITDA ➢ Rising sales and gross profit margin stood out as effective parameters in EBITDA growth. ➢ R&D expenditures create expectations for EBITDA growth in the coming period. ∆ : Change

  14. Slide 14: Sustainable Net Income Growth Continued

    14 4Q 2023 HEADLINES Sustainable Net Income Growth Continued ➢ Sustainable profitability continued with a 53.6% increase in real terms in net profit for the period, with the impact of factors supporting EBITDA growth. ∆ : Change

  15. Slide 15: Working Capital to Sales Will Be Normalised

    15 4Q 2023 HEADLINES Working Capital to Sales Will Be Normalised At the End of the Year Working Capital Working Capital 1.200 90% Working Capital Analysis 1.000 80% 96 76,5% 800 78 70% mTL 2022 2023/12 Trade Receivables 761,4 909,5 60% 600 52,9% Inventory + Other Current Assets 77,9 96,2 910 50% 400

  16. Slide 16: Increase in Trade Receivables Increased Working Capital

    16 4Q 2023 HEADLINES Increase in Trade Receivables Increased Working Capital ➢ In 2023, the 148.2 million TL increase in trade receivables and the 252 million TL decrease in commercial payables increased the working capital. ➢ Working capital, which was 570.5 mTL at the end of 2022, increased to 873

  17. Slide 17: Net Debt/EBITDA Ratio of 0,3x

    17 4Q 2023 HEADLINES Net Debt/EBITDA Ratio of 0,3x Means High Borrowing Capacity Net Cash Position Net Debt/EBITDA Net Cash & Equity & Financial Leverage 350 0,4 0,3 TLm 2022 2023/12 300 0,3 Cash and Cash Equivalents 40,6 14,8 287,3 250 0,3 Financial Investments 67,8 71,7 Net Cash/EBITDA Other Recei

  18. Slide 18: Foreign Exchange Position and Credit Maturity Breakdown

    18 4Q 2023 HEADLINES Foreign Exchange Position Credit Maturity Breakdown 4 0,2% 0,2% 0,1% 2 3-12 Mounth 2,02 0,0% 49% 0 -0,1% -2 -0,2% -4 -8,80 -0,3% -6 -0,4% 0-3 Mounth 30% -8 -0,5% -0,5% -10 -0,6% 2022/12 2023/12 1-2 Year 21% Foreign Exchange Position Foreign Exchange Position / Equity ➢ In 2023,

  19. Slide 19: Ratio of Investments to Annual Net Sales Decreased

    19 4Q 2023 HEADLINES The Ratio of Investments to Annual Net Sales Decreased in the 2023/12 Period Investments (mTL) 370 32,2% 32,2% 360 32,1% 16,7 350 32,0% 340 31,9% 330 344,5 31,8% 320 4,0 31,7% 31,7% 310 31,6% 300 314,1 31,5% 290 31,4% 2022 2023/12 R&D (mTL) Other Investment Invesment/Sales

  20. Slide 20: 25,8% ROE in Real Basis

    20 4Q 2023 HEADLINES 25,8% ROE in Real Basis* ➢ The degree of liquidity of the balance sheet ROE 1.900 continued to increase with each passing period. 1.800 2023/12 ➢ Return on equity is above bond yield, indicating 1.700 25,8% that capital is used efficiently. Equity (TLm) 1.600 ➢ Low debt means th

  21. Slide 21: Financial Ratios: Liquidity and Investment

    21 4Q 2023 HEADLINES Financial Ratios Liquidity Ratios 2023/12 2021/12 2020/12 Reference Current Ratio 2,55 2,24 5,53 1,0-1,5 Liquidity Ratios 2,53 2,19 5,40 0,8-1,0 Investment Ratios (12M Trailing) 2023/12 2021/12 2020/12 Reference Investment/Depreciation 250,1% 392,5% 653,2% >%100 Investment/Net S

  22. Slide 22: Financial Ratios: Debt

    22 4Q 2023 HEADLINES Financial Ratios Debt Ratios 2023/12 2021/12 2020/12 Reference Total Debt/Total Assets 24,7% 28,5% 10,1% <%40 Short-Term Fin. Debt/Equity 15,6% 7,4% 1,7% <100% Coverage Ratio 13,0 -35,9 -79,8 >3 Net Debt/EBITDA 0,3 0,0 -0,3 <4 Short-Term Liabilities/Assets 17,2% 23,0% 9,4% Secto

  23. Slide 23: Financial Ratios: Profitability

    23 4Q 2023 HEADLINES Financial Ratios Profitability Ratios (12MTrailing) 2023/12 2021/12 2020/12 Reference Gross Margin 79,3% 60,6% 77,5% Sector EBIT Margin 63,7% 50,1% 53,8% Sector EBITDA Margin 76,4% 58,3% 58,1% Sector Net Margin 38,9% 28,2% 54,4% Sector ROE 25,8% 21,6% 46,6% >Bond Yield ROA 31,2%

  24. Slide 24: Share Performance and Market Cap

    24 4Q 2023 HEADLINES Share Performance (TL) Mcap (TL) 6.000 4.433,6 m TL 30 million TL 26,08 ₺ 31.12.2023 28 26 5.000 24 22 20 4.000 18 16 3.000 14 12 10 2.000 8 6 4 1.000 2 0 0 ➢ Return of 3.119% from IPO date to December 31, 2023. ➢ Strong financial data and compliance with corporate governance pr

  25. Slide 25: Headlines, Summary, Financials, Investment Thesis, Appendix

    25 01 02 03 04 05 Headlines Summary Financials Investment Appendix Thesis Page 3 Page 9 Page 10 Page 30 Page 32

  26. Slide 26: Investment Thesis

    26 4Q 2023 HEADLINES Investment Thesis Increasing software expenditures all over the world due to the pandemic make the sector strategic; R&D and Technocity incentives and low tax rate; Being one of the fastest growing technology companies in Turkey every year between 2016 and 2023 in the Deloitte T

  27. Slide 27: Headlines, Summary, Financials, Investment Thesis, Appendix

    27 01 02 03 04 05 Headlines Summary Financials Investment Appendix Thesis Page 3 Page 9 Page 10 Page 30 Page 32

  28. Slide 28: Appendix

    28 APPENDIX

  29. Slide 29: Expectations

    29 4Q 2023 HEADLINES Expectations Net Sales (mTL) EBITDA (mTL) 1.700 2.300 98,5% 130,6% 79,6% 856 189,1% 997 555 296 2022 Realized 2023 Realized 2024 Estimated 2022 Realized 2023 Realized 2024 Estimated NOTE: The data are excluding the effect of TAS 29. 29

  30. Slide 30: Financial statements - TAS-29 effect included

    30 4Q 2023 HEADLINES 2022/12 2023/12 Income Statements (TL) - TAS-29 Effect 2022/12 2023/12 Income Statements (TL) - TAS-29 Effect Included Audited Audited Included Audited Audited Assets 1.808.614.876 2.331.673.633 Net Sales 989.046.072 1.140.602.425 Cash & Cash Equivalent 40.610.060 14.769.540 Cha

  31. Slide 31: Financial statements - TMS-29 effect excluded

    31 4Q 2023 HEADLINES Balance Sheet (TL) - TAS-29 Effect Excluded 2022/12 2023/12 2022/12 2023/12 Income Statements (TL) - TMS-29 Effect Excluded Assets 891.473.628 1.816.380.368 Audited Audited Cash & Cash Equivalent 24.646.077 14.769.541 Net Sales 555.321.383 997.189.198 Current Financial Investmen

  32. Slide 32: Milestones of Ard Group

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

  33. Slide 33: Ard Group structure

    33 ARD GROUP ARDENERLI ARD GRUP ENERII ‘SAN. VETIC. AS. %100 (200.000.000 TL) ARDSAGUK ARD GRUP SAGLIK MEDIKAL ILAG SAN. VE TIC. AS. % 100 (20.000.000 TL) ARDHOLDING ARDDANISMANLK ARD GRUP PROJE YONETIM| DANISMANLIK A.S. %100 (1.000.000 TL) ARDBLISIM RD GRUP Bitisin, TEKNOLOJILERIA.S. % 25,13, (170.

  34. Slide 34: Disclaimer

    34 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

  35. Slide 35: Investor Relations Contacts

    35 INVESTOR RELATIONS CONTACTS THANK YOU For detailed information, please contact us by e-mail investor.relations@ardgroup.com.tr

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