Logo Yazilim Sanayi Ve Ticaret A.s. · BIST:LOGO
Logo Yazilim Sanayi Ve Ticaret A.s — Logo Yazılım Sanayi ve Ticaret A.Ş. — WOOD & Co. Prague Spring EME Conference 2022
41 slides from Logo Yazilim Sanayi Ve Ticaret A.s's conference presentation, Jun 8, 2022
Slide 1: WOOD & Co. Prague Spring EME Conference Presentation
" WOODBCo. Prague Spring EME Conference Presentation Canan Senkut IR Director June 8-9, 2022
Slide 2: Forward-looking statements 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 andj — India Compan Romania through a JV a Ta, | a Recurring Growing SaaS revenue base # business | IFRS revenue CAGR 2021 in 2011-2021 revenues nta pagent eat? ments ie 4 +O pine et Bt Dedicated 1.300+ 43% 5-0
Slide 4: Key investment highlights
Key investment highlights Zoq we ca rie Solid growth Leading provider of EAS solutions tL © High profitability ° Extensive , ) Solutions& Services suit @ Latest technology Largest business partner 22m network in Turkey / 800+ International expansion in emerging markets Most valuable IT brand* he © A
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 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% 5
Slide 6: Logo milestones
Logo milestones 1980s-1990S ¥ 1984; establishment v Enterprise Applications-DOS v Enterprise Applications-Windows Y Logo ERP [ogo ¥ 2000; First-ever software company IPO in Turkey Y Software Development Center @ Gebze ¥ Competitive java-based product Y¥ R&D leadership in software market Y Market lea
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
60+ solutions One-stop-shop for companies of all sizes 35+ years of experience
Slide 9: Competitors and positioning
Employees #Firms Positioning Competitors Volumes Revenues 1.5k 12.3k 300k 2.4m 2.7m • • • 1 2-3 4 • • •
Slide 10: Partner and sales model
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: Robust product suite, distribution network and strong brand
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 2021 solutions 95,000 - Customers 28% | @- Version a? 56% releases Logo coin © New features e-archive revenue eoaren se Regulato
Slide 13: eLogo: market leader in e-government solutions
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: 56% competitive market 95 ✓ Recurring revenues (coins) make up
Slide 14: İşbaşı: basic accounting and e-invoicing for micro-SMEs
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 Oct.'20 Oct.'21 Dec.'20 Aug.'20 Aug.'21 Dec.'19 Dec.'21 Jun.'20 Sept.'20 Jun.'21 Sept.'21 Jan.'20 Apr.'20 Jul
Slide 15: Peoplise: SaaS for recruitment and talent engagement
SaaS solution for recruitment, on-boarding and talent engagement needs of enterprises
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: Total Soft Romania overview
25 years Financial Trade Services Energy Manufacturing 800 Services Constructions Healthcare Agriculture application software 18
Slide 19: 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 20: CaptainBiz: pre-accounting and e-invoicing with GSTN compliance
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 functionality is approved by the Goods mobi
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: Q1 2022 results
A) logo Q1 2022 results
Slide 23: Revenues, EBITDA and Net Income
Revenues (TL mn) EBITDA (TL mn) Net Income (TL mn) 93% 106% 69% 269 42% 34% 114 39% 93 40% 139 55 55 Q121 Q122 Q121 Q122 Q121 Q122 • Strong start to year 2022, with solid revenue growth and improved operational profitability despite macro uncertainties • Recurring revenues were 61% of invoiced sales
Slide 24: Cash, free cash flow and EPS growth
Cash and Financial Investments (TL mn) Strong FCF – LTM (TL mn) 12% 623 116% 555 176 309 295 314 81 259 2021 Q122 Q121 Q122 Cash and Cash Eq. Financial Investments (ST<) EPS* growth 104% 3,1 1,5 Q121 Q122 *Adjusted by 3.61% treasury shares (Q121: 3.48%)
Slide 25: Logo Turkey revenues, EBITDA and net income
Logo Turkey-Revenues (TL mn) Logo Turkey-EBITDA (TL mn) Logo Turkey-Net Income (TL mn) 91% 108% 95% 54% 50% 174 93 87 49% 49% 91 45 44 Q121 Q122 Q121 Q122 Q121 Q122 • Revenues grew by 91% with increased spending from existing customers and healthy new customer acquisitions • EBITDA grew by 108% with
Slide 26: eLogo: 107K customers and invoiced revenues
Market leader in e-government solutions; e-invoice, e-archive, e-ledger, e-dispatch with 107K customers # of customers ('000) eLogo invoiced revenues (TL mn) CAGR: 56% CAGR: 47% 71% 24 107 95 24 56 62 194 43% 37 32 134 18 18 4 10 10 14 10 70 11 38 31 41 21 28 2016 2017 2018 2019 2020 2021 Q121 Q122
Slide 27: İşbaşı users and ARPU
Offering basic accounting software and e-invoicing services # of users (‘000) 43 44 40 37 29 33 User growth: 27 18 20 21 24 202% y/y 13 15 16 10 12 1 1 2 2 2 2 3 3 4 6 7 8 ARPU*: 334 TL LTV/CAC**: 26 Aug.'20 Aug.'21 Dec.'19 Apr.'20 Dec.'20 Dec.'21 Jun.'20 Sept.'20 Oct.'20 Apr.'21 Jun.'21 Sept.'21 Oc
Slide 28: Total Soft revenues, gross profit, EBITDA, net income
Total Soft–Revenues (TL mn) Total Soft–Gross profit (TL mn) Total Soft–EBITDA (TL mn) 97% 80% 97% 95 44% 21% 48% 42 20 21% 48 23 10 Q121 Q122 Q121 Q122 Q121 Q122 Total Soft-Net Income (TL mn) • Revenues grew by 97% y/y and revenue growth in Euros was 12% -41% y/y • Gross profit is up by 80% yielding
Slide 29: First quarter invoices and IFRS revenues
First Quarter Invoices & IFRS Revenues (TL mn) IFRS Revenues= 269 Invoices - Net Deferrals 259 Invoices • Q1 sales invoice growth was 80% y/y 139144 • IFRS Revenue growth was 93%y/y in Q1 102108 81 76 67 66 54 53 36 30 Q116 Q117 Q118 Q119 Q120 Q121 Q122 Invoiced Revenues (TL mn) CAGR: 37% 849 • In T
Slide 30: Consolidated recurring invoices
Consolidated Recurring Invoices (TL mn) • LEM revenues increased by 72% y/y CAGR: 44% 527 • Pay as you go revenues grew by 37% y/y 384 • Maintenance revenues increased by 89% y/y 257 69% • Retail SaaS revenues grew by 80% y/y 181 159 135 • SaaS revenues increased by 155% y/y, 73 84 94 • Retail SaaS
Slide 31: Cost of sales as % of IFRS revenue
Consolidated (TL mn) – As % of IFRS Revenue Total Soft (TL mn) – As % of IFRS Revenue 20% 23% 52% 56% 269 95 139 48 53 28 120% 61 25 113% Q121 Q122 Q121 Q122 Revenue Cost of Sales Revenue Cost of Sales
Slide 32: OpEx, R&D, S&M and G&A as % of IFRS revenue
OpEx (TL mn) – As % of IFRS Revenue R&D Expenses (TL mn) – As % of IFRS Revenue 53% 45% 25% 20% 269 269 139 121 139 74 63% 55 35 58% Q121 Q122 Q121 Q122 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% 13% 15% 12% 269 269 13
Slide 33: R&D spending as % of invoices
R&D Spending (TL mn) – As % of Invoices 400 40% 33% 34% 31% 30% 30% 300 27% 27% 30% 24% 200 232 20% 100 146 10% 123 99 87 77 57 45 0 0% 2016 2017 2018 2019 2020 2021 Q121 Q122 R&D Spending (TLmn) - LHS R&D Spending/Invoices -RHS
Slide 34: Balance sheet highlights and working capital
Balance Sheet Highlights (TL mn) Working Capital (TL mn) 2021 Q122 ∆ Cash & Cash Eq. 259,4 313,8 21% 50% 44% 400 Trade Receivables 332,8 189,3 -43% Tangible Assets 21,0 22,3 6% 40% 34% 36% 33% 31% 300 Intangible Assets* 759,2 836,5 10% 28% 30% 24% Other Assets 435,1 474,8 9% 260 200 Total Assets 1.8
Slide 35: 2022 guidance
2021 2022 guidance Invoiced Revenue (TL mn) +67% 445 1.422 236 849 941 35 594 19 IFRS Revenue (TL mn) +74% 445 31 1.333 262 15 767 860 490 EBITDA** (TL mn) +59% 138 -34 339 456 96 -14 286 198 Margins 40% 37% n.m. 37% 39% 31% n.m. 34% EBT (TL mn) +39% 72 -16 300 376 65 -38 417 238 Margins 48% 28% n.m
Slide 36: Appendix
Appendix
Slide 37: New communique's details (January 22nd, 2022)
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 Specific sectors with no sales threshold e-archive All e-invoice is
Slide 38: Invoiced revenues 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 12% 16% 17% 16% 14% 13% Recurring - TR
Slide 39: Turkey's digital airline using Logo's solutions since 2008
Turkey’s digital airline is using Logo’s solutions since 2008 39
Slide 40: Customer case studies: Unilever, Barilla, Yaktas
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 41: Thank you
Thank you
Logo Yazılım Sanayi ve Ticaret A.Ş. — WOOD & Co. Prague Spring EME Conference 2022 on 6ix