Systems Ltd. · PSX:SYS
Systems — 9M 2022 Earnings Presentation
27 slides from Systems's earnings presentation, 2022
Slide 1: Enabling a Digital Tomorrow
Enabling a Digital Tomorrow INVESTOR BRIEFING NINE MONTHS ENDED 2022
Slide 2: Table of Contents
2 TABLE OF CONTENTS Systems At A Glance Environment, Social & Governance Awards and Recognition Financial Review Way Forward Q&A
Slide 3: What we do
What we do BUILD SELL DELIVER Text To Be Updated Text To Be Updated Text To Be Updated 3
Slide 4: Digital is the central driver of our business
Digital is the central driver of our business 4 Digital services, especially curated to transform ways enterprises engage and serve their customers, contribute a fair share in making Systems Limited a globally recognized SI company. The pace of digital transformation continues to accelerate and ad
Slide 5: Systems At A Glance
Systems At A glance 5 EMPLOYEE METRICS 9M REVENUE TRAJECTORY 2022 (PKR Mn) 6,024 CAGR 53% 2021 2020 5,320 ~ 850 3,548 20,145 2019 3,360 Addi tion of IT professionals during the Period i ncluding NDC a nd TH 10,524 7,069 5,472 3,698 2018 2019 2020 2021 2022
Slide 6: People
People Our people strategy was focused around new dynamics and functions like business partnering, academia linkages and employer branding to streamline performance delivery, bring in more efficiency and enhance employee experience. Education, Health and Climate Change were the highlights of Corpora
Slide 7: Awards and Recognition
7 Best Under A Billion three years Two awards in "Most Pakistan’s first IT company to in a row Outstanding Company“ reach Rs. 100 billion for two times in a row market capitalization Received SAP® EMEA S Partner Partner of the year 2020 Top of Microsoft’s most Excellence Awards 2022 for Top strategi
Slide 8: Client Composition
Client Composition 8 Active Clients Client Contribution to Revenue 56% 45% 47% 35% 32% 25% 12% 11% 9M 2021 9M 2022 Active clients 109 161 Top Client Top 5 clients Top 10 clients Top 20 clients 2021 2022 *Revenue above $100k Client Metrics FY 2021 FY 2022 $10m+ clients 1 1 $5m + clients 1 2 $3m + cli
Slide 9: Deep Client Relationships
Top Client Revenue % Average Spend Top Client (PKR ‘M) Average Spend Q3 12 12% 11% 32% 25% 45% 35% 56% 47% % 9% 1,263 2,134 3,368 4,979 4,736 6,972 5,894 9,368 477 781 Top Client Top 5 clients Top 10 clients Top 20 clients Q3 '21 Q3 '22 Top Client Top 5 clients Top 10 clients Top 20 clients Q3 '21 Q
Slide 10: Financial Review
10 Financial Review NINE MONTHS ENDED - 2022 *all financials are from consolidated results
Slide 11: Financial Performance At a Glance
Financial Performance At a Glance 11 PKR 20.1bn 53% 91% 53% 9M ’22 REVENUE USD BASED YOY REVENUE REVENUE CAGR REVENUE GROWTH GROWTH (5Y) 32% 20% 25% 6,024 9M’22 9M’22 OPERATING TOTAL EMPLOYEES AS OF 9M’22 NET INCOME MARGIN GROSS PROFIT MARGIN MARGIN SEPTEMBER 30 2022 161 16 94% 107 9M’22 TOTAL CUSTO
Slide 12: Strong 2022 Performance (QoQ) - Revenue
Strong 2022 Performance (QoQ) 12 REVENUE (PKR ‘M) 8,682 Q3 22 vs Q3 21 Growth (PKR) Q3 22 vs Q3 21 Growth (USD) 6,130 118% 60% 5,333 4,780 3,976 Q3 22 vs Q2 22 Growth (PKR) Q3 22 vs Q2 22 Growth (USD) Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 42% 23%
Slide 13: Strong Revenue Growth
Revenue (PKR ‘M) CAGR 5 3 % +9 1 % YOY 20,145 180.4 8,682 Q3 133.6 10,524 169.2 3,976 6,130 Q2 3,500 217.6 287.9 351.0 446.3 654.8 95.1 147.5 5,333 Q1 3,698 5,472 7,069 10,524 20,145 3,048 9M ‘18 9M ‘19 9M’20 9M ‘21 9M ’22 9M ‘21 9M ‘22 SEPT 30 SEPT 30 STRONG REVENUE GROWTH 13
Slide 14: Strong 2022 Performance (QoQ) - Operating Profit
Strong 2022 Performance (QoQ) 14 O P E R AT I N G P R O F I T (PKR ‘M) Q3 22 vs Q3 21 Growth (PKR) Q3 22 vs Q3 21 Growth (USD) 1,662 1,383 112% 55% 1,000 853 784 Q3 22 vs Q2 22 Growth (PKR) Q3 22 vs Q2 22 Growth (USD) 20% 4% Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022
Slide 15: Operating Profit - Robust Profitability
Operating Profit (PKR ‘M) 4,045 1,662 Q3 2,316 784 1,383 Q2 763 496 1,000 996 1,431 2,316 4,045 769 Q1 9M‘18 9M‘19 9M‘20 9M‘21 9M‘22 9M ‘21 9M ‘22 SEPT30 SEPT30 MARGIN 13.4% 18.2% 20.2% 22.0% 20.1% 22.0% 20.1% 9M 19.7% 19.1% Q3 21.8% 22.6% Q2 25.2% 18.8% Q1 ROBUST PROFITABILITY
Slide 16: Strong 2022 Performance (QoQ) - Net Income
Strong 2022 Performance (QoQ) 16 NET INCOME (PKR ‘M) Q3 22 vs Q3 21 Growth (PKR) Q3 22 vs Q3 21 Growth (USD) 2,150 1,765 113% 56% 1,200 1,007 1,041 Q3 22 vs Q2 22 Growth (PKR) Q3 22 vs Q2 22 Growth (USD) 22% 6% Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022
Slide 17: Profit After Tax - Robust Profitability
Profit After Tax (PKR ‘M) 5,116 2,150 Q3 2,522 1,007 1,765 Q2 913 675 1,223 1,616 2,522 5,116 602 1,200 Q1 9M‘18 9M‘19 9M‘20 9M‘21 9M‘22 9M ‘21 9M ‘22 SEPT30 SEPT30 MARGIN 18.3% 22.4% 22.9% 24.0% 25.4% 24.0% 25.4% 9M 25.3% 24.8% Q3 26.1% 28.8% Q2 19.7% 22.5% Q1 ROBUST PROFITABILITY
Slide 18: Diverse Revenue Base: Geography & Industry Verticals
Revenue by Region 9M ' 22 Pakistan Middle East REVENUE % BY VERTICAL Europe North America 24% 23% 18% 21% 27% 23% 23% 20% 19% 18% 19% 23% 5% 14% 37% 33% 27% 31% 32% 34% 34% 28% 42% 45% 7% 10% 7% 21% 7% 3% 5% 24% 16% 4% 39% 38% 43% 43% 43% 34% 29% 45% 45% 40% BPO 9M ‘18 9M ‘19 9M‘20 9M ‘21 9M‘22 Q3 9
Slide 19: Understanding our clients' needs and help them evolve
Understanding our clients' needs and 19 help them evolve at the speed of tomorrow Serving across wide industry verticals
Slide 20: Low Capex & Positive Adjusted Free Cash Flow
Capital Expenditures (PKR ‘M) Adjusted Free Cash Flow (PKR ‘M) 1,171 436 445 169 Q3 Q3 -113 643 442 1,025 Q2 917 436 538 205 82 (113) Q2 (474) (387) 560 Q1 348 (264) (1,034) 230 571 257 643 1,171 90 Q1 9M ’18 9M ‘19 9M ‘20 9M ‘21 9M‘22 9M ‘21 9M ‘22 9M ’18 9M ‘19 9M ‘20 9M ‘21 9M‘22 9M ‘21 9M ‘22 SE
Slide 21: Systems we are a global company
Systems we are a global company 21 8 countries with our presence Middle East 42% & others North America & Europe 40% Pakistan 18%
Slide 22: Revenue and cost mix by currency
Revenue and cost mix by currency 22 Revenue Cost PKR 15% USD 24% Euro 5% USD 80% PKR 76%
Slide 23: Our Services
23 Our Services Helping Banks deliver their Next generation Cloud- digital strategies by launching native Core Banking new digital brands, digitizing and Digital Banking processes, modernizing implementation digital experiences, and services to help clients launching new innovative navigate their cl
Slide 24: Investments/Achievements
Investments/Achievements 24
Slide 25: Client Composition
Client Composition 25 Revenue mix 1% 2% 28% Pakistan 34% Middle East Export revenue Africa Local revenue Asia Pacific & Europe 66% 69% Client metrics » Exclusive Temenos Partner In Pk And Few Other Territories Client Metrics 2022 » Presence In 17+ Countries Active clients 83 » 75+ Banking Clients $1
Slide 26: Q&A
Q&A 26
Slide 27: Thank You
27 Thank You