Logo Yazilim Sanayi Ve Ticaret A.s. · BIST:LOGO
Logo Yazilim Sanayi Ve Ticaret A.s — Logo Yazılım Sanayi ve Ticaret A.Ş. — Ak Investment - Turkey Outlook Virtual Conference 2023
40 slides from Logo Yazilim Sanayi Ve Ticaret A.s's conference presentation, Apr 6, 2023
Slide 1: Ak Investment - Turkey Outlook Virtual Conference 2023 Presentation
Ak Investment - Turkey Outlook Virtual Conference 2023 Presentation Gülnur Anlaş CFO Canan Şenkut IR Director April 6, 2023
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 42% 61% IFRS revenue 1.54 bn TL Recurring Growing SaaS CAGR 2022 business revenue base in 2012-2022 revenues Dedicated R&D 1.500+ 47% 5.000+ 180.000+ spending employees wome
Slide 4: Key investment highlights
Key investment highlights Solid growth Leading provider of EAS solutions High profitability Extensive solutions& Latest technology services suit International expansion in Largest business partner emerging markets network in Turkey / 900+ www.logo.com.tr 4
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 39% 100% * 32,32% belongs
Slide 6: Logo milestones
Logo milestones 1980s-1990s 2000s 2010s 2020s ✓ 1984; establishment ✓ 2000; First-ever software ✓ Local acquisitions; Coretech ✓ Specialized acquisitions; company IPO in Turkey (2011), Netsis (2013), WorldBI Peoplise (Elba HR, 2020), ✓ Enterprise Applications- (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 6.4% Others; 26% Logo; 26% 450 420 392 343 366 2021* 331 Microsoft; 5% 2021 2022E 2023E 2024E 2025E 2026E SAP; 43% SMEs lead software market growth Government push for digitalisation Enterprise cloud adoption
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 900+ 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 4,011 leader in License 135,000 new features e-government maintenance Customers added in 2022 solutions Version 40% e-Invoice 63% releases Revenue CAGR e-Archive Logo coin New features i
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 135K customers # of customers ('000) ✓ High-quality customer service in addition to superior tech infrastructure differentiates eLogo in a very com
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) 48 48 48 47 49 48 49 User growth: 32% y/y 45 46 40 43 44 37 33 29 27 24 18 20 21 ARPU*: 366 TL 16 12 13 15 10 4 6 7 8 3 1 1 2 2 2 2 3 LTV/CAC**: 8 May'20 May'21 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 Meeting new user generation’s Evolving from content richness Mobile and Compliance with e- expectations & Customer approach to usability and web usage gov’t processes centric design accessibility approach Machine Learning enabled aPaas for ERP All products with the same docu
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 1,4K users is GSTN is a mobile source-code at end-2022 approved solution with Logo İşbaşı Only 8 solutions are Only 4 solutions are Basic functionali
Slide 21: 2022 results
A) logo 2022 results
Slide 22: Logo's value creation
Logo’s value creation Integrated approach with stakeholder focus Input ……………………………………… Output ……………………………… Value created ….………………… Focus ……………………….……… • Profitable growth, strong • Strong balance sheet • High corporate governance cash generation and liquidity Financial performance • Effective financ
Slide 23: Logo's value creation
Logo’s value creation Integrated approach with stakeholder focus Input ……………………………………… Output ……………………………… Value created ….………………… • # of total employees*: 1.507 • Women employee* ratio: 47% • Logo Türkiye employee Focus ……………………….……… • Gender equality and women • Women in executive engagement score
Slide 24: Sustainable and profitable growth
Sustainable and profitable growth Consolidated Revenues EBITDA USD mn USD mn CAGR: 14% 92 CAGR: 12% 85 74 77 32 70 28 30 67 62 25 25 23 22 47 47 18 20 37 14 26 10 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Revenues EBITDA TL mn TL mn
Slide 25: 2022: Sustained resilience
2022: Sustained resilience Exceeded revised targets Positive business momentum and strong pricing Consolidated Logo Türkiye • Strong IFRS and invoiced revenue growth y/y in Invoiced revenues Revenues TL and USD eqv. TL mn TL mn • Strong one-time and recurring revenue growth • Strong cloud revenue gr
Slide 26: Q422 figures
Q422 figures Consolidated Invoiced revenues Revenues EBITDA TL mn TL mn TL mn 81% y/y 86% y/y 19% y/y growth growth growth 677 522 99 84 373 281 Q421 Q422 Q421 Q422 Q421 Q422 EBIT EBT* TL mn TL mn -35% y/y 10% y/y growth growth 67 96 61 63 Q421 Q422 Q421 Q422 www.logo.com.tr 26 *Q4 impact: internati
Slide 27: Effective financial management and strong balance sheet
Effective financial management and strong balance sheet Consolidated High liquidity Strong FCF EPS* growth Net cash** TL mn TL mn TL mn TL mn 52% y/y 450% y/y 58% y/y 845 96% y/y growth growth growth growth 184 4.31 865 555 Financial 2.73 615 Investments 442 (ST<) 295 Cash and Cash 33 Eq. 259 229
Slide 28: Logo Türkiye: Strong and profitable real growth
Logo Türkiye: Strong and profitable real growth Logo Türkiye Logo Türkiye TL mn Invoiced revenues TL mn y/y +98% +95% growth • Strong one-time and recurring revenue 612 1,160 998 89% y/y growth growth Recurring • One-time sales driven by new license revenues sales, and following sales to existing e-
Slide 29: eLogo: e-Service platform and leader in digital transformation
eLogo: e-Service platform and leader in digital transformation Market leader in e-government solutions; e-invoice, e-archive, e-ledger, e-dispatch with 135K customers # of customers Invoiced revenues (‘000) (TL mn) CAGR: 58% CAGR: 58% 135 51 95 module&other 56 24 revenues 32 322 coin revenues 24 14
Slide 30: 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) 48 48 48 47 49 48 49 User growth: 32% y/y 45 46 40 43 44 37 33 29 27 24 18 20 21 ARPU*: 366 TL 16 12 13 15 10 4 6 7 8 3 1 1 2 2 2 2 3 LTV/CAC**: 8 May'20 May'21 Dec.'2
Slide 31: Strong growth and sustainable profitability at Total Soft
Strong growth and sustainable profitability at Total Soft Total Soft TL mn y/y growth +107% +60% +28% -16% 544 • 2021 offers a high base across the board due to strong project additions recorded in Q421. • 2022 margins were impacted negatively 262 by interim wage adjustment due to 217 inflation and
Slide 32: Invoiced Revenue vs IFRS Revenue
Invoiced Revenue vs IFRS Revenue Consolidated Recurring Revenue Growth Ensuring Predictability Invoices & IFRS Revenues Recurring Invoices Recurring Invoices/Invoices TL mn 91% TL mn % 101% y/y growth y/y growth CAGR: 50% IFRS Revenues = 1,009 Invoices - Net Deferrals 1,658 1,541 Total Invoices 52%
Slide 33: Cost of Sales and Operating Expenses
Cost of Sales Operating Expenses Consolidated Consolidated TL mn TL mn % of IFRS 21% ↓ 16% ↓ 15% ↑ 52% ↓ % of IFRS Revenues 19% 24% Revenues y/y +93% 1,541 +86% +73% +133% growth 154% 803 767 y/y 363 growth 143 417 327 247 229 2021 2022 175 143 98 Revenue Cost of Sales R&D Expense S&M Expense G&A Ex
Slide 34: Guidance
Guidance 2022 2023 guidance +92% Invoiced Revenue (TL mn) 119 3,187 829 2,239 498 41 1,659 1,121 IFRS Revenue (TL mn) +81% 829 107 2,783 544 1,541 1,887 35 964 EBITDA** (TL mn) +72% 195 848 122 493 686 -67 392 -35 Margins 41% 22% n.m. 32% 36% 23% n.m. 30% EBT (TL mn) +96% 846 89 890 -56 454 -78 437
Slide 35: Appendix
Appendix
Slide 36: Invoiced Revenue Growth and Breakdown
Invoiced Revenue Growth and Breakdown 2017 2018 2019 2020 2021 2022 5-yr-CAGR Invoiced revenues-consolidated (TL mn) 259.1 333.0 460.1 617.7 866.5 1,657.8 45% y/y growth 47% 29% 38% 34% 40% 91% One-time 123.6 152.5 203.0 233.5 339.3 648.9 39% One-time - TR 83.4 95.0 130.1 145.6 225.1 379.2 35% share
Slide 37: eLogo: e-Service platform and leader in digital transformation
eLogo: e-Service platform and leader in digital transformation Latest communique’s details (January 22nd, 2022) BEFORE AFTER (eff. as of July 1st, 2022) Companies w/sales 4mio₺*+, Companies w/sales 5mio₺+, Companies in some sectors w/sales 1mio ₺+, e-invoice Specific sectors with no sales threshold
Slide 38: 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 39: 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 40: Thank you
Thank you
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