Ard Grup Bilisim Teknolojileri As · BIST:ARDYZ

Ard Grup Bilisim Teknolojileri As — Q4 2022 Earnings Presentation

34 slides from Ard Grup Bilisim Teknolojileri As's earnings presentation, Apr 10, 2023

  1. Slide 1: Investor Presentation 4Q 2022 Figures

    1 INVESTOR PRESENTATION 4Q 2022 FIGURES 10.04.2023

  2. Slide 2: Headlines, Summary, Financials, Investment Thesis, Appendix

    3 01 02 03 04 05 Headlines Summary Financials Investment Appendix Thesis Page 3 Page 4 Page 8 Sayfa 28 Page 30

  3. Slide 3: Net Sales, EBITDA, Net Income overview

    Net Sales, EBITDA, m₺ Net Income, m₺ 4 555 Net Sales mTL Annualy* %100 Growth 600,0 500,0 m₺ 70% 78% 90% 80% 350,0 300,0 59% 60% 60% 350,0 300,0 55% 56% 55% 01.01.2022-31.12.2022 financial period 63% 70% 59% 54% 55% 250,0 250,0 54% 319 400,0 60% EBITDA 50% 200,0 58% 59% 200,0 54% mTL 300,0 555,3 318

  4. Slide 4: 4Q 2022 Headlines

    4Q 2022 HEADLINES 5 Capital Yield: 49% of ROE* Beating Market Interest Rate Financials: Sustainable Growth Continued Leverage: Low Indebtedness Creates Significant Borrowing Capacity Long FX Position: Foreign Exchange Surplus * Return on Equity

  5. Slide 5: Headlines, Summary, Financials, Investment Thesis, Appendix

    6 01 02 03 04 05 Headlines Summary Financials Investment Appendix Thesis Page 3 Page 6 Page 8 Page 28 Page 30

  6. Slide 6: Executive Summary

    EXCUTIVE SUMMARY 7 DEBT LEVEL MARGINS Despite the rising sales between 2019 and 2021, the decline in While the rise in the revenue share of trade sales with low margin the working capital sales share indicates efficiency. However, in 2022 will affect the gross profit margin, the net profit margin, t

  7. Slide 7: Headlines, Summary, Financials, Investment Thesis, Appendix

    8 01 02 03 04 05 Headlines Summary Financials Investment Appendix Thesis Page 3 Page 6 Page 8 Page 28 Page 30

  8. Slide 8: Solid Performance

    9 SOLID PERFORMANCE 2022/12 & 2021/12 PERIODICAL 4Q22 & 4Q21 QUARTERLY 99,6% REVENUE 127,7% 193,4% GROWTH 97,2% EBITDA * 161,5% GROWTH NET INCOME 102,6% 188,1% GROWTH EBITDA* 57,4% 51,2% MARGIN *Other Income / Expense from Operating Activities are included in EBITDA

  9. Slide 9: Stable Growth in Sales

    10 4Q 2022 RESULTS Stable Growth in Sales QUARTERLY FIGURES Net Sales (mTL) 350  Net sales raised by 193,4% on a quarterly basis compared to the same period of the previous year and amounted to 300,7 m 300 300,7 TL. 250 200 150 100 102,5 50 0 4Q21 4Q22

  10. Slide 10: Improvement in Sales Supported Profitability

    11 4Q 2022 RESULTS Improvement in Sales Supported Profitability QUARTERLY FIGURES EBITDA (mTL) Net Income (mTL) 180 51,2% 180 52,0% 160 160 140 153,9 140 156,4 120 120 100 100 80 57,4% 80 53,0% 60 60 58,8 54,3 40 40 20 20 0 0 4Q21 4Q22 4Q21 4Q22  EBITDA improved by 161,5% QoQ to 153,9 mTL, while th

  11. Slide 11: Net Sales Maintained Growth Trend in 2022

    12 4Q 2022 RESULTS Net Sales Maintained Growth Trend in 2022 PERIODICAL FIGURES Net Sales (mTL) 600  Periodical net sales increased by 99,6% in 2022/12 compared to 555,3 500 the same period of the previous year and amounted to 555,3 mTL. 400  The pandemic increased customers' software and technolo

  12. Slide 12: Sustainability in Margins Continued

    13 4Q 2022 RESULTS Sustainability in Margins Continued PERIODICAL FIGURES EBITDA (mTL) Net Income (mTL) 57,4% 350 350 55,2% 300 318,9 300 306,5 250 250 58,1% 200 200 54,4% 150 150 161,7 151,3 100 100 50 50 0 0 12M21 12M22 12M21 12M22  Periodical EBITDA augmented by 97,2% and reached 318,9  Periodi

  13. Slide 13: The Rise in Sales and Low Opex Supported EBITDA

    14 4Q 2022 RESULTS The Rise in Sales and Low Opex Supported EBITDA  The rising revenue and margins and low opex supported EBITDA.  R&D expenditures create expectations for EBITDA growth in the coming period. ∆ : Change

  14. Slide 14: Sustainable Net Income Growth Continued

    15 4Q 2022 RESULTS Sustainable Net Income Growth Continued  The rise in net profit continued thanks to the factors supporting the EBITDA growth.  Increasing R&D investments and the change in working capital put downward pressure on the cash position. This situation created the net financing cost.

  15. Slide 15: 555,3 mTL of Annualized Revenue in 2022/12

    16 4Q 2022 RESULTS 555,3 mTL of Annualized Revenue in 2022/12 ANNUAL NET SALES DEVELOPMENT (mTL) 114% CAGR* 100% 555,3 2019– 2022/12 122,5% 278,2 125,2 120,8% 56,8 2019 2020 2021 2022/12 *CAGR : Compounded Annual Growth Rate Total Sales TL M

  16. Slide 16: 318,9 mTL of Annualized EBITDA in 2022/12

    17 4Q 2022 RESULTS 318,9 mTL of Annualized EBITDA in 2022/12 ANNUAL EBITDA DEVELOPMENT (mTL) 114% CAGR* 97,2% 318,9 2019– 2022/12 117,3% 161,7 129,3% 74,5 32,5 2019 2020 2021 2022/12 *CAGR: Compounded Annual Growth Rate EBITDA TL M

  17. Slide 17: Rising Receivables Augmented Working Capital

    18 4Q 2022 RESULTS The Rising Receivables with Solid Top-Line Augmented Working Capital Working Capital Working Capital Working Capital Analysis 600 70% 66,2% 62,4% mTL 2018 2019 2020 2021 2022/12 500 78 60% Trade Receivables 25,0 40,9 62,6 116,1 462,1 400 50% Inventory + Other Current Assets 0,8 0,

  18. Slide 18: Rising Trade Receivables and Stocks Created Working Capital Need

    19 4Q 2022 RESULTS Rising Trade Receivables and Stocks Created Working Capital Need  Along with the increase in sales in the first three quarters of the year, there was a significant increase in trade receivables due to project software and EDS projects. This increase increased the working capital

  19. Slide 19: Net Cash Position Continued

    20 4Q 2022 RESULTS Net Cash Position Continued Despite Rising R&D Investments, Financial Debt and Working Capital Net Cash Position Net Cash/EBITDA Net Cash & Equity & Financial Leverage 20 0,3 0,2 TLm 2018 2019 2020 2021 2022/12 10 0,2 3,4 Cash and Cash Equivalents 0,1 1,7 27,3 64,0 24,6 7,8 Financ

  20. Slide 20: Foreign Exchange Position and Credit Maturity Breakdown

    21 4Q 2022 RESULTS Foreign Exchange Position Credit Maturity Breakdown 50 16,0% 14,5% 45 14,0% 40 12,0% 35 10,0% 3-12 Mounth 30 25 8,0% 9% 46,93 0-3 Mounth 20 6,0% 80% 4,7% 1-2 Year 15 4,0% 10 7% 5 0,3% 2,0% 8,12 2,05 0 0,0% 2-3 Year 2020/12 2021/12 2022/12 4% Foreign Exchange Position Foreign Excha

  21. Slide 21: R&D Investments Will Be Reflected on Profitability

    22 4Q 2022 RESULTS R&D Investments Made in Previous Periods Will Be Reflected on Profitability Investments (mTL) Seasonality (mTL) 200 60,0% 120% 350 180 96% 51,3% 50,0% 100% 300 160 170,4 83% 83% 89% 77% 67% 61% 250 140 41,5% 80% 75% 40,0% 81% 200 120 60% 34,7% 51% 67% 53% 150 100 31,1% 30,0% 28,5%

  22. Slide 22: 49% ROE Well Above Interest Yield

    23 4Q 2022 RESULTS 49% ROE Well Above Interest Yield  The liquidity level of the balance sheet continued ROE 800 to increase with each period. 700 2022/12 600 48,7%  The return on equity is above the bond yield, indicating that the capital is being used efficiently. Equity (TLm) 500 400 300 2021 4

  23. Slide 23: Financial Ratios: Liquidity and Investment

    24 4Q 2022 RESULTS Financial Ratios Liquidity Ratios 2022/12 2021/12 2020/12 Reference Current Ratio 2,24 5,53 6,17 1,0-1,5 Liquidity Ratios 2,19 5,40 5,94 0,8-1,0 Investment Ratios (12M Trailing) 2022/12 2021/12 2020/12 Reference Investment/Depreciation 759,3% 653,2% 850,3% >%100 Investment/Net Sal

  24. Slide 24: Financial Ratios: Debt

    25 4Q 2022 RESULTS Financial Ratios Debt Ratios 2022/12 2021/12 2020/12 Reference Total Debt/Total Assets 29,4% 10,1% 10,6% <%40 Short-Term Fin. Debt/Equity 9,3% 1,7% 2,7% <100% Coverage Ratio 241,2 -79,8 78,1 >3 Net Debt/EBITDA 0,0 -0,3 -0,2 <4 Short-Term Liabilities/Assets 28,3% 9,4% 7,9% Sector L

  25. Slide 25: Financial Ratios: Profitability

    26 4Q 2022 RESULTS Financial Ratios Profitability Ratios (12MTrailing) 2022/12 2021/12 2020/12 Reference Gross Margin 62,8% 77,5% 70,3% Sector EBIT Margin 53,3% 53,8% 53,4% Sector EBITDA Margin 57,4% 58,1% 59,4% Sector Net Margin 55,2% 54,4% 52,5% Sector ROE 48,7% 46,6% 37,8% >Bond Yield ROA 33,2% 4

  26. Slide 26: Share Performance

    27 4Q 2022 RESULTS 14 Share Performance (TL) 2.500 Mcap (TL) 1.360,0 mn TL million TL 10.04.2023 12 2.000 8,00 ₺ 10 1.500 8 6 1.000 4 500 2 0 0  Return of 887% from the date of the public offering until the 10th April.  Strong financial figures and corporate governance principles supported perform

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

    28 01 02 03 04 05 Headlines Summary Financials Investment Appendix Thesis Page 3 Page 6 Page 8 Page 28 Page 30

  28. Slide 28: Investment Thesis

    29 4Q 2022 RESULTS Investment Thesis Rising software expenditure all over the world with the pandemic makes the sector strategic; R&D and Technocity incentives and low tax rate; Being one of the fastest growing technology companies in Turkey by the Deolitte Technology Fast 50 Turkey since 2016; Low

  29. Slide 29: Headlines, Summary, Financials, Investment Thesis, Appendix

    30 01 02 03 04 05 Headlines Summary Financials Investment Appendix Thesis Page 3 Page 4 Page 8 Page 28 Page 30

  30. Slide 30: Appendix

    31 APPENDIX

  31. Slide 31: Financial Statements

    4Q 2022 RESULTS % rit st Assets 361.277.523 '891.473.629 Net Sales 278.196.5141 '555.321.383 Cash & Cash Equivalent 64.022.150 24.646.077 Change 0.0% 99,6% Trade Receivables +16.097.883 462.065.365 eras (62.568.359) (206,403,924) Other Current Assots 2.626.735 24,509,478 Gross Profit 215,628,152 348

  32. Slide 32: Milestones of Ard Group

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

  33. Slide 33: 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

  34. Slide 34: Investor Relations Contacts

    35 INVESTOR RELATIONS CONTACTS Semih Kökden Investor Relation Manager T: 0 312 299 25 95 investor.relations@ardgroup.com.tr THANK YOU For detailed information, please contact us by e-mail investor.relations@ardgroup.com.tr

Ard Grup Bilişim Teknolojileri A.Ş. — Q4 2022 Earnings Presentation on 6ix