Formula Systems (1985) Ltd. · TASE:FORTY
Formula Systems (1985) — Debt Investor Presentation (March 2019)
20 slides from Formula Systems (1985)'s debt investor presentation, Mar 13, 2019
Slide 1: a £ @ rd > a E S
a £ @ rd > a 2 3 E S 2
Slide 2: Forward-looking statements and offering disclaimer
2 ● Certain statements and other information included in this presentation may constitute "forward - looking statements" within the meaning of Section 27 A of the Securities Act of 1933 (the "Securities Act"), Section 21 E of the Securities Exchange Act of 1934 and the United States Private Securiti
Slide 3: Holding company investment strategy
3 H olding company Solid, proven and clear investment strategy in global IT and software companies Focusing on a controlling interest in Investees Providing added value to investees - strategic insight, operational support and global relationships Conservative financial management relying on diverse
Slide 4: Formula dual-listed on TASE and NASDAQ
4 ● Formula is dual - listed on TASE (99%) and NASDAQ (1%) ● 42 . 0 % ( 1 ) held by over ~ 5 % ISR Financial Institutions – Clal ( 8 . 6 % ), Menora ( 6 . 9 % ), Phoenix ( 6 . 0 % ), Meitav( 5 . 6 % ), Harel ( 5 . 2 % ), Psagot ( 5 . 1 % ) and Yalin ( 4 . 6 % ) ● Subs – 3 publicly traded and 3 priva
Slide 5: Companies Portfolio
A leading Israeli service Integrator A leading global provider of software solutions for the insurance and financial industry A global provider of software technology and services for digital transformation A provider of proprietary payroll software solution for processing traditional payroll stubs
Slide 6: Dividend Yield and Composition of Book Value
Dividend Yield 6 % 6 Composition o f Book Value (September 2018) $ 485 Million 35 % 24 % 22 % 9 % 4 % $ 28.9 Million 14 5 7 3 1 Investment Portfolio Dividends Inflow in 2018 ● ● ● ● ● 5 % 1 % 75 % Dividend Policy: 50 % ● ● ● ● ● ● ● Cash 1.4 6.4 0.3 13.9 5.0 3.3
Slide 7: Portfolio Book Value and Fair Value
Private Companies Matrix $114,361 $371,447 Sapiens $169,400 $327,997 Magic $108,780 $ 189,671 Total Traded $392,541 $889,115 Michpal $21,709 $21,709 TSG $25,214 $ 25,214 Inysnc $ 4,604 $ ϰ , 6 Ϭ 4 Total Private $ 51, ϱϮϳ $ ϱϭ , ϱϮϳ Total Portfolio $444,068 $ ϵϰ 0,642 Other assets $6,574 $6,574 $450,
Slide 8: Financial Debt Composition Stand Alone
BOND SERIES A ( 2.8 %) NIS 205,266,450 Par - Value ilAA - A 1 .il Moody’s Secured by shares Average duration as of March 2019 – 2.7 Last Pmt. July 2024 8 Financial Debt C omposition Stand Alone BOND SERIES B (2.78%) USD 31,871,500 Par - Value ilA+ A1.il Moody’s $20.5 millin converted to shares (NI
Slide 9: Formula at a glance
OPERATING PROFIT In $ millions Formula at a glance* YE 2017 / 9 M - 2018 Based on consolidated financial statements Established: 1985 Employees: ~15,000 Market Cap (3/2019) : NIS2.3B Stand Alone LTV (3/2019) : ~8.6% REVENUES GROWTH In $ millions * From 2012 to 2014, data is Based on US GAAP From 201
Slide 10: Matrix at a glance
Matrix at a glance* * All figures are in millions of NIS STATS Founded : 1989 Traded since 1993 : MTRX Dividend policy of 75 % of net income ( ϯ . ϲ % yield) Formula Systems 49.2 % More than 50 % Free Float (TASE - TA 90 ) OFFERING REVENUE NIS ϯ . Ϯ B CAGR 2013 - 2018 10.4 % EBITDA 201 ϴ NIS 25 ϭ .3
Slide 11: Matrix financial highlights and future strategy
Matrix NIS million 2018 2017 18Vs17 2016 17Vs16 Revenue 3,168.0 2,857.0 11% 2,545.0 12% Gross Profit 465.1 420.3 11% 392.5 7% Gross margin 14.7% 14.7% 15.4% Operating Income 220.6 198.0 11% 187.3 6% EBITDA 251.3 222.7 13% 212.3 5% Operating margin 7.9% 7.8% 8.3% Operating Cash Flow 124.6 180.8 (31%)
Slide 12: Sapiens at a glance
Sapiens at a glance* * All figures are in millions of USD STATS Founded : 1982 Traded since 1992: SPNS Dividends up to 50 % of net income no dividend policy Formula Systems 48.1% OFFERING REVENUE USD 290.3 2019 GUIDANCE $318M - 323M (9.5% - 11.3%) CAGR 2013 - 2018 16.5 % EBITDA 2018 USD 43M 2019 GUI
Slide 13: Sapiens financial highlights and future strategy
Sapiens USD million 2018 2017 18Vs17 2016 17Vs16 Non GAAP Revenue 290.3 272.0 7% 216.2 26% Non GAAP Gross Profit 122.9 106.7 15% 91.87 16% Gross Margin 42.3% 39.2% 42.4% EBITDA 43.3 26.9 61% 32.5 (17%) Operating Margin 14.9% 9.9% 15% Operating Cash Flow 27.7 9.3 198% 26.0 ( 64%) FINANCIAL HIGHLIGHTS
Slide 14: Magic at a glance
Magic at a glance * STATS Founded : 1983 Traded since 1991 : MGIC Dividend policy of ϳϱ % of net income (~ 3 . 6 % yield) OUR BUSINESS NON - GAAP OPERATING PROFIT Formula Systems 45.2 % More than 50 % Free Float TASE - TA 90 ; NASDAQ Foot Print: 24 /’ 000 Office/ Customers Repeated: 80 % ENTERPRISE
Slide 15: Magic financial highlights and future strategy
Magic USD million 2018 2017 18Vs17 2016 17Vs16 Non GAAP Revenue 284.4 258.1 10% 201.6 28% Non GAAP Gross Profit 94.4 89.0 6% 73.6 21% Gross margin 33.2% 34.5% 36.5% EBITDA 40.7 35.9 13% 28.6 26% Operating margin 14.3% 13.9% 14.2% Operating Cash Flow 24.1 25.5 (5%) 28.0 (9%) FINANCIAL HIGHLIGHTS FUTU
Slide 16: TSG at a glance
TSG at a glance* STATS Founded: 1999 as Ness - TSG; June 2014 - TSG Formula Systems 50.0% (IAI 50%) – Acquired in May 2016 OFFERING REVENUE 18/17 $ 66M / $67M EBITDA 18/17 $ 6.0M / $6.6M EMPLOYEES 18 / 17 403 / 368 REVENUES GROWTH REVENUES BY GEOGRAPHY Command & Control (Data Fusion Systems and Stra
Slide 17: Michpal
Michpal STATS Over 1 m Monthly Pay Slips Founded in 1983 - Over 30 years of experience CUSTOMERS ~8,000 EMPLOYEES ~64 FUTURE STRATEGY ● Unified reporting ● Expend services SHORT STORY: • Michpal Micro Computers ( 1983 ) Ltd . , is a developer of payroll software platform . • The company sells perpet
Slide 18: inSync
inSync FUTURE STRATEGY Cross - selling SHORT STORY: InSync is a U.S. based full - service provider of consulting and staffing solutions for IT, engineering and other professional staff (i.e. accounting and finance, administrative, customer service, healthcare, human resources, manufacturing, marketi
Slide 19: Formula Systems Portfolio Overview
Formula Systems Portfolio Overview Market Cap: NIS 2.3B (March 2019); Issuer Credit Rating: ilA +/stable (S&P) and A1.il ( Midrug ) 19
Slide 20: Formula Systems
Formula Systems
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