Ard Grup Bilisim Teknolojileri As · BIST:ARDYZ
Ard Grup Bilisim Teknolojileri As — Q3 2022 Earnings Presentation
34 slides from Ard Grup Bilisim Teknolojileri As's earnings presentation, Dec 1, 2022
Slide 1: Investor Presentation 3Q 2022 Figures
1 INVESTOR PRESENTATION 3Q 2022 FIGURES 01.12.2022
Slide 2: Headlines, Summary, Financials, Investment Thesis, Appendix
2 01 02 03 04 05 Headlines Summary Financials Investment Appendix Thesis Page 3 Page 4 Page 8 Sayfa 28 Page 30
Slide 3: Key figures: net sales, EBITDA, net income, market cap
Net Sales, EBITDA, m₺ Net Income, 3 255 Net Sales mTL Annualy* %45 Growth 400,0 350,0 m₺ 78% 80% 78% 250,0 64% 63% 250,0 m₺ 57% 58% 57% 200,0 63% 200,0 01.01.2022-30.09.2022 financial period 300,0 62% 56% 76% 61% 165 EBITDA 55% 250,0 150,0 150,0 73% 74% 59% 60% 54% mTL 54% 200,0 357,1 72% 58% 223,9
Slide 4: 3Q 2022 Headlines
3Q 2022 HEADLINES 4 Capital Yield: 43% of ROE* beating market interest rate Financials: Sustainable growth continued Leverage: Low Indebtedness Creates Significant Borrowing Capacity Exchange Position: Foreign exchange surplus in the rising exchange term * Return on Equity
Slide 5: Headlines, Summary, Financials, Investment Thesis, Appendix
5 01 02 03 04 05 Headlines Summary Financials Investment Appendix Thesis Page 3 Page 6 Page 8 Page 28 Page 30
Slide 6: Executive Summary
EXCUTIVE SUMMARY 6 DEBT LEVEL MARGINS Despite the rising sales between 2019 and 2021, the decline in Quarterly gross margin, which was 75% in 3Q21, increased to 89% the working capital sales share indicates efficiency. However, in 3Q22. the relative increase in the need for working capital in the th
Slide 7: Headlines, Summary, Financials, Investment Thesis, Appendix
7 01 02 03 04 05 Headlines Summary Financials Investment Appendix Thesis Page 3 Page 6 Page 8 Page 28 Page 30
Slide 8: Solid Performance
8 SOLID PERFORMANCE 2022/09 & 2021/09 PERIODICAL 3Q22 & 3Q21 QUARTERLY REVENUE 127,7% 44,9% 38,1% GROWTH EBITDA * 60,5% 75,9% GROWTH NET INCOME 54,7% 68,6% GROWTH EBITDA* 64,8% MARGIN 71,3% *Other Income / Expense from Operating Activities are included in EBITDA
Slide 9: Stable Growth in Sales
9 3Q 2022 RESULTS Stable Growth in Sales QUARTERLY FIGURES Net Sales (mTL) 120 ➢ Net sales raised by 38.1% on a quarterly basis compared to the same period of the previous year and amounted to 100.1 m 100 100,1 TL. 80 72,5 60 40 20 0 3Q21 3Q22
Slide 10: Improvement in Sales Supported Profitability
10 3Q 2022 RESULTS Improvement in Sales Supported Profitability QUARTERLY FIGURES EBITDA (mTL) Net Income (mTL) 71,3% 75 100 71,4 90 65 80 64,9% 55 70 56,0% 60 53,1% 64,9 45 50 40,6 40 35 30 38,5 20 25 10 15 0 3Q21 3Q22 3Q21 3Q22 ➢ EBITDA improved by 75.9% QoQ to 71.4 mTL, while the ➢ Net profit inc
Slide 11: Net Sales Maintained Growth Trend in 2022
11 3Q 2022 RESULTS Net Sales Maintained Growth Trend in 2022 PERIODICAL FIGURES Net Sales (mTL) 300 ➢ Periodical net sales increased by 44.9% in 2022/09 compared to the same period of the previous year and amounted to 254.7 mTL. 250 254,7 ➢ The pandemic increased customers' software and technology 2
Slide 12: Sustainability in Margins Continued
12 3Q 2022 RESULTS Sustainability in Margins Continued PERIODICAL FIGURES EBITDA (mTL) Net Income (mTL) 59,6% 54,8% 180 160 160 165,0 140 59,2% 140 150,1 53,6% 120 120 100 100 102,9 80 97,0 80 60 60 40 40 20 20 0 0 9M21 9M22 9M21 9M22 ➢ Periodical EBITDA augmented by 60.5% and reached 165.0 ➢ Period
Slide 13: The Rise in Sales and Low Opex Supported EBITDA
13 3Q 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
Slide 14: Sustainable Net Income Growth Continued
14 3Q 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.
Slide 15: 357.1 mTL of Annualized Revenue in 2022/09
15 3Q 2022 RESULTS 357.1 mTL of Annualized Revenue in 2022/09 ANNUAL NET SALES DEVELOPMENT (mTL) 126% CAGR* 28.4% 357.1 2019– 2022/06 122.5% 278.2 125.2 120.8% 56.8 2019 2020 2021 2022/09 *CAGR : Compounded Annual Growth Rate Total Sales TL M
Slide 16: 223.9 mTL of Annualized EBITDA in 2022/09
16 3Q 2022 RESULTS 223.9 mTL of Annualized EBITDA in 2022/09 ANNUAL EBITDA DEVELOPMENT (mTL) 136% CAGR* 38.5% 223.9 2019– 2022/06 117.3% 161.7 129.3% 74.5 32.5 2019 2020 2021 2022/09 *CAGR: Compounded Annual Growth Rate EBITDA TL M
Slide 17: Rising Receivables Augmented Working Capital
17 3Q 2022 RESULTS The Rising Receivables with Solid Top-Line Augmented Working Capital Working Capital Working Capital 300 63,6% 70% 66,2% Working Capital Analysis 29 60% 250 mTL 2018 2019 2020 2021 2022/09 200 50% 44,9% 34,1% Trade Receivables 25,0 40,9 62,6 116,1 251,3 40% 150 Inventory + Other C
Slide 18: Rising Trade Receivables and Stocks Created Working Capital Need
18 3Q 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
Slide 19: Rising R&D Investments and Working Capital Pressure on Cash Position
19 3Q 2022 RESULTS Rising R&D Investments and Working Capital Downward Pressure on Cash Position Net Cash Position Net Cash/EBITDA Net Cash & Equity & Financial Leverage 30 23,3 0,3 0,2 20 TLm 2018 2019 2020 2021 2022/09 0,2 Cash and Cash Equivalents 0,1 1,7 27,3 64,0 18,8 10 3,4 0,1 Other Receivabl
Slide 20: Foreign Exchange Position and Credit Maturity Breakdown
20 3Q 2022 RESULTS Foreign Exchange Position Credit Maturity Breakdown 14,5% 50 16,0% 45 14,0% 3-12 Mounth 40 35% 12,0% 35 10,0% 30 25 8,0% 46,93 20 0-3 Mounth 4,7% 6,0% 45% 15 2,0% 4,0% 10 2,0% 5 8,12 9,33 0 0,0% 1-5 Year 20% 2020/12 2021/12 2022/09 Foreign Exchange Position Foreign Exchange Positi
Slide 21: R&D Investments Made in Previous Periods Will Be Reflected on Profitability
21 3Q 2022 RESULTS R&D Investments Made in Previous Periods Will Be Reflected on Profitability Investments (mTL) Seasonality (mTL) 120 60,0% 120% 140 51,3% 112,4 83% 100 50,0% 96% 120 100% 81% 77% 75% 83% 89% 80 41,5% 1,3 40,0% 100 80% 67% 34,7% 61% 80 5,2 31,7% 60% 60 30,0% 51% 28,5% 67% 60 21,9% 4
Slide 22: 43% ROE Well Above Interest Yield
22 3Q 2022 RESULTS 43% ROE Well Above Interest Yield ➢ The liquidity level of the balance sheet continued ROE to increase with each period. 600 500 2022/09 43,0% ➢ The return on equity is above the bond yield, 475 indicating that the capital is being used efficiently. Equity (TLm) 400 2021 300 46,6%
Slide 23: Financial Ratios: Liquidity and Investment
23 3Q 2022 RESULTS Financial Ratios Liquidity Ratios 2022/09 2021/12 2020/12 Reference Current Ratio 3,46 5,53 6,17 1,0-1,5 Liquidity Ratios 3,39 5,40 5,94 0,8-1,0 Investment Ratios (12M Trailing) 2022/09 2021/12 2020/12 Reference Investment/Depreciation 591,9% 653,2% 850,3% >%100 Investment/Net Sal
Slide 24: Financial Ratios: Debt
24 3Q 2022 RESULTS Financial Ratios Debt Ratios 2022/09 2021/12 2020/12 Reference Total Debt/Total Assets 16,8% 10,1% 10,6% <%40 Short-Term Fin. Debt/Equity 7,0% 1,7% 2,7% <100% Coverage Ratio 248,0 -79,8 78,1 >3 Net Debt/EBITDA 0,1 -0,3 -0,2 <4 Short-Term Liabilities/Assets 15,1% 9,4% 7,9% Sector L
Slide 25: Financial Ratios: Profitability
25 3Q 2022 RESULTS Financial Ratios Profitability Ratios (12MTrailing) 2022/09 2021/12 2020/12 Reference Gross Margin 72,6% 77,5% 70,3% Sector EBIT Margin 57,3% 53,8% 53,4% Sector EBITDA Margin 62,7% 58,1% 59,4% Sector Net Margin 57,2% 54,4% 52,5% Sector ROE 43,0% 46,6% 37,8% >Bond Yield ROA 35,9% 4
Slide 26: Share Performance
26 3Q 2022 RESULTS Share Performance (TL) Mcap (TL) 12 11,07 ₺ 2.500 million TL 1.881,9 mn TL 10 29.11.2022 2.000 8 1.500 6 1.000 4 %1265 500 2 Performace Since IPO 0 0 ➢ Return of 1265% from the date of the public offering until the 29th November ➢ Strong financial figures and corporate governance
Slide 27: Headlines, Summary, Financials, Investment Thesis, Appendix
27 01 02 03 04 05 Headlines Summary Financials Investment Appendix Thesis Page 3 Page 6 Page 8 Page 28 Page 30
Slide 28: Investment Thesis
28 3Q 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
Slide 29: Headlines, Summary, Financials, Investment Thesis, Appendix
29 01 02 03 04 05 Headlines Summary Financials Investment Appendix Thesis Page 3 Page 4 Page 8 Page 28 Page 30
Slide 30: Appendix
30 APPENDIX
Slide 31: Balance Sheet
3Q 2022 RESULTS 2OANZ Audited 361.277.5284 Cash & Cash Equivalent 64,022.152 Trade Receivables 116.087.883, Other Current Assets. 2.626.735 Inventories 4.398.437 Current Assots 187.135.207 Investment Property 26.200 Tangible Assets 9.259.797 Intangible Assets 168.856.320 Fixed Assots a ||| Equity an
Slide 32: Milestones of ARD Group
32 MILESTONES OF ARD GROUP With the change of type, the Public offering of Ard Grup company title was changed to ARD Information Technologies on GROUP BİLİŞİM TEKNOLOJİLERİ February 6, 2020 A.Ş. Establishment of ARD Entry of ARD Group Information Grup Bilişim in Opening of ARD Bilişim London, Techno
Slide 33: Disclaimer
33 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
Slide 34: Investor Relations Contacts
34 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
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