Slide 1: Investor's Briefing HY 2024
INVESTOR’S BRIEFING HY 2024 Dated: 02nd September 2024 www.systemsltd.com 1
Slide 2: Agenda
Agenda Systems Limited - 2 Key Facts & Strategic Plan 4 Financial At a glance Market Overview & Way Forward Performance 5ESG Q&A 2
Slide 3: At a glance
At a glance Systems Limited is a leading global digital transformation IT consulting and services provider, boasting a global team of over 7000 innovative minds. We pioneer the creation of cutting-edge enterprise solutions, shaping our clients' digital footprint for enduring growth and profitability
Slide 4: Key Stats & Market Overview
Key Stats & Market Overview 4 4
Slide 5: Fact Sheet
Fact Sheet Revenue 9,839 Awards & Recognitions 53,435 EBITDA PKR ’M PKR ’M 6,205 31,023 28,827 4,714 3,542 15,304 2,406 9,877 1,559 7,536 MEA Delivery partner of the year 2019 2020 2021 2022 2023 HY 2024 2019 2020 2021 2022 2023 HY 2024 *One off trading transaction (CLOS) has been excluded in 2022 *
Slide 6: Investment Highlights / Value Propositions
Investment Highlights / Value Propositions Digital, data & AI, & cloud Emerging technologies Growth We elevate possibilities and We amplify human possibilities Our innovative solutions and strategic unlock new growth horizons through generative AI and deliver prowess propel you towards through innov
Slide 7: Global Delivery Model
Global Delivery Model MEA KSA APAC PK Our talent pool is characterized UAE Saudi Arabia Australia Lahore by its global diversity and Egypt Bahrain Singapore Karachi inclusivity. Qatar Malaysia Islamabad We take great pride in our workforce, South Africa Faisalabad recognizing them as our greatest as
Slide 8: Target Market & Customers HY 2024
Target Market & Customers HY 2024 We have a strong customer base in most of the industry verticals which not only minimizes our concentration risk but also gives us the competitive advantage by developing resources with cross industry knowledge. Revenue by Vertical Vertical Customer Split * 11% BFSI
Slide 9: Market Opportunity
Market Opportunity The Cyber-Human Fusion Generative AI will take over 46% of organizations are planning to invest By 2025, the global market for generative AI in human-computer interfaces (HCIs) in the is expected to reach $26.8 billion, driven by next two years to facilitate seamless human- its ca
Slide 10: The rise of AI
The rise of AI Impact Transition from growth to Unit-level productivity enhancing scalability overall organizational performance Reduced contextual Increased efficiency and dependence fuels innovation reduced cost Emerging tech bring novel challenges Algorithm-driven enterprises Customers, inspired
Slide 11: How do we differentiate ourselves
How do we differentiate ourselves Employer Optimally scaled scaled & skilled Employee Customer of choice and skilled ownership longevity We attract and have We provide a personalized Our values are shaped by Most of our clients have been access to the best and and laser-focus approach to our employe
Slide 12: Pillars of our strategic plan
Pillars of our strategic plan Strong focus on building AI competency by building and developing a resource pool. The Company is also Skills and service developing AI offerings for the BFS, Telco and Retail/CPG verticals. offerings The Company has divided business development and delivery in 3 key ve
Slide 13: Investment Priorities
Investment Priorities Continued Profit Improvement, Healthy Cash Flow • Strong cash flow generation allows attractive dividend payout, and flexibility for investment opportunities. → Investment in talent • Systems Limited has a history of investing its → Diversification of talent pool among cash flo
Slide 14: Financial Performance Overview
Financial Performance Overview 14
Slide 15: Strong Performance – HY 2024 (PKR 'M)
Strong Performance – HY 2024 (PKR ’M) Revenue Operating Profit 31,023 3,859 CAGR 45% 3,513 * CAGR 62% 23,189 2,383 11,463 1,532 6,548 880 4,559 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 EBITDA Net Profit 3,243 4,714 4,319 * 2,965 2,902 * CAGR 47% CAGR 32% 2,601 1,515 1,677 1,068 997 2020 202
Slide 16: Benchmark Analysis – Six Months Interim
Benchmark Analysis – Six Months Interim Globant FPT EPAM Infosys TCS Systems Ltd REV (USD ‘M) $ 1,158.5 $ 1,172.7 $ 2,312.1 $ 9,268.6 $ 14,862.0 $ 111.3 SPLY growth % 19.40% 21.40% -2.90% 2.47% 4.48% 31.08% GP Margin 35.5% 37.6% 38.05% 17.1% 30.59% 31.9% 30.18% 30.3% 40.49% 40.2% $ 26.2% 22.51% OP M
Slide 17: Client Composition HY 2024
Client Composition HY 2024 Client Contribution to Revenue 51% 48% 39% 34% 29% 24% 13% 14% Top Client Top 5 Client Top 10 Client Top 20 Client HY 2023 HY 2024 Active Clients* Client Metrics HY 2023 HY 2024 HY 2023 HY 2024 Active Clients 150 167 $10m+ clients 1 1 $5-10m clients - - *Revenue above $100
Slide 18: Strong QoQ Performance
Strong QoQ Performance HY ‘24 vs HY ‘23 Growth (USD) HY ‘24 vs HY ‘23 Growth (USD) EBITDA Revenue 0% 100% 0% +31% 100% +7% PKR ‘M USD ‘M PKR ‘M USD ‘M 16,102 15,829 111.3 16.9 2,903 15,194 15.8 * 14,145 2,616 2,391 2,323 84.9 Q3 '23 Q4 '23 Q1 '24 Q2 '24 HY '23 HY '24 Q3 '23 Q4 '23 Q1 '24 Q2 '24 HY '
Slide 19: Strong QoQ Performance
Strong QoQ Performance Q2 ‘24 vs Q2 ‘23 Growth (USD) Q2 ‘24 vs Q2 ‘23 Growth (USD) Revenue EBITDA 0% 100% 0% 100% +30% +8% PKR ‘M USD ‘M PKR ‘M USD ‘M 16,102 56.93 2,903 15,194 8.36 14,145 2,616 7.75 * 43.71 2,391 12,490 2,215 * Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '23 Q2 '24 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q
Slide 20: Currency Mix – HY 2024
Currency Mix – HY 2024 By Revenue By Cost 7% 40% 60% 93% FCY PKR FCY PKR 20
Slide 21: Environment, Social & Governance (ESG)
Environment, Social & Governance (ESG) 21
Slide 22: ESG Overview
ESG Overview Be Kind with the Environment Key Indicators: • Reduced electricity costs by moving data centres to cloud • Controlled e-waste by donating laptops and computers • Policy to reduce printing and use digital media as much as possible • Raising employee awareness to control water wastage and
Slide 23: Systems
systems
Slide 24: Thank you
Thankyou Get in touch www.systemsltd.com 24