Logo Yazilim Sanayi Ve Ticaret A.s. · BIST:LOGO
Logo Yazilim Sanayi Ve Ticaret A.s — Logo Yazılım Sanayi ve Ticaret A.Ş. — AGCO Emerging & Frontier Markets Virtual Investor Conference (October 2024)
33 slides from Logo Yazilim Sanayi Ve Ticaret A.s's conference presentation, Oct 30, 2024
Slide 1: AGCO Emerging & Frontier Markets Virtual Investor Conference Presentation
AGCO Emerging & Frontier Markets Virtual Investor Conference Presentation Canan Şenkut IR & Sustainability Director October 30th, 2024
Slide 2: Disclaimer
Disclaimer With Capital Markets Board (CMB) of Türkiye’s bulletin dated 28.12.2023 numbered 2023/81, CMB announced that issuers and capital market institutions shall prepare their annual financial statements ending on 31.12.2023 or later, in accordance with IAS29 inflationary accounting provisions.
Slide 3: Logo at a glance
Logo at a glance Enterprise Enterprise Local leader in Application Application Active in India Turkey and Software (EAS) through a JV Software (EAS) Romania Company Company 67% 31% 101 mn $ 3 bn TL Recurring SaaS 2023 2023 revenue revenue revenues revenues base share Dedicated 1.600+ 45% 5.000+ R&D
Slide 4: Strong SaaS footprint
Strong SaaS footprint On-track in the journey of becoming a global SaaS company Solutions and ARR # of customers/users services eService platform and leader in digital 188,000+ customers 22 mio USD transformation SaaS solution for reliable 139 customers and sustainable retail 4.0 mio USD operations
Slide 5: 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 6: Shareholder structure
Shareholder structure Logo Teknoloji Freefloat** ve Yatırım A.Ş.* 66.37% 33.63% Logo Yazılım San. ve Tic. A.Ş. Logo Infosoft Business Technology ELBA HR Total Soft S.A. Private Ltd. (Peoplise) 80% 72% 100% ABS SRL ABS Financial Logo Financial 80% Services SRL Solutions GmbH 39% 80% * 32,32% belongs
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: 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 9: 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 10: Our servitization strategy
Our servitization strategy Subscription Subscription Subscription Subscription Web enabled Cloud 2023 2026e 1.600+ 36.000+ Small segment Small segment customers customers Sales model LEM Annual license maintenance Cloud ERP On-prem One-time license 2023 2026e One-time 700+ 4.000+ On-prem Cloud custo
Slide 11: Our ESG performance
Our ESG performance A close-up of a computer Description automatically generated Refinitiv Corporate ESG score A- Governance rating 9.5/10.0 BİST BİST Sustainability Corporate Index Governance Index since 2017 since 2009 www.logo.com.tr 11
Slide 12: Dividend track record
Dividend trackrecord 2020 2021 2022 2023 Pay-out ratio 26% 34% 36% 35%* Yield 0,75% 2,20% 2,85% 4,51%** Gross amount 4,1 $ mn 6,9 $ mn 8,0 $ mn 13,6 $ mn 30 TL mn 90 TL mn 150 TL mn 400 TL mn 300% bonus issue www.logo.com.tr 12 *Based on statutory records. **Based on PDP disclosure date.
Slide 13: Share buy-back programs
Share buy-back programs 2012- 2021 2023 2021 3,22% 3,22% -> 4,90% 4,90%->6,20% 6,2 $ mn 4,4 $ mn 3,4 $ mn 100 TL mn 108,6 TL mn 2012 - 2015 30.Dec.2021-17.Nov.2023 18.Nov.2023-> cont. 12.July.2018 - 30.Dec.2021 Max fund: 400 TL mn ~ 14 $ mn www.logo.com.tr 13
Slide 14: Logo Total Soft - Romania
Logo Total Soft - Romania 30 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 14
Slide 15: Strong growth: double digit USD based growth
Strong growth: double digit USD based growth Consolidated IFRS revenues mn $ CAGR 13% 138 CAGR 11% 108 92 85 74 77 70 67 62 47 47 37 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024G Figures do not include IAS29 adjustments. 15
Slide 16: Strong growth: double digit USD based growth
Strong growth: double digit USD based growth Türkiye Türkiye Invoiced revenues mn $ IFRS revenues mn $ CAGR 11% CAGR 10% CAGR 9% CAGR 7% 131 101 96 74 66 68 54 56 60 53 51 48 51 47 55 61 47 47 50 45 49 51 41 37 Figures do not include IAS29 adjustments. 16
Slide 17: Q2 2024 results
A) logo Q2 2024 results
Slide 18: Strong performance in H124
Strong performance in H124 Consolidated (TL mn) y/y +4% +19% +25% -36% growth Strong performance across the board 2,277 2,0822,173 1,918 Consolidated • Strong invoiced and IFRS revenue growth 827 • EBITDA margin improved to 36% (H123: 34%) 661 297 Logo Türkiye 190 • Another quarter of strong results
Slide 19: IAS29 impact on Balance Sheet
IAS29 impact on Balance Sheet Non-monetary assets and liabilities, and equity is indexed with inflation Asset Liabilities Current Assets Short and long-term Liabilities +14,941,955 TL -307,106,613 TL Major impact is from Major impact is from contract prepaid expenses liabilities (LEM, eService coins
Slide 20: Q224 figures
Q224 figures Consolidated (TL mn) y/y +8% +18% +44% -42% growth 1,292 1,199 1,225 1,040 516 359 391 229 Invoiced revenues Revenue EBITDA Net Income Q223 Q224 Consolidated (USD mn) y/y growth +8% +18% +44% -42% 39 37 37 32 16 11 12 7 Invoiced revenues Revenue EBITDA Net Income Q223 Q224 www.logo.com.
Slide 21: Logo Türkiye: strong performance
Logo Türkiye: strong performance Logo Türkiye TL mn y/y 1% +20% +16% -46% growth 1,645 1,533 1,551 1,366 • Healthy revenue growth amid macro difficulties thanks to solid recurring revenue contribution 693 597 • Solid SaaS revenue growth of 18% 315 169 • Strong customer base expanded with new custome
Slide 22: Logo Türkiye: Q224 figures
Logo Türkiye: Q224 figures Logo Türkiye TL mn y/y 7% +20% +35% -46% growth 1,024 956 919 765 Positive growth momentum in Q224 449 409 332 219 • Strong invoiced and IFRS revenue growth Invoiced revenues Revenue EBITDA Net Income • EBITDA margin is at 49% in Q224, up from 43% in Q223 Q223 Q224 • Net i
Slide 23: 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 188K customers # of customers (‘000) MRR USD mn CAGR: 56% 2.0 +28%y/y 1.8 188 1.6 170 1.4 147 1.2 135 1.0 95 0.8 0.6 56 0.4 32 0.2 18 0.0 Oct.'22 Oc
Slide 24: Logo İşbaşı: SaaS solution for MicroSME digitalization
Logo İşbaşı: Saas solution for MicroSME digitalization Offering basic accounting software and e-invoicing services MRR USD ‘000 160 140 120 100 80 60 40 20 0 Oct-22 Apr-23 May-23 Oct-23 Apr-24 May-24 Mar-23 Mar-24 Jul-22 Aug-22 Jan-23 Dec-22 Jun-23 Jul-23 Aug-23 Jan-24 Jun-24 Sep-23 Dec-23 Sep-22 No
Slide 25: Logo Diva Retail
Logo Diva Retail SaaS solutions for reliable and sustainable retail operations: a new generation CX in retail MRR USD mn 0.4 0.4 0.3 0.3 0.2 0.2 0.1 0.1 0.0 • Total customers is at 139, with 10,7K user Nov-22 Nov-23 Sep-22 Jan-23 Feb-23 Sep-23 Feb-24 Mar-24 Jul-22 Apr-23 Jul-23 Aug-23 Jan-24 Apr-24
Slide 26: Peoplise
Peoplise SaaS solution for recruitment, assessment, on-boarding and talent engagement needs of enterprises MRR USD ‘000 90 80 70 60 50 40 30 20 10 0 • Total customers is at 180 – stagnant due Aug-22 Aug-23 Jul-22 Feb-23 Sep-23 Apr-23 Sep-22 Nov-22 Mar-23 Nov-23 Apr-24 Feb-24 Mar-24 Jan-23 Jul-23 Jan
Slide 27: Total Soft: strong results
Total Soft: strong results Total Soft TL mn y/y +14% +16% +109% +216% growth 631 552 262 225 134 • Strong revenue growth, and optimization in operating expenses inline with 64 project backlog realization improved profitability. EBITDA margin is at 21% in 21 H124, increased from 12% in H123 -18 Reven
Slide 28: Logo CaptainBiz: SaaS solution for MicroSMEs in India
Logo CaptainBiz: SaaS solution for MicroSMEs in India Pre-accounting and e-invoicing services with in-built GSTN compliance # of users 18,339 17,384 15,636 14,809 13,874 14,201 12,347 10,300 MRR*: 43K USD 8,253 7,336 ARR*: 517K USD 5,346 3,567 2,359 ARPU**: 28 USD 1,376 90 127 217 585 ▪ Ready-to-use
Slide 29: Recurring Revenue Growth Ensuring Predictability
Recurring Revenue Growth Ensuring Predictability Sustainable revenue growth supported by SaaS transition Recurring Invoices Recurring Invoices/Invoices TL mn % y/y +52% +122% +13% +13% -12% Strong growth growth with transition 100% SaaS to subscription 90% 18% growth y/y model in the 80% 506 small E
Slide 30: Cost of Sales and Operating Expenses
Cost of Sales Consolidated TL mn Total Soft TL mn % of IFRS 20% 19% % of IFRS 59% 59% Revenues Revenues 2,277 1,918 13% 13% y/y y/y growth growth 552 631 327 370 374 425 H123 H124 H123 H124 Revenue Cost of Sales Revenue Cost of Sales Operating Expenses Consolidated TL mn % of IFRS 29% 18% 10% 58% H1
Slide 31: Effective financial management and strong balance sheet
Effective financial management and strong balance sheet Consolidated High liquidity Adj. net cash* TL mn TL mn 1, 511 440 1,478 1,080 -47% y/y -29% y/y growth growth Financial 517 Treasury shares 869 634 779 Investment LT Fin. Inv. (ST<) 29 IFRS 16 impact Cash and 519 Net cash cash eq. 609 525 374
Slide 32: 2024 Guidance
2024 Guidance Logo Türkiye expectations: • 30% invoiced revenue growth • 34% IFRS revenue growth • EBITDA growth of ~ 15% • EBITDA margin of ~ 25% Economic indicator expectations: • 2024 year-end inflation is 45% • Average USD/TL rate for 2024 is 36.6 • Average Euro/TL rate for 2024 is 40.0 • Year-e
Slide 33: Thank you
Thank you Logo Investor Relations Team T: +90 262 679 8000 E: investor@logo.com.tr