Logo Yazilim Sanayi Ve Ticaret A.s. · BIST:LOGO
Logo Yazilim Sanayi Ve Ticaret A.s — Non-Deal Roadshow (March 2019)
32 slides from Logo Yazilim Sanayi Ve Ticaret A.s's roadshow presentation, March 2019
Slide 1: Ak Investment Roadshow Presentation USA
Ak Investment Roadshow Presentation USA Canan Şenkut IR Manager March 4th-8th, 2019
Slide 2: Investor Presentation
Investor Presentation
Slide 3: Disclaimer
Disclaimer This presentation contains information and analysis on financial statements as well as forward-looking statements that reflect Logo management’s current views with respect to certain future events. Although it is believed that the information and analysis are correct and expectations refl
Slide 4: Logo at a glance
Logo at a glance Enterprise Application Local leader Active in Software (EAS) in Turkey and India Company Romania through a JV 35% 54% IFRS revenue 321 mn TL Recurring Growing SaaS CAGR 2018 revenue base business in 2013-2018 revenues Dedicated 1.200+ 45% 5.000+ 90.000+ R&D spending employees women
Slide 5: Key Investment Highlights
Key Investment Highlights Solid Growth Leading Provider of EAS Solutions High Profitability Extensive Product Suit Latest Technology Largest Business Partner Network in Turkey / 800+ International Expansion in Emerging Markets Most Valuable IT Brand* * Brand Finance Turkey www.logo.com.tr 4
Slide 6: Shareholder Structure
Shareholder Structure LOGO TEKNOLOJİ MEDITERRA CAPITAL ve YATIRIM A.Ş. OTHER** PARTNERS I, LP* 33.56% 66.44% < 1% LOGO YAZILIM SAN. ve TİC. A.Ş. LOGO ELEKTRONİK LOGO INFOSOFT LOGO BUSINESS TOTAL SOFT S.A. LOGO KOBİ DİJİTAL TİCARET HİZMETLERİ BUSINESS TECHNOLOGY SOFTWARE GMBH 80% HİZMETLER A.Ş. A.Ş.
Slide 7: Logo Milestones
Logo Milestones First-ever Operations Enterprise software and strategic Applications- IPO in partnerships Establishment 1986 Windows 1999 Turkey 2000 abroad 1984 Enterprise 1996 Logo 2000 Software 2001-2003 Applications ERP Development - DOS Center @ Gebze Acquisition of Competitive Acquisition of;
Slide 8: Turkish EAS Market and Logo Market Share
Turkish EAS Market and Logo Market Share Turkish EAS Market is Expected to Have Robust Growth* ($mn) CAGR 5.1% Other; Logo; 386 405 26% 24% 367 349 332 302 316 2017* 269 Microsoft; 8% SAP; 2015 2016 2017 2018E 2019E 2020E 2021E 2022E 43% SMEs lead software market growth Government push for digitalis
Slide 9: Extensive Product Suite
Extensive Product Suite HUMAN RESOURCES ENTERPRISE WAREHOUSE RESOURCE MANAGEMENT PLANNING 60+ solutions CUSTOMER ENVIRONMENT RELATIONSHIP HEALTH AND SAFETY MANAGEMENT MANAGEMENT VERTICAL LOGO SOLUTIONS APPS One-stop-shop for companies of all sizes FIELD B2B SALES MANAGEMENT CUSTOMISATION RETAIL MANA
Slide 10: 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 1 • Higher p
Slide 11: Logo Turkey Sales Cycle
Logo Turkey Sales Cycle Partner 1 Customers Partner 2 • User increments R&D Product Initial Sales Following Marketing Development Sales (to customers) Sales • Modules • 3rd party Cross - Sales • CRM / BI / SCM / BPM Support Logo Coin • e-Services (e-invoices etc.) Membership • LEM Tiger Invoice Invo
Slide 12: Competitive Advantages of Logo Turkey
Competitive Advantages of Logo Turkey 1 2 3 Robust Product Suite Extensive Distribution Strong Brand Network ◉ Best suited to local market ◉ Large network of 800+ BPs and c. ◉ Trusted brand with >30yrs of legislations and business 5,000 sales and implementation presence practices team members ◉ Lowe
Slide 13: Major Recurring Revenue Streams of Logo Turkey
Major Recurring Revenue Streams of Logo Turkey LEM – Logo Enterprise Membership Pay as you go – Logo Coins Market 4000+ leader in License 15,000+ new features e-government Maintenance customers added in 2018 solutions 31% 28% Version e-invoice Logo Coin Revenue releases Revenue New features e-archiv
Slide 14: Logo Total Soft - Romania
Logo Total Soft - Romania 25 years of Financial Trade experience Services Energy Manufacturing Over 1,000 clients in 45 countries Services Constructions Expertise in business Healthcare Agriculture application software development & implementation across various industries www.logo.com.tr 13
Slide 15: Competitive Advantages of Logo Total Soft
Competitive Advantages of Logo Total Soft 1 2 3 Robust Product Suite & Strong Brand Project Management Superior Service Quality Know-How ◉ Charisma Business Suite; core being Trusted brand with >20 yrs of ◉ Development of best of breed ◉ ERP and Human Capital presence solutions together w/ vertical
Slide 16: Research and Development
Research and Development Meeting the expectations Evolving from content Mobile and web Compliance with of the new user richness to usability and usage e-gov’t processes generation accessibility approach Customer centric All products on one All products with the design platform same design approach w
Slide 17: R&D Strategy
R&D Strategy Resource Management of Continuous Transformation Horizon 1 Horizon 2 Horizon 3 (Current Products) (18-36 months) (3-5 years) %60 %20-25 %10-15 www.logo.com.tr 16
Slide 18: Corporate Governance and Sustainability
Corporate Governance and Sustainability 01 02 03 Corporate BIST BIST Governance Corporate Sustainability Rating: Governance Index 9,1/10,0 Index Member Member www.logo.com.tr 17
Slide 19: FY2018 Results
FY2018 Results
Slide 20: Profitable and Sustainable Growth/Targets Achieved
Profitable and Sustainable Growth/Targets Achieved Consolidated Revenues (TL mn) EBITDA (TL mn) 25% 23% 32% 30% 321 338 32% 101 101 256 83 2017 2018 2018G 2017 2018 2018G EBT (TL mn) EPS Growth 29% 34% 21% 19% 21% 68 2,81 64 53 2,09 2017 2018 2017 2018 2018G www.logo.com.tr 19
Slide 21: Growth and profitability in 4Q18
Growth and profitability in 4Q18 Consolidated Revenues (TL mn) EBITDA (TL mn) 26% 16% 23% 104 24% 83 23 20 4Q17 4Q18 4Q17 4Q18 Net Income (TL mn) 20% 15% 15% 15 13 4Q17 4Q18 www.logo.com.tr 20
Slide 22: Strong Financial Management
Strong Financial Management Consolidated Improved Liquidity Operating Cash Growth Cash and Cash Eq. (TL mn) Operating Cash (TL mn) 57% 63% 81 103 52 63 2017 2018 2017 2018 Decrease in Receivable Days Rcvb days w/out credit card 83 78 2017 2018 www.logo.com.tr 21
Slide 23: Robust performance despite challenging macro environment in Turkey
Robust performance despite challenging macro environment in Turkey Logo Turkey Standalone - Revenues Logo Turkey Standalone - EBITDA 18% 3% 49% 43% 213 181 89 91 13% -16% 41% 31% 63 71 26 22 4Q17 4Q18 FY2017 FY2018 4Q17 4Q18 FY2017 FY2018 Logo Turkey Standalone - Net Income 16% • FY18 EBITDA margin
Slide 24: Romanian operations off to a good start
Romanian operations off to a good start Consolidated Total Soft - Revenues Total Soft – Gross profit 44% 78% 108 44% 47 67% 75 36% 191% 27 45% 33 26% 15 19 5 4Q17 4Q18 FY2017 FY2018 4Q17 4Q18 FY2017 FY2018 Total Soft - EBITDA Total Soft - Net Income 39% 71% 576% 11% 12 4Q17 4Q18 FY2017 FY2018 164% -
Slide 25: Invoiced Revenue vs IFRS Revenue (Consolidated)
Invoiced Revenue vs IFRS Revenue (Consolidated) Fourth Quarter Invoices & IFRS Revenues (TL mn) IFRS Revenues = Invoices - Net Deferrals Invoices 118 • 4Q sales invoice growth reached 28% y/y 104 92 87 83 • Revenue growth was 26%y/y in 4Q 80 70 despite a very challenging environment 51 39 35 40 33 4
Slide 26: Recurring Revenue Growth Ensuring Predictability
Recurring Revenue Growth Ensuring Predictability Consolidated Recurring Invoices (TL mn) CAGR: 48% LEM Maintenance 33% 181 ↑23% y/y ↑49% y/y 135 73 84 Pay as you go SaaS 48 ↑36% y/y ↑23% y/y 25 4% 2013 2014 2015 2016 2017 2018 Recurring Invoices/Total Invoices (%) 22% 42% 32% 41% 2018 48% 48% 52% 54
Slide 27: Cost of Sales
Cost of Sales Consolidated (TL mn) – As % of IFRS Revenue Total Soft (TL mn) – As % of IFRS Revenue 20% 20% 65% 56% 321 108 256 75 23% 61 48 25% 52 64 2017 2018 2017 2018 Revenue Cost of Sales Revenue Cost of Sales • New clients and new project additions continue in all solutions • Successful projec
Slide 28: Operating Expenses
Operating Expenses OpEx (TL mn) – As % of IFRS Revenue R&D Expenses (TL mn) – As % of IFRS Revenue 57% 59% 24% 26% 321 321 256 256 189 35% 145 30% 62 83 2017 2018 2017 2018 Total Revenue Total Opex Total Revenue R&D Expense S&M (TL mn) – As % of IFRS Revenue G&A (TL mn) – As % of IFRS Revenue 20% 19
Slide 29: Dedicated Investment in Technology
Dedicated Investment in Technology R&D Spending (TL mn) – As % of Invoices 50% 160,0 29% 45% 140,0 40% 120,0 33% 35% 30% 30% 28% 27% 30% 100,0 24% 99 25% 80,0 77 20% 60,0 57 15% 40,0 10% 41 20,0 32 5% 20 0,0 0% 2013 2014 2015 2016 2017 2018 R&D Spending (TLmn) - LHS R&D Spending/Invoices -RHS www.lo
Slide 30: Strong Balance Sheet
Strong Balance Sheet Balance Sheet Highlights (TL mn) Working Capital (TL mn) 2017 2018 ∆ Cash & Cash Eq. 51,6 80,9 57% Trade Receivables 104,5 137,9 32% 55% 54% 180 Tangible Assets 19,9 20,7 4% 44% 33% 160 45% 41% 41% Intangible Assets* 191,9 301,1 57% 34% 140 33% Other Assets 15,2 22,5 49% 35% 120
Slide 31: Guidance
Guidance 2018 2019 Guidance Invoiced Revenue (TL mn) +30% 108 0 333 148 432 284 225 IFRS Revenue (TL mn) +29% 148 0 414 108 321 267 213 0 EBITDA (TL mn) +34% 101 111 27 -3 135 91 12 -2 Margins 43% 11% n.m. 32% 42% 18% n.m. 33% EBT (TL mn) +15% 75 -2 -4 68 85 0 -6 79 Margins 35% -2% n.m. 21% 32% 0% n
Slide 32: Thank you
Thank you
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