Logo Yazilim Sanayi Ve Ticaret A.s. · BIST:LOGO
Logo Yazilim Sanayi Ve Ticaret A.s — Logo Yazılım Sanayi ve Ticaret A.Ş. — ING-YF Securities TMT Conference 2014
28 slides from Logo Yazilim Sanayi Ve Ticaret A.s's conference presentation, Jun 24, 2014
Slide 1: Presentation for ING-YF Securities TMT Conference
LOGO Business Solutions Presentation for ING-YF Securities TMT Conference Warsaw Orhan Ayanlar Board Member Gülnur Anlaş Chief Financial Officer June 24, 2014
Slide 2: Disclaimer
Disclaimer This presentation contains information and analysis on financial statements as well as forward-looking statements that reflect the Company (LOGO) management’s current views with respect to certain future events. Although it is believed that the information and analysis are correct and exp
Slide 3: Contents
Contents A. Logo at a Glance B. Turkey: Macro Review and EAS Market C. Logo Highlights LOGO General IR Presentation 2014 3
Slide 4: A. Logo at a Glance
LOGO Business Solutions A. Logo at a Glance
Slide 5: LOGO at a Glance
LOGO at a Glance Established in 1984, LOGO is the leading provider of Enterprise Application Software for SMEs and Mid-sized companies in Turkey Software Services EAS Procurement & Payment (Enterprise Application Software) e-Commerce, e-Invoice, e-Settlement Accounting, payroll, HR, CRM, BA, etc Acc
Slide 6: Corporate Statement
Corporate Statement To become the trusted business partner that enables SME’s and mid-sized companies Vision in Turkey to excel in their businesses by providing high value added technology oriented business solutions To enable SME’s and mid-sized companies to do more business more efficiently Missio
Slide 7: Sustainable Competitive Advantage (1 of 2)
Sustainable Competitive Advantage (1 of 2) LOGO is clearly positioned as the leading EAS player targeting the SME segment • LOGO has a strong and sustainable customer & revenue base: 65,000 active users (largest in the country) • LOGO’s products are typically more appropriate for SME customers – sim
Slide 8: Sustainable Competitive Advantage (2 of 2)
Sustainable Competitive Advantage (2 of 2) LOGO is clearly positioned as the leading EAS player targeting the SME segment • Trusted and well known brand with 30 years presence. Positive perception of LOGO products across the board Strong customer • There is potential to vitalize large passive custom
Slide 9: Key Investment Attractions
Key Investment Attractions 1 Turkey macro story with secular growth: SME growth & EAS penetration story 2 Attractive industry dynamics 3 Sustainable competitive advantage 4 Captive business solutions for SME’s 5 Resilient revenue base, sticky product, low churn 6 Expanding recurring revenue base thr
Slide 10: Strategy
Strategy • Continue to capitalize on the SME growth and penetration opportunity 1 • Become the local champion in key vertical solutions in selected sectors 2 • Provide value-added services to fulfill SMEs' business solutions needs 3 • Further improve revenue resilience through product/service divers
Slide 11: B. Turkey: Macro Review and EAS Market
LOGO Business Solutions B. Turkey: Macro Review and EAS Market
Slide 12: Turkish Macroeconomic Outlook
Turkish Macroeconomic Outlook Turkey is the fastest growing Emerging Europe economy with real GDP projected to grow nearly 5% CAGR through 2018... Real GDP Evolution (TL bn) Government Debt (as % of GDP) CAGR: 6.0% CAGR: 4.6% 46.4% 43.1% 150 40.0% 37.5% 37.5% 136 143 36.8% 36.1% 34.7% 125 130 34.0%
Slide 13: EAS Market Trends (1 of 3)
EAS Market Trends (1 of 3) Turkey’s IT spending and share of SW spending is the lowest among its peers, room for continued growth… IT Spend in Various Countries (2011, US$ bn) Software / IT Ratio in Various Countries (2011) 610 Software Hardware & Services 75% 76% 81% 81% 84% 86% 87% 92% 106 96 54 3
Slide 14: EAS Market Trends (2 of 3)
EAS Market Trends (2 of 3) USA UK Germany Italy Brazil Russia Poland Turkey GDP Trend in the last 3 years IT $B 2011 $610 bn $106 bn $96 bn $38 bn $54 bn $32 bn $10 bn $9 bn IT/GDP 4.0% 4.4% 2.7% 1.7% 2.2% 1.7% 2.0% 1.2% SW $B $154 bn $20 bn $23 bn $7 bn $9 bn $4 bn $1.5 bn $1 bn SW/IT 25% 19% 24% 1
Slide 15: EAS Market Trends (3 of 3)
EAS Market Trends (3 of 3) EAS market is expected to grow at ~11% to reach 260M USD by 2017 both through macro and secular growth... Growth of Enterprise Universe (mn) Growth of EAS Installed Base (k) CAGR (11-17) CAGR (11-17) Number of 1000+ 5% Number of enterprises (mn) 500-999 6% installed EAS ba
Slide 16: Competitive Positioning of Logo
Competitive Positioning of Logo Logo is expected to increase its share in the rapidly growing EAS market through the expansion of product range and add-on acquisitions... Expanding Market Share Growing Product Range Microsoft Others 8.9% 19.2% Oracle 10.9% Netsis 5.8% LOGO 14.4% SAP 40.8% Coretech L
Slide 17: B. Logo Highlights
LOGO Business Solutions B. Logo Highlights
Slide 18: Milestones
Milestones 1984 1992 2000 2004 2010 2012 2013 The first-ever e-products GO Plus LOGO LOGO Gold, Mediterra* software IPO Supply Chain Tiger Plus J-guar established by 8 the first multi investment in in Turkey Execution Tiger Enterprise LOGO Mobile engineers with language, multi LOGO LOGO Store an ave
Slide 19: Corporate Structure
Corporate Structure 2000 2013 2000 LOGO YATIRIM MEDITERRA CAPITAL HOLDING PARTNERS I, LP* PUBLICLY TRADED 34.60% 34.60% 30.80% LOGO YAZILIM SAN. ve TIC. A.Ş. NETSIS YAZILIM SAN. ve CORETECH BILGI LOGOBI YAZILIM LOGO BUSINESS LOGO BUSINESS LOGO ELEKTRONIK TIC. A.Ş. TEK. HIZM. A.Ş. SAN. ve TIC. A.Ş. S
Slide 20: Product Offerings
Product Offerings Innovative products that improve company competitiveness • Developing solutions for the coming decades • Providing services for a wide range of industries, including among others, • Retail • Distribution • Production • Tourism • Technology • Marine • Solutions for structuring in li
Slide 21: Leading SaaS provider in Turkey
Leading SaaS provider in Turkey • LOGO is the leading SaaS provider in Turkey • Acquired major competitors in the market: Diva (Coretech) and Netlite (Netsis) • Dominant player in certain verticals such as retail and after sales services. Potential for a wide range of vertical add-ons • R&D structur
Slide 22: Operational Presence
Operational Presence Turkey, Germany, Azerbaijan, United Arab Emirates, Ethiopia, Morocco, Georgia, Iraq, Iran, Kazakhstan, Kyrgyzstan, Kosova, Libya, Egypt Russia, Sudan, Saudi Arabia, Turkmenistan Ukraine, Jordan The leading player in a geography offering unrivaled opportunities • Strong presence
Slide 23: Financial Snapshot
Financial Snapshot Guidance Reported Reported Reported Consistent record of high growth IFRS YE2014 YE2013 1Q2013 1Q2014 and high profitability (TL mn) • Sales revenue growth 53% in 2013 YoY 120 70.7 11.9 22.4 • Periodic sales more than doubled YoY Revenue 88% • Sales revenue in Q1 almost doubled Yo
Slide 24: Key Financials (1 of 2)
Key Financials (1 of 2) Sales Recurring Sales EBITDA CAGR: 50% 88% CAGR: 237% 72% 38% 70.7 40% 26.7 4% 15% 24% 46.2 41% 18.3 28% 31.0 96% 85% 23% 76% 9.8 20.8 22.4 59% 8.8 14.0 4.7 5.7 11.9 (0,2) 2009 2010 2011 2012 2013 1Q20131Q2014 2011 2012 2013 1Q2014 2009 2010 2011 2012 2013 1Q20131A2014 One Of
Slide 25: Key Financials (2 of 2)
Key Financials (2 of 2) Net profit & Free cash flow Balance Sheet (2013YE) CAGR: 45% 58% (TL mn) 2013YE 27% Cash and cash equivalents 19.5 Tangible assets 13.6 19.4 23% Intangible assets 36.5 Other assets 55.1 11.0 27% Total assets 124.7 32% (2%) 10% 6.1 Total liabilities 65.6 (32%) 3.1 3.8 (0,4) To
Slide 26: Share Performance
Share Performance IFC Voluntary financing tender offer Mediterra (Oct 25, 2013)(Jan 27, 2014) investment @ Netsis 2014 guidance 2013 financials 5.575 acquisition released 8 announced (Jun 21, 2013) (Sept 19, 2013) (May 5, 2014) (Feb 14, 2014) 7 eLogo acquisition 6 (Feb 20, 2014) 5 4 3 2 1 0 Jan-12 M
Slide 27: Trading Comparables
Trading Comparables € mln LTM LTM EBITDA Market Enterprise EV/Sales EV/EBITDA P/E Company Country Revenue EBITDA margin % Cap. Value LTM 14E 15E LTM 14E 15E LTM 14E 15E Totvs Brazil 537 126 23% 2,168 2,133 4.0x 3.4x 3.1x 17.0x 12.7x 11.0x 9.5x 17.3x 14.7x Sage UK 1,602 473 29% 5,327 5,777 3.6x 3.3x
Slide 28: Future Outlook
Future Outlook Expectations • Revenue growth expected to continue at high double digit on a stand alone basis • Revenue drivers: economic growth, penetration story, regulatory support, additional acquisitions • Margins expected to increase: following post-merger integration of acquisitions and econo
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