Logo Yazilim Sanayi Ve Ticaret A.s. · BIST:LOGO

Logo Yazilim Sanayi Ve Ticaret A.s — Logo Yazılım Sanayi ve Ticaret A.Ş. — Non-Deal Roadshow (June 2024)

35 slides from Logo Yazilim Sanayi Ve Ticaret A.s's roadshow presentation, Jun 5, 2024

  1. Slide 1: Investment Roadshow Presentation - London

    Ak Investment Roadshow Presentation - London Gülnur Anlaş CFO Canan Şenkut IR & Sustainability Director June 4th-5th, 2024

  2. 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.

  3. 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

  4. 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 170,000+ customers 21 mio USD transformation SaaS solution for reliable 136 customers and sustainable retail 2.6 mio USD operations

  5. 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

  6. 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% 68% 100% ABS SRL ABS Financial Logo Financial 80% Services SRL Solutions GmbH 39% 100% * 32,32% belongs

  7. 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

  8. 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 Logo’s highest (100–499) 12.3k 2 revenue contribution Small (10–99) 300k Logo’s highest 3 volume contribution Micro (<10) 2.4m 4 Total 2.7m • Higher pre

  9. Slide 9: Logo Turkey sales cycle

    Logo Turkey sales cycle Partner 1 Customers Partner 2 • User increments R&D Product Initial Sales Marketing Sales (to customers) Following • Modules Development Sales • 3rd party Cross - Sales • HR / CRM / BI / WMS / BPM Support Logo Coin • e-Services (e-invoices etc.) Membership • LEM Services Invo

  10. 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

  11. 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

  12. 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.

  13. 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

  14. 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

  15. 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

  16. 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

  17. Slide 17: Q1 2024 results

    Q1 2024 results

  18. Slide 18: Q124 consolidated figures

    Q124 consolidated figures USD based Invoiced revenues Invoiced Revenues TL mn USD mn 0% y/y 0% y/y growth growth 814 813 25 25 Q123 Q124 Q123 Q124 IFRS Revenues IFRS Revenues TL mn USD mn 20% y/y 20% y/y growth growth 970 30 810 25 Q123 Q124 Q123 Q124 EBITDA EBITDA TL mn USD mn 3% y/y 3% y/y growth

  19. 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 +7,058,230 TL -170,208,714 TL Major impact is from Major impact is from contract prepaid expenses liabilities (LEM, eService coins

  20. Slide 20: Q124 consolidated figures

    Q124 consolidated figures USD based EBT IAS29 impact on EBT from EBT TL mn Balance Sheet (Monetary Loss USD mn -71% y/y of 197 TL mn in Q124, 177 TL -71% y/y growth mn in Q123) due to strong growth shareholder’s equity ratio 49.2 1.5 14.5 0.4 Q123 Q124 Q123 Q124 Monetary Loss impact due to IAS29 adj

  21. Slide 21: Logo Türkiye: resilient performance

    Logo Türkiye: resilient performance Logo Türkiye TL mn • Healthy revenue growth amid macro difficulties thanks to solid recurring y/y -9% +21% -8% +47% revenue contribution growth • Invoiced revenue is expected to grow in coming periods as Turkish macro improves, past records show that subdued softw

  22. Slide 22: Real growth in Türkiye operations

    Real growth in Türkiye operations 2013-2023 101% average real growth of 21% 89% 63% 64% 65% 46% 41% 41% 37% 36% 30% 27% 21% 20% 12% 12% 15% 7% 8% 9% 9% 12% 9% 6% -3% 7% 5% 3% 3% 5% 4% 1% 2% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Invoiced revenue growth GDP growth CPI Invoiced revenue

  23. Slide 23: Our SaaS offerings

    Our SaaS offerings e-Service SaaS Retail SaaS HR SaaS MicroSME SaaS MicroSME SaaS eService platform and SaaS solution for reliable SaaS solution for SaaS solution for SaaS solution for leader in digital and sustainable retail recruitment, on-boarding MicroSMEs: basic MicroSMEs: Pre-accounting transf

  24. Slide 24: 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 178K customers # of customers (‘000) MRR USD mn CAGR: 56% +27%y/y 2.0 170 178 1.8 1.6 135 139 1.4 1.2 95 1.0 0.8 56 0.6 32 18 0.4 0.2 0.0 Apr.'22 Ju

  25. Slide 25: Logo İşbaşı: SaaS solution for MicroSME digitalization

    Logo İşbaşı: Saas solution for MicroSME digitalization Offering basic accounting software and e-invoicing services MRR USD ‘000 140 120 100 80 60 40 20 0 Dec-22 Dec-23 Nov-22 Nov-23 Apr-22 Jan-23 Apr-23 Jan-24 Jun-22 Sep-22 Jun-23 Sep-23 May-22 Feb-23 May-23 Feb-24 Mar-23 Mar-24 Oct-22 Oct-23 Aug-22

  26. Slide 26: Logo Diva Retail

    Logo Diva Retail SaaS solutions for reliable and sustainable retail operations: a new generation CX in retail MRR USD mn 0.35 0.30 0.25 0.20 0.15 0.10 0.05 0.00 Oct-22 Jan-23 Oct-23 Jan-24 Feb-24 Sep-22 Feb-23 Mar-23 Sep-23 Mar-24 Nov-22 Nov-23 May-22 May-23 Jun-22 Jun-23 Apr-22 Apr-23 Jul-22 Aug-22

  27. Slide 27: 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 Mar-23 Mar-24 Oct-22 Oct-23 Sep-22 Feb-23 Sep-23 Feb-24 Jan-23 Jan-24 Nov-22 Nov-23 May-22 Aug-22 May-23 Aug-23 Jun-22 Jun-

  28. Slide 28: Total Soft: a strong start to the year

    Total Soft: a strong start to the year Total Soft TL mn y/y +18% +11% +82% n.m. growth 300 255 108 119 62 34 • Increased demand resulted in revenue growth 10 -1 • Optimization in operating expenses inline with project backlog improved profitability Revenue Gross Profit EBITDA Net Income Q123 Q124 •

  29. Slide 29: 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 14,809 13,874 14,201 12,347 10,300 MRR*: 32K USD 8,253 ARR*: 379K USD 7,336 5,346 3,567 ARPU**: 26 USD 2,359 1,376 127 217 585 90 ▪ Ready-to-use software Effortless

  30. Slide 30: 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 +97% -15% +13% -15% +57% growth Strong growth 100% SaaS with transition 90% 17% growth y/y to subscription 80% 189 model in the 167 smal

  31. Slide 31: Cost of Sales and Operating Expenses

    Cost of Sales Consolidated TL mn Total Soft TL mn % of IFRS 20% 21% % of IFRS 58% 60% Revenues Revenues 970 23% 810 21% y/y y/y growth growth 255 300 165 199 148 181 Q123 Q124 Q123 Q124 Revenue Cost of Sales Revenue Cost of Sales Operating Expenses Consolidated TL mn % of IFRS 30% 19% 15% 64% Q124 R

  32. Slide 32: Effective financial management and strong balance sheet

    Effective financial management and strong balance sheet Consolidated High liquidity Adj. net cash TL mn TL mn 1,411 1,363 1,217 -22% y/y -14% y/y 1,061 423 Treasury growth growth shares Financial 482 LT Fin. Inv. 802 Investments 564 (ST&LT) 477 IFRS 16 Cash and 362 27 impact Cash Eq. 28 Net cash 562

  33. Slide 33: 2024 Guidance

    2024 Guidance Logo Türkiye expectations: • 30% invoiced revenue growth • 34% IFRS revenue growth • EBITDA growth of ~ 15% • EBITDA margin of ~ 25% Total Soft expectations: • 11% Euro revenue growth • 24% EBITDA margin Economic indicator expectations: • 2024 year-end inflation is 45% • Average USD/TL

  34. Slide 34: Software company valuations

    Software company valuations EV/Sales EV/EBITDA 2024e 2024e International SaaS 7.0x 22.0x companies* International peers 3.8x 15.7x SAP, Totvs, Sage, Asseco Poland Logo 1.8x 7.3x Logo’s discount (compared to -52% -53% int.’l peers) www.logo.com.tr 34 *BVP Nasdaq cloud index, SaaS Capital, SaaS Rise-A

  35. Slide 35: Thank you

    Thank you Logo Investor Relations Team T: +90 262 679 8000 E: investor@logo.com.tr

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