Formula Systems (1985) Ltd. · TASE:FORTY
Formula Systems (1985) — Investor Presentation (March 2019)
20 slides from Formula Systems (1985)'s investor presentation, March 2019
Slide 1: March 2019
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Slide 2: Safe Harbor Statement
Safe Harbor ● Certain statements and other information included in this presentation may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of Statement 1933 (the "Securities Act"), Section 21E of the Securities Exchange Act of 1934 and the United States
Slide 3: Strategy
Holding company Strategy Solid, proven and clear investment strategy in global IT and software companies Focusing on a controlling interest in Investees Providing added value to investees - strategic insight, operational support and global relationships Conservative financial management relying on d
Slide 4: Risk Profile
Risk 1.0% Profile 25.4% 73.6% ● Asseco ● Israel ● Foreign ● Formula is dual-listed on TASE (99%) and NASDAQ (1%) ● 41.6%(1) held by over ~7 ISR Financial Institutions – Clal (8.3%), Menora (6.7%), Phoenix (5.7%), Meitav(5.4%), Harel (5.0%), Psagot (4.9%) and Yalin (5.6%) ● Investment Portfolio – 3 p
Slide 5: Companies Portfolio
Companies 48.1% 48.9% 45.2% Portfolio A leading global provider of A leading Israeli A global provider of software software solutions for the service Integrator technology and services for digital insurance and financial industry transformation 100% 90.1% 50% A provider of proprietary payroll U.S. b
Slide 6: Investment Portfolio
5% Investment Book Value of Portfolio 1% 6% 9% [VAL Portfolio (December 31, 2018) 24 UE] % 24% $447 Million 22% 35% 38% Dividend Policy: Dividend Yield 75% 50% 6.5% (3.0% Vs Fair Value Portfolio Composition) Dividends Inflow 3.3 31.4 ● 0.3 1 in 2018 ● 6.4 7 $28.9 13.9 ● Million 14 ● ● 5.05 6
Slide 7: Fair Value Composition (March 19, 2019)
Traded Book Value Fair Value Portfolio December 31, 2018 March 19, 2019 Fair Value Composition (March 19, 2019) Matrix $114,133 $386,510 1% 2% 3% Sapiens $169,867 $340,318 Magic $108,829 $186,957 Private Total Traded $392,829 $913,785 (1) 19% Companies 40 Michpal $23,485 $23,485 $ 972 39%% TSG $25,6
Slide 8: Financial Debt Composition Stand Alone
BOND SERIES A (2.8%) BOND SERIES B (2.78%) LOAN FINANCIAL INST. Financial Debt Composition ILS 205.3M Par-Value $31.2M Par-Value (*) ILS 88.4M (*) As of December 31, 2018 As of December 31, 2018 As of December 31, 2018 Stand Alone ilAA- ilA+ ilA+ A1.il Moody’s A1.il Moody’s A1.il Moody’s Secured by
Slide 9: Formula at a glance
Formula at a glance* REVENUES GROWTH YE 2018 In $ millions 1,493 1,355 1,109 973 931 Established: Total Cash 31/12/2018: 814 1985 $298.6M Employees: Revenues: ~15,000 $1.5B 2013 2014 2015 (*) 2016 2017 2018 Market Cap (3/2019): Operating Profit: NIS2.4B $109.6M OPERATING PROFIT Stand Alone LTV (3/20
Slide 10: Matrix at a glance
Matrix at a glance* OFFERING OPERATING PROFIT Software Solutions and Services 221 143 160 187 198 (US) 138 STATS Founded: 1989 Software Solutions and Services 2013 2014 2015 2016 2017 2018 Traded since 1993: MTRX (ISRAEL) Dividend policy of 75 % of net income (3.6% yield) Computer Infrastructure and
Slide 11: Matrix
Matrix FUTURE STRATEGY FINANCIAL HIGHLIGHTS ● Leading the Israeli IT market by NIS million 2018 2017 18Vs17 2016 17Vs16 identifying and adapting company’s Revenue 3,168.0 2,857.0 11% 2,545.0 12% offerings to market trends and demands Gross Profit 465.1 420.3 11% 392.5 7% ● Achieving Global leading p
Slide 12: Sapiens at a glance
GLOBAL PRESENCE Sapiens at a glance* STATS More than 50% Free Founded: 1982 Float TASE-TA90;NASDAQ Traded since 1992: SPNS New Customers: 95 (2011-2017); 25 (2018) OFFERING Dividends up to 50 % of net income no dividend policy Foot Print: Formula Systems 48.1% 36/457 Office/ Customers REVENUE CAGR U
Slide 13: Sapiens
Sapiens FUTURE STRATEGY FINANCIAL HIGHLIGHTS ● Customer Base USD million 2018 2017 18Vs17 2016 17Vs16 Non GAAP ● Geographic Expansion 290.3 272.0 7% 216.2 26% Revenue (1) ● Complementary Solutions Non GAAP Gross 122.9 106.7 15% 91.87 16% Profit (1) ● Increase footprint in the US P&C market via Stone
Slide 14: Magic at a glance
Magic at a glance * ENTERPRISE APPLICATION Robust application DEVELOPMENT development and OUR BUSINESS integration platforms that enable enterprises STATS Formula Systems 45.2% INTEGRATION IT & and ISVs to go digital PROFESSIONAL Founded: 1983 PLATFORMS More than 50% Free SERVICES Traded since 1991:
Slide 15: Magic
Magic FUTURE STRATEGY FINANCIAL HIGHLIGHTS ● Improve and Focus on Cross-Selling USD million 2018 2017 18Vs17 2016 17Vs16 Non GAAP ● Increase Penetration in our Existing 284.4 258.1 10% 201.6 28% Revenue (1) Customer Base with New Technologies Non GAAP Gross ● Acquire New Partners and Customers 94.4
Slide 16: TSG at a glance
Command & Control TSG at a glance* (Data Fusion Systems and Strategic C2 Systems) Intelligence (VISINT, Active Defense) OFFERING Public Safety & Crisis Management and Cyber STATS REVENUE 18/17 (HLS & Cyber) Founded: 1999 as Ness- $66M / $67M TSG; June 2014- TSG Telecom Systems EBITDA 18/17 Formula S
Slide 17: Michpal
SHORT STORY: Michpal • Michpal Micro Computers (1983) Ltd., is a developer of payroll software platform. • The company sells perpetual licenses followed by a maintenance agreement, and developed several modules which are sold to its customers in addition to the STATS standard payroll software for ad
Slide 18: inSync
inSync SHORT STORY: FUTURE STRATEGY InSync is a U.S. based full-service provider of consulting and staffing Cross-selling solutions for IT, engineering and other professional staff (i.e. accounting and finance, administrative, customer service, healthcare, human resources, manufacturing, marketing/s
Slide 19: Formula Systems Portfolio Overview
Formula Systems Portfolio Overview Market Cap: NIS 2.4B (March 2019); Issuer Credit Rating: ilA+/stable (S&P) and A1.il (Midrug) 19
Slide 20: Thank You!
Formula Systems
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