Logo Yazilim Sanayi Ve Ticaret A.s. · BIST:LOGO
Logo Yazilim Sanayi Ve Ticaret A.s — Logo Yazılım Sanayi ve Ticaret A.Ş. — Wood's EME Investor Conference 2024
33 slides from Logo Yazilim Sanayi Ve Ticaret A.s's conference presentation, Dec 4, 2024
Slide 1: Wood's EME Investor Conference Presentation
Wood’s EME Investor Conference Presentation Gülnur Anlaş CFO Canan Şenkut Investor Relations & Sustainability Director December 4th-5th , 2024
Slide 2: Investor Presentation
logo Investor Presentation
Slide 3: 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 4: Logo at a glance: Türkiye's long standing Enterprise Application Software leader
Logo at a glance: Türkiye’s long standing Enterprise Application Software leader Enterprise Local leader in Active in India Products: Application Türkiye and through a JV ERP, HR and Software Romania (EAS) Payroll, CRM, WMS Company 11% 70% 34% 108 mn USD USD IFRS Recurring SaaS 2023 IFRS revenue* CA
Slide 5: Logo success journey: 40 years innovation and sustainable profitable growth
Logo success journey: 40 years innovation, entrepreneurial DNA and sustainable profitable growth 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 (E
Slide 6: Shaping the future path with a strong SaaS footprint
Shaping the future path with a strong SaaS footprint 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 10,700+ user locations SaaS
Slide 7: Turkish EAS market and Logo market share
Turkish EAS market and Logo market share Multiple secular drivers for further EAS adoption Turkish EAS market growth expectation* ($mn) CAGR 6.4% Others; 26% Logo; 26% 450 420 392 331 343 366 2021* Microsoft; 5% 2021 2022E 2023E 2024E 2025E 2026E SAP; 43% SMEs lead software market growth Government
Slide 8: Logo market positioning: Longstanding SME leadership
Logo market positioning: Longstanding SME leadership with products serving the mission critical need across the lifecycle 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 vol
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: 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 10
Slide 12: 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. 11
Slide 13: Strong growth: double digit USD based growth (Türkiye)
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 56 60 61 54 50 49 51 53 51 48 51 47 55 47 47 45 41 37 Figures do not include IAS29 adjustments. 12
Slide 14: Dividend track record
Dividend track record 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 13 *Based on statutory records. **Based on PDP disclosure date.
Slide 15: 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 12.July.2018 - 30.Dec.2021 30.Dec.2021-17.Nov.2023 17.Nov.2023-> 17.Nov.2024 Proposed new program 600 TL mn ~ 17,4 $ mn *5% will be cancelled once approved by
Slide 16: 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% belon
Slide 17: 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 16
Slide 18: Q3 2024 results
A) logo Q3 2024 results
Slide 19: Strong growth despite macro challenges
Strong growth despite macro challenges Consolidated (TL mn) y/y +8% +19% +24% +83% growth Solid results across the board 3,648 3,474 3,222 3,063 Consolidated • Strong overall performance, with substantial revenue growth in both 1,333 invoiced and IFRS revenues. 1,071 • Recurring revenue continued it
Slide 20: 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 +25,797,270 TL (+0,8 USD mn) -523,225,047 TL (-15,4 USD mn) Major impact is from prepaid Major impact is from contract expenses lia
Slide 21: Recurring Revenue Growth Ensuring Predictability
Recurring Revenue Growth Ensuring Predictability Sustainable revenue growth supported by SaaS transition Recurring Invoices (Consolidated) Recurring Invoices/Invoices TL mn % y/y +42% +75% Strong growth +18% -3% +3% 100% growth with transition SaaS to subscription 90% model in the 80% 20% growth y/y
Slide 22: Logo Türkiye: strong performance
Logo Türkiye: strong performance Logo Türkiye TL mn y/y +19% +14% +46% +7% growth 2,543 2,678 2,368 2,260 • Healthy revenue growth amid macro difficulties 982 1,124 • Solid SaaS revenue growth of 21% 183 267 • Strong and loyal customer base further expanded with new customer Invoiced revenue Revenue
Slide 23: Logo Türkiye figures w/out IAS29
Logo Türkiye figures w/out IAS29 Logo Türkiye (TL mn) Logo Türkiye (USD mn) y/y +78% +86% +67% y/y +20% +27% +12% -33% growth growth 2,327 2,093 1,307 72 60 65 1,123 51 708 425 462 460 20 22 21 14 Invoiced revenue Revenue EBITDA Net Income Invoiced revenue Revenue EBITDA Net Income 9M23 (w/out IAS29
Slide 24: eLogo: e-Service platform and leader in digital transformation
eLogo: e-Service platform and leader in digital transformation Leading player in e-government solutions; e-Invoice, e-Archive, e-Ledger, e-Dispatch with 198K customers # of customers (‘000) MRR MRR up from $1.6 mn to $2.08 mn y/y USD mn CAGR: 56% +26%y/y 2.2 2.0 198 1.8 170 1.6 157 1.4 135 1.2 1.0 9
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 ‘000 200 180 160 140 120 100 80 60 40 20 0 • MRR at $175K, up from $86K in Sept 23 Oct-22 Apr-23 May-23 Oct-23 Apr-24 May-24 Mar-23 Mar-24 Jan-23 Aug-23 Jan-24 Aug-24 Dec-22 Feb
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 0.40 0.35 0.30 0.25 0.20 0.15 0.10 0.05 0.00 Nov-22 Jan-23 Apr-23 Jul-23 Jan-24 Apr-24 Jul-24 Feb-23 Mar-23 Sep-23 Nov-23 Feb-24 Mar-24 Sep-24 Aug-23 Aug-24 Oct-22 Dec-22 Dec-23 M
Slide 27: Peoplise
Peoplise SaaS solution for recruitment, assessment, on-boarding and talent engagement needs of enterprises MRR USD ‘000 100 90 80 70 60 50 40 30 20 10 • Total customers is at 185, with 21% y/y 0 growth Dec-22 Dec-23 Apr-23 Apr-24 Nov-22 Jan-23 Jul-23 Jan-24 Jul-24 Feb-23 Mar-23 Aug-23 Sep-23 Nov-23
Slide 28: Total Soft: strong results
Total Soft: strong results Total Soft TL mn y/y • Revenues reached €27,6 mn in 9M24, up by 23% +21% +17% +133% +687% growth • Strong revenue growth, and optimization in operating expenses inline with project backlog realization improved profitability. EBITDA margin is at 22% in 970 9M24, increased f
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 MRR ARR USD ‘000 USD ‘000 50 216% 503 40 30 20 159 10 0 Sept.-23 Sept.-24 • MRR at $42K, up from $13K in Sept. 23 • ARR up by 216% reaching $503K • Total users at 16.8 thousand
Slide 30: Cost of Sales and Operating Expenses
Cost of Sales Consolidated TL mn Total Soft TL mn % of IFRS 18% 18% % of IFRS 59% 58% Revenues Revenues 3,648 3,063 970 803 23% 468 577 23% 541 664 y/y y/y growth growth 9M23 9M24 9M23 9M24 Revenue Cost of Sales Revenue Cost of Sales Operating Expenses Consolidated TL mn % of IFRS 29% 19% 10% 58% 9M
Slide 31: Effective financial management and strong balance sheet
Effective financial management and strong balance sheet Consolidated High liquidity FCF Adj. net cash* TL mn TL mn TL mn 1, 646 1,610 479 Treasury +90% -35% y/y -43% y/y 1,066 shares y/y growth growth growth LT Fin. Inv. Financial 946 915 Investments 670 563 565 (ST<) IFRS 16 32 impact 274 Cash an
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% • 105% invoiced revenue growth without IAS29 adj. • 107% IFRS revenue growth without IAS29 adj. • EBITDA growth of 73% without IAS29 adj. • EBITDA margin
Slide 33: Thank you
Thank you Logo Investor Relations Team T: +90 262 679 8000 E: investor@logo.com.tr
Logo Yazılım Sanayi ve Ticaret A.Ş. — Wood's EME Investor Conference 2024 on 6ix