Logo Yazilim Sanayi Ve Ticaret A.s. · BIST:LOGO
Logo Yazilim Sanayi Ve Ticaret A.s — Logo Yazılım Sanayi ve Ticaret A.Ş. — Wood EME Conference 2022
42 slides from Logo Yazilim Sanayi Ve Ticaret A.s's conference presentation, Dec 7, 2022
Slide 1: Wood EME Conference Investor Presentation
Wood EME Conference Investor Presentation Gülnur Anlaş CFO Canan Şenkut IR Director December 7-8, 2022
Slide 2: 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 3: Logo at a glance
Logo at a glance Enterprise Application Local leader Active in India Software (EAS) in Turkey and through a JV Company Romania 38% 62% IFRS revenue 767 mn TL Recurring Growing SaaS CAGR 2021 business revenue base in 2011-2021 revenues Dedicated R&D 1.300+ 43% 5.000+ 150.000+ spending employees women
Slide 4: Key investment highlights
Key investment highlights Solid growth Leading provider of EAS solutions High profitability Extensive Solutions& Services 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.t
Slide 5: Shareholder structure
Shareholder structure Logo Teknoloji Freefloat** ve Yatırım A.Ş.* 66.37% 33.63% Logo Yazılım San. ve Tic. A.Ş. Logo Infosoft ELBA HR Total Soft S.A. Business Technology (Peoplise) 80% Private Ltd. 88% 50% ABS SRL ABS Financial Logo Financial 80% Services SRL Solutions GmbH 40% 100% * 32,32% belongs
Slide 6: Logo milestones
Logo milestones 1980s-1990s 2000s 2010s 2020s ✓ 1984; establishment ✓ 2000; First-ever ✓ Local acquisitions; Coretech ✓ Specialized acquisitions; software company IPO (2011), Netsis (2013), WorldBI Peoplise (Elba HR, 2020), ✓ Enterprise Applications- in Turkey (LogoBI, 2011), Intermat (CRM, Nexia (R
Slide 7: Turkish EAS market and Logo market share
Turkish EAS market and Logo market share Turkish EAS market growth expectation* ($mn) CAGR 3.1% 372 Others; 24% Logo; 26% 355 2020** 341 Oracle; 5% 330 319 323 Microsoft; 5% 2019 2020E 2021E 2022E 2023E 2024E SAP; 40% SMEs lead software market growth Government push for digitalisation Enterprise clo
Slide 8: Extensive product suite
Extensive product suite 60+ solutions One-stop-shop for companies of all sizes 35+ years of experience www.logo.com.tr 8
Slide 9: 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 • Higher pre
Slide 10: 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 11: 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 900+ BPs and c. ◉ Trusted brand with > 35yrs of legislations and business 5,000 sales and implementation presence practices team members ◉ Low
Slide 12: 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 3,996 leader in License new features 124,000 e-government Customers maintenance added in 2021 solutions Version 56% 28% e-invoice Logo coin releases Revenue New features revenue e-archiv
Slide 13: eLogo: e-services platform and leader in digital transformation
eLogo: e-services platform and leader in digital transformation Market leader in e-government solutions; e-invoice, e-archive, e-ledger, e-dispatch with 124K customers ✓ High-quality customer service in addition to superior # of customers ('000) tech infrastructure differentiates eLogo in a very com
Slide 14: Logo İşbaşı: SaaS solution for MicroSME digitalization
Logo İşbaşı: SaaS solution for MicroSME digitalization Offering basic accounting software and e-invoicing services # of users ('000) 45 46 48 48 48 47 43 44 37 40 User growth: 33 27 29 77% y/y in Q322 21 24 16 18 20 13 15 4 6 7 8 10 12 ARPU*: 331 TL 3 1 1 2 2 2 2 3 LTV/CAC**: 14 Sept.'20 Sept.'21 Se
Slide 15: Peoplise: next generation talent acquisition
Peoplise: next generation talent acquisition SaaS solution for recruitment, on-boarding and talent engagement needs of enterprises www.logo.com.tr 15
Slide 16: Research and Development
Research and Development Evolving from content Meeting new user richness approach to Mobile and Compliance with generation’s expectations & usability and accessibility web usage e-gov’t processes Customer centric design approach Machine Learning enabled aPaas for ERP All products with the documentat
Slide 17: Logo Cloud Portal
Logo Cloud Portal Software ecosystem on cloud infrastructure; enabling all Logo business partners and solutions partners to develop products that work in sync with core ERP LOGO ERP Core application Micro End services user portal Logo solution providers ISV App1 3rd parties App2 App3 Partner ECO sys
Slide 18: Logo Total Soft - Romania
Logo Total Soft - Romania 25 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 18
Slide 19: 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 >25 yrs of ◉ Development of best of breed ERP and Human Capital presence solutions together w/ vertical
Slide 20: MicroSME digitalization - India
MicroSME digitalization - India CaptainBiz: pre-accounting and e-invoicing services with in-built GSTN compliance Logo CaptainBiz Logo CaptainBiz Same 1,5K users is GSTN is a mobile source-code at end-2021 approved solution with Logo İşbaşı Only 8 solutions are Only 4 solutions are Basic functionali
Slide 21: ESG in numbers
ESG in numbers + + + 1,315 43% 50% 35 Employees Women Women in Average age employees executive of employees management + + 27% 50% 9.28/10 100% R&D spending/ of Board is Corporate of e-waste invoiced independent Governance recycled in TR revenues Rating *Employee data is 2021 year-end figures includ
Slide 22: Q3 2022 results
A) logo Q3 2022 results
Slide 23: Strong performance continues in Q322
Strong performance continues in Q322 Consolidated Revenues (TL mn) EBITDA (TL mn) Net Income (TL mn) 126% 81% 134% 32% 30% 383 122 113 40% 29% 169 67 49 Q321 Q322 Q321 Q322 Q321 Q322 • Strong growth continued in Q3 across the board despite macro uncertainties • Recurring revenues were 59% of invoice
Slide 24: Solid results in 9M22
Solid results in 9M22 Consolidated Revenues (TL mn) EBITDA (TL mn) Net Income (TL mn) 110% 94% 39% 110% 1,020 35% 394 42% 353 35% 486 203 168 9M21 9M22 9M21 9M22 9M21 9M22 • Revenues up by 110%, reaching 1.02 TL bn, with Turkey and Romania operations contributing 64% and 36% respectively • EBITDA up
Slide 25: Effective financial management
Effective financial management Consolidated Cash and Financial Investments (TL mn) Strong FCF – LTM (TL mn) 8% 600 169% 555 174 295 337 259 263 65 9M21 9M22 2021 9M22 Financial Investments (ST<) Cash and Cash Eq. EPS* growth (LTM) 126% 4.66 2.07 9M21 9M22 *Adjusted by 3.61% treasury shares (9M21:
Slide 26: Strong performance in Turkey amid macro challenges
Strong performance in Turkey amid macro challenges Logo Turkey-Revenues (TL mn) Logo Turkey-EBITDA (TL mn) Logo Turkey-Net Income (TL mn) 96% 100% 73% 88% 122% 116% 648 48% 50% 311 324 51% 46% 325 42% 166 47% 221 48% 150 42% 104 113 54 93 47 Q321 Q322 9M21 9M22 Q321 Q322 9M21 9M22 Q321 Q322 9M21 9M2
Slide 27: eLogo: e-services platform and leader in digital transformation
eLogo: e-services platform and leader in digital transformation Market leader in e-government solutions; e-invoice, e-archive, e-ledger, e-dispatch with 124K customers # of customers ('000) eLogo invoiced revenues (TL mn) CAGR: 56% 55% CAGR: 47% 59% 124 24 30 95 80 24 56 14 37 194 179 32 134 10 14 1
Slide 28: Logo İşbaşı: SaaS solution for MicroSME digitalization
Logo İşbaşı: SaaS solution for MicroSME digitalization Offering basic accounting software and e-invoicing services # of users ('000) 44 45 46 48 48 48 47 40 43 33 37 User growth: 27 29 18 20 21 24 77% y/y 15 16 10 12 13 6 7 8 1 1 2 2 2 2 3 3 4 ARPU*: 331 TL Aug.'21 Aug.'20 Dec.'19 Mar.'20 Apr.'20 De
Slide 29: Solid performance at Total Soft
Solid performance at Total Soft Total Soft–Revenues (TL mn) Total Soft–Gross profit (TL mn) Total Soft–EBITDA (TL mn) 187% 130% 144% 108% 42% 113% 124% 371 22% 155 83 46% 38% 23% 18% 162 162 45% 75 24% 61 37 29 56 25 14 Q321 Q322 9M21 9M22 Q321 Q322 9M21 9M22 Q321 Q322 9M21 9M22 Total Soft-Net Incom
Slide 30: Invoiced Revenue vs IFRS Revenue (Consolidated)
Invoiced Revenue vs IFRS Revenue (Consolidated) Third Quarter Invoices & IFRS Revenues (TL mn) IFRS Revenues = Invoices - Net Deferrals 383 380 Invoices • Q3 sales invoice growth was 121% y/y • IFRS Revenue growth was 126%y/y in Q3 169 172 120137 77 75 92 90 57 52 38 28 Q316 Q317 Q318 Q319 Q320 Q321
Slide 31: Recurring Revenue Growth Ensuring Predictability
Recurring Revenue Growth Ensuring Predictability Consolidated Recurring Invoices (TL mn) • LEM revenues increased by 83% y/y CAGR: 44% • Pay as you go revenues increased by 59% y/y 84% • Maintenance revenues increased by 104% y/y 575 527 • Retail SaaS revenues increased by 129% 384 312 257 • SaaS re
Slide 32: Cost of Sales
Cost of Sales Consolidated (TL mn) – As % of IFRS Revenue Total Soft (TL mn) – As % of IFRS Revenue 20% 23% 54% 58% 1,020 371 486 216 162 147% 237 87 96 149% 9M21 9M22 9M21 9M22 Revenue Cost of Sales Revenue Cost of Sales www.logo.com.tr 12
Slide 33: Operating Expenses
Operating Expenses OpEx (TL mn) – As % of IFRS Revenue R&D Expenses (TL mn) – As % of IFRS Revenue 50% 47% 24% 20% 1,020 1,020 486 474 486 244 94% 74% 204 117 9M21 9M22 9M21 9M22 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
Slide 34: Dedicated Investment in Technology
Dedicated Investment in Technology R&D Spending (TL mn) – As % of Invoices 350 33% 31% 35% 30% 30% 30% 300 27% 27% 30% 24% 305 250 25% 200 232 20% 150 15% 146 146 100 123 10% 99 50 77 5% 57 0 0% 2016 2017 2018 2019 2020 2021 9M21 9M22 R&D Spending (TLmn) - LHS R&D Spending/Invoices -RHS www.logo.com
Slide 35: Strong Balance Sheet
Strong Balance Sheet Balance Sheet Highlights (TL mn) Working Capital (TL mn) 2021 9M22 ∆ 44% Cash & Cash Eq. 259.4 263.1 1% 40% 36% 500 Trade Receivables 333.7 310.5 -7% 33% 34% 31% 400 Tangible Assets 21.0 23.6 13% 28% 30% 26% Intangible Assets* 759.2 975.9 29% 300 Other Assets 434.2 555.5 28% 20%
Slide 36: Appendix
Appendix
Slide 37: Revised Guidance
Revised Guidance 2021 2022 revised guidance Invoiced Revenue (TL mn) +81% 483 1,574 1,050 40 254 19 867 594 IFRS Revenue (TL mn) +88% 483 35 1,445 262 767 930 490 15 EBITDA** (TL mn) +68% 352 150 481 198 96 -14 286 -34 Margins 40% 37% n.m. 37% 38% 31% n.m. 33% EBT (TL mn) +57% 425 71 -38 471 238 72
Slide 38: eLogo: e-services platform and leader in digital transformation
eLogo: e-services platform and leader in digital transformation New communique’s details (January 22nd, 2022) BEFORE AFTER (eff. as of July 1st, 2022) Companies w/sales 5mio₺+, Companies w/sales 4mio₺+, e-invoice Specific sectors with no sales Companies in some sectors w/sales 1mio ₺+, threshold Spe
Slide 39: Invoiced Revenue Growth and Breakdown
Invoiced Revenue Growth and Breakdown 2016* 2017 2018 2019 2020 2021 4-yr-CAGR Invoiced revenues (TL mn) 175,8 259,1 333,0 460,1 617,7 848,6 35% One-time - TR 70,3 83,4 95,0 130,1 145,6 207,2 26% share in total 40% 32% 29% 28% 24% 24% One-time - RO 21,3 40,2 57,5 72,9 87,9 114,2 30% share in total 1
Slide 40: ERP case study: Pegasus Airlines
ERP case study: Pegasus Airlines Turkey’s digital airline is using Logo’s solutions since 2008 eLogo Logo Connect allows Pegasus process e- ensures seamless invoices within its vast supply connection between the chain network and with core ERP and e-gov’t General Revenue solutions Administration (GI
Slide 41: Case studies for various solutions
Case studies for various solutions Unilever / Barilla / Yaktas / Consumer Goods Pasta Flooring ▪ Logo Ocean (warehouse automation) ▪ Logo CRM ▪ Logo j-Platform (ERP) ▪ Logo Tiger 3 Enterprise (ERP) ▪ Logo Netsis 3 Standard (ERP) ▪ e-gov’t solutions (eLogo) Customer’s need: Customer’s need: Customer’
Slide 42: Thank you
Thank you
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