Slide 1: Investor's Briefing 9M 2024
INVESTOR’S BRIEFING 9M 2024 Dated: 25th October 2024 www.systemsltd.com 1
Slide 2: Agenda
Agenda Systems Limited - 2 Key Facts & Strategic Plan 4 Financial At a glance Market Overview & Way Forward Performance 5ESG Q&A 2
Slide 3: At a glance
At a glance Systems Limited is a leading global digital transformation IT consulting and services provider, boasting a global team of over 7000 innovative minds. We pioneer the creation of cutting-edge enterprise solutions, shaping our clients' digital footprint for enduring growth and profitability
Slide 4: Key Stats & Market Overview
Key Stats & Market Overview 4 4
Slide 5: Strong QoQ Performance
Strong QoQ Performance PKR (M illions) Q2-24 Q3-24 Q3-23 Variance Description Vs. Q2 - 2024 Vs. SPLY Act ual Act ual Act ual Am ount %age Am ount %age Revenue 15,829 17,286 14,145 1,457 9% 3,142 22% Cost of sales 12,230 12,907 10,149 677 6% 2,758 27% Am ount 3,599 4,379 3,995 Gross Profit 781 22% 38
Slide 6: Quarter 3 Performance (at Constant Rate)
Quarter 3 Performance (at Constant Rate) PKR (M illions) Q3-23 Q3-24 Q3-24 Varian Description At const ant Vs. SPL Act ual Act ual rat e Am ount Revenue 14,145 18,017 17,286 3,872 Cost of sales 10,149 13,142 12,907 2,992 Am ount 3,995 4,875 4,379 Gross Profit 880 %age 28% 27% 25% Am ount 2,108 2,819
Slide 7: Growth & efficiency levers
Growth & efficiency levers • ~10 new enterprise customers signed this year • Almost all of the existing enterprise customers have shown growth • ~8 new channels and partnerships have been signed • Overall efficiency improvement • Indirect overheads reduction as a percentage of revenue 8 8
Slide 8: Fact Sheet (USD)
Fact Sheet Revenue Awards & Recognitions USD ’M 190.79 173.39 OP USD 'M 28.16 * 26.09 140.25 * 22.32 19.43 93.85 13.06 61.01 8.84 50.10 MEA Delivery partner of the year 2019 2020 2021 2022 2023 9M 2024 2019 2020 2021 2022 2023 9M 2024 *One off trading transaction (CLOS) has been excluded in 2022 *OP
Slide 9: Fact Sheet (PKR)
Fact Sheet Revenue 53,435 Awards & Recognitions PKR ’M 48,310 7,887 * OP PKR ’M CAGR 62% CAGR 44% 6,219 28,827 * 5,363 3,169 15,304 2,114 9,877 MEA Delivery partner of 7,536 1,330 the year 2019 2020 2021 2022 2023 9M 2024 2019 2020 2021 2022 2023 9M 2024 *One off trading transaction (CLOS) has been
Slide 10: Client Composition 2024
Client Composition 2024 Client Contribution to Revenue 49% 48% 36% 33% 27% 25% 13% 15% Top Client Top 5 Client Top 10 Client Top 20 Client FY 2023 FY 2024 (FCST) Active Clients* Client Metrics FY 2023 FY 2024 (FCST) FY 2023 FY 2024 (FCST) Active Clients 236 251 $25m+ clients - 1 $10-25m clients 1 1
Slide 11: Investment Highlights / Value Propositions
Investment Highlights / Value Propositions Digital, data & AI, & cloud Emerging technologies Growth We elevate possibilities and unlock new We amplify human possibilities through Our innovative solutions and strategic prowess growth horizons through innovation, generative AI and deliver business and
Slide 12: Global Delivery Model
Global Delivery Model MEA KSA APAC PK Our talent pool is characterized UAE Saudi Arabia Australia Lahore by its global diversity and Egypt Bahrain Singapore Karachi inclusivity. Qatar Malaysia Islamabad We take great pride in our workforce, South Africa Faisalabad recognizing them as our greatest as
Slide 13: Target Market & Customers 2024
Target Market & Customers 2024 We have a strong customer base in most of the industry verticals which not only minimizes our concentration risk but also gives us the competitive advantage by developing resources with cross industry knowledge. Revenue by Vertical Vertical Customer Split * 11% BFSI 68
Slide 14: Market Opportunity
Market Opportunity The Cyber-Human Fusion Generative AI will take over 46% of organizations are planning to invest By 2025, the global market for generative AI in human-computer interfaces (HCIs) in the is expected to reach $26.8 billion, driven by next two years to facilitate seamless human- its ca
Slide 15: The rise of AI
The rise of AI Impact Transition from growth to Unit-level productivity enhancing scalability overall organizational performance Reduced contextual Increased efficiency and dependence fuels innovation reduced cost Emerging tech bring novel challenges Algorithm-driven enterprises Customers, inspired
Slide 16: GenAI in action: Systems Limited's use cases
GenAI in action: Systems Limited's use cases Financial Institutions Telecom FMCGs AI Use Case and Regulation Mapper Generate a Business model canvas and a new strategy to diversify the revenue lines Smart Product Positioning Maps Using Gen AI, AML regulations can be mapped with the Gen AI converts o
Slide 17: How do we differentiate ourselves
How do we differentiate ourselves Employer Optimally scaled scaled & skilled Employee Customer of choice and skilled ownership longevity We attract and have access to We provide a personalized and laser- Our values are shaped by our Most of our clients have been with us the best and most diversified
Slide 18: Pillars of our strategic plan
Pillars of our strategic plan Strong focus on building AI competency by building and developing a resource pool. The Company is also Skills and service developing AI offerings for the BFS, Telco and Retail/CPG verticals. offerings The Company has divided business development and delivery in 3 key ve
Slide 19: Investment Priorities
Investment Priorities Continued Profit Improvement, Healthy Cash Flow • Strong cash flow generation allows attractive dividend payout, and flexibility for investment opportunities. → Investment in talent • Systems Limited has a history of investing its → Diversification of talent pool among cash flo
Slide 20: Strong QoQ Performance
Strong QoQ Performance 9M ‘24 vs 9M ‘23 Growth (USD) 9M ‘24 vs 9M ‘23 Growth (USD) EBITDA Revenue 0% 100% 0% +30% 100% +7% PKR ‘M USD ‘M PKR ‘M USD ‘M 17,286 173.4 16,102 2,903 26.7 15,829 15,194 2,728 24.9 2,391 133.8 2,323 9M '23 9M '24 Q4 '23 Q1 '24 Q2 '24 Q3 '24 9M '23 9M '24 Q4 '23 Q1 '24 Q2 '2
Slide 21: Strong QoQ Performance
Strong QoQ Performance Q3 ‘24 vs Q3 ‘23 Growth (USD) Q3 ‘24 vs Q3 ‘23 Growth (USD) Revenue EBITDA 0% 100% 0% 100% +28% +9% PKR ‘M USD ‘M PKR ‘M USD ‘M 2,903 16,102 15,829 15,194 62.11 2,616 14,145 9.80 2,391 2,323 8.99 48.61 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '23 Q3 '24 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '2
Slide 22: Currency Mix – 9M 2024
Currency Mix – 9M 2024 By Revenue By Cost 7% 40% 60% 93% FCY PKR FCY PKR 25
Slide 23: Environment, Social & Governance (ESG)
Environment, Social & Governance (ESG) 26
Slide 24: ESG Overview
ESG Overview Be Kind with the Environment Key Indicators: • Reduced electricity costs by moving data centres to cloud • Controlled e-waste by donating laptops and computers • Policy to reduce printing and use digital media as much as possible • Raising employee awareness to control water wastage and
Slide 25: Q&A
Q&A 12
Slide 26: Thankyou
Thankyou Get in touch www.systemsltd.com 13