Logo Yazilim Sanayi Ve Ticaret A.s. · BIST:LOGO
Logo Yazilim Sanayi Ve Ticaret A.s — Non-Deal Roadshow (June 2021)
42 slides from Logo Yazilim Sanayi Ve Ticaret A.s's roadshow presentation, Jun 22, 2021
Slide 1: Virtual NDR presentation, June 2021
Giilnur Anlas CFO Canan Senkut IR Director June 22"4, 2021
Slide 2: 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 reflected in th
Slide 3: Logo at a glance
Logo at a glance Enterprise = Application Local leader Active in Software (EAS) in Turkey and = India Romania through a JV Compan IFRS revenue Recurring Growing SaaS _ CAGR 2020 revenue base business — in 2010-2020 revenues ata migiaegese Dedicated 1.200+ 44% 5-000+ R&D spending employees ff women —
Slide 4: Key investment highlights
Key investment highlights Zoq we ca rie Solid growth Leading provider of EAS solutions tL © High profitability Extensive © product suit += @ Latest technology Largest business partner p xT network in Turkey / 800+ International expansion in emerging markets Most valuable IT brand* he ©
Slide 5: Logo Yazılım San. ve Tic. A.Ş. group structure
Logo Teknoloji Freefloat** ve Yatırım A.Ş.* 66.37% 33.63% Logo Yazılım San. ve Tic. A.Ş. Logo Infosoft Logo KOBİ Dijital ELBA HR Total Soft S.A. Logo Elektronik Business Technology Hizmetler A.Ş. (Peoplise) 80% Ticrate Hizmetleri A.Ş. Private Ltd. 100% 88% 100% 50% ABS SRL ABS Financial Logo Financi
Slide 6: Company history timeline
1986 1999 2000 1984 1996 2000 2004 2006 2011 2013 2016 2008 2013 2015 2016 2017 2019 2016 2017 2018 2020 6
Slide 7: Enterprise software market and market share
CAGR 3.1% 372 Other; 26% Logo; 24% 355 2019** 341 330 Microsoft; 319 323 5% SAP; 45% 2019 2020E 2021E 2022E 2023E 2024E
Slide 8: 60+ solutions one-stop-shop for companies of all sizes
Human Resources Enterprise Warehouse Resource Management Planning 60+ solutions Customer Environment Relationship Health and Safety Management Management Vertical Logo Solutions apps One-stop-shop for companies of all sizes Field B2B Sales Management Customisation Retail Management Tools 35+ years o
Slide 9: Competitors and positioning
Employees #Firms Positioning Competitors Volumes Revenues 1.5k 12.3k 300k 2.4m 2.7m • • • 1 2-3 4 • • •
Slide 10: Partner model and sales process
Partner 1 Partner 2 • R&D Product Initial Sales Following Marketing Development Sales (to customers) Sales • • Cross - Sales • Support Logo Coin • Membership • Services Tiger Go Start 10
Slide 11: Extensive distribution network and robust product suite
1 2 3 Robust product suite Extensive distribution Strong brand network ◉ Best suited to local market ◉ Large network of 800+ BPs and c. ◉ Trusted brand with > 35yrs of legislations and business 5,000 sales and implementation presence practices team members ◉ Lower total cost of ownership ◉ All BPs e
Slide 12: Major recurring revenue streams of Logo Turkey
Major recurring revenue streams of Logo Turkey LEM — Logo Enterprise Membership License “maintenance Revenue CAGR in 2015-2020 share in recurring revenues in 2020 releases in new features added in 2019 | @Nersion releases @ New features) es Regulatory changes a~ aca e < 7 version 2020 www.logo.com.t
Slide 13: eLogo market leader in e-government solutions
Market leader in e-government solutions; e-invoice, e-archive, e-ledger, e-dispatch with 56K customers # of customers ('000) eLogo invoiced revenues (TL mn) CAGR: 53% CAGR: 49% 158 56 107 85% 32 18 32 38 56 66% 10 14 68% 66% 74% 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 coin revenues module&
Slide 14: Total Soft: financial services and other verticals
25 years Financial Trade Services Energy Manufacturing 800 Services Constructions Healthcare Agriculture application software 14
Slide 15: Robust product suite and superior service quality
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 Management (HCM) leaders ◉ 1st place in Ro
Slide 16: Research and Development
Research and Development Evolving from content Meeting new user richness approach to Mobile and Compliance with generation’s expectations 8 —_ usability and accessibility web usage e-gov't processes Customer centric design approach Machine Learning aPaas for ERP All products with the enabled documen
Slide 17: Software ecosystem on cloud infrastructure
Software ecosystem on cloud infrastructure; enabling all Logo business partners and solutions partners to develop products that work in sync with core ERP
Slide 18: Logo CaptainBiz in India
✓ 670% growth y/y Logo CaptainBiz Logo CaptainBiz is GSTN is a mobile approved solution ✓ Only 8 solutions are Only 4 solutions are high service quality approved by the Goods mobile among the 8- and Services Tax GSTN-approved Network (GSTN) of India solutions ✓ easy upgradability ✓ Value creation on
Slide 19: Logo's new asset complementing its HR solutions
Logo’s new asset complementing its HR solutions
Slide 20: Turkey's digital airline using Logo's solutions
Turkey’s digital airline is using Logo’s solutions since 2008 20
Slide 21: Customer case studies: Unilever, Barilla, Yaktas
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’s need: • Managing distributors’ sa
Slide 22: Employees and sustainability
+ + + + 1,233 44% 45% 79 35 Employees Women Women in Employee Average age employees executive engagement of employees management index score (TR) + + + 78% 24% 50% 9,22/10 100% of employees R&D spending/ of Board is Corporate of e-waste works in invoiced independent Governance recycled in TR softwar
Slide 23: Q1 2021 results
A) logo Q1 2021 results
Slide 24: Q1 2021 highlights
▪ Started the year with a continued strong performance ▪ Recurring revenue grew in all categories reaching 65% of invoiced sales ▪ Turkey; ▪ Revenues increased by 44% with healthy new customer acquisition, increased spending from existing customers and strong growth in e-government coin sales ▪ Micr
Slide 25: Revenues, EBITDA and net income
Revenues (TL mn) EBITDA (TL mn) Net Income (TL mn) 37% 51% 40% 164% 39% 139 55 36% 55 102 36 20% 21 Q120 Q121 Q120 Q121 Q120 Q121 • Revenues grew by 37% reaching 139 TL mn, with Turkey and Romania operations contributing 65% and 35% respectively. • EBITDA increased by 51%, yielding 40% margin. • Net
Slide 26: Free cash flow, current ratio and EPS growth
Current Ratio Strong FCF – LTM (TL mn) 286% 1,53 81 1,34 21 2020 Q121 Q120 Q121 EPS* growth 61% 6,2 3,8 Q120 Q121 *Adjusted by 3.48% treasury shares
Slide 27: Logo Turkey revenues, EBITDA and net income
Logo Turkey-Revenues (TL mn) Logo Turkey-EBITDA (TL mn) Logo Turkey-Net Income (TL mn) 44% 59% 154% 49% 49% 91 45% 45 44 63 28% 28 18 Q120 Q121 Q120 Q121 Q120 Q121 • Revenues increased by 44% with healthy new customer acquisitions, increased spending from existing customers, and strong growth in e-s
Slide 28: eLogo customers and invoiced revenues
Market leader in e-government solutions; e-invoice, e-archive, e-ledger, e-dispatch with 62K customers # of customers ('000) eLogo invoiced revenues (TL mn) CAGR: 53% 62% CAGR: 49% 62 24 56 32 38 37 14 18 134 10 10 18 11 70 21 28 38 2016 2017 2018 2019 2020 Q120 Q121 2016 2017 2018 2019 2020 coin us
Slide 29: Logo CaptainBiz users
✓ 670% growth y/y Logo CaptainBiz Logo CaptainBiz is GSTN is a mobile approved solution ✓ Only 8 solutions are Only 4 solutions are high service quality approved by the Goods mobile among the 8- and Services Tax GSTN-approved Network (GSTN) of India solutions ✓ easy upgradability ✓ Value creation on
Slide 30: Peoplise highlights
✓ Revenue and customer growth remained strong in Q121 ✓ Reached 120+ customers, ranking #1 in Turkey ✓ The new version of fully digital applicant tracking system was launched successfully in Q121 improving talent analytics and customer experience ✓ AI based chatbot supported 100% Digital assessment
Slide 31: Total Soft revenues, profit and EBITDA
Total Soft–Revenues (TL mn) Total Soft–Gross profit (TL mn) Total Soft–EBITDA (TL mn) 25% 21% 25% 48% 50% 21% 48 23 22% 38 19 10 8 Q120 Q121 Q120 Q121 Q120 Q121 Total Soft-Net Income (TL mn) • Revenues grew by 25% y/y and revenue growth in Euros was -5% 221% y/y 21% • Gross profit is up by 21% yield
Slide 32: First quarter invoices and IFRS revenues
First Quarter Invoices & IFRS Revenues (TL mn) IFRS Revenues= 139144 Invoices - Net Deferrals Invoices 102108 • Q1 sales invoice growth was 33% y/y 81 76 67 66 54 53 • IFRS Revenue growth was 37%y/y in Q1 36 30 26 24 Q115 Q116 Q117 Q118 Q119 Q120 Q121 Invoiced Revenues (TL mn) CAGR: 32% • In Turkey,
Slide 33: Consolidated recurring invoices
Consolidated Recurring Invoices (TL mn) CAGR: 40% • LEM revenues increased by 19% y/y 384 • Pay as you go revenues increased by 63% y/y with strong coin sales. 257 181 44% • Maintenance revenues increased by 34% y/y 135 with significant contribution from Total Soft 73 84 94 65 • SaaS revenues increa
Slide 34: Invoice revenues: one-time vs recurring
2016 2017 2018 2019 2020 4-yr-CAGR Invoice revenues (TL mn) 175,8 259,1 333,0 460,1 617,7 37% One-time 91,6 123,6 152,5 203,0 233,5 26% share in total 52% 48% 46% 44% 38% Recurring 84,1 135,5 180,5 257,2 384,2 46% share in total 48% 52% 54% 56% 62% Recurring invoice revenues (TL mn) LEM 46,2 61,4 75
Slide 35: Cost of sales as % of IFRS revenue
Consolidated (TL mn) – As % of IFRS Revenue Total Soft (TL mn) – As % of IFRS Revenue 20% 20% 50% 52% 139 48 102 38 36% 30% 25 19 20 28 Q120 Q121 Q120 Q121 Revenue Cost of Sales Revenue Cost of Sales
Slide 36: OpEx, R&D, S&M and G&A as % of revenue
OpEx (TL mn) – As % of IFRS Revenue R&D Expenses (TL mn) – As % of IFRS Revenue 58% 53% 26% 25% 139 139 102 102 74 59 25% 29% 35 27 Q120 Q121 Q120 Q121 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 17% 14% 15% 15% 139 139 102
Slide 37: R&D spending as % of invoices
R&D Spending (TL mn) – As % of Invoices 33% 31% 35% 200 30% 30% 30% 27% 27% 30% 24% 25% 150 146 20% 100 123 15% 99 38% 77 10% 50 57 41 45 5% 33 0 0% 2015 2016 2017 2018 2019 2020 Q120 Q121 R&D Spending (TLmn) - LHS R&D Spending/Invoices -RHS
Slide 38: Balance sheet highlights and working capital
Balance Sheet Highlights (TL mn) Working Capital (TL mn) 2020 1Q21 ∆ Cash & Cash Eq. 293,7 319,1 9% 50% 330 44% 300 Trade Receivables 235,7 203,0 -14% 41% 40% 36% 270 Tangible Assets 19,3 18,9 -2% 33% 34% 240 28% 30% Intangible Assets* 470,2 506,8 8% 210 30% 24% 180 Other Assets 78,6 85,2 8% 150 20%
Slide 39: 2021 guidance
2020 2021 guidance Invoiced Revenue (TL mn) +31% 179 560 226 802 615 16 429 6 IFRS Revenue (TL mn) +33% 226 15 728 179 6 545 489 361 EBITDA** (TL mn) +47% 221 260 30 177 43 -8 150 -8 Margins 41% 17% n.m. 33% 45% 19% n.m. 36% EBT (TL mn) +66% -11 190 11 196 118 4 -9 118 Margins 33% 2% n.m. 22% 39% 5%
Slide 40: Appendix
Appendix
Slide 41: New communique's details
New communique’s details (October 19th, 2019) BEFORE AFTER (eff. as of July 1st, 2020) Companies w/sales 5mio₺+, e-invoice Companies w/sales 10mio₺+ specific sectors e-archive Companies w/sales 5mio₺+ All e-invoice issuers and and online sales invoices above 5K and 30K Required to safekeep on Requir
Slide 42: Thank you
Thank you
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