Ard Grup Bilisim Teknolojileri As · BIST:ARDYZ
Ard Grup Bilisim Teknolojileri As — Q1 2024 Earnings Presentation
35 slides from Ard Grup Bilisim Teknolojileri As's earnings presentation, Jun 24, 2024
Slide 1: Investor Presentation 1Q 2024 Figures
1 INVESTOR PRESENTATION 1Q 2024 FIGURES 24.06.2024
Slide 2: Headlines, Summary, Financials, Investment Thesis, Appendix
2 01 02 03 04 05 Headlines Summary Financials Investment Appendix Thesis Page 3 Page 4 Page 10 Sayfa 30 Page 32
Slide 3: 01.01.2024-31.03.2024 Financial Period
01.01.2024-31.03.2024 financial period Net Sales, m₺ EBITDA, m₺ 364 Annualy* %142 Growth Net Sales mTL 400,0 350,0 Gross Margin 71% 80% 70% 250,0 83% EBITDA Margin 90% 80% 0,0 Net Income, m₺ Net Margin -7% -24,5 0% -10% 3 -20,0 59% 200,0 300,0 60% 63% 70% -20% 228 EBITDA 60% -40,0 250,0 50% -30% 150
Slide 4: 1Q 2024 Headlines
1Q 2024 HEADLINES 4 Efficient Use of Capital: 30,6% ROE* including TAS-29 Effect Indebtedness: Low Indebtedness Creates Significant Borrowing Capacity Subsidiary Acquisition: 51% Shares of Oxivo Grup Bilişim A.Ş. Acquired * Return on Equity
Slide 5: Executive Summary
EXCUTIVE SUMMARY 5 Leverage The decline in working capital sales share with increasing sales between 2019 and 2021 indicates efficiency. However, with the increase in trade receivables and the decline in commercial debts in 2023/12 and in 2024/03, the need for working capital increased. In 2023, inc
Slide 6: Subsidiaries
SUBSIDIARIES 6 SubsıdIarIes Company's Capital Title Capital Business Overview Share Virtual Reality (“VR”) platforms, Artificial Intelligence (“AI”) algorithms, Big Data Processing (“Big Data”) are used in planning, execution, monitoring, forecasting and Açılımsoft Yazılım Teknolojileri A.Ş. 3.000.0
Slide 7: Headlines, Summary, Financials, Investment Thesis, Appendix
7 01 02 03 04 05 Headlines Summary Financials Investment Appendix Thesis Page 3 Page 9 Page 10 Page 30 Page 32
Slide 8: Shareholding Structure
SHAREHOLDING STRUCTURE 8 Board of Directors Name and Surname Title Arda Ödemiş (Representing ARD Grup Holding) Chairman of the Board Deputy Chairman of the Board of Doğan Ödemiş Directors Gürkan Bilgin Board Member Sabri Çağrı Çakır Board Member Nükhet Doğan Independent Board Member Personnel Having
Slide 9: Headlines, Summary, Financials, Investment Thesis, Appendix
9 01 02 03 04 05 Headlines Summary Financials Investment Appendix Thesis Page 3 Page 9 Page 10 Page 30 Page 32
Slide 10: Solid Performance
10 SOLID PERFORMANCE 2024/03 & 2023/03 REVENUE 127,7% 141,6% GROWTH EBITDA * 83,5% GROWTH EBITDA* MARGIN 62,8% *Other Income / Expense from Operating Activities are included in EBITDA
Slide 11: 141,6% Real Growth in Sales in 1Q24
11 1Q 2024 HEADLINES 141,6% Real Growth in Sales in 1Q24, Including TAS-29 Effect PERIODICAL FIGURES Net Sales (mTL) 400 ➢ Net sales increased by 141,6% annually, including the TAS-29 effect, reaching 363,8 mTL in the first quarter of 2024. 350 363,8 300 250 200 150 150,6 100 50 0 3M23 3M24
Slide 12: High Revenue Growth Led to 83,5% EBITDA Growth
12 1Q 2024 HEADLINES Despite EBITDA Margin Decline, High Revenue Growth Led to 83,5% EBITDA Growth PERIODICAL FIGURES Net Income (mTL) EBITDA (mTL) 0 -6,9% 250 62,8% -20 -25,0 200 228,4 -74,5% 82,6% -40 150 -60 100 124,5 -80 50 -100 -112,2 -120 0 3M23 3M24 3M23 3M24 ➢ EBITDA improved by 83,5% YoY to
Slide 13: Main Driver of EBITDA Growth is Revenue Growth
13 1Q 2024 HEADLINES Main Driver of EBITDA Growth is Revenue Growth ➢ The high real growth in revenues stood out as the main driver of EBITDA growth despite the decline in gross margin. ➢ R&D expenditures create expectations for EBITDA growth in the coming period. ∆ : Change
Slide 14: Net Monetary Position Losses Suppressed Net Profit
14 1Q 2024 HEADLINES Net Monetary Position Losses Suppressed Net Profit ➢ Real increase in revenues and gross profit supported EBITDA growth, while net loss for the period was recorded at TL 24,5 million as of 2024/03, down from TL 112,2 million in 2023/03 due to net monetary position losses. ∆ : Ch
Slide 15: Increase in Trade Receivables Increased Working Capital
15 1Q 2024 HEADLINES Increase in Trade Receivables Increased Working Capital Working Capital Working Capital Working Capital Analysis 1.600 77% 1.400 76,6% 77% mTL 2023/12 2024/03 97 1.200 76% Trade Receivables 1.046,5 1.274,2 111 1.000 76% Inventory + Other Current Assets 110,7 97,0 800 76% Trade P
Slide 16: Increase in Trade Receivables Increased Working Capital
16 1Q 2024 HEADLINES Increase in Trade Receivables Increased Working Capital ➢ In 1Q2024, TL 228 mn increase in trade receivables and TL 37 mn decrease in trade payables increased working capital while TL 14 mn decrease in inventories and other current assets and TL 104 mn increase in other current
Slide 17: Net Debt/EBITDA Ratio of 0,4x
17 1Q 2024 HEADLINES Net Debt/EBITDA Ratio of 0,4x Means High Borrowing Capacity Net Debt Position Net Debt/EBITDA Net Debt & Equity & Financial Leverage 500 0,5 TLm 2023/12 2024/03 450 0,4 0,4 Cash and Cash Equivalents 17,0 20,3 400 438,2 0,4 Financial Investments 82,5 8,0 350 0,3 0,3 Net Debt/EBIT
Slide 18: Foreign Exchange Position and Debt Maturity
18 1Q 2024 HEADLINES Foreign Exchange Position Maturity of Financial Debt – 2024/03 0 0,0% -0,2% 3-12 Mounth -5 -8,80 52% -0,4% -0,4% -10 -0,6% -26,10 -15 -0,8% -1,0% -20 0-3 Mounth -1,3% 20% -1,2% -25 1-2 Year -1,4% 28% -30 -1,6% 2023/12 2024/03 Foreign Exchange Position Foreign Exchange Position /
Slide 19: Ratio of Investments to Annual Net Sales
19 1Q 2024 HEADLINES Due to Subsidiary Acquisition in 2023/12, Ratio of Investments to Annual Net Sales Remained High. Investments (mTL) 700 60,0% 17,8 600 49,8% 50,0% 500 40,0% 400 30,0% 300 635,8 20,0% 200 100 10,2 10,0% 0,2 2,9% - 0,0% 2023/12 2024/03 R&D (mTL) Other Investment Invesment/Sales
Slide 20: 30,6% ROE in Real Basis
20 1Q 2024 HEADLINES 30,6% ROE in Real Basis* ➢ The degree of liquidity of the balance sheet 2.000 ROE continued to increase with each passing period. 1.990 ➢ Return on equity is above bond yield, indicating 1.980 2023/12 that capital is used efficiently. Equity (TLm) 25,8% 1.970 1.960 ➢ Low debt me
Slide 21: Financial Ratios: Liquidity and Investment
21 1Q 2024 HEADLINES Financial Ratios Liquidity Ratios 2024/03 2023/12 Reference Current Ratio 2,50 2,55 1,0-1,5 Liquidity Ratios 2,47 2,53 0,8-1,0 Investment Ratios (12M Trailing) 2024/03 2023/12 Reference Investment/Depreciation 5,4% 393,5% >%100 Investment/Net Sales 2,9% 49,8% Sector Trade Receiv
Slide 22: Financial Ratios: Debt
22 1Q 2024 HEADLINES Financial Ratios Debt Ratios 2024/03 2023/12 Reference Total Debt/Total Assets 29,6% 24,7% <%40 Short-Term Fin. Debt/Equity 17,3% 15,6% <100% Coverage Ratio 11,7 13,0 >3 Net Debt/EBITDA 0,4 0,3 <4 Short-Term Liabilities/Assets 19,6% 17,2% Sector Long-Term Liabilities/Assets 9,9%
Slide 23: Financial Ratios: Profitability
23 1Q 2024 HEADLINES Financial Ratios Profitability Ratios (12MTrailing) 2024/03 2023/12 Reference Gross Margin 75,2% 79,3% Sector EBIT Margin 59,9% 63,7% Sector EBITDA Margin 72,5% 76,4% Sector Net Margin 39,2% 38,9% Sector ROE 30,6% 25,8% >Bond Yield ROA 32,2% 31,2% Sector Financial Exp./Net Sales
Slide 24: Stock Performance and Market Cap
24 1Q 2024 HEADLINES Stock Performance (TL) Mcap (TL) 70 41,76 ₺ 12.000 7.099,2 m TL million TL 31.03.2024 31.03.2024 60 10.000 50 8.000 40 6.000 30 20 4.000 10 2.000 0 0 ➢ Return of 5.054% from IPO date to March 31, 2024. ➢ Strong financial data and compliance with corporate governance principles s
Slide 25: Headlines, Summary, Financials, Investment Thesis, Appendix
25 01 02 03 04 05 Headlines Summary Financials Investment Appendix Thesis Page 3 Page 9 Page 10 Page 30 Page 32
Slide 26: Investment Thesis
26 1Q 2024 HEADLINES Investment Thesis Increasing software expenditures all over the world due to the pandemic make the sector strategic; R&D and Technocity incentives and low tax rate; Being one of the fastest growing technology companies in Turkey every year between 2016 and 2023 in the Deloitte T
Slide 27: Headlines, Summary, Financials, Investment Thesis, Appendix
27 01 02 03 04 05 Headlines Summary Financials Investment Appendix Thesis Page 3 Page 9 Page 10 Page 30 Page 32
Slide 28: Appendix
28 APPENDIX
Slide 29: Expectations
29 1Q 2024 HEADLINES Expectations Net Sales (mTL) EBITDA (mTL) 1.700 2.300 98,5% 130,6% 79,6% 856 189,1% 997 555 296 2022 Realized 2023 Realized 2024 Estimated 2022 Realized 2023 Realized 2024 Estimated NOTE: The data are excluding the effect of TAS 29. 29
Slide 30: Balance Sheet and Income Statement (TAS-29 Included)
30 1Q 2024 HEADLINES 2023/12 2024/03 Income Statements (TL) - TAS-29 Effect 2023/03 2024/03 Balance Sheet (TL) - TAS-29 Effect Included Audited Unaudited Included Audited Unaudited Assets 2.682.908.167 2.837.376.046 Cash & Cash Equivalent 16.994.368 20.340.073 Net Sales 150.589.057 363.807.906 Curre
Slide 31: Income Statements (TMS-29 Effect Excluded)
31 1Q 2024 HEADLINES 2023/03 2024/03 Income Statements (TL) - TMS-29 Effect Excluded Unaudited Unaudited Net Sales 88.188.825 345.877.122 Change 292,2% CoGS (26.036.265) (142.853.738) Gross Profit 62.152.560 203.023.384 Change 226,7% Gross Margin 70,5% 58,7% General Administrative Exp. (5.386.975) (
Slide 32: Milestones of Ard Group
32 MILESTONES OF ARD GROUP Public offering of Ard Grup Dellmeier Turkiye Elektronik With the change of type, Information Technologies on San. Tic. AŞ and ARDTECH the company title was February 6, 2020 LTD in England were changed to ARD GROUP established BİLİŞİM TEKNOLOJİLERİ Establishment of A.Ş. En
Slide 33: Ard Group
33 ARD GROUP ARDENERLI ARD GRUP ENERII ‘SAN. VETIC. AS. %100 (200.000.000 TL) ARDSAGUK ARD GRUP SAGLIK MEDIKAL ILAG SAN. VE TIC. AS. % 100 (20.000.000 TL) ARDHOLDING ARDDANISMANLK ARD GRUP PROJE YONETIM| DANISMANLIK A.S. %100 (1.000.000 TL) ARDBLISIM RD GRUP Bitisin, TEKNOLOJILERIA.S. % 25,13, (170.
Slide 34: Disclaimer
34 DISCLAIMER This presentation contains information relating to ARD GROUP INFORMATION TECHNOLOGIES INC. (“ ARD INFORMATICS ”) that may not be redistributed, reproduced, published, or passed on to any other person or used in whole or in part for any other purpose. By accessing this document you agre
Slide 35: Investor Relations Contacts
35 INVESTOR RELATIONS CONTACTS THANK YOU For detailed information, please contact us by e-mail investor.relations@ardgroup.com.tr
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