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 Winter Virtual EME Conference 2020
41 slides from Logo Yazilim Sanayi Ve Ticaret A.s's conference presentation, Dec 3, 2020
Slide 1: WOOD's Winter Virtual EME Conference Presentation
WOOD’s Winter Virtual EME Conference Presentation Gülnur Anlaş CFO Canan Şenkut IR Director December 3rd, 2020
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 Software (EAS) in Turkey and India Company Romania through a JV 41% 56% IFRS revenue 422 mn TL Recurring Growing SaaS CAGR 2019 revenue base business in 2009-2019 revenues Dedicated 1.200+ 44% 5.000+ 90.000+ R&D spending employees women
Slide 4: Key investment highlights
Key investment highlights Solid growth Leading provider of EAS solutions High profitability Extensive product 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.tr 4
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 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% 86.70% 100% 50% ABS SRL ABS
Slide 6: Logo milestones
Logo milestones First-ever 20th year- Leader in Turkish Enterprise software software Applications- IPO in market w/ 1 Establishment 1986 Windows 1999 Turkey 2000 mn+ users 1984 Enterprise 1996 Logo 2000 Software 2004 Applications ERP Development - DOS Center @ Gebze R&D leader Mediterra Acquisitions
Slide 7: Turkish EAS market and Logo market share
Turkish EAS market and Logo market share Turkish EAS market is expected to have robust growth* ($mn) CAGR 5.1% Other; Logo; 386 405 26% 24% 367 349 332 302 316 2017** 269 Microsoft; 8% SAP; 2015 2016 2017 2018E 2019E 2020E 2021E 2022E 43% SMEs lead software market growth Government push for digitali
Slide 8: Extensive product suite
Extensive product suite 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 Mana
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 1 • Higher p
Slide 10: Logo Turkey sales cycle
Logo Turkey sales cycle Partner 1 Customers Partner 2 • User increments R&D Product Initial Sales Following Marketing Development Sales (to customers) Sales • Modules • 3rd party Cross - Sales • CRM / BI / WMS / BPM Support Logo Coin • e-Services (e-invoices etc.) Membership • LEM Services Invoice I
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 800+ BPs and c. ◉ Trusted brand with >30yrs of legislations and business 5,000 sales and implementation presence practices team members ◉ Lowe
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 4000 leader in License new features 32,000+ e-government customers maintenance added in 2019 solutions Version 43% 28% e-invoice Logo Coin releases Revenue Revenue New features e-archive
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 49K+ customers # of customers ('000) coin usage (mn) CAGR: 46% CAGR: 43% x2.3 x2.4 319 49 213 32 134 139 18 20 104 10 14 73 2016 2017 2018 2019 9M1
Slide 14: 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 14
Slide 15: 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 >20 yrs of ◉ Development of best of breed ◉ ERP and Human Capital presence solutions together w/ vertical
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 aPaas for ERP All products with the enabled 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 3 rd parties App2 Partner ECO system
Slide 18: MicroSME digitalization
MicroSME digitalization Turkey India SaaS solution Logo İşbaşı’s users reached 57K w/5K Logo Vyapari Logo Vyapari paying is GSTN is a mobile Very competitive MicroSME segment approved solution Only 8 solutions are Only 4 solutions are Logo as the leading e-invoice provider, approved by the Goo
Slide 19: Peoplise: next generation talent acquisition
Peoplise: next generation talent acquisition Logo’s new asset complementing its HR solutions www.logo.com.tr 19
Slide 20: 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 21: 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 22: Sustainability
Sustainability 01 02 03 Corporate BIST BIST governance Corporate Sustainability rating: governance index 9.2/10.0 index member member 2019 since 2009 since 2017 www.logo.com.tr 22
Slide 23: Sustainability
Sustainability Environmental Social Governance ◉ Our solutions reduce our customers’ ◉ Talent management is a high priority ◉ Corporate governance and work environmental impact incl. carbon issue for Logo and its stakeholders. ethics are integral part of our footprint and natural resource 44% women
Slide 24: 9M2020 results presentation
9M2020 results presentation
Slide 25: Strong performance continues in Q3
Strong performance continues in Q3 Consolidated Revenues (TL mn) EBITDA (TL mn) Net Income (TL mn) 30% 21% 55% 120 35% 26% 92 38% 42 22% 35 31 20 Q319 Q320 Q319 Q320 Q319 Q320 • Consolidated IFRS revenues up by 30% reaching 120 TL mn, with Turkey and Romania operations contributing 64% and 36% respe
Slide 26: Growth across the board amid Covid-19
Growth across the board amid Covid-19 Consolidated Revenues (TL mn) EBITDA (TL mn) Net Income (TL mn) 26% 30% 46% 37% 339 24% 36% 268 125 21% 96 83 57 9M19 9M20 9M19 9M20 9M19 9M20 • Consolidated IFRS revenues up by 26%, reaching 339 TL mn, with Turkey and Romania operations contributing 64% and 36%
Slide 27: Effective financial management
Effective financial management Consolidated Improved Liquidity (TL mn) Strong FCF LTM (TL mn) Cash and Cash Eq. 66% 34% 253 51 152 38 2019 9M20 9M19 9M20 EPS* growth (LTM) 55% 4,65 2,99 9M19 9M20 *Adjusted by 3.48% treasury shares www.logo.com.tr 4
Slide 28: Stellar performance in Turkey
Stellar performance in Turkey Logo Standalone Revenues (TL mn) EBITDA (TL mn) Net Income (TL mn) 32% 39% 52% 49% 215 39% 46% 104 163 29% 60% 34% 84 32% 75 48% 47% 42% 56 34% 75 35 31 57 27 20 Q319 Q320 9M19 9M20 Q319 Q320 9M19 9M20 Q319 Q320 9M19 9M20 Logo Turkey Standalone: Logo’s operations in Tur
Slide 29: 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 49K customers # of customers ('000) eLogo invoiced revenues (TL mn) CAGR: 50% CAGR: 46% x2.4 49 107 32 18 20 56 14 32 38 10 2016 2017 2018 2019 9M1
Slide 30: eLogo: new communique's details
eLogo: e-services platform and leader in digital transformation 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 onlin
Slide 31: İşbaşı: Turkey's MicroSME digitalization solution
İşbaşı: Turkey’s MicroSME digitalization solution Value creation on digital platform: connecting revenue administration, financial institutions, customers, trade partners and e-commerce sites İşbaşı # of users reached 57K w/5K active paying 5K 3K 2K 1K 52K 46K 39K 31K 19K 23K Jun'19 Sept.'19 Dec.'19
Slide 32: Peoplise: Next Generation Talent Acquisition
Peoplise: Next Generation Talent Acquisition Peoplise capitalized on the post-Covid remote working environment; achieving revenue and customer growth even though recruitment market overall was shrinking worldwide. Remote onboarding and chat bot assisted recruitment are the fastest growing module
Slide 33: Challenging market conditions for Total Soft
Challenging market conditions for Total Soft Total Soft Revenues (TL mn) Gross profit (TL mn) EBITDA (TL mn) 15% 9% 2% 50% 48% 4% 121 23% 105 52,9 57,9 -4% 21% 19% 22,3 23,2 53% 44% 23% 18% 35 43 18,6 19,0 8,1 7,7 Q319 Q320 9M19 9M20 Q319 Q320 9M19 9M20 Q319 Q320 9M19 9M20 Net Income (TL mn) • Reven
Slide 34: Invoiced Revenue vs IFRS Revenue (Consolidated)
Invoiced Revenue vs IFRS Revenue (Consolidated) Third Quarter Invoices & IFRS Revenues (TL mn) IFRS Revenues = 137 Invoices - Net Deferrals Invoices 120 • Q3 sales invoice growth was 53% y/y 92 90 77 75 • IFRS Revenue growth was 30%y/y in Q3 57 52 35 31 38 28 21 18 Q314 Q315 Q316 Q317 Q318 Q319 Q320
Slide 35: Recurring Revenue Growth Ensuring Predictability
Recurring Revenue Growth Ensuring Predictability Consolidated Recurring Invoices (TL mn) • LEM revenues increased by 37% y/y CAGR: 40% 52% • Pay as you go revenues increased by 122% 257 224 y/y with strong coin sales. Coin customers 180 grew by 139% y/y 135 147 84 • Maintenance revenues increased by
Slide 36: Cost of Sales
Cost of Sales Consolidated (TL mn) – As % of IFRS Revenue Total Soft (TL mn) – As % of IFRS Revenue 20% 20% 50% 52% 339 268 121 24% 105 21% 52 63 55 68 9M19 9M20 9M19 9M20 Revenue Cost of Sales Revenue Cost of Sales Softer market conditions amid covid-19 delayed new project additions affecting Tot
Slide 37: Operating Expenses
Operating Expenses OpEx (TL mn) – As % of IFRS Revenue R&D Expenses (TL mn) – As % of IFRS Revenue 57% 57% 26% 25% 339 339 268 25% 268 191 153 20% 70 84 9M19 9M20 9M19 9M20 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 16% 18
Slide 38: Dedicated Investment in Technology
Dedicated Investment in Technology R&D Spending (TL mn) – As % of Invoices 200 33% 33% 35% 28% 30% 30% 27% 27% 27% 30% 150 25% 18% 20% 100 123 99 101 15% 77 85 10% 50 57 5% 32 41 0 0% 2014 2015 2016 2017 2018 2019 9M19 9M20 R&D Spending (TLmn) - LHS R&D Spending/Invoices -RHS www.logo.com.tr 15
Slide 39: Strong Balance Sheet
Strong Balance Sheet Balance Sheet Highlights (TL mn) Working Capital (TL mn) 2019 9M20 ∆ Cash & Cash Eq. 152,2 252,9 66% 300 Trade Receivables 211,2 166,1 -21% 50% 44% 41% 41% 250 Tangible Assets 20,0 20,7 3% 40% 34% 36% 33% 200 Intangible Assets* 342,2 461,0 35% 27% 30% 23% Other Assets 50,2 52,1
Slide 40: Update on Covid-19's impact
Update on Covid-19’s impact All employees well and Logo’s diversified Big ticket sales Agile adaptation to safe continuing to work customer base completed during this conditions: keeping remotely with no (geography, sector and period and solid sales SG&A in line with disruption in operations size) m
Slide 41: Thank you
Thank you
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