Ard Grup Bilisim Teknolojileri As · BIST:ARDYZ
Ard Grup Bilisim Teknolojileri As — Q2 2024 Earnings Presentation
34 slides from Ard Grup Bilisim Teknolojileri As's earnings presentation, Nov 7, 2024
Slide 1: Investor Presentation 2Q 2024 Figures
1 INVESTOR PRESENTATION 2Q 2024 FIGURES 07.11.2024
Slide 2: Headlines, Summary, Financials, Investment Thesis, Appendix
2 Page 3 Headlines 01 Page 8 Summary 02 Page 10 Financials 03 Investment 04 Sayfa 25 Thesis Page 27 Appendix 05 01 02 03 04 05 Headlines Summary Financials Investment Appendix Thesis Page 3 Page 8 Page 10 Sayfa 25 Page 27
Slide 3: Financial period overview
01.01.2023 - 30.06.2024 financial period Net Sales, m₺ EBITDA, m₺ Net Income, m₺ 3 785 Annually* %74 Growth Net Sales mTL 900,0 800,0 Gross Margin 69% 69% 600,0 EBITDA Margin 86% 100% 90% 40,0 20,0 Net Margin 4% 5% 29,1 0% 69% 500,0 80% 700,0 0,0 62% 70% 485 EBITDA 2023/06 2024/06 -5% 600,0 68% 400,
Slide 4: 2Q 2024 Headlines
2Q 2024 HEADLINES 4 Capital Efficiency: 26% ROE including TAS-29 Effect* Growth: We expect 1,7 bn TRY of EBITDA at the end of 2024 Subsidiary Acquisition: 51% Shares of Oxivo Grup Bilişim A.Ş. Acquired Company Establishment: Javtech Teknoloji ve Bilişim A.Ş. was established * Return on Equity
Slide 5: Partnership Structure
PARTNERSHIP STRUCTURE 5 Board of Directors Name and Surname Title Arda Ödemiş (ARD Grup Holding AŞ Adına) Chairman of the Board Deputy Chairman of the Board of Doğan Ödemiş Directors Gürkan Bilgin Board Member Ard Grup Holding Anonim Şirketi 25,13% Sabri Çağrı Çakır Board Member Nükhet Doğan Indepen
Slide 6: Subsidiaries
SUBSIDIARIES 6 SubsidiarIes Title Capital Company's Capital Share Business Overview 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
7 Page 3 Headlines 01 Page 8 Summary 02 Page 10 Financials 03 Investment 04 Page 25 Thesis Page 27 Appendix 05 01 02 03 04 05 Headlines Summary Financials Investment Appendix Thesis Page 3 Page 8 Page 10 Page 25 Page 27
Slide 8: Executive Summary
EXECUTIVE SUMMARY 8 Leverage The decline in the share of working capital with increasing sales between 2019 and 2021 indicates efficiency. However, with the increase in trade receivables in 2024/06, there was an increase in the need for working capital. In the first half of 2024, gross profit margin
Slide 9: Headlines Summary Financials
9 Page 8 Summary 02 Page 3 Headlines 01 Page 10 Financials 03 Investment 04 Page 25 Thesis Page 27 Appendix 05 01 02 03 04 05 Headlines Summary Financials Investment Appendix Thesis Page 3 Page 8 Page 10 Page 25 Page 27
Slide 10: Solid Performance
10 SOLID PERFORMANCE 2024/06 & 2023/06PERIODICAL REVENUE 127,7% GROWTH 74,3% EBITDA * 25,3% GROWTH EBITDA* 61,8% MARGIN *Other Income / Expense from Operating Activities are included in EBITDA
Slide 11: 74,3% Real Growth in Sales
11 2Q 2024 HEADLINES 74,3% Real Growth in Sales in 2024/06 Period in Real Terms PERIODICAL FIGURES Net Sales (mTL) ➢ Net sales in the first half of 2024, including the TAS-29 effect, 900 increased by 74,3% in real terms compared to the first half of 800 2023, reaching 784,5 million TL. 784,5 700 600
Slide 12: Growth Strengthened by Increase in Margins
12 2Q 2024 HEADLINES Growth Strengthened by Increase in Margins Accompanying Increase in Revenues PERIODICAL FIGURES EBITDA (mTL) Net Income (mTL) 600 61,8% 60 4,5% 40 500 86,0% 485,0 20 35,3 400 0 387,2 300 -20 200 -40 -60 100 -80 -92,7 0 -100 6M23 6M24 6M23 6M24 ➢ EBITDA increased by 25,3% annuall
Slide 13: EBITDA Bridge
13 2Q 2024 HEADLINES Strong Growth Became the Main Parameter of Increase in EBITDA EBITDA Bridge (mTL) ➢ While rising sales stand out in EBITDA growth, the increase in sales costs and operating expenses have been the parameters that suppress EBITDA. ➢ R&D expenditures create expectations for EBITDA
Slide 14: Steady Net Profit Growth Continues
14 2Q 2024 HEADLINES Steady Net Profit Growth Continues Net Income (mTL) ➢ In addition to the increase in COGS and operating expenses, the increase in financial liabilities and financing costs, as well as the increase in financial expenses, the net monetary loss item applied within the scope of TAS
Slide 15: Working Capital to Sales Ratio Declined
15 2Q 2024 HEADLINES Working Capital to Sales Ratio Declined in 2024/06 Compared to 2023/12 Working Capital Working Capital 1.600 94% 91,5% Working Capital Analysis 1.400 92% 84 1.200 30 90% mTL 2023/12 2024/06 Trade Receivables 1.134,5 1.266,3 1.000 88% Inventory + Other Current Assets 29,6 84,0 80
Slide 16: Working Capital Bridge
16 2Q 2024 HEADLINES Increase in Trade Receivables Became the Main Parameter for Increasing Working Capital WORKING CAPITAL BRIDGE (MTL) ➢ In parallel with the increase in sales in the 2024/06 period, the increase in trade receivables by 131,8 million TL was the main parameter in the increase of wor
Slide 17: Net Debt/EBITDA Ratio of 0,5x
17 2Q 2024 HEADLINES Net Debt/EBITDA Ratio of 0,5x Means High Debt Capacity Net Cash Position Net Debt/EBITDA 600 0,6 Net Cash & Equity & Financial Leverage 0,5 TLm 2023/12 2024/06 500 0,5 Cash and Cash Equivalents 18,4 135,3 0,4 497,2 Financial Investments 89,5 0,0 400 0,4 Net Cash/EBITDA Other Rec
Slide 18: Foreign Exchange Position and Credit Maturity Breakdown
18 2Q 2024 HEADLINES Foreign Exchange Position Credit Maturity Breakdown 0 0,0% -2 -0,1% -4 -0,2% -6 -10,13 -0,3% -13,27 -8 -0,5% -0,4% 3-12 Mounth 1-3 Mounth 59% -10 -0,5% 21% -12 -0,6% -0,6% -14 -0,7% Interest 2023/12 2024/06 Accruals 1% 1-2 Year Foreign Exchange Position Foreign Exchange Position
Slide 19: Investments and Oxivo Acquisition
19 2Q 2024 HEADLINES In the 2024/06 Period, 51% of Oxivo Grup Bilişim A.Ş. was acquired for 42,5 million TL. Investments (mTL) 800 70,0% 700 62,3% 60,0% 600 50,0% 500 40,0% 400 689,3 30,0% 300 5,4 185,4 20,0% 200 12,9% 100 10,0% - 0,0% 2023/12 2024/06 R&D (mTL) Other Investment Invesment/Sales
Slide 20: 26% ROE in Real Basis
20 2Q 2024 HEADLINES 26% ROE in Real Basis* ➢ The degree of liquidity of the balance sheet 2.185 ROE continued to increase 2.180 2024/06 26,0% ➢ Return on equity is above bond yield, indicating 2.175 that capital is used efficiently. Equity (TLm) 2.170 2.165 ➢ Low debt means that the Company has hig
Slide 21: Financial Ratios
21 2Q 2024 HEADLINES Financial Ratios Liquidity Ratios 2024/06 2023/12 Reference Current Ratio 2,22 2,55 1,0-1,5 Liquidity Ratios 2,18 2,53 0,8-1,0 Profitability Ratios (12MTrailing) 2024/06 2021/12 Reference Gross Margin 73,2% 79,3% Sector EBIT Margin 57,2% 63,7% Sector EBITDA Margin 65,7% 76,4% Se
Slide 22: Financial Ratios: Debt
22 2Q 2024 HEADLINES Financial Ratios Debt Ratios 2024/06 2023/12 Reference Total Debt/Total Assets 30,1% 24,7% <%40 Short-Term Fin. Debt/Equity 19,3% 15,6% <100% Coverage Ratio 6,1 13,0 >3 Net Debt/EBITDA 0,5 0,4 <4 Short-Term Liabilities/Assets 21,2% 17,2% Sector Long-Term Liabilities/Assets 8,9%
Slide 23: Share Performance
23 2Q 2024 HEADLINES Share Performance (TL) Mcap (TL) 12.000 6.436,2 m TL million TL 70 37,84 ₺ 30.06.2024 30.06.2024 60 10.000 50 8.000 40 6.000 30 4.000 20 2.000 10 0 0 ➢ 4.573% return from the IPO date to June 30, 2024. ➢ Strong financial data and corporate governance principles compliance suppor
Slide 24: Headlines Summary Financials
24 Page 8 Summary 02 Page 10 Financials 03 Investment 04 Page 25 Thesis Page 27 Appendix 05 01 02 03 04 05 Headlines Summary Financials Investment Appendix Thesis Page 3 Page 8 Page 10 Page 25 Page 27
Slide 25: Investment Thesis
25 2Q 2024 HEADLINES Investment Thesis Increasing software spending around the world due to the pandemic makes the sector strategic; R&D and Technopolis incentives and low tax rate; Being one of the fastest- growing technology companies in Turkey every year between 2016-2023 in the Deloitte Technolo
Slide 26: Headlines Summary Financials
26 Page 3 Headlines 01 Page 8 Summary 02 Page 10 Financials 03 Investment 04 Page 25 Thesis Page 27 Appendix 05 01 02 03 04 05 Headlines Summary Financials Investment Appendix Thesis Page 3 Page 8 Page 10 Page 25 Page 27
Slide 27: Appendix
27 APPENDIX
Slide 28: Expectations
28 2Q 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. 28
Slide 29: Balance Sheet and Income Statement
29 2Q 2024 HEADLINES 2023/12 2024/06 Income Statements (TL) - TAS-29 Effect Included Audited UnAudited Income Statements (TL) - TAS-29 Effect 2023/06 2024/06 Assets 2.908.403.519 3.173.436.088 Included Audited UnAudited Cash & Cash Equivalent 18.422.725 135.336.052 Current Financial Investments 89.4
Slide 30: Summary Income Statement Including & Excluding TAS 29
30 2Q 2024 HEADLINES Summary Income Statement Including & Excluding the Effect of TAS 29 TL TAS 29 Effect Excluded TAS 29 Effect Included 30.06.2024 30.06.2024 Revenue 643.374.815 784.461.766 EBIT 345.224.158 325.520.655 Profit Before Tax 238.381.681 42.616.470 Period Profit 238.381.681 29.124.730 N
Slide 31: Milestones of Ard Group
31 MILESTONES OF ARD GROUP With the change of type, the Public offering of Ard Grup Dellmeier Turkiye Elektronik Purchase of 51% company title was changed to Information Technologies on San. Tic. AŞ and ARDTECH shares of Oxivo Grup ARD GROUP BİLİŞİM February 6, 2020 LTD in England were Bilişim A.Ş.
Slide 32: Ard Group
32 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 33: Disclaimer
33 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 34: Investor Relations Contacts
34 INVESTOR RELATIONS CONTACTS THANK YOU For detailed information, please contact us by e-mail investor.relations@ardgroup.com.tr
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