Logo Yazilim Sanayi Ve Ticaret A.s. · BIST:LOGO
Logo Yazilim Sanayi Ve Ticaret A.s — Logo Yazılım Sanayi ve Ticaret A.Ş. — AGCO EMFM Virtual Investor Conference 2020
41 slides from Logo Yazilim Sanayi Ve Ticaret A.s's conference presentation, Oct 27, 2020
Slide 1: AGCO EMFM Virtual Investor Conference Presentation
AGCO EMFM Virtual Investor Conference Presentation Giilnur Anlas CFO Canan Senkut IR Director October 27%, 2020
Slide 2: Forward-looking statements 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 andj = — India Compan Romania through a JV pee a ie 422 mn TL Recurring Growing SaaS _ CAGR 2019 revenue base business — in 2009-2019 revenues nta Dedicated 1.200+ 44% 5.000+ 90.000+ R&D spending # employees” w
Slide 4: Key investment highlights
Key investment highlights <a fe Solid growth Leading provider of EAS solutions tL © High profitability Extensive © product suit += @ Latest technology Largest business partner oom network in Turkey / 800+ International expansion in emerging markets Most valuable IT brand* he © Ay jpga l
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% 86.70% 100% 50% ABS SRL ABS Financial Logo Financ
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: 5.1% 26% 24% 2017** 8% 43%
5.1% 386 405 26% 24% 367 349 332 302 316 2017** 269 8% 43% 7
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 • • • 9
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, 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 >30yrs of legislations and business 5,000 sales and implementation presence practices team members ◉ Lower total cost of ownership ◉ All BPs ex
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 ee ee ee 4000 leader in ; os , new features e-government -maintenance added in 2019 Ns colntoric 32,000+ - customers — 28% | @- Version fee =| — 43% releases e-invoice | Logo Coin © New feature
Slide 13: eLogo: market leader in e-government solutions
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 9M19 9M20 2016 2017 2018 2019 9M19 9M20 Logo ERP direct web service
Slide 14: Total Soft verticals
25 years Financial Trade Services Energy Manufacturing 800 Services Constructions Healthcare Agriculture application software 14
Slide 15: Robust product suite, superior service quality, strong brand
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 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 documentat
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 Vyapari is GSTN approved
✓ Logo Vyapari Logo Vyapari is GSTN is a mobile ✓ approved solution Only 8 solutions are Only 4 solutions are ✓ approved by the Goods mobile among the 8- and Services Tax GSTN-approved Network (GSTN) of India solutions ✓ Same 248 users source-code at end-2019 with Logo İşbaşı Basic functionality is
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 since 2008
Turkey’s digital airline is using Logo’s solutions since 2008 20
Slide 21: Unilever, Barilla, Yaktas customer cases
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: Corporate governance rating and index membership
01 02 03 Corporate BIST BIST governance Corporate Sustainability rating: governance index 9.2/10.0 index member member 2019 since 2009 since 2017
Slide 23: Environmental, Social, Governance
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 employees ◉ bus
Slide 24: 9M2020 results presentation
9M2020 results presentation
Slide 25: Q3 revenues, EBITDA, net income
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% respectively. • EBITDA up by 21%, reaching 42 TL mn y
Slide 26: 9M revenues, EBITDA, net income
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% respectively • EBITDA up by 30%, reaching 125 TL m
Slide 27: Improved liquidity, strong FCF, EPS growth
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
Slide 28: Logo Standalone results
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 Turkey excluding Logo KOBİ (İşbaş
Slide 29: Market leader in e-government solutions with 49K customers
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 9M19 9M20 2016 2017 2018 2019 coin usage (mn) ✓ As the leader of th
Slide 30: New communique's details (October 2019)
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 31: Value creation on digital platform
Value creation on digital platform: connecting revenue administration, financial institutions, customers, trade partners and e-commerce sites 5K 3K 2K 1K 52K 46K 39K 31K 19K 23K Jun'19 Sept.'19 Dec.'19 Mar.'20 Jun.'20 Sept.'20 ✓ Significant user growth of 141% y/y achieved in 9 months
Slide 32: Peoplise capitalized on remote working environment
✓ 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 modules of the platform, with 35 new large enterpri
Slide 33: Total Soft results
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) • Revenues up by 15% in TL. Revenue growth in Euros
Slide 34: Third quarter invoices and IFRS revenues
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 Invoiced Revenues (TL mn) CAGR: 32% • In Turkey
Slide 35: Consolidated recurring invoices
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 25% y/y 73 48 with Total Soft’s contribution • R
Slide 36: 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% 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 Total Soft’s gros
Slide 37: 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 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% 15% 14% 339 339 2
Slide 38: R&D spending as % of invoices
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
Slide 39: Balance sheet highlights and working capital
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% 150 Other Assets 50,2 52,1 4% 165 Total Asse
Slide 40: Solid predictable revenue base and cost controls
+ Solid predictable revenue base and cost controls enabling robust margin expansion 17
Slide 41: Thank you
Thank you
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