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 EME Conference 2021
42 slides from Logo Yazilim Sanayi Ve Ticaret A.s's conference presentation, Dec 8, 2021
Slide 1: Wood's Winter EME Conference Presentation
Wood’s Winter EME Conference Presentation Giilnur Anlas CFO Canan Senkut IR Director December 8-9, 2021
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 a Ta, | a Recurring Growing SaaS revenue base # business | IFRS revenue CAGR 2020 in 2010-2020 revenues ata — “ rf “ Dedicated 1.200+ 44% 5-000+ R&D spending f employees
Slide 4: Key investment highlights
Key investment highlights Zoq we ca rie Solid growth Leading provider of EAS solutions tL © High profitability ° Extensive , ) Solutions& Services suit @ Latest technology Largest business partner 22m network in Turkey / 800+ International expansion in emerging markets Most valuable IT brand* he © A
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 ELBA HR Total Soft S.A. Business Technology (Peoplise) 80% Private Ltd. 88% 50% ABS SRL ABS Financial Logo Financial 80% Services SRL Solutions GmbH 80% 100% 5
Slide 6: Logo milestones
Logo milestones 1980s-1990S Y Local acquisitions; Coretech Y Specialized acquisitions; Peoplise (Elba HR, 2020), ¥ 1984; establishment v Enterprise Applications-DOS v Enterprise Applications-Windows Y Logo ERP [ogo Y¥ 2000; First-ever software company IPO in Turkey Y Software Development Center @ Ge
Slide 7: Market size 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
60+ solutions One-stop-shop for companies of all sizes 35+ years of experience
Slide 9: Competitors positioning
Employees #Firms Positioning Competitors Volumes Revenues 1.5k 12.3k 300k 2.4m 2.7m • • • 1 2-3 4 • • •
Slide 10: Partner ecosystem and sales model
Partner 1 Partner 2 • R&D Product Initial Sales Marketing Sales (to customers) Following • Development Sales • Cross - Sales • Support Logo Coin • Membership • Services Tiger Go Start 10
Slide 11: Robust product suite and extensive distribution network
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 Pay as you go — Logo coins | Market aecesmeeer eS : leader in GIy new features e-government “maintenance added in 2020 : solutions ; ve 80,000 - Customers (end-9M21) 28% a Yersion rg "59% releases Logo coin © New feature
Slide 13: eLogo
Market leader in e-government solutions; e-invoice, e-archive, e-ledger, e-dispatch with 80K customers ✓ High-quality customer service in addition to superior # of customers ('000) tech infrastructure differentiates eLogo in a very competitive market ✓ Recurring revenues (coins) make up 85% of e-ser
Slide 14: Offering basic accounting software and e-invoicing services
Offering basic accounting software and e-invoicing services # of users ('000) 27 24 21 18 20 User growth (Sept.‘21): 16 15 383% y/y 13 12 10 7 8 ARPU*: 313 TL 4 6 3 3 2 2 2 1 1 2 LTV/CAC**: 25 ✓ easy upgradability ▪ ▪ ➔ ✓ leading e-invoice provider ▪ high service quality ✓ Value creation on digital
Slide 15: SaaS solution for recruitment, on-boarding and talent engagement
SaaS solution for recruitment, on-boarding and talent engagement needs of enterprises
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: Total Soft Romania: verticals and years of experience
25 years Financial Trade Services Energy Manufacturing 800 Services Constructions Healthcare Agriculture application software 18
Slide 19: 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 20: CaptainBiz: pre-accounting and e-invoicing with GSTN compliance
CaptainBiz: pre-accounting and e-invoicing services with in-built GSTN compliance Logo CaptainBiz Logo CaptainBiz Same 1K users is GSTN is a mobile source-code at end-9M21 approved solution with Logo İşbaşı Only 8 solutions are Only 4 solutions are Basic functionality is approved by the Goods mobile
Slide 21: Women employees and Employees
+ + + + 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 22: 9M 2021 results
A) logo 9M 2021 results
Slide 23: Ongoing strong performance in Q3
▪ Ongoing strong performance in Q3 ▪ Revenue growth combined with efficiency ensure the upward trend in revenue and EBITDA per employee ▪ Recurring revenues grew in all categories reaching 63% of invoiced sales ▪ Turkey; ▪ Revenues increased by 49% with healthy new customer acquisitions, increased s
Slide 24: Q3 Revenues, EBITDA, Net Income
Revenues (TL mn) EBITDA (TL mn) Net Income (TL mn) 41% 60% 55% 169 40% 29% 120 35% 67 26% 49 42 31 Q320 Q321 Q320 Q321 Q320 Q321 • Revenues grew by 41% y/y reaching 169 TL mn, with Turkey and Romania operations contributing 67% and 33% respectively. • EBITDA increased by 60% y/y, yielding 40% margin
Slide 25: 9M Revenues, EBITDA, Net Income
Revenues (TL mn) EBITDA (TL mn) Net Income (TL mn) 44% 62% 103% 486 42% 35% 37% 203 168 339 24% 125 83 9M20 9M21 9M20 9M21 9M20 9M21 • Revenues up by 44%y/y, reaching 486 TL mn, with Turkey and Romania operations contributing 67% and 33% respectively • EBITDA up by 62% y/y, reaching 203 TL mn yieldi
Slide 26: FCF, Cash & Financial Investments, EPS
Cash & Financial Investments (TL mn) Strong FCF – LTM (TL mn) 26% 406 26% 322 90 60 65 51 262 316 2020 9M21 9M20 9M21 Cash and Cash Eq. Financial Investments (ST<) EPS (LTM)* growth 78% 2,07 1,16 9M20 9M21 *Adjusted by 3.22% treasury shares (9M20: 3.48%)
Slide 27: Logo Turkey revenues, EBITDA, net income
Logo Turkey-Revenues (TL mn) Logo Turkey-EBITDA (TL mn) Logo Turkey-Net Income (TL mn) 49% 63% 86% 325 51% 46% 56% 166 47% 217 47% 56% 150 37% 48% 102 42% 113 45% 39% 81 77 34 54 47 30 Q320 Q321 9M20 9M21 Q320 Q321 9M20 9M21 Q320 Q321 9M20 9M21 • Revenues increased by 49% y/y with healthy new custom
Slide 28: Market leader in e-government solutions
Market leader in e-government solutions; e-invoice, e-archive, e-ledger, e-dispatch with 80K customers # of customers ('000) eLogo invoiced revenues (TL mn) CAGR: 53% CAGR: 49% 65% 80 24 56 49 32 37 10 14 18 134 10 18 11 70 21 28 38 2016 2017 2018 2019 2020 9M20 9M21 2016 2017 2018 2019 2020 coin us
Slide 29: Offering basic accounting software and e-invoicing services
Offering basic accounting software and e-invoicing services # of users ('000) 27 24 21 18 20 User growth: 16 15 383% y/y 13 12 10 7 8 ARPU*: 313 TL 4 6 3 3 2 2 2 1 1 2 LTV/CAC**: 25 ✓ easy upgradability ▪ ▪ ➔ ✓ leading e-invoice provider ▪ high service quality ✓ Value creation on digital platform *A
Slide 30: Total Soft revenues, gross profit, EBITDA
Total Soft–Revenues (TL mn) Total Soft–Gross profit (TL mn) Total Soft–EBITDA (TL mn) 33% 29% 46% 59% 23% 162 48% 30% 33% 75 78% 37 121 19% 58 45% 24% 23 44% 18% 56 25 14 43 19 8 Q320 Q321 9M20 9M21 Q320 Q321 9M20 9M21 Q320 Q321 9M20 9M21 Total Soft-Net Income (TL mn) • Revenues grew by 33% y/y and
Slide 31: Third quarter invoices and IFRS revenues
Third Quarter Invoices & IFRS Revenues (TL mn) IFRS Revenues = Invoices - Net Deferrals 169 172 Invoices 137 120 • Q3 sales invoice growth was 26% y/y 92 90 77 75 • IFRS Revenue growth was 41%y/y in Q3 57 52 35 31 38 28 Q315 Q316 Q317 Q318 Q319 Q320 Q321 Invoiced Revenues (TL mn) CAGR: 32% • In Turk
Slide 32: Consolidated recurring invoices
Consolidated Recurring Invoices (TL mn) • LEM revenues increased by 22% y/y CAGR: 40% • Pay as you go revenues increased by 55% y/y with strong coin sales 384 39% 312 • Maintenance revenues increased by 26% y/y with 257 significant contribution from Total Soft 224 180 135 • Retail SaaS revenues incr
Slide 33: Cost of sales as % of IFRS revenue
Consolidated (TL mn) – As % of IFRS Revenue Total Soft (TL mn) – As % of IFRS Revenue 20% 20% 52% 54% 486 162 339 121 87 63 41% 96 37% 68 9M20 9M21 9M20 9M21 Revenue Cost of Sales Revenue Cost of Sales
Slide 34: 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% 50% 25% 24% 486 486 339 339 244 39% 191 28% 117 84 9M20 9M21 9M20 9M21 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 18% 14% 14% 12% 486 486
Slide 35: R&D spending as % of invoices
R&D Spending (TL mn) – As % of Invoices 33% 35% 200 30% 30% 30% 27% 27% 27% 30% 24% 150 25% 45% 146 146 20% 100 123 15% 99 101 77 10% 50 57 5% 41 0 0% 2015 2016 2017 2018 2019 2020 9M20 9M21 R&D Spending (TLmn) - LHS R&D Spending/Invoices -RHS
Slide 36: Balance sheet highlights and working capital
Balance Sheet Highlights (TL mn) Working Capital (TL mn) 2020 9M21 ∆ Cash & Cash Eq. 261,6 316,4 21% 400 Trade Receivables 235,7 222,5 -6% 50% 44% 350 41% Tangible Assets 19,3 19,2 -1% 36% 300 40% 33% 34% Intangible Assets* 470,2 548,8 17% 28% 250 Other Assets 110,7 143,8 30% 30% 23% 26% 200 Total A
Slide 37: 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 38: Appendix
Appendix
Slide 39: Invoice revenues and recurring share
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 40: Turkey's digital airline using Logo's solutions since 2008
Turkey’s digital airline is using Logo’s solutions since 2008 40
Slide 41: 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 42: Thank you
Thank you
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