Logo Yazilim Sanayi Ve Ticaret A.s. · BIST:LOGO
Logo Yazilim Sanayi Ve Ticaret A.s — Logo Yazılım Sanayi ve Ticaret A.Ş. — Investor Presentation (May 2024)
24 slides from Logo Yazilim Sanayi Ve Ticaret A.s's investor presentation, May 16, 2024
Slide 1: Logo Future outlook
Genel Kullanım - General Logo Future outlook 16 May 2024 Genel Kullanım - General
Slide 2: Disclaimer
Genel Kullanım - General 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 cor
Slide 3: Logo at a glance: Leading player of the EAS sector
Genel Kullanım - General Logo at a glance: Leading player of the EAS sector $108 mn 200,000+ 2023 IFRS revenues Customers 66% 1,000+ Recurring Business partners revenue share 28% 1,600+ SaaS revenue Employees share 3 Genel Kullanım - General
Slide 4: Our software solutions and services
Genel Kullanım - General Our software solutions and services ERP e-Services Enterprise resource e-Invoice, e-Archive planning invoice, e-Ledger, e-self emp. invoice HR and Payroll Functional solutions Human capital Customer relationship management and payroll management, Business flow, Business inte
Slide 5: Strong growth: double-digit USD based growth
Genel Kullanım - General Strong growth: double-digit USD based growth CAGR 13% Consolidated IFRS revenues CAGR 11% 138 mn $ 108 92 85 70 74 77 62 67 47 47 37 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024G 5 Genel Kullanım - General
Slide 6: Strong growth: double-digit USD based growth
Genel Kullanım - General Strong growth: double-digit USD based growth Türkiye Türkiye Invoiced revenues IFRS revenues mn $ mn $ CAGR 11% CAGR 10% CAGR 9% 131 101 CAGR 7% 96 74 66 68 56 60 54 50 51 53 51 48 51 47 55 61 47 47 45 49 41 37 6 Genel Kullanım - General
Slide 7: Growth and profitability in Türkiye
Genel Kullanım - General Growth and profitability in Türkiye IFRS (mn TL) Invoiced revenues & IFRS expenses (mn TL) 50% 48% 50% 49% 46% 50% 44% 45% 50% 49% 6000 42% 4000 3,679 50% 40% 42% 41% 40% 4,777 40% 38% 37% 40% 4000 30% 27% 30% 2000 1,779 22% 2,236 20% 20% 998 2000 1,160 505 10% 612 10% 213 2
Slide 8: Sustainable double-digit real growth in Türkiye operations
Genel Kullanım - General Sustainable double-digit real growth in Türkiye operations 2013-2023 average real growth 21% 101% 89% 63% 64% 65% 46% 41% 41% 37% 36% 30% 27% 21% 20% 12% 12% 15% 7% 8% 9% 9% -3% 9% 7% 12% 5% 6% 3% 3% 1% 2% 5% 4% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Invoiced
Slide 9: Growth in recurring revenues
Genel Kullanım - General Growth in recurring revenues Recurring revenues / invoiced revenues Türkiye 100% 7% 90% 20% 80% 32% 2011-2023 41% 48% 52% 55% 58% 59% 70% 67% 66% 67% 73% TL Recurring revenues 60% 50% CAGR: 75% 40% 30% 20% 10% 0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 20
Slide 10: Growth in SaaS revenues
Genel Kullanım - General Growth in SaaS revenues In the journey of becoming a global SaaS company Türkiye 2023 870 SaaS revenues mn TL 2022 413 eServices (coins): 72% Retail: 10% 2021 236 2017-2023 İşbaşı: 3% Peoplise: 4% Wings and Cloud ERP: 11% CAGR 2020 153 70% 2019 83 2018 47 2017 36 10 SaaS: eS
Slide 11: SaaS solutions
Genel Kullanım - General SaaS solutions e-Service SaaS Retail SaaS HR SaaS MicroSME SaaS eService platform and SaaS solution for reliable SaaS solution for SaaS solution for leader in digital and sustainable retail recruitment, on-boarding MicroSMEs: basic transformation operations and talent engage
Slide 12: SaaS solutions
Genel Kullanım - General SaaS solutions Total ARR $ mn ARR $ mn ARR $ mn ARR $ mn ARR $ mn 25.8 21.0 21.1 17.3 14.3 17.0 2.6 2.1 1.3 1.5 0.8 0.8 1.0 0.7 0.5 2021 2022 2023 2021 2022 2023 2021 2022 2023 2021 2022 2023 2021 2022 2023 12 ARR (Annual Run Rate): monthly recurring revenue x 12 Genel Kulla
Slide 13: Our servitization strategy
Genel Kullanım - General Our servitization strategy Our strategy’s integral parts Customer experience NPS Operational excellence Costs Recurring revenues Sustainable growth Corporate culture Revenue predictability Employee engagement ESG 13 Genel Kullanım - General
Slide 14: Our servitization strategy
Genel Kullanım - General Our servitization strategy Subscription Subscription Subscription Web enabled Cloud Sales model LEM Annual license maintenance On-prem One-time license One-time On-prem Cloud Deployment (desktop) 14 Genel Kullanım - General
Slide 15: 2024-2026 plans
Genel Kullanım - General 2024-2026 plans Türkiye’s recurring revenues / invoiced revenues ratio 2023 2026 73% 80%+ Subscription Cloud ERP 2023 2026 2023 2026 1.600+ 36.000+ 700+ 4.000+ small segment small segment customers customers customers customers 15 Genel Kullanım - General
Slide 16: 2024-2026 plans
Genel Kullanım - General 2024-2026 plans Employees in Türkiye Customers in Türkiye 2023 2026 2023 2026 900+ 1.250+ 190.000+ 310.000+ R&D spending / Invoiced revenues ratio 2023 2026 32% 30% 16 Genel Kullanım - General
Slide 17: 2024's developments
Genel Kullanım - General 2024’s developments ❑ Fintech (open banking): Application for Central Bank’s ❑ Buy-back program; treasury approval for Logo Payment shares is at 6,20% Services operations (5 January 2024) ❑ Application for CMB approval for cancellation of 5% in ❑ eServis SaaS: Application fo
Slide 18: Artificial intelligence, machine learning, LowCode/NoCode
Genel Kullanım - General Artificial intelligence, machine learning, LowCode/NoCode ▪ Mariana project: With TÜBİTAK TEYDEB supported Smart resource management project, Logo AIOps (AI for IT Operations) infrastructure is being developed, DBaaS (Database-as-a-Service) service and database performance m
Slide 19: 2024-2026: focus areas
Genel Kullanım - General 2024-2026: focus areas ▪ 2024: Inflationary pressure, interest rate hikes, lower liquidity and credit availability, softer demand trends ▪ Increasing difficulty in talent acquisition and retention ▪ Investments related to Cloud and SaaS transition; • new talent • security an
Slide 20: Our ESG performance
Genel Kullanım - General Our ESG performance A close-up of a computer Description automatically generated Refinitiv Corporate ESG score governance rating A- 9.5/10.0 BIST BIST Sustianability Corporate governance Index Index 20 since 2017 since 2009 Genel Kullanım - General
Slide 21: Dividend track record
Genel Kullanım - General Dividend track record 2020 2021 2022 2023 Pay-out ratio 26% 34% 36% 35%* Yield 0,75% 2,20% 2,85% 4,51%** Gross amount 4,1 $ mn 6,9 $ mn 8,0 $ mn 13,6 $ mn 30 TL mn 90 TL mn 150 TL mn 400 TL mn 300% bonus issue *Based on statutory records. 21 Genel Kullanım - General **Based
Slide 22: Share buy-back programs
Genel Kullanım - General Share buy-back programs 2012- 2021 2023 2021 3,22% 3,22% -> 4,90% 4,90%->6,20% 6,2 $ mn 4,4 $ mn 3,4 $ mn 100 TL mn 108,6 TL mn 2012 - 2015 30.Dec.2021-17.Nov.2023 18.Nov.2023-> cont. 12.July.2018 - 30.Dec.2021 Max fund: 400 TL mn ~ 14 $ mn 22 Genel Kullanım - General
Slide 23: Software company valuations
Genel Kullanım - General Software company valuations EV/Sales EV/EBITDA 2024e 2024e International SaaS 7.0x 22.0x companies International peer 3.8x 15.7x companies SAP, Totvs, Sage, Asseco Poland Logo 1.8x 7.3x Logo’s discount (compared to international -52% -53% 23 Genel Kullanım - General peer com
Slide 24: Thank you.
Genel Kullanım - General Thank you. Genel Kullanım - General
Logo Yazılım Sanayi ve Ticaret A.Ş. — Investor Presentation (May 2024) on 6ix