Systems Ltd. · PSX:SYS
Systems — Investor Presentation (March 2024)
25 slides from Systems's investor presentation, Mar 28, 2024
Slide 1: Investor's Briefing FY 2023
INVESTOR’S BRIEFING FY 2023 Dated: 28th March 2024 www.systemsltd.com 1
Slide 2: Agenda
Agenda Systems Limited - 2 Key Facts & Strategic Plan 4 Financial At a glance Market Overview & Way Forward Performance 5ESG Q&A 2
Slide 3: At a glance
At a glance Systems Limited is a leading global digital transformation IT consulting and services provider, boasting a global team of over 7000 innovative minds. We pioneer the creation of cutting-edge enterprise solutions, shaping our clients' digital footprint for enduring growth and profitability
Slide 4: Key Stats & Market Overview
Key Stats & Market Overview 4 4
Slide 5: Fact Sheet
Fact Sheet Rev EBITDA Awards & Recognitions USD ’M USD ‘M 35.13 190.79 30.19 140.25 21.72 93.85 14.86 61.01 10.36 50.10 MEA Delivery partner of the year 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 *One off trading transaction (CLOS) has been excluded in 2022 *EBITDA Adjusted for one-off impair
Slide 6: Investment Highlights / Value Propositions
Investment Highlights / Value Propositions Digital, data & AI, & cloud Emerging technologies Growth We elevate possibilities and We amplify human possibilities Our innovative solutions and strategic unlock new growth horizons through generative AI and deliver prowess propel you towards through innov
Slide 7: Global Delivery Model
Global Delivery Model MEA KSA APAC PK Our talent pool is characterized UAE Saudi Arabia Australia Lahore by its global diversity and Egypt Bahrain Singapore Karachi inclusivity. Qatar Malaysia Islamabad We take great pride in our workforce, South Africa Faisalabad recognizing them as our greatest as
Slide 8: Target Market & Customers
Target Market & Customers We have a strong customer base in most of the industry verticals which not only minimizes our concentration risk but also gives us the competitive advantage by developing resources with cross industry knowledge. Revenue by Vertical Vertical Customer Split * BFSI 63 15% Reta
Slide 9: Market Opportunity
Market Opportunity The Cyber-Human Fusion Generative AI will take over 46% of organizations are planning to invest By 2025, the global market for generative AI in human-computer interfaces (HCIs) in the is expected to reach $26.8 billion, driven by next two years to facilitate seamless human- its ca
Slide 10: The rise of AI
The rise of AI Impact Transition from growth to Unit-level productivity enhancing scalability overall organizational performance Reduced contextual Increased efficiency and dependence fuels innovation reduced cost Emerging tech bring novel challenges Algorithm-driven enterprises Customers, inspired
Slide 11: GenAI in action: Systems Limited's use cases
GenAI in action: Systems Limited's use cases Financial Institutions Telecom FMCGs AI Use Case and Regulation Mapper Generate a Business model canvas and a new strategy to diversify the revenue lines Smart Product Positioning Maps Using Gen AI, AML regulations can be mapped with the Gen AI converts o
Slide 12: How do we differentiate ourselves
How do we differentiate ourselves Employer Optimally scaled scaled & skilled Employee Customer of choice and skilled ownership longevity We attract and have We provide a personalized Our values are shaped by Most of our clients have been access to the best and and laser-focus approach to our employe
Slide 13: Pillars of our strategic plan
Pillars of our strategic plan Strong focus on building AI competency by building and developing a resource pool. The Company is also Skills and service developing AI offerings for the BFS, Telco and Retail/CPG verticals. offerings The Company has divided business development and delivery in 3 key ve
Slide 14: Investment Priorities
Investment Priorities Continued Profit Improvement, Healthy Cash Flow • Strong cash flow generation allows attractive dividend payout, and flexibility for investment opportunities. → Investment in talent • Systems Limited has a history of investing its → Diversification of talent pool among cash flo
Slide 15: Financial Performance Overview
Financial Performance Overview 15
Slide 16: Strong Performance – FY2023
Strong Performance – FY2023 Revenue Operating Profit 28.16 USD’M USD’M 26.09 190.79 CAGR 40% CAGR 34% 19.43 140.25 13.06 93.85 8.84 61.01 50.10 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 33.83 34.35 EBITDA 35.13 Net Profit USD’M 30.19 USD’M CAGR 36% 21.72 CAGR 35% 22.36 14.86 13.37 10.36 10.4
Slide 17: Benchmark Analysis
Benchmark Analysis Systems Ltd Globant FPT EPAM Infosys TCS FY 2023 REV (USD ‘M) $ 1,780.2 $ 1,804.4 $ 4,824.7 $ 18,673.1 $ 25,707.0 $ 190.79 YOY growth % 37.3% 23.4% 28.4% 11.7% 17.6% 23.2% 37.6% 37.6% 17.1% 17.1% 31.9% 31.9% 30.3% 30.3% 40.2% 40.2% 26.2% $ 26.2% GP Margin OP Margin* 11.6% 15.4% 11
Slide 18: Client Composition
Client Composition Client Contribution to Revenue 48% 49% 37% 36% 27% 27% 13% 10% Top Client Top 5 Top 10 Top 20 2022 2023 Active Clients* Client Metrics 2022 2023 2022 2023 Active Clients 191 236 $10m+ clients 1 1 $5-10m clients 3 3 *Revenue above $100k $1-5m clients 19 34 $0.5-1m clients 34 43 18
Slide 19: Strong 2023 Performance
Strong 2023 Performance FY ‘23 vs FY ‘22 Growth (USD) FY ‘23 vs FY ‘22 Growth (USD) Revenue EBITDA 0% 100% 0% 100% +36% +16% PKR ‘M USD ‘M PKR ‘M USD ‘M 35.1 190.8 2,903 30.2 16,102 2,616 140.3* 14,145 2,215 * 2,105 12,490 10,699 Q1 Q2 Q3 Q4 FY 2022 FY 2023 Q1 '23 Q2 '23 Q3 '23 Q4 '23 FY 22 FY 23 20
Slide 20: Profit & Loss Statement FY 2023 (PKR 'M)
Commentary on Key Variances - Profit & Loss Statement FY 2023 (PKR ‘M) For the Period Ended Dec '31 Dec '31 Variance Var. % 2023 2022 Commentary on Variance Lower GP margin: Revenue 53,435 31,760 21,676 68% • Higher costs due to ❑ inflationary adjustments in compensations. Cost of Sale (39,779) (23,
Slide 21: Currency Mix – 2023
Currency Mix – 2023 By Revenue By Cost 5% 40% 60% 95% FCY PKR FCY PKR 21
Slide 22: Environment, Social & Governance (ESG)
Environment, Social & Governance (ESG) 22
Slide 23: ESG Overview
ESG Overview Be Kind with the Environment Key Indicators: • Reduced electricity costs by moving data centres to cloud • Controlled e-waste by donating laptops and computers • Policy to reduce printing and use digital media as much as possible • Raising employee awareness to control water wastage and
Slide 24: Q&A
Q&A 24
Slide 25: Thankyou
Thankyou Get in touch www.systemsltd.com 25