Logo Yazilim (LOGO) Investor Presentation summary

Business overview and market position

• Leading enterprise application software provider in Türkiye, with subsidiaries in Romania and a JV in India, serving over 210,000 customers and maintaining a strong focus on SMEs.

• Product portfolio includes ERP, HR/payroll, CRM, WMS, e-services, fintech, and SaaS solutions, with 46% of revenues from SaaS.

• Recurring revenues account for 80% of total, driven by SaaS and license maintenance growth.

• Market share in Turkish EAS sector is 26%, matching the largest competitor, with significant SME penetration.

• Strategic focus on digital transformation, cloud adoption, and embedded finance services.

Financial performance and growth

• IFRS revenue grew by 30% and EBITDA by 69% year-over-year in 2024 (IAS29 adjusted), with net income up 94%.

• SaaS revenues increased 26% year-over-year, now representing 46% of invoiced revenues.

• Strong free cash flow generation of 428 TL mn, up 235% year-over-year.

• Dividend payout ratio increased to 64% in 2024, with a yield of 4.25%.

• Share buyback program executed, including a 5% share cancellation in 2024.

Operational efficiency and strategy

• Sales and EBITDA per employee grew by 68% and 83% respectively in 2024.

• Operating expenses managed prudently, with R&D spending at 35% of IFRS revenues.

• Product development team restructured and centralized in Türkiye to boost productivity.

• Servitization strategy accelerating transition to subscription and cloud models, targeting 36,000 small segment ERP customers by 2026.

• Strategic reduction of ownership in Total Soft (Romania) to focus on core markets.