ARD GRUP BİLİŞİM TEKNOLOJİLERİ A.Ş.

Investor Presentation • Jun 21, 2024

21.06.2024

3

Capital Efficiency: 26% ROE including TAS-29 Effect*

Growth: We expect 1,7 bn TRY of EBITDA at the end of 2024

Subsidiary Acquisition: 51% Shares of Oxivo Grup Bilişim A.Ş. Acquired

* Return on Equity

⁵ EXCUTIVE SUMMARY

SubsıdIarIes
Title	Capital	Company's Capital Share	Business Overview
Açılımsoft Yazılım Teknolojileri A.Ş.	3.000.000 TL	100%	Virtual Reality ("VR") platforms, Artificial Intelligence ("AI") algorithms, Big Data Processing ("Big Data") are used in planning, execution, monitoring, forecasting and control processes for companies operating in the production, distribution, sales and after-sales support sectors. To develop end-to-end commercial and mobile application software by using technologies such as software.
Dallmeier Turkey Elektronik Sanayi ve Ticaret A.Ş.	5.000.000 TL	100%	Security systems and software service activities
Signum Teknoloji Tanıtım ve Eğitim A.Ş.'	4.300.000 TL	51%	Developing management and operational processes software (Facility Management System) for campuses such as facilities, campuses, health institutions, public buildings, ports, airports and logistics centers in all sectors.
ARDTECH LTD	100.000 GBP	60%	Development and export of Software Products.
Argedor Bilişim Teknolojileri Sanayi ve Ticaret A.Ş.	150.000 TL	60%	Developing software using Blockchain, Metaverse, Artificial Intelligence, Web3 and Game technologies.
ARDTECH Informatics	500.000.000 UZS	100%	System integration projects, development and export of innovative software.

⁸ PARTNERSHIP STRUCTURE

Ard Grup Holding Anonim Şirketi
25,13%

Other 68,91%

Hedef Portföy Birinci Hisse Senedi (TL) Fonu 5,80%

Share Buyback 0,16%

Board of Directors
Name and Surname		Title
Arda Ödemiş (ARD Grup Holding AŞ Adına)		Chairman of the Board
Doğan Ödemiş		Deputy Chairman of the Board of Directors
Gürkan Bilgin		Board Member
Sabri Çağrı Çakır		Board Member
Nükhet Doğan	Independent Board Member
Aytekin Doğan	Independent Board Member
	Personnel Having a Say in Management
Name and Surname	Title
Gürkan Bilgin		Board Member / Deputy GM
Sabri Çağrı Çakır		Board Member / Deputy GM
Bahadır Öztürk	Deputy GM
Sedat Bakırkaya	Deputy GM

2023/12 & 2022/12 PERIODICAL

*Other Income / Expense from Operating Activities are included in EBITDA

15,3% Real Growth in Sales in 2023, Including TAS-29 Effect

PERIODICAL FIGURES

➢ Net sales increased by 15,3% annually, including the TAS-29 effect, reaching 1.140,6 mTL in 2023.

Improvement in Sales Supported Profitability

PERIODICAL FIGURES

➢ EBITDA improved by 270,4% QoQ to 264,3 mTL, while the EBITDA margin increased from 71,3% to 83%

➢ Net profit increased by 53.6% annually in real terms in 2023, reaching 428.9 mTL. The 28.1 million TL profit obtained from the sales of our subsidiary Signum TTE A.Ş., with the aim of expanding the use of the Company's projects in industrial facilities with the strategic business partnership vision, supports the net profit for the period, while the net monetary loss amount of 244.5 million TL within the scope of TMS-29 It brought down the net profit.

EBITDA and Net Margin

Increased Sales and Rising Margins Supported EBITDA

• ➢ Rising sales and gross profit margin stood out as effective parameters in EBITDA growth.
• ➢ R&D expenditures create expectations for EBITDA growth in the coming period.

∆ : Change

Sustainable Net Income Growth Continued

➢ Sustainable profitability continued with a 53.6% increase in real terms in net profit for the period, with the impact of factors supporting EBITDA growth.

∆ : Change

Working Capital to Sales Will Be Normalised At the End of the Year

Working Capital Analysis
mTL	2022	2023/12
Trade Receivables	761,4	909,5
Inventory + Other Current Assets	77,9	96,2
Trade Payables	(310,5)	(58,5)
Deferred Inc. + Other Debt	(5,3)	(74,2)
İşletme Sermayesi	523,5	873,1
Working Capital/Sales	52,9%	76,5%
Net Sales	989,0	1.140,6

Working Capital

Increase in Trade Receivables Increased Working Capital

• ➢ In 2023, the 148.2 million TL increase in trade receivables and the 252 million TL decrease in commercial payables increased the working capital.
• ➢ Working capital, which was 570.5 mTL at the end of 2022, increased to 873.1 mTL at the end of 2023.
• ➢ The share of working capital sales, which decreased between 2019 and 2021, started to increase as of 2022.

∆ : Change

Net Debt/EBITDA Ratio of 0,3x Means High Borrowing Capacity

Net Cash Position Net Debt/EBITDA

Net Cash & Equity & Financial Leverage
TLm	2022	2023/12
Cash and Cash Equivalents	40,6	14,8
Financial Investments	67,8	71,7
Other Receivables	2,3	0,8
Short-Term Financial Debt	96,2	267,6
Other Debt	1,7	35,8
Long-Term Financial Debt	11,9	71,3
Net Cash	(1,0)	287,3
Equity	1.293,8	1.756,8
Net Cash/Equity	-0,1%	16,4%
Net Cash/EBITDA	(0,0)	0,3
EBITDA	577,0	871,3

➢ In 2023, the Company has a net foreign currency liability of 8,8 million TL. As of the end of the period, all loans are denominated in TL and the effective interest rate fluctuates within the range of 10 - 55%. Although a significant portion of financial debts are short-term, the Company has a significant borrowing capacity with low financial indebtedness. Working capital is the mainstay of short-term debt.

The Ratio of Investments to Annual Net Sales Decreased in the 2023/12 Period

Investments (mTL)

25,8% ROE in Real Basis*

*The size of the bubble represents equity.

* Return on Equity

• ➢ The degree of liquidity of the balance sheet continued to increase with each passing period.
• ➢ Return on equity is above bond yield, indicating that capital is used efficiently.
• ➢ Low debt means that the Company has high borrowing capacity, and EBITDA/Financing Expense and Net Debt/EBITDA ratios indicate an investment grade rating.

20

Financial Ratios

Liquidity Ratios	2023/12	2021/12	2020/12	Reference
Current Ratio	2,55	2,24	5,53	1,0-1,5
Liquidity Ratios	2,53	2,19	5,40	0,8-1,0
Investment Ratios (12M Trailing)	2023/12	2021/12	2020/12	Reference
Investment/Depreciation	250,1%	392,5%	653,2%	>%100
Investment/Net Sales	32,2%	32,2%	28,5%	Sector
Trade Receivable/Asset	39,0%	42,1%	32,1%	Sector
EVA-TL	204.850.662	159.267.053	71.401.425	>0
ROIC	27,2%	28,9%	43,8%	>WACC
CRR	175,5%	135,3%	95,7%	<%100

CRR (Capital Requirement Ratio): Investment Requirement Ratio shows the investment required by the firm to generate 1 unit of income.

EVA (Economic Value Added): It is the difference between the after-tax cash flow generated by the company on its investments and the cost charged to the capital used in the company. If this ratio is positive, it is interpreted that the firm produces value from its investments. EVA measures whether the company creates an added value from its investments by calculating the portion of the return on investment that exceeds the cost of capital.

Financial Ratios

Debt Ratios	2023/12	2021/12	2020/12	Reference
Total Debt/Total Assets	24,7%	28,5%	10,1%	<%40
Short-Term Fin. Debt/Equity	15,6%	7,4%	1,7%	<100%
Coverage Ratio	13,0	-35,9	-79,8	>3
Net Debt/EBITDA	0,3	0,0	-0,3	<4
Short-Term Liabilities/Assets	17,2%	23,0%	9,4%	Sector
Long-Term Liabilities/Assets	7,5%	5,5%	0,8%	Sector
Equity/Assets	73,7%	71,5%	89,9%	>%60
Total Liabilities/Equity	33,5%	39,8%	11,3%	Sector
Financial Debt/Total Liabilities	58,9%	21,0%	19,0%	Sector

*Coverage Ratio and Net Debt/EBITDA are calculated negative due to the net cash position and positive financial net income as of 2020/12.

Financial Ratios

Profitability Ratios (12MTrailing)	2023/12	2021/12	2020/12	Reference
Gross Margin	79,3%	60,6%	77,5%	Sector
EBIT Margin	63,7%	50,1%	53,8%	Sector
EBITDA Margin	76,4%	58,3%	58,1%	Sector
Net Margin	38,9%	28,2%	54,4%	Sector
ROE	25,8%	21,6%	46,6%	>Bond Yield
ROA	31,2%	27,4%	41,4%	Sector
Financial Exp./Net Sales	-5,9%	1,6%	0,7%	<%3
OPEX/Net Sales	7,9%	9,9%	23,8%	Sector

ROA (Return on Assets) is obtained by the Operating Profit / Total Assets.

• ➢ Return of 3.119% from IPO date to December 31, 2023.
• ➢ Strong financial data and compliance with corporate governance principles supported share performance.
• ➢ It was among the top 50 companies in the "Deloitte Technology Fast 50 Turkey 2021" program, where Turkey's fastest growing technology companies are selected, and has succeeded in being ranked for 7 consecutive years in 2016/2017/2018/2019/2020/2021/2022.
• ➢ Our company received 1st place in the evaluation of Turkey's top 500 IT Companies in three categories: "Turkey-based Producer Data Warehouse and Business Intelligence Software Category", "Turkey-Based Manufacturer Data Security Software Category" and "Energy Sector Software Category". has received.

Investment Thesis

Increasing software expenditures all over the world due to the pandemic make the sector strategic; R&D and Technocity incentives and low tax rate; Being one of the fastest growing technology companies in Turkey every year between 2016 and 2023 in the Deloitte Technology Fast 50 Türkiye program; In the evaluation of Turkey's top 500 IT Companies, it received the first prize in the fields of "Turkey-Based Manufacturer Data Warehouse and Business Intelligence Software Category" and "Logistics Sector Software Category" and ranked 68th in the overall ranking; As a result of the analysis and evaluations made by the independent research company Great Place to Work, it was awarded the title of "Great Place To Work"; Low indebtedness creates high borrowing capacity; Strong financials as of 2023/12; The fact that the high R&D investments made every year will have a significant impact on EBITDA in the coming years, and the liquid balance sheet means high dividend potential.

ARD Informatics has a vital potential for the investors with its strong financial data, growth potential, incentives and operating in a strategic sector.

APPENDIX

Expectations

NOTE: The data are excluding the effect of TAS 29.

Income Statements (TL) - TAS -29 Effect Included	2022/12	2023/12
	Audited	Audited
Assets	1.808.614.876	2.331.673.633
Cash & Cash Equivalent	40.610.060	14.769.540
Current Financial Investments	67.849.369	71.719.598
Trade Receivables	761.358.582	909.530.553
Other Current Assets	40.384.982	14.781.563
Inventories	20.171.809	9.683.483
Current Assets	930.374.802	1.020.484.737
Investments In Subsidiaries And Associates	5.313.650	6.328.069
Trade Receivables	-	89.349.767
Other Receivables	132	24.503
Investment Property	43.039	43.039
Tangible Assets	16.952.746	12.942.392
Intangible Assets And Goodwill	855.930.507	1.202.501.126
Intangible Assets	-	-
Fixed Assets	878.240.074	1.311.188.896
Equity and Liabilities	1.808.614.876	2.331.673.633
Short -Term Debt	96.175.802	267.564.319
Trade Payables	310.543.170	58.493.757
Other Debt	6.950.386	38.359.985
Other Short -Term Liabilities	1.723.042	35.796.018
Short -Term Liabilities	415.392.400	400.214.079
Long -Term Debt	11.862.582	71.278.749
Other Long -Term Liabilities	87.558.978	103.404.742
Long -Term Liabilities	99.421.560	174.683.491
Paid -In Capital	170.000.000	170.000.000
Vergi İadeleri (Ödemeleri) ( - )	345.771.741	345.771.741
Treasury Shares	-	(1.974.713)
Other Comprehensive Inc.	(123.583)	(615.734)
Profit Reserves	30.703.378	35.227.139
Retained Earning	468.162.739	740.325.622
Net Income	279.286.641	428.883.082
Non -Controlling Interests	-	39.158.926
Equity	1.293.800.916	1.756.776.063

Income Statements (TL) - TAS -29 Effect Included	2022/12 Audited	2023/12 Audited
Net Sales	989.046.072	1.140.602.425
Change	0,0%	15,3%
CoGS	(390.030.443)	(236.366.388)
Gross Profit	599.015.629	904.236.037
Change	0,0%	51,0%
Gross Margin	60,6%	79,3%
General Administrative Exp.	(32.775.728)	(52.550.961)
Change	0,0%	60,3%
R&D	(64.957.538)	(37.252.390)
Change	0,0%	(42,7%)
Other Income	12.584.304	20.364.804
Other Expenses	(17.938.419)	(107.874.841)
EBITDA	576.980.110	871.341.593
Change	0,0%	51,0%
EBITDA Margin	58,3%	76,4%
Depreciation	(81.051.862)	(144.418.944)
EBIT	495.928.248	726.922.649
Change	0,0%	46,6%
EBIT Margin	50,1%	63,7%
Income from Investment Activities	518.967	28.049.962
Gaıns Losses On Net Monetary Posıtıon	(184.793.098)	(244.539.190)
Net Financial Income	16.053.958	(67.244.732)
Profit Before Tax	327.708.075	443.188.689
Tax	(48.421.434)	288.014
Net Income	279.286.641	443.476.703
Change		58,8%
Margin	28,2%	38,9%

Balance Sheet (TL) - TAS-29 Effect Excluded	2022/12	2023/12
Assets	891.473.628	1.816.380.368
Cash & Cash Equivalent	24.646.077	14.769.541
Current Financial Investments	41.177.500	71.719.598
Trade Receivables	462.065.365	909.530.555
Other Current Assets	24.509.477	14.605.518
Inventories	12.242.187	9.683.164
Current Assets	564.640.606	1.020.308.376
Trade Receivables	-	89.349.767
Other Receivables	-	24.503
Investment Property	26.200	26.200
Tangible Assets	5.509.223	7.339.228
Intangible Assets And Goodwill	318.072.767	668.697.354
Intangible Assets	3.224.832	30.634.940
Fixed Assets	326.833.022	796.071.992
Equity and Liabilities	891.473.628	1.816.380.368
Short-Term Debt	58.368.695	267.564.319
Trade Payables	188.467.360	58.493.757
Other Debt	1.045.707	35.796.018
Other Short-Term Liabilities	4.218.160	38.359.985
Short-Term Liabilities	252.099.922	400.214.079
Long-Term Debt	7.199.352	71.278.749
Other Long-Term Liabilities	2.509.663	3.060.289
Long-Term Liabilities	9.709.015	86.806.255
Paid-In Capital	170.000.000	170.000.000
Treasury Shares	-	(1.974.713)
Other Comprehensive Inc.	(96.280)	(588.431)
Profit Reserves	15.390.633	21.976.850
Retained Earning	137.908.523	435.184.121
Net Income	306.461.815	681.784.491
Non-Controlling Interests	-	22.977.716
Equity	629.664.691	1.329.360.034

Income Statements (TL) - TMS-29 Effect Excluded	2022/12 Audited	2023/12 Audited
Net Sales	555.321.383	997.189.198
Change	0,0%	79,6%
CoGS	(206.403.924)	(148.361.457)
Gross Profit	348.917.459	848.827.741
Change	0,0%	143,3%
Gross Margin	62,8%	85,1%
General Administrative Exp.	(14.343.566)	(28.499.398)
Change	0,0%	98,7%
R&D	(34.025.719)	(29.631.215)
Change	0,0%	(12,9%)
Other Income	6.177.401	15.023.558
Other Expenses	(10.556.950)	(93.872.221)
EBITDA	296.168.625	856.267.409
Change	0,0%	189,1%
EBITDA Margin	53,3%	85,9%
Depreciation	-	(144.418.944)
EBIT	296.168.625	711.848.465
Change	0,0%	140,4%
EBIT Margin	53,3%	71,4%
Income from Investment Activities	11.775.927	22.588.898
Gaıns Losses On Net Monetary Posıtıon	-	(5.883.398)
Net Financial Income	(1.321.974)	(69.048.142)
Profit Before Tax	306.622.578	659.505.823
Tax	(160.763)	28.618.882
Net Income	306.461.815	688.124.705
Change		124,5%
Margin	55,2%	69,0%

MILESTONES OF ARD GROUP

³³ ARD GROUP

³⁴ DISCLAIMER

This presentation contains information relating to ARD GROUP INFORMATION TECHNOLOGIES INC. (" ARD INFORMATICS ") that may not be redistributed, reproduced, published, or passed on to any other person or used in whole or in part for any other purpose. By accessing this document you agree to abide by the limitations set out in this document as well as any limitations set out on the webpage of ARD INFORMATICS on which this presentation has been made available.

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This presentation may contain forward looking statements based on current assumptions and forecasts made by ARD INFORMATICS management and other information currently available to ARD INFORMATICS . Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. ARD INFORMATICS does not accept any responsibility or declaration for this information. Neither ARD INFORMATICS nor any respective agents of ARD INFORMATICS undertake any obligation to provide the recipient with access to any additional information or to update this presentation or any information or to correct any inaccuracies in any such information.

Certain numerical data, financial information and market data (including percentages) in this presentation have been rounded according to established commercial standards. As a result, the aggregate amounts (sum totals or interim totals or differences or if numbers are put in relation) in this presentation may not correspond in all cases to the amounts contained in the underlying (unrounded) figures appearing in the consolidated financial statements. Furthermore, in tables and charts, these rounded figures may not add up exactly to the totals contained in the respective tables and charts.

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