Slide 1: Annual General Meeting
Annual General Meeting JULY 2020
Slide 2: FY 2019 Financial Results
FY FY 2019 Financial 19 Results
Slide 3: FY19 Results Highlights
FY19 Results Highlights Strong revenue growth of 17.9%, with total revenue 17.9% REVENUE INCREASE* from ordinary activities at $1,761.3m. Recurring software revenue increased 47.9% from $247.9m to $366.5m. At a country level, Australia grew revenues at 16.8% 37.5% NPBT INCREASE* and New Zealand grew
Slide 4: Financial Trends Full Year
Revenue ($m) Gross Profit ($m) and from ordinary activities* Gross Profit Margin (%) Financial 9.6% 9.3% 9.0% 8.9% 9.0% Trends Full Year 1,186 1,306 1,494 1,761 110 118 132 158 2019 1,078 104 FY15A FY16A FY17A FY18A FY19A FY15A FY16A FY17A FY18A FY19A Net Profit Before Tax** ($m) EBITDA ($m)* and NP
Slide 5: FY19 Group Results
FY19 Group Results 12 months to ($m): Dec-19 Dec-18 Increase Total revenue includes $12.2m profit on the sale of property. Total Revenue 1,773.5 1,493.6 18.7% Revenue from Ordinary Activities 1,761.3 1,493.6 17.9% Revenue growth of 17.9% with revenue from ordinary activities finishing at $1.76b for
Slide 6: FY19 Revenue category – splits and growth
Revenue category – splits and growth FY19 Hardware Software By product category Services by billing method $8m AV/UC +6% YoY $54m Networking +26% YoY $230m -3% YoY Hardware Perpetual $62M +1% YoY Peripherals & Virtual Software Servers and & other Services $1,758m* $429m $201m +39% YoY Renewable Stor
Slide 7: Sources of FY19 Profit Growth
Sources of FY19 Profit Growth $2.3m $23.8m -$6.4m $17.5m Exceptional operational scale -$2.0m $-0.2m efficiency during 2019. Margin quality improvement Margin on revenue growth Both revenue and margin quality Variable Operating Costs Operating Profit growth improved. Fixed Operating Costs Operating
Slide 8: FY19 Results NZ
FY19 NZ FY19 Results NZ 12 months to ($NZD): Dec-19 Dec-18 Increase Revenue growth of 35.5% driven by the introduction of new vendors and increases in market share. Total Revenue 122.4 90.3 35.5% Gross profit increased by 24.0% with margins abating Gross Profit 10.8 8.7 24.0% due to competition and
Slide 9: FY19 Balance Sheet
FY19 Net Assets (in $m) Cash and equivalents Dec-19 22.6 Dec-18 6.6 FY19 Balance Accounts receivable Inventory 295.9 120.4 238.7 105.5 Sheet Total current assets PP&E, net 438.9 32.0 350.8 46.8 Goodwill & Intangibles 26.3 27.7 Other assets 10.3 3.7 The company continues to Total assets 507.5 429.0 i
Slide 10: FY19 Cash Flow
Application Source FY 19 Cash Flow Open Cash $6.6m EBITDA $73.8m Source and Net Interest & Tax -$20.9m application of cash Working Capital Movement -$44.2m Other $13.9m Disposal of Assets $14.6m Payment of Dividends -$39.4m Drawdown from Financing Facilites $18.2m Close Cash $22.6m 10
Slide 11: FY19 Dividends
FY19 Dividends Record Payment Dividend Amount Date Date (CPS) Type Franked For FY19 there was strong dividend growth of 63.4% with total dividends paid at 33.0 cps (FY18 20.2 cps). 20-May-19 3-Jun-19 0.05 Interim 100% Dividends paid in FY19 included a special dividend of 19-Aug-19 2-Sep-19 0.05 Inte
Slide 12: HY 2020 Financial Results
HY 20 HY 2020 Financial Results
Slide 13: Results Highlights HY20
HY20 Results Highlights Strong revenue growth of 18.1%, with total revenue for 18.1% REVENUE INCREASE the half year breaking through the $1billion milestone and finishing at $1,005.9m. At a country level, Australia grew revenues at 17.2% and New Zealand grew revenues at 31.6%.* 23.5% NPAT INCREASE T
Slide 14: Financial Trends Half Year
Revenue ($m)* Gross Profit ($m) and Gross Profit Margin (%) Financial 9.8% 9.6% 9.0% 9.3% 9.2% 9.1% 9.1% 1,006 8.9% 8.9% Trends 776 852 909 77 81 96 Half 718 72 674 63 64 590 632 58 57 595 54 Year 2020 H1 16A H2 16A H1 17A H2 17A H1 18A H2 18A H1 19A H2 19A H1 20A H1 16A H2 16A H1 17A H2 17A H1 18A
Slide 15: HY20 Group Results
HY20 HY20 Group Results * Unaudited half year results Revenue growth for the group of 18.1%. Recurring software revenue grew 53.1% to $224m for 6 months to (in $m): Jun-20 Jun-19 Increase the half year. Total Revenue 1,005.9 851.9 18.1% Gross profit increased by 24.8% driven by growth Gross Profit 9
Slide 16: HY20 Results NZ
HY20 HY20 Results NZ NZ * Unaudited half year results 6 months to (in NZ$m): Jun-20 Jun-19 Increase Total Revenue 72.9 55.3 31.7% Revenue growth of 31.7% as new vendor relationships Gross Profit 6.8 4.9 37.3% continue to develop. Gross Margin 9.3% 8.9% Gross profit increased by 37.3% with margin qua
Slide 17: HY20 Balance Sheet
HY20 HY20 Net Assets (in $m) Jun-20 Dec-19 Cash and equivalents 17.4 22.6 Balance Sheet Accounts receivable 327.1 295.9 Inventory 138.6 120.4 Total current assets 483.1 438.9 PP&E, net 59.4 32.0 * Unaudited half year results Goodwill & Intangibles 25.6 26.3 Other assets 8.8 10.3 Total assets 577.0 5
Slide 18: Capital Structure
Capital Structure $70.0 $60.0 On 8 May 2020 the company completed a SPP Debt Repayment $50m share placement, followed by a further Placement Fees Working Capital $50.0 $15m in a share purchase plan (SPP) on 5 June 2020. The net proceeds have been invested in the $40.0 construction of our new facilit
Slide 19: New Building Update
New Building Update A builder was appointed at the end of 2019 and construction has now commenced. The project is approximately 75% complete and is currently at fitout stage and is expected to be completed by the end of this year. The expected cost for the total build with the fit out is estimated t
Slide 20: Business Update
Business Update
Slide 21: IT Market and our Strategy
Australian IT Distribution Market Share Consumer, Large National Retail, Corporate, Commercial, Enterprise Other IT Market and our Strategy 9% Westcon 5% Dicker Data Tech Data 20% 5% Arrow 7% Dicker Data is a leading Value Added Technology Distributor Synnex Ingram Micro Our specialty is servicing t
Slide 22: Vendors
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Slide 23: 2019 Vendor Additions
Honeywell Appointed to distribute Automatic 2019 Vendor Identification and Data Capture range of products for ANZ Additions Kaspersky Appointed to distribute complete range of Kaspersky Lab products for ANZ Checkpoint Nutanix Appointed as distributor Nutanix for Appointed as distributor for the enti
Slide 24: 2020 Vendor Additions
Blu Peak Signage Live Developer of digital signage Manufacturer of premium mobile management software and services to accessories including powerbanks, IT enable businesses to get the most out of peripherals and cabling solutions their digital display investments Cohesity Sinefa Developer of digital
Slide 25: Long-term Vendor Relationships
Long-term Vendor Major Vendor Concentration % of Sales Relationships 100.0% 10% 11% 90.0% Vendor 5 Vendor 5 23% 24% Vendor 4 31% 80.0% Vendor 4 39% 43% 43% Vendor 3 Vendor 5 Vendor 5 Vendor 3 70.0% Vendor 4 Vendor 4 Vendor 2 Vendor 5 Vendor 2 Vendor 3 Dicker Data has continued to introduce 60.0% Ven
Slide 26: HY20 Revenue category – splits and growth
Revenue category – splits and growth HY20 Hardware Services Software By product category $6m by billing method +39% HoH AV/UC $38m +52% HoH Networking $98m -6% HoH Hardware Perpetual Servers & Virtual Software $29m and Peripherals $1,006m* $253m -3% HoH Renewable Storage & other $132m Services +44%
Slide 27: Covid-19 Impact
RESPOND • World’s biggest WFH movement • Short term panic buy • Internet serving humanity – personal and business Covid-19 Impact RECOVER • Assessing and Evaluating • Mid term – planning for potential 2nd wave MOVING INTO NEW WORLD • Hybrid world • Long term sustainability and predictability 27
Slide 28: Opportunities 2020
Opportunities INTERNET OF THINGS 2020 FINANCIAL DATA SERVICES MANAGEMENT AUTOMATED SECURITY CLOUD WFH MOVEMENT PRO AV DATACENTRE EDGE PHYSICAL COMPUTING SECURITY NETWORKING 28
Slide 29: Focus 2020: DDFS and Work from Home
Dicker Data Financial Services (DDFS) Launched in H119 to address the growing demand for as-a-Service solutions. In 2020 FY20 we are working to accelerate the uptake of our DDFS offerings and in turn create long-term renewable contract-based revenues. We are assisting our partners Focus to win more
Slide 30: Focus 2020: 5G and Hybrid Cloud
5G The rollout of 5G networking is accelerating the proliferation of compute technology at the Edge, or endpoint. This is in turn driving the next wave of data creation and 2020 presents an opportunity for the company to capitalise on the new devices and infrastructure required. The company is also
Slide 31: Focus 2020: MSP and UC/AV
Managed Service Providers (MSP) MSP’s are our fastest growing partner segment. We will continue to work with our 2020 vendors to address the needs of these partners through the delivery of cloud, storage, infrastructure, migration, analytics and backup solutions that suit their cyclical billing arra
Slide 32: Summary
Summary Consistent double digit revenue and profit growth for the past 5 years. Largest commercial distributor and leading market share distributor for most tier 1 vendors represented. Annual winner of multiple regional and local distribution awards, various industry awards as well as prestigious Ci
Slide 33: Thank You
Thank You DICKER DeAWTA
Slide 34: Disclaimer
Disclaimer This presentation has been prepared by Dicker Data Ltd (ACN 000 969 362). All information and statistics in this presentation are current as at 22 July 2020 unless otherwise specified. It contains selected summary information and does not purport to be all-inclusive or to contain all of t