Slide 1: Annual General Meeting 2019
ANNUAL GENERAL MEETING 2019 May 2019
Slide 2: Financial Results FY 2018
FINANCIAL RESULTS FY 2018 DICKER [) 2\ ZN
Slide 3: Results Highlights
RESULTS HIGHLIGHTS 14.4% REVENUE INCREASE • Revenue for FY18 at $1,493.6m, a growth of 14.4% • Revenue CAGR at 11.5% and EBTIDA CAGR at 8.8% in the last 16.0% 4 years since the Express Data acquisition NPBT INCREASE • The 18 new vendors added during the FY17 and FY18 accounted for incremental revenu
Slide 4: Financial Trends Full Year
FINANCIAL TRENDS FULL YEAR REVENUE ($M) GROSS PROFIT ($M) AND GROSS PROFIT MARGIN (%) 10.0% 180.0 9.1% 9.8% 9.8% 9.4% 9.1% 9.0% 9.1% 1,650.0 9.6% 130.0 150.8 7.0% 1,493.6 135.3 1,306.0 9.4% 119.5 5.0% 1,185.5 105.9 111.6 1,077.6 9.2% 80.0 3.0% 9.0% 1.0% 8.8% 30.0 -1.0% 8.6% FY15A FY16A FY17A FY18A F
Slide 5: FY18 Results Group
FY18 RESULTS GROUP • Revenue growth of 14.4% and in line with our guidance 12 MONTHS TO: DEC-18 DEC-17 VARIANCE • Gross profit increased by 12.4% as we experienced a Total Revenue 1,493.6 1,306.0 14.4% slight softening in margin quality due to product mix Gross Profit 132.4 117.8 12.4% • Operating c
Slide 6: Product Category Splits and Growth
PRODUCT CATEGORY SPLITS AND GROWTH SOFTWARE SECURITY 3% (+4% YoY) SOFTWARE 18% ENDPOINTS (+21% YoY) 30% (+18% YoY) HARWARE SECURITY 1% (+47% YoY) STORAGE 8% (+22% YoY) PERIPHERALS 10% (+16% YoY) SERVERS & NETWORKING 29% (+19% YoY) PRINT 1% (+47% YoY)
Slide 7: FY18 Results PBT Waterfall
FY18 RESULTS PBT WATERFALL SOURCES OF PROFIT GROWTH IN 2018 18 $16.8m 16 14 -$2.3m 12 10 8 $1.1m $6.4m 6 -$0.2m -$9.0m -$0.0m 4 2 0 Margin on revenue Margin quality Variable Operating Fixed Operating Other Income Financing Costs YoY Operating growth degredation Costs Costs Profit Growth
Slide 8: FY18 Balance Sheet
FY18 BALANCE SHEET NET ASSETS (IN $M) DEC-18 DEC-17 Cash and equivalents 6.6 9.4 • The company has significantly increased working Other current assets 344.2 295.6 capital investment as it onboards new vendors Goodwill & Intangibles 27.7 29.1 • This has resulted in a cyclical increase in net debt Ot
Slide 9: FY18 Cash Flow
FY18 CASH FLOW SOURCE AND APPLICATION OF CASH $9.4m Open Cash $54.7m EBITDA -$19.3m Net Interest & Tax -$24.7m Working Capital Movement $0.3m Other -$0.7m Capital Spending -$28.2m Payment of Dividends $15.0m Drawdown of S/T Borrowings $6.6m Close Cash Application Source
Slide 10: Financial Results Q1 2019
FINANCIAL RESULTS Q1 2019 DICKER [) 2\ ZN
Slide 11: Q1 FY19 Results Group
Q1 FY19 RESULTS GROUP • Revenue growth of 21.1% tracking ahead of our 3 months to: Mar-19 Mar-18 Variance guidance Total Revenue 386.9 319.6 21.1% • Gross profit increased by 20.6% with margin quality maintained Gross Profit 35.3 29.2 20.6% Gross Margin 9.1% 9.1% • Operating costs have fallen as a p
Slide 12: Q1 FY19 Results New Zealand
Q1 FY19 RESULTS NEW ZEALAND Key Financial Data (in $NZm) 3 months to: Mar-19 Mar-18 Variance • Revenue growth of 31.9% in our first comparative quarter that excludes the impact of the loss of the Cisco Total Revenue 25.9 19.7 31.9% business in 2017 Gross Profit 2.1 1.9 9.1% • Gross profit increased
Slide 13: Q1 FY19 Balance Sheet
Q1 FY19 BALANCE SHEET NET ASSETS (in $m) Mar-19 Dec-18 RATIOS Mar-19 Dec-18 Cash and equivalents 3.5 6.6 Net Working Capital ($m) 174.6 121.4 Other current assets 332.9 344.2 Debt to Equity 2.00 1.37 Goodwill & Intangibles 27.4 27.7 Debt Service Cover Ratio 9.87 9.41 Other assets 51.1 50.3 Net Tangi
Slide 14: FY19 Guidance
FY19 GUIDANCE YTD PROFIT BEFORE TAX 60 • For FY19 profit 50 before tax is forecast at 40 $51.4m. Millions 30 • Maintaining our 20 recent track record of +10% 10 growth - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2018 2019 Projection 2019 Q1
Slide 15: FY18 Dividends
FY18 DIVIDENDS • Total dividends paid for FY18 were 20.2cps with a final dividend for FY18 paid on 1 March 2019 at 7.0cps Record Payment Dividend Amount Type Date Date (CPS) Franked • In FY19 the company intends to continue paying interim dividends in quarterly installments of 18-May-18 1-Jun-18 0.0
Slide 16: Corporate Headlines
CORPORATE HEADLINES CAPITAL STRUCTURE 1 YEAR SHARE PRICE Share Price (16 May 2019) $5.23 ASX: DDR $5.50 Fully paid ordinary shares 160.8m $5.00 Options 0.0m $4.50 Market Capitalisation $841.1m $4.00 Cash (31 Dec 2018) $3.5m $3.50 Drawn Debt (31 Dec 2018) $159.7m $3.00 $2.50 SHAREHOLDERS $2.00 Founde
Slide 17: Business Update
BUSINESS __ UPDATE
Slide 18: Company Overview
COMPANY OVERVIEW NUMBER 1 DISTRIBUTOR $ ASX Listed AUD $1.4b Consistent Growth Nimble and Agile 442 Staff in ANZ Dicker Data listed on the Dicker Data is the largest Dicker Data has achieved Dicker Data’s success is built Dicker Data has a strong ASX in 2011. Australian owned distributor consistent
Slide 19: Company History
COMPANY HISTORY 1987 1993 2000 2010 2011 2014 2015 2017 First Toshiba First Compaq Annual Relocated to Listed on the Acquired Ann. Launched FOUNDED distributor in distributor in revenues new custom ASX Express Data revenue Australia’s JULY 1978 Australia Australia exceed $100M built facility (ASX: D
Slide 20: IT Market and Our Strategy
IT MARKET AND OUR STRATEGY • Dicker Data is a leading Value Added Distributor AUSTRALIAN IT DISTRIBUTION MARKET SHARE Other • Our speciality is servicing the mid-market and SMB Westcon 6% communities with specific focus on pre-sales 5% capabilities, value added services and emerging Tech Data hybrid
Slide 21: Our Vendors
OUR VENDORS erwin Q tnteractive’ Ao) cisco 3S ezviz Juniper logitech © purestorace JSrzzD PS AuioCode AUTODESK. “E+ Belkin EEnD cre QB MLPA omsre @thua OEKER SERVICES FUJIFILM FUJITSU sicasvre MITACH = (77) een acta Enterprise KASPERSKY? Kensingtor KOFAX ‘KYOCERA TLACIE) LASER nimble dicron BE Micro
Slide 22: Diverse Long-Term Vendor Relationships
DIVERSE LONG-TERM VENDOR RELATIONSHIPS MAJOR VENDORS OVER TIME (% OF SALES) 100.0% • Dicker Data has continued to introduce 10% 11% 90.0% 23% new vendors to reduce reliance on any Vendor 5 24% single vendor Vendor 5 Vendor 4 31% 80.0% Vendor 4 39% 43% Vendor 3 Vendor 3 Vendor 5 Vendor 5 • 6 new vend
Slide 23: 2018 Vendor Additions
2018 VENDOR ADDITIONS Appointed as Sole Distributor for Citrix Reseller Business (AU) Appointed as distributor for the Appointed as distributor for the Appointed as distributor for the entire Commvault portfolio entire Dell EMC product Kyocera A3 and A4 Ecosys Print Appointed as a distributor for (A
Slide 24: 2019 Vendor Additions
2019 VENDOR ADDITIONS Appointed as Kaspersky Lab Appointed as the exclusive Appointed as a distributor of distributor across ANZ distributor for the Lenovo the NNN Co to bolster our IoT Datacentre Group (DCG) in offerings New Zealand
Slide 25: Opportunities 2019
OPPORTUNITIES 2019 INTERNET OF THINGS SECURITY PHYSICAL SECURITY EDGE COMPUTING Our Australian-first IoT Continuing to capitalise Moving into the surveillance Delivering technologies that Community now has on the security camera market which aligns enable intelligent edge 150+ members. opportunity e
Slide 26: Industry Recognition
INDUSTRY RECOGNITION APC by Schneider ARN Hardware ARN Homegrown Aruba Top Distributor Cisco ANZ Electric Distributor of Distributor of the Year Distributor of the Year Asia Pacific Distributor of the the Year 2019 FY16, FY17 and FY18 Year 2018 Citrix APJ and ANZ Dell EMC APJ HPE APAC Top Fujitsu Di
Slide 27: Building Update
BUILDING UPDATE • DA lodged as a State Significant Development last year with NSW Department of Planning • DA has now been approved and the tender process has begun with view to appointing a builder in the coming weeks. • Early works on the site have commenced to prepare the site for construction. •
Slide 28: Thank You
THANK YOU
Slide 29: 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 17 May 2019 unless otherwise specified. It contains selected summary information and does not purport to be all-inclusive or to contain all of th