Slide 1: Annual General Meeting May 2022
ANNUAL GENERAL MEETING M AY 2 0 2 2 www.DickerData.com.au
Slide 2: Financial Update
FINANCIAL UPDATE
Slide 3: 2021 Highlights
Dicker Data acquired Exeed to create New Zealand’s 2nd largest technology distributor 2021 HIGHLIGHTS 6,200 2,000 Active AU Active NZ Partners Partners $2.5b $118.7m $520m Total Revenue EBITDA Recurring Revenue Up 24.2% YOY Up 29.9% YOY Up +19.7% YOY We were named ARN’s Diversity & Inclusion Champio
Slide 4: Financial Trends – FY21
FINANCIAL TRENDS – FY21 GROSS PROFIT ($m) & REVENUE ($m)* GROSS PROFIT MARGIN (%) 9.6% 9.3% 9.0% 8.9% 9.0% 250.0 9.0% 7.0% 200.0 5.0% 2,484.5 150.0 1,761.3 2,000.1 230.3 3.0% 1,306.0 1,493.6 100.0 158.4 191.4 1.0% 50.0 117.8 132.4 -1.0% – -3.0% FY17A FY18A FY19A FY20A FY21A FY17A FY18A FY19A FY20A F
Slide 5: FY21 Group Results
FY21 GROUP RESULTS 12 months ($m) Dec-21 Dec-20 Increase Total Revenue 2,484.5 2,000.1 24.2% • Revenue growth for the Group of 24.2%. Gross Profit 230.3 191.4 20.3% • Recurring software revenue grew 19.7% to $520m. • Gross profit margin slightly abated to 9.3% compared to Gross Margin 9.3% 9.6% FY
Slide 6: FY21 Results NZ
FY21 RESULTS NZ 12 months (nz$m) Dec-21 Dec-20 Increase Total Revenue 345.3 151.8 127.6% • Revenue growth of 127.6% with 5 months contribution of Exeed business. Gross Profit 26.3 13.3 97.9% • Exeed revenue contribution was $152.1m. Gross Margin 7.6% 8.8% • Excluding Exeed contribution, New Zealand
Slide 7: FY21 Balance Sheet
Net Assets (in $m) Dec-21 Dec-20 FY21 BALANCE SHEET Cash and equivalents 7.4 30.4 Accounts receivable 455.5 327.0 Inventory 201.3 113.2 Total current assets 664.2 470.6 PP&E, net 82.3 78.0 Goodwill & Intangibles 98.6 24.9 • The Company has increased its working capital investment as a result of Ot
Slide 8: FY21 Cash Flow
Open Cash $30.4m FY21 EBITDA $118.7m CASH FLOW Net Interest & Tax -$31.5m Working Capital Movement -$91.5m Other $22.0m Capital Expenditure -$7.1m Payment of Dividends -$56.9m Drawdown from Financing Facilites $86.8m Exeed Acquisition -$63.6m Close Cash $7.4m APPLICATION SOURCE 11
Slide 9: FY21 Dividends
FY21 DIVIDENDS • The FY21 dividend of 42.0 cps represents an increase of Payment Dividend Amount Type 27.3% up from 33.0 cps in FY20. Date (CPS) Franked • Dividends include a final dividend for FY21 paid on 1 March 2022 at 15.0 cps. 01-Jun-21 0.090 Interim 100% • In FY22 the Company intends to main
Slide 10: Q122 Group Results
Q122 GROUP RESULTS 3 months ($m) Mar-22 Mar-21 Increase Total Revenue 673.6 447.7 50.5% • With the addition of the Exeed business not in comparable quarter, revenue growth for the Group of 50.5%. Gross Profit 57.7 44.8 28.8% • The revenue split between Australia and New Zealand (ANZ) was $534.9m a
Slide 11: Warehouse Expansion
WAREHOUSE EXPANSION • With the completion of new Kurnell distribution facility in February 2021, warehouse space increased by over 80% to 22,965 sqm, and office, amenities and circulating space doubled to over 5,960 sqm. • Increased inventory holdings and continued technology portfolio diversificati
Slide 12: Business Update
‘impr * /is: BUSINESS eheuiis),., UPDATE
Slide 13: Market Challenges
Despite the top three market MARKET challenges faced in 2021, Dicker Data CHALLENGES has successfully navigated the changing dynamics COVID-19 CHIP LOGISTICS PANDEMIC SHORTAGES CONSTRAINTS • Demand for end-user compute • Strategic investment into holding the • Increased breadth and depth of products
Slide 14: Update on Exeed
9,159m2 UPDATE ON EXEED Warehouse 128% increase OPERATIONAL UPDATE • $90.3M revenue contribution in Q1 22. • Full integration of the ANZ business operations expected in June 2022. • Well-positioned to capitalise on upcoming Australian end of Financial Year with both commercial and retail offerings.
Slide 15: Introducing Opportunities
INTRODUCING OPPORTUNITIES • The Access Control and Surveillance markets are converging with the traditional IT channel. • Proactively introducing Dicker Data’s extensive existing partners base to this new range of technology and solutions, unlocking new revenue streams. • Opportunity to leverage syn
Slide 16: IT Market and Our Strategy
IT DISTRIBUTION MARKET SHARE IT MARKET AND Other OUR STRATEGY 12% Westcon 7% Dicker Data Tech Data 33% AUSTRALIA 4% Corporate, Commercial Arrow and Enterprise only • We have continued to grow our share of both the Australian and New 5% Zealand IT market, commanding a dominant number one position in
Slide 17: ANZ Vendor Portfolio
ANZ VENDOR PORTFOLIO vmware Acronis (>) controle Zcovacs Q interactive! logitech NUTANDS LONGI i>] nVIDIA. skykick TOSIBOX wesraor ANNKER CY sitritan @ercopto JUNIPEL si (icon opentext™ smartoptics Peprink wise BLUPEAK crossware exced > HE Microsoft © pclocs WITHINGS @ sz ‘CATPHONES | CyberPower For
Slide 18: Industry Recognition
INDUSTRY RECOGNITION Australia and New Zealand in 2021 ASUS NZ Checkpoint Cisco Dell Honeywell NZ HP Intel Juniper Motherboard Top Cloud APJC SB Marketing Technologies Distributor of PC Distributor of Highest DCG Distribution Distributor of the Distribution Innovation & Distributor of the Year the Y
Slide 19: 2021 & 2022 Vendor Additions
2021 & 2022 VENDOR ADDITIONS VMware Jabra ForcePoint Commscope Ruckus NVIDIA Mellanox Philips StarTech Inseego Neat Zoom Excluding new vendor agreements from the acquisition of the Exeed group. 22
Slide 20: DAS Vendor Additions
DAS VENDOR ADDITIONS Plus over 30 ECOSYSTEM VENDORS 23
Slide 21: Long-Term Vendor Relationships
MAJOR VENDOR CONCENTRATION LONG-TERM VENDOR % 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 49% 51% • Dicker Data has continued to introduce Vendor 3 Vendor 5 Vendor 5 new vendors to reduce reliance on any 70.0% Vendor 2 Vendor
Slide 22: Revenue Category
REVENUE CATEGORY Splits and growth *Revenue from the sale of goods and services. Services AV/UC $11m -3.2% YOY $119m +55.3% YOY Consumer Peripherals Networking $84m $298M Perpetual Hardware & +22.3% YOY Peripherals Virtual Services $75m & Other Software +22.9% YOY $1,873m $595m Servers & Storage $26
Slide 23: 2022 Opportunities
2022 OPPORTUNITIES SECURITY SOFTWARE DEVICES HYBRID CLOUD SMART OFFICE PRO AV & UNIFIED DATACENTRE NETWORKING RETAIL MARKET MARKET COMMUNICATIONS INFRASTRUCTURE INCLUDING 5G CONVERGENCE TRENDS 26
Slide 24: 2022 Focus
2022 FOCUS ACCESS CONTROL AND SURVEILLANCE The Access Control and Surveillance (Security) markets have begun converging with the traditional IT channel, creating an opportunity for Dicker Data to capitalise on an entirely new market that was traditionally adjacent to IT. The Company recently launch
Slide 25: 2022 Focus
2022 FOCUS 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 presents an opportunity for the Company to capitalise on the new devices and infrastructure required. The Company i
Slide 26: 2022 Focus
2022 FOCUS WORK FROM ANYWHERE (WFA) Devices, peripherals, networking and many more IT products underpin the success of the work from anywhere (WFA) movement. We expect to see continued growth across our entire product portfolio that supports the work from anywhere movement. Furthermore, the release
Slide 27: Thank You
THANK YOU
Slide 28: 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 of 20 May 2022 unless otherwise specified. It contains selected summary information and does not purport to be all-inclusive or to contain all of th