Action S.A. · GPW:ACT
Action — Q1 2014 Earnings Presentation
26 slides from Action's earnings presentation, Aug 17, 2014
Slide 1: Presentation of Results Q1 2014
PRESENTATION OF RESULTS Q1 2014 UNLIMITED DEVELOPMENT POSSIBILITIES
Slide 2: Major events in Q1 2014
Major events in Q1 2014 2
Slide 3: Major events in Q1 2014
Major events in Q1 2014 GROWTH FACTORS MAJOR ACHIEVEMENTS Daily sales record for the 23-year Purchase of 51% of the history of ACTION S.A. shares of Audio/video appliances & household equipment International agreement covering Leader in PS4 sales Poland, the Czech Republic, Hungary and Slovakia 28%
Slide 4: Financial results in Q1 2014
Financial results in Q1 2014 4
Slide 5: GK Action revenues
GK Action revenues 1,323,596 Negative factors in Q1: 1,131,910 High 2013 base SALES DYNAMICS Crisis in Ukraine (IN THOUSANDS OF PLN) Payment backlogs and retail overstocking 787,752 Telecoms withdrawing from subsidies and notebook sales +16.9% Notebooks being replaced by 540,095 more affordable tabl
Slide 6: GK Action net profit dynamics
GK Action revenues Q1 2013 17,322 NET PROFIT DYNAMICS 15,027 (THOUSANDS OF PLN) 11,109 8,505 +15.3% +35.3% +30.6% 1Q1 kw.2011 2011 1Q1 kw.2012 2012 1 Q1 kw. 2013 2013 1Q1 kw.2014 2014 6
Slide 7: Selected GK ACTION financial data
Selected GK ACTION financial data Q1 2013 Q1 2014 % change Sales revenues 1,131,910 1,323,596 16.9% Gross sales profit 57,600 76,748 33.2% Gross margin on sales 5.1% 5.8% 0.7% (pp) Sales and marketing costs -32,351 -46,413 43.5% Against revenues -2.9% -3.5% -0.6% (pp) General management costs -6,167
Slide 8: Cash flow
Cash flow 31/03/2013 31/03/2014 Net cash flow from operations 30,101 -89,744 Net cash flow from investments -1,023 -13,208 Net cash flow from financial activities -3,461 73,201 8
Slide 9: Cash conversion cycle
Cash conversion cycle STILL THE SHORTEST CYCLE AMONG THE MAIN MARKET PLAYERS 31/03/2013 31/03/2014 Stock turnover 28.76 33.35 Cash inflow from receivables 32.36 36.71 Repayment of liabilities 44.82 50.43 Cash conversion 16.30 19.63 9
Slide 10: GK ACTION companies and projects in Q1 2014
GK ACTION companies and projects in Q1 2014 10
Slide 11: Dealer channel development
Dealer channel development 7% Support for partners in transforming the business model increase in sales within the dealer from reseller to modern integrator channel WE OFFER A WIDE RANGE OF B2B SOLUTIONS EDUCATION AND MARKETING SUPPORT Servers Workshops Clouds Comprehensive support Road Shows Digita
Slide 12: Partnership program
Partnership program Experts in audio/video appliances & household equipment GROWTH FACTORS 215 Intense pro-marketing actions showrooms in the partner network Know-how support throughout Poland Over 200 participants for the country-wide meeting of partners at the National Stadium in Warsaw Modern sol
Slide 13: E-commerce in GK ACTION
E-commerce in GK ACTION Creating benefits for the ACTION Digital distribution of Group games in Poland and abroad Extending the product range and building a strong position in distribution Wide range of products in consumer electronics and others Specialized range of IT as well as audio/video applia
Slide 14: Sferis – specialized network of stores
Sferis – specialized network of stores GROWTH FACTORS DESPITE A DECLINING MARKET Regular development of the portfolio • Distribution of Apple products 697 collection points extended by iPhones Intense marketing and pro-sales actions 115 partner showrooms • Pre-sale campaigns for newly launched produ
Slide 15: Expansion in non-domestic markets
Expansion in non-domestic markets 15
Slide 16: ACTION Europe GmbH abroad
ACTION Europe GmbH abroad REGULAR GROWTH OF THE GERMAN DISTRIBUTOR 100% of shares taken over by Action S.A. Change of the name to ACTION EUROPE GmbH Systematic increase in the number of clients: • 4296 unique clients • over 500 clients dealt with daily Increase in turnover: • 28 m € - turnover in Q1
Slide 17: Exports
Exports EXPORTS TO 303 CUSTOMERS WORLDWIDE IN Q1 2014 Exports to 43 countries OVER 50 PRODUCT GROUPS such as Audio/video appliances & household equipment, notebooks, computers, servers, components, accessories, mobile products, consumables, and lighting 17
Slide 18: Lapado – new sales channel
Lapado – new sales channel PURCHASE OF 51% OF THE LAPADO COMPANY SHARES Dynamic growth in turnover: • 21.55 m € corresponding to 58% of the total 2013 turnover • Goal for 2014: 100 m € Product groups: • IT, audio/video appliances & household equipment, toys and accessories for children, office produ
Slide 19: Own brands
Own brands 19
Slide 20: Leader in the market of consumable components
Leader in the market of consumable components INCREASE IN MARKET SHARE DESPITE A DECLINING MARKET GEOGRAPHICAL DIVERSIFICATION EXPERT BRAND ECONOMICAL BRAND 26%* Share in the market of consumables The ActiveJet brand recorded the Highest increase in highest growth in the volume of ink and the ink ma
Slide 21: Action S.A. sports sponsorship
Action S.A. sports sponsorship SPONSORING A CYCLING TEAM BENEFITS FOR THE BUSINESS ActiveJet IS THE PRINCIPAL ACTIVEJET – most recognizable brand of spares SPONSOR of a professional cycling team Increase in consumer confidence in the products Important brand exposure in Polish and foreign 12 athlete
Slide 22: Guidelines for development
Guidelines for development 22
Slide 23: ACTION S.A. Logistics Centre
ACTION S.A. Logistics Centre CONSIDERABLE GROWTH IN WAREHOUSING VERSATILITY 32,000 M² Own warehouse 52,000 M² 2013 surface area Q3 2014 DESTINED FOR VARIOUS PRODUCT GROUPS Warehouse capacity over 100,000 packets daily 45,000 packets daily in Q3 2014 in 2013 New industries Number of over AUDIO/VIDEO/
Slide 24: Expansion in Poland
Expansion in Poland Obtaining new distribution channels Development of the product and services portfolio Development of B2B projects VMI logistics projects Toys Games development Entering new industries 24
Slide 25: Expansion in Europe
Expansion in Europe Obtaining new distribution contracts Building a wide product range of consumer goods Regionalization of working with manufacturers – introducing the central purchasing model Participation in partnership programs for producers in German-speaking Europe Launching logistics operatio
Slide 26: Thank you
Thank you Thank you Reliable partner: