Slide 1: HY22 Results & Equity Raise
HY22 RESULTS & EQUITY RAISE AUGUST 2022 www.DickerData.com.au
Slide 2: Agenda
AGENDA • Welcome • Interim Financial Results • Business Update • Strategy and Outlook • Equity Raising • Questions 2
Slide 3: Welcome
WELCOME
Slide 4: Interim Financial Results HY 2022
INTERIM FINANCIAL RESULTS HY 2022
Slide 5: HY22 Highlights
HY22 HIGHLIGHTS 7,100 1,000 Active AU Active NZ Partners Partners +31% HoH +27% HoH $1.46b Total Revenue $334m Recurring Revenue Up 36.5% HoH Up 47.8% HoH We were named ARN’s Diversity & Inclusion Champion $61.1m EBITDA* $51.8m Net Operating Profit Before Tax* Up 19.4% HoH Up 12.7% HoH NZ operations
Slide 6: Financial Trends – HY22
FINANCIAL TRENDS – HY22 GROSS PROFIT ($m) & REVENUE ($m)* GROSS PROFIT MARGIN (%) 1500 1497 1494 1491 1488 1485 1482 1479 1476 1473 1470 1467 1464 1461 1458 1455 1452 1449 1446 1443 1440 1437 1434 1431 1428 1425 1422 1419 1416 1413 1410 1407 1404 1401 1398 1395 1392 1389 1386 1383 1380 1377 1374 137
Slide 7: HY22 Group Results
HY22 GROUP RESULTS 6 months ($m) Jun-22 Jun-21 Increase Total Revenue 1,459.4 1,069.3 36.5% • Revenue growth for the Group of 36.5% to $1,459m. • Recurring software revenue grew 47.8% to $334m. Gross Profit 128.0 99.6 28.5% • Gross profit margin of 8.8%, lower than HY21 as the business integrated
Slide 8: HY22 Balance Sheet
Net Assets (in $m) Jun-22 Dec-21 HY22 BALANCE SHEET Cash and equivalents Trade and other receivables 26.8 532.1 7.4 455.5 Inventory 236.6 201.3 Total current assets 795.5 664.2 PP&E 85.5 82.3 Goodwill & intangibles 97.9 98.6 • The Company continues to make strategic inventory investments during th
Slide 9: Australian Operations - Warehouse Expansion
AUSTRALIAN OPERATIONS - WAREHOUSE EXPANSION • Relocation of the Australian operations to new Kurnell distribution facility in February 2021 provided increased warehouse space of over 80%. Total size of new warehouse is 22,965 sqm, and office, amenities and circulating space doubled to over 5,960 sqm
Slide 10: Business Update
BUSINESS UPDATE
Slide 11: Successfully Navigating Market Challenges
Despite the top three market SUCCESSFULLY NAVIGATING challenges faced in 2022, Dicker MARKET CHALLENGES Data continues to successfully navigate the changing dynamics DEMAND CHIP LOGISTICS OUTSTRIPPING SUPPLY SHORTAGES CONSTRAINTS • The Company is fulfilling more • Strategic investment into holding t
Slide 12: Update on Exeed
9,159m2 UPDATE ON EXEED Warehouse 128% increase OPERATIONAL UPDATE • $192m revenue contribution in HY22. • Exeed Australian business fully integrated. • Exeed NZ business expected to be fully integrated by end of August 2022. NZ OFFICE AND WAREHOUSE RELOCATION • Office facilities relocated to single
Slide 13: Update on DAS Opportunities
UPDATE ON DAS OPPORTUNITIES • The Access Control and Surveillance markets are converging with the traditional IT channel. • Proactively introducing Dicker Data’s extensive existing partner base to this new range of technology and solutions, unlocking new revenue streams. • Opportunity to leverage sy
Slide 14: DAS Vendor Additions
DAS VENDOR ADDITIONS Plus over 30 ECOSYSTEM VENDORS 14
Slide 15: 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* 5% • We have continued to grow our share of both the Australian and New Zealand IT Ingram Micro market, commanding a dominant number on
Slide 16: Revenue Category
Splits and growth REVENUE CATEGORY * Representative of sales revenue only, excludes other revenue sources Software is becoming an increasing proportion of revenue, driven by high growth in subscription and renewable revenue Access Control Services & Surveillance $17m (New) $7m AV/UC +34% HoH $89m +7
Slide 17: 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 Vendor 5 Vendor 5 49% 51% Vendor 3 • Dicker Data has continued to introduce 70.0% Vendor 4 Vendor 4 new vendors to reduce reliance on a
Slide 18: 2021 & 2022 ANZ Vendor Additions
2021 & 2022 ANZ VENDOR ADDITIONS Sole distributor Sole distributor in Australia in Australia & NZ Effective 1/05/22 Effective 1/10/22 VMware Jabra ForcePoint Commscope Ruckus NVIDIA Mellanox Philips StarTech Carbonite + Webroot Neat Zoom Excluding new vendor agreements from the acquisition of the E
Slide 19: ANZ Vendor Portfolio
ANZ VENDOR PORTFOLIO Excluding new vendor agreements from the acquisition of the Hills Security and IT division. 19
Slide 20: Industry Recognition
INDUSTRY RECOGNITION Australia and New Zealand ASUS NZ Checkpoint Cisco Dell Honeywell NZ HP Intel Juniper Lenovo NZ Motherboard Top Cloud APJC SB Marketing Technologies Distributor of PC Distributor of Highest DCG Distribution IDG Distributor of Distributor of the Distribution Innovation & Distribu
Slide 21: Strategy & Outlook
STRATEGY & OUTLOOK
Slide 22: 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 22
Slide 23: 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 24: 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 25: 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 26: Equity Raising
EQUITY RAISING
Slide 27: Equity Raising to Position for Further Growth
EQUITY RAISING TO POSITION FOR FURTHER GROWTH “This equity raising will continue to support Dicker Data’s long-term growth objectives, with our • $50 million underwritten institutional placement warehouse expansion critical (“Placement”) and up to $10 million via a Share in ensuring the Company Purc
Slide 28: Use of Proceeds
USE OF PROCEEDS KURNELL EXPANSION • Construction of the Kurnell warehouse expansion is expected to commence by October 2022, and will increase warehouse capacity by 70% once complete. IMMEDIATE IMPACT SOURCES A$M • Total cost of expansion is expected to be ON CREDIT METRICS $30m and be completed by
Slide 29: Equity Raising Summary
EQUITY RAISING SUMMARY PLACEMENT SIZE & ⚫ Fully underwritten placement of new Dicker Data shares (each, a New Share) to raise gross proceeds of $50m STRUCTURE ⚫ Approximately 4.9 million New Shares will be issued under the Placement (equivalent to 2.8% of existing shares on issue) PLACEMENT PRICE ⚫
Slide 30: Equity Raising Timetable
EQUITY RAISING TIMETABLE EVENT DATE Record date for SPP 7pm (AEST) Monday, 29 August 2022 Trading halt and announcement of the Placement Tuesday, 30 August 2022 Announcement of the outcome of the Placement Wednesday, 31 August 2022 Settlement of New Shares under the Placement Monday, 5 September 202
Slide 31: Important Information
IMPORTANT INFORMATION This Investor Presentation has been prepared by (and is the sole responsibility of) Dicker Data Limited ACN 000 969 362 (ASX: To the maximum extent permitted by law, Dicker Data, the Lead Manager and their Relevant Parties disclaim any DDR) (Dicker Data or the Company) in relat
Slide 32: Important Information
IMPORTANT INFORMATION PAST PERFORMANCE This Investor Presentation may contain information in relation to the past performance of Dicker Data. Such information is given for illustrative purposes only and is not – and should not be relied upon as – an indication of future performance. FORWARD-LOOKING
Slide 33: Key Risks
KEY RISKS RISK FACTOR SUMMARY KEY SUPPLIER Dicker Data has significant exposure to certain suppliers including Hewlett Packard, Cisco, Microsoft, Toshiba and Lenovo. Supplier agreements entered into with these suppliers (and others) are on a RELATIONSHIPS non-exclusive basis and do not contain minim
Slide 34: Key Risks
KEY RISKS RISK FACTOR SUMMARY CURRENCY Although most supplier transactions are in Australian dollars, there are a few suppliers for which payment is made in US dollars. Therefore, variations in currency can impact the Company’s cost of sales and gross margin. The Company seeks to manage a portion of
Slide 35: Key Risks
KEY RISKS RISK FACTOR SUMMARY OPERATIONAL RISK Operating costs can be influenced by a wide range of factors, many of which may not be under the control of the Company, including the breakdown or failure of equipment or processes, supply chain constraints (which may be caused by any number of factors
Slide 36: Key Risks
KEY RISKS RISK FACTOR SUMMARY INSURANCE The availability of insurance at an appropriate price and terms is important to the Company’s operations and is not guaranteed. The occurrence of an event that is not fully covered, or covered at all, by insurance, may have an adverse effect on the Company’s f
Slide 37: Foreign Selling Restrictions
FOREIGN SELLING RESTRICTIONS This Investor Presentation does not constitute an offer of New Shares by the Company in any jurisdiction in which or to any person to whom it would be unlawful. In particular, this Investor Presentation must not be distributed to any person, and the New Shares must not b
Slide 38: Foreign Selling Restrictions
FOREIGN SELLING RESTRICTIONS Singapore This Investor Presentation and any other materials relating to the New Shares have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. As a result, this Investor Presentation and any other docum
Slide 39: Summary of Placement Agreement
SUMMARY OF PLACEMENT AGREEMENT The obligations of the Lead Manager are subject to the satisfaction of certain conditions precedent documented in the Placement Agreement that are customary for a transaction of this nature. If those conditions are not satisfied or certain events occur (some of which a
Slide 40: Summary of Placement Agreement
SUMMARY OF PLACEMENT AGREEMENT • (timetable) any event specified in the timetable for the Placement is delayed by Dicker Data for more than 1 Business Day without the prior written consent of the Lead Manager (other than when the delay is caused by the Lead Manager); • (capital structure) Dicker Dat
Slide 41: Summary of Placement Agreement
SUMMARY OF PLACEMENT AGREEMENT • (compliance with laws) a contravention by Dicker Data of the Corporations Act, its constitution, any of the ASX Listing Rules or any other applicable law or regulation; • (offer) any aspect of the Placement does not comply with the Corporations Act or the ASX Listing
Slide 42: Summary of Placement Agreement
SUMMARY OF PLACEMENT AGREEMENT • Dicker Data gives customary representations and warranties to the Lead Manager in connection with (among other things) the Placement. Dicker Data also gives customary undertakings to the Lead Manager, including that (subject to certain exceptions) it will not issue f
Slide 43: Questions?
~ QUESTIONS?
Slide 44: Thank You
THANK YOU for your time and participation today
Slide 45: 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 29 August 2022 unless otherwise specified. It contains selected summary information and does not purport to be all-inclusive or to contain all of