Slide 1: Annual General Meeting 2018
ASX: DDR Annual Annual AGM GeneralGeneral 2018 Meeting Meeting 2018 2018 21 May 2018
Slide 2: Financial Results FY17
AGM 2018 Financial Results FY17 2
Slide 3: Financial Highlights
Financial Highlights AGM 2018 • Dicker Data has continued its recent pattern of growth in 2017, maintaining revenue growth across all business sectors and geographies. • A total of 18 new vendors were added during the year accounting for an incremental $86m in revenue. • Revenue increased by 10.2% j
Slide 4: Financial Trends – Full Year
Financial Trends – Full Year AGM 2018 Revenue ($m) Gross Profit ($m) and Gross Profit Margin (%) 10.0% 12.0% 9.8% 9.4% 9.8% 9.1% 8.9% 10.0% 9.6% 9.4% 8.0% 1,387.7 119.5 123.9 1,306.0 111.6 1,185.5 9.2% 105.9 1,077.6 6.0% 9.0% 8.8% 4.0% 8.6% 2.0% 8.4% FY15A FY16A FY17A FY18 Forecast FY15A FY16A FY17A
Slide 5: Full Year Results to Dec 2017
Full Year Results to Dec 2017 AGM 2018 Key Financial Data (in $m) • Revenue finalised at $1.3 billion – slightly ahead of our guidance, an 12 months to: Dec-17 Dec-16 Variance increase of 10.2%. • Gross profit increased by 7.4% as 590.278 product mix and market competition Total Revenue 1,306.0 1,18
Slide 6: Revenue Summary
Revenue Summary AGM 2018 Storage 1% • Hardware continues to be our largest revenue category, growing steadily at 7%, and accounting for Software 77% of the revenue. 21% • Storage as a category continues to Services grow organically as we add new 1% vendor partners. • Our Software business has Hardwa
Slide 7: Sources of Profit Growth
Sources of Profit Growth AGM 2018 12 $11.2m 10 8 -$3.1m 6 4 $0.6m $3.7m $0.5m -$0.2m -$5.3m 2 0 Margin on Margin quality Variable Fixed Operating Other Income Financing Costs YoY Operating revenue growth degredation Operating Costs Costs Profit Growth 7
Slide 8: Balance Sheet
Balance Sheet AGM 2018 Net Assets (in $m) Dec-17 Dec-16 Dec-15 Dec-14 Cash and equivalents 9.4 17.5 15.8 16.4 Other current assets 295.6 269.7 280.3 215.6 Goodwill & Intangibles 29.1 30.5 31.9 34.0 • Investment in working capital has Other assets 50.2 48.0 30.2 31.3 decreased further during 2017, fa
Slide 9: New Zealand Results
New Zealand Results AGM 2018 Key Financial Data (in $NZm) • Revenue finalised at $141m- an increase of 4.3%, which included Cisco revenue until end 12 months to: Dec-17 Dec-16 Variance of October. • With market competition and a lengthy distributor review process with Cisco, profit Total Revenue 141
Slide 10: Financial Results Q1 FY18
AGM 2018 Financial Results Q1 FY18 10
Slide 11: Q1 FY18 Results - Group
Q1 FY18 Results -Group AGM 2018 • Revenue is tracking 14.4% ahead of last Key Financial Data (in $m) year and in line with our guidance as 3 months to: Mar-18 Mar-17 Variance we begin to realise the full value of new vendors introduced in 2017. Total Revenue 319.6 279.4 14.4% • Gross profit increase
Slide 12: Q1 FY18 Results - New Zealand
Q1 FY18 Results - New Zealand AGM 2018 Key Financial Data (in $NZm) • Revenue for Q1 finished down $10.4m 3 months to: Mar-18 Mar-17 Variance YoY, down 34.5%. Taking out the impact of the Cisco business ($12.3m), the rest of the business grew $1.9m (+10.7%). • Profit margins have improved by 1.0% to
Slide 13: Q1 FY18 Balance Sheet
Q1 FY18 Balance Sheet AGM 2018 Net Assets (in $m) Mar-18 Dec-17 • Investment in working capital has Cash and equivalents 5.9 9.4 increased by $28.3m during Q1 2018, Other current assets 262.1 295.6 mainly driven by a seasonal change in Goodwill & Intangibles 28.8 29.1 trade payables and receivable c
Slide 14: Q1 FY18 Results
Q1 FY18 Results AGM 2018 YTD Profit Before Tax 45 • In the 3 months 40 to March Pretax 35 Profit is tracking 30 to forecast and ahead of the Millions 25 20 corresponding 15 quarter last year. 10 • Full year PBT 5 forecast remains - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec at $42.5m. 2017 2018
Slide 15: 2018 Guidance and Outlook
2018 Guidance and Outlook AGM 2018 • Projected revenue for FY18 is $1.39 billion and forecasted net profit before tax is $42.5 million • Whilst the consolidated revenue and profit growth is expected to be at 6%, the projected growth for the Australian business is maintained at over 10%. • The growth
Slide 16: Dividends
Dividends AGM 2018 • Total dividends declared for FY17 were 16.8cps with a final dividend for FY17 paid 2 March 2018 at 4.8cps. Record Date Payment Date Dividend (CPS) Type Amount • In FY18 the company intends to continue to Franked streamline it’s dividend payment policy by paying the interim divid
Slide 17: Company Update
17 AGM 2018 Company Update DICKER
Slide 18: 18
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Slide 19: IT market and strategy
IT market and strategy AGM 2018 ▪ Dicker Data is a leading Value Added Distributor, working Australian IT Distribution Market Share in close partnership with our vendors to deliver their Other technologies into the corporate and SMB market 7% channels. Arrow 5% ▪ Focusing on reseller partners servic
Slide 20: Vendor Relationships
Vendor Relationships AGM 2018 20
Slide 21: Diverse Long-Term Vendor Relationships
Diverse Long-Term Vendor Relationships AGM 2018 Major Vendors over time (% of sales) 100.0% • Dicker Data has continued 10% 11% to introduce new vendors 90.0% Vendor 5 Vendor 5 23% 24% and reduce it’s reliance on 80.0% Vendor 4 Vendor 4 31% 39% any single vendor Vendor 3 70.0% Vendor 3 Vendor 5 Vend
Slide 22: 2018 Opportunities
2018 Opportunities AGM 2018 22
Slide 23: Vendor Additions 2017
Vendor Additions 2017 AGM 2018 Trend Micro Dell EMC NZ –Kensington, Qnap, StorageCraft, Seagate Access to the complete • Extension of our existing • • Access to include the range of Trend Micro strong relationships with complete range of Dell security products in the these brands with access EMC sto
Slide 24: Vendor Additions 2018
Vendor Additions 2018 AGM 2018 Citrix • To strengthen our enterprise • Appointment as sole and midmarket capabilities we distributor for the Citrix are continually exploring reseller business. opportunities to complement • Access to Citrix CSP products our existing offerings. • It is our ongoing pro
Slide 25: Industry Recognition
Industry Recognition AGM 2018 ARN Hardware ARN Homegrown ARN NZ -Software Aruba Top Distributor Citrix ANZ Distributor of the Year Distributor of the Year Distributor of the Year FY17 South Pacific Distributor of the Year Citrix APJ Operational Citrix APJ Dell EMC Intel Distributor Lenovo PCG Excell
Slide 26: New Building Update
New Building Update AGM 2018 • The development application for our new distribution centre was lodged 28 February 2018 and expected to be approved within 6 months. We therefore do not anticipate any material capital expenditure until much later in the year. • With continued focus and improvement in
Slide 27: Thank You!
Thank You!
Slide 28: Further Information
Further Information AGM 2018 Contact Information ▪ David Dicker – david.dicker@dickerdata.com.au ▪ Mary Stojcevski – mary.stojcevski@dickerdata.com.au ▪ Vladimir Mitnovetski – vlad.mitnovetski@dickerdata.com.au 28
Slide 29: Disclaimer
Disclaimer AGM 2018 This presentation has been prepared by Dicker Data Ltd (ACN 000 969 362). All information and statistics in this presentation are current as at 21 May 2018 unless otherwise specified. It contains selected summary information and does not purport to be all-inclusive or to contain