Action S.A. · GPW:ACT
Action — Q3 2013 Earnings Presentation
32 slides from Action's earnings presentation, Nov 14, 2013
Slide 1: Presentation of Financial Results July-September 2013
PRESENTATION OF FINANCIAL RESULTS July-September 2013 Warsaw, 14 November 2013
Slide 2: Presentation Outline
PRESENTATION OUTLINE 1. Financial results 2. Level of financial forecast target achievement 3. Strengthening of activities in Poland Development of sales channels: dealers, sales networks, tenders, Telco, retail chains and e-commerce 4. International expansion Devil GmbH Export 5. Private labels: Ac
Slide 3: Financial Results: Q3 2013 in the ACTION Group
FINANCIAL RESULTS Q3 2013 IN THE ACTION GROUP KEY PARAMETERS SIGNED DISTRIBUTION CONTRACTS • High revenue dynamics of 37.8% • Growth of sales in Poland by 28.7% • Increased number of active resellers: 11,223 in 3Q vs 10,259 in Q2 • Higher number of sales invoices: 182,089 in 3Q vs 176,130 in Q2 • Gr
Slide 4: ACTION Group's Sales Dynamics
FINANCIAL RESULTS ACTION GROUP’S SALES DYNAMICS Sales revenue grew in Q3 2013 by 37.8% compared to the corresponding period of the previous year Steady growth trend in recent years Sales dynamics (in PLN thousand) 1 140 091 827 372 669 308 +37,8% +23,6% Q3 2011 Q3 2012 Q3 2013 4
Slide 5: ACTION Group's Net Profit Dynamics
FINANCIAL RESULTS ACTION GROUP’S NET PROFIT DYNAMICS Net profit in Q3 2013 amounted to PLN 13,867 thousand Steady growth trend in recent years Net profit dynamics (in PLN thousand) 13 867 11 042 10 126 +25,6% +9,0% Q3 2011 Q3 2012 Q3 2013 5
Slide 6: ACTION Group's Selected Financial Figures
FINANCIAL RESULTS ACTION GROUP’S SELECTED FINANCIAL FIGURES Data in PLN thousand Q3 2012 Q3 2013 % Q3 2012 Q3 2013 YTD YTD % Sales revenues 827,372 1,140,091 37.8% 2,367,287 3,261,213 37.8% Gross profit on sales 53,616 68,678 28.1% 158,302 197,883 25.0% Gross margin on sales 6.5% 6.0% -0.5 pp 6.7% 6
Slide 7: ACTION Group's Liquidity and Debt
FINANCIAL RESULTS ACTION GROUP’S LIQUIDITY AND DEBT Liquidity ratios Q3 2013 Q3 2012 Current ratio (current assets / current liabilities) 1.19 1.19 Quick ratio (liquid current assets / current liabilities) 0.69 0.62 Debt ratios Q3 2013 Q3 2012 General debt ratio 0.74 0.71 Equity debt ratio 2.82 2.41
Slide 8: Cash Management
FINANCIAL RESULTS CASH MANAGEMENT 46 018 32 803 -4 085 -12 073 -14 528 -13 517 8
Slide 9: Cash Management
FINANCIAL RESULTS CASH MANAGEMENT 55.8 55.2 40.7 38 46.6 32.5 19.5 17.4 9
Slide 10: Presentation Outline
PRESENTATION OUTLINE 1. Financial results 2. Level of financial forecast achievement 3. Strengthening of activities in Poland Development of sales channels: dealers, sales networks, tenders, Telco, retail chains and e-commerce 4. International expansion Devil GmbH Export 5. Private labels: ActiveJet
Slide 11: Level of Financial Forecast Target Achievement
LEVEL OF FINANCIAL FORECAST TARGET ACHIEVEMENT ACTION Group revenue forecast target achievement ACTION Group net profit forecast target achievement Sales revenues Net profit ACTION ACTION 3 Q 2013 3 Q 2013 4 Q 2013 4 Q 2013 ACTION 4 Q 2012 ACTION 3Q YTD 3Q YTD 4 Q 2012 2012 2012 66.5% 71.52 % 70.1%
Slide 12: Presentation Outline
PRESENTATION OUTLINE 1. Financial results 2. Level of financial forecast target achievement 3. Strengthening of the activities in Poland Development of sales channels: dealers, sales networks, tenders, Telco, commercial network and e-commerce 4. International expansion Devil GmbH Export 5. Private l
Slide 13: Strengthening of Activities in Poland: Development of Sales Channels
STRENGTHENING OF ACTIVITIES IN POLAND DEVELOPMENT OF SALES CHANNELS SALES CHANNELS IN POLAND SALES SUPPORT ACTIONS Dealer channel Retail chains Telco (IT, home appliances/electronics) (IT) (IT) marketing RETAIL: T - Mobile IT and home 11,223 appliances Orange Resellers /electronics Polkomtel educati
Slide 14: Dealer Channel: Education and Marketing Support
STRENGTHENING OF ACTIVITIES IN POLAND DEVELOPMENT OF SALES CHANNELS DEALER CHANNEL We instruct how to generate services based on the latest 1. Education technologies • Training and workshops on the latest technologies • Top experts • Membership of the elite Leader Learning Partners Association Road
Slide 15: Dealer Channel: Offer Development, Action Smart House
STRENGTHENING OF ACTIVITIES IN POLAND DEVELOPMENT OF SALES CHANNELS DEALER CHANNEL 3. Offer development Building a complementary range of products and services using new technologies for homes and companies: • Integration with alarm systems • Integration with cloud • Management of consumer electroni
Slide 16: Dealer Channel: B2B Offer Development, Digital Signage
STRENGTHENING OF ACTIVITIES IN POLAND DEVELOPMENT OF SALES CHANNELS DEALER CHANNEL 3. B2B offer development Digital Signage - B2B Visual Displays • Leader in Digital Signage sales • Wide array of customers: retail, HoReCa, shopping centres, railway stations, industry, office, management centres, cin
Slide 17: Dealer Channel: Enterprise Offer Development
STRENGTHENING OF ACTIVITIES IN POLAND DEVELOPMENT OF SALES CHANNELS DEALER’ CHANNEL 4. Enterprise offer development Action ENTERPRISE 800 CUSTOMERS OVER • Becoming number 1 distributor of GROWTH BY 100 NEW CUSTOMERS IN Q3 Share of servers and storage sales Share of PC & mobile sales ACTION Enterpris
Slide 18: Tenders and Corporate Sales
STRENGTHENING OF ACTIVITIES IN POLAND DEVELOPMENT OF SALES CHANNELS TENDERS AND CORPORATE SALES 1. Tenders won in Q3: Marshal Office of the Podkarpackie Voivodeship in Rzeszów – PLN 35.4 million 2. Tender orders executed in Q3: Total value Tax Chambers – PLN 43 million PLN 123.5 million Warsaw Munic
Slide 19: Sferis Retail Network
STRENGTHENING OF ACTIVITIES IN POLAND DEVELOPMENT OF SALES CHANNELS SFERIS RETAIL NETWORK DEVELOPMENT OF SFERIS EXPERT SHOWROOM CHAIN • 130 partner showrooms vs 103 at the end of September 2012 201 SALES OUTLETS NATIONWIDE • 25 own showrooms vs 30 at the end of September 2012 • 46 display islands vs
Slide 20: Sferis Retail Chain and E-commerce
STRENGTHENING OF ACTIVITIES IN POLAND DEVELOPMENT OF SALES CHANNELS SFERIS RETAIL CHAIN AND E- COMMERCE INTENSIVE MARKETING ACTIVITIES - CONTINUED • 650 new drop points under the project Petrol Station with a Parcel • Completion of the final stage of the ERP system implementation • Expansion of port
Slide 21: Presentation Outline
PRESENTATION OUTLINE 1. Financial results 2. Level of financial forecast target achievement 3. Strengthening of activities in Poland Development of sales channels: dealers, sales networks, tenders, Telco, retail chains and e-commerce 4. International expansion Devil GmbH Export 5. Private labels: Ac
Slide 22: International Expansion: Devil GmbH Development
INTERNATIONAL EXPANSION DEVIL GmbH DEVELOPMENT Profit margin generated since the beginning of operations: EUR 8.9 million of turnover in Q3 2013 Steadily rising client base: More than 1,400 customers served per month 1 483 1 141 565 July August September New major distribution contracts: 22
Slide 23: International Expansion: Devil GmbH Development
INTERNATIONAL EXPANSION DEVIL GmbH DEVELOPMENT Building a sale activity base for private labels: Participation in international fairs: Synaxon Fair – Germany 12-13 September 2013 23
Slide 24: International Expansion: Export to 300 Companies Worldwide
INTERNATIONAL EXPANSION EXPORT • Growth in the number of customers: +30% 2012 2013 EXPORT TO 300 COMPANIES WORLDWIDE • Export sales growth by 62% (Q3 2012 vs Q3 2013) • Expanding product portfolio • High growth in product groups: PHOTO, consumer electronics, home appliances, notebooks, mobiles, tabl
Slide 25: Presentation Outline
PRESENTATION OUTLINE 1. Financial results 2. Level of financial forecast target achievement 3. Strengthening of activities in Poland Development of sales channels: dealers, sales networks, tenders, Telco, retail chains and e-commerce 4. International expansion Devil GmbH Export 5. Private labels: Ac
Slide 26: Private Labels: Consistent Development
PRIVATE LABELS CONSISTENT DEVELOPMENT 1. UNCHALLENGED MARKET LEADER 4. GEOGRAPHIC DIVERSIFICATION • Overview of the alternative consumables market- IDC H1 2013 report ActiveJet and Actis as the sales leader • Sales development through Devil GmbH • Entering into new European markets: Romania, Spain •
Slide 27: Private Labels: Pentagram
PRIVATE LABELS PENTAGRAM Dynamic sales growth Development of sales channels • Tablets, mobile phones, network devices • 80,000 tablets sold • 2,400 customers in 3 the channels below 1. Telco 2. Retail chains 3. Dealer channel 27
Slide 28: Presentation Outline
PRESENTATION OUTLINE 1. Financial results 2. Level of financial forecast target achievement 3. Strengthening of activities in Poland Development of sales channels: dealers, sales networks, tenders, Telco, retail chains and e-commerce 4. International expansion Devil GmbH Export 5. Private labels: Ac
Slide 29: Directions of Development for the ACTION Group
DIRECTIONS OF DEVELOPMENT FOR THE ACTION GROUP I. BUILDING DEVIL'S STRONG DISTRIBUTION POSITION ON THE GERMAN MARKET Obtaining contracts on the German market Development of private labels on the German market: ActiveJet, Pentagram Benefiting of the Devil – ACTION synergy: Modern logistics on the Ger
Slide 30: Presentation Outline
PRESENTATION OUTLINE 1. Financial results 2. Level of financial forecast target achievement 3. Strengthening of activities in Poland Development of sales channels: dealers, sales networks, tenders, Telco, retail chains and e-commerce 4. International expansion Devil GmbH Export 5. Private labels: Ac
Slide 31: Foundations of the ACTION Group
FOUNDATIONS OF THE ACTION GROUP GROWTH AREAS STRONG DISTRIBUTOR GLOBAL LOGISTICS Presence in two countries already: Poland and Germany over 30 thousand square meters of storage space over 2.5 km of modern conveyor lines up to 45 thousand parcels shipped daily – capacity of Over 17,000 products the m
Slide 32: Contact for media and capital market representatives
Contact for media and capital market representatives Anna Bielińska – Corporate Communications Manager Phone: 22 332 16 96, e-mail: anna.bielinska@action.pl Dominika Lenkowska- Piechocka – Martis CONSULTING Agency Phone: 22 244 57 09, e-mail: dominika.lenkowska@mc.com.pl 32