Slide 1: Financial Results FY19
FINANCIAL RESULTS FY19 DICKER DATA
Slide 2: Results Highlights
RESULTS HIGHLIGHTS 17.9% • Strong revenue growth of 17.9%, with total revenue from REVENUE INCREASE* ordinary activities at $1,761.3m. • Recurring software revenue increased 47.9% from $247.9m to $366.5m 37.5% • At a country level, Australia grew revenues at 16.8% and New Zealand grew revenues at 38
Slide 3: Financial Trends Full Year
FINANCIAL TRENDS FULL YEAR Revenue (from ordinary activities)* ($m) Gross Profit ($m) and Gross Profit Margin (%) 200.0 9.0% 9.6% 9.3% 9.0% 9.0% 8.9% 7.0% 150.0 5.0% 100.0 3.0% 1,761.3 158.4 1,493.6 132.4 1,185.5 1,306.0 117.8 1.0% 1,077.6 50.0 103.5 109.7 -1.0% – -3.0% FY15A FY16A FY17A FY18A FY19A
Slide 4: FY19 Results Group
FY19 RESULTS GROUP • Total Revenue includes $12.2m profit on the sale of property. 12 months to (in $m): Dec-19 Dec-18 Variance • Revenue growth of 17.9% with revenue from ordinary activities finishing at $1.76b for the year. Total Revenue 1,773.5 1,493.6 18.7% Revenue from Ordinary Activities 1,761
Slide 5: Revenue Category Splits and Growth
REVENUE CATEGORY SPLITS AND GROWTH Hardware by Product Category Software by Billing Method PRINT $25m (+183% YoY) SERVICES VIRTUAL $8m SERVICES & (+6% YoY) STORAGE OTHER $16M RENEWABLE PERIPHERALS $137m (-26% YoY) $230m $237m (+22% YoY) (+20% YoY) (+41% YoY) HW & PERPETUAL $1,321m VIRTUAL $1,758m* S
Slide 6: Margin quality improvement
FY19 RESULTS GROUP Sources of Profit Growth 2019 $2.3m $23.8m • Exceptional operational scale efficiency during 2019. $17.5m • Both revenue and margin quality -$6.4m improved. -$2.0m $-0.2m • Operating cost growth was restrained Margin quality improvement and improved to 4.9% of revenue. Margin on r
Slide 7: FY19 Results New Zealand
FY19 RESULTS NEW ZEALAND • Revenue growth of 35.5% driven by the introduction 12 months to (in $NZm): Dec-19 Dec-18 Variance of new vendors and increases in market share. Total revenue 122.4 90.3 35.5% • Gross profit increased by 24.0% with margins abating Gross profit 10.8 8.7 24.0% due to competit
Slide 8: FY19 Balance Sheet
FY19 BALANCE SHEET Net Assets (in $m) Dec-19 Dec-18 Ratios Dec-19 Dec-18 Cash and equivalents 22.6 6.6 Net Working Capital ($m) 165.4 121.2 Accounts receivable 295.9 238.7 Net Working Capital Days 31.3 27.6 Inventory 120.4 105.5 Debt to Equity 1.37x 1.37x Other current assets 0.0 0.0 Total current a
Slide 9: FY19 Cash Flow
FY19 CASH FLOW Source and Application of Cash Open Cash $6.6m EBITDA $73.8m Net Interest & Tax -$20.9m Working Capital Movement -$44.2m Other $13.9m Disposal of Assets $14.6m Payment of Dividends -$39.4m Drawdown from Financing Facilites $18.2m Close Cash $22.6m Application Source 9
Slide 10: FY19 Dividends
FY19 DIVIDENDS • Strong dividend growth of 63.4% with Record Payment Date Dividend Type Amount Franked total dividends paid 33.0cps for FY19 Date (CPS) (FY18 20.2cps). 20-May-19 3-Jun-19 0.0500 Interim 100% • Dividends included a special dividend 19-Aug-19 2-Sep-19 0.0500 Interim 100% of 5.0cps paid
Slide 11: Business Update
a BUSINESS ___ UPDATE
Slide 12: IT Market and Our Strategy
IT MARKET AND OUR STRATEGY • Dicker Data is a leading Value Added Technology Distributor Australian IT Distribution Market Share Australian IT Distribution Market Share • Our speciality is servicing the mid-market and (Consumer, Large National Retail, Corporate, (Corporate, Commercial, Enterprise on
Slide 13: Opportunities 2020
OPPORTUNITIES 2020 INTERNET OF THINGS SECURITY PHYSICAL SECURITY EDGE COMPUTING Our Australian-first IoT Continuing to capitalise Moving into the surveillance Delivering technologies that Community now has on the security camera market which aligns enable intelligent edge 150+ members. opportunity e
Slide 14: FY20 Focus
FY20 FOCUS DDFS - Dicker Data Financial Services (DDFS) was launched in H119 to address the growing demand for as-a-Service solutions. In FY20 we will work to accelerate the uptake of our DDFS offerings and in turn create long-term renewable contract-based revenues. We will also assist our partners
Slide 15: Sale of Existing Building
SALE OF EXISTING BUILDING • The Company sold its distribution centre at 230 Captain Cook Drive Kurnell on 15 August 2019. • Total consideration for the sale was $36m, and the profit on the sale was $12.2m. • The Company has entered into a 2 year lease with the new owners. There is an option to exten
Slide 16: New Building Update
NEW BUILDING UPDATE • Builder was appointed end of last year and construction has now commenced. • New distribution centre is expected to be completed by the end of this year. • Expected cost for the build and fit out is estimated to be approximately $55m. • Size of distribution centre will increase
Slide 17: Company Overview
COMPANY OVERVIEW NUMBER 1 DISTRIBUTOR $ ASX Listed AUD $1.8b Consistent Growth Nimble and Agile 485 Staff in ANZ Dicker Data listed on the Dicker Data is the largest Dicker Data has achieved Dicker Data’s success is built Dicker Data has a strong ASX in 2011. Australian owned distributor consistent
Slide 18: Corporate Headlines
CORPORATE HEADLINES Capital Structure 1 Year Share Price Share Price (27 Feb 2020) $6.25 ASX: DDR 9.00 Fully paid ordinary shares 161.6m 8.00 Options 0.0m 7.00 Market Capitalisation $1,010.1m 6.00 Cash (31 Dec 2019) 22.6m 5.00 Drawn Debt (31 Dec 2019) 129.9m 4.00 Shareholders 3.00 Founder -David Dic
Slide 19: Team
David Dicker Fiona Brown Vlad Mary Ian Michael Leanne Chairman and CEO Non-Executive Mitnovetski Stojcevski Welch Demetre Ralph Founder Director and COO CFO CIO Logistics Director Non-Executive Founder Director EXECUTIVE TEAM 19
Slide 20: Company History
COMPANY HISTORY 1987 1993 2000 2010 2011 2014 2015 2017 2019 First Toshiba First Compaq Annual Relocated to Listed on the Acquired Ann. revenue Launched Launched FOUNDED distributor in distributor in revenues new custom ASX Express Data exceeds $1B Australia’s Dicker Data Australia Australia exceed
Slide 21: Our Vendors
OUR VENDORS ANKER vse | APE aruba TBS tS Awsocotes § MAUTODESK §« ATDECE. *#* belkin. CSsittitan BLUPEAK = A . DICKER SPpuddy aoe 1h! CITRPC commscx comaure — GOB @lhua BICKER DIGKER casi K-dyrabooe CKANAU ery SSeZV'Z FUJIFILM FUSITSU GIGABYTE’ 3 HeIMpaL” ITACHI, @ HewietPactard Honeywell imation (i
Slide 22: 2019 Vendor Additions
2019 VENDOR ADDITIONS Appointed as distributor for Appointed as distributor for the Appointed to distribute the entire range of security complete range of security Automatic Identification and software products in AU cameras and devices in AU Data Capture range of products for ANZ Appointed to distr
Slide 23: Diverse Long-Term Vendor Relationships
DIVERSE LONG-TERM VENDOR RELATIONSHIPS Major Vendor Concentration (% of Sales) 100.0% 10% 11% • Dicker Data has continued to introduce 90.0% Vendor 5 Vendor 5 23% 24% new vendors to reduce reliance on any Vendor 4 31% single vendor 80.0% Vendor 4 39% 43% 43% Vendor 3 Vendor 5 Vendor 5 Vendor 3 70.0%
Slide 24: Industry Recognition
INDUSTRY RECOGNITION APC by Schneider ARN Hardware and Aruba Top Distributor Cisco ANZ Distributor Citrix APJ and ANZ Dell Technologies APJ Electric Distributor of Homegrown Asia Pacific of the Year 2018 Distributor of the Year Distributor of the the Year 2019 Distributor of the Year FY16, FY17 and
Slide 25: Industry Recognition
44 fe uive S & 22. Saniaire Market Segment Growth Leadership 2019 (NAS) : 7
Slide 26: Thank You
THANK YOU 26
Slide 27: 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 at 27 February 2020 unless otherwise specified. It contains selected summary information and does not purport to be all-inclusive or to contain all