Slide 1: Investor Presentation
For personal use only Investor Presentation March 2015 …experience is the difference
Slide 2: Corporate Snapshot
Corporate Snapshot For personal use only Capital Structure Shareholders Share Price (19 March 2015) $1.58 David Dicker 62.5m Fully paid ordinary shares 131.1m Options 0.0m Fiona Brown 54.8m Market Capitalisation $207.2m Cash (31 Dec 2014) $3.7m Share price ( 2 years) Drawn Debt (31 Dec 2014) $122.7m
Slide 3: Company Background
Company Background For personal use only § Dicker Data Ltd (ASX: DDR) is a leading Australian wholesale distributor of computer hardware, software and related products, and also offering related technical services to the reseller community. The Company has been in operation since 1978. § The compa
Slide 4: Our Vendor Brands
Our Vendor Brands For personal use only March 2015 Dicker Data 4
Slide 5: IT market and strategy
IT market and strategy For personal use only § Our strategy has been to focus on Market share 2010 versus 2013 delivering excellent service through technical sales expertise developed through specialisation in a limited vendor 11% range. Other 14% § This focus and an aligned employee 7% Westcon 8%
Slide 6: Financial Track Record
Financial Track Record For personal use only § We expect to report substantial growth in sales and profitability in FY15 through the full year contribution from Express Data and from merger cost savings. § In FY14 the Company changed its year end to December, prior years reflect the June year end.
Slide 7: Results Highlights July 2014 – December 2014
Results Highlights July 2014 – December 2014 For personal use only § The Company changed its financial year end from June to December to afford better visibility, with the stronger quarter being the three month to June. The period July 2014 to December 2014 is a transitional financial year for repo
Slide 8: Full Year Results January 2014 to December 2014
Full Year Results January 2014 to December 2014 For personal use only Key Financial Data Dec-14 Dec-13 * Variance 12-month to: (in $m) (in $m) % § The last 12 months include a first time (9 Total revenue $936.5 $462.3 102.6% month) contribution from the acquired Gross Profit 105.4% Express Data. $8
Slide 9: Balance Sheet
Balance Sheet For personal use only FY14 Balance Sheet ($m) 31-Dec-14 30-Jun-14 § The Company finished FY14 with $3.7m in Net Assets Cash and equivalents 3.7 18.2 cash. Accounts receivable 147.9 161.2 § The drawn group debt was $122.7m. Inventory 84.6 85.1 Other current assets 0.0 0.0 § Secured d
Slide 10: Pro-forma Balance Sheet
Pro-forma Balance Sheet For personal use only Projected Balance Sheet FY15 Capital Structure 31-Dec-14 31-Dec-15 Net Assets § In March 2014 the Company introduced a Cash and equivalents 3.7 13.7 dividend reinvestment plan. This is part of the Accounts receivable 147.9 147.9 capital management strat
Slide 11: Acquisition of Express Data
Acquisition of Express Data For personal use only $1,500m § On 10 February 2014 we announced the $1,250m acquisition of Express Data Holdings. $1,000m § The merger of our two businesses brings together the third and fourth largest IT $750m distributors in Australasia to form a $500m business with
Slide 12: Integration update and outlook
Integration update and outlook For personal use only § Site consolidation completed in September 2014. All Dicker Data (and former Express Data) employees are now located in Kurnell. § Integration of workforces has been relatively smooth but the Company made the decision to temporarily carry extra
Slide 13: Cost Rationalisation Update
Cost Rationalisation Update For personal use only § We had identified annual cost savings of $13.0m from bringing the two businesses together. During the calendar year 2014 we have realised $6.9m of these savings, annualising of which will see a further $4m cost benefits in CY15. §Actions have bee
Slide 14: Opportunities: New Zealand
Opportunities: New Zealand For personal use only § The acquisition of Express Data has EDNZ Revenue in AUD($m) provided us an entry into the New Zealand market. $136.1m § The business’ head office is in Auckland with branch offices in $118.7m Wellington and Christchurch. $97.8m § NZ revenue for t
Slide 15: New Zealand Expansion
New Zealand Expansion For personal use only § We are launching our first volume vendors in April 15, starting with Toshiba, Kingston and subsequently Targus. § We will also be the first distributor to have a cloud platform in NZ featuring multiple tier- one global vendors. § Dicker Data NZ holds
Slide 16: Opportunities: Cloud Computing
Opportunities: Cloud Computing For personal use only § One of Dicker Data’s top initiatives in 2015 is the launch of our Cloud Marketplace. § Cloud distribution is increasing for end users considering an IT refresh or accessing new applications. § We are working on a ‘market place’ portal schedul
Slide 17: Benefits of a Cloud Strategy
Benefits of a Cloud Strategy For personal use only § Businesses are moving towards recurring consumption based models to lower their capex costs and convert opex to variable costs § Vendor partners are now driving end-user purchasing behaviour towards consumption based products to secure long-term
Slide 18: Evolution of Products
Evolution of Products For personal use only (A$M rev) (A$M rev) 1% 7 16% 6 5 Cloud-based software distribution 4 Software distribution 3 ex-Cloud 2 Traditional 1 distribution revenue 0 2010 2011 2012 2013 2014 83% Express Data and Microsoft Cloud Based Distribution DDR’s Legacy distribution business
Slide 19: Existing Capabilities
Existing Capabilities For personal use only § We have substantial existing capabilities and demand to support a Cloud Marketplace strategy. § Existing vendor distribution agreements are over 40 vendors, with currently 13 vendors where we are distributing cloud-based solutions. Existing Capabilitie
Slide 20: Cloud Subscription Aggregator
Cloud Subscription Aggregator For personal use only § We are developing the infrastructure to both sell and aggregate subscription licensing to service providers for global vendors and leverage our position as one of the largest regional IT distributors to rapidly grow. § Key vendor relationships
Slide 21: Thank you
Thank you For personal use only Questions? Contact Information § David Dicker – david.dicker@dickerdata.com.au § Mary Stojcevski – mary.stojcevski@dickerdata.com.au § Vladimir Mitnovetski – vlad.mitnovetski@dickerdata.com.au March 2015 Dicker Data 21
Slide 22: Disclaimer
Disclaimer For personal use only This presentaCon has been prepared by Dicker Data Ltd (ACN 000 969 362). All informaCon and staCsCcs in this presentaCon are current as at 9 March 2015 unless otherwise specified. It contains selected summary informaCon and does not purport to be all-‐inclusive or to