Action S.A. · GPW:ACT
Action — H1 2013 Earnings Presentation
33 slides from Action's earnings presentation, Sep 3, 2013
Slide 1: Presentation of Financial Results January – June 2013
PRESENTATION OF FINANCIAL RESULTS January – June 2013 Warsaw, 3 September 2013
Slide 2: Presentation Outline
PRESENTATION OUTLINE 1. Financial results 2. Level of financial forecast target achievement 3. Dividend policy 4. New growth areas 5. ACTION Group companies and e-commerce projects 6. Private labels 7. Directions of development for the ACTION Group 8. Foundations of the ACTION Group 2
Slide 3: Financial Results: H1 2013 in the ACTION Group
FINANCIAL RESULTS H1 2013 IN THE ACTION GROUP KEY PARAMETRES ACTION'S IMAGE High revenue dynamics of 37.7% ACTION S.A. holds the high position of the 30th Growth of sales in Poland by 23.6% Listed Company of the Year Growth in the export customer base (according to a ranking prepared for Puls Biznes
Slide 4: ACTION Group's Sales Dynamics H1
FINANCIAL RESULTS ACTION GROUP'S SALES DYNAMICS In H1 2013 sales revenue grew by 37.7% year-on-year Steady growth trend over recent years Sales dynamics (in PLN'000) 2 121 122 1 539 915 1 112 156 +37.7% +38.5% H1 2011 H1 2012 H1 2013 4
Slide 5: ACTION Group's Sales Dynamics Q2
FINANCIAL RESULTS ACTION GROUP'S SALES DYNAMICS In Q2 2013 sales revenue grew by 31.5% year-on-year Steady growth trend over recent years Sales dynamics (in PLN'000) 989 212 752 163 572 061 +31.5% +31.5% Q2 2011 Q2 2012 Q2 2013 5
Slide 6: ACTION Group's Net Profit Dynamics H1
FINANCIAL RESULTS ACTION GROUP'S NET PROFIT DYNAMICS Net profit in H1 2013 amounted to PLN 28,370 thousand Steady growth trend over recent years Net profit dynamics (in PLN'000) 28 370 20 452 17 285 +38.7% +18.3% H1 2011 H1 2012 H1 2013 6
Slide 7: ACTION Group's Net Profit Dynamics Q2
FINANCIAL RESULTS ACTION GROUP'S NET PROFIT DYNAMICS Net profit in Q2 2013 amounted to PLN 13,343 thousand Steady growth trend over recent years Net profit dynamics (in PLN'000) 13 343 9 343 8 780 +42.8% +6.4% Q2 2011 Q2 2012 Q2 2013 7
Slide 8: ACTION Group's Selected Financial Figures
FINANCIAL RESULTS ACTION GROUP'S SELECTED FINANCIAL FIGURES Data in PLN '000 2012 2Q 2013 2Q % 2012 1HY 2013 1HY % Sales revenue 752,163 989,212 31.5% 1,539,915 2,121,122 37.7% Gross profit on sales 53,620 71,587 33.5% 104,686 129,205 23.4% 7.1% 7.2% 0.1 p.p. 6.8% 6.1% -0.7 p.p. Gross margin on sale
Slide 9: ACTION Group's Liquidity and Debt
FINANCIAL RESULTS ACTION GROUP'S LIQUIDITY AND DEBT Liquidity ratios 2013 2Q 2012 2Q Current ratio (current assets/current liabilities) 1.21 1.20 Quick ratio (liquid current assets/current liabilities) 0.71 0.60 Debt ratios 2013 2Q 2012 2Q Total debt ratio 0.71 0.71 Debt to equity ratio 2.40 2.42 In
Slide 10: Continued Improvement in Cash Management
FINANCIAL RESULTS CONTINUED IMPROVEMENT IN CASH MANAGEMENT 100 000 85 838 80 000 60 000 40 000 31 490 20 000 PLN '000 0 -1 223 -7 202 -20 000 -40 000 -33 771 -60 000 -80 000 -72 796 -100 000 Przepływy z działalności Flows from operacyjnej operating activities Przepływy z działalności Flows from inwe
Slide 11: Continued Improvement in Cash Conversion Cycle
FINANCIAL RESULTS CONTINUED IMPROVEMENT IN CASH CONVERSION CYCLE Cash conversion 60 52 50 50 41 40 38 36 days 30 28 27 20 14 10 0 Rotacja turnover Inventory zapsów Rotacja należności Receivables turnover Rotacja zobowiązań Liabilities turnover Cykl Cashkonwersji conversiongotówki cycle IHY 2013 28 3
Slide 12: Outline: Financial results
1. Financial results 2. Level of financial forecast target achievement 3. Dividend policy 4. New growth areas 5. ACTION Group companies and e-commerce projects 6. Private labels 7. Directions of development for the ACTION Group 8. Foundations of the ACTION Group 12
Slide 13: 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 Net profit revenue ACTION ACTION 1 HY 2012 1 HY 2012 2 HY 2012 2 HY 2013 2 HY 2013 2 HY 2013 42.3% 43.8% 50.2% 51.7% ACTION GROUP 2011 2012 2013 S
Slide 14: Outline: Level of forecast achievement
1. Financial results 2. Level of financial forecast target achievement 3. Dividend policy 4. New growth areas 5. ACTION Group companies and e-commerce projects 6. Private labels 7. Directions of development for the ACTION Group 8. Foundations of the ACTION Group 14
Slide 15: Dividend Policy
DIVIDEND POLICY CONTINUATION OF THE DIVIDEND POLICY DUE TO EXCELLENT FINANCIAL STANDING • Since the stock exchange debut, over PLN 90 million was paid off as dividend, with an annual average of almost PLN 12.8 million • 118.5% increase of the book value ratio per 1 share since the Company's stock ex
Slide 16: Outline: Dividend policy
1. Financial results 2. Level of financial forecast target achievement 3. Dividend policy 4. New growth areas 5. ACTION Group companies and e-commerce projects 6. Private labels 7. Directions of development for the ACTION Group 8. Foundations of the ACTION Group 16
Slide 17: New Growth Areas: Consistent Development of ACTION Enterprise
NEW GROWTH AREAS CONSISTENT DEVELOPMENT OF ACTION ENTERPRISE Implementation of business principles according to the adopted schedule Obtaining new contracts Achieving a high position on the Polish market in a short time with 4 products of the global server provider – FUJITSU; Obtaining new customers
Slide 18: New Growth Areas: Specjaliści RTV/AGD Partner Programme
NEW GROWTH AREAS SPECJALIŚCI RTV/AGD A UNIQUE PARTNER PROGRAMME Dynamic growth of the SPECJALIŚCI RTV/AGD partner programme Specjaliści RTV/AGD is a national chain developed based on the ACTION S.A.'s partner programme June 2012 June 2013 25 stores over 150 stores + 125 stores The first large confer
Slide 19: Outline: New growth areas
1. Financial results 2. Level of financial forecast target achievement 3. Dividend policy 4. New growth areas 5. ACTION Group companies and e-commerce projects 6. Private labels 7. Directions of development for the ACTION Group 8. Foundations of the ACTION Group 19
Slide 20: Group Companies and E-commerce Projects: Sferis Showroom Chain
ACTION GROUP COMPANIES AND E-COMMERCE PROJECTS SFERIS I. EXPERT SHOWROOM CHAIN • 193 retail outlets, of which at the end of June 2013: 117 partner showrooms vs 97 at the end of June 2012 27 own showrooms vs 33 at the end of June 2012 49 retail islands vs 56 at the end of June 2012 • Further sales gr
Slide 21: Sferis: Developing Additional Projects
ACTION GROUP COMPANIES AND E-COMMERCE PROJECTS SFERIS II. DEVELOPING ADDITIONAL PROJECTS an operator of the first Samsung Brand Store in Central and Eastern Europe The store is located in the CH Arkadia shopping centre in Warsaw The store opening was connected with the launch of the latest smartphon
Slide 22: E-commerce Projects
ACTION GROUP COMPANIES AND E-COMMERCE PROJECTS E-COMMERCE PROJECTS STORES OPERATED BY SFERIS OWN PROJECTS CAPABILITIES OF THE GROUP ADVANTAGES FOR THE GROUP: • Comprehensive logistics services • Possibility of building a unique offer • IT system supplier • Cooperation with producers in new areas • E
Slide 23: ACTION Educational Centre
ACTION EDUCATIONAL CENTRE ACTIVE PROMOTION OF CLOUD LABS - a cloud-based service supporting the new generation of IT training ACTION Educational Centre helps training companies to quickly and effectively provide training courses and workshops without the need to implement and maintain an extended se
Slide 24: Outline: Group companies and e-commerce
1. Financial results 2. Level of financial forecast target achievement 3. Dividend policy 4. New growth areas 5. ACTION Group companies and e-commerce projects 6. Private labels 7. Directions of development for the ACTION Group 8. Foundations of the ACTION Group 24
Slide 25: Private Labels: Consumables
PRIVATE LABELS CONSUMABLES – CONSISTENT BRAND DEVELOPMENT PRODUCT DIVERSIFICATION GEOGRAPHICAL DIVERSIFICATION Constant broadening of the product range in each of the Constant strengthening of position on the segments below; Polish market; Three growth segments: Entering new markets in Europe German
Slide 26: Private Labels: Lighting Products
PRIVATE LABELS LIGHTING PRODUCTS – CONSISTENT BRAND DEVELOPMENT CONSUMER BRAND EXPERT BRAND Products: LED light sources, LED strips, compact Products: LED light sources, energy-efficient and linear fluorescent lamps (CFLs), halogen lamps, LED torches, fluorescent lamps, lighting fixtures (louver, he
Slide 27: Outline: Private labels
1. Financial results 2. Level of financial forecast target achievement 3. Dividend policy 4. New growth areas 5. ACTION Group companies and e-commerce projects 6. Private labels 7. Directions of development for the ACTION Group 8. Foundations of the ACTION Group 27
Slide 28: Directions of Development for the ACTION Group
DIRECTIONS OF DEVELOPMENT FOR THE ACTION GROUP I. BUILDING THE DEVIL'S STRONG DISTRIBUTION POSITION ON THE GERMAN MARKET Obtaining contracts on the German market and their further development Development of private labels on the German market: ActiveJet - Pentagram Use of the Devil – ACTION synergy:
Slide 29: Development of Devil GmbH
DIRECTIONS OF DEVELOPMENT FOR THE ACTION GROUP DEVELOPMENT OF DEVIL GMBH DEVELOPMENT IN GERMANY Reactivating customer base Expanding product portfolio Using ACTION's unique know-how in the area of logistics and its flexibility DEVELOPMENT ON THE NEIGHBOURING MARKETS Devil will further develop trade
Slide 30: ACTION S.A. and Devil GmbH's Synergies
DIRECTIONS OF DEVELOPMENT FOR THE ACTION GROUP ACTION S.A. and DEVIL GMBH's synergies ADVANTAGES FOR ACTION S.A. Advantages Gaining direct access to Higher growth of the German the largest IT market in economy than analysts EU expected Possibility of operating on the higher trade margins 7 times lar
Slide 31: Outline: Directions of development
1. Financial results 2. Level of financial forecast target achievement 3. Dividend policy 4. New growth areas 5. ACTION Group companies and e-commerce projects 6. Private labels 7. Directions of development for the ACTION Group 8. Foundations of the ACTION Group 31
Slide 32: 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 metres of storage space over 17,000 products over 2.5 km of modern conveyor lines over 550 producers – IT equipment, radio and television up
Slide 33: Contact for media and capital market representatives
Contact for media and capital market representatives Anna Bielińska – Corporate Communications Manager tel.: 22 332 16 96, e-mail: anna.bielinska@action.pl Dominika Lenkowska-Piechocka – Agencja Martis CONSULTING tel.: 22 244 57 09, e-mail: dominika.lenkowska@mc.com.pl 33