Action S.A. · GPW:ACT
Action — Q1 2013 Earnings Presentation
26 slides from Action's earnings presentation, May 16, 2013
Slide 1: Presentation of Financial Results January – March 2013
PRESENTATION OF FINANCIAL RESULTS January – March 2013 Warsaw, 16 May 2013
Slide 2: Presentation Synopsis
PRESENTATION SYNOPSIS 1. Financial results 2. Foundations of GK ACTION 3. New growth areas 4. Publication of financial forecast 5. GK ACTION companies and e-commerce projects 6. Private labels 7. Directions of growth for GK ACTION 2
Slide 3: Sales Dynamics for GK ACTION
FINANCIAL RESULTS SALES DYNAMICS FOR GK ACTION In Q1 2013 sales grew by 43.7%, year-on-year Steady growth trend over recent years Sales dynamics (in thousand zloty) 1 131 910 1 200 000 1 000 000 787 752 800 000 540 095 +43.7% 600 000 400 000 +45.9% 200 000 0 Q1 2011 Q1 2012 Q1 2013 3
Slide 4: Net Profit Dynamics of GK ACTION
FINANCIAL RESULTS NET PROFIT DYNAMICS OF GK ACTION Net profit in Q1 2013 amounted to PLN 15,027 thousand Steady growth trend over recent years Net profit dynamics (in thousand zloty) 15 027 16 000 14 000 11 109 12 000 8 505 10 000 +35.3% 8 000 6 000 +30.6% 4 000 2 000 0 Q1 2011 Q1 2012 Q1 2013 4
Slide 5: Selected Financial Data of GK ACTION
FINANCIAL RESULTS SELECTED FINANCIAL DATA OF GK ACTION Q1 2012 Q1 2013 % Sales revenues 787,752 1,131,910 43.7% Gross profit on sales 51,066 57,600 12.8% Gross margin on sales 6.5% 5.1% 1.4 pp Sales and marketing costs -31,570 -32,351 2.5% In relation to revenues -4.0% -2.9% 1.1 pp General administr
Slide 6: Liquidity of GK ACTION
FINANCIAL RESULTS LIQUIDITY OF GK ACTION Liquidity ratios Q1 2013 Q1 2012 Current ratio (current assets / current liabilities) 1.22 1.23 Quick ratio (liquid current assets / current liabilities) 0.68 0.66 Debt ratios Q1 2013 Q1 2012 General debt ratio 0.70 0.66 Equity debt ratio 0.30 0.34 6
Slide 7: Presentation Synopsis
PRESENTATION SYNOPSIS 1. Financial results 2. Foundations of GK ACTION 3. New growth areas 4. Publication of financial forecast 5. GK ACTION companies and e-commerce projects 6. Private labels 7. Directions of growth for GK ACTION 7
Slide 8: Q1 2013 at GK ACTION
FOUNDATIONS OF GK ACTION Q1 2013 AT GK ACTION OPERATING RESULTS ACTION CORPORATE IMAGE High revenue dynamics - 43.7% ACTION S.A. has high position in the rankings Sales growth in Poland of 27.7% Listed Company of the Year Growth in the export customer base (according to a ranking drawn up for Puls B
Slide 9: Basis for Growth
FOUNDATIONS OF GK ACTION BASIS FOR GROWTH STRONG DISTRIBUTOR GLOBAL LOGISTICS over 17,000 products over 550 producers – IT equipment, radio and over 30 thousand square metres of storage space television products, home appliances, mobile devices over 2.5 km of modern conveyor lines and more, from the
Slide 10: Presentation Synopsis
PRESENTATION SYNOPSIS 1. Financial results 2. Foundations of GK ACTION 3. New growth areas 4. Publication of financial forecast 5. GK ACTION companies and e-commerce projects 6. Private labels 7. Directions of growth for GK ACTION 10
Slide 11: ACTION Enterprise - Dynamic Growth in Q1 13
NEW GROWTH AREAS ACTION Enterprise - DYNAMIC GROWTH IN Q1 2013 Plan performance in Q1 2013 Business number of unique partners: 621, a 10 % increase on Q4 2012 177 % operating profit of 2.5% Number of new AE customers (not buying enterprise in 2012): 335 127 % increase by 82% on Q4 118 % Business car
Slide 12: Specjaliści RTV/AGD
NEW GROWTH AREAS 'SPECJALIŚCI RTV/AGD' Development of new sales channels 'Specjaliści RTV/AGD' is a national, dynamically growing chain of small-format stores. Focus on customers: offer matched to the local market + expert advice The Specjaliści RTV/AGD chain comprises 113 outlets throughout Poland
Slide 13: Presentation Synopsis
PRESENTATION SYNOPSIS 1. Financial results 2. Foundations of GK ACTION 3. New growth areas 4. Publication of financial forecast 5. GK ACTION companies and e-commerce projects 6. Private labels 7. Directions of growth for GK ACTION 13
Slide 14: Further Growth in Revenues and Net Profit
PUBLICATION OF FINANCIAL FORECAST FURTHER GROWTH IN REVENUES AND NET PROFIT GK ACTION 2011 2012 2013 2012 / 2011 2013 / 2012 Sales revenues 2,804,768 3,515,189 4,218,737 25.3% 20.0% Profit/loss 42,409 48,319 54,855 13.9% 13.5% Profit margin 1.5% 1.4% 1.3% • Forecast based on realistic and safe assum
Slide 15: Presentation Synopsis
PRESENTATION SYNOPSIS 1. Financial results 2. Foundations of GK ACTION 3. New growth areas 4. Publication of financial forecast 5. GK ACTION companies and e-commerce projects 6. Private labels 7. Directions of growth for GK ACTION 15
Slide 16: Sferis in Q1: Expert Showroom Chain
GK ACTION COMPANIES AND E-COMMERCE PROJECTS SFERIS IN Q1 2013 I. EXPERT SHOWROOM CHAIN • 192 retail outlets, of which at the end of March 2013: 118 partner showrooms (compared to 82 at the end of March 2012) 26 own showrooms (compared to 31 at the end of March 2012) 48 retail islands (compared to 54
Slide 17: Sferis: Expert Showroom Chain
GK ACTION COMPANIES AND E-COMMERCE PROJECTS SFERIS IN Q1 2013 I. EXPERT SHOWROOM CHAIN 17
Slide 18: Development of E-commerce Projects in Q1 2013
GK ACTION COMPANIES AND E-COMMERCE PROJECTS DEVELOPMENT OF E-COMMERCE PROJECTS IN Q1 2013 II. DEVELOPMENT OF ADDITIONAL PROJECTS Sferis store operations: Setting up the Mobistyle company to manage the Tablety.pl project wide range of mobile IT solutions, including smartphones, tablets, and accessori
Slide 19: Gram.pl - Key Events of Q1 2013
GK ACTION COMPANIES AND E-COMMERCE PROJECTS GRAM.PL - KEY EVENTS OF Q1 2013 RESULT: TURNOVER RELATED TO DIGITAL PRODUCTS EXCEEDED THE TURNOVER FIGURE Development of digital distribution: RELATED TO PS3 AND X360 GAMES • agreements signed with 24 digital game publishers • Over 200 titles available in
Slide 20: More Kids - Key Events of Q1 2013
GK ACTION COMPANIES AND E-COMMERCE PROJECTS MORE 4 KIDS - KEY EVENTS OF Q1 2013 has been part of GK ACTION S.A. since September 2012, selling children's accessories online About 2,000 items in the range Over 2,500 transactions per month is at the forefront of stores selling children's products Reven
Slide 21: ACTION Educational Centre
ACTION EDUCATIONAL CENTRE KEY EVENTS OF Q1 Systematic broadening of the customer base with new educational projects: management • Gaming Works end customers • Certified Secure Computer User Benefits for ACTION and the market • Sales channel education 21
Slide 22: Presentation Synopsis
PRESENTATION SYNOPSIS 1. Financial results 2. Foundations of GK ACTION 3. New growth areas 4. Publication of financial forecast 5. GK ACTION companies and e-commerce projects 6. Private labels 7. Directions of growth for GK ACTION 22
Slide 23: Private Labels: ActiveJet
PRIVATE LABELS ACTIVEJET – FURTHER GROWTH IN RECOGNITION GROWTH POTENTIAL FOR NEW, HIGH-MARGIN PRODUCT CATEGORIES EFFECT FREQUENCY OF APPEARANCE IN THE PRESS AND THE INTERNET: 25,224 IN THE 2011/12 SEASON PLN 15 MILLION ADVERTISING EQUIVALENT OF THE CLUB T- SHIRT INKS AND TONERS LED LIGHTS 23
Slide 24: Presentation Synopsis
PRESENTATION SYNOPSIS 1. Financial results 2. Foundations of GK ACTION 3. New growth areas 4. Publication of financial forecast 5. GK ACTION companies and e-commerce projects 6. Private labels 7. Directions of growth for GK ACTION 24
Slide 25: Directions of Growth for GK ACTION
DIRECTIONS OF GROWTH FOR GK ACTION Investing in core operations: increasing the logistics potential developing the portfolio and new product segments acquiring new distribution contracts gaining new suppliers geographic expansion regular expansion of the customer base more e-commerce projects invest
Slide 26: Thank You for Your Attention
Contact for media and 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 THANK YOU FOR YOUR ATTENTION 26