Dicker Data Limited · ASX:DDR

Dicker Data — H1 2023 Earnings Presentation

27 slides from Dicker Data's earnings presentation, Aug 30, 2023

  1. Slide 1: HY23 Results – August 2023

    HY23 RESULTS – AUGUST 2023 WWW.DICKERDATA.COM.AU

  2. Slide 2: Agenda

    AGENDA • Welcome • Interim Financial Results • Business Update • Strategy and Outlook • Questions 2

  3. Slide 3: Welcome

    WELCOME 3

  4. Slide 4: Interim Financial Results HY 2023

    INTERIM FINANCIAL RESULTS HY 2023 4

  5. Slide 5: HY23 Highlights

    HY23 HIGHLIGHTS 7,857 2,057 Active AU Active NZ $1.6b $1.1b Partners Partners +8% HoH +92% HoH Gross Sales Statutory Revenue Up 9.4% HoH Up 5.3% HoH $70.6m EBITDA* $54.9m Net Operating Profit Before Tax* Diversity & Hardware Inclusion Distributor of Up 15.4% HoH Up 6.0% HoH Champion the Year 2021, 2

  6. Slide 6: Financial Trends – HY23

    FINANCIAL TRENDS – HY23 GROSS SALES ($m)* GROSS PROFIT ($m) & GROSS PROFIT MARGIN (%)* 9.6% 9.6% 9.3% 9.2% 8.8% 9.5% 9.4% 10.0% 1645 1596 150.0 1415 1459 156 151 8.0% 100.0 131 128 6.0% 1006 994 1069 96 95 100 4.0% 50.0 2.0% – 0.0% H1 20A H2 20A H1 21A H2 21A H1 22A H2 22A H1 23A H1 20A H2 20A H1 21

  7. Slide 7: HY23 Change in Revenue Presentation

    HY23 CHANGE IN REVENUE PRESENTATION 6 months ($m) Jun-23 Jun-22 Increase Gross Sales 1,596.4 1,459.4 9.4% • The Company undertook a detailed review of new and updated software agreements to reassess if the Company is acting as principal Gross Profit 150.7 128.0 17.7% or agent in the resale of softwa

  8. Slide 8: HY23 Group Results

    HY23 GROUP RESULTS 6 months ($m) Jun-23 Jun-22 Increase Statutory Revenue 1,107.9 1052.0 5.3% • Increase in gross profit resulting in EBITDA growth of 15.4% at $70.6m, up from $61.2 in pcp. Gross Profit 150.7 128.0 17.7% • Operating costs* increased by 23.3% in HY22 as the company took on the full p

  9. Slide 9: HY23 Balance Sheet

    HY23​ Net Assets (in $m) Jun-23 Dec-22 BALANCE SHEET​ Cash and equivalents 29.2 12.2 Trade and other receivables 562.6 581.8 Inventory 252.2 261.7 Other current assets 1.3 - Total current assets 845.3 855.7 • The Company has maintained its working capital discipline as it PP&E 93.4 87.6 continues to

  10. Slide 10: Kurnell Warehouse Extension

    KURNELL WAREHOUSE EXTENSION • Stage 2 warehouse expansion works commenced in Q4 2022 and construction is now completed other than fit out and warehouse racking which is scheduled to be installed in the coming weeks. • The new warehouse will be internally connected to the existing warehouse, enabling

  11. Slide 11: Business Update

    BUSINESS​ UPDATE 11

  12. Slide 12: Market Update

    MARKET UPDATE The first six months of 2023 saw changes in the market dynamics as the supply chain continued to improve and particular market segments rebounded DEVICE DATA CENTRE DIVERSE RANGE OF MARKET INFRASTRUCTURE & TECHNOLOGY • Demand for devices has decreased NETWORKING • The diverse technolog

  13. Slide 13: DAS Acquisition Update

    DAS ACQUISITION UPDATE • Acquisition of Hills Security and IT division completed May 2022 and was re-branded as Dicker Data Access and Surveillance (DAS). • The business was fully integrated in FY22 and is now focused on deriving maximum growth and profitability from the new division, delivering $73

  14. Slide 14: Connect Acquisition Update

    CONNECT ACQUISITION UPDATE • Capitalising on the security market convergence, we completed the acquisition of Connect Security Products Ltd in New Zealand in March 2023. This acquisition provides entry into the access and surveillance market in New Zealand. • Connect has been integrated into the Dic

  15. Slide 15: 2023 ANZ Vendor Additions

    2023 ANZ VENDOR ADDITIONS CLOUDFLARE Cyberecurity solutions to enable a safer online environment while delivering a better internet for everyone. Protects against online threats and delivers higher speed internet solutions for businesses of all sizes. NETAPP A global, cloud-led, data-centric softwar

  16. Slide 16: ANZ Vendor Portfolio

    ANZ VENDOR PORTFOLIO ATDECE:. intel. Acronis ATEN caren | atamasren # fourines Qmrercrne! logitech ontop RSA Oswann ViewSonic ta alula @Coudiocodes Croncesowe DeLL FUJiFILM AMDa” AAUTODESK vtfiadie cisco. DICKER Fujitsu Piompcoue dicron Qrevvcoes SAMSUNG ANKER GIGABYTE™ Juniper HE Microsoft @ pclocs

  17. Slide 17: Industry Recognition

    INDUSTRY RECOGNITION • 2021, 2022 and 2023 Diversity & Inclusion Champion • Hardware Distributor of the Year – 10TH CONSECUTIVE YEAR • Channel Choice – Distributor of the Year • Large Distributor of the Year • Channel Champion – Sustainability • National Exhibition of the Year – TechX • NSW Exhibiti

  18. Slide 18: IT Market and Our Strategy

    Other 12% IT MARKET AND Westcon 7% OUR STRATEGY Tech Data Dicker Data 4% Arrow 35% AUSTRALIA 3% Corporate, Commercial and Enterprise only Leader • We have continued to grow our share of both the Australian 7% Ingram Synnex and New Zealand IT markets, commanding a dominant Micro 15% number one positi

  19. Slide 19: Revenue Category

    Splits and growth REVENUE CATEGORY *Representative of underlying gross sales only, excluding other revenue. All growth %'s are versus H1, 2022. Software is becoming an increasing proportion of underlying gross sales, driven by high growth in subscription and renewable revenue Access Control & Survei

  20. Slide 20: Long-Term Vendor Relationships

    MAJOR VENDOR CONCENTRATION LONG-TERM VENDOR % of sales RELATIONSHIPS 100.0% 10% 11% 90.0% Vendor 5 Vendor 5 23% 24% Vendor 4 31% • Dicker Data has continued to introduce new vendors and 80.0% Vendor 4 39% 43% 43% expand the product offerings of existing vendors to Vendor 3 Vendor 5 Vendor 5 49% 51%

  21. Slide 21: Strategy & Outlook

    STRATEGY & OUTLOOK 21

  22. Slide 22: 2023 Opportunities

    2023 OPPORTUNITIES​ CYBERSECURITY SOFTWARE MULTICLOUD HYBRID IT SMART OFFICE PRO AV & UNIFIED DATA CENTRE ENTERPRISE ACCESS AND MARKET COMMUNICATIONS INFRASTRUCTURE NETWORKING SURVEILLANCE CONVERGENCE TRENDS 22

  23. Slide 23: 2023 Focus

    2023 FOCUS​ NEW ZEALAND Leveraging the relationships and strengths of the Australian operation to introduce more brands and technologies to our New Zealand business. Accelerating the Company’s growth in the New Zealand market through a strategic focus on expanding our lines of business with existing

  24. Slide 24: 2023 Focus

    2023 FOCUS​ CYBERSECURITY Cybersecurity is at the top of the agenda for every organisation in Australia and New Zealand. The Company has made several strategic vendor appointments to address the cybersecurity opportunity, with plans to further expand our range in FY23. The complexity of cybersecurit

  25. Slide 25: Questions?

    QUESTIONS? 25

  26. Slide 26: Thank You

    26 THANK YOU HHS Mh Vy HT Uf MUA i

  27. 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 of 30 August 2023 unless otherwise specified. It contains selected summary information and does not purport to be all-inclusive or to contain all of

Dicker Data — H1 2023 Earnings Presentation on 6ix