Action S.A. · GPW:ACT
Action — H1 2014 Earnings Presentation
29 slides from Action's earnings presentation, 2014
Slide 1: Presentation of Results H1 2014
PRESENTATION OF RESULTS H1 2014 WE'RE AHEAD OF THE MARKET
Slide 2: Major events in H1 2014
Major events in H1 2014 2
Slide 3: Major events in H1 2014
Major events in H1 2014 GROWTH FACTORS MAJOR EVENTS Acquisition of 100% of ACTION EU shares Growth in the German market Purchase of 51% of the shares Development of B2B Distribution Contract - HP Networking and HP Storage Exports International agreement covering International expansion Poland, the C
Slide 4: Financial results for H1 2014
Financial results for H1 2014 4
Slide 5: GK ACTION Revenues: Sales dynamics H1 2014
GK ACTION Revenues SALES DYNAMICS in H1 2014 (PLN ‘000) 2 520 966 2 121 122 1 539 915 +18.9 % 1 112 156 +37.7% +38.5% H1 2011 H1 2012 H1 2013 H1 2014 5
Slide 6: GK ACTION Revenues: Sales dynamics Q2 2014
GK ACTION Revenues SALES DYNAMICS in Q2 2014 (PLN '000) 1 197 370 989 212 752 163 +21.0% 572 061 +31.5% +31.5% Q2 2011 Q2 2012 Q2 2013 Q2 2014 6
Slide 7: GK ACTION Revenues: Net profit dynamics H1 2014
GK ACTION Revenues NET PROFIT DYNAMICS 33 171 in H1 2014 (PLN ‘000) 28 370 20 452 +16.9% 17 285 +38.7% +18.3% H1 2011 H1 2012 H1 2013 H1 2014 7
Slide 8: GK ACTION Revenues: Net profit dynamics Q2 2014
GK ACTION Revenues NET PROFIT DYNAMICS 15 849 in Q2 2014 (PLN '000) 13 343 9 343 8 780 +18.8% +42.8% +6.4% Q2 2011 Q2 2012 Q2 2013 Q2 2014 8
Slide 9: Selected financial data of GK ACTION
Selected financial data of GK ACTION Q2 2013 Q2 2014 Change (%) H1 2013 H1 2014 Change (%) Sales revenue 989 212 1 197 370 21.0% 2 121 122 2 520 966 18.9% Gross profit on sales 71 605 76 289 6.5% 129 205 153 037 18.4% Gross margin on sales 7.2% 6.4% -0.8 pp 6.1% 6.1% Sales and marketing costs -45 26
Slide 10: Cash flows
Cash flows H1 2013 H1 2014 Net cash flows from operating activity 85 838 -57 117 Net cash flows from investment activities -7 202 -29 514 Net cash flows from financial activities -72 796 65 828 Q2 2013 Q2 2014 Net cash flows from operating activity 55 737 32 627 Net cash flows from investment activi
Slide 11: Cash conversion cycle
Cash conversion cycle 30.06.2013 30.06.2014 Inventory turnover 28 33 Flow of receivables 36 31 Repayment of liabilities 51 45 Cash conversion 14 18 11
Slide 12: Meeting the GK ACTION forecast
Meeting the GK ACTION forecast Meeting the revenue forecast in H1 2014 (PLN ‘000) 46.2 % Meeting forecasts by GK ACTION in previous years 2012 2013 43.8 % 44.7 % 12
Slide 13: GK ACTION companies and projects in H1 2014
GK ACTION companies and projects in H1 2014 13
Slide 14: Sales development of audio/video appliances & household equipment
Sales development of audio/video appliances & household equipment PARTNERSHIP PROGRAM EXPERTS IN AUDIO/VIDEO APPLIANCES & HOUSEHOLD EQUIPMENT More than 76% increase in sales 210 210 partner stores Increase in the number of stores stores 150 stores 30.06.2014 30.06.2013 More than 43% sales growth in
Slide 15: Tenders and corporate sales
Tenders and corporate sales TENDERS Ostrowiec Świętokrzyski Poznan City Hall Municipality European Organization for Nuclear Research Border Guard Hospital in Bielsko-Biała The total value of tenders awarded in H1 2014 PLN 50 million 15
Slide 16: Private labels - Actina
Private labels - Actina PRESTIGIOUS IMPLEMENTATION, TENDERS Further implementation in the European Organization for Nuclear Research in H1 2014 for more than $2 million More than 3 200 Actina servers at CERN since 2006. 16
Slide 17: ACTION Enterprise
ACTION Enterprise DEVELOPMENT OF ACTION ENTERPRISE Specialized division of advanced design solutions for corporate customers Over 62% turnover increase (H1 2013 vs. H1 2014) More than 750 unique partners Increase in the no. of customers: 1054 1182 30.06.2013 30.06.2014 Extension of engineering sales
Slide 18: New business in GK ACTION: development of mobile games
New business in GK ACTION DEVELOPMENT OF MOBILE GAMES More than 30 highly skilled professionals from the IT and gaming industry First alpha tests in Q2 2014: 1 Strategic game inspired by Nordic and Slavic mythologies 2 Casual game with simple rules 18
Slide 19: International expansion
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Slide 20: Three pillars of GK ACTION international expansion
Three pillars of GK ACTION international expansion 1 2 3 Export 44 countries of the world 20
Slide 21: ACTION Europe GmbH
ACTION Europe GmbH GROWTH OF THE GERMAN DISTRIBUTOR Acquisition of 100% of shares by ACTION S.A. Steadily increasing the number of customers: 4 907 unique customers more than 2 200 customers served per month Turnover: € 63 million - Turnover in H1 2014 € 138 million - plan for 2014 Important distrib
Slide 22: Lapado
Lapado ACQUISITION OF 51% OF LAPADO SHARES Turnover: € 37 million of turnover in H1 2014. Target for 2014: € 100 million Broad customer database: X 217 938 Product groups: IT, audio/video appliances & household equipment, toys, accessories for children, office products and others 22
Slide 23: Export
EXPORT GRADUAL GROWTH OF EXPORTS More than 60 product groups Exports to 422 customers in H1 2014. Exports to 44 countries 23
Slide 24: Private labels
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Slide 25: Private labels - ActiveJet, Actina
Private labels - ActiveJet, Actina STRENGTHENING THE LEADING POSITION GEOGRAPHICAL DIVERSIFICATION EXPERT BRAND ECONOMY BRAND Gradual expansion of the product portfolio Most popular consumer brands: Intensive development on foreign markets: Germany, Slovakia, Slovenia, Greece, Lithuania, Estonia, Ru
Slide 26: Directions of growth
Directions of growth 26
Slide 27: Expansion of the logistics centre
Expansion of the logistics centre SIGNIFICANT INCREASE IN WAREHOUSE FIRST REPLENISHMENT BY DECEMBER 2014 PERFORMANCE Warehouse 32 000 M² surface area 52 000 M² 45 000 Warehouse 100 000 packets per day Throughput packets per day 18 000 Number of items 50 000 SKU SKU 27
Slide 28: Gradual growth in activities
Gradual growth in activities DEVELOPMENT IN POLAND audio/video VMI logistics Game e-commerce Toys appliances & projects development household equipment DEVELOPMENT IN EUROPE New Logistics Broadening the New product distribution operations from Private labels customer categories contracts Poland data
Slide 29: Thank You
Thank You Thank You Reliable partner: