Slide 1: Investor Presentation
Investor Presentation March 2018
Slide 2: Company Overview
Company Overview 2
Slide 3: Company Snapshot
Company Snapshot Dicker Data is the largest Australian owned ICT distributor in Australia and New Zealand $ ASX Listed AUD $1.3B Consistent Growth Nimble and Agile 410 Staff in ANZ Listed in 2011 on the ASX Largest Australian owned ICT Dicker Data has achieved Dicker Data’s success is Strong focus o
Slide 4: Company History
Company History 1987 1993 2001 2010 2014 2015 First Toshiba First Compaq Annual revenues Relocated to Acquired Express Annual Founded distributor in distributor in exceed $100M new custom Data Holdings Revenues July 1978 Australia Australia built facility exceed $1bn • In its 40 year history, Dicker
Slide 5: Industry Recognition
Industry Recognition 22n? 5 ARN Hardware ARN Homegrown Aruba Dell EMC Distributor Distributor Top Distributor FY17 Distributor Veritas of the Year of the Year South Pacific of the Year Distributor of the Year Pacific » e a 2 = f Se ia Intel Lenovo Lenovo RSA Distributor DCG Distributor PCG Distribut
Slide 6: Proven and Stable Board and Management Team
Proven and Stable Board and Management Team David Dicker Fiona Brown Chairman and Chief Executive Officer Non-Executive Director • Founded Dicker Data • Co-Founder of Dicker Data • Has been director of the company since inception in 1978 • Involved in the business since inception in 1978 • Focuses o
Slide 7: Corporate Headlines
Corporate Headlines Capital Structure Shareholders Share Price (28 February 2018) $2.88 Founder -David Dicker 60.6m 38% Fully paid ordinary shares 160.3m Founder -Fiona Brown 54.0m 34% Options 0.0m Free Float 45.8m 29% Market Capitalisation $461.8m Cash (31 Dec 2017) $9.4m Drawn Debt (31 Dec 2017) $
Slide 8: Financial Results
Financial Results
Slide 9: Results Highlights
Results Highlights • Dicker Data has continued its recent pattern of growth in 2017, maintaining revenue growth across all business sectors and geographies. • A total of 18 new vendors were added during the year accounting for an incremental $86m in revenue. • Revenue increased by 10.2% just ahead o
Slide 10: Financial Summary
Financial Summary Financial Full Year Trends Revenue ($m) Gross Profit ($m) and Gross Profit Margin (%) 10.0% 12.0% 9.8% 9.8% 9.4% 9.1% 8.9% 10.0% 9.6% 1,387.7 9.4% 8.0% 1,306.0 119.5 123.9 1,185.5 9.2% 105.9 111.6 1,077.6 6.0% 9.0% 8.8% 4.0% 8.6% 2.0% 8.4% FY15A FY16A FY17A FY18 Forecast FY15A FY16
Slide 11: Full Year Results to 31 Dec 2017
Full Year Results to 31 Dec 2017 Key Financial Data (in $m) • Revenue finalised at $1.3 billion and in 12 months to: Dec-17 Dec-16 Variance line with our guidance, an increase of 10.2% 590.278 • Gross profit increased by 7.4% as product mix and market competition Total Revenue 1,306.0 1,185.5 10.2%
Slide 12: Sources of Profit Growth
Sources of Profit Growth 12 Sources of Profit Growth 2017 $11.2m 10 8 -$3.1m 6 4 $0.6m $3.7m $0.5m -$0.2m -$5.3m 2 0 Margin on Margin quality Variable Fixed Other Income Financing YoY revenue degredation Operating Operating Costs Operating growth Costs Costs Profit Growth 12
Slide 13: Revenue Summary
Revenue Summary Segment Size ($m) and Growth Rate (%) 22% 23% 1,011 • Hardware continues to be our largest 15% revenue category, growing steadily at 7%. 7% • Services revenue growth remains 268 strong at 15%. 7 18 • Storage as a category continues to grow organically and as we add new Hardware Servi
Slide 14: Diverse Long-Term Vendor Relationships
Diverse Long-Term Vendor Relationships Dicker Data continues to grow and diversify its vendor relationships Major Vendors over time (% of sales) 100.0% • Dicker Data has continued 10% 11% to introduce new vendors 90.0% Vendor 5 Vendor 5 23% 24% and reduce it’s reliance on 80.0% Vendor 4 Vendor 4 31%
Slide 15: New Zealand Results
New Zealand Results • Revenue finalised at $141m an increase of Key Financial Data (in $NZm) 4.3%, which included Cisco revenue until end of October. 12 months to: Dec-17 Dec-16 Variance • With market competition and a lengthy distributor review process with Cisco, profit margins abated during the y
Slide 16: Balance Sheet
Balance Sheet Net Assets (in $m) Dec-17 Dec-16 Dec-15 Dec-14 Cash and equivalents 9.4 17.5 15.8 16.4 Other current assets 295.6 269.7 280.3 215.6 • Investment in working capital has Goodwill & Intangibles 29.1 30.5 31.9 34.0 decreased further during 2017, falling Other assets 50.2 48.0 30.2 31.3 9.8
Slide 17: Cash Flow
Cash Flow Source and Application of Cash • The company finished the trading year with $17.5m Open Cash $9.4m in cash. $48.1m EBITDA • At the end of 2017 the company’s -$18.5m Net Interest & Tax investment in working capital decreased to Operating Cash $96.7m , representing an decrement in $17.9m Wor
Slide 18: Dividends
Dividends • Total dividends declared for FY17 were 16.8cps with a final dividend for FY17 paid Amount 2 March 2018 at 4.8cps. Record Date Payment Date Dividend (CPS) Type Franked • In FY18 the company intends to continue to 26-May-17 9-Jun-17 0.0400 Interim 100% streamline it’s dividend payment poli
Slide 19: 2018 Guidance and Outlook
2018 Guidance and Outlook • Projected revenue for FY18 is $1.39 billion and forecasted net profit before tax is $42.5 million • Whilst the consolidated revenue and profit growth is expected to be at 6%, the projected growth for the Australian business is maintained at over 10%. • The growth in the A
Slide 20: 2018 Opportunities
2018 Opportunities loT Our Australian-first loT Community now has 150+ members. @ Continuing to capitalise on the security opportunity e.g. NDBS. © @ Physical Security Moving into the surveillance camera market which aligns to electrical market play. Electrical Trade Continuing to build new channels
Slide 21: New Building Update
New Building Update • The development application for our new distribution centre was lodged 28 February 2018 and expected to be approved within 6 months. We therefore do not anticipate any material capital expenditure until much later in the year. • With continued focus and improvement in our worki
Slide 22: Thank You!
Thank You!
Slide 23: Further Information
Further Information Contact Information ▪ David Dicker – david.dicker@dickerdata.com.au ▪ Mary Stojcevski – mary.stojcevski@dickerdata.com.au ▪ Vladimir Mitnovetski – vlad.mitnovetski@dickerdata.com.au 23
Slide 24: 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 at 5 March 2018 unless otherwise specified. It contains selected summary information and does not purport to be all-inclusive or to contain all of t