Slide 1: Investor Update
INVESTOR UPDATE Vlad Mitnovetski COO Mary Stojcevski CFO March 2019
Slide 2: Company Overview
COMPANY OVERVIEW NUMBER 1 DISTRIBUTOR $ ASX Listed AUD $1.4b Consistent Growth Nimble and Agile 442 Staff in ANZ Dicker Data listed on the Dicker Data is the largest Dicker Data has achieved Dicker Data’s success is built Dicker Data has a strong ASX in 2011. Australian owned distributor consistent
Slide 3: Company History
COMPANY HISTORY 1987 1993 2000 2010 2011 2014 2015 2017 First Toshiba First Compaq Annual Relocated to Listed on the Acquired Ann. Launched FOUNDED distributor in distributor in revenues new custom ASX Express Data revenue Australia’s JULY 1978 Australia Australia exceed $100M built facility (ASX: D
Slide 4: Executive Team
David Dicker Fiona Brown Vlad Mitnovetski Mary Stojcevski Ian Welch Michael Demetre Chairman and CEO Non-Executive Director COO CFO CIO Logistics Director Founder Founder EXECUTIVE TEAM
Slide 5: Corporate Headlines
CORPORATE HEADLINES CAPITAL STRUCTURE 1 YEAR SHARE PRICE Share Price (1 March 2019) $3.41 ASX: DDR 3.6 Fully paid ordinary shares 160.7m 3.4 Options 0.0m 3.2 Market Capitalisation $548.0m Cash (31 Dec 2018) $6.6m 3 Drawn Debt (31 Dec 2018) $109.6m 2.8 2.6 2.4 SHAREHOLDERS 2.2 Founder -David Dicker 6
Slide 6: Financial Results
FINANCIAL RESULTS DICKER DATA
Slide 7: Results Highlights
RESULTS HIGHLIGHTS 14.4% REVENUE INCREASE • Revenue for FY18 at $1,493.6m, a growth of 14.4% • Revenue CAGR at 11.5% and EBTIDA CAGR at 8.8% in the last 16.0% 4 years since the Express Data acquisition. NPBT INCREASE • The 18 new vendors added during the FY17 and FY18 accounted for incremental reven
Slide 8: Financial Trends Full Year
FINANCIAL TRENDS FULL YEAR REVENUE ($M) GROSS PROFIT ($M) AND GROSS PROFIT MARGIN (%) 10.0% 180.0 9.1% 9.8% 9.8% 9.4% 9.1% 9.0% 9.1% 1,650.0 9.6% 130.0 150.8 7.0% 1,493.6 135.3 1,306.0 9.4% 119.5 5.0% 1,185.5 105.9 111.6 1,077.6 9.2% 80.0 3.0% 9.0% 1.0% 8.8% 30.0 -1.0% 8.6% FY15A FY16A FY17A FY18A F
Slide 9: FY18 Results Group
FY18 RESULTS GROUP • Revenue growth of 14.4% and in line with our guidance. 12 MONTHS TO: DEC-18 DEC-17 VARIANCE • Gross profit increased by 12.4% as we experienced a Total Revenue 1,493.6 1,306.0 14.4% slight softening in margin quality due to product mix. Gross Profit 132.4 117.8 12.4% • Operating
Slide 10: FY18 Results PBT Waterfall
FY18 RESULTS PBT WATERFALL SOURCES OF PROFIT GROWTH IN 2018 18 $16.8m 16 14 -$2.3m 12 10 8 $1.1m $6.4m 6 -$0.2m -$9.0m -$0.0m 4 2 0 Margin on revenue Margin quality Variable Operating Fixed Operating Other Income Financing Costs YoY Operating growth degredation Costs Costs Profit Growth
Slide 11: FY18 Balance Sheet
FY18 BALANCE SHEET NET ASSETS (IN $M) DEC-18 DEC-17 Cash and equivalents 6.6 9.4 • The company has significantly increased working Other current assets 344.2 295.6 capital investment as it onboards new vendors. Goodwill & Intangibles 27.7 29.1 • This has resulted in a cyclical increase in net debt.
Slide 12: FY18 Cash Flow
FY18 CASH FLOW SOURCE AND APPLICATION OF CASH $9.4m Open Cash $54.7m EBITDA -$19.3m Net Interest & Tax -$24.7m Working Capital Movement $0.3m Other -$0.7m Capital Spending -$28.2m Payment of Dividends $15.0m Drawdown of S/T Borrowings $6.6m Close Cash Application Source
Slide 13: FY19 Guidance
FY19 GUIDANCE YTD PROFIT BEFORE TAX 60 • For FY19 profit before tax 50 forecast at $51.4m. 40 Millions 30 • Maintaining our recent track 20 record of +10% growth 10 - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2018 2019 Projection
Slide 14: Business Update
BUSINESS __ UPDATE
Slide 15: IT Market and Our Strategy
IT MARKET AND OUR STRATEGY • Dicker Data is a leading Value Added Distributor AUSTRALIAN IT DISTRIBUTION MARKET SHARE Other • Our speciality is servicing the mid-market and SMB Westcon 6% communities with specific focus on pre-sales 5% capabilities, value added services and emerging Tech Data hybrid
Slide 16: Opportunities 2019
OPPORTUNITIES 2019 INTERNET OF THINGS SECURITY PHYSICAL SECURITY EDGE COMPUTING Our Australian-first IoT Continuing to capitalise Moving into the surveillance Delivering technologies that Community now has on the security camera market which aligns enable intelligent edge 150+ members. opportunity e
Slide 17: Our Vendors
OUR VENDORS technologies erwin plantronics. Q FUJIFILM LINCSYS plusopti® skykick aruba sthtettne cisco FUJITSU Q tnreractive’ logitech (>) printix SONY make.believe GIGABYTE JUNIPer Kensington dicron HE Microsoft © purestonace (symantec. ¥ Trustwave {\AUTODESK. HITACHI B kingston mist Quest Targus ~
Slide 18: 2018 Vendor Additions
2018 VENDOR ADDITIONS Appointed as Sole Distributor for Citrix Reseller Business (AU) Appointed as distributor for the Appointed as distributor for the Appointed as distributor for the entire Commvault portfolio entire Dell EMC product Kyocera A3 and A4 Ecosys Print Appointed as a distributor for (A
Slide 19: 2019 Vendor Additions
2019 VENDOR ADDITIONS Appointed as the exclusive Appointed as a distributor of distributor for the Lenovo the NNN Co to bolster our IoT Datacentre Group (DCG) in offerings New Zealand
Slide 20: Diverse Long-Term Vendor Relationships
DIVERSE LONG-TERM VENDOR RELATIONSHIPS MAJOR VENDORS OVER TIME (% OF SALES) 100.0% • Dicker Data has continued to introduce 10% 11% 90.0% 23% new vendors to reduce reliance on any Vendor 5 24% single vendor Vendor 5 Vendor 4 31% 80.0% Vendor 4 39% 43% Vendor 3 Vendor 3 Vendor 5 Vendor 5 • 6 new vend
Slide 21: Product Category Splits and Growth
PRODUCT CATEGORY SPLITS AND GROWTH SOFTWARE SECURITY 3% (+4% YoY) SOFTWARE 18% ENDPOINTS (+21% YoY) 30% (+18% YoY) HARWARE SECURITY 1% (+47% YoY) STORAGE 8% (+22% YoY) PERIPHERALS 10% (+16% YoY) SERVERS & NETWORKING 29% (+19% YoY) PRINT 1% (+47% YoY)
Slide 22: Industry Recognition
INDUSTRY RECOGNITION Aruba Top Distributor Citrix APJ and ANZ Dell EMC ARN Hardware ARN Homegrown Distributor of the Year Asia Pacific Distributor of the Year Distributor of the Year Distributor of the Year & Special Contribution FY16, FY17 and FY18 Citrix APJ Operational Excellence & Partnership HP
Slide 23: Building Update
BUILDING UPDATE • DA lodged as a State Significant Development last year with NSW Department of Planning and no major issues with the Department or Council based on feedback to date, therefore expect to have the DA approved as lodged • DA still in progress – now expected to be approved in a couple o
Slide 24: Thank You
THANK YOU
Slide 25: 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 4 March 2019 unless otherwise specified. It contains selected summary information and does not purport to be all-inclusive or to contain all of t