Slide 1: Investor Update
INVESTOR UPDATE Vlad Mitnovetski COO Mary Stojcevski CFO September 2019
Slide 2: Company Overview
COMPANY OVERVIEW NUMBER 1 DISTRIBUTOR $ ASX Listed AUD $1.4b Consistent Growth Nimble and Agile 470 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 2019 First Toshiba First Compaq Annual Relocated to Listed on the Acquired Ann. revenue Launched Launched FOUNDED distributor in distributor in revenues new custom ASX Express Data exceeds $1B Australia’s Dicker Data Australia Australia exceed
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 (6 Sept 2019) $6.99 ASX: DDR Fully paid ordinary shares 161.5m 8.00 Options 0.0m 7.00 Market Capitalisation $1,129.1m 6.00 Cash (30 June 2019) 24.4m Drawn Debt (30 June 2019) 90.0m 5.00 4.00 SHAREHOLDERS 3.00 Founder -David Dicker
Slide 6: Financial Results HY19
FINANCIAL RESULTS HY19 DICKER DATA
Slide 7: Results Highlights
RESULTS HIGHLIGHTS 18.7% REVENUE INCREASE • Strong revenue growth of 18.7%, with total revenue for the half year at $852.0m. • At a country level, Australia grew revenues at 17.8% and New Zealand grew revenues at 36.1%.* 51.2% • The 10 new vendors added during the FY18 and HY19 NPBT INCREASE account
Slide 8: Financial Trends Half Year
FINANCIAL TRENDS HALF YEAR REVENUE ($M) GROSS PROFIT ($M) AND GROSS PROFIT MARGIN (%) 9.6% 10.0% 9.8% 9.1% 9.0% 9.3% 9.2% 9.1% 8.9% 852 776 718 77.3 632 674 71.7 590 595 62.5 63.6 532 546 58.1 57.1 51.1 54.8 53.5 H1 15A H2 15A H1 16A H2 16A H1 17A H2 17A H1 18A H2 18A H1 19A H1 15A H2 15A H1 16A H2
Slide 9: HY19 Results Group
HY19 RESULTS GROUP 6 months to (in $m): Jun-19 Jun-18 Variance • Revenue growth of 18.7% which is tracking ahead of our forecast for the half year. Total Revenue 851.9 717.5 18.7% • Gross profit increased by 21.5% with margins Gross Profit 77.3 63.6 21.5% firming back to longer term average levels.
Slide 10: HY19 Results New Zealand
HY19 RESULTS NEW ZEALAND • Revenue growth of 32.4% driven by the introduction 6 months to (in $NZDm): Jun-19 Jun-18 Variance of new vendors and increases in market share. • Gross profit increased by 11.6% with margins abating Total Revenue 55.3 41.8 32.4% due to competition and product mix. Gross Pr
Slide 11: HY19 Balance Sheet
HY19 BALANCE MASTERSHEET TITLE STYLE Net Assets (in $m) Jun-19 Dec-18 Ratios Jun-19 Dec-18 Cash and equivalents 24.4 6.6 Net Working Capital ($m) 133.8 121.2 Debt to Equity 1.49x 1.37x Other current assets 415.3 344.2 Debt Service Cover Ratio 11.03x 9.41x Goodwill & Intangibles 27.0 27.7 Net Tangibl
Slide 12: FY19 Guidance
FY19 GUIDANCE YTD PROFIT BEFORE TAX 60 • HY19 profit before tax finalised at $32.3m, tracking well ahead of forecast. 50 • Forecasted profit for FY19 was $51.4m. 40 Based on results for the half year the Company is confident this will be Millions 30 achieved. 20 • There are additional headcount and
Slide 13: Business Update
BUSINESS ___ UPDATE
Slide 14: IT Market and Our Strategy
IT MARKET AND OUR STRATEGY • Dicker Data is a leading Value Added Technology Distributor AUSTRALIAN IT DISTRIBUTION MARKET SHARE Other • Our speciality is servicing the mid-market and SMB 6% Westcon communities with specific focus on pre-sales 5% capabilities, value added services and emerging Tech
Slide 15: 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 16: H219 Focus
H219 FOCUS • During H119 the company launched a new division – Dicker Data Financial Services (DDFS). DDFS is a new business to address the ever growing demand for As-A-Service solutions. In H219 we will continue to work with our partners to grow this division. • Managed Service Providers are our fa
Slide 17: Our Vendors
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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 distributor for the Appointed to distribute Appointed to distribute complete range of security Automatic Identification and complete range of Kaspersky cameras and devices in AU Data Capture range of products Lab products for ANZ for ANZ Appointed as distributor Ap
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: Revenue Category Splits and Growth
REVENUE CATEGORY SPLITS AND GROWTH Hardware by Product Category Software by Billing Method HARWARE SERVICES SECURITY $4m $1m (+606%) (+10% YoY) VIRTUAL STORAGE SERVICES & SUBSCRIPTION $128m OTHER $91m $58m (+21% (+8% YoY) (+90% YoY) YoY) $852m ENDPOINTS SOFTWARE PERPETUAL $111m (+7% $671m YoY) HW &
Slide 22: Industry Recognition
INDUSTRY RECOGNITION ARN Hardware ARN Homegrown Aruba Top Distributor Citrix APJ and ANZ Dell EMC Distributor of the Year Distributor of the Year Asia Pacific Distributor of the Year Distributor of the Year FY16, FY17 and FY18 & Special Contribution Citrix APJ Operational Excellence & Partnership Fu
Slide 23: Sale of Existing Building
SALE OF EXISTING BUILDING • The Company sold its distribution centre at 230 Captain Cook Drive Kurnell on 15 August 2019. • Total consideration for the sale was $36m, and the expected profit on the sale of this asset is approximately $12m. • The Company has entered into a 2 year lease with the new o
Slide 24: New Building Update
NEW BUILDING UPDATE • Sale of existing building comes on back of DA approval for new distribution centre. • Construction tender process is underway with panel of builders invited to bid for the construction project. • Once a builder has been appointed, costs and expected timeline for capital commitm
Slide 25: Thank You
THANK YOU
Slide 26: 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 10 September 2019 unless otherwise specified. It contains selected summary information and does not purport to be all-inclusive or to contain all