Action S.A. · GPW:ACT
Action — Q3 2012 Earnings Presentation
20 slides from Action's earnings presentation, Nov 15, 2012
Slide 1: Presentation of Financial Results July – September 2012
PRESENTATION OF FINANCIAL RESULTS July – September 2012 Warsaw, November 15th 2012
Slide 2: Presentation Outline
THIRD QUARTER 2012 FOR GK ACTION PRESENTATION OUTLINE 1. Financial results 2. Level of financial forecast target achievement 3. Achievements of GK ACTION companies and own brands 4. Current changes on the electronics market 5. GK ACTION’s directions of development 2
Slide 3: Sales Dynamics in 3rd Quarter
FINANCIAL RESULTS SALES DYNAMICS IN 3RD QUARTER Record sales volume in 3rd quarter 2012 Sustained growth tendency in recent years Sales dynamics (PLN K) + 23.6% +33.7% 3
Slide 4: Growth Elements
FINANCIAL RESULTS GROWTH ELEMENTS Effect of performing HP and LENOVO distribution agreements Offer extension by adding mobile products (phones and tablets) Contract performance in TELCO channel Development of base and sales to export customers Substantial growth of sales to sub-distributors Growth o
Slide 5: Growth of Operating Profit and Net Profit in 3rd Quarter
FINANCIAL RESULTS GROWTH OF OPERATING PROFIT AND NET PROFIT IN 3RD QUARTER Operating profit (PLN K) Net profit (PLN K) +16.8% +9.0% 5
Slide 6: GK Action's Profit and Loss Account
FINANCIAL RESULTS GK ACTION’S PROFIT AND LOSS ACCOUNT 2011_Q3 2012_Q3 change 2011_Q3 YTD 2012_Q3 YTD change Sales revenues 669,308 827,372 23.6% 1,781,464 2,367,287 32.9% Gross profit on sales 46,237 53,616 16% 125,453 158,302 26.2% Gross sales margin 6.9% 6.5% - 0.4 p. p. 7.0% 6.7% - 0.3 p. p. Sale
Slide 7: Non-Recurring Items Removed
FINANCIAL RESULTS NON-RECURRING ITEMS REMOVED Adjusted net profit (PLN K) * - Elements adjusting the result: 1. Legia sponsorship (2012) – PLN 2,755 K 2. MSHP (2012) – PLN 1,215 K +43% 3. Sales of A.pl assets (2011) – PLN 2,613 K 7
Slide 8: Presentation Outline
THIRD QUARTER 2012 FOR GK ACTION PRESENTATION OUTLINE 1. Financial results 2. Level of financial forecast target achievement 3. Achievements of GK ACTION companies and own brands 4. Current changes on the electronics market 5. GK ACTION’s directions of development 8
Slide 9: High Ratio of Forecast Target Achievement
LEVEL OF FINANCIAL FORECAST TARGET ACHIEVEMENT HIGH RATIO OF FORECAST TARGET ACHIEVEMENT Level of target achievement by GK ACTION and sales revenues Level of target achievement by GK ACTION and net profit of industry companies in 2011 of industry companies in 2011 Revenues on Net profit sales Q4 201
Slide 10: Presentation Outline
THIRD QUARTER 2012 FOR GK ACTION PRESENTATION OUTLINE 1. Financial results 2. Level of financial forecast target achievement 3. Achievements of GK ACTION companies and own brands 4. Current changes on the electronics market 5. GK ACTION’s directions of development 10
Slide 11: Achievements of GK Action Companies and Own Brands: Sferis
ACHIEVEMENTS OF GK ACTION COMPANIES AND OWN BRANDS SFERIS 189 retail outlets including: – 103 partner shops (versus 47 at the end of Q3 2011) – 30 shops of our own (versus 34 at the end of Q3 2011) – 56 retail stands (versus 58 at the end of Q3 2011) Purchase of one of the best websites specialising
Slide 12: Achievements of GK Action Companies and Own Brands: Gram.pl
ACHIEVEMENTS OF GK ACTION COMPANIES AND OWN BRANDS GRAM.PL • Development of digital distribution department – developing the position of the market leader - signing digital distribution agreements with the following companies: Electronic Arts and Techland - launch of digital system for games distrib
Slide 13: Achievements of GK Action Companies and Own Brands: ActiveJet
ACHIEVEMENTS OF GK ACTION COMPANIES AND OWN BRANDS ACTIVEJET • Further sales increases for ACTIVEJET and ACTIS brands • Taking advantage of Legia Warszawa sponsorship to increase brand awareness in order to develop additional product groups • Continuation of the strategy of client-brand trust develo
Slide 14: Achievements of GK Action Companies and Own Brands
ACHIEVEMENTS OF GK ACTION COMPANIES AND OWN BRANDS f f
Slide 15: Presentation Outline
THIRD QUARTER 2012 FOR GK ACTION PRESENTATION OUTLINE 1. Financial results 2. Level of financial forecast target achievement 3. Achievements of GK ACTION companies and own brands 4. Current changes on the electronics market 5. GK ACTION’s directions of development 15
Slide 16: Current Changes on the Electronics Market
CURRENT CHANGES ON THE ELECTRONICS MARKET • Continued decrease of profit margins: - strong competition - change in the characteristics of products sold - dynamic increase of online sales resulting in retail price competition - change of sales channels • Market domination by 3 main stock exchange pla
Slide 17: Presentation Outline
THIRD QUARTER 2012 FOR GK ACTION GROUP PRESENTATION OUTLINE 1. Financial results 2. Level of financial forecast target achievement 3. Achievements of GK ACTION companies and own brands 4. Current changes on the electronics market 5. GK ACTION’s directions of development 17
Slide 18: GK Action's Directions of Development
GK ACTION’S DIRECTIONS OF DEVELOPMENT Acquiring new distribution contracts and developing those signed in recent quarters Increasing activity in order to find new suppliers for various product groups Further expansion on foreign markets and searching for new customers abroad Maximising business proc
Slide 19: GK Action's Directions of Development: Sferis, Gram, Education Centre
GK ACTION’S DIRECTIONS OF DEVELOPMENT SFERIS - continuation of SFERIS development as an operator of online sales platforms - product sales development with regard to products from different industries to satisfy the Group’s needs GRAM - achieving the position of digital distribution leader ACTION ED
Slide 20: Thank You for Your Attention
THANK YOU FOR YOUR ATTENTION Contact for media and capital market representatives Anna Bielińska – Corporate Communications Director tel.: 22 332 16 96, e-mail: anna.bielinska@action.pl Dominika Lenkowska-Piechocka – Martis CONSULTING Agency tel.: 22 244 57 09, e-mail: dominika.lenkowska@mc.com.pl 2