Slide 1: Annual General Meeting 2023
For personal use only ANNUAL GENERAL MEETING 2023 WWW.DICKERDATA.COM.AU
Slide 2: Agenda
AGENDA For personal use only 1. Welcome Note 2. Chairman's Address 3. Full Year Results 4. Company Update 5. Questions 6. Voting 2
Slide 3: Welcome & Chairman's Address
For personal use only WELCOME & CHAIRMAN’S ADDRESS 3
Slide 4: Board of Directors
BOARD OF DIRECTORS For personal use only David Dicker Mary Stojcevski Vlad Mitnovetski Ian Welch Founder, Chairman and Executive Director and Executive Director and Executive Director, Chief Information Chief Executive Officer Chief Financial Officer Chief Operating Officer Officer and Director of O
Slide 5: Financial Update
For personal use only UPDATE FINANCIAL 5
Slide 6: 2022 Highlights
2022 Launched Dicker Access and HIGHLIGHTS Surveillance (DAS) in the Australian market For personal use only 8,200 2,000 Active AU Active NZ $3.1b $129.8m $743.9m Partners Partners Total Revenue EBITDA Recurring Revenue Up 25.0% YOY Up 9.4% YOY Up +42.5% YOY Construction of warehouse expansion comme
Slide 7: Financial Trends – FY22
FINANCIAL TRENDS – FY22 GROSS PROFIT ($m) & For personal use only GROSS PROFIT MARGIN (%) 8.9% 9.0% 9.6% 9.3% 9.1% REVENUE ($m) 300.0 9.0% 250.0 7.0% 200.0 5.0% 150.0 3.0% 283.7 100.0 230.3 1.0% 3,104.4 191.4 132.4 158.4 2,484.5 50.0 -1.0% 1,761.3* 2,000.1 1,493.6 – -3.0% FY18A FY19A FY20A FY21A FY2
Slide 8: FY22 Results: Consolidated Group
FY22 RESULTS CONSOLIDATED GROUP 12 months ($m) Dec-22 Dec-21 Change For personal use only Total Revenue 3,104.4 2,484.5 +25.0% • Revenue growth for the Group of 25.0%. • Recurring software revenue grew 42.5% to Gross Profit 283.7 230.3 +23.2% $743.9m. Gross Margin 9.1% 9.3% • Gross profit margin sl
Slide 9: FY22 Results: Australia
FY22 RESULTS AUSTRALIA 12 months ($m) Dec-22 Dec-21 Change For personal use only Total Revenue 2,554.7 2,157.4 +18.4% • Revenue growth for Australia of 18.4%. • Gross profit margins increased to 9.7% compared Gross Profit 247.7 205.5 +20.5% to FY21 with the early signs of supply normalisation and d
Slide 10: FY22 Results: New Zealand
FY22 RESULTS NEW ZEALAND 12 months ($NZD) Dec-22 Dec-21 Change For personal use only Total Revenue 601.5 345.5 +74.1% • Revenue growth of 74.1% with the full year contribution of the Exeed business, which was fully Gross Profit 39.3 26.3 +49.4% integrated by second half of FY22 • The introduction of
Slide 11: Balance Sheet
FY22 Net Assets (in $m) Cash and equivalents Dec-22 12.3 Dec-21 7.4 BALANCE SHEET Accounts receivable 581.8 455.5 Inventory 261.7 201.3 For personal use only Total current assets 855.7 664.2 PP&E, net 87.6 82.3 The Company has increased its working capital investment as a result of Goodwill & Intan
Slide 12: Cash Flow
Source and Application of Cash FY22 CASH FLOW Open Cash $7.4m For personal use only EBITDA $129.8m Net Interest & Tax -$53.0m Hills Acquisition -$21.3m Working Capital Movement -$80.0m Capital Expenditure -$11.0m Payment of Dividends -$91.3m Drawdown from Financing Facilites $61.5m Share Issue $70.2
Slide 13: Dividends
DIVIDENDS For personal use only • The FY22 dividend of 41.5 cps presents a Payment Dividend Amount decrease of 1.2% down from 42.0 cps in Type Date (CPS) Franked FY21. • Dividends include a final dividend for FY22 01-Jun-22 13.0 Interim 100% that was paid on 1 March 2023 at 2.5 cps. • In FY23 the Co
Slide 14: Q123 Group Results
Q123 GROUP RESULTS For personal use only 3 months ($m) Mar-23 Mar-22 Increase • The increase in revenue is partially attributed to full quarter contribution of the Hills acquisition (now Total Revenue 772.3 673.6 14.7% DAS Division) not being in the comparative period, with the balance of growth (+
Slide 15: Kurnell Warehouse Extension
KURNELL WAREHOUSE EXTENSION For personal use only • Stage 2 warehouse expansion works commenced in Q4 2022 and is expected to be completed in the second half of 2023, representing a further 70% increase on Stage 1 in warehouse capacity. • The new warehouse will be internally connected to the existin
Slide 16: DAS Acquisition Update
DAS ACQUISITION UPDATE For personal use only • Acquisition of Hills Security and IT division completed May 2022 and was re-branded as Dicker Data Access and Surveillance (DAS). • The business was fully integrated in FY22 and is now focused on deriving maximum growth and profitability from the new di
Slide 17: Connect Acquisition Update
CONNECT ACQUISITION UPDATE For personal use only • Capitalising on the security market convergence, we completed the acquisition of Connect Security Products Ltd in New Zealand in March 2023. This acquisition provides entry into the access and surveillance market in New Zealand. • The business has b
Slide 18: Business Update
For personal use only UPDATE BUSINESS 18
Slide 19: Market Challenges
MARKET CHALLENGES For personal use only Despite the top three market challenges faced in 2022, Dicker Data has successfully navigated the changing dynamics. INCREASED PRESSURE CHIP SHORTAGES LOGISTICS ON WORKING CAPITAL • Strategic investment in holding CONSTRAINTS • Rising interest rates. the right
Slide 20: IT Market and Our Strategy
Other IT MARKET AND Westcon 12% OUR STRATEGY 7% Tech Data 4% Dicker Data AUSTRALIA For personal use only 35% Arrow Corporate, Commercial 3% and Enterprise only Leader • We have continued to grow our share of both the 7% Ingram Australian and New Zealand IT market, commanding a Micro Synnex 15% domin
Slide 21: ANZ Vendor Portfolio
ANZ VENDOR PORTFOLIO For personal use only 21
Slide 22: Industry Recognition
INDUSTRY RECOGNITION For personal use only APC DELL HARVEY IT ENGINE JUNIPER LENOVO Distributor of the TECHNOLOGIES NORMAN’S LIMITED NETWORKS Top Distribution Year - NZ Distributor of the Distributor of the Supplier of the Partner of the Year Growth of the Year Year - APJ Year - NZ Year - NZ - APAC
Slide 23: 2022 Vendor Additions
2022 VENDOR ADDITIONS For personal use only • The Company focused much of 2022 consolidating the customer and vendor relationships it acquired through the addition of the Exeed and Hills businesses. • The former Exeed business added 60+ vendors that were integrated across various business units and
Slide 24: 2022 & 2023 ANZ Vendor Additions
2022 & 2023 ANZ VENDOR ADDITIONS Sole distributor in Australia Sole distributor in Australia & NZ For personal use only ARMIS BLANCCO CLOUDFLARE CYBERAWARE DRAGONFLY EATON TECHNOLOGIES ECOFLOW IMOU NETGEAR PHILIPS MONITORS WATCHGUARD YEALINK 24
Slide 25: Long-Term Vendor Relationships
LONG-TERM VENDOR MAJOR VENDOR CONCENTRATION % of sales RELATIONSHIPS 100.0% 10% 11% For personal use only 90.0% Vendor 5 Vendor 5 23% 24% Vendor 4 31% 80.0% Vendor 4 39% 43% 43% Vendor 3 Vendor 5 Vendor 5 49% 51% 52% • Dicker Data has continued to introduce new 70.0% Vendor 3 Vendor 4 Vendor 4 vendo
Slide 26: Revenue Category
REVENUE CATEGORY *YoY comparative includes $34m Revenue reclassified Splits and growth as PC'S (from Print) in prior year number. For personal use only Services $12m AV/UC +8.3% YoY Perpetual $144m $70m +20.8 YoY -4.4% YoY Networking $333m Consumer +11.6% YoY Peripherals $299m HW & Virtual Servers &
Slide 27: 2023 Opportunities
2023 OPPORTUNITIES For personal use only CYBERSECURITY SOFTWARE MULTICLOUD HYBRID IT SMART OFFICE PRO AV & UNIFIED DATACENTRE ENTERPRISE ACCESS AND MARKET COMMUNICATIONS INFRASTRUCTURE NETWORKING SURVEILLANCE CONVERGENCE TRENDS 27
Slide 28: 2023 Focus: New Zealand and DAS
2023 FOCUS For personal use only NEW ZEALAND Leveraging the relationships and strengths of the Australian operation to introduce more brands and technologies to our New Zealand business. Accelerating the Company’s growth in the New Zealand market through a strategic focus on expanding our lines of
Slide 29: 2023 Focus: Cybersecurity and Market Convergence
2023 FOCUS For personal use only CYBERSECURITY Cybersecurity is at the top of the agenda for every organisation in Australia and New Zealand. The Company has made several strategic vendor appointments to address the cybersecurity opportunity, with plans to further expand our range in FY23. The comp
Slide 30: Questions?
For personal use only QUESTIONS? 30
Slide 31: Thank You
For personal use only THANK YOU 38
Slide 32: Disclaimer
DISCLAIMER For personal use only This presentation has been prepared by Dicker Data Ltd (ACN 000 969 362). All information and statistics in this presentation are current as of 30 May 2022 unless otherwise specified. It contains selected summary information and does not purport to be all-inclusive o