ANNUAL GENERAL MEETING 2019 May 2019
FINANCIAL RESULTS FY 2018
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 revenue of $66.4m in FY18 20.5% • Existing vendors grew at 9.5% as existing vendor relationships NPAT INCREASE were leveraged to gain access to new product lines or increased share 20.2% • Net profit after tax increased by 20.5% EPS INCREASE • Earnings per share for the year grew 20.2%
FINANCIAL TRENDS FULL YEAR REVENUE ($M) GROSS PROFIT ($M) AND GROSS PROFIT MARGIN (%) 9.1% 10.0% 180.0 9.8% 9.0% 9.4% 9.1% 9.8% 9.1% 1,650 ,650.0 .0 150.8 50.8 7.0% 9.6% 130.0 1,4 ,493.6 93.6 135.3 35.3 9.4% 119.5 9.5 1,306 ,306.0 .0 5.0% 111.6 .6 1,1 ,185.5 85.5 105.9 05.9 1,077 ,077.6 .6 80.0 9.2% 3.0% 9.0% 1.0% 30.0 8.8% -1.0% 8.6% FY15A FY16A FY17A FY18A FY19 Forecast (20.0) FY15A FY16A FY17A FY18A FY19 Forecast -3.0% EBITDA ($M) NET PROFIT BEFORE TAX ($M) AND NPBT MARGIN (%) 60.0 3.5% 3.1% 3.1% 3.1% 3.1% 2.7% 3.0% 50.0 51.4 51.4 61.3 61.3 2.5% 46.6 6.6 40.0 54.9 54 .9 40.2 0.2 48.1 8.1 2.0% 45.3 5.3 42.6 2.6 36.6 36.6 30.0 1.5% 29.4 20.0 1.0% 10.0 0.5% – – FY15A FY16A FY17A FY18A FY19 Forecast FY15A FY16A FY17A FY18A FY19 Forecast
FY18 RESULTS GROUP Revenue growth of 14.4% 4% and in line with our guidance • 12 MONTHS TO: DEC-18 DEC-17 VARIANCE Gross s profit it increas ased by 12.4% as we experienced a • slight softening in margin quality due to product mix Total l Revenue 1,493.6 1,306.0 14.4% Gross s Profit it 132.4 4 117.8 12.4% Operatin ing costs s have decreas ased margin inally ally as a • Gross Margin 8.9% 9.0% proportion of revenue but the company continues to invest in headcount to facilitate growth EBITDA 54.7 48.1 1 13.9% Profit it before tax 46.6 40.2 16.0% Profit it before tax increas ased by 16.0% % • over the 2017 FY result PBT margin 3.1% 3.1% Net profi fit after er tax 32.5 26.9 20.5% Net profi fit after er tax increas eased ed by 20.5% •
PRODUCT CATEGORY SPLITS AND GROWTH SO SOFTWA WARE RE SE SECURI RITY 3% 3% (+4% YoY) SOFTWA SO TWARE 18% 8% ENDPO NDPOINT INTS (+21% 21% YoY) 30% 30% (+18% 8% YoY) HARWA HA RWARE RE SE SECURI RITY 1% 1% (+47% 7% YoY) ST STORA RAGE 8% 8% (+22% 22% YoY) PERI PE RIPH PHERA RALS 10% 0% (+16% 6% YoY) SERVER SE RVERS S & NETWO NE WORKING RKING 29% 29% (+19% 9% Y YoY) PRINT PR INT 1% 1% (+47% 7% YoY)
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 -$0.0m -$9.0m 4 2 0 Marg Margin on n rev reven enue Marg Margin qual uality ty Var ariab able Op e Operati erating ng Fixed Fixed Op Operati erating Oth Other er Income me Fin Financ ancing ng Cost sts YoY Op Yo Operati erating ng gro rowth th deg egredat ation Costs sts Costs sts Pro rofit t Gro rowth th
FY18 BALANCE SHEET NET ASSETS (IN $M) DEC-18 DEC-17 The company has significantly increas ased workin ing • Cash and equivalents 6.6 9.4 capital al investme ment as it onboards new vendors Other current assets 344.2 295.6 Goodwill & Intangibles 27.7 29.1 This has resulted in a cyclical cal increas ase in net debt • Other assets 50.3 50.2 As a result the company’s leverage has increased • Total l Assets 428.8 384.3 slightly, whilst continuin ing to improv ove e abilit ity to Borrowings 70.0 55.0 servic ice e that debt Other current liabilities 233.0 208.9 Borrowings 39.6 39.4 Other long-term liabilities 6.3 6.1 Total l liabil ilitie ities 348.9 309.4 SOURC URCE OF CAPIT ITAL DECE CEMBER R 2018 TOTAL TAL NET ASSE SETS 80.0 80.0 74.9 Shareho holders' Equi uity Share Capital 58.0 56.9 Bank Debt (Net Reserves 0.5 0.1 of Cash) h), , Retained earnings 21.5 17.9 $63.4m 4m, , 34% TOTAL TAL EQUITY ITY 80.0 80.0 74.9 Equity, , $80.0m, , 44% 44% RATIOS Net Working Capital ($m) 121.4 96.7 Debt to Equity 1.37x 1.26x Debt Service Cover Ratio 9.41x 8.57x Corpor porate e Net Tangible Assets ($m) 52.3 45.7 Bond, , $39.6m, , 22% 22%
FY18 CASH FLOW SOURCE AND APPLICATION OF CASH Open Cash $9.4m EBITDA $54.7m Net Interest & Tax -$19.3m Working Capital Movement -$24.7m Other $0.3m Capital Spending -$0.7m Payment of Dividends -$28.2m Drawdown of S/T Borrowings $15.0m Close Cash $6.6m Source Application
FINANCIAL RESULTS Q1 2019
Q1 FY19 RESULTS GROUP Revenue growth of 21.1% tracking ahead of our • guidance 3 3 mo mont nths hs to: o: Mar-19 Mar 19 Mar Mar-18 18 Varia Variance nce Gross s profit it increas ased by 20.6% % with margin quality • T otal l Revenue 386.9 319.6 21.1% maintained Gross s Profit it 35.3 29.2 20.6% Gross Margin 9.1% 9.1% Operatin ing costs s have fall llen as a proportion of revenue • EBITDA 15.7 11.1 41.4% but the company continues to invest in headcount to facilitate growth Profit it before tax 13.5 9.2 9.2 46.7% 7% PBT margin 3.5% 2.9% Profit it before tax increas ased by 46.7% % over Q1 FY18 result • Net profi fit after er tax 10.7 6.5 6.5 64.3% Net profi fit after er tax increas eased ed by 64.3% •
Q1 FY19 RESULTS NEW ZEALAND Key Financial cial Data a (in $NZm) 3 mo 3 mont nths hs to: o: Mar-19 Mar 19 Mar-18 Mar 18 Varia Variance nce Revenue growth of 31.9% % in our first comparative • quarter that excludes the impact of the loss of the Cisco business in 2017 Total l Revenue 25.9 19.7 31.9% Gross s Profit it 2.1 1.9 9.1% Gross s profit it increas ased by 9.1% with margin quality • Gross Margin 8.1% 9.8% declining due to product mix EBITDA 0.1 0.1 -36.6% Operatin ing costs s have fall llen as a proportion of revenue Profit it before tax 0.0 0.0 0.1 -65.3% • with costs remaining steady and the company PBT margin 0.2% 0.7% maintaining its cost structure investment to facilitate Net profi fit after er tax 0.0 0.0 0.1 -75.5% revenue growth
Q1 FY19 BALANCE SHEET RATI RATIOS Mar ar-19 19 Dec Dec-18 18 NET ASSE NE ASSETS S (in (in $m) $m) Mar ar-19 19 Dec-18 Dec 18 Net Working Capital ($m) 174.6 121.4 Cash and equivalents 3.5 6.6 Other current assets 332.9 344.2 Debt to Equity 2.00 1.37 Goodwill & Intangibles 27.4 27.7 Debt Service Cover Ratio 9.87 9.41 Other assets 51.1 50.3 Net T angible Assets ($m) 52.43 52.25 T otal Ass ssets 414.9 .9 428.8 .8 Borrowings 120.0 70.0 The company continues to significantly • Other current liabilities 169.1 233.0 increas ase workin ing capital al investme ment as Borrowings 39.7 39.6 it onboards new vendors and develops Other long-term liabilities 6.3 6.3 new business T otal liabi bilities 335.1 .1 348.9 .9 This has resulted in a cyclical cal increas ase • TOTAL AL NET T ASSE SETS TS 79.8 80.0 in net debt Sharehol olde ders' s' Equity The company’s leverage has increased • Share Capital 58.3 58.0 slightly, but we continue to improve ve Reserves 0.6 0.5 our ability ity to service ce that debt Retained earnings 20.9 21.5 TOTAL AL EQUI UITY 79.8 80.0
FY19 GUIDANCE YTD PROFIT BEFORE TAX • For FY19 profit 60 before tax is 50 forecast at $51.4m. 40 Millions 30 • Maintaining our recent track 20 record of +10% 10 growth - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2018 2019 Projection 2019 Q1
FY18 DIVIDENDS T otal dividends paid for FY18 were 20.2cps with a • final dividend for FY18 paid on 1 March 2019 at 7.0cps Record Record Paym Payment nt Divid Dividend nd Amo moun unt Typ ype Da Date Date Da (CPS) (CPS) Fra Franke nked In FY19 the company intends to continue paying • interim dividends in quarterly installments of 18-May-18 1-Jun-18 0.0440 Interim 100% 5.0cps per quarter, subject to the company tracking to forecast 20-Aug-18 3-Sep-18 0.0440 Interim 100% The first interim dividend for FY19 was declared • 19-Nov-18 3-Dec-18 0.0440 Interim 100% on 14 May 2019, payable on 3 June 2019 15-Feb-19 1-Mar-19 0.0700 Final 100% Including the final FY18 dividend paid in March T otal 0.2020 • 2019, the total proposed dividend to be paid in FY19 will be 22.0cps The DRP will be retained for FY19 •
CORPORATE HEADLINES CA CAPI PITAL AL STRUC STRUCTURE RE 1 YE YEAR AR SHA SHARE RE PR PRIC ICE ASX SX: D : DDR DR Share Price (16 May 2019) $5.23 $5.50 Fully paid ordinary shares 160.8m $5.00 Options 0.0m $4.50 Market Capitalisation $841.1m $4.00 Cash (31 Dec 2018) $3.5m $3.50 Drawn Debt (31 Dec 2018) $159.7m $3.00 $2.50 SHA SHARE REHO HOLDER LDERS $2.00 Founder -David Dicker 60.6m 38% Founder -Fiona Brown 54.0m 34% Free Float 46.2m 29%
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