FINANCIAL RESULTS FY19 RESULTS HIGHLIGHTS 17.9% Strong revenue - PowerPoint PPT Presentation

FINANCIAL RESULTS FY19

RESULTS HIGHLIGHTS 17.9% • Strong revenue growth of 17.9%, with total revenue from REVENUE INCREASE* ordinary activities at $1,761.3m. • Recurrin rring softwar ware revenue increas ased 47.9% % from $247.9m to $366.5m 37.5% • At a country level, Austra rali lia grew revenues at 16.8% and New Zealan land grew revenues at 38.4%. 4%.** NPBT INCREASE* • The 15 new vendors s added during the FY18 and FY19 accounted for increme mental al revenue of $29.9m m in FY19. 67.3% • Exist stin ing vendors s (FY17 and prior) grew at 16.9% % on pcp, as existing vendor relationships were leveraged to gain access to new product lines or increased share. NPAT INCREASE • Net profi fit after tax increas eased ed by 67.3% % on pcp. 2 * Excludes revenues/profit on sale of property and cost for Employee Share Scheme ** In AUD equivalent.

FINANCIAL TRENDS FULL YEAR Gross Profit ($m) and Gross Profit Margin (%) Revenue (from ordinary activities)* ($m) 200.0 9.0% 9.6% 9.3% 9.0% 9.0% 8.9% 7.0% 150.0 5.0% 100.0 3.0% 1,761.3 158.4 1,493.6 132.4 1,306.0 1.0% 1,185.5 117.8 1,077.6 109.7 103.5 50.0 -1.0% – -3.0% FY15A FY16A FY17A FY18A FY19A FY15A FY16A FY17A FY18A FY19A EBITDA* ($m) Net Pro Net Profit it Be Befor ore Tax ax** ** ($ ($m) m) and and NPBT NPBT Margin argin (% (%) 80.0 4.0% 3.6% 70.0 3.5% 3.1% 3.1% 3.1% 2.7% 60.0 3.0% 50.0 2.5% 40.0 2.0% 73.8 64.1 30.0 1.5% 54.4 48.1 46.6 45.3 42.6 20.0 1.0% 40.2 36.6 29.4 10.0 0.5% – – FY15A FY16A FY17A FY18A FY19A FY15A FY16A FY17A FY18A FY19A 3 *Excludes profit on sale of property **Excludes profit on sale of property and cost of the employee share scheme

FY19 RESULTS GROUP T otal Revenue includes $12.2m profit on the sale of • property. Revenue growth of 17.9% % with revenue from 12 12 mo mont nths hs to o (in $m): (in $m): De Dec-19 19 De Dec-18 18 Varia Variance nce • ordinary activities finishing at $1.76b for the year. Tota tal l Revenue enue 1,773.5 3.5 1,493 93.6 .6 18.7% Gross s profit it increas ased by 19.7% with margins • Revenue enue from m Ordin inar ary y Activit ctivitie ies 1,761.3 61.3 1,493 93.6 .6 17.9% 9% maintained at longer term average levels. Gross Profit fit 158.4 4 132.4 4 19.7% Gross Margin 9.0% 8.9% Operatin ing costs s have increased only marginally • EBITDA 73.8 54.4 35.7% over the pcp, and have fall llen to 4.9% % of revenue. Net t Opera eratin ing Profit fit before e tax 64.1 46.6 37.5% The company continues to invest in headcount to PBT margin 3.6% 3.1% facilitate growth. Net t Profi fit befor ore e tax 75.9 46.2 64.2% Net t profit fit after ter tax ax 54.3 32.5 67.3% Operatin ing profit it before e tax increas eased by 37.5% % • Net profi fit after er tax increas eased ed by 67.3% • 4

REVENUE CATEGORY SPLITS AND GROWTH Hardware by Product Category Software by Billing Method PRINT $25m (+183% YoY) SERVICES $8m VIRTUAL (+6% YoY) SERVICES & STORAGE OTHER $16M RENEWABLE PERIPHERALS $137m (-26% YoY) $230m $237m (+22% YoY ) (+41% YoY) (+20% YoY) HW & PERPETUAL $429m $1,758m* $1 $1,321m 321m SOFTWARE VIRTUAL $62M $429m SERVICES (+1% YoY) SERVERS & ENDPOINTS (+39% YoY) $1,321m NETWORKING $457m (+13% YoY) $449m (+19%YoY) (+1% YoY) SUBSCRIPTION $137M (+61% YoY) Software growth being driven • by ever increasing subscription and recurring product lines, recurring revenue increasing 47.9% from $248m to $367m *Revenue from the sale of goods and services. 5

FY19 RESULTS GROUP Sour Source ces of of Prof Profit it Growth Growth 2019 2019 $2.3m Exceptional operati ation onal al scale le • $23.8m effici iciency cy during 2019. Both revenue and margin in quality • $17.5m -$6.4m 4m improved. -$2.0m $-0.2m 0.2m Operatin ing cost growth was restrained • ment gin on revenue growth and improved to 4.9% % of revenue. oveme g Costs g Profit growth g Costs gin quality improv rating Resulting in 67% of gross s profit it • d Operating ble Opera growth flowing through to operat atin ing me r Income Operating profit. it. Variabl Other Margi Fixed Margi 6

FY19 RESULTS NEW ZEALAND Revenue growth of 35.5% % driven by the introduction • of new vendors and increases in market share. 12 12 mo mont nths hs to o (in Dec-19 De 19 De Dec-18 18 Varia Variance nce (in $NZm): $NZm): Gross s profit it increas ased by 24.0% % with margins abating • Tota tal l revenu venue 122.4 4 90.3 35.5% due to competition and product mix. Gross profit fit 10.8 8.7 24.0% Gross margin 8.8% 9.7% EBITDA A increas eased ed due to change in accoun untin ing policy y • in respect of AASB 16 and capitalisation of leases. EBITDA 1.9 0.8 150.8% Depreciation is now recognised on the Right to Use Profit fit before tax 1.2 2 0.7 79.6% capitalised lease asset, instead of being reflected as an PBT margin 1.0% 0.7% operating lease expense. Net t profi fit after ter tax ax 0.8 0.5 55.2% Profit it before tax finish shed up by 79.6% • 7

FY19 BALANCE SHEET Ne Net Asse Assets s (in (in $m) $m) Dec-19 De 19 Dec-18 De 18 Ra Ratios ios De Dec-19 19 Dec-18 De 18 Cash and equivalents 22.6 6.6 Net Working Capital ($m) 165.4 121. 1.2 Accounts receivable 295.9 .9 238.7 .7 Net Working Capital Days 31.3 27.6 Inventory 120.4 .4 105.5 .5 Debt to Equity 1.37x 7x 1.37x 7x Other current assets 0.0 0.0 Debt Service Cover Ratio 12.59x 9.41x 1x T otal current asse sets ts 438.9 .9 350.8 .8 Net Tangible Assets ($m) 68.8 68.8 52.3 52.3 PP&E, net 32.0 46.8 Goodwill & Intangibles 26.3 27.7 Other assets 10.3 .3 3.7 The company continues to increas ase wor orkin ing • T otal asse sets 507.5 .5 429.0 .0 capital al investme ment in strategic product lines. Accounts payable 250.9 .9 223.0 .0 Borrowings 129.9 .9 70.0 Despite this, net debt has only increas eased ed by • Other current liabilities 22.0 10.1 .1 $4.3m m YoY, with levera rage being maintain ained T otal current liabi bilities 402.9 .9 303.1 .1 and our ability to service ce debt improv ovin ing. Borrowings 0.0 39.6 Other long-term liabilities 9.6 6.3 Corpor orate bond matures s in March ch 2020 and is • T otal liabi bilities 412.5 .5 349.0 .0 now reflected as part of the current liabilities. TOTAL AL NET T ASSE SETS TS 95.1 .1 80.0 Shareholde olders' s' Equity ty Share Capital 62.5 58.0 Reserves 0.6 0.5 Retained earnings 31.9 .9 21.5 .5 TOTAL AL EQUI UITY 95.1 .1 80.0 8

FY19 CASH FLOW Sour Source ce and nd Applica Application tion of of Ca Cash Open Cash $6.6m EBITDA $73.8m Net Interest & Tax -$20.9m Working Capital Movement -$44.2m Other $13.9m Disposal of Assets $14.6m Payment of Dividends -$39.4m Drawdown from Financing Facilites $18.2m Close Cash $22.6m Sour urce ce Appli licatio ion 9

FY19 DIVIDENDS Strong dividend growth of 63.4% 4% with • Record Re cord Div Dividend idend total dividends paid 33.0cp cps s for r FY19 Paym Pa yment t Dat Date Typ ype Amo Amount t Frank ranked Da Date te (CPS) (CPS (FY18 20.2cps). 20-May-19 3-Jun-19 0.0500 Interim 100% Dividends included a special dividend • 19-Aug-19 2-Sep-19 0.0500 Interim 100% of 5.0cps paid on 4 Oct 2019, and a 24-Sep-19 4-Oct-19 0.0500 Special 100% final al dividend for r FY19 to be paid on 2 March 2020 at 13.0cp cps. 21-Nov-19 2-Dec-19 0.0500 Interim 100% 14-Feb-20 2-Mar-20 0.1300 Final 100% In FY20 the company intends to • Total 0.3300 continue paying interim im dividends s in quarterly erly install allme ments The DRP will be retain ined for FY20 • 10

BUSINESS UPDATE 11

IT MARKET AND OUR STRATEGY Dicker Data is a leading g Value Added d • T echnol ology gy Distri ribu butor or Aus Austra tralian lian IT IT Dis Distribution tribution Mark rket Sh t Share re Austra Aus tralian lian IT IT Dis Distribution tribution Mark rket Sh t Share re Our speciality is servicing g the mid-mark rket and d • (Consumer, Large National Retail, Corporate, (Corporate, Commercial, Enterprise only) SMB communities with specific focus on pre- Commercial, Enterprise) sales capabilities, value added services and Other er emerging hybrid end to end technology Other er 10% 10% 9% 9% solutions. Westcon on Westcon on 5% 5% 8% 8% Dicker er Data Tech Data Dicker er Data In recent years targeting dist stri ribu bution on agreemen ments • 20% 20% 5% 5% 27% Tech Data in software and high gh-end d enterpri prise se produ ducts s Arrow ow 6% 6% and those that address the cloud computing 7% 7% environment. Arrow ow 10% 10% The indu dustry is going g throu ough gh major r • Synnex ex Synnex ex transforma rmation on and evolving faster than ever, 26% 26% 14% Ingram am Micro and we need to keep evolving to differentiate 28% 28% and offer a unique value proposition to both Ingram am Micro vendors and reseller partners. 25% 25% Dicker Data is perfectly positioned to assist all of • it partners through the journ rney y of digital transforma rmation on Source: Publicly available financial statements and company estimates 12