Inves estor or Pre resent entat atio ion n Septe tember 2018 - PowerPoint PPT Presentation

Inves estor or Pre resent entat atio ion n Septe tember 2018

Company y Overvie iew 2

Company Snapshot Dicker Data is the largest Australian owned ICT distributor in Australia and New Zealand $ Nimble and Agile 400+ Staff in ANZ ASX Listed AUD $1.3B Consistent Growth Dicker Data’s success is Strong focus on people, Listed in 2011 on the ASX Largest Australian owned ICT Dicker Data has achieved with a current market cap distributor with $1.3B consistent top and bottom built on its ability to adapt culture and diversity and change quickly of $506m revenue in 2017 line growth for 15+ years No. 1 Distributor 3

Company History 1987 1993 2001 2010 2014 2015 First Toshiba First Compaq Annual revenues Relocated to Acquired Express Annual Founded distributor in distributor in exceed $100M new custom Data Holdings Revenues July 1978 Australia Australia built facility exceed $1bn In its 40 year history, Dicker Data has evolved from a small The company has been at the forefront of emerging technologies and • • family run business to a multidimensional, Trans-T asman, has expanded its vendor alliances and capabilities to provide an publicly listed business with strong links to the IT Reseller evolving product and services platform from which its reseller partners and Vendor communities can grow their business Dicker Data completed a business transforming acquisition Dicker Data’s management and product teams comprise a depth of • • in 2014 when it purchased competitor Express Data experience, a close connection to the business and the flexibility to Holdings uniquely cater for the continuously evolving channel’s needs 4

Proven and Stable Board and Management Team David Dicke cker Ian Welch ch Chairman and Chief Executive Officer Chief Information Officer, Director of Operations and Executive Director Vlad Mitn tnovets tski ki Michael Demetr tre Chief Operating Officer and Logistics Director and Executive Director Executive Director Mary Stojce cevski ki Fiona Bro rown Chief Financial Officer and Non-Executive Director Executive Director 5

Corporate Headlines Capital Structure Shareholders Share Price (5 September 2018) $3.15 Founder -David Dicker 60.6m 38% Fully paid ordinary shares 160.6m Founder -Fiona Brown 54.0m 34% Options 0.0m Free Float 46.0m 29% Market Capitalisation $505.9m Cash (30 June 2018) $6.2m 1 year r Share Price Drawn Debt (30 June 2018) $116.5m $3.40 ASX: DDR Directors s & Senior Management $3.20 $3.00 David Dicker Chairman & CEO $2.80 Fiona Brown Non Exec Director $2.60 Mary Stojcevski CFO & Director $2.40 Vlad Mitnovetski Executive Director Michael Demetre Executive Director $2.20 Ian Welch Executive Director $2.00 Sep-17 Oct-17 Dec-17 Jul-17 Aug-17 Nov-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 6

Financia ial l Result lts

Half Year Results Highlights 13.5% revenue increase • Revenue for the half year at $717.5m, a growth of 13.5% 9% increase in 3 year • More than 7 consecutive halves of continued revenue revenue CAGR growth representing a 9% CAGR • A total of 18 new vendors were added during FY17 and YTD FY18 accounting for incremental revenue of $35.8m for half. 21.9% NPAT increase • Existing vendors continued to grow at 7.9% • Net profit after tax increased by 24.9% • Earnings per share for the half year increased to 9.84 cents, a growth of 21.5% 21.5% EPS increase 8

Financial Trends – Half Year Gross Profit ($m) and Gross Profit Margin (%) Revenue ($M) 100.0 10.0% 1,000.0 10.5% 9.6% 9.8% 9.3% 9.1% 9.0% 8.9% 10.0% 80.0 800.0 10.0% 717.5 60.0 600.0 8.0% 673.6 63.6 632.4 62.5 9.5% 590.3 595.2 58.1 57.1 54.8 546.1 53.5 531.5 40.0 51.1 400.0 6.0% 9.0% 200.0 20.0 – 8.5% – 4.0% H1 15A H2 15A H1 16A H2 16A H1 17A H2 17A H1 18A H1 15A H2 15A H1 16A H2 16A H1 17A H2 17A H1 18A EBITDA ($m) and EBITDA Margin (%) Net Profit before Tax ($m) and NPBT Margin (%) 40.0 5.0% 40.0 3.5% 3.1% 3.1% 4.2% 3.0% 3.1% 3.1% 3.0% 3.9% 3.8% 35.0 3.8% 35.0 3.7% 3.0% 3.6% 3.6% 4.0% 2.4% 30.0 30.0 2.5% 25.0 25.0 3.0% 25.7 2.0% 24.6 23.5 20.0 23.0 20.0 22.5 22.1 21.7 20.5 1.5% 20.8 2.0% 19.4 18.5 15.0 15.0 18.1 16.2 1.0% 10.0 10.0 13.2 1.0% 0.5% 5.0 5.0 – – – – H1 15A H2 15A H1 16A H2 16A H1 17A H2 17A H1 18A H1 15A H2 15A H1 16A H2 16A H1 17A H2 17A H1 18A 9

HY18 Results - Group Revenue gro rowth th of 13.5% .5% and in line with • our guidance. 6 months to: Jun-18 18 Jun-17 17 Variance Gro ross pro rofit t incr creased by 11.4 .4% as we • experienced a slight softening in margin 717.5 632.4 13.5% Total Revenue quality due to product mix. 63.6 57.1 11.4% Gross Profit Operating costs have increased slightly as • 8.9% 9.0% Gross Margin a proportion of revenue as the company continues to invest in headcount to 25.7 23.5 9.3% EBITDA facilitate growth. 21.7 19.4 11.9% Profit before tax Profit t before tax incr creased by 11.9 .9% over 3.0% 3.1% • PBT margin the 2017 HY result. 16.2 13.0 24.9% Net profit after tax Net t profit t afte ter tax incr creased by 24.9 .9% • 10

HY18 Balance Sheet Net Assets (in $m) Jun-18 18 Jun-17 17 Ratios Jun-18 18 Jun-17 17 Cash and equivalents 6.2 27.4 Net Working Capital ($m) 124.4 83.0 Other current assets 356.4 283.7 Debt to Equity 1.52x 1.34x Goodwill & Intangibles 28.4 29.8 Debt Service Cover Ratio 7.50x 7.20x Other assets 51.0 48.2 Net T angible Assets ($m) 48.3 44.1 Total Assets 442.0 389.0 Borrowings 77.0 60.0 Other current liabilities 242.6 209.1 The company has significantly increased • Borrowings 39.5 39.2 worki king capita tal investm tment t as it onboards Other long-term liabilities 6.1 6.8 new vendors. Total liabilities 365.2 315.1 This has resulted in a cyclica cal incr crease in net TOTAL NET ASSETS 76.7 73.9 • debt t YoY. Shareholders' s' Equity Share Capital 57.6 56.6 As a result the company’s leverage has • increased slightly, whilst conti tinuing to Reserves 0.2 0.6 impro rove ability ty to service ce that t debt. t. Retained earnings 18.9 16.8 TOTAL EQUITY 76.7 73.9 11

HY18 Results YTD Profit Before T ax • In the 6 months to 45 June pretax pro rofit is 40 tracking to forecast 35 30 and ahead of the Millions ($) 25 corresponding half 20 last year. 15 • Full year pro rofit 10 before tax fore recast 5 remains at $42.5m . - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2017 2018 Projection 2018 HY 12

Busin iness Update

IT Market and Our Strategy Australian IT Distribution Market Share Dicker Data is a leading ng Value ue Added Distributo utor • Our speciality ty is servicing ng the mid-market and • Other 7% SMB communities with specific focus on pre- sales capabilities, value added services and Arrow emerging hybrid end to end technology Tech Data 4% Dicker Data 7% solutions. 19% In recent years targ rgetin ting distr tributi ution n agreements nts • Westcon in softw tware and high-end nd enterp rpris rise pro roduc ucts ts 6% and those that address the cloud computing environment. The indus ustry is going ng throug ugh h major • Synnex trans nsform rmation tion and evolving faster than ever, 29% Ingram Micro and we need to keep evolving to differentiate 28% and offer a unique value proposition to both vendors and reseller partners. 14

Our Opportunities IoT Security Physical Security Electrical Trade Data Management Our Australian-first IoT Continuing to capitalise on Moving into the surveillance Continuing to build new Helping our partners analyse Community now has 150+ the security opportunity camera market which aligns channels – e.g. electricians and get the most out of the members. e.g. NDBS. to electrical market play. becoming partners. data their customers generate. Automated Cloud Services Datacentre Networking Client Computing Delivering pre-packaged Continued focus in driving our Continuing our push to Driving continued growth in Driving continued growth in cloud based solutions to Services business into as many distribute top to bottom of the wireless and enterprise our devices business across enable ease of deployment. opportunities as we can. rack solutions. networking markets. all market segments. 15

Our Vendors 16

Vendor Additions 2017 Access to the complete Access to the Aruba Access to BenQ’s LCD range of Dell EMC Datacentre Networking and Monitor product range storage products in the Nimble Storage portfolios in Australian market the New Zealand market Extension of our existing Access to Pure Storage’s Access to the entire strong relationships with All-Flash Arrays in the Juniper product portfolio these brands into the New Australian market in Australia Zealand market Access to all Seagate Access to the complete Access to the complete high capacity drives and range of Network Security range of Trend Micro best-in-class storage Products in the Australian security products in the solutions. market Australian market 17