INVESTOR UPDATE COO Vlad Mitnovetski Mary Mary St Stojce ojcevs vski ki CFO September 2019
COMPANY OVERVIEW N U M B E R 1 D I S T R I B U T O R $ ASX Listed AUD $1.4b Consistent Growth Nimble and Agile 470 Staff in ANZ Dicker Data listed on the Dicker Data is the largest Dicker Data has achieved Dicker Data’s success is built Dicker Data has a strong on our ability to adapt and focus on people, culture ASX in 2011. Australian owned distributor consistent top and bottom with over $1.4B revenue in line growth for 15+ years change quickly. and diversity 2018 2
COMPANY HISTORY 1987 1993 2000 2010 2011 2014 2015 2017 2019 First T oshiba First Compaq Annual Relocated to Listed on the Acquired Ann. revenue Launched Launched distributor in distributor in revenues new custom ASX Express Data exceeds $1B Australia’s Dicker Data FOUNDED Australia Australia exceed $100M built facility (ASX: DDR) Holdings first IoT Financial JULY 1978 Cloud Portal Community Services Launched 20 YE AR S OF P R OF ITAB LE G R OW TH 1,600 1,400 Revenue ( $ ‘Mil) 1,200 1,000 800 600 400 200 - FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 3
Vlad Mitnovetski David Dicker Fiona Brown Mary Stojcevski Ian Welch Michael Demetre Chairman and CEO Non-Executive Director COO CFO CIO Logistics Director Founder Founder EXECUTIVE TEAM
CORPORATE HEADLINES CAPITAL STRUCTURE 1 YEAR SHARE PRICE Share Price (6 Sept 2019) $6.99 ASX: DDR Fully paid ordinary shares 161.5m 8.00 Options 0.0m 7.00 Market Capitalisation $1,129.1m 6.00 Cash (30 June 2019) 24.4m Drawn Debt (30 June 2019) 90.0m 5.00 4.00 SHAREHOLDERS 3.00 Founder -David Dicker 60.6m 38% 2.00 Founder -Fiona Brown 54.0m 34% Free Float 46.1m 29% 5
FINANCIAL RESULTS HY19
RESULTS HIGHLIGHTS 18.7% REVENUE INCREASE • Strong revenue growth of 18.7%, with total revenue for the half year at $852.0m. • At a country level, Austra rali lia grew revenues at 17.8% and New Zealan land grew revenues at 36.1%.* %.* 51.2% • The 10 new vendors s added during the FY18 and HY19 NPBT INCREASE accounted for increme mental al revenue of $18.8m m in HY19. • Exist stin ing vendors s (FY17 and prior) grew at 16.2% % on pcp, as existing vendor relationships were leveraged to gain access to new product lines or increased share. 50.5% • Net profi fit after tax increas eased ed by 50.5% % on pcp. NPAT INCREASE *based on AUD reporting currency 7
FINANCIAL TRENDS HALF YEAR GROSS PROFIT ($M) AND GROSS PROFIT MARGIN (%) REVENUE ($M) 10.0% 9.8% 9.6% 9.3% 9.2% 9.0% 9.1% 9.1% 8.9% 852 776 718 77.3 674 632 71.7 595 590 63.6 62.5 546 532 58.1 57.1 54.8 53.5 51.1 H1 15A H2 15A H1 16A H2 16A H1 17A H2 17A H1 18A H2 18A H1 19A H1 15A H2 15A H1 16A H2 16A H1 17A H2 17A H1 18A H2 18A H1 19A EBITDA ($M) NET PROFIT BEFORE TAX ($M) AND NPBT MARGIN (%) 3.2% 3.8% 3.1% 3.1% 3.0% 3.1% 3.1% 3.0% 32.2 37.0 24.9 29.2 2.4% 25.7 21.7 24.6 23.5 20.8 23.0 22.5 19.4 22.1 18.5 18.1 20.5 16.2 13.2 H1 15A H2 15A H1 16A H2 16A H1 17A H2 17A H1 18A H2 18A H1 19A H1 15A H2 15A H1 16A H2 16A H1 17A H2 17A H1 18A H2 18A H1 19A 8
HY19 RESULTS GROUP Revenue growth of 18.7% % which is tracking ahead • 6 months to (in $m): Jun-19 Jun-18 Variance of our forecast for the half year. 851.9 717.5 18.7% T otal l Revenue Gross s profit it increas ased by 21.5% % with margins • firming back to longer term average levels. 77.3 63.6 21.5% Gross s Profit it 9.1% 8.9% Gross Margin Operatin ing costs s have increased only marginally • 37.0 25.7 43.9% EBITDA over the pcp, and have fall llen to 4.9% of revenue. The company continues to invest in headcount to 32.3 21.4* * 51.2% Profit it before tax facilitate growth. 3.8% 3.0% PBT margin 23.8 15.8 50.5% Operatin ing profit it before e tax increas eased by 51.2% % Net profi fit after er tax • over the pcp. Net profi fit after er tax increas eased ed by 50.5% • * Net operating profit before tax excluding one off costs for Employee Share Scheme 9
HY19 RESULTS NEW ZEALAND Revenue growth of 32.4% 4% driven by the introduction • of new vendors and increases in market share. 6 months to (in $NZDm): Jun-19 Jun-18 Variance Gross s profit it increas ased by 11.6% with margins abating • Total l Revenue 55.3 41.8 32.4% 4% due to competition and product mix. Gross s Profit it 4.9 4.4 11.6% Gross Margin 8.9% 10.6% EBITDA A increas eased ed due to change in accoun untin ing policy y • in respect of AASB 16 and capitalisation of leases. EBITDA 0.9 0.6 34.1% Depreciation is now recognised on the Right to Use Profit it before tax 0.5 0.5 0.6 0.6 -10.4% 4% capitalised lease asset, instead of being reflected as an PBT margin 1.0% 1.4% operating lease expense. Net profi fit after er tax 0.4 0.7 -43.8% Whilst revenue has grown, profit it before tax finalised • just short of Jun18, down by 10.4% 4%, mainly as a result of lower gross margins 10
HY19 BALANCE SHEET MASTER TITLE STYLE Ratios Jun-19 Dec-18 Net Assets (in $m) Jun-19 Dec-18 Net Working Capital ($m) 133.8 121.2 Cash and equivalents 24.4 6.6 Debt to Equity 1.49x 1.37x Other current assets 415.3 344.2 Debt Service Cover Ratio 11.03x 9.41x Goodwill & Intangibles 27.0 27.7 Net T angible Assets ($m) 60.3 52.3 Other assets 53.4 50.4 Tota tal l Assets ets 520.1 429.0 The company continues to increas ase wor orkin ing Borrowings 129.8 70.0 • capital al investme ment as it onboards new vendors. Other current liabilities 294.8 233.1 Borrowings 0.0 39.6 This has resulted in a cyclical cal increas ase in net • debt. Other long-term liabilities 8.2 6.3 Tota tal l liabilities abilities 432.8 349.0 Corpor orate Bond matures s in March ch 2020 and is • TOTAL NET T ASSE SETS 87.3 80.0 now reflected as part of the current liabilities Shar areho ehold lder ers' ' Equit ity As a result the company’s leverage has • Share Capital 61.2 58.0 increased slightly, whilst continuin ing to improv ove e Reserves 0.6 0.5 abilit ity to service ce that debt. Retained earnings 25.5 21.5 TOTAL EQUI UITY 87.3 80.0 11 11
FY19 GUIDANCE YTD PROFIT BEFORE TAX HY19 profit it before tax finalised at $32.3m, • 60 tracking well ahead of forecas cast. 50 Forecas casted profit it for r FY19 was $51.4m. • Based on results for the half year the 40 Company is confident this will be Millions achieve ved. 30 20 There are additional headcount and • other operating cost investments to 10 come in H219. Also with a high representation of US based vendors and - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec some uncertainty in the global economy, profit it guidance will be reviewe wed once 2018 2019 Projection 2019 H1 Q319 results s are finalise alised. . 12
BUSINESS UPDATE
IT MARKET AND OUR STRATEGY Dicker Data is a leadin ing Valu lue Added T echnolog logy • Distribu ributor or AUSTRALIAN IT DISTRIBUTION MARKET SHARE Our speciality ality is servic icin ing the mid-mark market et and SMB Other • 6% communities with specific focus on pre-sales Westcon 5% capabilities, value added services and emerging Tech Data hybrid end to end technology solutions. Dic Dicker r Da Data 6% 19% 9% In recent years targetin ing distribu ribution ion agreemen ents s in • Arrow softwar ware and high-end enterprise rise products s and those 8% that address the cloud computing environment. The industry is going through major or transformatio sformation n • and evolving faster than ever, and we need to keep evolving to differentiate and offer a unique value Synnex 28% proposition to both vendors and reseller partners. Ingram Micro 28% Dicker Data is perfectly positioned to assist all of it • partners through the journey ey of digital al transf sfor ormat mation ion 14
OPPORTUNITIES 2019 INTERNET OF THINGS SECURITY PHYSICAL SECURITY EDGE COMPUTING Our Australian-first IoT Continuing to capitalise Moving into the surveillance Delivering technologies that Community now has on the security camera market which aligns enable intelligent edge 150+ members. opportunity e.g. NDBS. to electrical market play. computing. DATA MANAGEMENT DATACENTRE NETWORKING Helping our partners analyse Continuing our push to Driving continued growth in and get the most out of the distribute top to bottom the wireless and enterprise data their customers generate. of rack solutions. networking markets. NEW WEBSITE AUTOMATED CLOUD FINANCIAL SERVICES Launching a completely new Delivering pre-packaged Introducing Dicker Data Financial online experience for our cloud based solutions to Services – in house finance partners. enable ease of deployment. company to support DaaS and IaaS. 15
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