Q Financial Performance. 12 November 2015

Transcription

1 Q Financial Performance 12 November 2015

2 Agenda 1 Q Business 2 Financial Performance 3 Dividend for Outlook 2 Questions and Answers 23/11/2015 ABC Data SA 2

3 Q Achievements Significant improvement of financial performance EBITDA +11% Net profit +59% High sales margin of 5.4% Sharp drop in net debt (down 44%) Significant decrease in financial costs (by 38%) Stable cash flows Continuing improvement in working capital management Strategy implementation Strengthening position in CEE: Poland # 2 (+1) Romania - #5 (+9) Hungary - #8 (+12) Foreign entities contribution to the general performance Performance of isource (Apple products distributor in Poland) exceeding expectations Top Polish IT distributor in Computerworld 2015 ranking 23/11/2015 ABC Data SA 3

4 ABC Data Strategy for general assumptions Modern IT distribution leader in CEE Group value to reach ca. PLN 1 billion in 2018 An increase in the market share in Poland: from 21.5% in 2015 to 25% in 2018 An increase in the market share in CEE: from 6.1% in 2015 to 10% in 2018 Advancing to the position of CEE leader through strengthening market position on individual markets: Poland number one by 2018 Three key countries in the region position in the top 3 by 2018 Baltic States light scenario An increase in the number of clients : Poland from 8.2k in 2015 to 10k by 2018 CEE (excl. PL) from 5.4k in 2015 to 10k by 2018 Organic growth and M&A Additional distribution market for new brands of smartphones Further growth in the Telco sector Colorovo maintaining the current offering for inks and toners Change in the business model on the German market Streamline the processes and optimize costs ERP implementation High Performance Organization approach 23/11/2015 ABC Data SA 4

5 Strengthening position in CEE Improving position in the region New regional vendors Market Q Q Poland 3 2 Romania 14 5 Hungary 20 8 Baltic states 4 4 Czech Republic and Slovakia /11/2015 ABC Data SA 5

6 Growth in the Mobile/Telco segment Dynamic growth of sales of Huawei products Growth in the Mobile/Telco segment Expanding smart fit product range New product category: smart home Fostering cooperation with Telco operators 23/11/2015 ABC Data SA 6

7 Growth in the Value+ segment Strengthening sales structures Growth in the Value+ segment Contract with Dell Sonicwall, Veritas Expanding the scope of the contract with Symantec Including AVG products to the offer 23/11/2015 ABC Data SA 7

8 Dynamic growth of product portfolio e-commerce #1 project High-margin products from new segments Stationery, office supplies and school Art. szkolne materials i biurowe Toys Zabawki Narzędzia Tools Electrical i tools elektronarzędzia Już Coming wkrótce soon Full product range of over 200 brands High quality toys of top brands Product range including A- offer Home&Living Lifestyle Professional electronics Sports, Automotive 23/11/2015 ABC Data SA 8

9 01 Q Business

10 Q Business Strengthening position in CEE - Poland # 2 (+1), Rumania - #5 (+9), Hungary - #8 (+12) Strengthening position in the region - a considerable increase in the number of active clients - by 100% in Hungary Significant sales growth in Lithuania, Hungary and Romania by 85% in total New special channel programmes for partners New financing solutions for SMEs and a considerable increase in trade credits for clients Including new brands in the product offer New high-margin product categories isource maintaining its leadership position as a distributor of Apple products in Poland 23/11/2015 ABC Data SA 10

11 Sales in Q1-Q3 2013, 2014, 2015 (PLN 000) % % Q1-Q Q1-Q Q1-Q A 14% decrease in sales compared to Q1-Q focus on higher profitability and gross margin Fewer transactions, higher margins A 0.6 p.p. increase in margin Q1-Q vs Q1-Q /11/2015 ABC Data SA 11

12 VAT reverse charge affecting Q3 revenue (PLN 000) +2,2% % 42% % % 726 Q2 Q3 products subject to VAT reverse charge other products Increase in total revenue (Q3 vs. Q2) A 13% decrease in the share of products subject to VAT reverse charge in the total revenue (Q3 vs. Q2) 23/11/2015 ABC Data SA 12

13 Sales by product category 23/11/2015 ABC Data SA

14 Sales growth in CEE Poland (#2) new sales department structure = closer customer relationships and better market penetration New sales teams 5 new directors b2b teams successfully generating product leads Implementation of dedicated channel programs = a considerable increase in the number of active partners Hungary - partner activation programme = an increase in the number of active clients in Q3 by 100% Romania - new financing solutions for SMEs and a substantial increase in trade credits for clients The Czech Republic/Slovakia launching channel activities and loyalty programmes to develop and penetrate the existing channels Region implementing a unique channel financing tool in collaboration with BNP Paribas 23/11/2015 ABC Data SA 14

15 02 Q Financial performance

16 Very strong financial position A substantial 59% YoY increase in net profit from PLN 20 million (Q1-Q3 2014) to PLN 31.8 million (Q1-Q3 2015) Fast 0.6 p.p. growth in margin from 4.8% to 5.4% An 11% YoY increase in EBITDA from PLN 43.2 million (Q1-Q3 2014) to PLN 47.8 million (Q1-Q3 2015) A sharp 38% YoY drop in financial costs (down PLN 3.4 million) A decrease in net debt from PLN 170 million (Q1-Q3 2014) to PLN 96 million (Q1-Q3 2015) Cash conversion cycle improved from 30 days in Q1-Q to 28 days in Q1- Q /11/2015 ABC Data SA 16

17 Higher profit, lower net debt Item Q1-Q (PLN million) Q1-Q (PLN million) Year-on-Year Comment Sales revenue % Gross margin 4.8% 5.4% +13% Focus on higher profitability and gross margin Fewer transactions, higher margins Focus on profitability and higher margin from domestic and international transactions EBITDA % Effect of margin growth Net profit % Higher margin, lower debt Net debt % Effective management of cash conversion cycle Longer liabilities turnover 23/11/2015 ABC Data SA 17

18 Rising gross margin, debt still low (PLN 000) Q1-Q Q1-Q Q1-Q Revenue Gross profit on sales Gross profit on sales (%) 4,5% 4,8% 5,4% EBITDA EBITDA (%) 1,5% 1,1% 1,4% Net profit Net profit (%) 1,2% 0,5% 0,9% Net debt /11/2015 ABC Data SA 18

19 Higher profitability (PLN 000) % % ,0% ,0% ,5% 4,8% 5,4% 6,0% 4,0% ,0% Q1-Q Q1-Q Q1-Q ,0% Gross margin Gross margin [%] An increase in gross profit on sales of 0.6 p.p. 23/11/2015 ABC Data SA 19

20 SG&A (PLN 000) % +38% ,8% 4,0% 3,2% Q1-Q Q1-Q Q1-Q ,0% 8,0% 6,0% 4,0% 2,0% 0,0% Cost increase trend reversed as a result of optimization implemented in Q /11/2015 ABC Data SA 20

21 EBITDA (PLN 000) +42% -16% +11% Q1-Q Q1-Q Q1-Q An 11% increase in EBITDA on continuing operations as a result of higher margins Q1-Q vs Q1-Q /11/2015 ABC Data SA 21

22 Net profit (PLN 000) -49% +59% Q1-Q Q1-Q Q1-Q Considerable increase in net profit (59% YoY) 23/11/2015 ABC Data SA 22

23 Low debt ratios Period-end data ,4 1,5 1,7 1,6 1, Q1-Q Q1-Q Q1-Q Q1-Q Q1-Q ,0 3,0 2,0 1,0 0,0 Consolidated net debt in PLN million Net debt / EBITDA Significant decrease in net debt / EBITDA ratio thanks to optimized liabilities structure 23/11/2015 ABC Data SA 23

24 Cash conversion cycles (PLN 000) -4% -7% +17% -15% Q1-Q Q1-Q Q1-Q Average CCC for the period CCC at period end The cash conversion cycle (CCC) has been defined as the total of receivables and inventory turnover in days less liabilities turnover in days. CCC for a given period (quarter/half of the year) is presented as the arithmetical average of monthly ratios for the period. Each component of the monthly ratio has been calculated as a relation between the level of relevant balance sheet items at month-end multiplied by 30 days and referred to revenue for the month increased by VAT on sales (for amounts receivable). to cost of sales for the month (for inventories) and to costs of sales for the month increased by VAT on purchases of goods (for liabilities) ABC Data SA 24

25 Selected balance sheet ratios Continuing operations [PLN 000] Q1-Q Q1-Q Inventory Trade and other receivables Trade and other liabilities Working capital % of sales 10% 10% Debt Cash and cash equivalents Net debt EBITDA 12M Net debt / EBITDA 12M 2,4 1,4 23/11/2015 ABC Data SA 25

26 Cash flows , ,8 13,6 Q Q mln zł PLN million 0.7 3,8 Total cash flows -0.7 Operating and investing activities Financing activities Stable positive cash flows from operating activities 23/11/2015 ABC Data SA 26

27 Turnover ratios (in days) Q1-Q Q1-Q % +10% +29% -7% , , , ,8 Inventory turnover ratio Receivables turnover ratio Liabilities turnover ratio Cash conversion cycle Improved cash conversion cycle by over 2 days 23/11/2015 ABC Data SA 27

28 03 Dividend for 2014

29 One of the highest dividend rates on the Polish market zł0,40 zł0,35 zł0,30 zł0,25 zł0,20 zł0,15 zł0,10 zł0,05 zł- 0,00 zł 0% 0,24 zł 0,16 zł 8% 8% 6% 0,36 zł 0,36 zł % 20% 15% 10% 5% 0% Dividend amount PLN 20 million PLN 30 million PLN 45 million PLN 44 million Dividend par share Dividend rate ABC Data has consistently followed the dividend payment policy The current financial position enables the Company to follow the dividend payment policy 8 July 2015 dividend payment of PLN 44.1 million from profit for /11/2015 ABC Data SA 29

30 Outlook

31 2015 outlook consolidated performance of the ABC Data Capital Group Sales PLN k EBITDA PLN k Net profit PLN k 23/11/2015 ABC Data SA 31

32 Sales vs projection (PLN 000) +16% % projection Sales policy followed - focus on higher profitability and margin Fewer transactions, higher margins 23/11/2015 ABC Data SA 32

33 EBITDA vs projection (PLN 000) % % projection A 9% increase in EBITDA in 2014 vs projection 23/11/2015 ABC Data SA 33

34 Net profit vs projection (PLN 000) -44% +47% projection A 47% increase in net profit in 2014 vs projection 23/11/2015 ABC Data SA 34

35 05 Questions and Answers

36 Thank you. ABC Data SA ul. Daniszewska Warszawa T F abcdata.eu Berlin Bratislava Bucharest Budapest Munich Prague Riga Tallinn Warsaw Vilnus

37 Berlin Bratislava Bucharest Budapest Munich Prague Riga Tallinn Warsaw Vilnus