Financial performance Q May 2016

Transcription

1 Financial performance Q May 2016

2 Agenda Achievements of Q Enhancing position in the region Strategic initiatives performed in Q Financial performance in Q Dividend for 2015 Outlook ABC Data SA 2

3 01 Achievements of Q1 2016

4 Achievements in 2016 Strong position in the region Strategy implementation Strong position in the CEE region: Poland #2, Romania #3, Hungary #8 Consistent development of e-commerce platforms New contracts in the CEE region Consistent development of Value+ and Mobile and Telco Consistent increase in the number of active clients Rapid growth in radio, TV and household appliances Significant sales increase in Romania (82%), Slovakia (42%) and Hungary (36%) Entering the new markets: Denmark, The Netherlands, Italy, France Expanding the portfolio with high-margin products Development of logistic services more warehouse space in Romania and new logistic center in Hungary Establishing regional structure Implementing High Performance Organization philosophy isource remaining the distribution leader of Apple products in Poland ABC Data SA 4

5 02 Strong position in the region

6 Rapid growth of IT distribution market in CEE region Increase in Central and Eastern Europe * 20% $ 18 bn $ 15 bn Western Europe 5% ** $ 100 bn $ 95 bn * Value of IT distribution market as per PMR report ** Value of IT distribution market as per IDC report (WE5: France, Germany, Italy, Spain, UK) ABC Data SA 6

7 Purchasing power increase in the CEE region GDP growth Purchasing power parity Consumption growth 3.2% 3.3% 2.8% 1.9% 2.0% +20% +20% % +22% Czech Republic Hungary Slovakia Poland Romania Czech Republic Hungary Slovakia Poland Romania Average actual GDP change in CEE countries (%) Source: Main Statistical Office, Prognoza Konsensusu, PMR 2014 GDP per capita as per PSN ($ 000) Source: EIU, April 2016 ABC Data SA 7

8 ABC Data: distribution leader Estonia products Lithuania Latvia clients Poland Czech Republic and Slovakia Hungary brands Romania 300 manufacturers 8 countries Best CEE Distributor in 2009, 2010, 2011, 2012, 2014 and in 2016 ABC Data SA 8

9 Company s position in the region changed Poland #3 Romania Hungary #1 Modern IT distribution leader in the CEE region Baltic States #3 Czech Republic and Slovakia #5 #2 ABC Data is compared to world s largest IT distributors ABC Data SA 9

10 Strong position in the CEE region 82% sales increase in Romania 42% sales increase in Slovakia 36% 25% market share in Romania in terms of Asus products distribution New contracts in the region: Poland - Netgear ISP, Wacom Romania - Lenovo, TP Vision, Synology, Benq, Philips TV Hungary - Cisco CEE - Focus Telecom, Targus, PNY Technologies, BlackPoint sales increase in Hungary 50% increase in the number of active clients in the Baltic States ABC Data SA 10

11 Establishing regional structure Increasing number of transactions sales growth in subsidiaries Increasing number of regional contracts Local contracts expanded to other markets Large clients managed on the global level Growing headcount in Hungary and Romania Know-how transfer among the subsidiaries Standards and procedures unified on all markets Standardized processes implemented in the Group ABC Data SA 11

12 03 Strategy implementation

13 Best e-commerce solutions on the market InterLink Integrated B2B and B2C service platforms ResellerWeb Integrated with leading payment systems and service platforms Gateway Modern solutions supporting e- sales 9 languages Opportunity to integrate via Web Service Advanced comprehensive transaction support solutions Self-learning search engines 18 years 85% orders XML system allowing real-time exchange of transaction data Advanced platform offered under the SaaS model Project of migration to a new scalable advanced e-commerce engine commenced Continuous access to up-to-date information on trade offering and support in automation of sales processes Solutions used by several hundred resellers; continuously increasing number of users According to clients, the most reliable and most effective B2B solution on IT market ABC Data SA 13

14 Continuous development of e-commerce solutions Interdisciplinary team supporting sales processes and strategic project management in e-commerce Implementation of marketing automation tools based on the Big Data potential Commencement of CloudLink project (a platform supporting sales of Cloud products and services) Expanding the scope of InterLink platform through the newly commenced e-commerce channel extension project ABC Data SA 14

15 New investments: BiznesLink Co. Investing in an entity that develops open marketplace platforms: HelloIT, horecalink.pl, dentalink.pl Investing in development of e-commerce tools: HelloIT an equivalent of the BiznesLink platform equipped with additional functionalities Outsourcing of certain operations: increasing efficiency and releasing resources to be used to pursue other strategic e-commerce initiatives ABC Data SA 15

16 #1 Distributor of Apple brand in Poland Serving over 60% of Apple products distribution market 400 accessories for Apple products in the portfolio ABC Data SA 16

17 Cloud in Value+ Cloud market in Poland $ 450 M ABC Data Value+ + #1 distributor of Cisco products in Poland #1 distributor of APC products in Poland #1 distributor of Dell products in Poland Over channel partners in CEE CloudLink Cloud services channel partners in Poland in 2015 $ 130 M Source: September 2015, IDC Extending competencies Developing cloud services offering Rapid growth in the number of contracts ABC Data as an integrator of cloud systems Products from 90 Vendors: complementary product portfolio for cross- and up- selling ABC Data SA 17

18 Development of Mobile and Telco department ABC Data as the key supplier of hardware for telco operators 60% share in the market of distribution to telco operators Contracts and strong relationships with all telco operators in Poland Development of ABC Data follows the current trends and its portfolio is extended by new product categories: ABC Data Smart home ABC Data Smart health New sales channels for these products ABC Data Smart fit ABC Data is an authorized distributor of most popular mobile device brands: ABC Data recognized as Distributor of the Year 2015 by Mobility Trends ABC Data SA 18

19 Broad portfolio of radio and TV products and household appliances Sales growth by 10.9% 2014 vs Broad product offer 88.4% 2015 vs % Q1/2016 vs. Q1/ % Rapid growth of active SMB clients ABC Data SA 19

20 Rapid portfolio growth in high-margin categories Coming soon Stationery Complete directory in excess of 250 brands home & living lifestyle Toys The broadest product offer in excess of 350 brands professional electronics Tools and power tools Offer extended with A-brand products sports equipment automotive equipment ABC Data SA 20

21 Best in logistics management Over units orders in Q Over 7571 packages sent and serial numbers scanned each day in Q Warsaw Warehouse space over m 2 Sosnowiec 4 h This is how long it takes to deliver ordered goods in selected areas Soon: Hungary Expanding warehouse space in Romania: further expansion to Bulgaria and the Balkan States Bucharest New warehouse in Hungary ABC Data SA 21

22 Investing in human capital ABC Data Academy Positive productivity: incentive scheme for employees ABC Data Leadership Academy LEAN methodology based process optimization program Leadership development ABC Data Sales Academy : improving client service standards ABC Data English Academy: improving language skills High Performance Organization Efficiency measurement Involvement building Talent development Communication enhancement ABC Data: Solid Employer of 2015 ABC Data SA 22

23 04 Financial performance in Q1 2016

24 Financial performance in Q1/2016 Margin +10% Net debt -8% +82% Sales in Romania ABC Data SA 24

25 Selected data Ratio Q (PLN M) Q (PLN M) Year to year Sales revenue % EBITDA % Net profit % Net debt % ABC Data SA 25

26 Selected data: long-term perspective (PLN 000) Q Q Q Revenue Gross profit on sales Gross profit on sales (%) 4.4% 4.9% 5.4% EBITDA EBITDA (%) 1.1% 1.4% 1.2% Net profit Net profit % 0.6% 1.0% 0.7% ABC Data SA 26

27 Effects of reverse VAT on sales (PLN M) % 43% % 57% Q1/2015 Q1/2016 ABC Data SA 27

28 Gross sales margin (PLN 000) % % +10% 0.5% +10% % 0.8% 0.6% 0.4% 0.2% 0 Q Q Q Gross sales margin Gross sales margin [%] 0.0% ABC Data SA 28

29 SG&A: savings in Poland, rapid growth in the region (PLN 000) Quarter to quarter Comparison of Q4 for the last four years % % % % Q Q Q / / /2016 ABC Data SA 29

30 EBITDA (PLN 000) -5% % -34% Q Q Q ABC Data SA 30

31 Share of Q1 EBITDA in annual EBITDA (PLN 000) % 22% 21% 20% 27% Q1 Q2-Q4 ABC Data SA 31

32 Net profit (PLN 000) +7% % -34% Q Q Q ABC Data SA 32

33 Debt ratios remaining stable ,74 2,64 2, ,51 1, Q Q Q Q Q ,50 4,00 3,50 3,00 2,50 2,00 1,50 1,00 0,50 0,00 Consolidated net debt Consolidated EBITDA[PLN M] Net debt / EBITDA ABC Data SA 33

34 (Days) Cash conversion cycle ratios: change in product portfolio -32% +26% -15% +17% Q Q 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 / six months) is presented as the arithmetic mean of monthly ratios for a given 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 34

35 Selected balance sheet ratios Continuing operations [PLN 000] Q Q Inventories Trade and other receivables Trade and other liabilities Working capital % of sales 12M 5.9% 7.3% Financial debt Cash and cash equivalents Net debt EBITDA 12M Net debt / EBITDA 12M ABC Data SA 35

36 Turnover ratios: change in product portfolio Wskaźniki rotacji - zmiana portfolio produktowego (Days) (w dniach) Q Q Inventory turnover Receivables turnover Liabilities turnover Cash conversion cycle ABC Data SA 36

37 05 Dividend for 2015

38 One of the highest dividend rates on the Polish market 0.00 zł 0.00 zł 0.00 zł 0.00 zł 0.00 zł 0.00 zł 0.00 zł 0.00 zł - zł PLN 0.39 PLN 0.00 PLN % PLN % PLN 0.36 PLN 0.36 * 0% % 8% 10% 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% Dividend amount PLN 20 M PLN 30 M PLN 45 M PLN 45 M PLN 49 M * Recommended dividend current report no. 7/2016 of Dividend per share Dividend rate ABC Data SA 38

39 06 Outlook

40 ABC Data increase in the CEE market share 39% (2015 vs 2018) 16% increase in the Polish market share (2015 vs 2018) grows rapidly Internet of Things E-commerce #1 modern IT distributor in the CEE region in 2018 PLN 1 bn market value in 2018 is a leader sets trends Digitalization strategy Cloud ABC Data SA 40

41 Consistent strategy implementation Vision Strategic objective VALUE BUILDING AND DEVELOPMENT Leader in new IT distribution in the CEE region worth PLN 1 bn in 2018 Business Clients Vendors Position in CEE E-commerce Mobile and Telco VAD Value Added Distributor Building client loyalty and improving service quality, delivering added value, developing product offer and new services. Building new sales channels for the Marketplace. Developing partnerships with vendors through service quality improvement, added value and industry s best solutions. Extending the scope of contracts with vendors both in PL and CEE region. M&A Process Developing foreign markets Marketplace Mobile Logistics M&A Developing exports Cloud Telco VAD Organization Human capital (High Performance Organization) and IT capital (new ERP) Strong foundations Continuous improvement of quality of operations Developing distribution, the core business ABC Data SA 41

42 Thank you for your attention ABC Data SA ul. Daniszewska Warszawa T F abcdata.eu Bratislava Bucharest Budapest Prague Riga Tallinn Warsaw Vilnus