Action S.a. · GPW:ACT
Action — FY2013 Earnings Presentation
30 slides from Action's earnings presentation, Mar 20, 2014
Slide 1: Presentation of Financial Results: Record Year for the Action Group
PRESENTATION OF FINANCIAL RESULTS RECORD YEAR FOR THE ACTION GROUP January-December 2013 Warsaw, 20 March 2014
Slide 2: Presentation Outline
PRESENTATION OUTLINE 1. Major events in 2013 2. Financial results 3. Companies and projects of the Action Group in 2013 4. International expansion – DEVIL 5. Private labels 6. Directions of development 7. Foundations of the Action Group 8. Issue of shares 2
Slide 3: Major Events
MAJOR EVENTS KEY ELEMENTS OF SUCCESS GROWTH FACTORS • Entry into the German market through Devil GmbH Contracts with all major producers • Contracts signed with leading producers of smartphones and tablets • Contracts signed with all key producers of household appliances and consumer electronics New
Slide 4: Presentation Outline
PRESENTATION OUTLINE 1. Major events in 2013 2. Financial results 3. Companies and projects of the Action Group in 2013 4. International expansion – DEVIL 5. Private labels 6. Directions of development 7. Foundations of the Action Group 8. Issue of shares 4
Slide 5: Action Group's Sales Dynamics
FINANCIAL RESULTS ACTION GROUP’S SALES DYNAMICS Record sales in Q4 2013 and record results in December – over PLN 500 million Steady growth trend in recent years Sales dynamics (in PLN 4 749 183 thousand) 3 515 189 2 804 768 2 105 901 +35.1% 1 487 970 1 147 902 1023 304 +29.6% +25.3% 634 585 +12.2%
Slide 6: Action Group's Net Profit Dynamics
FINANCIAL RESULTS ACTION GROUP’S NET PROFIT DYNAMICS Record net profit in Q4 2013 Steady growth trend in recent years Net profit dynamics (in PLN thousand) 61 608 48 319 19 371 42 409 16 825 +27,5% 14 998 26 288 +15,1% 10 944 +13,9% +12,2% +61,3% +37,0% 2010 2011 2012 2013 Q4 2010 Q4 2011 Q4 2012 Q4
Slide 7: Action Group's Selected Financial Figures
FINANCIAL RESULTS ACTION GROUP’S SELECTED FINANCIAL FIGURES Q4 2012 Q4 2013 % 2012 2013 % Sales revenues 1,147,902 1,487,970 29.6% 3,515,189 4,749,183 35.1% Gross profit on sales 68,504 99,225 44.8% 226,806 297,108 31.0% Gross margin on sales 6.0% 6.7% 0.7% pp 6.5% 6.3% -0.2% pp Sales and marketing
Slide 8: Action Group's Liquidity
FINANCIAL RESULTS ACTION GROUP’S LIQUIDITY Liquidity ratios 31/12/2013 31/12/2012 Current ratio (current assets / current liabilities) 1.19 1.20 Quick ratio (liquid current assets / current liabilities) 0.75 0.70 Debt ratios 31/12/2013 31/12/2012 General debt ratio 73.87% 71.19% Equity debt ratio 26
Slide 9: Balance Sheet Structure
BALANCE SHEET STRUCTURE EFFECTIVE MANAGEMENT OF FINANCES 2011 2012 2013 1 Inventory 297,541 315,808 369,599 2 Trade receivables 326,700 439,345 593,823 3 Current liabilities 542,138 636,428 844,722 4 Working capital 90,458 126,681 160,984 5 % of sales 3.23% 3.60% 3.39% 6 Interest debt 94,702 106,646
Slide 10: Cash Flows
CASH FLOWS ACTION GROUP Dynamics of changes in cash flows of ACTION GROUP 120 000 100 000 80 000 60 000 in PLN Thousand 40 000 20 000 0 -20 000 -40 000 -60 000 -80 000 2011 2012 2013 Net flows from operating activities 5 059 14 741 101 341 Net flows from investing activities -5 926 -5 947 -17 081 Ne
Slide 11: Turnover Ratios
TURNOVER RATIOS FURTHER EFFICIENCY IMPROVEMENT UNDOUBTEDLY THE SHORTEST CASH CONVERSION CYCLE COMPARED TO COMPETITORS 2013 Inventory turnover 30.30 Receivables turnover 45.64 Payables turnover 62.34 Cash conversion 13.60 11
Slide 12: Presentation Outline
PRESENTATION OUTLINE 1. Major events in 2013 2. Financial results 3. Companies and projects of the Action Group in 2013 4. International expansion – DEVIL 5. Private labels 6. Directions of development 7. Foundations of the Action Group 8. Issue of shares 12
Slide 13: Action Group's Companies and Projects: Partner Programme
ACTION GROUP’S COMPANIES AND PROJECTS DEVELOPMENT OF THE PRODUCTS AND SERVICES OFFERED DYNAMIC DEVELOPMENT OF PARTNER PROGRAMME SPECJALIŚCI RTV/AGD Increase in the number of partner showrooms Key events in 2013 202 showrooms • Conference for all participants of the partner 25 showrooms programme 201
Slide 14: Retail Chain Development, E-commerce
ACTION GROUP’S COMPANIES AND PROJECTS RETAIL CHAIN DEVELOPMENT, E-COMMERCE SFERIS RETAIL CHAIN E-COMMERCE • Sales growth: Gradual sales growth: 29.6 % (2012 vs. 2013) 197 SALES POINTS COUNTRYWIDE 7.21% (2012 vs. 2013) • Consistent expansion of product portfolio 687 DROP POINTS • Digital distribution
Slide 15: B2B Offer Development and Education
ACTION GROUP’S COMPANIES AND PROJECTS DEVELOPMENT OF PRODUCTS AND SERVICES OFFERED B2B OFFER DEVELOPMENT ACTION ENTERPRISE Digital Signage - B2B Visual Displays • No. 1 distributor of • Growing number of customers: + 51.7% • Leader in Digital Signage sales • Wide array of customers: 1596 in 2012. 24
Slide 16: Presentation Outline
PRESENTATION OUTLINE 1. Major events in 2013 2. Financial results 3. Companies and projects of Action Group in 2013 4. International expansion – DEVIL 5. Private labels 6. Directions of development 7. Foundations of the Action Group 8. Issue of shares 16
Slide 17: International Expansion: Devil GmbH Development
INTERNATIONAL EXPANSION DEVIL GmbH DEVELOPMENT INTENSIVE EXPORT DEVELOPMENT • Turnover growth by 52% 2012 vs. 2013 • Export to 45 countries: including all European countries, • Company founded based on unencumbered assets of United Arab Emirates, Hong Kong, Devil AG. Singapore, Israel, Russia • EUR
Slide 18: International Expansion: Prospects
INTERNATIONAL EXPANSION PROSPECTS • Takeover of 100% shares by ACTION S.A. • Change of business name to ACTION EUROPE GmbH • Adjustment of organizational structure to ACTION S.A • Integration of IT systems • Adding to the base of goods and providing customers with a complete product base • Improveme
Slide 19: Presentation Outline
PRESENTATION OUTLINE 1. Major events in 2013 2. Financial results 3. Companies and projects of Action Group in 2013 4. International expansion – DEVIL 5. Private labels 6. Directions of development 7. Foundations of the Action Group 8. Issue of shares 19
Slide 20: Private Labels
PRIVATE LABELS CONSISTENT DEVELOPMENT ACTIVE JET, ACTIS – UNCHALLENGED MARKET LEADER PENTAGRAM – DYNAMIC DEVELOPMENT Tablets, network devices, mobile • ActiveJet and Actis as the leader of the alternative consumables market phones • Introduction of lighting products to new retail chains: • Over 472,
Slide 21: Presentation Outline
PRESENTATION OUTLINE 1. Major events in 2013 2. Financial results 3. Companies and projects of Action Group in 2013 4. International expansion – DEVIL 5. Private labels 6. Directions of development 7. Foundations of the Action Group 8. Issue of shares 21
Slide 22: Directions of Development for the Action Group
DIRECTIONS OF DEVELOPMENT FOR THE ACTION GROUP DEVIL GMBH Building a strong distributor position in Germany BUSINESS DEVELOPMENT IN POLAND • Development of the e-commerce offer LOGISTICS CENTRE ACTION S.A. • Development of household appliance and audio/video division • Enterprise offer development •
Slide 23: Extension of the Logistics Centre
DIRECTIONS OF DEVELOPMENT EXTENSION OF THE LOGISTICS CENTRE THE MOST MODERN LOGISTICS CENTRE IN POLAND NEW LOGISTICS SOLUTIONS EXCELLENT LOCATION • Automated case-picking system AKL "Mini Load" handling 20,000 cases • Ultimately approx. 5 km of modern conveyor lines • New, three-storey cross-dock wa
Slide 24: Extension of the Logistics Centre: Warehouse Parameters and Cost
DIRECTIONS OF DEVELOPMENT FOR ACTION GROUP EXTENSION OF THE LOGISTICS CENTRE SIGNIFICANT IMPROVEMENT OF WAREHOUSE PARAMETERS OWN WAREHOUSE EXTENSION COST SPACE 32,000 SQ M 52,000 SQ M 2013 2014 Total extension cost: PLN 76,000,000 • Construction work: PLN 57,150,000 WAREHOUSE • Financing: CAPACITY -
Slide 25: Project's Competitive Advantages
DIRECTIONS OF DEVELOPMENT FOR ACTION GROUP EXTENSION OF THE LOGISTICS CENTRE PROJECT’S COMPETITIVE ADVANTAGES COST-EFFICIENCY UNIVERSALITY • Short project completion period: - own team of warehouse analysts and programmers FOR VARIOUS GROUPS OF - original, innovative Warehouse Management System soft
Slide 26: Presentation Outline
PRESENTATION OUTLINE 1. Major events in 2013 2. Financial results 3. Companies and projects of Action Group in 2013 4. International expansion– DEVIL 5. Private labels 6. Directions of development 7. Foundations of the Action Group 8. Issue of shares 26
Slide 27: Foundations of the Action Group
FOUNDATIONS OF THE ACTION GROUP GROWTH AREAS STRONG DISTRIBUTOR GLOBAL LOGISTICS Presence in two countries already: Poland and over 29 thousand square meters of storage space Germany over 2.5 km of modern conveyor lines up to 45 thousand parcels shipped daily – capacity of the main warehouse Over 35
Slide 28: Presentation Outline
PRESENTATION OUTLINE 1. Major events in 2013 2. Financial results 3. Companies and projects of Action Group in 2013 4. International expansion– DEVIL 5. Private labels 6. Directions of development 7. Foundations of the Action Groupsue of shares 8. Issue of shares 28
Slide 29: Issue of Shares
ISSUE OF SHARES ISSUE OBJECTIVES • Sustaining the dynamic development of the Corporate Group • Expansion on the German market – development of the German company to the level comparable to ACTION S.A. in a short time span – capital increase in the German company • Maintaining good financial standing
Slide 30: Contact for media and capital market representatives
Contact for media and capital market representatives Anna Bielińska – Corporate Communications Manager Phone: 22 332 16 96, e-mail: [email protected] Dominika Lenkowska- Piechocka – Martis CONSULTING Agency Phone: 22 244 57 09, e-mail: [email protected] 30