Asbisc Enterprises Plc · GPW:ASB
Asbisc Enterprises — Q3 2018 Earnings Presentation
23 slides from Asbisc Enterprises's earnings presentation, Nov 7, 2018
Slide 1: 3Q '18 and 9M '18 Results
REVENUES AND PROFITS BEAT EXPECTATIONS 3Q ‘18 AND 9M ‘18 RESULTS 7th NOVEMBER 2018
Slide 2: Disclaimer
DISCLAIMER This presentation (the “Presentation”) was prepared by ASBISc Enterprises Plc (the “Company”) with a due care. Still, it may contain certain inconsistencies or omissions. The Presentation does not contain a complete or thorough financial analysis of the Company and does not present its st
Slide 3: Agenda
AGENDA 3Q ‘18 BUSINESS UPDATE 3Q ‘18 and 9M ‘18 FINANCIAL OVERVIEW FY 2018 OUTLOOK Q&A BACK-UP 3
Slide 4: Leading IT Partner in Emerging Markets of EMEA
LEADING IT PARTNER IN EMERGING MARKETS OF EMEA Headquarters in Cyprus > 30,000 active PRAGUE customers in 60 countries worldwide Subsidiaries in 24 countries, local presence in key countries 2 distribution centers DUBAI (Prague, Dubai) 1,500 employees with expertise of local markets 4
Slide 5: A Move Towards Value-Add Business
A MOVE TOWARDS VALUE-ADD BUSINESS VAD Value Add Distribution allows offering of services attached to products sold. We have some 15,000 Apple products and constantly business gives upgrade our product us new growth offering. opportunities: new countries IoT and new Internet of Things products. Launc
Slide 6: A Broad Product Portfolio
A BROAD PRODUCT PORTFOLIO 15,000 products in portfolio PC and server Desktop components and mobile PC Complete solutions for every customer in every market segment. Software Smartphones Prestigio and Canyon own brands in Value add Cloud Services existence for > 15 + 5USD . 1m% solutions years – acce
Slide 7: Key 3Q '18 Events
KEY 3Q ‘18 EVENTS STRONG GUIDANCE DIVIDEND MONTHLY DATA Announcement of an Strong double-digit Publication of upgraded interim dividend payment revenue estimates for FY 2018 guidance from 2018 earnings, as July–September 2018 approved by BOD on 6th November 2018 Strong performance of Apple business
Slide 8: 3Q '18: An Excellent Quarter
3Q ‘18: AN EXCELLENT QUARTER Strong growth in revenues. REVENUES GROSS PROFIT US$ 532.3 million US$ 25.6 million Strong gross profit + 4 3 % Yo Y + 2 8 % Yo Y growth. SG&A costs under control. GROSS PROFIT NET INCOME MARGIN US$ 4.2 million 100% YoY growth in 4.8% + 1 0 0 % Yo Y net income. 8
Slide 9: Strong Growth in All Regions
STRONG GROWTH IN ALL REGIONS Strong YoY growth in all REVENUES BY REGIONS (US$ m) FSU countries in 3Q ‘18. 600 Share of FSU region 500 reached almost 51% in 3Q ‘18 revenues 400 300 200 Russia remained the No. 100 1 country while Ukraine 0 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 followed FSU
Slide 10: Strong Smartphone Growth
STRONG SMARTPHONE GROWTH Strong smartphones REVENUES BY LINES (US$ m) business driven by 400 iPhone sales 300 200 Significant market 100 share in both CPUs and Accessories & 0 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q 18 3Q18 Multimedia CPUs HDDs Laptops SSD Other Laptops growth driven REVENUES BY
Slide 11: Strong 3Q '18 Results
STRONG 3Q ‘18 RESULTS Strong growth in top- US$ m 3Q ‘18 3Q ‘17 YoY line and gross profit Revenue 532.3 372.8 43% Gross profit 25.6 20.0 28% Gross profit margin at Gross profit margin 4.80% 5.36% -0.6 pp 4.80% SG&A costs 17.2 13.4 28% Profit from operations 8.4 6.6 27% Expenses under control O
Slide 12: Robust Revenue Growth
ROBUST REVENUE GROWTH 3Q ‘18 revenues REVENUES reached US$ 532.m, up 532 600 542 80% 43% YoY 503 463 60% 400 364 373 290 280 40% 276 Gross profit margin 20% 200 reached 4.8% in Q3 ’18. 0% In Q3 ‘18 gross profit 0 -20% 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 margin improved Revenue (US$ m) Y
Slide 13: SG&A Costs Grow Below Sales
SG&A COSTS GROW BELOW SALES 3Q ‘18 selling expenses SG&A COSTS (US$ m) grew at a slower pace 20 than revenues 15 5,7 4,9 6,4 4,7 10 4,2 4,4 Administration expenses 4,3 4,3 3,9 grew in 3Q ‘18 by 28% 5 7,1 9,1 6,9 7,2 8,9 11,7 11,1 11,9 11,5 mainly to support growing 0 operations in all regions 3Q
Slide 14: Strong 9M '18 Results
STRONG 9M ‘18 RESULTS Strong top-line and US$ m 9M ‘18 9M ‘17 YoY gross profit growth Revenue 1,498.5 943.1 59% Gross profit 68.8 50.2 37% Gross profit margin at Gross profit margin 4.59% 5.32% -0.7pp 4.59% SG&A costs 51.3 35.7 44% Profit from operations 17.5 14.5 21% Expenses under control Op
Slide 15: Indebtedness at Safe Level
INDEBTEDNESS AT SAFE LEVEL Strong increase in cash US$ m 9M ‘18 9M ‘17 YoY position in seasonally Short term borrowings 79.0 78.2 1% NWC intensive quarter (no factoring) Factoring creditors 52.7 46.5 13% High cash levels, Short term borrowings despite cash being used 131.7 124.7 6% (incl. factor
Slide 16: Cash Engaged in Working Capital
CASH ENGAGED IN WORKING CAPITAL High revenue growth resulted in the need to NET WORKING CAPITAL (US$ m) involve more cash into NWC: 29% of sales NWC: 44% of sales working capital 199 204 179 114 Capex comprises of outflows for on-going investments in fixed -156 assets and intangibles -224 9M 18
Slide 17: Key Drivers of 2018
KEY DRIVERS OF 2018 Significant increase to come from gaining new customers in new FURTHER GROWTH channels in the markets we operate in. Major focus in IN APPLE Kazakhstan, Ukraine and Belarus. Strong growth is also expected in smaller markets of Azerbaijan, Georgia, Armenia. Large business project
Slide 18: 2018 Upgraded Guidance
2018 UPRADED GUIDANCE REVENUE Between US$ 2.1bn and US$ 2.2bn NET INCOME Between US$ 11.5m and US$ 13m ASSUMPTIONS 2 DISTRIBUTION CENTRES A stable situation in key FSU markets and in key Growth in gross profit FSU currencies (not worse than in H2 2017). margin and positive A similar YoY competitive
Slide 19: ASBIS Key Strengths
ASBIS KEY STRENGHTS A unique A diversified portfolio Flexible and geographical of hardware, software adaptive in market presence across all and own brands changes through a Emerging Markets of coupled with strong long lasting EMEA. relationships with all management. key IT vendors. 19
Slide 20: ASBIS Key Risk Factors
ASBIS KEY RISK FACTORS Political and The Group’s ability to The Group’s ability economic stability in increase revenues and to increase gross Europe and our market share while profit margins regions. focusing on profits The Group’s ability to The Group’s ability Currency volatilities control expense
Slide 21: Shareholder Structure
SHAREHOLDER STRUCTURE Number of shares % of share capital & votes & votes 36,83% KS Holdings Ltd* 20,443,127 36.83% 63,14% Treasury shares 13,389 0.02% Free-float 35,043,484 63,14% TOTAL 55,500,000 100% 0,02% *Siarhei Kostevitch holds shares as the ultimate beneficial owner of KS Holdings Ltd KS Hol
Slide 22: Glossary
GLOSSARY FSU Former Soviet Union countries, including Russia, Ukraine, Kazakhstan, Belarus, Georgia etc. CEE Central & Eastern Europe; the region includes countries like Czech Republic, Slovakia, Hungary, Poland, Romania, Bulgaria etc. MEA Middle East (UAE, Iraq, Qatar and other Gulf states) and Afr
Slide 23: Investor Relations
INVESTOR RELATIONS Tziamalis Constantinos tel: +357 25857188 mail: [email protected] HEADQUARTERS 43, Kolonakiou Street, Diamond Court 4103 Ayios Athanasios Limassol - Cyprus Phone: + 357 2 5857 101 www.asbis.com