Action S.a. · GPW:ACT
Action — Q2 2007/2008 Earnings Presentation
18 slides from Action's earnings presentation, January 2008
Slide 1: Financial Results for Q2 2007/2008
Financial Results for Q2 2007/2008 Dynamic growth of the distribution business enabled by efficient logistics
Slide 2: Key Events of Quarter 2
KEY EVENTS OF QUARTER 2 Sales dynamics of 33% Performance gain on further expansion of warehouse facilities – present area: 11,500 sqm Opera FIZ increased ownership share in the Company to 10.08 % All-times high share price of 35 PLN (7 December 2007) New brands added to the distribution offering: K
Slide 3: Results for Quarter 2
RESULTS FOR QUARTER 2 Sales revenue (PLN M) Operating profit (PLN M) Sales revenue increased by 33 % compared to Q2 2006/2007 Operating profit increased by 172 % compared to Q2 2006/2007 3
Slide 4: Results for Quarter 2: Gross margin and ROE
RESULTS FOR QUARTER 2 Gross margin (%) Gross margin increased by 1.5 pp compared to Q2 2006/2007 Return on Equity (ROE) increased by 9.4 pp * RoE based on net profit values for the last 4 quarters 4
Slide 5: Results for Half-Year 1
RESULTS FOR HALF-YEAR 1 Sales revenue (PLN M) Operating profit (PLN M) Sales revenue increased by over 28 % compared to half-year 1 of 2006/2007 Operating profit increased by nearly 169 % compared to half-year 1 5
Slide 6: Results for Half-Year 1: Margin and Net Profit
RESULTS FOR HALF-YEAR 1 Gross margin (%) Net profit (%) Gross margin increased by 1.7 pp compared to half-year 1 of 2006/2007 Net profit increased by 111.9 % compared to half-year 1 of 2006/2007 6
Slide 7: Detailed Financials
DETAILED FINANCIALS Q2 Q2 Q1-Q2 Q1-Q2 2006/200 2007/200 2006/200 2007/200 Change [PLN M] 7 8 Change 7 8 940 1 206 Sales revenue 527 912 701 281 32.8 % 001 458 28.3 % Gross sales revenue 35 537 57 447 61.7 % 57 643 93 691 62.5 % Gross sales margin 6.7 % 8.2 % 1.5 pp 6.1 % 7.8 % 1.7 pp Cost of sales a
Slide 8: General Administrative Costs
GENERAL ADMINISTRATIVE COSTS Q1-Q2 Q1-Q2 Change [PLN M] 2006/2007 2007/2008 Sales revenue 940 001 1 206 458 28.3 % General administrative costs 8 246 20 079 143.5 % Related to revenue 0.9 % 1.7 % 0.8 pp Q1-Q2 Q1-Q2 Change GAC exclusions 2006/2007 2007/2008 Executive stock options 0 3 388 Amortizatio
Slide 9: Target Achievement Level
TARGET ACHIEVEMENT LEVEL Sales revenue (PLN MM) Net profit (PLN MM) After 2 quarters of 2007/2008 the sales revenue forecast for 2007/2008 was achieved in 53.4 % In the same period the net profit reached 61.6 % of the annual target 9
Slide 10: Sales Structure
"4\ACTION SALES STRUCTURE © Action S.A. = Action Ukraina = Sferis A.pl 10
Slide 11: Implementation of Development Strategy
IMPLEMENTATION OF DEVELOPMENT STRATEGY Development of IT hardware distribution Further expansion of the distribution centre Development of sales systems Further growth of subsidiaries ACTION Ukraina, Sferis, a.pl Acquisition plans 11
Slide 12: Development of IT Hardware Distribution
DEVELOPMENT OF IT HARDWARE DISTRIBUTION Excellent distribution dynamics: The product range offered by ACTION totals to 15,500 items The Company serves over 9,000 customers per month Makes over 1,000,000 shipments per year It only takes 25 seconds to handle one item Current daily number of shipments
Slide 13: Development of Sales Systems: I-Serwis
DEVELOPMENT OF SALES SYSTEMS I-Serwis • English language version of that sales & communications platform implemented for export customers • The system holds the data of over 40,000 customers, 9,000 of whom shop at ACTION at least once per month • Over 100,000 orders are placed per month • Over 5 mil
Slide 14: Development of Sales Systems: I-Partner, Webserwis
DEVELOPMENT OF SALES SYSTEMS I-Partner • An electronic online sales system developed with independent resellers in mind • Currently used by 360 users • I-Partner provides our customers with 24/7 access to ACTION products Webserwis • A platform which integrates the sales system of ACTION with e-comme
Slide 15: Growth of Subsidiaries: Action Ukraina, A.pl
GROWTH OF SUBSIDIARIES ACTION Ukraina • At present the SHOK and KREZ chains operate a total of 15 shops • 3 more are planned to be opened in 2008 (Zaporizhia, Vinnytsia, Donetsk) A.pl • A constant growth of the number of new customers • Growing average order value • Product range expanded by adding
Slide 16: Growth of Subsidiaries: Sferis
GROWTH OF SUBSIDIARIES Sferis Quarter 2 of 2007/2008 saw the opening of 5 new shops at new locations and 5 partner shops Chain rebranding continues: the new visual identification implemented with 40 % of the shops Acquisition negotiations are pending Further shops to be opened by the end of June 200
Slide 17: Development Prospects
DEVELOPMENT PROSPECTS Steady growth of the commercial offer in the nearest future by approx. 10,000 new products Further expansion of the logistics and shipping centre by adding 2,400 sqm of space Focusing on export now easier thanks to the English language version of I-Serwis Participation in numer
Slide 18: Thank You for Your Attention
THANK YOU FOR YOUR ATTENTION 18