A leading player in the European ITC* Distribution Industry * Information Technology, Telecommunication, Consumer Electronics

Transcription

1 A leading player in the European ITC* Distribution Industry * Information Technology, Telecommunication, Consumer Electronics 1

2 Disclaimer This management presentation in both oral and written form (together the Presentation ) has been prepared by ALSO Holding AG ( ALSO ) The Presentation contains selected information and does not purport to be complete. Any estimates and projections involve significant elements of subjective judgement and analysis, which may or may not be correct. Accordingly, each recipient, prior to making any decision with regard to business relations with ALSO, should conduct an investigation of its own regarding the chances and risks connected with such relations. Neither ALSO nor any of its affiliates, members, employees or agents, or any of its direct or indirect shareholders provide or have the authority to provide any guarantee or warranty (expressed or implied) or assume any responsibility or liability whatsoever with respect to the authenticity, origin, validity, accuracy or completeness of the information and data contained or made in the Presentation, or assume any obligation for damages, losses or costs resulting from any errors or omissions contained in the Presentation. ALSO does not assume any obligation to update and/or revise the Presentation or the information upon which it has been based. 2

3 Agenda Company Industry Competitive Position, Key Figures Strategy, Outlook, Investment Opportunity Q&A 3

4 Company overview Europe's third largest distribution and logistics company for IT, Telecommunication and Consumer Electronics, with 6.3 bn EUR net sales in 2012 and ~3 000 employees Active in12 European countries, market leader in 7 of them More than products from 350 vendors Shareholding structure as of December 31,

5 ITC Distribution Industry Structure, Value proposition, Attractiveness, Risks 5

6 Channel ITC Distribution important part of value chain HW/SW Vendors (Apple, Cisco, Dell, HP, IBM, Microsoft, Samsung ) ITC-Distributors (ALSO, Ingram, TechData, ) Corporate Resellers VAR s Resellers Business Users Private Users large medium small (SOHO) 6

7 ITC Distribution sustainable value proposition 24 hour availability Stock management, logistics not a core competence of reseller Choice Multi-vendor end user infrastructure Credit Resellers need to finance cash cycle Supply chain management Complex purchase-to-ship process, different for each vendor Customer breath for vendors Distributors reach more than resellers across Europe Even DELL (previously direct marketer) has turned to distributors 7

8 COGS ITC Distribution very profitable business Assumptions Sales 100 GM = 5% EBIT = 1.5% GM EBIT 100% 80% Traditional view ROS = Return on sales Alternative views ROMA = Return on margin ROVA = 60% 40% 20% 0% Return on value added EBIT = 1.5% of Sales EBIT = 30% of Gross Margin ROS ROMA ROVA OPEX EBIT EBIT = 43% of Value Added 8

9 ITC Distribution resilient sales/margin model With 30% lower sales still break-even EBIT! Value (Index) Value (Index) Gross Profit Sales OPEX COGS EBIT Revenue decline % Revenue decline %

10 ITC Distribution successful risk management Inventory Price protection clauses (typically 30 days) Active stock turn management Bad debt Account receivables insurance Highly developed own credit risk management systems ALSO-Actebis Unit DIO 2 days Total stock provision % of sales 0.18% 0.16% 0.15% Annual bad debt 3 % of sales 0.07% 0.06% 0.05% 1 Actebis only 2 based on annualized December sales 3 actual losses + use of provisions, but excluding A/R insurance premium 10

11 Competitive Position and Key Figures 11

12 ALSO top 3 players have still < 50% of market Net Sales in Europe FY 2012 in bn EUR Tech Data* Ingram Micro** ALSO** Avnet*** SerCom**** Esprinet** Total European distribution market > 60 bn *) Nov Oct **) Jan. Dec ***) Jan. Dec. 2012/only Technology Solutions ****) Oct Sept

13 ALSO a leading player with superior profitability ALSO Tech Data (Europe) Ingram (Europe) Revenue 2012 (meur) Rank in Europe # Countries # Market leader positions EBIT FY 2012 (reported) 1.34% 1.06% 0.97% Profitability Index

14 ALSO key figures HY vs. HY HY 2013 HY 2012 EUR Mio. EUR Mio. Net sales % % Gross margin % % Operating profit (EBIT) % % Net profit Group (EAT) % % Total assets % % Equity % % Cash flow before changes in WC Cash flow from operations Free cash flow Net cash flow

15 Strategy Outlook Investment Opportunity 15

16 Strategic framework for ALSO MORE-Program defines ALSO strategy 16

17 «MORE» strategy 2013 «Maintain»: Maintain / increase market shares in more profitable segments is first priority «Optimize»: Migrate IT platform in LV and LT to group wide SAP Introduce business intelligence tool to increase the analytical capabilities of the operational business Profit Improvement Program (PIP) and Process Optimization Program (POP) in all regions «Reinvent»: Unbundling of the Solutions, Service, and Supply business across the Group to ensure a sustainable expansion of the value offerings and business opportunities «Enhance»: Further consistent examination of acquisition opportunities in various regions and business segments 17

18 Growth opportunities ahead Business expansion Share gains Industry consolidation New vendors (e.g. Apple, Samsung) New product categories (e.g. white goods) Services Business extension Getting closer to the end customer (e.g. Managed Print Services) Geographical extension Focus is on EMEA 18

19 EAT perspective Current EAT guidance for FY 2013 is MEUR Mid-term EAT goal is MEUR Additional EAT of 10 MEUR p.a. from 2016 onwards PPA from merger between ALSO and Actebis will lapse in February

20 Attractive investment opportunity Attractive industry Little or no fixed assets Low capital requirements Technological innovation creates and drives new market segments Attractive business Sustainable value proposition Resilient business model Limited and manageable risks Highly profitable (returns on margin, returns on value added) Attractive player Very strong competitive position Superior profitability Untapped growth and earnings potential 20

21 ALSO the leading, customer-oriented ITC provider. 21