1. Consolidated financial results H1 2016
Consolidated financial results H1 2016
26 August 2016

2. Strong position in the CEE region
Agenda
Achievements in H1 2016
Strong position in the CEE region
Performance of strategic initiatives in H1 2016
Financial results in H1 2016
Dividend for 2015
Outlook

3. 01
Achievements in H1 2016

4. Strong position in the region Performance of the strategy
Achievements in H1 2016
Strong position in the region
Performance of the strategy
Concluding an investment agreement for purchase of the controlling interest of shares in S4E
Consistent development in the areas of Value+, Mobile and Telco
Logistics services development – launching a new logistics centre in Hungary
Continuation of the High Performance Organization philosophy
Development of the light InterLink platform version for products outside the basic IT portfolio
Platform for the distribution of Cloud products, services and solutions
Increase of share in the national IT distribution market to 23% (in June)
Numerous new agreements in the CEE region and closer cooperation with Vendors
Steady growth of number of active clients
Significant sales increase in Romania (79%), Lithuania (20%) and Hungary (325%)
Continuing position of iSource as the Apple distribution in Poland leader (x2 sales increase)

5. Strong position in the CEE region02
Strong position in the CEE region

6. Strong position in the CEE region
325% in Hungary
Q1 2016/Q %
79% in Romania
20% in Lithuania
20% in Poland
Sales increase
52% in Hungary
13% in the Baltic States
8% CEE (without Poland)
Increase of number of active clients
The Czech Republic/ Slovakia
Romania
Hungary
Poland
CEE
New agreements in the region
and closer cooperation within the existing agreements

7. Distribution leader Budapest Logistics base development Warsaw
Launching a logistics centre in Hungary
Even more efficient customer care for customers from Hungary and Southern Europe
Logistics costs optimisation
Higher Customer Care quality
Warsaw
Sosnowiec
Budapest
Located in the logistics park – only 12 km from the business district of Budapest and in proximity of the M0 route which allows to get to the airport within 20 minutes
Managed by the leader in logistics services in Hungary
Bucharest

8. Performance of strategic initiatives03
Performance of strategic initiatives

9. Consistent performance of the strategy
Consistent performance of the strategy
DEVELOPMENT AND GROWTH OF VALUES
M&A
VAD
Position in CEE
E-commerce
Leader in the modern IT distribution in the CEE region - the evaluation of PLN 1 billion in 2018
Building loyalty of customers through improving quality of services, providing added value, developing the product offering and creating new services. Developing new sales channels for Marketplace
Developing partnerships with Vendors through improving quality of services, providing added value and the best solutions in the sector. Extending agreements with Vendors in PL and in the CEE region.
Growth of export
Marketplace
Cloud
Logistics
Mobile
Telco
Growth of foreign markets
Human capital (High Performance Organization) and IT capital (new ERP)
Continuous improvement of operations quality
Developing the core business - distribution
Mobile and Telco
Vision
Strategic objective
Business
Value Added Distributor
Customers
Vendors
Process
Organisation
Solid foundations

10. Development of the VALUE + area
The team of top-class engineers who advise, design and implement solutions under white-label partnership for integrators
11%
comprehensive product portfolio for cross- and up-selling
Vendors number increase
VALUE +
VAD
Broadline
NETWORK AND INFRASTRUCTURE
SECURITY
MONITORING
SERVERS AND STORAGE
NETWORK AND INFRASTRUCTURE
SOFTWARE

11. M&A as an important factor supporting growth
81.3%
of share capital
Controlling interest in the S4E share capital with the total number of shares amounting to 1,412,423
The biggest VAD distributor in Poland
Present on the market since 2001
Since August 2007 on the NewConnect market
PLN 19.8 – 25.4 mln
price dependent on the business objectives performance by the Sellers and S4E defined in the Investment Agreement
Cooperates with:
2-3 months
completion of the transaction
not later than on 31 March 2017

12. M&A as an important factor supporting growth
Growth through M&A
Execution of one of key business initiatives defined in the development strategy of the ABC Data Company for years
Consolidated revenues increase
increase up to PLN 1.5 billion in 2018 of the consolidated revenues of the Group from the VAD area products and services sales
Strengthening the market position
Real influence on increasing the ABC Data share in the national distribution market
VAD area development
Development of a broad and comprehensive VAD products and services portfolio in Poland and in the CEE region

13. Development of the e-commerce area
Finalised
In progress
Coming soon
Core ResellerWeb system change– adjustment and dynamic development of the ResellerWeb platform functionalities on the basis of the most popular services, i.e. online payments, logistics services, analytical systems or marketing automation
Implementation of further analytical solutions to use the potential of the data gathered on the e-commerce platforms of ABC Data ABC Data (Big Data)
Creating a specialised sales group
Developing the product catalogue to – the broadest on the market
Developing the offering with new product groups unrelated to IT – a complete product portfolio in the categories of Toys, Tools, Office Supplies
The light version of the InterLink platform for new product categories unrelated to IT
Platform for distribution of Cloud products, services and solutions
Mobile platforms increasing the range of InterLink – reaching users who prefer mobile devices

14. Investments in human capital
ABC Data Academy
Continuing initiatives increasing the employee competences
91 persons passed TOEIC under the ABC Data English Academy
8 trainings for 70 persons under the ABC Data Sales Academy
70 managers trained under the
ABC Data Leadership Academy
2 project groups under the ABC Data Lean Management
High Performance Organization
Performance measurement
Engagement increase
Talent development
Communication strengthening
Building engagement
Continuation of the ABC Data employee activation programme – initiatives and events aiming at integration and employee performance improvement

15. 04
Financial results in H1 2016

16. Selected financial data
Selected financial data
(in PLN thousands)
H1 2014
H1 2015
H1 2016
Revenues
Gross profit on sales
Gross profit on sales (%)
4.8%
5.5%
5.1%
EBITDA
35 185
39 004
18 533
EBITDA (%)
1.4%
1.7%
0.8%
Net profit
17 976
26 842
10 247
Net profit %
0.7%
1.1%
0.5%
Adjusted net debt
71 629*
95 618
* In June 2015 ABC Data received a refund on VAT amounting to PLN 62 million 16

17. Gross margin on sales Initiatives increasing the margin
(in PLN thousands)
+28%
-12%
Initiatives increasing the margin
VAD area development
Development of the CEE region
Development of high-margin product portfolio

18. SG&A H to H summary The last four quarters from recent years summary
(in PLN thousands)
H to H summary
The last four quarters from recent years summary
-0,2%
+14%
+2%
+22%
Lean Management
Implementing the High Performance Organization
Synergies with the development in the CEE region
Measures aiming to lower the costs

19. EBITDA
(in PLN thousands)
+11%
-52%

20. Net profit
(in PLN thousands)
+49%
-62%

21. Steady-state debt ratios
* In June 2015 ABC Data received a refund on VAT amounting to PLN 62 million

22. Cash Conversion Cycle ratios – modification of product portfolio
(in days)
+15%
-13%
-12%
+14%
CCC on average in the period
CCC at the end of the period
Cash Conversion Cycle determined as a sum of receivables and inventories turnover in days, reduced by the payables turnover in days.
Cash Conversion Cycle for a given period (Q/H) is presented as the arithmetic mean of monthly ratios for a given period. Individual components of monthly ratios have been calculated as relations of the level of the appropriate balance sheet items at the end of the month multiplied by 30 days, and then referred respectively, in case of receivables to the monthly revenues increased by VAT on sales, in case of inventories to internal sales costs in the month, whereas in case of payables to the internal sales cost in the month increased by VAT on purchased goods.

23. Selected balance sheet data
Continuing operations [in PLN thousands]
H1 2015
H1 2016
Inventories
Trade and other receivables
Trade and other liabilities
Working capital
12M sales %
5.1%
7.1%
Financial debt
61 668
Cash and cash equivalents
51 332
32 954
Adjusted net borrowing*
71 629
95 618
EBITDA 12M
66 541
48 744
Adjusted net borrowing*/ EBITDA 12M
1.08
1.96
* In June 2015 ABC Data received a refund on VAT amounting to PLN 62 million

24. Turnover ratios – product portfolio modification
(in days)

25. 05
Dividend for 2015

26. The highest rate of dividend on the Polish market*
The amount of dividend
PLN 20 mln
PLN 30 mln
PLN 45 mln
PLN 45 mln
*The highest average dividend rate in Poland in years
9.9%

27. 06
Outlook

28. 79% 20% x3 #1 #1 ABC Data … Strong corporate group
The Cloud platform development
Competitive advantage development
Leader in the Apple products distribution in Poland – over 60% of the market
Investments in human capital
The InterLink platform development (mobile and light versions) #1
Leader in VAD products, services and solutions distribution
Advantage thanks to market diversification
The logistics infrastructure development
Growth in the CEE region
79%
Sales increase in Romania
20%
Sales increase in Lithuania x3
Sales increase in Hungary

29. Thank you for your attention
ABC Data SA
ul. Daniszewska 14
Warszawa T F
abcdata.eu
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