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2007 results. By: Siarhey Kostevitch, CEO Marios Christou, CFO Costas Tziamalis, IR. 29 February 2008. Important notice. - PowerPoint PPT Presentation
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29 February 2008
2007 results By: Siarhey Kostevitch, CEO
Marios Christou, CFO
Costas Tziamalis, IR
2007 results release Page 2
04/21/23 00:27IBD\ING\War O\P\X20070976.9
Important notice
This presentation contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from the anticipated results as a consequence of certain risks and uncertainties, including but not limited to general economic conditions in the markets in which ASBISc operates, and other risks detailed from time to time in the company’s reports. See Risk Factors in the prospectus.
2007 results release Page 3
04/21/23 00:27IBD\ING\War O\P\X20070976.9
Company and market overview
2007 results release Page 4
04/21/23 00:27IBD\ING\War O\P\X20070976.9
Introduction to ASBIS
• Leading IT distributor across EMEA markets
• particularly strong in the FSU (nearly 50% of sales), the Czech Republic, Slovakia, Romania and Poland
• Established in 1990 in Minsk, headquartered in Limassol (Cyprus) since 1995
• First choice distribution partner for global industry suppliers
• Top ranking (1 to 3 place), preferred regional distribution partner for Intel, AMD, Seagate, Samsung, Microsoft, Toshiba
• Wide product and IT component portfolio, distributed on a ‘one-stop-shop’ basis
• CPUs, HDDs, other components, laptops, peripherals, and accessories
• Increasing share of private label, high-margin products and accessories marketed under Prestigio and Canyon brands
• Distribution network physically present in 23 countries
• We reach 14,000 customers in 70 countries owing to unique B2B on-line solution applied to over 50% of sales value
• Experienced management and strong operational and financial controls
2007 results release Page 5
04/21/23 00:27IBD\ING\War O\P\X20070976.9
2007 highlights
• Revenues up 39% to US$ 1,397 million
• Gross profit up by 43% to US$ 68 million. Gross profit margin up to 4.9%
• EBITDA up by 54% to US$ 28 million and EBITDA margin up to 2%
• Net profit increased by 97% to US$ 19 million
• Earnings per share of US$ 0.38, up 92% over 2006
• Private brands total revenues increased by 34%to 103 million
• Listing on the WSE on 30 October 2007
• Delisting from AIM
• Asbis appointed Toshiba distributor in Saudi Arabia
• Asbis appointed Dell distributor in Russia, Bulgaria, and Middle East
2007 results release Page 6
04/21/23 00:27IBD\ING\War O\P\X20070976.9
Financial results
2007 results release Page 7
04/21/23 00:27IBD\ING\War O\P\X20070976.9
Results improvements
14.312.616.1
25.7
8.4 11.1
18.7
930.4
1,008.8
1,397.7
67.9
47.7
38.4
18.3
27.6
2005 2006 2007
US
$m
Revenues Gross profit EBITDA EBIT Net profit
4,1%
4,7%4,9%
2,0%1,8%
1,5%1,4%
1,8%1,6%
0,9%
1,3%1,1%
0%
1%
2%
3%
4%
5%
2005 2006 2007
%
Gross margin EBITDA margin EBIT margin Net margin
Margins (%)Key historical data (US$m)
20
40
60
800
1,000
1,200
1,400
2007 results release Page 8
04/21/23 00:27IBD\ING\War O\P\X20070976.9
Revenue by markets
Geography of operations – Revenues growth rate by country (2007)Revenues by country – 2007
9.5%
15.9%
28.5%
4.0%
3.9%
4.3%4.8%
Russia Ukraine Slovakia Poland
Romania UAE Other
Over 60% of the total sales in 2007 generated by top 5 countries
25% 25%
41% 43% 44%48%
53%
66%
0%
20%
40%
60%
80%
100%
2007 results release Page 9
04/21/23 00:27IBD\ING\War O\P\X20070976.9
Revenue by products
Products – Three year CAGR in revenue by product (2005-2007)
CPU 28.8%
HDD 19.0%Software 11.3%
Laptops 8.3%
RAM 4.5%
Mainboards & VGA cards 4.6%
Display 3.1%
Revenue breakdown by value (2007)
27% 28% 29%
51%
74%
107%
26%
21%
8%
0%
20%
40%
60%
80%
100%
Hd
d
PC
de
sk
top
s
Ma
inb
oa
rds
an
d
VG
A
CP
Us
Se
rve
rs
Fla
sh
me
mo
ry
Ac
ce
ss
ori
es
an
d
mu
ltim
ed
ia
So
ftw
are
La
pto
ps
2007 results release Page 10
04/21/23 00:27IBD\ING\War O\P\X20070976.9
Private brands revenues and profit contribution
4,012
7,478
11,655
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2005 2006 2007
Private brands revenue (2005-2007) Private brands gross profit contribution (2005-2007)
53,580
76,466
102,937
0.00
20,000.00
40,000.00
60,000.00
80,000.00
100,000.00
120,000.00
2005 2006 2007
76,466
102,937
0
20,000
40,000
60,000
80,000
100,000
120,000
2006 2007
US
$m
34.6%
Private brands revenue growth (2007)Gross profit growth (2005-2007)
4,012
7,478
11,655
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2005 2006 2007
86.4%
55.9%
2007 results release Page 11
04/21/23 00:27IBD\ING\War O\P\X20070976.9
2007 cash flow
0
5
10
15
20
25
30
35
40
45
50
Opening cashposition
Net cash flow fromoperations
Issue of shares Proceeds fromloans
Dividend Capex Closing cashposition
13
1
17
7
1
29
8
2007 results release Page 12
04/21/23 00:27IBD\ING\War O\P\X20070976.9
Future perspective
2007 results release Page 13
04/21/23 00:27IBD\ING\War O\P\X20070976.9
11.413.7
15.217.2
19.421.6
0
5
10
15
20
25
2005 2006 2007 2008 2009 2010
US
$bn
Market overview
• Number of PCs worldwide expected to almost double before it reaches saturation
• Strong position of local PC manufacturers in the emerging markets
• IT products increasingly affordable with shortening life cycles
• Faster IT sector growth in the emerging markets underpinned by
- higher economic growth
- historically lower IT spending as a percentage of GDP
- lower level of PC ownership
- expansion of internet usage
• CEE IT distribution sector projected to grow at 14.0% CAGR (by volume) and 13.6% (by value) to reach 24.7 million PCs per annum, worth US$21.7bn in 2010
IT spending as a percentage of GDP by region (2005)CEE growth market by value of PCs shipments (US$bn)
PC penetration level (June 2006)
79.4
58.246.4
27
23.5
22.617.1
15.7
12.310.4
0 20 40 60 80 100
US
UKGermany
Spain
GreeceCzech Republic
Hungary
PolandRussia
Rest of Europe
1.6%
2.3%
3.4%3.8%
0%
1%
2%
3%
4%
5%
FSU CEE US UK
% o
f GD
PCAGR = 13.6%
Source: Gartner
Source: IDCSource: IDC
PCs/100 head of population
2007 results release Page 14
04/21/23 00:27IBD\ING\War O\P\X20070976.9
Forthcoming plans
• Expected further significant growth in the Middle East:
- Acquisition of a warehouse in Dubai (in Jebel Ali free trade zone) to provide support to this developing region
- Likely establishment of a new subsidiary of ASBIS in the Kingdom of Saudi Arabia – following Toshiba’s selection of ASBIS as its major distribution partner in the country.
• Final stage of establishing of a company in Turkey – the Turkish market expected to significantly contribute to ASBIS further growth towards the end of this year and in the years to come.
• Improvement of operational efficiency – beginning of construction of a warehouse and office space in Bratislava, Slovakia.
• Good perspectives for laptops market growth expected to have a positive impact on ASBIS operations, thanks to contracts signed with Toshiba and Dell in the fourth quarter 2007.
2007 results release Page 15
04/21/23 00:27IBD\ING\War O\P\X20070976.9
Q & A