Transcript Slajd 1 - Action S.A.

Financial Results
for Quarter 1 of 2010
Sustainable profit, guaranteed future
18 May 2010
GROUP IN QUARTER 1 OF 2010
This presentation covers Quarter 1 of Reporting Year 2010, i.e. the period from 1 January through 31
March 2010.
On 1 January 2010 the Group aligned its reporting year with the calendar one. As agreed with KNF
(Financial Supervision Commission), the report for Q1 2010 compares its financial data against its
performance in the period from August through October 2008.
In Quarter 1 of the Reporting Year 2010, the ACTION S.A. Group earned a consolidated net profit
of PLN 8,020 M and ACTION S.A.'s individual net profit amounted to PLN 9,251 M
Net loss of subsidiary units dropped from PLN - 3,084 M in the compared Q3 2008/2009 to PLN 1,231 M in Q1 2010.
Quality of the Year Award and Golden Quality of the Year Award for ActiveJet brand.
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SELECTED FINANCIALS
ACTION S.A. Capital Group, January - March 2010
[in PLN thousand]
Quarter 1 2010
(January – March)
Quarter 1 2008/2009
(August - October)
Sales revenue
483,246
608,405
Gross profit on sales
39,660
62,372
8.2%
10.3%
27,316
31,770
Related to revenue
5.7%
5.2%
General administrative costs
5,421
6,788
Related to revenue
1.1%
1.1%
Other revenue and benefits
4,158
4,074
309
- 45,943
10,772
- 18,055
897
1,555
Net result
8,020
- 18,420
Net profit margin
1.7%
- 3.,0%
Gross margin on sales
Cost of sales and marketing
Other costs and losses
Operating result
Net financial costs
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QUARTER 1 AT ACTION S.A.
Comparable to the respective period of previous year
Sales revenue (PLN M)
482,120
Net profit (PLN M)
475,040
12,630*
8,610
-1,46 %
-27 %
Q3 2008/2009 (II - IV)
Q1 2009 (I - III)
Q1 2010 (I - III)
Q1 2010 (I - III)
• Net profit for Quarter 1 2010 is compared to that of Q3. 2008/2009 (February – April) because
the financial data for January through March 2009 is not representative due to the fact that the result for January 2009
includes exceptional margins on sales of goods purchased at significantly lower prices in 2008.
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MARKET IN QUARTER 1 2010
Q2 2009
Q3 2009
Q4 2009
Q1 2010
Q1 2010/
Q1 2009
PLN MM
PLN MM
PLN MM
PLN MM
+/-%
1,477
1,438
2,057
1,443
- 16.3%
357
298
278
230
- 12.0%
Large home
appliances
1,288
1,580
1,472
1,067
- 16.5%
Small home
appliances
347
355
468
316
- 3.3%
Computer hardware
1,549
1.630
2,141
1,711
-8.2%
Telecommunications
303
306
339
247
-22.2%
Office equipment
and consumables
404
377
488
410
- 6.5%
Gfk TEMAX Polska
5,725
5,984
7,242
5,425
- 12.7%
Consumer
electronics
Photo
Source: GfK Retail and Technology
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OPERATIONS IN STAGNATION
PERIOD January - March 2010
The Company sees no perspective of revival of the IT or consumer/white goods
market
(low consumption, which induces a price war).
Maintaining good relationships with existing customers
Actions aimed at obtaining new sales channels and new customer groups:
–
–
–
–
–
–
retail – food segment (Auchan, Carrefour, Real, Tesco)
retail – cash&carry segment (Selgros, Makro)
retail – discounts (Biedronka, Kaufland, Lidl, Polo Market)
retail – DIY segments (Leroy Merlin, Castorama, OBI, Praktiker)
retail – food wholesalers
electrical and lighting wholesalers
Increasing the number of active clients of the Export Department and broadening
the Group's export offer
Increasing the Group's share in the consumer electronics/white goods distribution
market:
– market penetration in small and medium-sized retail sector
– launching a dedicated sales team
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OPERATIONS IN STAGNATION
PERIOD January - March 2010
Strong emphasis on increasing the Group's performance, searching for
internal cost synergies
Optimising operating costs
Maximum reduction of new investment costs
Leveraging the synergy of co-operation with ACTION S.A., taking
advantage of its strong logistics potential in relationships with numerous ecommerce customers:
– logistics
– and country-wide drop-shipping (Sferis and partner shops)
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SFERIS
January - March 2010
SFERIS COMPUTER PRODUCTS RETAIL CHAIN
Opening new "island stand" points of sale
–
9 stands open in Q1 2010
–
target: 90 stands as at end of 2010
E-commerce drop-shipping program
–
over 3,000 shipments issued in March 2010
Moving SFERIS Sp. z o.o. head office to ACTION S.A. HQ
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E-COMMERCE
January - March 2010
GRAM.PL PROJECT
Quarter with record-breaking sales: 24.6 % increase compared to prev. quarter
Heaviest visitor traffic so far
Launching an offer of APPLE products
Shopping for unregistered users – 10% share in all Quarter 1 sales
(including 70% by new customers)
A.PL ONLINE DELICATESSEN
Orders increased by over 105% (March 2010 to March 2009)
Average order value increase by 24% exceeding 250 zloty (March 2010 to March 2009)
Move to a new 1,200 sqm warehouse that will allow tripling order processing capacity
and reduce overhead at the same time.
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THANK YOU FOR YOUR ATTENTION
Contacts for the press and representatives of the capital market
Anna Bielińska – Corporate Communication Director
Telephone: +48 22 332 16 96, Email: [email protected]
Dominika Lenkowska – Martis CONSULTING
Telephone: +48 22 244 57 09, Email: [email protected]
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