Financial Results
for Quarter 4
2007/2008
KEY EVENTS IN Q4
increasing the forecast financial results for financial year 2007/2008 and their
implementation
making the financial year equal to the calendar year (resolution of EGMS)
executing the tender for MEN which the Company won - 37,000 computers and
3,000 servers were manufactured and delivered in 6 weeks
completing the 1st batch of the order for ZUS for delivery of 5,000 computers
concluding a distribution agreement with Sony Poland to distribute VAIO
notebooks
entering into agreements concerning authorised distribution of household
appliances and consumer electronics goods:
- Panasonic
- Horn (distributor of) Denon and Alpine brands
- Jura – a Swiss manufacturer of coffee makers
opening of another SHOCK chain store in Ukraine (Zaporozhe)
2
RESULTS OF QUARTER 4
Sales revenue (PLN M)
Gross margin (%)
The value of sales revenue rose by 37.6% as compared to Q4 2006/2007
- with a concurrent drop in value of the PLN/USD exchange rate of 24.8 % July on July
- which means an increase in sales expressed in USD by 83.0%
- excluding tenders, distribution dynamics came to 16.3% - and expressed in USD 54.8%
Gross margin increased as compared to Q4 2006/2007 by 0.49 pp
3
RESULTS OF QUARTER 4
Operating Profit (PLN M)
Net Profit (PLN M)
Operating profit increased as compared to Q4 2006/2007 by 37.2%
Net profit rose as compared to the respective period of the previous year by 4.5%
Excluding the results of a one-off sale transaction of a real property in Wrocław from
Q4 2006/2007 – the net profit increased by 102%
4
FINANCIAL RATIOS
ROE (%*)
ROA (%*)
Return on Equity increased by 3.7 pp
Return on Assets increased by 0.54 pp
* Ratios calculated on the basis of the net profit attained in 4 previous quarters
5
DETAILED FINANCIAL DATA
Q4
2006/2007
Q4
20072008
Change
Q1-4
2006/2007
Q1-4
20072008
Change
Sales revenue
422 991
582 047
37.0%
1 797 520
2 343 368
30.37%
Gross sales revenue
32 022
46 943
46.60%
118 060
185 202
56.87%
Gross sales margin
7.57%
8.06%
0.49 pp
6.57%
7.90%
1.33 pp
Cost of sales and marketing
21 010
33 092
57.51%
78 967
114 313
44.76%
Related to revenue
4.96%
5.69%
0.73 pp
4.39%
4.88%
0.49 pp
General administrative costs
7 862
8 421
7.11%
22 457
36 485
62.47%
1.25%
1.56%
0.31 pp
[PLN M]
- 0.41 pp
Related to revenue
1.86%
1.45%
Balance of remaining revenue
and operating costs
6 894
8 355
21.19%
13 730
22 886
66.69%
Operating result
10 044
13 785
37.25%
30 366
57 290
88.66%
614
2 470
302.28%
2 024
6 176
205.14%
8 115
8 479
4.49%
22 024
33 790
53.42%
1.23%
1.44%
0.21 pp
Net financial costs
Net result
Net result profitability
1.92%
1.46%
- 0.46 pp
6
IMPLEMENTATION OF FINANCIAL FORECASTS
Sales revenue (PLN M)
The projected sales targets were met in 99.9%
The projected net result was attained in 100.6%
Net Profit (PLN M)
FACTORS WHICH CREATE THE RESULT
The effectiveness of sales and logistics increased:
The number of customers served rose by 11% as compared to Q4
of the previous year (on average 9,062 customers per quarter)
The number of products offered by ACTION came to 18,096 items
The number of invoice items increased by 30% as compared to quarter
4 of the previous year (on average 502,511 items per month)
88% of sales transactions were executed online in comparison
to 82% in Q4 of last year
There were over 4.5 mln visits to I-serwis website descriptions monthly
The number of packages dispatched from the warehouse rose in Q4
of this year by 61.6% (on average 115,983 items per month)
8
IMPLEMENTING THE STRATEGY OF GROWTH
Further development of subsidiaries
Action Ukraina /Ukraine/
another SHOCK shop was opened in Zaporozhe on 28 June 2008
- area of 2000 sqm
another 2 shops in Vinnytsia and Donetsk are planned to be opened
by the end of 2009
SFERIS
re-branding of the chain completed in 80%
rental agreement concluded for another 5 locations
commercial activity on B2B market commenced
15%-increase in sales in base shops
8 new shops planned to be opened in the nearest future
20 partner shops to be included in the chain by the end of the year
9
STRATEGY FOR THE FOLLOWING YEARS
Development of private brands
Participation in the execution of foreign tenders
Development of logistics
Related AV appliances markets
Market consolidation
10
THANK YOU FOR YOUR ATTENTION
11