Main colour palette Secondary colour palette Map colours FillLine August 13th 2008 ASBISC Enterprises PLC Press conference Siarhei Kostevitch, CEO Marios Christou, CFO Costas Tziamalis, IR
Main colour palette Secondary colour palette Map colours FillLine Page 1 4/14/2015 4:42 PM IBD\ING\War O\P\X Important notice This presentation contains forward looking statements. 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 in our semi- annual and annual reports. For the most recent description of the risk factors please see Risk Factors section in the prospectus.
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Main colour palette Secondary colour palette Map colours FillLine Page 3 4/14/2015 4:42 PM IBD\ING\War O\P\X Introduction to ASBIS Leading IT distributor across EMEA markets particularly strong in the FSU (above 40% of sales) and Central Eastern Europe (34% of Sales) 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 Wide product of IT component portfolio, distributed on a ‘one-stop-shop’ basis Already strong in A branded laptops, PCs and servers Increasing share of private label, high-margin products and accessories marketed under Prestigio and Canyon brands Distribution network physically present in 25 countries We reach 20,000 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
Main colour palette Secondary colour palette Map colours FillLine Page 4 4/14/2015 4:42 PM IBD\ING\War O\P\X Milestones Development of Canyon and Prestigio private labels Launch of the IT4Profit platform, US$10m private placement of shares to institutional investors ASBIS incorporated in Cyprus Headquarters moved to Limassol, Cyprus Aggressive expansion across the CEE region Distribution agreement with Intel Launch of mobile PC strategy Distribution agreement with AMD Listing on AIM in October 2006 Revenues in excess of US$1bn Listing on the WSE Distribution agreements with Toshiba and Dell Established in Minsk, Belarus Distribution agreement with Seagate Distribution hub in Amsterdam CAGR = 25.5%
Main colour palette Secondary colour palette Map colours FillLine Page 5 4/14/2015 4:42 PM IBD\ING\War O\P\X Competitive strengths Broad geographic coverage in CEE combined with local presence Group has strong local presence in a number of countries, unlike most of international competitors Reduced shipping and revenue collection costs and consistent marketing approach Growing and secure business due to market differentiation Experienced management team combined with local expertise Key managers have been with the Group for several years Regional operations managed by local experienced managers with an in-depth understanding of the local markets Revenues of US$1.4bn in 2007 with sales in c.70 countries and operating facilities in 23 countries Authorised distributor status achieved thanks to the size and scope of operations, leading to tangible commercial benefits Critical mass Price and stock rotation protection granted by suppliers Beneficial contract terms providing protection from declining prices and/or slow moving inventory Main local competitors tend to buy in the open market One-stop-shop Complete solutions to producers and integrators of server, mobile and desktop segments
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Main colour palette Secondary colour palette Map colours FillLine Page 7 4/14/2015 4:42 PM IBD\ING\War O\P\X Sales overview Primary business linesValue drivers Own label products Sales and distribution of: 1)IT components* 2)Private labels (Canyon, Prestigio) 3)Software (Microsoft) 4)End-user products (Dell, Toshiba) * IT components are supplied by leading world vendors as Intel,AMD, Seagate, Hitachi, etc. Two own brands: Canyon and Prestigio 1)Innovative, aspirational products manufactured by leading ODM/OEM in the Far East 2)Utilising existing distribution network worldwide 3)Technical support provided locally 4)Increasing share of sales from 5.8% in 2005 to 7.4 % in )Higher margins 6)Leveraging on the strong components business Organic growth Economies of scale due to continuing automation process Natural hedge and high financial security due to operations on many markets Operations on markets with growth potential higher than Western Europe: 1)Lower level of IT penetration 2)In-depth understanding of local markets 3)Working for choice no. 1 position 4)Increasing market share
Main colour palette Secondary colour palette Map colours FillLine Page 8 4/14/2015 4:42 PM IBD\ING\War O\P\X Distribution network Four distribution centres in Prague, Amsterdam, Helsinki & Dubai 33 local warehouses in 25 countries JIT stock replenishment system 331-strong Sales & Marketing team across all countries of operations Local technical support Ballinloough Amsterdam Bratislava Casablanca Algiers Tunis Vilnlus Ljubljana Zagreb Istanbul Warsaw Minsk Sofia Moscow Kiev Bucharest Limassol Alma-Aty Prague Belgrade Tallinn Kosice Budapest Cairo Dubai Hong Kong Distribution centers Helsinki Riga Sarajevo
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Main colour palette Secondary colour palette Map colours FillLine Page 10 4/14/2015 4:42 PM IBD\ING\War O\P\X Key historical data Margins (%)Key historical data (US$m) ,000 1,200 1,400
Main colour palette Secondary colour palette Map colours FillLine Page 11 4/14/2015 4:42 PM IBD\ING\War O\P\X Financial results for H Revenues and net profit in H H Highlights 1)Revenues increased by 30.5% to U.S.$ 704,805 from U.S.$ 540,056 in H )Gross profit increased by 74.1% to U.S.$ 41,388 from U.S.$ 23,779 H )Gross profit margin increased to 5.9% compared to 4.4% in H )EBITDA increased by 125.5% to U.S.$ 14,784 from U.S.$ 6,557 in H )EBITDA margin was 2.1% compared to 1.2% in H )Net profit after taxation increased by 130.7% to U.S.$ 7,308 from U.S.$ 3,168 in H )Earnings per share almost doubled to U.S. $ 0,1311 from U.S. $ 0,0660 in H CAGR = 30.51% CAGR = %
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Main colour palette Secondary colour palette Map colours FillLine Page 15 4/14/2015 4:42 PM IBD\ING\War O\P\X Market overview Per capita PC penetration in emerging markets will double by 2012 (Gartner) Strong growth of mobile PC penetration booth in Western market and in emerging markets (i.e. According to Gartner: 2003 WE household PC penetration was 42.3%, in 2011 it is expected to reach 88.1%) 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$21.7bn in 2010 Local presence important for the emerging markets IT products increasingly affordable with shortening life cycles CEE growth market by value of PCs shipments (US$bn) CAGR = 13.6% Source: IDC Source: Gartner
Main colour palette Secondary colour palette Map colours FillLine Page 16 4/14/2015 4:42 PM IBD\ING\War O\P\X Market overview Shift to mobility EMEA IT Spending Source: Microsoft Emerging markets in EMEA
Main colour palette Secondary colour palette Map colours FillLine Page 17 4/14/2015 4:42 PM IBD\ING\War O\P\X Forthcoming plans Expected further significant growth in the Middle East: -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. -utilising newly estabilshed operations in Turkey and acquisited warehouse in UAE in order to build stronger presence in the region Continue to utilize Russian market strong growth, prepare for changes Acquire positive results from investment in Latvia and Bosnia & Hertzegovina Improvement of operational efficiency – beginning of construction of a warehouse and office space in Kosice, Slovakia as the Bratislava based office and warehouse succeed. 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.
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Main colour palette Secondary colour palette Map colours FillLine Page 19 4/14/2015 4:42 PM IBD\ING\War O\P\X Constantinos Tziamalis tel: fax: mail: Daniel Kordel tel: mob: mob (PL): mail: Investor Relations ASBIS Group
Main colour palette Secondary colour palette Map colours FillLine Page 20 4/14/2015 4:42 PM IBD\ING\War O\P\X Appendices
Main colour palette Secondary colour palette Map colours FillLine Page 21 4/14/2015 4:42 PM IBD\ING\War O\P\X Historical Profit & Loss statement Note: Data have been subject to rounding adjustments, therefore the sum of the numbers in a column may not conform exactly to the total figure given for that column
Main colour palette Secondary colour palette Map colours FillLine Page 22 4/14/2015 4:42 PM IBD\ING\War O\P\X Historical Balance Sheet statement Note: Data have been subject to rounding adjustments, therefore the sum of the numbers in a column may not conform exactly to the total figure given for that column
Main colour palette Secondary colour palette Map colours FillLine Page 23 4/14/2015 4:42 PM IBD\ING\War O\P\X Shareholder Structure NameNumber of shares% of share capitalNumber of Votes% of votes KS Holdings Ltd25,676, %25,676, % Maizuri Enterprises Ltd4,800, %4,800, % Alpha Ventures S.A.3,200, %3,200, % Sangita Enterprises Ltd 2,800, %2,800, % Free float*19,023, %19,023, % Total55,500, %55,500, % * Shareholders with more than 1% stake who are under a lock-up agreement until 30 October 2008 are included in the free float, as well as for all the shares stated above, approximately 15% of the free float is under the lock up agreement. Total free float as at 31 December 2007 was about 20%.