Olivier’s Review

Barcelona 2014 Sales meeting

2013 Review

328M€ +18% vs

Margin Gross Margin17,2% +15% vs

Ebitda 5,1% +25% vs

Vendor Analysis

2013 vendor analysis

Vendor stopped in ,3M€ Cisco 18,5M€ Other – 18M€ UK – 0,5M€ France Total impact: 39,8M€ – 15% GM (6M€)

Geographical Analysis

Problem solving

Regional split

2012 to 2013

FRANCE

France

SOUTH

South

DACH

Dach

BENELUX

Benelux

NORDIC

Nordic

UK

Back to the basics What is Exclusive Networks ss ioss?

Exclusive Networks DNA Security management Content Delivery WAN Optimization Switching Endpoint Security Network Security Content Security Wireless Lan

Bigtec DNA Backup Storage WAN Optimization Compute Switching Analytics Virtualization

Our DNA Backup Security management Storage Content Delivery WAN Optimization Compute Switching Endpoint Security Network Security Analytics Virtualization Content Security Wireless Lan

Our suppliers (vendors) Vendors who developed Disruptives technologies And want to come in Europe …

International development EMEA EMEA market is huge EMEA market is complex and expensive to address: – It’s far away, time difference – Multiple Countries (67) – Multiple Languages (40) – Different cultures IT Vendors want to go as fast as possible

Long road to do business in EMEA Direct Targeted lead generation Lead qualification Lead management Sales enablement Customer acquisition Partners Channel readiness Partner recruitment Onboarding and training Channel development Partner support Partner program management Technical services Presales Training Proof of concept Support (24X7) Professional services Marketing & Communication Press relation Trade show Lead detection Direct marketing Local advertising Local pricing model &discount Admin/Logisti c Inventory management Shipment and financial risk Exchange rate risk Multiply by the number of countries…

What vendors do They can’t do everything by themselves! – Too many countries – Too many people to hire from day one They start with a small team (2 to 6) They decide to scale through partners They outsource most of the tasks to an external company: – To accelerate the process – Minimize the cost – Minimize the risks

We are an extension of the vendor team! Benefits for the vendor – Ready made team of experts – Less Cost – Faster Go To Market – variable cost – It’s much less risky – scales up or down as needed

Provide 5 Stars services On behalf of Vendors for resellers Sales Technical Marketing Financial Admin Logistic Business intelligence

Sales Account focused sales teams Vendor focused dedicated product teams Partner recruitment Partner management Sales training Demand creation End user meeting

Marketing Communication & PR Pan European Campaign Reseller incentive Solution marketing Marketing Consultancy Online marketing Event management

Technical Presales Demo centre Proof of Concept Staging Professional services Training RMA 24X7 Technical Support

Logistics Inventory management 14 distribution centre across EMEA Demo stock Next day shipment International deployment – delivery DDP to territory – Quotation on demand

Admin & Financial Exchange rate management Cash collection Working Capital financing Financial Lease Point of Sales (PoS) for vendors Import & Export licence process

Business intelligence Full analysis of historical Business Real time access to invoicing and order intake Access for vendors Multi country Reseller activity End User visibility Run rate vs Project

Our approach must be vendor centric

Vendor Go To Market strategy Prepare Discovery & understanding Reseller profiling Sales training Technical training Local pricing & discount structure Target Engage PR Marketing activities Demand creation Reseller meetings Reseller training … Monitor Business Intelligence Figures analysis Number of resellers Monthly Business review

Bespoke approach for vendors Presales End users meeting Partner enablement Stocking 24X7 Support Marketing campaign Partner recruitment Leads detection Technical Training Channel readiness Local Price list & discount structure Proof of concept Press Relation International shipment

We must consider that Vendors needs are changing with the time

We must be aligned with vendor expectations

What are the benefits of making the Vendors Happy Better margin More business More marketing money Less competition (Sole distribution) More territories

Are they Happy today? Do we meet their expectations?

We did a Vendor survey in France in December 11 vendors 31 contacts – Sales, Presales, Management Anonymous, tell what you think… Performed by an external company

Conclusions: To be a SuperVAD, EN must continue to have a business model different than the competition and improve its Sales skills (performances or capacity)

« Exclusive » positioning is key More investments on training on new vendors and new technologies More incentives to sales people : – On new vendors – On New Technologies from Legacy vendors Avoid conflicts of interests

Improvement of Business development Focus on recruitment of new partners Generate more end-users leads Align the sales resources with the growth of the vendors More dedicated Sales and Technical resources

AMR recommendations

1.Introduce Management by Objectives (MBO) Put in place Quantity and Quality target – Number of new resellers – Level of expertise on new technologies – Number of technical meeting – Revenue & Margin targets on new vendors and new products – ….

2.Align the resources with vendors expectations More dedicated sales for legacy vendors Adjust the technical resources by vendors: – What level of expertise? – What time allocated to a vendor ? Additional resources?

3.Put in place action plan for each vendor Action plans have to be clear and simple Quantity and Quality targets KPI easy to measure Quarterly review of the plan with the vendors

4.Clarify the competition situation « Chinese wall » between sales people of competitive vendors Define a clear Go to Market strategy for each competitive vendors: – Targeted resellers and customers

5.Hire more « Hunters » New sales people financially incentivized and focus on: – Partner recruitment – Launching of new technologies – Leads detection (end-users)

6.Improve the skill of the team on New products More training for engineers More dedicated technical peoples Create a « Network » of early adopters resellers More sales training – Internally – For the partners

Vendors expectations Trust Business development Partnership Competences Focus Technical skills Proactive Marketing campaign Partner recruitment Leads Generation

Keys of the success Good vendors Good people Quality of execution

2014 Budget

500M€ +52,2% vs

Gross Margin 16,5% +45,8% vs

Ebitda5,3% +62% vs

2013 to 2014 budget

Geographical split

2013 to 2014 budget

Vendor Split