ASBISC Enterprises PLC Investors Group meeting

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ASBISC Enterprises PLCInvestors Group meeting

• Siarhei Kostevitch, CEO
• Marios Christou, CFO
• Costas Tziamalis, IR

April 2008
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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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Company and market overview
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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
• 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 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

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Milestones
2001-2002
2003-2005
2006-2008
1992-1994
1996-2000
1995

• Development of Canyon and Prestigio private
  labels
• Launch of the IT4Profit platform,
• US10m 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 US1bn
• 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
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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 69 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

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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

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

Critical mass

• Revenues of US1.4bn 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

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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Operations
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Sales overview

• Primary business lines
• Sales and distribution of
• IT components supplied by Intel, AMD, Seagate,
  Hitachi, etc.
• Private labels (Prestigio, Canyon) manufactured
  by leading ODM/OEM in the Far East
• Software (Microsoft) and end-user products
  (Toshiba, Dell)
• Value drivers
• Economies of scale due to continuing process
  automation
• Organic growth in high growth markets
• underlying increase in PC penetration
• in-depth understanding of the local markets
• New product lines
• Increasing market share
• Own label products Canyon and Prestigio
• Increasing share of sales from 5.8 in 2005 to
  7.4 in 2007
• Higher margin brand products
• utilising existing distribution network
• leveraging on the strong components business
• innovative, aspirational products
• Technical support provided locally

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Distribution network

• Four distribution centres in Prague, Amsterdam,
  Helsinki Dubai
• 31 local warehouses in 19 additional countries
• JIT stock replenishment system
• 331-strong Sales Marketing team across all
  countries of operations
• Local technical support

Helsinki
Tallinn
Moscow
Ballinloough
Vilnlus
Minsk
Amsterdam
Warsaw
Kiev
Prague
Kosice
Bratislava
Budapest
Ljubljana
Zagreb
Bucharest
Belgrade
Alma-Aty
Sofia
Istanbul
Tunis
Algiers
Limassol
Casablanca
Cairo
Hong Kong
Hong Kong
Dubai
Distribution centers
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Financial results
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Results improvements
Margins ()
Key historical data (USm)
1,400
1,200
1,000
800
60
40
20
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Revenue by markets
Geography of operations Revenues growth rate by
country (2007)
Revenues by country 2007
Over 60 of the total sales in 2007 generated by
top 5 countries
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Revenue by products
Revenue breakdown by value (2007)
Products Three year CAGR in revenue by product
(2005-2007)
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Private brands revenues and profit contribution
Private brands revenue (2005-2007)
Private brands gross profit contribution
(2005-2007)
55.9
86.4
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2007 cash flow
1
7
8
17
29
1
13
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Future perspective
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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 US21.7bn
  in 2010

PC penetration level (June 2006)
PCs/100 head of population
Source Gartner
IT spending as a percentage of GDP by region
(2005)
CEE growth market by value of PCs shipments
(USbn)
CAGR 13.6
Source IDC
Source IDC
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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
  Toshibas 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.

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Further information
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• Investor Relations ASBIS Group
• Constantinos Tziamalis
• tel [phone]
• fax [phone]
• mail costas_at_asbis.com

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Appendices
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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
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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
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Shareholder Structure
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.