The Stanley Gibbons Group Limited

1
The Stanley Gibbons Group Limited

• Investor Presentation
• 3 March 2006

2
Overview

• Summary Financial Information
• Current Position
• Strategic Goals
• Prospects
• Risks
• Shareholder Returns
• Appendix Trading History

3
Summary Financial Information
4
Current Position

• Profit before tax showing average growth of 74
  per annum over past three years, (2002 0.5m,
  2003 1.2m, 2004 1.7m, 2005 2.8m)
• Sales increased by 36 in 2005 (2004 17)
• Adjusted earnings per share in 2005 of 9.30p
  (2004 4.97p) up 87.1
• Profits converted into cash (2.6m bank balances
  at 31 December 2005)
• Dividend for year of 3p (2004 2p) up 50
• Internet sales increased on average 30 per annum
  over past 3 years

5
Strategy at a glance
6
Strategic Goals

• Achieve consistent sustainable long term growth
  in profits of over 20 per annum through
• Increased breadth and quality of stockholding
• Continued development into alternative investment
  market
• Development of brand internationally in emerging
  economies
• Increased traffic and online transactions through
  website (online philatelic community)
• Effective direct marketing approach

7
Prospects Stockholding

• SG 100 stamp price index up 8.2 in 2005 (GB
  Rarities Index up 20)
• Focussed acquisition of key rarities and items of
  exceptional quality as an appreciating asset
• Development of investment stockholding in
  autographs and memorabilia
• Creation of network of agents providing worldwide
  supply chain

8
Prospects Alternative Investments

• Success fuelled by low interest rate environment
  and historic long term returns of 10 per annum
• Development of tailored financial-based products
• Opening of office in Guernsey, Channel Islands to
  provide dedicated team
• VAT and corporation tax savings from offshore
  trading
• Increased promotional activity through proven
  channels

9
Prospects International Brand Development

• Sales overseas represented 41 of total sales in
  2005 (2004 31 2001 21)
• Attendance at worldwide philatelic and investment
  shows/exhibitions
• Building network of international agents
• Increased marketing through relevant Foreign
  media
• Overseas visitors to flagship at 399 Strand
• Niche publishing expertise

10
Prospects Internet

• Now over 2 million visitors to our websites per
  annum
• New service My Collection provides unique
  online functionality to collectors
• All websites developed using internal expertise
  with costs written off in year incurred
• Ongoing programme of functionality enhancement
  and growth in intellectual property
• Ability to recruit and service new customers at
  low cost

11
Prospects Direct Marketing

• 30 increase in new customers recruited in 2005
• Improved use of segmental analysis from CRM
  system
• Develop and promote spend from customers through
  postal mailings, internet, e-mails and
  telemarketing
• Focus on key customer service measures to retain
  and increase spend of existing customers
• Increased budget on direct marketing to recruit
  new overseas customers in emerging markets

12
Risks

• Ability to source philatelic material of the
  right quality and with sufficient gross margin
• The need to segregate investment business from
  traditional collectibles market
• Internal restructuring changes required to
  achieve improved focus on key growth areas
• Specialist staff recruitment to meet new levels
  of demand

13
Shareholder Returns

• Final dividend for 2005 of 2p net per share to be
  paid on 18 April 2006 to shareholders on the
  register at 17 March 2006
• Forecast dividend for 2006 of 4p net per share
  and 5p for 2007 (yield of 5.4)
• Share buybacks will be considered in 2006 to
  support share price where excess funds are
  available
• Forecast 62 increase in Earnings Per Share over
  next two years
• High generation of cash funds to be utilised on
  suitable acquisitions to provide supply and
  expertise

14
Appendix - Trading History