office2office plc

1

• office2office plc
• Interim Results
• Six months to 30 June 2004

Important notice This presentation is directed at
and should be distributed only to the persons of
the kind specified in the exemptions contained in
articles 19 and 49 of the Financial Services and
Markets Act 2000 (Financial Promotion) Order
2001.  Any person in receipt of this document who
does not fall within the exemptions referred to
above should return this document to Mark
Cunningham at office2office plc (o2o)
immediately and take no other action.
2
Business

• office2office (o2o) is the UKs leading
  independent contract supplier of office
  consumables
• o2o was formed in late 2000 to acquire Banner
  Business Supplies Limited (bbs) which, up to
  1996, had been a division of Her Majestys
  Stationery Office
• The core business is a single source solution for
  procurement and supply of office supplies,
  computer supplies and print
• The company offers value-added services such as
  just-in-time delivery services, cost-centre
  billing, a range of e-commerce solutions and
  management information systems
• An important aspect of the companys approach is
  in reducing the total cost of customers non-core
  procurement
• Total workforce 769 FTE
• o2o is growing and highly cash generative

3
Key Points

• Continuing sales growth
• Strong profit growth
• New customer wins
• Efficiency gains
• Improved service to customers
• Increased cash flow

4
Financial Highlights

• Sales up 15 to 72m (63m)
• Gross margin up to 32.4 (30.9)
• Underlying profit before tax¹ up 102 to 4.86m
  (2.41m)
• Underlying profit after tax¹ up 108 to 3.44m
  (1.65m)
• Earnings per share¹ 7.9p (4.7p )
• Pro-forma earnings per share² 9.4p (4.7p)
• Operating cash flow3 up 19 to 7.4m (6.3m)
• 1. before goodwill amortisation and exceptional
  items.
• 2. assumes company floated for both
  periods, with 36.3m ordinary shares in issue.
• 3. before exceptional items.

5
Dividends

• As stated at the time of the flotation -
• an interim dividend will not be paid in respect
  of H1 2004
• half-year interims show pre-float dividends
• 2004 final dividend proposal of 1.5m
• equivalent to a full-year dividend of 3m

6
Results
7
Underlying Earnings
8
Balance Sheet
9
Cash Flow
10
Sales History
office2office sales split 2001 - 2003 (m)
11
Market key features

• Total UK market value c.9.5bn.
• of which, traditional office and computer
  supplies 6.4bn.
• Fragmented market
• Multiple channels
• Consolidation, national and international
• Prices static, declining

12
Market Demand

• Factors influencing demand
• Economy growing
• GDP c3
• Employment
• level of unemployment undoubtedly low (FT)
• Gershon Report / Defence cuts
• anticipated impact in line with expectations

13
EOSA

• Members
• office2office plc
• UK Ireland
• Ahrend Office Products
• Germany, Benelux France
• Errebian
• Italy
• Tybring Gjedde
• Scandinavia
• Paperipalvelu
• Finland
• iba
• Switzerland
• Burototal
• Spain Portugal

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Group Products and Services
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Warehousing and Distribution

• Warehousing
• Six sites
• Flexible operations
• Capacity to mid 2006
• Distribution
• 2 more logistics centres
• Liveried fleet with 158 trucks

16
Summary

• Strong sales growth
• Continuing to gain market share
• Procurement savings
• Net customer wins
• Positive cashflow

17
Outlook

• Good opportunities in a still-fragmented market
  for -
• organic sales growth
• Current trading in line with expectations
• The Board views the future with confidence

18

• office2office plc
• Interim Results
• Six months to 30 June 2004
• END