office2office plc

1

• office2office plc
• Interim Results Presentation
• Six months to 30 June 2005

2
Highlights

• Increased revenues and profits
• Strong cash generation
• Major accounts retained
• Continued broadening of the customer base
• Trading performance continuing in H2

3
Business Review

• Market
• Sound employment levels
• key driver of demand
• Public sector purchasing review
• account consolidation
• E-auctions
• opportunities and risks
• Electronic office supplies
• market growing
• o2os market position
• solid with opportunity

4
Strategy

• Expanding our customer base
• Single-source solution
• product/service range expansion
• Increasing e-commerce
• functionality
• volumes rising
• Improving service and efficiency in operations
• Focus on merchandising
• Pan-European positioning

5
Revenue
6
EOSA

• Our European Alliance continues to win
  pan-European customers
• e.g.
• Nordea (Scandinavia)
• Group4 Securicor (UK, France, Germany,
  Scandinavia)
• Bristol Myers Squibb (across Europe)
• Coca Cola (UK, France, Netherlands)
• Carrefour (Spain, France, Belgium, Italy)

7
Gross Margins

• Continuing strong performance in 2005
• 2005 2004 2004
• H1 H1 Full Year
• 32.6 32.4 0.2
  32.9
• Issues impacting gross margin
• Account re-tenders
• New-business wins
• Commodity price increases (oil, paper, etc)
• Exchange rates
• Product mix
• Merchandising activity/Brand mix
• Procurement savings
• Contract management

8
Results
9
Group Income Statement
10
Dividends

• 2004 final dividend of 1.5m (4.2p per share) -
  paid in May 2005
• Proposed interim dividend in respect of H1 2005 -
  1.1m
• 3.1p per share
• Payable in November 2005
• Comprehensive review of impact of IFRS upon
  distributable reserves completed. No significant
  impact.

11
Group Balance Sheet
12
Group Cashflow
13
Key impacts of IFRS

• Adoption of IFRS with effect from 1 January 2004
• Recognise the deficit on the defined benefit
  pension scheme
• Deficit 1.5m, scheme closed 30/09/96, to be
  funded over 15 years
• Recognise a holiday pay accrual
• employment contracts require staff to use holiday
  entitlement in the current financial year (i.e.
  no carry over)
• Review goodwill for impairment as opposed to
  straight-line amortisation
• Recognise final dividends when approved, interim
  dividends when paid

14
IFRS impacts on results
15
Current Developments

• Strengthening Management Team
• Increased Asian sourcing
• Enhancement of websites and internet systems
• Launch of Health Safety and Security product
  ranges
• ISO14001 award recommended
• Consultation on Long Term Incentive Plan
• Directors to sell a proportion of their shares
  which will aid liquidity in the stock

16
Focus

• To maintain profit and sales growth and minimise
  downward margin pressure, through-
• Retaining existing customers and growing in all
  market sectors
• Achieving the highest degree of customer
  satisfaction
• Cautious expansion of products and services
• Merchandising strategy/procurement savings
• Tight cost control
• Developing further our single-source solution
• Seeking suitable acquisitions
• Outlook
• measured confidence

17

• office2office plc
• Results Presentation
• Six months to 30 June 2005
• END