Investora, September 12, 2013

A leading player in the European

ITC* Distribution Industry * Information Technology, Telecommunication, Consumer Electronics

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Investora, September 12, 2013

Disclaimer

► This management presentation in both oral and written form (together the

„Presentation“) has been prepared by ALSO Holding AG (“ALSO”)

► The Presentation contains selected information and does not purport to be

complete. Any estimates and projections involve significant elements of subjective

judgement and analysis, which may or may not be correct. Accordingly, each

recipient, prior to making any decision with regard to business relations with ALSO,

should conduct an investigation of its own regarding the chances and risks

connected with such relations. Neither ALSO nor any of its affiliates, members,

employees or agents, or any of its direct or indirect shareholders provide – or have

the authority to provide – any guarantee or warranty (expressed or implied) or

assume any responsibility or liability whatsoever with respect to the authenticity,

origin, validity, accuracy or completeness of the information and data contained or

made in the Presentation, or assume any obligation for damages, losses or costs

resulting from any errors or omissions contained in the Presentation.

► ALSO does not assume any obligation to update and/or revise the Presentation or

the information upon which it has been based.

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Investora, September 12, 2013 3

Agenda

► Company

► Industry

► Competitive Position, Key Figures

► Strategy, Outlook, Investment Opportunity

► Q&A

Investora, September 12, 2013

Company overview

► Europe's third largest distribution and logistics

company for IT, Telecommunication and

Consumer Electronics, with 6.3 bn EUR net

sales in 2012 and ~3’000 employees

► Active in12 European countries, market leader

in 7 of them

► More than 160 000 products from 350 vendors

Shareholding structure

as of December 31, 2012

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Investora, September 12, 2013

ITC Distribution Industry – Structure,

Value proposition, Attractiveness, Risks

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Investora, September 12, 2013

ITC Distribution – important part of value chain

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HW/SW Vendors (Apple, Cisco, Dell, HP, IBM, Microsoft, Samsung…)

Business Users Private Users

large medium small (SOHO)

ITC-Distributors

(ALSO, Ingram, TechData, …)

Corporate Resellers

Resellers

VAR

s

“C

han

nel”

Investora, September 12, 2013 7

ITC Distribution – sustainable value proposition

► 24 hour availability

• Stock management, logistics not a core competence of reseller

► Choice

• „Multi-vendor“ end user infrastructure

► Credit

• Resellers need to finance cash cycle

► Supply chain management

• Complex „purchase-to-ship“ process, different for each vendor

► Customer breath for vendors

• Distributors reach more than 100‘000 resellers across Europe

Even DELL (previously direct marketer) has turned to distributors

Investora, September 12, 2013 8

ITC Distribution – very profitable business

► Assumptions • Sales 100

• GM = 5%

• EBIT = 1.5%

► Traditional view

• “ROS” =

Return on sales

► Alternative views • “ROMA” =

Return on margin

• “ROVA” =

Return on value added

0%

20%

40%

60%

80%

100%

EBIT =

1.5%

of Sales

EBIT =

43%

of

Value

Added

CO

GS

OP

EX

E

BIT

“ROS” “ROMA” “ROVA“

EBIT =

30%

of

Gross

Margin

EB

IT

GM

Investora, September 12, 2013

ITC Distribution – resilient sales/margin model

0 10 20 30 40 50

-2

-1

0

1

2

3

4

5

6

0

20

40

60

80

100

120

0 10 20 30 40 50

Revenue decline % Revenue decline %

Value (Index) Value (Index)

Sales

COGS

Gross Profit

OPEX

EBIT

With 30% lower sales still break-even EBIT!

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Investora, September 12, 2013

ITC Distribution – successful risk management

► Inventory

• Price protection clauses (typically 30 days)

• Active stock turn management

► Bad debt

• Account receivables insurance

• Highly developed own credit risk management systems

ALSO-Actebis

Unit 2010 1 2011 2012

DIO 2 days 20 20 21

Total stock provision % of sales 0.18% 0.16% 0.15%

Annual bad debt 3 % of sales 0.07% 0.06% 0.05%

1 Actebis only 2 based on annualized December sales 3 actual losses + use of provisions, but excluding A/R insurance premium

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Investora, September 12, 2013

Competitive Position and

Key Figures

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0 2 4 6 8 10 12 14

Esprinet**

SerCom****

Avnet***

ALSO**

Ingram Micro**

Tech Data*

Net Sales in Europe FY 2012 in bn EUR

*) Nov. 2011 – Oct. 2012

**) Jan. – Dec. 2012

***) Jan. – Dec. 2012/only Technology Solutions

****) Oct. 2011 – Sept. 2012

Total European

distribution market

> 60 bn €

ALSO – top 3 players have still < 50% of market

Investora, September 12, 2013 13

ALSO – a leading player with superior profitability

ALSO Tech Data

(Europe)

Ingram

(Europe)

Revenue 2012 (mEUR) 6‘297 11‘719 8‘261

Rank in Europe 3 1 2

# Countries 12 16 13

# Market leader positions 7 5 3

EBIT FY 2012 (reported) 1.34% 1.06% 0.97%

Profitability Index 2012 100 79 72

Investora, September 12, 2013

HY 2013 HY 2012

EUR Mio. EUR Mio.

Net sales 3 040.3 100.0% 2 868.5 100.0%

Gross margin 200.8 6.6% 201.8 7.0%

Operating profit (EBIT) 31.9 1.1% 36.6 1.3%

Net profit Group (EAT) 16.3 0.5% 19.9 0.7%

Total assets 1 192.6 100% 1 151.6 100%

Equity 389.3 33% 364.2 32%

Cash flow before changes in WC 27.5 30.5

Cash flow from operations 30.4 -8.0

Free cash flow 25.1 -15.8

Net cash flow 11.7 5.4

ALSO – key figures HY1 2013 vs. HY1 2012

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Investora, September 12, 2013

Strategy

Outlook

Investment Opportunity

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Investora, September 12, 2013

Strategic framework for ALSO

► MORE-Program defines ALSO strategy

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Investora, September 12, 2013

«MORE» strategy 2013

«Maintain»:

• Maintain / increase market shares in more profitable segments is first priority

«Optimize»:

• Migrate IT platform in LV and LT to group wide SAP

• Introduce business intelligence tool to increase the analytical capabilities of

the operational business

• Profit Improvement Program (PIP) and Process Optimization Program (POP)

in all regions

«Reinvent»:

• Unbundling of the Solutions, Service, and Supply business across the Group

to ensure a sustainable expansion of the value offerings and business

opportunities

«Enhance»:

• Further consistent examination of acquisition opportunities

in various regions and business segments

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Investora, September 12, 2013

Growth opportunities ahead

► Business expansion

• Share gains

• Industry consolidation

• New vendors (e.g. Apple, Samsung)

• New product categories (e.g. white goods)

• Services

► Business extension

• Getting closer to the end customer (e.g. Managed Print Services)

► Geographical extension

• Focus is on EMEA

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EAT perspective

► Current EAT guidance for FY 2013 is 38 – 45 MEUR

► Mid-term EAT goal is 50 – 55 MEUR

► Additional EAT of 10 MEUR p.a. from 2016 onwards

• PPA from merger between ALSO and Actebis will lapse in

February 2016

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Attractive investment opportunity

► Attractive industry

• Little or no fixed assets

• Low capital requirements

• Technological innovation creates and drives new market segments

► Attractive business

• Sustainable value proposition

• Resilient business model

• Limited and manageable risks

• Highly profitable (returns on margin, returns on value added)

► Attractive player

• Very strong competitive position

• Superior profitability

• Untapped growth and earnings potential

ALSO – the leading, customer-oriented ITC provider.

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