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Main colour palette 12 44 132 255 153 0 180 195 225 0 130 80 107 207 237 178 181 180 Secondary colour palette 255 205 171 81 83 82 211 224 202 210 212.

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Presentation on theme: "Main colour palette 12 44 132 255 153 0 180 195 225 0 130 80 107 207 237 178 181 180 Secondary colour palette 255 205 171 81 83 82 211 224 202 210 212."— Presentation transcript:

1 Main colour palette Secondary colour palette Map colours FillLine October 2007 ASBISc Enterprises Plc Roadshow presentation

2 Roadhsow presentation Main colour palette Secondary colour palette Map colours FillLine Page 1 6/2/2014 5:24 PM IBD\ING\War O\P\X Important notice NEITHER THIS PRESENTATION NOR ANY COPY OF IT NOR THE INFORMATION CONTAINED IN IT MAY BE TAKEN OR TRANSMITTED INTO THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN OR DISTRIBUTED, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN OR TO ANY RESIDENT THEREOF. THE DISTRIBUTION OF THIS PRESENTATION IN OTHER JURISDICTIONS MAY BE RESTRICTED BY LAW, AND PERSONS INTO WHOSE POSSESSION THIS PRESENTATION COMES SHOULD INFORM THEMSELVES ABOUT, AND OBSERVE, ANY SUCH RESTRICTIONS. The information in this presentation is given in confidence and the recipients of this presentation should not base any behaviour which would amount to market abuse or insider dealing on the information in this presentation until after the information has been made generally available. Nor should the recipient use the information in this presentation in any way which would constitute market abuse or insider dealing under the Financial Services and Markets Act This presentation is not an advertisement and does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or solicitation of any offer or invitation to buy or subscribe for, underwrite or otherwise acquire, any securities of ASBISc Enterprises Plc (the Company), nor should it or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever. Any such offer, subscription, solicitation or invitation will be made by means of a prospectus (the prospectus), to be issued in due course in connection with the proposed offering described in this presentation (the offering), and any decision to purchase or subscribe for securities in connection with the proposed offering should be made independently of this presentation and solely on the basis of the information contained in such prospectus, including any amendments or supplements thereto. The prospectus will be made available in due course and may contain information that differs materially from the information in this presentation. This presentation does not constitute a recommendation regarding the securities to be offered in the offering. This presentation has been made solely for the recipients information and background and is subject to amendment. This presentation (or any part of it) may not be reproduced or distributed, or passed on, or the contents otherwise divulged, directly or indirectly, to any other person (excluding the relevant persons professional advisors) or published in whole or in part without the prior written consent of the Company and ING. This presentation and information contained herein are not an offer of securities for sale in the United States and are not for publication or distribution to persons in the United States (within the meaning of Regulation S under the US Securities Act of 1933, as amended (the Securities Act)). The securities proposed to be offered in the offering have not been and will not be registered under the Securities Act and may not be offered or sold in the United States except pursuant to an exemption from, or transactions not subject to, the registration requirements of the Securities Act. The securities proposed to be offered in the offering have not been and will not be registered under the applicable securities laws of any state or jurisdiction of Australia, Canada or Japan, and subject to certain exceptions, may not be offered or sold within Australia, Canada or Japan or to or for the benefit of any national, resident or citizen of Australia, Canada or Japan. Certain statements in this presentation constitute forward-looking statements. These statements, which contain the words anticipate, believe, intend, estimate, expect and words of similar meaning, are not guarantees of future performance and are subject to risks and uncertainties that may cause actual results to differ materially. These risks and uncertainties include, among other factors, securing necessary governmental and other approvals, the satisfaction of the conditions of the proposed offering, changing business or other market conditions and the prospects for growth anticipated by the makers of such statements. These and other factors, such as those described in the prospectus, could adversely affect the outcome and financial results of the plans and events described herein. As a result, undue reliance should not be placed on such forward-looking statements, which speak only as of the date hereof, and are not required to be updated or revised, whether as a result of new information, future events or otherwise. This communication is only directed at (i) persons outside the United Kingdom, (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001, as amended (the Order) or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as relevant persons). Any person who is not a relevant person should not act or rely on this communication or any of its contents. ING is acting for ASBISc Enterprises Plc and no-one else in connection with the proposed offering and will not be responsible to any other person for providing the protections afforded to its clients, or for providing advice in relation to the proposed offering.

3 Roadhsow presentation Main colour palette Secondary colour palette Map colours FillLine Page 2 6/2/2014 5:24 PM IBD\ING\War O\P\X Presentation team Chief Financial Officer Marios Christou Constantinos Tziamalis Corporate Credit Controller and Investor Relations Director Siarhei Kostevitch Chief Executive Officer Founder of the business and core shareholder ING Securities Managing Director Andrzej Olszewski

4 Roadhsow presentation Main colour palette Secondary colour palette Map colours FillLine Page 3 6/2/2014 5:24 PM IBD\ING\War O\P\X Company overview

5 Roadhsow presentation Main colour palette Secondary colour palette Map colours FillLine Page 4 6/2/2014 5:24 PM IBD\ING\War O\P\X 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 1992 in Minsk, headquartered in Limassol (Cyprus) since 1995 Distributor of choice for global industry suppliers -preferred Top 1-Top 3 regional distribution partner for Intel, AMD, Seagate, Samsung and Microsoft Wide product and IT components portfolio, distributed on a one-stop-shop basis -CPUs, HDDs, other components, laptops, peripherals, accessories Increasing share of private label, high-margin products and accessories marketed under Prestigio and Canyon brands Distribution network physically present in 23 countries -reaching 14,000 customers in 70 countries with a unique B2B on-line solution applied to over 50% of sales value Experienced management and strong operational and financial controls Solid operational and financial performance: US$1bn revenues and US$11m net profit in listed on AIM since October 2006 for technical reasons (shareholders agreement) with non-representative share price -shares listed on the WSE will not be fungible with AIM shares

6 Roadhsow presentation Main colour palette Secondary colour palette Map colours FillLine Page 5 6/2/2014 5:24 PM IBD\ING\War O\P\X Milestones Development of Canyon and Prestigio private labels Launch of the IT4Profit platform, on-line (B2B) purchasing platform for electronic trading with customers US$10m private placement of shares to institutional investors to fund growth 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 US$1bn Listing and share offering on the WSE planned for 2007 Established in Minsk, Belarus Distribution agreement with Seagate Distribution hub in Amsterdam CAGR = 23.4%

7 Roadhsow presentation Main colour palette Secondary colour palette Map colours FillLine Page 6 6/2/2014 5:24 PM IBD\ING\War O\P\X Competitive strengths Broad geographic coverage in CEE combined with local presence Unlike most of international competitors, the Group has strong local presence in a number of countries 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 In excess of US$1bn revenues in 2006 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 Critical mass 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

8 Roadhsow presentation Main colour palette Secondary colour palette Map colours FillLine Page 7 6/2/2014 5:24 PM IBD\ING\War O\P\X Market position In 2006 ASBIS sold 3.4 million CPUs and 3.3 million HDDs, while in total 14.1 million PCs were sold across the CEE region -implies c.23% market share One of the leading distributors for Intel, AMD and Seagate across the CEE region Top 1 – Top 3 EMEA distributor for other key suppliers 14,000 active customers in over 70 countries Local B2B e-shops integrated with a Group-wide on-line supply chain management system

9 Roadhsow presentation Main colour palette Secondary colour palette Map colours FillLine Page 8 6/2/2014 5:24 PM IBD\ING\War O\P\X Market overview and competitive landscape

10 Roadhsow presentation Main colour palette Secondary colour palette Map colours FillLine Page 9 6/2/2014 5:24 PM IBD\ING\War O\P\X Market growth 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 US$21.7bn in 2010 IT spending as a percentage of GDP by region (2005)CEE growth market by value of PCs shipments (US$bn) PC penetration level (June 2006) CAGR = 13.6% Source: Gartner Source: IDC PCs/100 head of population

11 Roadhsow presentation Main colour palette Secondary colour palette Map colours FillLine Page 10 6/2/2014 5:24 PM IBD\ING\War O\P\X Strategy ASBIS strategy Enhancement of B2B and B2C on-line sales channels Continued re-balancing of product mix with a view to improving profit margin Leveraging success of private label business (Canyon and Prestigio) Expansion to new emerging markets Increasing sales and market share in the EMEA region, through increased penetration and new ventures

12 Roadhsow presentation Main colour palette Secondary colour palette Map colours FillLine Page 11 6/2/2014 5:24 PM IBD\ING\War O\P\X Operations

13 Roadhsow presentation Main colour palette Secondary colour palette Map colours FillLine Page 12 6/2/2014 5:24 PM IBD\ING\War O\P\X 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) 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: 5.8% in 2005, 7.6% in 2006 Higher margin brand products -utilising existing distribution network -leveraging on the strong components business -innovative, aspirational products Technical support provided locally Revenue breakdown by value (1H 2007) Key suppliers – by sales contribution (1H 2007)

14 Roadhsow presentation Main colour palette Secondary colour palette Map colours FillLine Page 13 6/2/2014 5:24 PM IBD\ING\War O\P\X Key regions Key markets (1H 2007) -CIS (47%) -CEE (32%) -Western Europe (10%) -Middle East & Africa (8%) -Other (3%) Stable geographical sales split, focused on high-growth countries -Middle East and Africa growing fast Former Soviet UnionCentral & Eastern Europe Western Europe Middle East & Africa Other Revenue breakdown by region Note: Data have been subject to rounding adjustments, therefore the sum of the numbers may not conform exactly to the actual total figure

15 Roadhsow presentation Main colour palette Secondary colour palette Map colours FillLine Page 14 6/2/2014 5:24 PM IBD\ING\War O\P\X 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 Ballinloough Amsterdam Bratislava Casablanca Algiers Tunis Vilnlus Ljubljana Zagreb Istanbul Warsaw Minsk Sofia Moscow Kiev Bucharest Limassol Alma-Aty Prague Belgrade Tallinn Kosice Budapest Cairo Dubai Hong Kong Distribution centers Helsinki

16 Roadhsow presentation Main colour palette Secondary colour palette Map colours FillLine Page 15 6/2/2014 5:24 PM IBD\ING\War O\P\X IT4Profit On-line management and control ASBISs business is real-time managed and controlled through an on-line management system -gives visibility and transparency B2B e-shops, CRM, inventory and sales reporting systems -multilingual, multi-currency and tailored to local regulations Lead times and transaction costs minimised due to system integration with key suppliers and subsidiaries 50% of 2006 revenue generated on-line and centralised purchasing in Cyprus -goods shipped from one of the four distribution centres; small sized, high price dynamics and/or value products delivered directly by manufacturers Direct sales in all countries of Central and Eastern Europe and indirect sales in countries with under-developed infrastructure via a network of authorised resellers (e.g. Russia, Ukraine, North Africa) On-line marketplace developed by the Group IT4Profit functionalities -interconnectivity with suppliers -B2B and B2C on-line shops for both front and back office administration -on-line supply chain management with GPS tracking -statistics for product pricing and stock management -comprehensive reporting and a balanced scorecard management system -licence agreement in place

17 Roadhsow presentation Main colour palette Secondary colour palette Map colours FillLine Page 16 6/2/2014 5:24 PM IBD\ING\War O\P\X Financials

18 Roadhsow presentation Main colour palette Secondary colour palette Map colours FillLine Page 17 6/2/2014 5:24 PM IBD\ING\War O\P\X Key historical indicators Margins (%)Key historical data (US$m)

19 Roadhsow presentation Main colour palette Secondary colour palette Map colours FillLine Page 18 6/2/2014 5:24 PM IBD\ING\War O\P\X P&L 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

20 Roadhsow presentation Main colour palette Secondary colour palette Map colours FillLine Page 19 6/2/2014 5:24 PM IBD\ING\War O\P\X Balance Sheet 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

21 Roadhsow presentation Main colour palette Secondary colour palette Map colours FillLine Page 20 6/2/2014 5:24 PM IBD\ING\War O\P\X Commercial and financial risk management IT components distribution is inherently a risky business -industry dominated by global manufacturers on the supply side -frequent price wars between major players (e.g. Intel vs AMD) -shortening product life cycle due to innovation -stocks become obsolete rapidly -quality of components is crucial from the point of view of business clients As a preferred partner for players such as Intel, AMD, Seagate or Hitachi, ASBIS enjoys several privileges which reduce commercial and financial risk -contractual price protection – against product price decline with reimbursement for inventory in transit or held in warehouses -stock rotation policy – right to return slow-moving inventory, with terms based on sales performance in the preceding quarter -return material authorisation policy – defective items (e.g. CPUs or HDDs) may be returned for credit, replacement or refurbished products

22 Roadhsow presentation Main colour palette Secondary colour palette Map colours FillLine Page 21 6/2/2014 5:24 PM IBD\ING\War O\P\X Offering

23 Roadhsow presentation Main colour palette Secondary colour palette Map colours FillLine Page 22 6/2/2014 5:24 PM IBD\ING\War O\P\X Use of proceeds Proceeds to the company will be in PLN, converted into USD at the rate prevailing on the pricing date Based on the top of the price range, we are looking to raise c.PLN 82.9 million (US$ 29.6 million) (*) Use of proceeds: -Development of Prestigio and Canyon brands (marketing, design, sourcing and quality control) – approx. PLN 39,1 m (US$ 14.0 m) (*) -Taking advantage of early payment discounts offered by some of the key suppliers (eg. Seagate and Hitachi Global) in order to increase gross profit margins – approx. PLN 21.8 m (US$ 7.8 m) (*) -Expansion of the branded end-user products range on offer (eg. Toshiba notebooks) – approx. PLN 15.4 m (US$ 5.5 m) (*) -Completion of local HQ and warehouse in Slovakia – approx. PLN 2.0 m (US$ 0.7 m) (*) Capex plans – no major capex spending planned (*) US$ amounts converted at 1 US$ = PLN 2.80 rate of 20 June 2007

24 Roadhsow presentation Main colour palette Secondary colour palette Map colours FillLine Page 23 6/2/2014 5:24 PM IBD\ING\War O\P\X PLN 511m (US$ 191m) post-money (at the top of the price range) PLN 7.50 (US$2,8) to PLN 9.20 (US$ 3,4) per share. Pricing in PLN as base currency Up to 38.2% post-greenshoe (33.2% pre-greenshoe) 15% of the base deal (2,765,888 shares, all secondary) Warsaw Stock Exchange. The shares offered will not be listed on AIM 12 months on pre-IPO shareholders holding in excess of 1% and the Company (reflects 90.6% of all pre-money shares) Up to PLN 170 m (US$ 63m) - base deal, PLN195m (US$73m) – post-greenshoe ASBISc Enterprises PLC, KS Holdings, Maizuri Enterprises, Alpha Ventures and 15 other smaller shareholders Up to 21,205,144 shares, primary m (36%), secondary - 13,7 m (64%) Retail tranche – 2.65 m (12.5%), Institutional tranche – up to m (87.5%) Claw-back possible if tranches are not fully subscribed Offering details Expected market capitalisation Price range Free float Greenshoe Listing Lock up Offer size Selling Parties Offer structure

25 Roadhsow presentation Main colour palette Secondary colour palette Map colours FillLine Page 24 6/2/2014 5:24 PM IBD\ING\War O\P\X Timeline On or about 30 October October 2007 Not later than 19 October October October 2007 (18:00 CET Warsaw, 17:00 GMT London) Syndicate ING 10 to 18 October 2007 Roadshow Listing Settlement (T+3) Pricing and allotment Books open Books close Global Co-ordinator and Bookrunner Institutional distribution ING, BPH, BZ WBKRetail distribution

26 Roadhsow presentation Main colour palette Secondary colour palette Map colours FillLine Page 25 6/2/2014 5:24 PM IBD\ING\War O\P\X Summary

27 Roadhsow presentation Main colour palette Secondary colour palette Map colours FillLine Page 26 6/2/2014 5:24 PM IBD\ING\War O\P\X Key selling points One-stop shop for server, desktop and laptop segments Unique, pan-regional business model Preferred distributor status with key suppliers Exposure to the fast growing markets of Central Eastern Europe and Middle East Critical mass and scale of operations – revenues in excess of US$1bn, operations in 23 countries Growing gross margins and overall profitability Wide product portfolio with aggressive introduction of high margin own label brands Professional and experienced management team Significant barriers to entry Thorough knowledge and understanding of the local markets Size and product portfolio depth

28 Roadhsow presentation Main colour palette Secondary colour palette Map colours FillLine Page 27 6/2/2014 5:24 PM IBD\ING\War O\P\X Appendix

29 Roadhsow presentation Main colour palette Secondary colour palette Map colours FillLine Page 28 6/2/2014 5:24 PM IBD\ING\War O\P\X Own labels – Prestigio Launched in 2002 to supply premium quality IT products Positioned to profit from growth of flat panel/LCD displays Product range -laptops, -LCD TVs & monitors -digital media centers -data storage devices Target audience – urban/urban professional Marketing message – The Art Of High Tech with a premium, high-spec design

30 Roadhsow presentation Main colour palette Secondary colour palette Map colours FillLine Page 29 6/2/2014 5:24 PM IBD\ING\War O\P\X Own labels – Canyon Launched in 2001 to supply motherboards and VGA cards to Eastern European markets Currently, IT and consumer electronic peripherals and accessories sold through retail chains Product range -RAM and flash memory modules -networking products -external HDDs -MP3 players -speakers Target audience – teens/mid-twenties Marketing message – good quality at affordable price

31 Roadhsow presentation Main colour palette Secondary colour palette Map colours FillLine Page 30 6/2/2014 5:24 PM IBD\ING\War O\P\X Siarhei Kostevich, 43, CEO and President Holds a Masters degree in radio engineering design from the Radio Engineering University of Minsk (1987). Between 1987 and 1992, Siarhei worked as a member of the Research Centre at the Radio Engineering University in Minsk, where he published a series of articles on microelectronics design in local and world-wide specialist magazines. In 1990, Siarhei established a design and manufacturing business in Minsk, Belarus, a predecessor of ASBIS, and within 17 years built it into the leading computer component distributor in Eastern Europe and the former Soviet Union. Board of Directors - executive Constantinos Tziamalis, 32, Director of Credit and Investor Relations Holds a B.Sc. in Banking and Financial Services (1998) and a Masters (M.Sc.) in Finance (1999) from the University of Leicester. He worked at the private banking department of BNP Paribas in Cyprus and then joined a brokerage house, Proteas Asset Management Limited, for 3 years as Investor Accounts Manager. Constantinos joined the Company in January 2002 as Financial Project Manager. He was promoted to his current position as Corporate Credit Controller & Investor Relations in March 2003 and became Director of Credit and Investor Relations as of 23 April Marios Christou, 39, CFO Holds a B.A., dual major in Accounting and Information Systems and Economics, from Queens College of the City University of New York (C.U.N.Y.) (1992), and an M.B.A. in International Finance from St. Johns University, New York (1994). Marios is also a Certified Public Accountant (CPA) and a member of the American Institute of Certified Public Accountants (AICPA). Marios worked with Deloitte & Touche Limassol, Cyprus, for four years, as an audit manager. Marios then worked as a Financial Controller at Photos Photiades Breweries Ltd (part of the Carlsberg Group of companies) for three years. Marios joined the Company in August Laurent Journoud, 36, Sales and Marketing Holds an M.I.T. (Management – International Trade) and M.M.E. (Masters in European Management) from ICL Lyon, France (1993 and 1994 respectively). For more than 10 years, Laurent held senior international product management positions in the EMEA distribution industry with major multinationals, including Ingram Micro, Karma International and Actebis. Laurent joined the Company in January 2002 as Director of Product Lines. He is responsible for the Groups product portfolio and market development for each of the Groups technology offerings.

32 Roadhsow presentation Main colour palette Secondary colour palette Map colours FillLine Page 31 6/2/2014 5:24 PM IBD\ING\War O\P\X John Hirst, 54, Non-executive Director Holds a B.A. in Economics from Leeds University. He is also a Companion of the Chartered Management Institute, Associate in Corporate Treasury Management and a Fellow of the Institute of Chartered Accountants in England & Wales. Between 1979 and 1998, John served in various roles at Imperial Chemicals Industries plc, including that of CEO for ICI Performance Chemical, and from 1988 until 2005, he was the CEO of Premier Farnell plc, the UK listed global electronics distribution company. From 2005 until he joined the Company in 2006, John was a non-executive director of Hammerson Plc Board of Directors – non-executive Paul Swigart, 36, Non-executive Director Holds a B.A. in History (magna cum laude) (1992) from Princeton University. Paul was a partner at United Financial Group, a brokerage and London Stock Exchange market maker for a leading Russian investment bank. Paul has also worked at Scudder Kemper in New York as a Latin American analyst; at Omega Advisors in New York in the Emerging Market Equities department; and at CS First Boston in New York as a corporate finance analyst. He is the founder and controlling partner of Steep Rock Capital, an investment company established in May 2006.

33 Roadhsow presentation Main colour palette Secondary colour palette Map colours FillLine Page 32 6/2/2014 5:24 PM IBD\ING\War O\P\X Shareholder structure Notes: (1) Investment vehicle controlled by Mr Siarhei Kostevich (2) Investment vehicle controlled by Mr Yuri Ulasovich, VP for product marketing, and his wife

34 Roadhsow presentation Main colour palette Secondary colour palette Map colours FillLine Page 33 6/2/2014 5:24 PM IBD\ING\War O\P\X Key countries Geography of operations – revenue breakdown by countries ( ) Revenues by country – 1H 2007 Top 5 countries by sales Over 60% of the total sales in 1H 2007 generated in Top 5 countries


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