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1 Esprinet Group: the European technology wholesale distributor.

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Presentation on theme: "1 Esprinet Group: the European technology wholesale distributor."— Presentation transcript:

1 1 Esprinet Group: the European technology wholesale distributor

2 Esprinet Group - Institutional Presentation2 Index The Esprinet Group The market In Italy In Spain The business model Esprinet product marketing The sales force The customers In Italy In Spain The service division The logistics Esprinet Italy Esprinet Iberica

3 Esprinet Group - Institutional Presentation3 Index The Esprinet Group The market In Italy In Spain The business model Esprinet product marketing The sales force The customers In Italy In Spain The service division The logistics Esprinet Italy Esprinet Iberica

4 Esprinet Group - Institutional Presentation4 Group Overview (1) Source: Sirmi 2008, Business Publications Spain 2007 (2) Source: Company data, as per both Italian and Spanish market (3) Source: IMI, 2008 Multinational distributor of technology to resellers billion of sales, net income 24.3 million in No.1 in Italy (1) (75% of group sales),within the top 3 in (25% of Group Sales). Largest vendor portfolio as well as customer base within the peers (2). Competitive advantage based on unique internet-based business model. Superior profitability and return on capital employed (3). A committed management team with a consistent track record

5 Esprinet Group - Institutional Presentation5 Group Structure Esprinet SpA IT & CE Wholesaler Monclick (100%) B2C E-tailer IT& Consumer Electronics Esprinet Iberica (100%) Spanish IT & CE Wholesaler Comprel (100%) B2B Electronic Components Distribution

6 Esprinet Group - Institutional Presentation6 Geographical coverage Esprinet Italy Milan (Italy) Esprinet Iberica Zaragoza (Spain)

7 Esprinet Group - Institutional Presentation7 Key financials highlights (1) Net Financial Debt (2) vs Net Equity (m) 1)IFRS-International Financial Reporting Standards since fiscal year )See definition in Financial Statement. The net debt of 2006 includes the acquisition cost + net debt of acquired companies Actebis Italia and UMD SA, which have been consolidated since without consolidation of P&L but with full consolidation of Balance sheet. EBIT (/000) Acquisition of Pisani and Assotrade Acquisition of Memory Set Acquisition of UMD and Actebis

8 Esprinet Group - Institutional Presentation8 The business model that drives higher margins and lower costs

9 Esprinet Group - Institutional Presentation9 Esprinet Corporate Organizational Structure

10 Esprinet Group - Institutional Presentation10 Esprinet Italy Organizational Chart

11 Esprinet Group - Institutional Presentation11 Increasing the relative market share: a clear No.1 Source: Sirmi, January 2009 Italian Top Wholesalers: Esprinet is the No. 1

12 Esprinet Group - Institutional Presentation12 Source: Sirmi, January 2009 An undisputed leadership Var. % 2008 Revenues

13 Esprinet Group - Institutional Presentation13 *2004 figures are related to Memory Set, acquired in December are pro-forma sales, including UMD, acquired in December 2006 Source: Business Publications Spain 2007, Channel Partner 2008, IT Europa top Spanish distributors

14 Esprinet Group - Institutional Presentation14 Source: IMI, March 2008 (all data in m) 2007 European ranking: top 4 players

15 Esprinet Group - Institutional Presentation15 Index The Esprinet Group The market In Italy In Spain The business model Esprinet product marketing The sales force The customers In Italy In Spain The service division The logistics Esprinet Italy Esprinet Iberica

16 16 The Market

17 Esprinet Group - Institutional Presentation17 IT Addressable market: size and trends Hardware & Software Vendors IT Wholesale Distributors IT Resellers: Consumer Oriented and Business Oriented IndividualsSmall Medium BusinessesGovt. / Large Corporations 7.1b Italy 52% of total53% of total 5.0 b Spain 2.1b Spain 3.5b Italy 2.3 b Spain 3.0b Italy 2008 IT addressable market: 13.6bn Italy / 9.3bn Spain Total market (incl. IT serv. & app. SW): 24.0bn Italy / 15.0bn Spain 1 ST - TIER DISTRIBUTION 2 nd - TIER DISTRIBUTION DIRECT SALES Retailers/Computer shopDealers/VAR/System Integrator

18 Esprinet Group - Institutional Presentation18 The Italian Market: a fragmented and complex reality Over IT and Consumer Electronic Retailers in Italy Considerable complexity in terms of : - Number of employees (from one man company to a complex organization) -Revenue (from to ml of ) The Italian market is one of the most fragmented in Europe, featuring a huge number of SME. There are around small-medium sized companies in Europe of which 26% are in Italy. More than of these have less than 10 employees. N° of EMPLOYEESINDUSTRYBUSINESSSERVICESFINANCEGOVERNMENTTOTAL < 501,152,1181,600,5301,064,024116,572777,5794,710, ,3723,1796,7351,11414,71240, , , ,6454,701 TOTAL1,168,1241,603,9591,071,771117,846793,9364,755,636 Source Sirmi 2005

19 Esprinet Group - Institutional Presentation Italian Market Source: SIRMI SPA – January E M IQIIQIIIQIVQTotaleIQIIQIIIQIVQTotaleIQIIQIIIQIVQTotale Hardware 2.245,82.173,71.790,22.975,39.185,02.315,52.275,51.791,32.718,79.101,02.281,32.244,71.780,92.670,18.977,0 Software 1.035,51.049,8839,01.115,34.039,61.078,61.099,4881,61.105,44.165,01.086,01.133,3907,01.168,74.295,0 Development Services 1.115,11.141,91.121,31.142,74.521,01.149,51.185,81.154,71.090,04.580,01.133,51.214,81.194,71.143,04.686,0 Managing Services 1.434,11.443,81.426,51.443,25.747,61.457,21.467,41.450,71.424,75.800,01.452,51.470,21.460,31.481,05.864,0 Total IT 5.830,55.809,25.177,06.676, ,26.000,86.028,15.278,36.338, ,05.953,36.063,05.342,96.462, ,0 Total TLC , , , , , , , , , , , , , , ,0 Total ICT , , , , , , , , , , , , , , ,0 Total CE 2.066,92.350,11.734,62.899,49.051,02.213,32.483,01.829,52.678,29.204,02.232,72.517,31.859,02.723,09.332, E M IQIIQIIIQIVQTotaleIQIIQIIIQIVQTotaleIQIIQIIIQIVQTotale Hardware 24,5%23,7%19,5%32,4%100,0%25,4%25,0%19,7%29,9%100,0%25,4%25,0%19,8%29,7%100,0% Software 25,6%26,0%20,8%27,6%100,0%25,9%26,4%21,2%26,5%100,0%25,3%26,4%21,1%27,2%100,0% Development Services 24,7%25,3%24,8%25,3%100,0%25,1%25,9%25,2%23,8%100,0%24,2%25,9%25,5%24,4%100,0% Managing Services 25,0%25,1%24,8%25,1%100,0%25,1%25,3%25,0%24,6%100,0%24,8%25,1%24,9%25,3%100,0% Totale IT 24,8%24,7%22,0%28,4%100,0%25,4%25,5%22,3%26,8%100,0%25,0%25,5%22,4%27,1%100,0% Totale TLC 24,8% 25,0%25,4%100,0%24,7%25,1%24,9%25,3%100,0%24,6%25,0%24,9%25,6%100,0% Totale ICT 24,8% 23,9%26,5%100,0%25,0%25,2%23,9%25,9%100,0%24,7%25,2%24,0%26,1%100,0% Totale Consumer Electronics 22,8%26,0%19,2%32,0%100,0%24,0%27,0%19,9%29,1%100,0%23,9%27,0%19,9%29,2%100,0%

20 Esprinet Group - Institutional Presentation Italian Market: hardware and software figures End User Cost in milions of Euros Source: SIRMI SPA – January E M IQIIQIIIQIVQTotaleIQIIQIIIQIVQTotaleIQIIQIIIQIVQTotale Large Systems 40,038,051,081,0210,035,543,0 58,5180,032,540,541,057,0171,0 Sistemi 81,491,673,4125,5371,978,087,964,498,9329,270,782,764,385,1302,8 Workstation 1,61,91,31,96,71,3 1,11,45,11,1 1,01,14,3 PC 1.020,0928,0737,01.233,03.918,01.016,0926,0732,01.159,03.833,01.023,0896,0710,01.041,03.670,0 Stampanti 218,0196,0175,0279,0868,0227,0209,0181,0238,0855,0222,0202,5183,0231,5839,0 Storage 108,2103,597,8159,5469,0110,1114,594,1122,3441,0100,0110,092,0115,0417,0 Networking hardware 234,9252,1212,9266,3966,2251,4269,0228,8265,81.015,0254,1276,2240,7292,01.063,0 Altro 541,7562,6441,8829,12.375,2596,2624,8446,9774,82.442,7577,9635,7448,9847,42.509,9 Totale Hardware 2.245,82.173,71.790,22.975,39.185,02.315,52.275,51.791,32.718,79.101,02.281,32.244,71.780,92.670,18.977, E M IQIIQIIIQIVQTotaleIQIIQIIIQIVQTotaleIQIIQIIIQIVQTotale System Software 119,9112,891,5138,8463,0127,5122,7104,4125,4480,0129,0125,3107,0132,0493,3 Middleware e Tools 532,0569,7419,6605,32.126,6562,5603,5444,1614,92.225,0575,0630,0463,0662,72.330,7 Applicativo 383,6367,3327,9371,21.450,0388,6373,2333,1365,11.460,0382,0378,0337,0374,01.471,0 Totale Software 1.035,51.049,8839,01.115,34.039,61.078,61.099,4881,61.105,44.165,01.086,01.133,3907,01.168,74.295,0

21 Esprinet Group - Institutional Presentation21 The Italian Strategy: Organic Growth Opportunities Keep on addressing the Long Tail of Customers by means of our internet strategy, therefore growing sales and margins Focus on professional installers, resellers in adjacent industries that are now potential buyers of IT&CE products (i.e. tv installers, antitheft system installers etc.) Customers Sell contiguity products, that is products that are changing their technical/economical life cycle the like of videosurveillance systems, hybrid IP phone systems etc. Address the theoretically un-addressable market of services by means of an innovative methodology of service delivery name-coded Serviceland Products Further focus on sales processes redesign, relying heavily on IT and Web programming, having in mind both sales innovation and continuous drive to reduce costs Processes Grow the high margin Electronic Components business and focus more and more on adjacent professional markets the like of subsystems Electronic Components

22 Esprinet Group - Institutional Presentation22 Esprinet Group Financial Results as of 31 December 2008

23 Esprinet Group - Institutional Presentation23 Group financial highlights as of 31 December 2008 Sales were 2,373.3m (-2%) Italian sales: 1,781.2m (-1% versus 2007) Spanish sales: 592.0m (-6%) Gross profit was 142.6m (-7%) Italian gross profit: 125.4m (6.87% on sales from 6.90% of 2007) Spanish gross profit: 17.2m (2.90% on sales versus 4.23% of 2007) EBIT was 48.2m (-28%) In Italy 56.5m (3.09% on sales from 3.34% of 2007) In Spain negative by -8.3m (0.74% on sales from 1.01% of the previous year). Net of not-recurring charges, in the fourth quarter Esprinet Iberica returned to a positive EBIT of 1.6 million Net financial debt showed a cash surplus of 10.0 million, with an improvement of 65.7 m from a level of 55.7m of financial indebtedness as of December 31 st 2007 WC on sales equal to 57m (2% of sales) reducing by 55.0 m In Italy WC end of December 2008 was 18.4m (1% on sales) In Spain WC was 38.6m (6% on sales) with 65.1m reduction as compared to 2007

24 Esprinet Group - Institutional Presentation Outlook Current fiscal year will be one of the toughest since a long time Group completed several actions along the year aimed at responding to the risk in reducion in volumes of activities though the lowering of operating break-even point- especially at Esprinet Ibericas level – which ended up the shutdown of Bilbao office Reinforced initiatives to minimize capital needs Group benefitted from the positive outcome of negotiations with banks supporting credit facilities and restoring the desired levels of both financial stability and flexibility

25 Esprinet Group - Institutional Presentation25 Index The Esprinet Group The market In Italy In Spain The business model Esprinet product marketing The sales force The clients In Italy In Spain The service division The logistics Esprinet Italy Esprinet Iberica

26 26 Esprinets business model

27 Esprinet Group - Institutional Presentation27 Go-to-market VAR Supermarket Dealer SW House Small shops/ Franchising shops System Integr Internet Label Advertising Large Enterprise Public Administration SME End User Total number of companies in Italy: 50 employees = 44, Cash & Carry External People Sales Specialist Internal People Merchandiser Re-definition of needs and orders from the end-users drives the need to re-consider the go-to-market model

28 Esprinet Group - Institutional Presentation28 Go-to-market - Internet Seize the customers when they sell and not when they buy in other words help the customers sell before they buy The sites 10° year anniversary was celebrated on July 4° 2006

29 Esprinet Group - Institutional Presentation29 Esprinet Web Site Numbers ITALYSPAIN Change Change Site acceses ,80% ,04% Web Orders (Volume) ,32% ,44% Web Orders (Amount) ,58% ,31% % Web Orders (Amount)51,39%51,89%-0,50%30,28%34,66%-4,37% % Web Orders (Volume)76,19%77,79%-1,60%66,73%63,95%2,79% Credit Card Amount WebOrders ,60% ,84% Credit Card Volume WebOrders ,79% ,46% Clients with at least one Access ,97% ,18% Clients with at least one Weborder ,15% ,65% Italy 2008 working days : 253 Italy 2007 working days : 253 Spain 2008 working days : 254 Spain 2007 working days : 258

30 Esprinet Group - Institutional Presentation30 The Esprinet Web Site: the market standard for technology resellers Product availability in real time, information on delivery with SMS updates Detailed product data sheets that include every option, accessory and complementary product. Cross-selling intelligent system Multiple product research possibilities (type, multilevel, advanced, textual, per product and accessory/supplies research) On line service tracking of orders and returns Financial profile under control Personalized promotions and discounts Possible downloading of price lists, product data sheet and invoices System capable of confirming, modifying and cancelling orders End-users receive offers through an automatic alert system in cases where there are price changes, obsolete products or product depletion Dedicated area to supply products, digital products, game products and at the cash & carry Technical forums and live-web conferences Amerigo, navigator software in order to support clients in buying multi-licences Editable web-mailing

31 Esprinet Group - Institutional Presentation31 Index The Esprinet Group The market In Italy In Spain The business model Esprinet product marketing The sales force The customers In Italy In Spain The service division The logistics Esprinet Italy Esprinet Iberica

32 32 Esprinet product marketing

33 Esprinet Group - Institutional Presentation33 Product Marketing Nearly 100 professionals divided into 22 B.U. to serve different merchandising categories B.U. focused on the main traditional IT brands New B.U. focused on BIT Technology brands (digital solutions, luxury, e-domestic, games) They manage the margins and the warehouse stock, update the product data sheets on the web, plan co-marketing activities and maintain relations with the Vendors They are in charge of the Revenue Margin Debt Next to a well articulated Sales Structure there is a Product Marketing division subdivided into Business Units with 2 main priorities : Push on sales and short circuit clients through the web Request: Fast Market Response: Time to Market = 0 Tool: Various Organizational Classical Solution Esprinet Solution Product Marketing Sales Client SalesProduct Marketing Client

34 Esprinet Group - Institutional Presentation34 Product Marketing

35 Esprinet Group - Institutional Presentation35 Business Units B.U.Merchandising categories n. brand trattati BU HP PC, notebooks, servers, storage, hp services, workstations, organizers, monitors, accessories, printers, plotters, scanners, videoprojectors, printing solutions11 BU Acernotebooks, PCs, monitors,videoprojectors, servers, organizers, satellite navigators3 BU IBM servers, workstations, storage, notebooks, PCs, monitors, accessories, videoprojectors 4 BU Components cabinets, PC semi-assembled, sound cards, optical storage, MP3, motherboards, hard disks, storage, microprocessors, vga cards, bags, navigators, mouse, keyboards 42 BU Networking routers, switches, wireless, video surveillance, VOIP, storage, UPS 24 BU PerifericheMonitors, videoprojectors, printers, scanners25 BU SoftwareSoftware, CD, box, multi-licences 29 BU Value Storage, backup software, servers, blade server solutions, networking solutions, software solutions9

36 Esprinet Group - Institutional Presentation36 Business Units B.U.Product Categoriesn. brands BU Digital Home Photocameras, videocameras, camera lens, films, memory cards, hard disks, photograph printers, car radios, car audio, digital terrestrial decoders, DVDs, Home Theatre, Hi-Fi, TV (plasma. LCD & Crt), sintoamplificators, speakers, videoprojectors h.c. tv lcd, tv plasma, fotocamere digital compatte e reflex, videocamere, lenti, portafoto digitali, car audio, home theatre, dvd, digitali terrestri, hi fi50 BU Fujitsu Siemensnotebooks, PC, servers, monitors, organizers, accessories, cordless4 BU Telefoniamobile phones, smart phones and cordless 33 BU P/G Household appliancesSmall and large household appliances 43 BU Luxurysuitcases, pens, gift articles 13 BU Office notebooks, printers, photocopiers, multifunction, faxes, duplicators, document shredders, cutters, calculators, plotters, scanners 25 BU Suppliessupplies 64 BU ToshibaNotebooks, accessories, service (guarantee extensions)1 BU Gamesconsole games, controller games, videogames 27

37 Esprinet Group - Institutional Presentation37 Product Marketing – Brand Hardware

38 Esprinet Group - Institutional Presentation38 Product Marketing - Brand Networking

39 Esprinet Group - Institutional Presentation39 Product Marketing - Brand PC Components

40 Esprinet Group - Institutional Presentation40 Product Marketing - Brand Audio-Video

41 Esprinet Group - Institutional Presentation41 Product Marketing - Brand GPS Systems/Telecoms

42 Esprinet Group - Institutional Presentation42 Product Marketing - Brand Photo/Video

43 Esprinet Group - Institutional Presentation43 Product Marketing - Brand Peripherals and Office Equipments

44 Esprinet Group - Institutional Presentation44 Product Marketing - Brand Software

45 Esprinet Group - Institutional Presentation45 Product Marketing - Brand Consumables

46 Esprinet Group - Institutional Presentation46 Product Marketing Luxury

47 Esprinet Group - Institutional Presentation47 Product Marketing E-domestic

48 Esprinet Group - Institutional Presentation48 Product Marketing Games

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