The Stanley Gibbons Group Limited

1
The Stanley Gibbons Group Limited

• Investor Presentation - March 2004

2
Overview

• Summary Financial Information
• Current Position
• Strategic Goals
• Prospects
• Risks
• People
• Shareholder Returns
• Investment Appraisal

3
Summary Financial Information
4
Current Position

• Three year turnaround, profits before tax targets
  exceeded (2003 1.23m)
• Fixed overheads reduced by 17 since 1999
• Sales growth now being achieved on higher gross
  margins, (2003 60.6 1999 55.6)
• Profits converted into cash (1.9m bank balances
  at 31 December 2003)
• Market value of investment in Provide Commerce
  2.5m (book value 223,000)

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Strategic Goals

• Continue to develop the Worlds number 1 online
  stamp community
• Exceed customer expectations through targetted
  direct marketing approach
• Fully service and market the sale of investment
  portfolios in stamps, coins and autographs
• Utilise and enhance IT systems to improve
  operational efficiencies and reduce costs
• Syndicate intellectual property worldwide

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Prospects Investment portfolios

• SG 100 stamp price index up 15 over twelve
  months (GB stamp prices up 20)
• New investment department set up to sell
  portfolios of stamps, autographs and coins
• Increased marketing of proposition
• Improve online information and portfolios for
  sale
• Focus on educating IFAs in the UK to offer
  alternative investments as an option to their
  clients

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Prospects - Internet

• Internet sales 25 up in 2003 over 9 million
  hits per month and 1 million unique visitors per
  annum
• Access to worldwide market (estimated at 30
  million collectors) through online trading
• Integration of our sister sites as sections of
  main site hinging all activity off established
  brand name
• Real-time catalogue pricing information
• Commissions from sale of other dealers stock
• Philatelic encyclopaedia and search engine

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Prospects Publishing

• 4.8 decline in turnover in 2003
• Electronic catalogue systems will enable an
  increase in the number of titles published in
  2004
• Publishing of all major and new titles in colour
• Reduced dependence on wholesalers with strong
  growth in sales and new customers online
• Advertising sales team strengthened
• Development of non philatelic advertising,
  corporate partners and sponsors

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Prospects - Marketing

• Use of CRM system - history of spending patterns,
  customer interests and campaign effectiveness
• Demand driven purchasing, pricing and product
  development
• Improve key customer service indicators
• Increased prospecting in target areas
  particularly overseas, (29 of sales now
  overseas, 2002 27)
• Increased telesales activity to understand and
  service customers needs better

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Prospects Overheads

• Scope to reduce internet development costs once
  major development work complete
• Reduced establishment costs in 2004 from
  sub-letting property income offset
• Continued focus on gross margin and clearance of
  aged stock subject to provision
• Reductions in administration staff from use of IT
• Reduced ongoing depreciation charges - systems
  development costs in 1999 and 2000 written off

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Risks

• Difficulties in reaching and communicating to a
  fragmented market
• Implementation of a global plan by a small
  company
• Recruiting and retaining the calibre of staff
  required to implement the strategy
• Improved performance of stock market leading to
  reduced demand for alternative investments
• Scarcity of supply for quality material

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People

• Good retention of in-house technical and
  specialist skills/knowledge
• Divisional autonomy, accountability and rewards
• Key personnel motivated by shareholder objectives
  through share options
• Monthly appraisal and performance meetings with
  clear objectives and tasks set each month
• Belief in the plan by all involved

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Shareholder Returns

• Tax structure now in place to pay dividends
• Share buybacks planned to support current price
• Return of cash through special dividend from
  proceeds of holding in Provide Commerce, Inc.
• Implementation of progressive dividend policy
• Forecast 123 increase in Earnings Per Share over
  next two years
• Strong trading in shares for size of company

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Investment Appraisal

• Three year history of achieving and exceeding
  market forecasts
• Growth prospects based on market size and
  strategic plans
• Strong philatelic market conditions prevailing
• Only recognised brand name in a market estimated
  to be worth 10 billion per annum
• Surplus cash to be returned to shareholders

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Appendix - Trading History