GTDC Investor Relations Conference Michael Urban Chairman

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GTDC Investor Relations ConferenceMichael
UrbanChairman CEO ACTEBIS

• June 4, 2003
• New York

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Overview

• Actebis commercial
• Differences in Europe
• How does that impact our industry
• Outlook

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Overview

• Actebis commercial
• Differences in Europe
• How does that impact our industry
• Outlook

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Actebis history

• Founded in 1986
• 100 owned by OTTO since 1-1-98
• Private company
• Third largest pan European Distributor ( 3.9B /
  2.600 employees)
• Focused broad base distributor (100 vendors, 27
  strategic)
• Leader in Small Medium Business market
• Strong in Assembler market
• Manufacturer of private label products
• Strong in logistic and fulfilment
• 13 subsidiaries in 12 European countries

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Actebis European coverage (12 countries with
388M inhabitants)
Norway, 4.4M
Production Office and Local Warehouse Office
without warehouse Sales Office
Denmark, 5.3M
UK, 58.8M
Holland 15.8M
Poland, 38.8M
Sales office in Moscow
Belgium
Czech Rep., 10.3M
Germany, 82.5M
Austria, 8.2M
numbers represent millions of inhabitants per
country
France, 59M
Swiss, 7.3M
Italy, 57.4M
Spain, 39.7M
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What made Actebis successful

• Starting from scratch
• Acquisitions in Germany, France, Poland and
  Switzerland
• Storage and components
• Strong customer base with systems builders and
  SMB
• Clear focus on customer segments
• Private label business
• Channel assembly
• Logistics and fulfilment expertise
• Limited broad line strategy
• Being European

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Overview

• Actebis commercial
• Differences in Europe
• IT industry in Europe
• Outlook

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Cultural Differences

• Many nationalities
• Wars have influenced behavior
• Culture differs by country
• Different national holidays
• Countries vary in size

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Country Information
1 sq mile approx km sq 2.5
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Languages in Europe

• Each country has its language(s)
• Some have 3
• Most have more than 128 characters
• Ü é â ä à å ç ê ë è ï î ì Ä Å É æ Æ ô ö ò û ù ÿ Ö
  Ü ø ß
• Marketing does not go cross border
• Different cost of doing business per country

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Monetary Differences

• Each country had their currency until 1-1-2002
• Germany, France, Italy, Spain, Portugal, Austria,
  Sweden, Finland, Netherlands, Belgium, Greece and
  Ireland are EURO countries
• UK, Norway, Denmark and Switzerland have still
  there own currency
• Some take computer space
• 1 TRL 1,500,000

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Legal Differences

• Local laws
• Different environmental laws
• Different VAT and TAX
• Different corporate and employee tax
• Various charges on products
• Some countries still have borders

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Technical Differences

• PTT approvals are different
• PCs have various keyboards
• PCs have various manuals
• Software has to be in local language
• Not all countries have same power plug
• Some products are multi-lingual

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Overview

• Actebis commercial
• Differences in Europe
• How does that impact our industry
• Outlook

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Impact on our industry (1)

• Europe is a typical distribution landscape
• Lots of distributors
• No pan European distributor successful in every
  country
• Some local distributors really successful in
  their country
• Lots of resellers
• Country limited in size
• Country specifics make it more difficult to
  centralize
• High number of SKUs due to different
• Keyboards
• Software
• Manuals
• Plugs
• PTT approvals
• Packaging

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Impact on our industry (2)

• Huge reseller community
• Big group of corporate resellers (some in
  multiple countries)
• There is no single reseller for the whole of
  Europe
• As corporate accounts cut IT spending, everybody
  tries to go SMB where the business is more
  spontaneous
• Enormous amount of resellers focusing on SMB (SMB
  does not travel)
• Although resellers frequently go out of business,
  Europe has still the same number of resellers as
  5 and 10 years ago
• There are still more than 50.000 very good
  reseller in W-Europe
• Resellers should offer best of breed solutions to
  counter Dell
• Difficult and expensive to go direct

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PC Market shares Q1-2003
34.2 Million Units
10.8 Million Units
11.8 Million Units
HP
Dell
Market Milestone During 4Q02, more PCs were
shipped in EMEA than in the US
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Overview

• Actebis commercial
• Differences in Europe
• How does that impact our industry
• Outlook

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Outlook European Market (1)

• No recovery of the economy expected before 2004
• Outlook for the 2nd half of 2003 in Europe is
  with some hope
• Tough economic conditions further drive cost
  savings strategy
• Corporate spending continues to decrease
• Consumers are reserved (asking for high price
  performance ratio)
• The strong Euro will arrest the Export

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Outlook European Market (2)

• Bad market situation in Germany
• Some growing markets like in Italy and in
  Eastern Europe
• Notebooks and consumer market will drive PC sales
• Uncertainty of impact of EMEA channel reinvention
  by vendors (HP, Intel etc.)
• Credit lines for resellers is a big issue
• A lot of local distributors will go out of
  business

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I hope this overview was useful to you!If you
like to have a copy of this presentation or any
other questions dont hesitate to contact me.
MURBAN_at_ACTEBIS.COM

• QA

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Bonus
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Country Information
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The Euro

• Reduces risk of holding inventory
• A common language for negotiation
• Improved comparisons between competitors
• Reduced cost of banking
• Pricing transparency and more convenient travel
• Transparency puts pressure on margin
• Consumer and corporate taxation rates and VAT are
  not common
• Common pan-euro street price still not possible

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GDP per CAPITAUS 36.200Japan 24.900 EU15
22.462

• Belgium 25.300
• Sweden 22.200
• Denmark 25.500
• Germany 23.400
• Finland 22.900
• Italy 22.100
• Norway 27.700
• France 24.400
• Austria 25.000

• Netherlands 24.400
• Luxembourg 36.400
• Spain 18.000
• Portugal 15.800
• Greece 17.200
• Ireland 21.600
• UK 22.800
• Iceland 24.800
• Switzerland 28.600

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A c t e b i s. . .some key words that should
come to mind

• Private company
• Financially very strong
• Large Pan European Distributor
• Profit driven
• Focused broad base distributor
• Strategic partnership
• Leader in Small Medium Business market