ELKO Group Corporate presentation
May, 2016 About ELKO
2016 LEADING GLOBAL VENDORS
23 YEARS IN BUSINESS
> 120 VENDORS
> 20 000 PRODUCTS
> 6 500 PARTNERS
2 BUSINESS DIVISIONS: BROADLINE SOLUTIONS
1993
2 Group’s Legal Structurecture
A/S ELKO Grupa
Baltics(1) CEE CIS
ELKO Lietuva UAB ELKOTEX d.o.o. ELKO Trading Switzerland AG 100% 51% Lithuania Slovenia Switzerland 100%
ELKO Eesti AS WESTech s.r.o. ELKO Mobile 100% 51% 51% Estonia Slovakia Cyprus
WESTech CZ ELKO Marketing Limited 100% 100% Czech Republic Cyprus(2)
ELKOTech Romania SA 100% Alma Ltd 100% Romania Russia
ELKO Ukraine Ltd Ukraine 100%
(1) Sales in Latvia, Lithuania and Estonia are done directly from ELKO Grupa (2) Manages sales to Russia and Ukraine ELKO Kazakhstan Ltd 100% Kazakhstan Regional Coverage
10 COUNTRIES WITH ELKO OFFICES
COUNTRIES WITH ELKO 14 REPRESENTATION 4 TRANSIT HUBS HQ IN RIGA, LATVIA
4 Extensive Range of Products % Revenue contribution by product group
Product range: more than 20 000 products
100% 1% 1% 2% 3% 4% 4% 3% 1% 7% 7% 8% 9% 10% 10% 90% 10% 12% 13% 14% 9% 7% 8% 7% 9% 80% 9% 12% 70% 16%
35% 38% 60% 35% 40% 39% 32%
50%
40% 53% 40% 1% 6% 17% 30%
44% 43% 43% 20% 39% 34% 26% 22% 10% 17%
0% 2008 2009 2010 2011 2012 2013 2014 2015
5 Vendor Relations and Range of Products 2015
Top Vendors, 2015
Other vendors
19.1%
2.1% 3.5%
4.3% 44.1%
4.7%
5.4%
8.2%
8.8% Region Shares
100% 10% 8% 8% 9% 9% 9% 9% 8% 10% Baltic Region 90% Latvia, Lithuania and Estonia. 13% 10% 10% 14% 16% Widest and most balanced product portfolio. 80% 21% 23% 30% Top 3 distributor in the Baltic region. 70% 40% CEE Region 60% Romania, Slovakia, Czech Republic and Slovenia.
50% Lenovo Smartphones partnership in Bulgaria, Slovakia, Romania, Hungary, Slovenia, Croatia, Macedonia, Serbia, Bosnia and
Revenue Herzegovina. 40% 81% 81% 76% 76% 78% 71% 70% Apple Premium reseller and B2B solutions provider in Slovakia and 30% 62% Czech Republic. 50% Top 3 distributor for each of its key vendors in the countries in which 20% ELKO operates. 10% CIS Region Present in Russia, Ukraine and Kazakhstan. 0% Smartphones business driving growth. Strongest PC Components Partner of Key Vendors. Top 3 distributor in Russia and Ukraine for each of its key vendors.
7 Sales Performance 2008 – 2015, 2016 FC
1,400
1,200
1,000
800 1,046
1,292 1,264 600 1,176 Millions USD Millions 1,059 1,089 955 400 790 642
200 252
0 2008 2009 2010 2011 2012 2013 2014 2015 Q1/2016 / FC
8 Profit Performance 2008 – 2015, 2016 FC
30.0 3.0%
1.6% 1.7% 2.0% 20.0 1.4% 1.5% 1.5% 1.2% 1.3% 1.0%
10.0 21.8 18.0 16.9 17.2 0.0% 12.9 13.50 10.0 -0.6% 1 0.0 -1.0% 2008 2009 2010 2011 2012 2013 2014 2015 Q1/2016 / FC -7.0
Millions USD Millions -2.0% -10.0 -26.6 -3.0%
-20.0 -4.1% -4.0%
-30.0 -5.0%
9 * Financial statements are prepared according to IFRS and audited by Big4 audit company - EY Financing development
Bank financing: Syndicate (Nordea, Swedbank, SEB) till Aug 2016, available 63m USD / extensions pre-approved Bonds 8m EUR issued New bank financing approved ~20m USD New factoring approved ~10m USD Trade payable financing programs with Deutsche Bank (40m USD) and IGF (36m USD)
Syndicate Nordea & SEB & SWED 30.04.2016 63 15 14 9 20 10 Promsvyazbank Other Bonds 31.12.2015 63 14 12 9 New Bank Financing (in process) New Factoring (in process) 31.12.2014 75 18 20
0 20 40 60 80 100 120 140 Borrowings (millions USD) Risk Mitigation
Centrally developed group policies, customized for each market
Inventory control: • Stock planned and ordered according actual situation and trends • Control over slow moving stock
Credit control: • Conservative credit policy and rigid control • High level in-house risk analysis • Securitization used whenever possible
Fx risk • Regular semi-automated monitoring • Advanced planning • Industry leading partners to cover open positions via relevant financial instruments Right Partner To Increase Your Success
Long-term cooperation-oriented and reliable partner
Leading Position with the Best Vendors
Strong Network of Relationships
Highly Developed, Leading Infrastructure and Logistics
Excellent Financial Performance
12 Thank you!