<p><strong>ELKO Group </strong></p><p><strong>Corporate presentation </strong></p><p>May, 2016 </p><p><strong>About ELKO </strong></p><p><strong>2016 </strong></p><p>LEADING GLOBAL VENDORS </p><p>23 </p><p>YEARS IN BUSINESS </p><p>&gt; 120 VENDORS &gt; 20 000 PRODUCTS &gt; 6 500 PARTNERS </p><p>2 BUSINESS&nbsp;DIVISIONS: </p><p>BROADLINE SOLUTIONS </p><p><strong>1993 </strong></p><p>2</p><p><strong>Group’s Legal Structurecture </strong></p><p><strong>A/S ELKO Grupa </strong></p><p><strong>(1) </strong></p><p></p><ul style="display: flex;"><li style="flex:1"><strong>Baltics </strong></li><li style="flex:1"><strong>CEE </strong></li></ul><p><strong>CIS </strong></p><p><strong>ELKO Trading Switzerland AG </strong></p><p><strong>Switzerland </strong></p><p><strong>ELKO Lietuva UAB </strong></p><p><strong>Lithuania </strong></p><p><strong>ELKOTEX d.o.o. </strong></p><p><strong>Slovenia </strong></p><p>51% 51% <br>100% 100% <br>100% </p><p><strong>ELKO Eesti AS </strong></p><p><strong>Estonia </strong></p><p><strong>ELKO Mobile </strong></p><p><strong>Cyprus </strong></p><p><strong>WESTech s.r.o. </strong></p><p><strong>Slovakia </strong></p><p>51% </p><p><strong>ELKO Marketing Limited </strong></p><p><strong>Cyprus</strong><sup style="top: -0.3em;"><strong>(2) </strong></sup></p><p><strong>WESTech CZ </strong></p><p><strong>Czech Republic </strong></p><p>100% <br>100% </p><p><strong>ELKOTech Romania SA </strong></p><p><strong>Romania </strong></p><p><strong>Alma Ltd </strong></p><p><strong>Russia </strong></p><p>100% <br>100% </p><p><strong>ELKO Ukraine Ltd </strong></p><p><strong>Ukraine </strong></p><p>100% </p><p><sup style="top: -0.27em;">(1) </sup>Sales in Latvia, Lithuania and Estonia are done directly from ELKO Grupa <sup style="top: -0.27em;">(2) </sup>Manages sales to Russia and Ukraine </p><p><strong>ELKO Kazakhstan Ltd </strong></p><p><strong>Kazakhstan </strong></p><p>100% </p><p><strong>Regional Coverage </strong></p><p>COUNTRIES WITH ELKO OFFICES </p><p>10 <br>14 </p><p>4</p><p>COUNTRIES WITH ELKO REPRESENTATION </p><p>TRANSIT HUBS </p><p>IN RIGA, LATVIA </p><p>HQ </p><p>4</p><p><strong>Extensive Range of Products </strong></p><p>% Revenue contribution by product group </p><p>Product range: more than 20 000 products </p><p>100% <br>90% 80% 70% 60% 50% 40% 30% 20% 10% <br>0% </p><p><strong>1% </strong></p><p><strong>7% </strong></p><p><strong>1% </strong></p><p><strong>7% </strong></p><p><strong>1% </strong></p><p><strong>2% </strong></p><p><strong>8% </strong></p><p><strong>3% </strong></p><p><strong>9% </strong></p><p><strong>3% </strong></p><p></p><ul style="display: flex;"><li style="flex:1"><strong>4% </strong></li><li style="flex:1"><strong>4% </strong></li></ul><p></p><p><strong>10% </strong></p><p><strong>10% </strong><br><strong>10% </strong><br><strong>12% </strong></p><p><strong>13% </strong></p><p><strong>35% </strong></p><p><strong>9% </strong></p><p><strong>7% </strong></p><p><strong>14% </strong></p><p><strong>35% </strong></p><p><strong>8% </strong></p><ul style="display: flex;"><li style="flex:1"><strong>7% </strong></li><li style="flex:1"><strong>9% </strong></li></ul><p></p><p><strong>9% </strong></p><p><strong>12% </strong><br><strong>16% </strong></p><p><strong>38% </strong><br><strong>40% </strong></p><p><strong>1% </strong><br><strong>39% </strong><br><strong>32% </strong></p><p><strong>53% </strong><br><strong>40% </strong></p><p><strong>6% </strong></p><p><strong>17% </strong><br><strong>44% </strong></p><p></p><ul style="display: flex;"><li style="flex:1"><strong>43% </strong></li><li style="flex:1"><strong>43% </strong></li></ul><p><strong>39% </strong></p><p><strong>34% </strong><br><strong>26% </strong><br><strong>22% </strong><br><strong>17% </strong></p><p></p><ul style="display: flex;"><li style="flex:1">2008 </li><li style="flex:1">2009 </li><li style="flex:1">2010 </li><li style="flex:1">2011 </li><li style="flex:1">2012 </li><li style="flex:1">2013 </li><li style="flex:1">2014 </li><li style="flex:1">2015 </li></ul><p></p><p>5</p><p><strong>Vendor Relations and Range of Products </strong></p><p>2015 </p><p>Top Vendors, 2015 </p><p><strong>Other vendors </strong></p><p><strong>19.1% </strong></p><p><strong>2.1% </strong></p><p><strong>3.5% </strong><br><strong>4.3% </strong></p><p><strong>4.7% </strong><br><strong>44.1% </strong><br><strong>5.4% </strong><br><strong>8.2% </strong><br><strong>8.8% </strong></p><p><strong>Region Shares </strong></p><p>100% <br>90% 80% 70% 60% 50% 40% 30% 20% 10% <br>0% </p><p>8% </p><ul style="display: flex;"><li style="flex:1">8% </li><li style="flex:1">8% </li><li style="flex:1">10% </li></ul><p>40% <br>9% <br>9% </p><p>9% </p><p>9% </p><p>10% </p><p>14% </p><p><strong>Baltic Region </strong></p><p>Latvia, Lithuania and Estonia. </p><p>10% </p><p>10% <br>13% <br>16% </p><p>Widest and most balanced product portfolio. Top 3 distributor in the Baltic region. </p><p>21% <br>23% </p><p>30% </p><p><strong>CEE Region </strong></p><p>Romania, Slovakia, Czech Republic and Slovenia. Lenovo Smartphones partnership in Bulgaria, Slovakia, Romania, Hungary, Slovenia, Croatia, Macedonia, Serbia, Bosnia and </p><p>Herzegovina. </p><p>81% <br>81% <br>78% </p><p>76% </p><p>76% <br>71% <br>70% </p><p>Apple Premium reseller and B2B solutions provider in Slovakia and Czech Republic. </p><p>62% <br>50% </p><p>Top 3 distributor for each of its key vendors in the countries in which ELKO operates. </p><p><strong>CIS Region </strong></p><p>Present in Russia, Ukraine and Kazakhstan. Smartphones business driving growth. Strongest PC Components Partner of Key Vendors. Top 3 distributor in Russia and Ukraine for each of its key vendors. </p><p>7</p><p><strong>Sales Performance </strong></p><p>2008 – 2015, 2016 FC </p><p>1,400 1,200 1,000 <br>800 600 400 200 <br>0</p><p><strong>1,046 </strong><br><strong>1,292 </strong><br><strong>1,264 </strong></p><p><strong>1,176 </strong><br><strong>1,089 </strong><br><strong>1,059 </strong></p><p><strong>955 </strong></p><p><strong>790 </strong></p><p><strong>642 </strong></p><p><strong>252 </strong></p><p></p><ul style="display: flex;"><li style="flex:1">2008 </li><li style="flex:1">2009 </li><li style="flex:1">2010 </li><li style="flex:1">2011 </li><li style="flex:1">2012 </li><li style="flex:1">2013 </li><li style="flex:1">2014 </li><li style="flex:1">2015 </li><li style="flex:1">Q1/2016 / FC </li></ul><p></p><p>8</p><p><strong>Profit Performance </strong></p><p>2008 – 2015, 2016 FC </p><p>30.0 </p><p>20.0 10.0 <br>0.0 </p><p>3.0% </p><p>2.0% 1.0% 0.0% -1.0% -2.0% -3.0% -4.0% -5.0% </p><p>1.7% <br>1.6% </p><ul style="display: flex;"><li style="flex:1">1.5% </li><li style="flex:1">1.5% </li></ul><p>1.4% <br>1.3% <br>1.2% </p><p><strong>21.8 </strong><br><strong>18.0 </strong></p><p><strong>17.2 </strong></p><p><strong>16.9 </strong></p><p><strong>13.50 </strong><br><strong>12.9 </strong></p><p>-0.6% </p><p><strong>10.0 </strong></p><p><strong>1</strong></p><p></p><ul style="display: flex;"><li style="flex:1">2008 </li><li style="flex:1">2009 </li><li style="flex:1">2010 </li><li style="flex:1">2011 </li><li style="flex:1">2012 </li><li style="flex:1">2013 </li><li style="flex:1">2014 </li><li style="flex:1">2015 </li><li style="flex:1">Q1/2016 / FC </li></ul><p></p><p><strong>-7.0 </strong></p><p>-10.0 </p><p>-20.0 </p><p>-30.0 </p><p><strong>-26.6 </strong></p><p>-4.1% </p><p>* Financial statements are prepared according to IFRS and audited by Big4 audit company - EY </p><p>9</p><p><strong>Financing development </strong></p><p>Bank financing: </p><p>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 </p><p>Trade payable financing programs with Deutsche Bank (40m USD) and IGF (36m USD) </p><p>Syndicate Nordea &amp; SEB &amp; SWED </p><p><strong>30.04.2016 31.12.2015 </strong></p><p><strong>31.12.2014 </strong></p><p></p><ul style="display: flex;"><li style="flex:1"><strong>63 </strong></li><li style="flex:1"><strong>15 </strong></li></ul><p><strong>14 </strong></p><ul style="display: flex;"><li style="flex:1"><strong>14 </strong></li><li style="flex:1"><strong>9</strong></li></ul><p></p><p></p><ul style="display: flex;"><li style="flex:1">20 </li><li style="flex:1">10 </li></ul><p></p><p>Promsvyazbank </p><p>Other Bonds </p><p></p><ul style="display: flex;"><li style="flex:1"><strong>12 </strong></li><li style="flex:1"><strong>9</strong></li></ul><p><strong>63 </strong></p><p>New Bank Financing (in process) </p><p>New Factoring (in process) </p><p><strong>75 </strong></p><ul style="display: flex;"><li style="flex:1"><strong>18 </strong></li><li style="flex:1"><strong>20 </strong></li></ul><p></p><p></p><ul style="display: flex;"><li style="flex:1"><strong>0</strong></li><li style="flex:1"><strong>20 </strong></li><li style="flex:1"><strong>40 </strong></li><li style="flex:1"><strong>60 </strong></li><li style="flex:1"><strong>80 </strong></li><li style="flex:1"><strong>100 </strong></li><li style="flex:1"><strong>120 </strong></li><li style="flex:1"><strong>140 </strong></li></ul><p></p><p><strong>Borrowings (millions USD) </strong></p><p><strong>Risk Mitigation </strong></p><p>Centrally developed group policies, customized for each market </p><p>Inventory control: </p><p>• Stock planned and ordered according actual situation and trends • Control over slow moving stock </p><p>Credit control: </p><p>• Conservative credit policy and rigid control • High level in-house risk analysis • Securitization used whenever possible </p><p>Fx risk </p><p>• Regular semi-automated monitoring • Advanced planning • Industry leading partners to cover open positions via relevant financial instruments </p><p><strong>Right Partner To Increase Your Success </strong></p><p><strong>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 </strong></p><p>12 </p><p><strong>Thank you! </strong></p>