Sed International Holdings Inc · OTC:SEDN
Sed International — Investor Presentation (March 2011)
18 slides from Sed International's investor presentation, Mar 16, 2011
Slide 1: Investor Presentation
INTERNATIONAL Investor Presentation Maren 20114 SED International Holdings, Inc. {SED}
Slide 2: Forward-looking statements
Statements made in this presentation that are not historical or current facts are “forward- looking statements.” These statements often can be identified by the use of terms such as “may, “expect,” "believes, ‘approximate or "continue," or the negative thereof. The Company wishes to caution the audi
Slide 3: Company overview
BRAT E a p AY ay IVOCTV om 5 * 30+ year operating history; publically held since 1986 * Headquartered near Atlanta with operations in the US and Latin America ed ‘* Microcomputer and consumer electronics products * Unparalleled customer service - 10,000+ customers; 170 vendors + FY 2010: Sales grew
Slide 4: Dynamic Leadership
Dynamic Leadership DEEP INDUSTRY AND MANAGEMENT EXPERIENCE Jonathan Ester ‘Stan Boumgariner Jan Overwyk Daniel Greeniee Dave Burroughs President & CEO CFO & Seniar VE VP of Operations ve of Sales ve of Strategic Sales ve and GMM, Consumer Electronics VP of Product Management VP of Latin America VP o
Slide 5: Superior Service, Customized Attention, Quick & Accurate Shipping
stlvtlts psy jes Superior Service * Customized Attention * Quick & Accurate Shipping
Slide 6: Our Performance: Seven consecutive quarters of profitability
® Our Performance: Seven consecutive quarters of profitability” with strong fundamentals and growing revenue base The SED Advantage: Sales driven organization targeting a unique customer base through superior customer service and a focused vendor strategy ® Industry Leading Vendors & Diverse Custome
Slide 7: Increasing Profitability
Increasing Profitability » = al _ I'S = @ 4 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 ($200,000) ($400,000) ($600,000) ($800,000) Operating Income (Loss) @Net Income (Loss) Q2 @ Q4 a Q2 @ a4 a Q2 Fyo9 FY09 FYO9 FY10 FY10* FY10 FY10 FY11 FY11 + Q2 fecal 2010 rats exclude
Slide 8: Quarterly Revenue ($ in Millions)
Qn Millions) $175 7 $150 $125 $100 $75 $50 $25 $0 Q2 Q3 Q4 ‘09 ‘09 ‘09 Q1 Q2 Q3 Q4 Qi Q2 10 ‘10 ‘10 10 1 '11 YOY Growth (%}: (3) (7) 10 6 29 21 5 11°12 Fisoal YearEmd:.tine 20
Slide 9: Working capital and balance sheet metrics
rt 2010 Trades Receivables, Net of Allowance $53.9M Dso 36 Days Inventories $47.9M DIO 33 Days Inventory Turnaver 12.5 Accounts Payable $62.0M Cash Conversion Cycle 26 Days Total Shareholders’ Equity §20.0M
Slide 10: Unique Customer Base
UNIQUE CUSTOMER BASE Focused on: Small to mid-sized VAR, system builder, independent retailer, e-commerce, specialty Unique customer base with minimal competitor overlap = The majority of SED customers depend on distribution as their primary supply source ‘THE RIGHT VENDOR PARTNERS Strategically sel
Slide 11: Superior Customer Service & Custom-Tailored Supply Chain
Superior Customer Service & Custom-Tailored Supply Chain Support Management Solutions + Pick, Pack and Ship Flexible Credit Terms and Conditions Internet Order Fulfillment Services SED Rewards” Inventory Management ¢ Floor Planning Vendor Compliance and Order Management Same-Day Shipping + Competiti
Slide 12: Key Customers and Industry Partners
Key Customers and industry Partners Western Digital acer amazoncom Walmart cw) GC S Winctionide TigerDirect.com
Slide 13: Diverse Customer Mix
Diverse Customer Mix Percentage of Revenue 1H 2017 U.S. Domestic Latin America” 23% 4 22% 18% 41% =E-Commerce Retailer =Retailer = Exporter VAR =DMR VAR = Other Other "Lan America custamermix includes U.S. expr revenues
Slide 14: 1H FY11 Revenue Mix
1H FY11 Revenue Mix U.S. Domestic: 645% Exports: 13% Latin America: 23% * Established national distribution business across all product segments * US domestic sales, including exports, increased 8.6% YOY to $123.1Min 20 FYI1 + Export sales: $20.3Min 2Q FY1 + Enhanced automation and reconfigured ware
Slide 15: eo - .. |
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Slide 16: Key growth initiatives
Expand Customer Base and Sales Enhance e-commerce channels Improve sales training and skills development Continue to grow line- card to address large growth markets and trends Increase Margins and Income Utilize Activity Based Costing model to optimize profitability decision-making process Align cos
Slide 17: Progress on growth initiatives
Customers Margins and Organizational and Sales Income 8 2QFY10: Improved gross Hired new CFO with key margins by 68 basis points YOY financial and public company and 79 basis points sequentially experience Increased revenue by 11.8% to$157.0M in 2Q FY11 2QFY11: Grew operating Reconfigured warehouses
Slide 18: Investment Summary
Investment Summary ¢ Established, multi-national technology distribution leader @ Proven business strategy: Focus on under-served market segments yields competitive market share and limited competition ¢ Mitigated risk profile with low level of customer concentration and diverse products/services @
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