Sed International Holdings Inc · OTC:SEDN
Sed International — Investor Presentation (May 2011)
18 slides from Sed International's investor presentation, May 20, 2011
Slide 1: SED International Holdings, Inc.
INTERNATIONAL SED International Holdings, Inc. (Amex: 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 -J@) ome Noe 30+ year operating history; publically held since 1986 ‘* Headquartered near Atlanta with operations in the US and Latin America ‘* Microcomputer and consumer electronics products * Unparalleled customer service - 10,000+ customers; 170 vendors + FY 2010: Sales grew 14.6% to $5
Slide 4: Deep Industry and Management Experience
DEEP INDUSTRY AND MANAGEMENT EXPERIENCE oP | tonathan ester President & CEO 15-year SED veteran 4 < Beemer 204 years senior financial/strategic experience, iil Fortune 500 CFO *’ ears jars distribution an < Dave Burroughs VP of Strategic Sales ao Yer Be dees Sctaboban and te S Industry experience en
Slide 5: Customer channels and service
stlvtlts psy jes Superior Service * Customized Attention * Quick & Accurate Shipping VAR = Value-Added Reseller; DMR = Direct Matt Reseller
Slide 6: Our Performance: Eight consecutive quarters of profitability
@® Our Performance: Eight 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 Custom
Slide 7: Increasing Profitability
Increasing Profitability Y » » =| vv) _ iS 2 @ “ $2,000,000 $1,500,000 $1,000,000 $500,000 $0 ($500,000) ($1,000,000) "Operating Income (Loss) "Net Income (Loss) Q2 Q3 Q4 Qi Q2 G3 Q4 Qt Q2 Q3 FY09 FYO9 FY09 FY10 FY10* FY10 FY10 FY11 FY41 FY11 + Q2 fecal 2010 reais exclude $1.6M arene employirent con
Slide 8: Quarterly revenue and year-over-year growth
Y » » =| vv) _ iS s @ 4 $175 $150 $125 $100 $75 $50 {in Millions) $25 $0 Q2 Q3 Q4 Qi ‘09 09 "09 40 Q2 Q3 40 "10 Q4 10 Qi “1 Q2 “1 Q3 41 YOY Growth (%): (3) itd) 10 5 1 Fisoal YearEmd:.tine 20
Slide 9: Working capital metrics
rt Trades Receivables, Net of Allowance Dso Inventories DIO Accounts Payable Cash Conversion Cycle Total Sharehoklers’ Equity
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: Percentage of Revenue First Nine Months FY11
Percentage of Revenue First 9 Months FY1tt U.S. Domestic Latin America” 23% 4 22% 18% 41% N 18% =E-Commerce Retailer =Retailer = Exporter VAR =DMR VAR = Other Other "Lan America custamermix includes U.S. expr revenues
Slide 14: Nine Months FY11 Revenue Mix
9 Months FY11 Revenue Mix - U.S. Domestic: 635% Exports: 14% Latin America: 23% * Established national distribution business across all product segments * US domestic sales, including exports, increased 9.9% YOY to $119.5Min 30 FYI1 + Export sales: $24.2Min 3Q FYA1 + Enhanced automation and reconfig
Slide 15: eo - .. |
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Slide 16: Growth strategy: expand customers, margins, efficiencies
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: Recent progress on growth initiatives
Customers Margins and Organizational and Sales Income 8 First 9 mos. FY1: Gross margin Began trading on NYSE Amex increased to 5.4% from 5.2% in under the ticker symbol “SED” the FY10 period. (on March 1,201 Increased revenue by 11.1% to $155.7M in 3Q FY11. Entered into favorable lease ‘agreement fo
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/serv
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