Softline Presentation for investors
2 Legal notice Purpose of the Information Presentation This Information Presentation contains information of a proprietary and confidential nature relating to Softline ("the Company"). The above-mentioned information was prepared by Softline based on its data, as well as on data from other sources, references to which are made in the document. This Information Presentation was prepared solely for the purpose of introducing the Potential Investor (hereinafter the "Recipient") to the activities and financial position of the Company. This Information Presentation, including appendices hereto, and the information it contains does not constitute an offer to sell or invitation to purchase any shares or related assets of the Company, and shall not be a part of any investment decision or decision related to the possibility of signing any agreement with the Company. The Recipient of this Information Presentation should not interpret its contents and any preceding or following related information, as well as the data of the Company’s Information Presentation, as legal, business, tax, or any other advice. For all legal, business, accounting, or tax issues the Recipient should consult its corresponding advisors. Contents of the Information Presentation Softline does not owe a duty of care to the Recipient, either in relation to this Information Presentation or any other information which the Recipient may be provided with at any time, other than as may arise out of a written agreement. The Recipient must undertake such investigations as it sees fit before entering into any contract. Neither Softline nor any of its partners, officers, employees and agents makes any express or implied representations or warranties, and no responsibility or liability is accepted by any of them with respect to the adequacy, accuracy, completeness or reasonableness of the facts, opinions, estimates, calculations, forecasts, projections or other information set out in this Information Presentation and appendices hereto or any further information, written or oral notice, or other document at any time supplied in connection with it, and nothing contained herein, or therein shall be relied upon as a promise or representation regarding the historic or current position or performance of the Company or any future events or any future events or performance of the Company.
Agenda 1. Introduction to Softline 2. Financial profile 3. Strategy highlights 4. Market overview
4 Global Digital Transformation & Cybersecurity Solutions Provider Gross Profit 1 division by product segment (%): Microsoft’s global partner: sale of software and licenses - 49% • One of 6 Globally Managed Licensing Solution Providers (LSPs), which sale of hardware – 10% • provides selling, marketing, and technical support benefits to Softline IT-services - 19% • cloud – 22% • Corporate clients: Presence in 50+ countries (% of turnover as of 2019FY): 60,000+ globally Russia - 65% • most of the clients are corporate customers from industrial and • retail sectors and government organizations CIS – 8% • LATAM – 12% • Headcount: APAC – 14% • over 4,000 employees, including 500+ engineers, developers and other CEE – 2% • IT professionals, 400+ product specialists and over 1,100 account managers Vendors: 3,000+ with the largest being Microsoft, Kaspersky, Oracle, VMWare and HP Partnership statuses: the highest partnership statuses with major software and hardware vendors 1 2019 FY data. Finance year ending in March (e.g., 2019 refers to YE 31-Mar-2020)
5 Track Record of 25 years of Successful Development Turnover: $1,193 mn Turnover: $735 mn Key developments: Key developments: Foundation Key developments: Key developments: DeskWork corporate portal – Additional equity was raised from Headcount: proprietary product Launch of Softline Included in TOP-7 private IT international Private Equity Fund education center 10 employees companies in Russia, by Forbes Launch of Softline Services Key developments: 4 medium sized M&A deals were dep. and SaaS store Development of More than 1,000 IT services closed in 2017 (Enaza, Insight, Main services: Softline Consulting distribution business projects Zsquare, Infosecurity) Global expansion: Services scientific software Global expansion: Global expansion: Global expansion: + Venezuela licensing Global expansion: + Armenia + Ukraine + Chile + Thailand Geo presence: + Kazakhstan + Vietnam + Peru + Philippines + Uzbekistan + Turkey Russia + Malaysia + Ecuador + Kyrgyzstan + Cambodia + CEE countries 1993 1998 2001 2003 2005 2007 2009 2012 2015 2016 2017 2020 Turnover: $899 mn Key devel elopmen ments: s: Key devel elopmen ents: Key devel elopmen ments: s: Key devel elopmen ments: s: 3 medium sized M&A deals were closed Leader in software licensing Key devel elopmen ents: Multiple M&A in 2016 (Compusoftware, IT Guard, Launch of Softline Launch of electronic in Russia and CIS transactions are in Active Cloud) Partner of Microsoft Solutions consulting distribution, web-development, Global al expansion sion: pipeline for 2020+ company venture projects Global al expansion sion: Marketing innovations + Azerbaijan JV with Microsoft – Global al expansion sion: + Laos Turnover: $1,609 mn (2019FY) Global al expansion sion: + Tajikistan Microsoft solutions + Moldova + USA + Georgia center + 1 M&A deal closed – HTC Group acquired (Russia) + Belarus + Brazil + Romania + Mongolia + Partnership with OEP to acquire Crayon stake Launch of distribution + Argentina + Costa-Rica + CEE expansion company Axoft + Turkmenistan + India + Myanmar Leading IT Solutions & Services provider, Digital Transformation • SW, HW, Services, Cloud in Cyber Security with active organic and M&A development • Reseller of SW in Russia BRICS+ Softline as a platform for exporting Russian IT technologies to • BRICS+
6 Softline is a Global IT Services Provider The company operates in more than 95 cities in 50 countries Our Core Markets : Americas EE&CA Russia Asia Russia • Argentina Armenia Moscow Bangladesh Kazakhstan • Brazil Azerbaijan St. Petersburg Cambodia Chile Belarus Arkhangelsk India Belarus • Colombia Bulgaria Belgorod Malaysia Romania Costa Rica Croatia Chelyabinsk Mongolia • Ecuador Georgia Ekaterinburg Myanmar Honduras Hungary Irkutsk Philippines Thailand • Mexico Kazakhstan Izhevsk Thailand Philippines Panama Kyrgyzstan Kaliningrad Vietnam • Paraguay Moldova Kazan India • Peru Romania Khabarovsk Salvador Serbia Krasnodar Vietnam • Uruguay Slovenia Krasnoyarsk USA Tajikistan Murmansk Malaysia • Venezuela Turkey Nizhny Novgorod Turkmenistan Novosibirsk Brazil • Uzbekistan Omsk Argentina Orenburg • Perm Chili • Rostov-on-Don Samara Colombia • Saratov Surgut Taganrog Tomsk Tyumen Ufa Vladivostok Volgograd Voronezh Yaroslavl
7 Softline Business Structure Softline business is composed of 3 key Business Units Business Unit SOFTLINE AXOFT ALLSOFT E-commerce: • B2B Direct Sales Indirect Sales WEB store • • Business Overview o VAR: Software, Hardware, Services, Cloud VAD: IT Security, Cloud, Infrastructure Shopping Carts for Vendors • • o Payments for TELCOs o Russia • Russia • Russia CIS • • Sales Geography EE&CA • CIS Other (Hungary, Czech Republic, • • ROW (Rest of the World) • Slovakia, Brazil, India, LATAM) Software ( SW ) SW&HW Hardware (HW) Software (SW) Software (SW ) Key Vendors
8 Leading position in Russian IT market According to the data of the renown rating agencies, Softline is one of the leaders in most segments of the Russian IT market Agen ency List Place 2019 rank Company 2018 rank Company The biggest private companies in Russia 170/200 1 NCC 1 Softlin line The biggest companies in Russia 221/500 2 Lanit 2 Krok 3 Borlas 3 Softlin line The biggest companies in Russia 163/600 4 Zyfra 4 ITG The biggest IT providers for Public sector in Russia 1 5 Consyst 5 iTecho 6 ITPS 6 Krok The biggest IT providers for Retail sector in Russia 1 7 GMCS 7 FTC The biggest Information Securities providers in Russia 2 8 IPL Consulting 8 Infosystems Jet 9 Raytech 9 Compulink The biggest IT providers for Banking sector in Russia 3 10 Rdtex 10 SKB Kontur The biggest IaaS providers in Russia 1 The biggest IT providers in Industrial sector in Russia 1 2018 rank Company 2019 rank Company The biggest System integrators in Information Security in Russia 1 1 Rostech 1 NCC 2 Lanit 2 NCC The biggest SaaS providers in Russia 2 3 Epam 3 Lanit The biggest companies in Information Security industry in Russia 2 4 Softlin line 4 Softlin line 5 1C 5 1C The biggest IT providers for Public sector in Russia 2 6 Kaspersky 6 Kaspersky The biggest IT providers of Data analysis solutions in Russia 3 7 ITG 7 ITG 8 Rostelecom 8 Rostelecom The biggest IT providers for Banking sector in Russia 4 9 SAP CIS 9 SAP CIS The biggest IT providers for Telecom sector in Russia 7 10 iTecho 10 iTecho
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