Financial Results for Q1 2008/2009

August - October 2008

15 December 2008

Commencing the implementation of a new warehouse system in Zamienie

– the value of the contract with SSI SCHÄFER amounts to EUR 5.5 mln

Obtaining ISO 27001:2005 certificate

– Information Security Management System

Executing orders for PC and ACTINA servers for ZUS

5. place in the ranking of Businessman.pl magazine – Tele-IT

Winning the title of the Best Distributor 2007

and the Company of the Decade in a competition organized by CRN

magazine

Q1 2008/2009 IN THE COMPANY

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Sales revenue increased compared to Q1 of the previous year by 20.4%

Gross margin increased by 3.08 pp quarter on quarter prior to exchange rate differences

FINANCIAL RESULTS IN QUARTER 1

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Sales revenue (PLN M) Gross margin (%)

FINANCIAL RESULTS IN QUARTER 1

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Net profit / loss (PLN M) Net profit/loss (PLN M) without valuation of balances

The net loss for Q1 2008/2009 equals PLN -18 420 M and includes a valuation of currency balances amounting to PLN -14 154 M

The level of the net loss not considering currency conversion of balances amounted to PLN - 4 266 M

THE EFFECT OF CURRENCY CONVERSION

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Liabilities, receivables and cash are valuated

The total amount of currency conversion equals PLN -14,154 M and results mainly from the revaluation of liabilities:

The level of the net loss not considering currency conversion of balances amounted to PLN - 4 266 M

A higher value of liabilities was due to the construction of a warehouse at the end of the calendar year (PLN 173,861 M as of 31.07.08 in comparison with PLN 315,740 M as of 31.10.08 – increase of 81.6%)

Currency

Amount in the

currency

Amount in PLN

Exchange rate for

recording the

amounts

The exchange rate of the National Bank of

Poland as of

31.10.08

Value following the revaluation

Exchange rate difference from the

revaluation

EUR 31 777 015 110 728 293 3.4845 3.633 115 445 896 -4 717 603USD 27 604 292 69 158 475 2.5054 2.8472 78 594 940 -9 436 465

  59 381 307 179 886 768     194 040 836 -14 154 068

DETAILED FINANCIAL DATA

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[PLN M] Q1 2007/2008 Q1 2008/2009 Change

Sales revenue 505 177 608 405 20.4%

Gross sales revenue 36 244 62 372 72.1%

Gross sales margin 7.2% 10.3% 3.1 pp

Cost of sales and marketing 24 121 31 770  31.7%

Related to revenue 4.8% 5.2% 0.4 pp

General administrative costs 10 786 6 788  -37.1%

Related to revenue 2.1% 1.1%- 1.0 pp

Other operating costs and losses 885 45 943  5091.3%

Operating result 10 215 - 18 055  -276.7%

Net financial costs 603 1 555 157.9% 

Net result 5001 - 18 420 - 468.3%

Net result profitability 0.99% - 3.03%- 4.0 pp

INCREASING DISTRIBUTION DYNAMICS

The number of customers served rose by 6,01% as compared to Q4 2007/2008 (on average 9,177 customers per quarter), and year on year by 15.25%

The number of products offered by ACTION came to 17,265 items

The number of invoice items increased by 7.06% as compared to Q4 2007 (on average 537,995 items per month), a rise of 12.98% year on year

There were over 5.37 mln visits to I-serwis website descriptions monthly - a rise of 18.56% as compared to Q4 and 39.6% more calculated year on year

The number of items per order increased from 8.78 to 9.16 , i.e. by 4.26% as compared to Q4 2007/2008 and 8.8% calculated year on year

The implementation of a new modern warehouse system was commenced. The system will start operating by 31 August 2009 and will enhance the Company's logistics capacity even threefold.

IMPLEMENTATION OF THE STRATEGY

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SFERIS

Two TV campaigns involving ASUS and HP notebooks - intensive communication within the period of one and a half months translated into growing SFERIS brand awareness

Goods and services sales rose by 58.5% year on year

6 new shops were opened - in Katowice, Rzeszów, Białystok, Dąbrowa Górnicza, Konin and Piła

Further 3 shops are planned to be opened at the beginning of 2009

ACTION UKRAINA - works on improving effectiveness and implementing modern organizational standards

A.PL - works on the preparation of a new website

IMPLEMENTATION OF THE STRATEGY

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Optimising operating expenses

Revision of investment plans

Verification of sales strategy

Change to the protection policy

ACTIONS INTENDED FOR THE UPCOMING CRISIS

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On 24 November 2008 an agreement was signed between:

ACTION S.A. Management Board

PCF S.A. Management Board

Vobis S.A. Management Board

The goal of the agreement is to:

assess the possibility of creating the largest entity on Polish IT distribution market by the companies

develop a structure and method of conducting the transaction

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SOURCING AGREEMENT

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THANK YOU FOR

YOUR ATTENTION