Chris Scoble Nashua Investor Presentation 31 July 2008

Chris ScobleChris Scoble

Nashua Investor PresentationNashua Investor Presentation31 July 200831 July 2008

NASHUA WORLDNASHUA WORLD

Output

BusinessProcesses

Voi

ceIm

age/Data

Documents

Scanner, Fax, E-mail

Fax, E-mail, Cellular, PABX

Software, Monitoring, Storage System.

Printer, Copy, Duplicator, Colour

Input

Communications Storage/Retrieval

NASHUA WORLDNASHUA WORLDSupplier of Products/Services/Finance to Supplier of Products/Services/Finance to Businesses and Business People.Businesses and Business People.

Focus on value sales and after market service Focus on value sales and after market service where there is value.where there is value.

Key Success Factors:Key Success Factors:

•Seen as Market Leaders.Seen as Market Leaders.

•High profile value brand.High profile value brand.

•Best products/service.Best products/service.

•Customer satisfaction.Customer satisfaction.

•Long term business relationships.Long term business relationships.

•Financially strong.Financially strong.

International SuppliersInternational Suppliers

Copiers - Ricoh Printers - Ricoh- Panasonic - Texas Investments- Mita - Goldstar- Sharp - Fargo- Samsung - Samsung- Kodak - QMS

Fax - Ricoh Scanners - Ricoh- Guis (OEM) - Kodak- Goldstar- SAGEM Paper - Mondi/Sappi/OEM- Right Fax

PC/Notebook - Delta (OEM) Consumables - Ricoh, Katun, Raven

- Goldstar- Texas Instruments Diskettes/- NEC tapes etc. - Nashua Corp.

Nashua Ricoh Relationship

•Nashua has been distributing Ricoh products for the last Nashua has been distributing Ricoh products for the last

30 years in the SA Market.30 years in the SA Market.

•Nashua is currently Ricoh Europe’s largest distributor.Nashua is currently Ricoh Europe’s largest distributor.

•Ricoh currently holds the number 1 position in the US, Ricoh currently holds the number 1 position in the US, European and Japanese markets in MFP’s.European and Japanese markets in MFP’s.

•Ricoh employs ± 300,000 workers worldwide.Ricoh employs ± 300,000 workers worldwide.

•Consolidated net sales in 2004 were 1,814 billion Yen. Consolidated net sales in 2004 were 1,814 billion Yen.

•8% of non-consolidated net sales is spent on R&D.8% of non-consolidated net sales is spent on R&D.

Europeand Africa

Americas

1,704 1,306

16.9%

Total placement(000 units)

(Including Canada, Central & South America)

Asia and Oceania

1,218

26.7%

(Including Near East & Africa)

(Including Japan)

Placement & Share of B&W Office copier excluding PC

28.1%

World Share

23.2%

World Share

23.2%

Ricoh Market Share

BOTSWANA

Reunert owned

NAMIBIA

BOTSWANA

NORTHERN CAPE

ZIMBABWE

LIMPOPO

MOZAMBIQUE

NORTH WEST

WESTERNCAPE

EASTERN CAPE

FREESTATE

LESOTHO

GAUTENG

KWA-ZULUNATAL

MPUMALANGA

SWAZI-LAND

63 Offices

Franchise OwnershipFranchise OwnershipStrategy:

•Building on the successful Franchising Strategy of Nashua Ltd.

•To obtain controlling shareholding in large and medium Franchises.

•75% for Large and 51% for Medium.

•Increasing contribution and getting closer to the end-user.

•Finance required from Ltd would justify shareholding.

•Hybrid ownership option should incentivise growth.

Franchise OwnershipFranchise Ownership

Franchise Ownership % of Total

Pretoria 51% 6%

West Rand 51% 5%

Port Elizabeth 51% 4%

Kopano 74% 28%

•43% of unit sales.

•PTA/West Rand below budget on profit.

•Unit sales in PTA up 30%.

•Cape Town/Durban contracts expire in 2011.

Nashua North

Nashua Durban

Nashua North East

Nashua Port Elizabeth

Nashua Western Cape

Nashua Cape Town

Nashua AS400

1. Links Franchise holders to Nashua Ltd.

2. Real time business application.

3. Intranet facilities.

4. 52 connected Franchises at all times.

5. Provide internet access and email connectivity.

6. Training from Ricoh Europe via internet (Linc).

7. Direct link to suppliers (Ricoh One).

8. Full spectrum of business applications.

9. 1400 users connected on the system.

10. Ability to monitor and evaluate contracts all over SA.

11. Has enabled Nashua to service the major Corporates in SA.

Nashua Marketing

•High Profile brand.

•Aggressive Marketing Philosophy.

•Household name.

•Saving you time, saving you money, putting you first.

•Customer focus.

•Consistent corporate ID.

Sponsorships past and present

Product Offering

• Multifunctional Copiers/Printers B&W.

• Printers.

• Facsimile Devices.

• Colour Multifunction Copier/printers.

• Wide Format Printers.

• Duplicators.

• Storage & Retrieval Software.

• Tracking Software.

• Consumables (toner/ink).

• PABX.

Boston Consultancy MatrixBoston Consultancy Matrix

High

Low

Market Growth

High LowMarket Market ShareShare

StarsStars Question marksQuestion marks

Cash CowsCash Cows DogsDogs

Colour Hybrids Gel TechnologyCat 3 Ricoh and SamsungSoftware SolutionsWideformat printingColour laser printers PABX

High VolumeCat 2 black and whiteDuplicatorsCat 4 black and whiteCat 1

Fax Products

Total printer MIF contract m/c onlyTotal printer MIF contract m/c only

0.00

2,000.00

4,000.00

6,000.00

8,000.00

10,000.00

12,000.00

2004 2005 2006 2007

Colour Prints per month Colour Prints per month

0

1000000

2000000

3000000

4000000

5000000

6000000

7000000

10 11 12 1 2 3 4 5 6 7 8 9

2005

2006

2007

2008 YTD

Colour Printer Consumable T/OColour Printer Consumable T/O

0.00

10,000,000.00

20,000,000.00

30,000,000.00

40,000,000.00

50,000,000.00

60,000,000.00

70,000,000.00

2006 2007

Market ShareMarket Share

Distributor Units

05

% Share

Units 06

% Share

Units 07 % Share

Nashua 14833 22.5% 15455 23.8% 15653 23.8%

Konica Minolta

7115 10.8% 8488 13.1% 11820 18.0%

Kyocera 6269 9.5% 5443 8.4% 5241 8.0%

Xerox 6674 10.1% 5197 8.0% 4611 7.0%

Gestetner 5062 7.7% 4872 7.5% 4531 6.9%

Canon 3634 5.5% 4129 6.4% 4441 6.8%

HP 2098 3.2% 1935 3.0 % 2917 4.4%

Other 20263 30.7% 19495 30.0% 16596 25.2%

Total 65948 65014 65810 100.0%

Key Market Drivers

•Colour growth in the SA Market expected to grow at over 30 % per annum.

•Market convergence.

•MFP + P.

•High speed colour printing.

•Wide format printing.

•Increased Document Management Software.

•Domination of the TDV within SA Market.

•Ricoh will launch printer based MFP in 2008.

Print volume

Copy volume

PV from MFP

Document Volumes

Source: Cap Ventures

Value Release Model

PartnershipValue release

business process

ConsultativeAdvantages

workflow

SolutionBenefits

system

ProductFeatures

function

Value Chain = The way to differentiate

HardwareSoftwareServicesUseware

Acuo

• Software Development (Ntrack, Integration, Custom Software, Software Connectors)

Sales/Consulting

• Direct and Franchise-Supported Solutions Consulting

Technology

• Tech Training and Tech Support

Laserfiche

ScannerVision

Product Sales/Consult Support

:Other Vendors

Solutions

Technology SolutionsTechnology Solutions

•An open platform for the creation of solutions.

•Connecting devices and software seamlessly.

•Linking with customer’s infrastructure and applications.

Business PersonalDevices

Document Highway Platform

PPC / MFPPrinters

ScannersBusiness

Applications

Nashua’s Document Highway

Growth Opportunities vs. Risk Factors

• Software Solutions

• Colour

• Pabx

• Samsung MFP

• Channel expansion

• Printer co’s margin strategy

• Retail sales seg 1

• Ricoh’s product strategy

• Currency depreciation

Discussion