SoftLine Group2004 major results & 2005 plans

Russia CISMoscow2005

Software licensing, Consulting, Education

Main sections

Core business principles Organizational Structure 2004 business results 2005 plans and forecast

Software licensing, Education, Consulting

SoftLine core business principles

Keep leading positions Marketing = base and focus

Response and listen to market and each customer demand

High-Quality customer service, professional approach and reliability

Frankness and openness to customers, vendors and employees

Software licensing, Education, Consulting

SoftLine Organizational Structure Core businesses

Licensing and delivering Software IT training and education IT and Business consulting

Business Geography Russia (Moscow, Khabarovsk, Novosibirsk,

Yekaterinburg, Rostov-na-Donu, Nizhniy Novgorod, St. Petersburg)

Belarus (Minsk) Ukraine (Kiev) Kazakhstan (Almaty, Astana) Uzbekistan (Tashkent)

Software licensing, Education, Consulting

SoftLine: Software licensing and delivery. #1 position on software market

SoftLine Trade – sales to corporate End Users. 2004 Largest partner Microsoft, Symantec, Veritas, Autodesk etc.

AXOFT – pure Distributor business – VAD approach to partner network Over 1000 partners in Russia and CIS

Allsoft.ru – E-commerce, software products resource (on-line software shop…)

Software licensing, Education, Consulting

SoftLine Solutions: Consulting SoftLine Systems Solutions – system integration and

consulting Standard or Typical Solutions worked out and adapted for SMB

customers, incl. those on Infrastructure; Remote access: Expansion, Consolidation and Mobility; Security; Data storage and replication etc.

Created, developed and approved Implementation methodology and system of technical support to infrastructure solutions incl. Microsoft, Citrix, Security vendors, Data storage and replication, etc. for EPG (Large business corporates)

Over 20 successful complete implementations

SoftLine Business Solutions – business consulting and implementation ERP, CRM systems Main SAP partner on SAP Business One (solutions for SMB) – over

50% complete projects in Russia CIS Microsoft partner implementing Microsoft CRM in Russia

Software licensing, Education, Consulting

SoftLine: Education SoftLine Education – educating and training IT corporate

customer users and professionals Microsoft, Citrix, Symantec, Veritas, Autodesk CheckPoint, Kaspersky Lab., McAfee etc. Moscow, St. Petersburg, Yekaterinburg, Novosibirsk,

N.Novgorod, Almaty, Atana, Minsk CALC – 1st (of 2 in Russia) SoftLine Edu within TOP 3 educational centers in Russia

SoftLine Academy Alliance – education (complementary) for University undergraduates and just-graduated Moscow State Uni (Higher Maths and Cybernetics Faculty) Tomsk Polytechnic University Etc.

Software licensing, Education, Consulting

SoftLine Group: Software licensing, Consulting, Education

Информационные технологии как

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Лицензирование программного

обеспечения: SoftLine ®, AXOFT ®, Allsoft.RU ®

Обучение: SoftLine ® Education, SoftLine ®

Academy Alliance

Системный консалтинг: SoftLine ® System Solutions

Бизнес консалтинг: SoftLine ® Business

Solutions

Software licensing, Education, Consulting

2004 Financial Results

Annual turnover $27 768 000 62% growth as to 2003 SoftLine grows 2 times faster than IT

market as a whole (25-30% в год) Leading software company in Russia

and CIS

Software licensing, Education, Consulting

1998-2004 sales figures, TUSD

Software licensing, Education, Consulting

0

5 000

10 000

15 000

20 000

25 000

30 000

1998 1999 2000 2001 2002 2003 2004Turnover

Growth by Subdivisions, TUSD

  2004 2003 grows %

Software sales $23 642 $15 625 51%

Education $732 $397 85%

Consulting $257 $0  

Ukraine $1 012 $787 29%

Belarus $1 554 $364 327%

Kazakhstan $571 $0  

Software licensing, Education, Consulting

2004 major business focuses Regional business development Strong Consulting business focus

(SoftLine Solutions) Internet projects (soft.mail.ru,

allsoft.ru) Marketing and Sales specialized

projects – Microsoft Solution Center Value Added Distribution business -

AXOFT

Software licensing, Education, Consulting

Regional business and offices Representation offices established in

Kazakhstan and Uzbekistan Offices in Novosibirsk, Novorossiysk,

Yekaterinburg, Rostov-na-Donu Regional business development history

2001 - Minsk 2002 – Kiev, Khabarovsk, Nizhniy Novgorod 2004 – Almaty, Tashkent, Novosibirsk,

Yekaterinburg, Rostov-na-Donu

Software licensing, Education, Consulting

SoftLine: Internet Projects

soft.mail.ru Joint web project Mail.ru and SoftLine Web portal – resource on verious

software for end-users and private software developers

allsoft.ru Internet resource representing simple

task software

Software licensing, Education, Consulting

SoftLine: Marketing SoftLine-Direct software catalogue. Most recent news and

up-to-date information on Software market and Success Stories Annual total circulation over 300,000 copies Unique Data Base – personified, regularly actualized, over

100,000 addresses Free and fast delivery via Direct-Marketing approach thought

Russia, Ukraine, Belarus, Kazakhstan, Usbekistan Seminars and Events (SoftLine-Direct Seminars)

Each Tuesday – about 120 persons (Moscow) Each Tuesday – seminars in Cities over Russia and in CIS

Telemarketing campaigns (15 operators) Microsoft Solution Center (for SMB)

Innovation project with IT leading vendors participating – Microsoft, Citrix, Intel, Symantec, VERITAS, Fujitsu-Siemens, Dell, AltiGen etc.

Software licensing, Education, Consulting

2005 Plans and Forecast 60% business overall growth and reaching

turnover $44,800,000 Further expansion to regions (CIS and

Russia) Strengthening Consulting business (10

times growth as compared to 2004) EPG Solution Center (120 real prospects) Innovation marketing projects in Regions

CIS (soft.mail.ru, allsoft в регионы)

Software licensing, Education, Consulting

Major business model and spheres

Software licensing, Education, Consulting

Software licensing, Education, Consulting

SoftLine Group

Sof tLine Trade

sof tware sales to end users(Retail)

Sof tLine Education

Corporate education on IT

Sof tLine Business Solutions

Business consulting on ERP,CRM deploy ment

Sof tLine Region

Business of Sof tLine in Russian andCIS regions

Sof tLine BY

By elorussia

Sof tLine UAUkraine

Sof tLine KZ&CAKazakhstan and central Asia

Almaty (KZ)Astana (KZ)

Tashkent (UZ)

Russian Regions

Nov osibirskN.Nov gorodKhabarov skEkaterinburg

Rostov -on-DonSt.Petersburg

Microsof t solutions center

Sof tLine Sy stems Solutions

Sy stem and inf rastructureconsulting

AXOFT

sof tware sales to dealers(Distribution)

Sof tLine Academy Alliance

Sutent educational program (MSIT Academy , SAP Academy ,

Autodesk etc.)Sy stem consulting and IT inf rastructure implementation

Business-consulting and sy stems deploy ment Sof tware licensing Education

ALLSOFT

sales of electronic v ersions ofsof tware ov er the Internet

Regional business of Sof tLine