Intellectual Property

All materials from this deck are confidential and for intended use only* and cannot be distributed outside this use without prior written consent of ScanSource.

* Copyright © 2010.  All Rights Reserved. Unless expressly authorized in writing by the copyright owner, any copying, reproduction, exhibition, export, distribution or other use of this product or any part of it is strictly prohibited. External sources and external trademarks are the property of the referenced sources.

ScanSource, Inc. Confidential

What’s Hot?

• Anything Green……• NFL and NCAAF• Tea Party• Organic gardening• Ipad and AppStore• Savannah in Sept• Electric Cars

Packers or Vikings?

ScanSource, Inc. Confidential

Recession's over, economists say to a skeptical public

• A declaration that the turning point came in June 2009 gets an indignant reaction, showing that many Americans see little difference between the recession and current conditions.

ScanSource, Inc. Confidential

IBM Global CEO Study

• 1500 CEO interviews, 33 industries, 60 countries

• Face-face interviews and subsequent analysis of 23 questions and 10,000 interview quotes

• Discussion on impact to business in the New Economic Environment

Thanks to IBM for permission to use

ScanSource, Inc. Confidential

Key Findings

• CEOs must navigate in a highly volatile, increasingly complex environment

– Massive global shifts increase uncertainty– Continued rise of technology as key external factor– Challenges are compounded by regional

differences

Thanks to IBM for permission to use

ScanSource, Inc. Confidential

Capitalizing on Complexity• Embody creative leadership• Reinvent Customer relationships• Build operating dexterity

ScanSource, Inc. Confidential

Thanks to IBM for permission to use

Reinvent Customer Relationships

• Honor your customers above all else• Use two –way collaboration to sync with

customers• Profit from the information explosion

ScanSource, Inc. Confidential

Thanks to IBM for permission to use

Embody Creative Leadership

• Embrace ambiguity; act despite uncertainty!• Take risks that disrupt legacy business models• Leapfrog beyond “tried and true”

management styles

ScanSource, Inc. Confidential

Thanks to IBM for permission to use

Build operating dexterity

• Simplify whenever possible• Manage systemic complexity• Promote a mindset of being fast and flexible• Be “glocal” – global where possible, local

where necessary

ScanSource, Inc. Confidential

Thanks to IBM for permission to use

What is ScSc doing in North America in 2011?

• Trying to make doing business with ScSc easier!

• Investing in new communication tools• Testing new ideas and new vendor

relationships• Talking a lot about the E-word!

ScanSource, Inc. Confidential

2010 Highlights

• Return of Large Deals• Record sales in June Quarter• Record number of customers• Significant increase in Inventory and accounts

receivable

ScanSource, Inc. Confidential

Net

Sal

es

($ i

n M

illi

on

s)

Fiscal Years Ended June 30th

'93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 $0

$500

$1,000

$1,500

$2,000

$2,500

2 1634 56

100183

298

497

631

842

991

1200

1469

1666

1995

2175

1848

2,115

A History of Growth and Profitability

ScanSource, Inc. Confidential

Worldwide AIDC/POS/Security Revenue (millions $)

$1,050

$1,100

$1,150

$1,200

$1,250

$1,300

$1,350

$1,400

2008 2009 2010

ScanSource, Inc. Confidential

North American SalesJune Quarter (millions $)

$700

$750

$800

$850

$900

$950

$1,000

2008 2009 2010

ScanSource, Inc. Confidential

ScanSource Inventory $$ Worldwide (millions)

$0

$50

$100

$150

$200

$250

$300

$350

2008 2009 2010

ScanSource, Inc. Confidential

SOLID CAPITAL STRUCTURE

$250 million available for borrowing on revolving credit facility as of June 30, 2010.

Deb

t to

Eq

uit

y R

atio

Our Debt to Equity Ratios reflect our financial strength... vs. our Competition…

21.8%

*Data from latest available Quarterly filings with SEC

31.8%

12.1%

0%

10%

20%

30%

40%

June 07

June 08

June 09

June 10

34.2%

16.2%

7.0% 6.3%

ScanSource, Inc. Confidential

2011 Challenges and Opportunities

• Vendor Supply Chain management – ScanSource will continue to invest to buffer

customers and vendors• Customer Growth opportunities

– ScanSource will work harder to expand A/R flexibility and manage spikes in business

• Partnering and collaboration opportunities – SUMO and ScanSource Community– AppSource

ScanSource, Inc. Confidential

Investing for Growth

ScanSource, Inc. Confidential

• First Auto-ID Applications Marketplace• Unique Value-added Services• Independent Professional Mobile Store• Respect channels and indirect approach

• SCSC Resellers are given equal opportunity to enjoy applications as AppSource is built to be device and platform independent, while content developers reach a wider audience.

ScanSource, Inc. Confidential

Application Framework & App Store Environment

Manufacturers

Resellers

Value Chain Participants

ScanSource, Inc. Confidential

Summary

• 2011 will be growth opportunity; marketshare is always a Jump Ball

• ScSc ready to invest in growth opptys• E-Word is sacred at ScSc ; channel is the Best

Route to Market• You must drive your success but we want to

help• Partnering is Profitable and Smart!

ScanSource, Inc. Confidential

23

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