mike baur scan source communications 2011 north america partner conference
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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 © 2011. 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
Mike BaurCEO
ScanSource, Inc.
• The leading international value-added distributor of specialty technology products
• Products:
– AIDC (Barcode) and Point of Sale (POS)
– Communications (Voice, data, and video)
– Physical Security (Surveillance)
• Distributor for over 245 technology manufacturers
• Over 30,000 value-added technology resellers
• Central distribution strategy for major geographic regions
NASDAQ: SCSC
Headquarters: Greenville, SC
1,300+ Employees
Founded in 1992
22 offices in North America, Latin America and Europe
At A Glance
Record Year in Fiscal 2011!
ScanSource, Inc. ScanSource, Inc. Confidential
Net
Sal
es
($ in
Mill
ions
) Ea
rnin
gs P
er S
hare
Fiscal Years Ended June 30th
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
'93'94'95'96'97'98'99'00'01'02'03'04'05'06'07'08'09'10'11
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
'95'96'97'98'99'00'01'02'03'04'05'06'07'08'09'10'11
$0.13 $0.13 $0.19 $0.24
$0.33 $0.58 $0.67
$0.77
$0.87 $1.13
$1.37
$1.53
$1.63
$2.10 $1.79
$1.82
$2.70 10 Year
Compound Annual Growth Rate (CAGR)
Sales 15.5% EPS 15.0%
A History of Growth and ProfitabilityScanSource, Inc. Confidential
Indirect Channel Growth Acquisitions Dedicated Business Units Value-Added Services
Strategy for GrowthScanSource, Inc. Confidential
Channel Reach to New Markets Efficiency of the Channel Evolution of a High Services Model
“The Two-Tier Distribution Model facilitates the Rapid Growth of the Indirect Channel”
Growth of the Indirect ChannelScanSource, Inc. Confidential
Communications AcquisitionsScanSource, Inc. Confidential
Barcode AcquisitionsScanSource, Inc. Confidential
AIDC/POS Products
Exec ManagementSales
Technical SupportMerchandising
Physical Security Products
Exec ManagementSales
Technical SupportMerchandising
Shared ServicesLogistics Reseller Financial Services Customer
ServiceMarketing Human Resources Accounting Legal
CommunicationsProducts
Exec ManagementSales
Technical SupportMerchandising
Dedicated Business UnitsScanSource, Inc. Confidential
Menu of offerings – à la carte Investments in people and programs to
expand capabilities of the channel Enhance vendor offerings where it makes
sense Partner services provides scale and low cost
options
Value Added Services
ScanSource, Inc. Confidential
ScanSource Communications Worldwide
Revenues increased 22% vs. Q4 Fiscal 2010
ScanSource, Inc.
39% of total sales in Q4 2011
ScanSource, Inc. Confidential
ScanSource POS & Barcoding Vendors
North America, Latin America & Europe
ScanSource, Inc. Confidential
ScanSource Security Vendors
Physical Security Wireless Infrastructure
Identification/Access Control
ScanSource, Inc. Confidential
4%International
26%International 50%
International
96%Domestic
74%Domestic
50% Domestic
OUR PAST OUR PRESENT OUR FUTURE
June 2002 Quarter Ended June 2011 • Enhance Communications and Security in Europe & Latin America
• Add presence in Asia and rest of the world
International Growth
ScanSource, Inc. Confidential
• CDC: Largest Two-Tier POS
Barcode Distributor in Brazil– Acquisition completed 4/15/11 – Contributed $29.6 million to net
sales in 2.5 months in FY 2011– 200 employees– 8,000 resellers
• Communications products to be
added in 2012
*numbers are approximate
ScanSource Brasil - CDCScanSource, Inc. Confidential
• New Technologies and Products • New Services• Partnering and collaboration opportunities
– SUMOpartner.com– ScanSource Community
2011 Challenges and OpportunitiesScanSource, Inc. Confidential
The channel’s FIRST online network.
ScanSource, Inc. Confidential
MANUFACTURERS
ISV
END USER
RESELLER
AFFILIATE
ScanSource, Inc. Confidential
ScanSource, Inc. Confidential
1,600 Providers & 2,000 Users Today!
Enhanced SUMOpartner.com coming by year-end.
3,600ScanSource, Inc. Confidential
• We target growth markets
• We execute at a high level
• We partner well and often
• We have a history of consistent performance
• We have the best people
Thank you for your business!
In SummaryScanSource, Inc. Confidential