Creating new shareholder value

Creating new shareholder value

Leveraging our heritage to build a stronger future

Tom Kelly

A balanced multi-sector business

Logicalis UK works with customers across all major industry sectors

Our success is founded on understanding our customers industry demands – and providing relevant solutions and services

Our customers are primarily in;

 Commercial Mid Market <2000 seats

 Distributed Government, Education, Health

 Enterprise Accounts >2000 seats

 Systems Integrators / Telcos

Our solutions capabilities, professional services, managed services and cloud offerings are a unique combination to the customers we work with Retail 19% Manufacturing 19% WAG 7% Telecomms 10% Prof Services 6% IT 5% Other 6%

Revenue by sector 2011

Strategic Partnerships

Highest level accreditations with key partners

 Cisco, HP, IBM, CA technologies and NetApp

 Cisco Global Architectural Excellence Partner of the Year 2010

 Cisco UK Services Partner of the Year 2010

 Cisco UK & European Cloud Services Partner of the Year 2010

 HP Data Protector Partner of the Year 2010

 IBM Centre of Technical Excellence Award - IBM Breadth

 IBM Centre of Technical Excellence Award - Power AIX & System z

With compelling and relevant customer and market solutions

Collaboration

Business Analytics

Our relevance to our clients



Logicalis UK is more than a systems integrator. It is a managed service

provider from its own Data Centres



We are on a journey with the intent of increasing percentage EBIT through

driving annuity and business relevance to our clients. Where are we on this

journey?



New DC investment in Slough



Co-operative Cloud investment based on Cisco, CA and NetApps



Secure P Cloud investment IBM, CA, NetApps

Our relevance to our clients (cont)

In driving EBIT and percentage annuity revenue it is imperative that we mimic Pay per view TV (Sky and Fox) and also the success of Apple…they have the content:

 Driving Managed Services content from our own DC

 Drive Cloud solutions with Logicalis in acknowledged innovation both on site and off site

 Managed Video Solutions as a result of DV acquisition

 Managed Analytic Solutions as a result of the Inca acquisition

Driving client intimacy will drive client relevance and prove the value added relationship which we have to offer

It does not mean a de-focus on hardware sales but rather increasing the ‘Services Wrap’ and recognising that the Cloud will provide an alternative form of service delivery and in turn hardware delivery

The Logicalis new logo account target for fiscal 2012 is 115 and in H1 we achieved 57 (excluding acquisitions)

The CMO will become more important than the CIO

The ‘buying’ power and buying decision is now ever more driven by the business not IT

Recessionary economics shift the balance from technology decision to business outcome

CEO, CMO, CFO’s don’t understand or buy tin – they want tangible business benefits

CIO’s challenge - the cycle of operational cost

The CIO must break a cycle of spending too much budget operating what they already have

The CIO must focus on their core strengths and core business requirements

The CIO must streamline operations to create resource and budget for innovation

The CIO must adopt new consumption and operational models, strategically using their assets to deliver the most effective organisation and user experience

The CEO - Focussing on efficiency, productivity and innovation

Sales and Marketing

Integrated Business

IT Infrastructure _{The CEO has focussed on}

improving the front end of the business

The CIO is building a new Business and IT Model

IT led Business Innovation Cloud Cloud Managed Services Managed Services Professional Services Professional Services Partner Delivered Managed Hosting Managed Hosting ‘As a Service’ ‘As a Service’ Customer Analytics Video as a Service Collaboration Mobility Customer Analytics Video as a Service Collaboration Mobility Consolidation Consolidation Virtualisation Virtualisation Automation Automation Self Service Self Service

IT Infrastructure and Operational Improvement

Networks Networks Servers / Storage Servers / Storage

IT Led Business Processes Improvement Business Analytics Information Management Information Management Portal

We are entering a new phase in our business and our relationship with our

customers and suppliers

Be better business engaged Consumerisation/Globalisation

Moving to more consumption-based models Own less Infrastructure

Create more consumption offerings Assume more of the commercial risk

Own more of the customers SLA Partner for business innovation

Speed, Agility, Innovation and responsiveness Challenge conventional thinking

New Consumption Models

The challenges for senior IT leaders is overwhelming

 Cloud and mobile computing

 Acting as change agents

 Acting as strategic planners

 Acting as innovation drivers to contribute to top and bottom line growth

 Are they capable? In our view NO!

A London school of Economics CEO study on IT projects concluded

 ‘Despite CEO disappointment with past results, 48% of the CEO’s say IT will play a prominent role in defining corporate strategy in the future. Over 54% of the CEO’s surveyed said they had high expectations for IT’s ability to contribute to such things as a company’s competitive advantage’

The CIO dream of being strategic remains elusive

New Consumption Models (cont)

Should this survey be repeated in 2011 the Logicalis view is that there is a need for a new definition of a strategic CIO

Why?

 Shorter technology cycles

 more rapid pace of change demanded by the business

Is a long term strategy really what we need or should we aim to be fully adaptable

combined with a flexible strategy?

IT Executives need to;

The Ford Motor Company

Then..

Logicalis has made big investments in our ‘production line’

Enterprise Class Facilities

 £7.25million High Density Data Centre in 2010  Two UK Data Centre Facilites

 4-32kw Hosting Facility  2N Tier 3+ Design

 Ideal for next generation of virtualisation, high performance computing and cloud infrastructure and services

Enterprise Class Cloud and Cloud Services

 IBM Dynamic POWER Cloud  Intel Powered Cloud

A coherent strategy for addressing the cloud market opportunity

We are addressing the Infrastructure and Software as a Service Markets

Cisco Intel Cloud Cisco Intel Cloud Power795 Cloud Power795 Cloud Video as a Service Video as a Service Collaboration as a Service Collaboration as a Service Analytics as a Service Analytics as a Service Our Cloud Opportunity

LUK Platforms for Growth

Both CSP’s & ISV’s need a coherent response to capitalise on this huge market opportunity and defend against new competition

Our vendors growth is coming from core plays

Private Cloud is a $50billion

Opportunity

Hosted Collaboration is a

$7.1billion Opportunity

To grow EBIDTA and shareholder value

Business Analytics

Cloud

Smarter Planet

Emerging Markets

Logicalis can maintain

shareholder value by

maintaining the existing

business, but, we are growing

shareholder value by investing

in new solutions and delivery

models.

Our opportunity = improving our EBITDA while reducing customers costs

Design & Implementation Support & Maintenance DC Real Estate Power & Cooling

Operational Management Cost of Capital Refresh / Upgrades Cost of Downtime Cost of Cloud Client Cost Saving 90% 80% 70% 60% 50% 40% 90% 80% 70% 60% 50% 40% Migrate to Cloud consumption model:  Committed SLA’s (99.99%)

 Fixed and predictable costs  Recovery of Capital / Cost of Capital  Decreased Risk of Downtime Logicalis Managed Services EBIT Growth

Driving

EBIT

Our future success is governed by our vision, our execution, our balance sheet and your confidence

We have gauged the change in our customers business priorities

We have predicted and invested in our major vendor partners – making their big bets, our big bets

We have been ahead of the market with relevant innovation

We have built new platforms and solutions, built on our healthy balance sheet and your confidence as investors

Today, we must look to Logicalis 2015, and be as confident to invest and innovate as we always have

Our EBITDA and shareholder value will grow based on sustaining our traditional business whilst transitioning to new consumption models for hardware, software and services

Logicalis is the right company, with the right vision, with the right execution strategy at the right time