Company profile 2014. Your smart logistics

Company profile 2014. Your smart logistics

ABOUT US 2 M SAN Grupa d.d., founded in 1995, is a privately held Croatian company. In June 2007 M SAN Grupa d.o.o. was transformed from a Limited Liability Company into a Corporation assuming the name M SAN Grupa d.d. to reflect this change. The company is in the business of wholesale distribution of modern technologies that include computer hardware, software (IT), consumer electronics (CE) products and beby equipment. M SAN Grupa invests continuously in its organizational and physical infrastructure in order to facilitate the planned growth. The company has retained all of its profits since inception and reinvested them in financing further growth. M SAN Grupa has invested 85 Mio EUR in business development and infrastructure during the past five years. The principals of M SAN Grupa are the most respected worldwide manufacturers of IT products and consumer electronics, toys and equipment for children. The selling program of M SAN Grupa contains over 10 000 products. Additionally, M SAN Grupa is at the same time the manufacturer and the exclusive distributor of computers under own brand name MSG and of LED TV sets under brand name Vivax, that are produced in automatized factory for IT equipment and electronic devices in Rugvica. The factory is unique in this part of the Europe with the capacity up to 1000 assembled computers daily.the capacity of Vivax LED TV sets is over 84 thousand pieces annually. M SAN Grupa has developed its own brands for consumer electronic named VIVAX, for hardware periphery named MS, for toys named Prime Bebe. Brand Vivax has been developed in 2003 and until today it has reached almost all regional markets, Western Europe, Africa and South America. Vivax is extending its range to all aspects of consumer electronics; from small home appliances, air conditioners, TV sets and audio technique, to tablets and smartphones. Vivax strategy is based on usage of eminent and proven technologies. Prime Bebe is a new brand of M SAN Grupa focused on producing equipment for children. Prime Bebe products provide the best price-quality ratio; the assortment contains all the products that are needed for parenting from the child s first day to the first steps. In creating its own brands, the desire of M SAN is to produce available, reliable, attractive and affordable products. Thanks to the most developed logistic support and usage of own fleet, M SAN Grupa can provide fast and reliable delivery of goods to their partners. The basic values of the M SAN Grupa are trust and respect, responsibility, proactive approach; focus on partners and clients, development of team work and team spirit, innovation, learning, positive work environment and the richness of diversity.

Mission 3 By optimising distribution chain procedures we offer maximal support to our principals to help them create the competitive advantage on the market. Vision M SAN Grupa - Leading market and regional distributor by all standards of modern business.

ABOUT US 4 M SAN Grupa Inc. M SAN Grupa strives to continuously develop and improve its business model for wholesale distribution of modern technologies across the geographic region that M SAN Grupa s mission aimed at providing maximum support to its partners and vendors in the arena of wholesale distribution of IT and CE products so that they can focus on their respective business and therefore be more focus, successful and competitive. Company overview Revenue Founded in: 1995. Primary business: distribution of computer hardware, software and consumer electronics Total revenue: 259 mil. Total number of employees: 431 Total number of partners: 5300 Equity: 45 mil. Asstes: 145 mil. 300,000 250,000 200,000 150,000 100,000 50,000 0 2010 2011 2012 2013 mill EUR 2014

Group members 5 Vienna 376 km Budapest 353 km Map of Europe Slovenia Zagreb Croatia Rijeka 172 km 395 km Beograd 375 km Split 412 km Bosnia & Herzegovina Vitez Sarajevo Serbia Montenegro Podgorica Prishtine Kosovo Skoplje Macedonia Group members M SAN Grupa Kim Tec Serbia Kim Tec Bosnia & Herzegovina Pakom Kompani, Macedonia KimTec Montenegro AskTec, Kosovo *Market sales position Number of partners 1850 1685 850 500 270 178 *MSP 1 2 1 2 3 3 Revenue 2014 215.859.129 41.911.487 36.678.359 5.054.141 6.646.694 1.286.772 Aside from being stationed in Republic of Croatia M SAN Grupa has branches across the entire Adriatic region. In accordance with the corporate mission, M SAN Grupa invests significant resources in employees, improvement of service level and expertise delivered to the partner network.

ACTIVITIES 6 Business model M SAN Grupa s strategy is to continually grow and develop its specialized business by applying its Fast Moving Consumer Goods model and implementing it into the digital era in order to strengthen and further create immense competitive market advantage. That level of competitive advantage, together with the highest level of service towards partners that such a business model enables, will ensure the competitive edge of the company on the market even after Republic of Croatia and surrounding countries become members of the EU. A steady high double-digit growth rate is the result of M SAN Grupa s business model and will continue to be the foundation of the company s development strategy in the region and even better service quality level. M SAN Grupa owes its excellent results to systematic investment in knowledge and quality, as well as to intellectual capital and experience gained through work invested so far in the creation of leading position on the market. e-commerce Ured za podršku d.o.o. M SAN Logistika d.o.o. MR Servis d.o.o. By passion and the vision to seamlessly integrate our business to best-in-class capabilities, we deliver our partners key competitive advantages in the markets in developing e-commerce solution in B2B and B2C area. With the focus in e-business solution, M SAN Grupa provides its partners with opportunities to increase revenue, enhance productivity and maximize their competitive advantage. A wide variety of e-commerce is conducted in this way, spurring and drawing on innovations in electronic transactions, supply chain management systems, internet marketing, online transactions, electronic data interchange (EDI), management inventory and automated data collection systems. We are strengthening every area of our business as we take aim at one of the most dynamic industries in the world. We are breaking new grounds with a determination to become the premier player in the e-commerce industry, consistently delivering solid performance and exceptional growth.

Distribution Distribution is company s most important component and represents its core business in Republic of Croatia as well as for regional group members. 7 M SAN Grupa represents world renowned brands of IT equipment, software and consumer electronics. Specialized sales teams conclude business in a way to ensure the same level of quality and coverage to each brand. M SAN Grupa s vendors are world s most renowned IT and CE manufacturers and almost 8000 products are part of company s portfolio. M SAN Grupa continuously spreads its network of vendors, which is best confirmed by the fact that since 2008. companies such as Acer Computers, Fujitsu, Linksys, ICIDU, LG and Cisco have joined company s distribution list plus the already existent partners. In 2009 Toshiba and the renowned company Kaspersky, famous for its antivirus software, joined the team. The year 2009 also marked company s status as authorized representative of HP for Serbia and Montenegro, which completely rounded up its regional distributor status.

ACTIVITIES 8 Principals

Logistics 9 M SAN Grupa has the most developed logistics among distributors in the Adriatic region with the possibility of ensuring a fast and punctual delivery to customers with their own fleet vehicle. Your smart logistics...is the motto which governs M SAN Grupa. Logistics is a science and a skill which encompasses management, services and activities which provide support to plans and operations. Contemporary way of life and business, regardless of the technology and continuous development, makes no guarantees of perfection, flawlessness or market advantage. Change, which is getting harder to follow, predict, or anticipate is the only certainty. The beauty of partneship is the joy and success of its smart logistics - M SAN Grupa. LOCAL WAREHOUSE IN THE REGION Central logistic-distribution centre is located at the eastern entrance of Zagreb in Rugvica. The opening of this centre has resulted in increased space and merchandise storage. It has also improved monitoring of inventories and timely deliveries as well as brought about an allaround upgrade in quality service for its partners. Bosnia & Hercegovina 1.090 m 2 Montenegro 556 m 2 Macedonia 4.008 m 2 Serbia 5.355 m 2 Croatia 21.155 m 2 Total of 32.164 m² area of distribution centres

ACTIVITIES 10 Production M SAN Grupa continuously invests in the development of its own brand - MS Industrial, which includes a range of IT components, Vivax consumer electronics and Prime Bebe ( Baby equipment). M SAN Grupa s production facilities in China produce MS Industrial in highly controlled quality conditions. Computers production M SAN Grupa is the manufacturer and exclusive distributor of MSG computers which are assemble in company s IT assembly lines in Zagreb and Belgrade. With the capacity of producing and graphically processing up to 1000 computers a day in Zagreb and 1500 in Belgrade and supplying the entire Adriatic region these assembly lines are unique. MSG computers can be alternated and branded according to the needs of the end user. Computers and servers are assembled and tested on a semi automated line which functions on the basis of two different configurations: single production mass production Computer assembly has also been launched in KIM TEC Srbija. Apart from the MSG computers, M SAN Grupa has developed its own brand VIVAX which has absolutely everything in the range of consumer electronics to satisfy customer needs.

Service mr servis www.mrservis.hr From its very beginnings in 1995, M SAN Grupa has acknowledged the need for a quality in-house service, because that type of service added value to their basic, commercial activity. Apart from focusing on their IT sector, in 2005 M SAN started to develop service of consumer electronic for its own brand Vivax and later for 2 renowned manufacturers- Panasonic and LG. Towards the end of 2008 M SAN Grupa turns its service department into a new company named M SAN servis d.o.o. which incorporates M SAN Grupa s service and the acquired company EM SERVIS CENTAR d.o.o., which specializes in service and repair of mobile phones. In order to satisfy the necessary level of quality demanded by intern quality system and the market, service and repair sector has been developing in a way to fulfil the required efficiency of all its departments. With ongoing organizational, procedural and process optimization changes as well as the inevitable increase in number of employees, space and technical equipment, M SAN SERVIS has by merging with Recro service become the biggest IT service in the region. 11 Quality control MSG computers are designed and assembled inside the company, which has numerous benefits. They range from the top quality components which have been saved from dust contamination and static electricity, to expertly devised software and the complete control over which components were installed and who installed them. Apart from production, the high level of automatization has the advantage of quality testing which ensures that all MSG PCs exit the assembly line with virtually no possibility of errors. Strict control of computers is the company s absolute priority and that is why every MSG has a compatibility and stability check in all production steps- before serial production, during production and after the production. Apart from the intern testing, all MSG computers are certified according to EU norms and possess CE certificates.

ABOUT US 12 Social & environmental responsibility Social responsibility is becoming a vital part of M SAN s business strategy. Through sponsorships and donations company participates in a series of socially beneficial programmes. The company especially values its cooperation with school facilities because encouragement of education provides prerequisites for the application of modern technologies in the world of business. M SAN Grupa d.d., as the largest importer and distributor, is very much aware of its responsibilities concerning our environment and the need for its preservation. In light of that fact, the company is determined to add a new positive dimension to its identity which originates from responsibility towards the entire community. M SAN Grupa s care for the environment is channelled through its daughter company M SAN EKO which deals with EE waste management. Human resources Values Respect Responsibility Proactivity Customer Driven Organization Teamwork Development Innovation Learning Organization Positive Work Environment Abundance in Diversity M SAN Grupa invests significant attention and resources to strengthen the two services based on knowledge distribution education and consulting. All the way from investing in education of employees to infrastructure investments, the company sets out to achieve flawless and unsurpassed level of business.

Public Recognition 13 H G K r O O v S M a P O t O R s D A k A a R S K A Best medium sized company in Republic of Croatia 2002. 2004. M San Grupa received Zlatna Kuna, the prestigious award given by the Croatian Chamber of Commerce for Croatia s best medium-sized company in 2002., 2003. and 2004. Quality Confirmation for best medium sized company in Republic of Croatia, 2006. In 2006 M SAN Grupa was awarded Kristalna kuna, a special award which the Croatian Chamber of Commerce gives to companies which win Zlatna kuna three years in a row. Best Microsoft partner in Central and Eastern Europe region, 2009. M SAN Grupa received System Building Partner of the Year in OEM Hardware Solutions category. IT GLOBUS The best IT logistics company, 2006 M SAN Grupa, together with KimTec Srbija, won the prestigious award for best IT logistics and business in Serbia in 2006. The award is given by the leading IT magazine Mikro - PCWorld. Infotrend #1 IT Company in Croatia, 2008. M SAN Grupa was ranked first on the TOP 100 scale of IT companies in Republic of Croatia by the leading IT magazine INFOTREND (no.07/2008.). Moj Posao Most desirable employer, 2008. M SAN Grupa was ranked third on the list of most desirable employers in Republic of Croatia in the market and distribution category, according to the study conducted by the leading Croatian job portal MojPosao.net. Posao.ba Most desirable employer in BiH, 2008. KimTec BiH is one of the most acknowledged employers in the IT sector, according to the study carried out by the leading Bosnian job portal Posao.ba. Top 500 companies in Republic of Croatia According to FINA, M SAN Grupa was voted 28th among the biggest companies in Croatia in 2009. ( 32nd in 2008.).

CONTACT 14 How to find us? Our location in Zagreb, Croatia www.msan.hr Headquarters M SAN Grupa Inc. Buzinski prilaz 10, Buzin 10010 Zagreb Croatia tel: 00385 (0)1 3654 900 fax: 00385 (0)1 3654 926 Vienna 376 km Ljubljana 142 km Split 412 km

15 Distribution center M SAN Grupa Inc. Dugoselska cesta 5 10361 Rugvica Croatia tel: 00385 (0)1 640 1000 Budapest 353 km Map of Europe Belgrade 395 km Sarajevo 375 km

Your smart logistics Company profile 2014. M SAN Grupa d.d. Buzinski prilaz 10, 10010 Buzin Zagreb Croatia www.msan.hr