www.apcplc.com

April 2017

Results Presentation Six Months to February 2017

MakeclearwhatAPCdoesandourapproachtogrowthMainPurpose

ConveyanenthusiasmfortheopportunitywehaveCreatereassurancethatwehavetheplanandresourcetodeliverObjectives

ProvideaheadlinedescriptionofactivityGothroughtheinterims– ournewstartpointStructure

Today

2

EntrepreneurialresponsetoagrowingglobalelectronicsmarketFoundingofAPC

ProfitabledistributorservingUKDefence andAerospacethatfailedtoadaptThefirst20years

NewleadershipuseAPCasaplatformforEnergyManagementDiversification

Thediversificationdidnotwork,thebusinessbecamedistressed,andtherefollowed18monthsofrestructuringTurnaround

Theoriginalbusinessremainedprofitable;APCisnowbacktoitsorigins– aspecialistdesign-indistributorCurrentsituation

APC History

3

APCconnectsUKBuyersandROWSuppliers

UKDemand ROWSupply

DesignandSpecification SellingandSourcingAdministrationandPhysicalLogistics

APCisadesign-indistributorinspecialistelectroniccomponents,productsandsystems.

APC value proposition

4

EmbeddedProcessing

• Singleboardcomputers

• BoxPCs• PanelPCs• TFTDisplays• Kioskandtouchscreencomponentry

HighReliability

• Semi-conductors• Powersupplies• Powercontrol• Electromagnets• Highvoltagecomponents

RFandMicrowave

• Capacitorsandresistors

• Filters• Semi-conductors• Amplifiers• Switches• Frequencysources

Lighting

• HighendLED

APCNursery

• Infectionprevention

• InternetofThings• Sensors• Synchronisation• Energymeasurement

• Nicheobsoletecomponentsnolongerinmanufacture

ThetotalsizeoftheaddressablemarketsintheUKBuyerbasefarexceeds£1bn.APCbreaksthattotalmarketinto4“portfolios”,withanurseryfornewlines.

UK Demand for APC products

5

EmbeddedProcessing

• Advantech14years• Locosys 4years• +3

HighReliability

• VPT10years• Holt20years• API2years• +5

RFandMicrowave

• Wolfspeed (CREE)9years

• IPP9years• +5

Lighting

• EvolvingrelationshipswithEasternEuropeanLEDandLuminairemanufacturers

APCNursery

• AIS(Keyboards)• Meinberg (TimeSynchronisation)

• Libelium(monitoring)

MostAPCsupplypartnersareintheUSandEurope- privatelyownedenterprises,orautonomoussubsidiariesoflargecorporations.WegenerallydealatCEOlevel.

ROW Supply for APC Products

6

Embedded Hi-Reliability RFandMicrowave

Lighting Nursery

SalesLeadership

MarketingExecution

SalesExecution

Post-SaleProcessing

The“APCWay”– marketanalysis,Manufacturerrelationships,Customerrelationships,technicalknow-how,salesprocess– ispre-defined

The“APCWay”- theproposition,products,pricepositionandmarginrequirement,marketposition,promotion– ispre-defined

The“APCWay”– ordermanagement,compliancewithspecification,compliancewithstandards,compliancewithlegislation,import,storage,onwardlogistics– ispre-defined

Individual Individual Individual Individual Individual

Common

Common

Common

TheModelisbasedonassigningeachproductportfoliotoahighlyincentivised SalesLeader,whohastooperatetocommonmarketing,salesandprocessingstandards.

The business model

7

Completetherestructuring

Driveanyremainingefficienciesinaligningthebusinessmodels,backoffice,property

Thisisunderway,andsignificantlyde-risksthecostbase

Provecostbaseandmargin

Weneedtodemonstratefullcontroloverthecostandmarginfollowingrestructure

Thelast6misveryencouraginginthatrespect,howeverweneedstability

Consolidatedesign-inproposition

Thedistractioncausedovertherestructurehasweakenedouradherencetotheproposition

Fixingthisproblemthroughvisitstosuppliersandcustomersiswellunderway

Re-invigoratemarketing

Weneedtoprovetothemarketthatweareback!

But…thereisalimittowhatwecandountilwestarttogeneratepositivecash

FinaliseimplementationoftheBusiness

Model

Therightpeopleareintherightseats,butwehavemuchworktogettheprocessesright

ImplementingtheBusinessModelwillgivecontrolandprovidetheplatformforgrowth

ReinvigorateSales

Management

RestructuringalwayshasanimpactoncultureandAPCisnodifferent.

Weneedtobuildahighachievement,highrewardculture– andthisisunderway

GrowsalesThebusinesshastogrowrevenuesignificantlyoverthenext12m

Wehavetheplatforminplace,thedistractionsaregoing,thefocusisturnover

• Outofturnaroundandenteringstabilisation.

• Aprovenmodel,sowedonotneedtore-invent,nor(intheshort-term)findnewcustomers,productsormarkets.

• Thefocusisonexecutingtoahighlevelthosebusinesselementsweknowwillwork.

The plan forward

8

Interim Results - Financial Highlights

9

§ Operatingprofitbeforeexceptionalitemsof£0.4m,representingasignificantimprovementfromthe£0.1moperatinglossinthecomparativeperiod

§ Totalprofitfortheperiodof£0.1m(H12016:£1.9mloss);firstreportedprofitsincetheyearended31August2014

§ Revenueof£8.3m,comparedto£9.5minthecomparativeperiod;themaindifferencedueto£1.6mofresidualrevenuefromthemulti-yearMorrison’scontractincludedinpriorperiod

§ Grossmarginof34.4%intheperiodrepresentsastrongmarginforthelowerfixedcost,design-indistributionbusiness

§ Administrativeexpensesreducedby£1.2mfromsameperiodlastyear

§ Cashfromearningsof£0.3m,beforenetinvestmentinworkingcapitalimprovement

§ Workingcapital(excludingnetdebt)improvedby£0.5mandnetdebtreducedby£0.3mcomparedto31August2016,reflectingastrengthenedbalancesheetposition

Interim Results - Operational Highlights

10

§ Green Compliance Water Division Limited sold in October 2016 for a total consideration of £1.8m (£0.8m cash and £1.0m in repayment of debt). The transaction included the disposal of £0.7m of future liabilities under operating leases

§ Group re-centred on the proven business model of specialist electronic components, products and systems design-in distribution

§ £8.25m first half bookings for the refocused business with March 2017 Group bookings of £2.1m underpinning confidence in the new business model and a profitable outlook for the full year

§ Significant follow-on orders received from long standing customer relationships and significant new orders gained through new preferred supplier agreements signed with major blue chip customers

§ Tony Lochery appointed Non-Executive Chairman and joined the Board as a Director on 24 February 2017

11

Interim Results 6monthsended

6monthsended Yearended

28February2017

28February2016

31August

2016

£000 £000 £000

Revenue 8,304 9,472 17,961

Costofsales (5,445) (5,941) (11,523)

Grossprofit 2,859 34.4% 3,531 37.3% 6,438 35.8%

Administrationexpenses (2,475) (3,649) (6,116)

Shareofresultsofassociates - - -

Operatingprofitbeforeexceptionalitems 384 (118) 322

Exceptionalitems (154) (764) (3,026)

Amortisationofintangibleassets - - -

ShareBasedPayments (26) (46) (51)

Operatingprofit 204 (928) (2,755)

Financingincome - - 1

Financingexpense (162) (116) (332)

Profitbeforetaxation 42 (1,044) (3,086)

Taxationexpense 26 32 -

Profitfortheperiodfromcontinuingoperations 68 (1,012) (3,086)

Profit(loss)fortheperiodfromdiscontinuedoperations - (782) (9,789)

Profitfortheperiod 68 (1,794) (12,875)

Attributableto:

Equityholdersoftheparent 68 (1,794) (12,875)

Non-controll inginterests - - -

68 (1,794) (12,875)

12

Working Capital (excluding net debt)

Ø Net working capital position has improved by £0.5m

February2017 2016

Inventories 897 1,080TradeReceivables 2,440 3,377OtherReceivables 141 146Prepayments 194 228

3,672 4,831

TradePayables (2,223) (2,931)OtherPayables (626) (1,163)Accruals (1,928) (2,322)

(4,777) (6,416)

NetWorkingCapital,ExcludingNetDebt (1,105) (1,585)

13

Net Debt

Ø Net debt decreased by £0.3 million during the period

February2017 2016 Change

ABNinvoiceDiscounting 2,236 2,711 475

PAY4tradePayments* 290 294 4

FinanceLeases 26 45 19

ConvertibleLoanNotes* 555 555 -

Cashandcashequivalents (244) (444) (200)

NetDebt 2,863 3,161 298

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