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Final Results Investors Presentation 27 June 2014

The Stanley Gibbons Group. Final Results Investors Presentation 27 June 2014. Contents. Pages Financial Highlights 3 Operating Review 4 Operating Highlights Philatelic Dealing 5 Auctions 6

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Final Results Investors Presentation 27 June 2014

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  1. The Stanley Gibbons Group Final Results Investors Presentation 27 June 2014 1

  2. Contents Pages • Financial Highlights 3 • Operating Review 4 • Operating Highlights • Philatelic Dealing 5 • Auctions 6 • Publishing 7 • Other Collectibles 8 • Internet 9 • Online Marketplace 10-11 • Outlook & Strategic Focus 12 6. The Board 13 2

  3. Financial Highlights 3

  4. Operating Review 4

  5. Philatelic Dealing • 2% profit growth, primarily supported by sales of philatelic rarities to high net worth collectors and investors • Hong Kong office contributed total sales of £3.3m (2012: £2.6m) and profits of £0.7m (2012: £0.6m) • New office in Singapore opened in April 2013 contributed sales of £0.2m in year, with a net loss of £0.1m • Two “seven-figure” exceptional and prestigious stamps collections secured, providing strong platform to deliver growth in core dealing activities in current financial year 5

  6. Auctions • Auction revenues for the year ended 31 December 2013 broadly in line with prior year • Philatelic auctions business strengthened by acquisitions of Murray Payne Limited and Apex Philatelics (part of Noble Group) • Stanley Gibbons February 2014 public auction was one of our strongest in recent years • Secured strong consignments in the quarter ended 31 March 2014 providing a degree of visibility to future earnings • Sale of British Guiana 1c Magenta by Sotheby’s, New York in June for $9.5m, representing a world record 6

  7. Publishing • 12% fall in profits as a result of retirement and closure of our major wholesale distributor in the second half of the year • Progress being made in recruiting new trade clients previously handled by this distributor • New catalogue database developed as integral part of our internet project substantially improves publishing efficiencies and printing options • Online catalogue data will be an integral element of online marketplace 7

  8. Other Collectibles • 68% profit growth benefiting from Noble acquisition at end of November last year • Substantial success in cross selling rare coins from Baldwin’s stockholding to SG high net worth clients • Autograph division integrated and relocated to Bloomsbury Auction premises at Maddox Street in first quarter of 2014, showing immediate benefits • Benham First Day Covers business delivered acceptable return in year despite absence of any significant commemorative events • Dreweatts auctions performing well and embracing cross selling opportunities 8

  9. Internet • Development costs incurred in year of £1.6m (2012: £0.4m) in line with plan and financed by the fundraising of £6m in November 2012 • Total online revenues of £3.5m, in line with prior year • Bid start acquisition contributed online commission income of £0.2m in year • Beta version of Stanley Gibbons branded online marketplace is currently undergoing rigorous testing by both our own internal specialists and a taskforce of external users 9

  10. Online Marketplace • Key technical projects delivered in the fifteen months ended 31 March 2014: • Digital Catalogue Data Management System (“Oreo”) • Imported “Stamps of the World” (6 volumes, 500,000+ stamps) into digital catalogue • Imported 5 million 3rd party stamp listings into marketplace • Linked stamp listings to our digital catalogue • Search and browse facility using digital catalogue data • Enhanced product listings • Developed and launched the foundation (in Beta) of the Stanley Gibbons Marketplace • Investment has been focussed on technical development work rather than driving increased sales through online marketing 10

  11. Online Marketplace • Technical milestones over next 12 months: • Complete migration to “open source platforms” • Launch seller features • Stanley Gibbons payment system • Store features • First of social features (My Collection, Groups) • Buyer/seller auctioning and live auctions • Social sharing tools & recommendations, social dashboard • Coin features & tools • Stamp image recognition software • Supported by commercial team with sales and marketing plan to deliver growth in GMV later in year 11

  12. Outlook & Strategic Focus • Strong balance sheet position in terms of cash resources and quality stockholding which is expected to generate growth in the current financial year from core dealing activities • Most important milestone for the current financial year is the forthcoming launch of the Stanley Gibbons branded online marketplace • Delivery of further integration cost savings following the acquisition of Noble in November 2013, including the move of the Baldwin’s team from Adelphi Terrace to the Strand later this year • Plans to sell Adelphi Terrace freehold property with a book value of £3m • Delivery of continued cross selling benefits from being able to provide a first class service in a wide range of collectibles to our combined client base • Focus on securing further top quality collections for our auction division benefiting from the enlarged Group’s combined expertise 12

  13. The Board • The executive team was augmented in the year with the appointment of the Chief Executive of Noble, Ian Goldbart to the Board as Managing Director of Dealing & Auctions based in London • Donal Duff appointed as Chief Finance Officer (previously Finance Director and Chief Operating Officer) reflecting the substantial increase in responsibility in respect of managing the Finance function of the enlarged Group following recent acquisitions • The board of independent non executive directors was strengthened in the year with the appointment of Simon Perree (co-founder of Play.com) and Clive Jones (previously Chairman of the Jersey Financial Services Commission) • The Board now consists of four executive directors and four independent non-executive directors, representing a well balanced Board composition and in accordance with accepted best corporate governance practice 13

  14. Appendices Pages Appendix I Income Statement 15 Appendix II Balance Sheet 16 Appendix III Cashflows17-18 Appendix IV Contact Details 19 14

  15. Appendix I - Income Statement 15

  16. Appendix II – Balance Sheet 16

  17. Appendix III - Cashflows 17

  18. Appendix III - Cashflows 18

  19. The Stanley Gibbons Group plc, Registered Office Martin Bralsford, Chairman Mike Hall, Chief Executive Donal Duff, Chief Finance Officer 2nd Floor, Minden House, Minden Place St. Helier, Jersey, JE2 4WQ Channel Islands Tel: 01534 766711 Email: mhall@stanleygibbons.com Email: dduff@stanleygibbons.com Stanley Gibbons Limited Richard Purkis, Company Secretary 399 StrandLondon, WC2R 0LXTel: 020 78368444 Email: rpurkis@stanleygibbons.com Appendix IV - Contact details 19

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