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ASBISc Enterprises Plc
ANNUAL REPORT
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2023
Limassol, March 28
th
, 2024

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Dear Shareholders, partners, and colleagues,
On behalf of the Board of Directors of ASBIS Group, I am pleased to present to you our Consolidated Annual
Report for the year 2023.
Another year has passed and another success story has been written in the long book of ASBIS. Undoubtedly the
year 2023 was another challenging year for ASBIS, since we had to face multiple obstacles like the ongoing war
in Ukraine, weaker demand in IT products and an uncertain geopolitical environment.
Despite these significant challenges, we were able to increase our revenues in all major markets of our operations,
including the already established markets of Caucasus, Western Europe and Africa. The Company has managed
to build strong foundations, competent teams and laid the seeds to achieve our ambitious plans.
We have heavily invested in Central Asia and Caucasus region as well as in Adriatic and Balkans regions. We
increased our warehouse space in our distribution centers in Prague, Johannesburg and Dubai, following the
dynamic development of the Company’s operations. At the beginning of 2024 we have started erecting a new
warehouse in Kazakhstan with an area of approximately 20,000 m2. This investment is a response to the growing
demand in the country, where the Company has significantly intensified its presence and became its number one
revenue contributor.
Along with the above, we have been further strengthening the development of our portfolio of IT products and
services with technologically advanced solutions, including the division related to robotics - ASBIS Robotic
Solutions (AROS). We have also enhanced our second life devices division - Breezy, in which we invested
significantly and see a very positive development. Breezy significantly expanded its market presence across its
operational countries and established new trade-in partnerships. We expect this business unit to significantly
contribute to the Company’s profitability in the short to medium term.
As regards our own brands, the Company keeps pushing all its own seven brands (Aeno, Canyon, Cron Robotics,
Lorgar, Perenio, Prestigio and Prestigio Solutions) to generate higher levels of revenues and gross profit margins.
We have invested in new competencies, new ideas and new management teams and expect to see significant
success in the years to come. Each private label has been redesigned and we are very excited and confident that
we shall get the fruits of our investments sooner than later.
In 2023, we have also continued to diversify our activities by investing in companies from the biomedical sector
which is seen as a multi-billion global market. We have invested in Cyprus-based, startup Theramir Ltd, that deals
with developing stem cell and RNA-based technologies for the diagnosis and treatment of cancer disease.
Theramir's proprietary cancer therapeutics utilize microRNAs “miRNAs”, a novel class of small non-coding RNAs
that can regulate many genes and pathways involved in cancer growth and metastasis. We also continued our
corporate venture strategy by investing in companies “Blend Energy Ltd” and “Autonomics Ltd”. These are projects
for the future and in line with our strategic plan for the next five years.
It is worth underling that in 2023 the Company focused not only on financial aspects but also on being socially
responsible. In 2023 we have continued our support to the Ukrainian people, assigning another USD 2 million to
help those in need. Moreover, in 2023, ASBIS retained its position among a select group of WSE-listed companies
with the highest ratings and cited as a “Climate Aware Company,” in the fifth edition of the Companies Climate
Awareness Survey.
Looking at the results, in 2023 ASBIS generated revenues of USD 3,1 billion (up 13.8%, compared to the 12M of
2022). Gross profit margin reached 8.24% in 2023. The profit from operations (EBIT) reached USD 112.5 million
(up 1.0% compared to 2022). Net profit after tax reached USD 78.0 million without the release of the currency
translation reserve and the receivables provision (USD 53.0 million after these one-offs), as compared to USD
75.9 million in 2022.
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As of December 31, 2023, ASBIS had USD 143.6 million in cash and equivalents on its balance sheet, as
compared to USD 134.6 million at the end of 2022.
In 2023 multiple product lines have recorded a sales growth. The best-selling products in 2023 were smartphones,
processors and laptops. Among smartphones, the most demanded were iPhones, including the iPhone 15 Pro,
iPhone 15 Pro Max, Apple’s flagship iPhones.
When speaking of the regions we cover, the Commonwealth of Independent States (CIS or Former Soviet Union)
and Central & Eastern Europe regions traditionally had the largest share in the Group’s revenues. In 2023 Central
& Eastern Europe as well as Western Europe contribution has grown to 25.84% (from 24.30%) and 8.41% (from
6.81%) respectively. At the same time, the CIS region contribution has decreased to 51.07% (from 52.31%) in
2023.
In 2023, we have continued our dividend policy and paid our investors a final and interim dividend from the
Company’s profits, which is in line with our strategy to reward our long-standing investors. This has also been
supported by the strong cash flow of the Company. We want to continue our hefty dividend policy should the
circumstances allow us.
All in all, I am very satisfied with the financial and non-financial achievements in 2023. The past year has been the
most profitable for us, without the one-off events. We have strengthened our presence in all markets in which we
operate and significantly grown multiple product lines. We have been also actively investing in alternative revenue
streams. We plan to continue our success.
On behalf of the Board of Directors of ASBIS Group, I would like to thank our shareholders for their trust, our clients
for our successful cooperation, as well as all our employees without whom such a successful year could not have
been achieved. I am convinced that for such a strong Company with such an experienced management board the
sky is no longer the limit.
Siarhei Kostevitch
Chairman & CEO
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Directors’ report on the Group operations
For the fiscal year ended 31 December 2023
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TABLE OF CONTENTS
PART I .................................................................................................................................................... 8
ITEM 1. KEY INFORMATION ............................................................................................................. 8
ITEM 2. INFORMATION ON THE COMPANY ................................................................................ 17
ITEM 3. OPERATING AND FINANCIAL REVIEW AND PROSPECTS ........................................... 38
ITEM 4. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES ........................................... 53
ITEM 5. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS ............................ 58
ITEM 6. FINANCIAL INFORMATION ............................................................................................... 59
PART II ................................................................................................................................................. 61
ITEM 7. PRINCIPAL ACCOUNTANT FEES AND SERVICES ......................................................... 61
ITEM 8. ASBISC ENTERPRISES PLC STATEMENT ON NON-FINANCIAL INFORMATION
FOR THE YEAR 2023 ...................................................................................................................... 61
ITEM 9. MANAGEMENT REPRESENTATIONS ............................................................................. 63
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ASBISc Enterprises Plc is a leading Value Add Distributor, developer and provider of ICT, IoT products, solutions,
and services to the markets of Europe, the Middle East, and Africa (EMEA) with local operations in Central and
Eastern Europe, the Baltic republics, the former Soviet Union, the Middle East and North Africa, combining a broad
geographical reach with a wide range of products distributed on a "one-stop-shop" basis. Our focus is on the
following countries: Kazakhstan, Ukraine, Slovakia, Poland, Czech Republic, Romania, Croatia, Slovenia, Bulgaria,
Serbia, Hungary, Middle East countries (i.e., United Arab Emirates, Qatar and other Gulf states), Latvia and South
Africa.
The Group distributes IT components (to assemblers, system integrators, local brands and retail) as well as A-
branded finished products like desktop PCs, laptops, servers, and networking to SMB and retail. Our IT product
portfolio encompasses a wide range of IT components, blocks and peripherals, and mobile IT systems. We currently
purchase most of our products from leading international manufacturers, including Apple, Logitech, Dell, Intel,
Advanced Micro Devices ("AMD"), Seagate, Western Digital, Samsung, Microsoft, Toshiba, Acer, Lenovo and
Hitachi. In addition, a part of our revenues is comprised of sales of IT products under our private labels: Prestigio,
Prestigio Solutions, Canyon, Perenio, AENO, LORGAR and CRON ROBOTICS.
ASBISc commenced business back in 1990 and in 1995 incorporated its holding Company in Cyprus and moved
our headquarters to Limassol. Our Cypriot headquarters support, through two master distribution centers (located
in the Czech Republic and the United Arab Emirates), our network of 31 warehouses located in 34 countries. This
network supplies products to the Group's in-country operations and directly to its customers in approximately 60
countries.
The Company’s registered and principal administrative office is 1, Iapetou Street, 4101, Agios Athanasios, Limassol,
Cyprus.
We have prepared this annual report as required by Paragraph 60 section 1 point 3 of the Regulation of the Ministry
of Finance dated 29 March 2018 on current and periodic information to be published by issuers of securities and
rules of recognition of information required by the law of non-member country as equivalent.
In this annual report, all references to the Company apply to ASBISc Enterprises Plc and all references to the Group
apply to ASBISc Enterprises Plc and its consolidated subsidiaries. Expressions such as "we", "us", "our" and similar
apply generally to the Group (including its subsidiaries, depending on the country discussed) unless from the context
they apply to the stand-alone Company. “Shares” refers to our existing ordinary shares traded on the Warsaw Stock
Exchange.
Forward-Looking Statements
This annual report contains forward-looking statements relating to our business, financial condition and results of
operations. You can find many of these statements by looking for words such as "may", "will", "expect", "anticipate",
"believe", "estimate" and similar words used in this annual report. By their nature, forward-looking statements are
subject to numerous assumptions, risks and uncertainties. Accordingly, actual results may differ materially from
those expressed or implied by the forward-looking statements. We caution you not to place undue reliance on such
statements, which speak only as of the date of this annual report.
The cautionary statements set out above should be considered in connection with any subsequent written or oral
forward-looking statements that we or persons acting on our behalf may issue. We do not undertake any obligation
to review or confirm analysts’ expectations or estimates or to release publicly any revisions to any forward-looking
statements to reflect events or circumstances after the date of this annual report.
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Industry and Market Data
In this annual report, we set out information relating to our business and the market in which we operate and
compete.
The information regarding our market, market share, market position, growth rates and other industry data relating
to our business and the market in which we operate consists of data and reports compiled by various third-party
sources, discussions with our customers and our own internal estimates. We have obtained market and industry
data relating to our business from providers of industry data, including:
• Gartner and GfK - leading research companies on IT,
• IDC – a dedicated organization on publishing data for IT industry, and
• Other independent research conducted on our sector
We believe that these industry publications, surveys and forecasts are reliable, but we have not independently
verified them and cannot guarantee their accuracy or completeness. The data of independent surveyors might not
have taken into consideration recent developments in the markets we operate and therefore in certain instances
might have become outdated and not represent the real market trends.
In addition, in many cases, we have made statements in this annual report regarding our industry and our position
in the industry based on our experience and our own investigation of market conditions. We cannot assure you that
any of these assumptions are accurate or correctly reflect our position in the industry, and none of our internal
surveys or information has been verified by any independent sources.
Financial and Operating Data
This annual report contains financial statements and financial information relating to the Group. In particular, this
annual report contains audited consolidated financial statements for the twelve months ended 31 December 2023.
The financial statements appended to this annual report are presented in U.S. dollars and have been prepared in
accordance with International Financial Reporting Standards ("IFRS").
The functional currency of the Company is U.S. dollars. Accordingly, transactions in currencies other than our
functional currency are translated into U.S. dollars at the exchange rates prevailing on the applicable transaction
dates.
Certain arithmetical data contained in this annual report, including financial and operating information, have been
subject to rounding adjustments. Accordingly, in certain instances, the sum of the numbers in a column or a row in
tables contained in this annual report may not conform exactly to the total figure given for that column or row.
All numbers are presented in thousands, except share, per share and exchange rate data, unless otherwise stated.
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PART I
ITEM 1. KEY INFORMATION
Currency Presentation and Exchange Rate Information
Unless otherwise indicated, all references in this annual report to "U.S. $" or "U.S. dollars" are to the lawful currency
of the United States; all references to "€" or the "Euro" are to the lawful currency of the member states of the
European Union that adopt the single currency in accordance with the EC Treaty, which means the Treaty
establishing the European Community (signed in Rome on 25 March 1957), as amended by the Treaty on European
Union (signed in Maastricht on 7 February 1992) and as amended by the Treaty of Amsterdam (signed in Amsterdam
on 2 October 1997) and includes, for this purpose, Council Regulations (EC) No. 1103/97 and all references to
"PLN" or "Polish Zloty" are to the lawful currency of the Republic of Poland. All references to U.S. dollars, Euro,
Polish Zloty and other currencies are in thousands, except share and per share data, unless otherwise stated.
The following tables set out, for the periods indicated, certain information regarding the average of the 11:00 a.m.
buying/selling rates of the dealer banks as published by the National Bank of Poland, or NBP, for the zloty, the
“effective NBP exchange rate”, expressed in Polish Zloty per dollar and Polish Zloty per Euro. The exchange rates
set out below may differ from the actual exchange rates used in the preparation of our consolidated financial
statements and other financial information appearing in this annual report. Our inclusion of the exchange rates is
not meant to suggest that the U.S. dollars amounts represent such polish Zloty or Euro amounts or that such
amounts could have been converted into Polish Zloty or Euros at any particular rate, if at all.
Year ended December 31,
Year (Polish Zloty to U.S. dollar) 2019 2020 2021 2022 2023
Exchange rate at end of period .....................................
3.80
3.76
4.06
4.40 3.94
Average exchange rate during period
(1)
.........................
3.84
3.90
3.88
4.47 4.18
Highest exchange rate during period .............................
4.02
4.27
4.12
4.95 4.49
Lowest exchange rate during period .............................
3.72
3.63
3.67
4.11 3.90
__________
The average exchange rate as certified for customs purposes by NBP on the last business day of each month during the applicable period
Highest Lowest
exchange rate exchange rate
during the during the
Month (Polish Zloty to U.S. dollar) month month
January 2023 .................................................................................................
4.44 4.32
February 2023 ...............................................................................................
4.49 4.28
March 2023 ...................................................................................................
4.46 4.29
April 2023 ......................................................................................................
4.32 4.15
May 2023 .......................................................................................................
4.26 4.12
June 2023 ......................................................................................................
4.24 4.03
July 2023……………………………………………………………………………
4.12 3.95
August 2023………………………………………………………………………...
4.14 4.03
September 2023……………………………………………………………………
4.41 4.13
October 2023……………………………………………………………………….
4.42 4.17
November 2023…………………………………………………………………….
4.20 3.95
December 2023…………………………………………………………………….
4.03 3.90
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The following table shows for the dates and periods indicated the period-end, average, high and low Euro to U.S.
dollar exchange rate as calculated based on the rates reported by the National Bank of Poland.
Year ended December 31 (Euro to U.S. dollar)
2019
2020
2021
2022
2023
Exchange rate at end of period .....................................
0.8918
0.8144
0.8827
0.9386 0.9050
Average exchange rate during period
(1)
.........................
0.8935
0.8729
0.8467
0.9530 0.9236
Highest exchange rate during period .............................
0.9149
0.9207
0.8874
1.0148 0.9536
Lowest exchange rate during period .............................
0.8782
0.8575
0.8205
0.8739 0.8939
The average NBP exchange rate, euro per U.S. $, on the last business day of each month during the applicable period
Month (Euro to U.S. dollar)
Highest Lowest
exchange rate exchange rate
during the during the
month
month
January 2023 .................................................................................................
0.9393 0.9262
February 2023 ...............................................................................................
0.9372 0.9123
March 2023 ...................................................................................................
0.9473 0.9184
April 2023 ......................................................................................................
0.9204 0.9053
May 2023 .......................................................................................................
0.9274 0.9202
June 2023 ......................................................................................................
0.9357 0.9107
July 2023……………………………………………………………………………
0.9194 0.8939
August 2023…………………………………………………………………………
0.9235 0.9111
September 2023……………………………………………………………………
0.9408 0.9241
October 2023……………………………………………………………………….
0.9536 0.9391
November 2023…………………………………………………………………….
0.9406 0.9112
December 2023…………………………………………………………………….
0.9260 0.9056
Selected Financial Data
The following table sets forth our selected historical financial data for the years ended December 31, 2023, and
2022 and should be read in conjunction with Item 3. “Operating and Financial Review and Prospects” and the
consolidated financial statements (including the notes thereto) included elsewhere in the annual report. We have
derived the financial data presented in accordance with IFRS from the audited consolidated financial statements.
For your convenience, certain U.S. $ amounts as of and for the year ended 31 December 2023, have been converted
into Euro and PLN as follows:
• Individual items of the balance sheet – based at average exchange rates quoted by the National Bank of
Poland 31 December 2023, that is 1 US$ = 3.9350 PLN and 1 EUR = 4.3480 PLN.
• Individual items in the income statement and cash flow statement – based at exchange rates representing
the arithmetic averages of the exchange rates quoted by the National Bank of Poland for the last day of
each month in a period between 1 January to 31 December 2023, that is 1 US$ = 4.1823 PLN and 1 EUR
= 4.5284 PLN.
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Period from 1 January to 31 December
2023 2022
USD
PLN
EUR
USD
Revenue
3,061,228
12,802,999
2,827,289
2,690,039
Cost of sales (2,808,959) (11,747,933) (2,594,298) (2,462,208)
Gross profit
252,269
1,055,067
232,991
227,831
Gross profit margin
8.24%
8.47%
Selling expenses (82,745) (346,065) (76,422) (69,217)
Administrative expenses (57,031) (238,521) (52,673) (47,620)
Profit from operations
112,493
470,480
103,896
110,994
Financial expenses (34,930) (146,088) (32,261) (25,694)
Financial income 2,719 11,372 2,511 5,242
Realized foreign exchange loss relating to foreign
operations liquidated and disposed (11,286) (47,202) (10,424) (282)
Other gains and losses (3,790) (15,851) (3,500) 948
Share of loss of equity-accounted investees (237) (991) (219) (162)
Profit before taxation
64,969
271,720
60,004
91,046
Taxation (12,013) (50,242) (11,095) (15,176)
Profit after taxation
52,956
221,478
48,909
75,870
Attributable to:
Non-controlling interests (92) (385) (85) 3
Owners of the Company
53,048
221,863
48,994
75,867
USD
PLN
EUR
USD
EBITDA calculation
Profit before tax 64,969 271,720 60,004 91,046
Add back:
Financial expenses/net 43,497 181,918 40,173 20,734
Other income 3,790 15,851 3,500 (948)
Share of loss of equity-accounted investees 237 991 219 162
EBIT for the period 112,493 470,480 103,896 110,994
Depreciation 6,995 29,255 6,460 4,554
Amortization 678 2,836 626 1,203
EBITDA for the period 120,166 502,571 110,983 116,751
USD
(cents)
PLN
(grosz)
EUR
(cents)
USD
(cents)
Earnings per share
Weighted average basic and diluted earnings per share
from continuing operations 95.87 400.96 88.54 137.10
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2023 2022
USD PLN EUR USD
Net cash inflows/(outflows) from operating activities 45,411 189,923 41,941 (56,048)
Net cash outflows from investing (11,710) (48,975) (10,815) (11,075)
Net cash (outflows)/inflows from financing activities (17,747) (74,223) (16,391) 8,555
Net increase/(decrease) in cash and cash
equivalents
15,954 66,725 14,735 (58,568)
Cash at the beginning of the year 92,352 386,245 85,294 150,920
Cash at the end of the year 108,306 452,969 100,029 92,352
As of 31 December, 2023
As of 31
December,
2022
USD
PLN
EUR
USD
Current assets
931,214 3,664,327 842,762 1,003,920
Non-current assets
81,264 319,774 73,545 59,606
Total assets
1,012,478 3,984,101 916,307 1,063,526
Liabilities
731,266 2,877,532 661,806 819,346
Equity
281,212 1,106,569 254,501 244,180
Definitions and use of Alternative Performance Measures:
Gross profit
Gross profit is the residual profit made after deducting the cost of sales from revenue.
Gross profit margin
Gross profit margin is calculated as the gross profit divided by revenue, presented as a percentage.
EBIT (Earnings Before Interest and Tax) is calculated as the Profit before Tax, Net financial expenses, other
income/loss and share of profit/loss of equity-accounted investees, all of which are directly identifiable in financial
statements.
EBITDA
EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) is calculated as the Profit before Tax, Net
financial expenses, other income, share of profit/loss of equity-accounted investees, Depreciation, Amortization,
Goodwill impairment and Negative goodwill, all of which are directly identifiable in financial statements.
The use of the above Alternative Performance Measures (“APM”) is made for the purpose of providing a more detailed
analysis of the financial results.
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Risk Factors
This section describes significant risks and uncertainties affecting our business. The risks and uncertainties
described below are not the only ones we face. There may be additional risks and uncertainties not presently known
to us or that we currently deem immaterial. Any of these risks could adversely affect our business, financial condition,
our results of operations and our liquidity.
Risk factors relating to our business and industry.
The ongoing war in Ukraine
The war between Russia and Ukraine (which were, before the war, the two major markets for ASBIS) constituted a
major disruption in demand in both countries, the whole region and the globe. The war has created the most
unfavorable business environment in the whole region. Despite the large geographical presence of the Group, it is
not possible to totally weather the impact of a full-scale war between these two countries. The Company considers
the situation critical, and it is extremely difficult to assess how this will further evolve. The Company ceased any
operation in Russia, following all sanctions imposed by suppliers and other international organizational bodies. The
Group has decided to totally divest from Russia and has completed the sale of its subsidiary in the country in October
2023.
The Group, being fully compliant with the directions given by the EU and its suppliers, has undertaken all necessary
actions to prevent sales of sanctioned products to sanctioned entities and/or individuals.
The in-country financial conditions affecting our major markets, gross profit, and gross profit margin.
Throughout the years of operation, the Company has from time to time suffered from specific in-country problems,
emanating from the deterioration of specific countries’ financial situation, due to several issues including but not
limited to political instability. We need to monitor any developments, react fast and weather every risk showing up
in a specific market to secure our results.
The Company needs to keep in mind that different in-country problems might arise at any time and affect our
operations. Even though we have improved our procedures, we cannot be certain that all risks are mitigated.
Fluctuation in the value of currencies in which operations are conducted and activities are financed relative
to the U.S. dollar could adversely affect our business, operating results, and financial condition.
The Company’s reporting currency is the U.S. dollar. In the 12M of 2023 a good portion of our revenues was
denominated in U.S. dollars, while the balance is denominated in Euro, UAH, KZT and other currencies, certain of
which are linked to the Euro. Our trade payable balances are principally (about 85%) denominated in U.S. dollars.
In addition, approximately half of our operating expenses are denominated in U.S. dollars and the other half in Euro
or other currencies, certain of which are linked to the Euro.
As a result, reported results are affected by movements in exchange rates, particularly in the exchange rate of the
U.S. dollar against the Euro and other currencies of the countries in which we operate, including the Ukrainian
Hryvnia, the Czech Koruna, the Polish Zloty, the Kazakhstani Tenge and the Hungarian Forint. In particular, a
strengthening of the U.S. dollar against the Euro and other currencies of the countries in which we operate may
result in a decrease in revenues and gross profit, as reported in U.S. dollars, and foreign exchange loss relating to
trade receivables and payables, which would have a negative impact on our operating and net profit despite a
positive impact on our operating expenses.
On the other hand, a devaluation of the U.S. dollar against the Euro and other currencies of the countries in which
we operate may have a positive impact on our revenues and gross profit, as reported in U.S. dollars, which would
have a positive impact on operating and net profit despite a negative impact on our operating expenses.
In addition, foreign exchange fluctuation between the U.S. dollar and the Euro or other currencies of the countries
in which we operate may result in translation gains or losses affecting foreign exchange reserve. Furthermore, a
major devaluation or depreciation of any such currencies may result in a disruption in the international currency
markets and may limit the ability to transfer or to convert such currencies into U.S. dollars and other currencies.
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Despite all efforts of the Company, there can be no assurance that fluctuations in the exchange rates of the Euro
and/or other currencies of the countries in which we operate against the U.S. dollar will not have a material adverse
effect on our business, financial condition and results of operations. Having decided to completely divest from
Russia, the Group faced a crystallization of the respective currency translation reserve.
Worldwide financial environment
The overall financial environment and the economic landscape of each country we operate in always play a
significant role in our performance. The revised strategy and adaptation to the new environment, i.e., by rebuilding
our product portfolio, has paid off in terms of profitability and sales in the last three years.
We believe that the Company is much more flexible and better prepared to weather any obstacles that may arise
due to the worldwide financial environment, however, we can see that a full-scale war in our territories may bring
unprecedented consequences.
In addition to the above, it has been recently noticed that multiple raw materials and finished product prices have
risen dramatically, and this might significantly impact demand generation. This must be closely monitored, and the
Company is alerted to manage any market anomalies.
Credit risk faced by us due to our obligations under supply contracts and the risk of delinquency of
customer accounts receivable could have a material adverse effect on our business, operating results, and
financial position.
The Company buys components and finished products from its suppliers on its own account and resells them to its
customers. The Company extends credit to some of its customers at terms ranging from 7 to 90 days or, in a few
cases, to 120 days.
The Company’s payment obligations towards its suppliers under such agreements are separate and distinct from its
customers' obligations to pay for their purchases, except in limited cases where the Company’s arrangements with
its suppliers require the Company to resell to certain resellers or distributors. Thus, the Company is liable to pay its
suppliers regardless of whether its customers pay for their respective purchases.
As the Company’s profit margin is relatively low compared to the total price of the products sold, in the event where
the Company is not able to recover payments from its customers, it is exposed to financial liquidity risk. The
Company has in place credit insurance which covers such an eventuality for most of its revenue.
Despite all efforts to secure our revenues, certain countries remained non-insured (Ukraine), therefore it is very
important for us to ensure that we find other sources of securities which help us minimize our credit risk. The Board
of Directors decided to enhance the Company’s risk management procedures.
These do not guarantee that all issues will be avoided, however, they have granted the Company with confidence
that is able to weather any possible major credit issue that may arise.
Competition and price pressure in the industry in which we operate on a global scale may lead to a decline
in market share, which could have a material adverse effect on our business, operating results, and financial
condition.
The IT distribution industry is a highly competitive market, particularly with regards to products selection and quality,
inventory, price, customer services and credit availability and hence is open to margin pressure from competitors
and new entrants.
The Company competes at the international level with a wide variety of distributors of varying sizes, covering
different product categories and geographic markets. In each of the markets in which the Company operates it faces
competition from:
• International IT and CE distributors with presence in all major markets we operate
• Regional IT and CE distributors who cover mostly a region but are quite strong
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• Local distributors who focus mostly on a single market but are very strong
• International IT and mobile phones brokers, who sell opportunistically in any region and/or country
Competition and price pressures from market competitors and new market entrants may lead to significant
reductions in the Company’s sales prices.
Such pressures may also lead to a loss of market share in certain of the Group's markets. Price pressures can have
a material adverse effect on the Company’s profit margins and its overall profitability, especially in view of the fact
that its gross profit margins, like those of most of its competitors, are low and sensitive to sales price fluctuations.
The IT distribution and mobile devices business have low-profit margins, which means that operating
results are highly sensitive to increased operating costs, which if not successfully managed could have a
material adverse effect on our business, results of operations and financial condition.
The Company’s business is comprised of both a traditional distribution of third-party products and our own brands.
This allows the Company to deliver healthier gross profit margins when conditions are favorable.
In the traditional distribution business, the Company’s gross profit margins, like those of other distributors of IT
products, are low and the Company expects that in the distribution arm of its business, they will remain low in the
foreseeable future.
Increased competition arising from industry consolidation and low demand for certain IT products may hinder the
Company’s ability to maintain or improve its gross margins.
A portion of the Company’s operating expenses is relatively fixed, and planned expenditures are based in part on
anticipated orders that are forecasted with limited visibility of future demand.
As a result, the Company may not be able to reduce its operating expenses as a percentage of revenue to mitigate
any reductions in gross margins in the future. In addition to the above, recent increase in gross profit margins may
no longer be sustainable given the oversupply in the markets and decreased demand.
Inventory obsolescence and price erosion in the industry in which we operate may have a material adverse
effect on our business, financial condition, and results of operations.
The Company is often required to buy components and finished products according to forecasted requirements and
orders of its customers and in anticipation of market demand. The market for IT finished products and components
is characterized by rapid changes in technology and short product shelf life, and, consequently, inventory may
rapidly become obsolete. Due to the fast pace of technological changes, the industry may sometimes face a
shortage or, at other times, an oversupply of IT products.
As the Company increases the scope of its business and of inventory management for its customers, there is an
increasing need to hold inventory to serve as a buffer in anticipation of the actual needs of the Company’s customers.
This increases the risk of inventory becoming devalued or obsolete and could affect the Company’s profits either
because prices for obsolete products tend to decline quickly, or because of the need to make provisions or even
write-offs.
In an oversupply situation, other distributors may elect to proceed with price reductions to dispose of their existing
inventories, forcing the Company to lower its prices to stay competitive. The Company’s ability to manage its
inventory and protect its business against price erosion is critical to its success.
Several of the Company’s most significant contracts with its major suppliers contain advantageous contract terms
that protect the Company against exposure to price fluctuations, defective products and stock obsolescence.
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Our business is highly dependent on distribution contracts with a limited number of suppliers; a loss of or
change in the material terms of these contracts could have a material adverse effect on our business,
operating results and financial condition.
The part of our business consisting of the distribution of third-party products is dependent on the CIS region and
actions of a limited number of suppliers. In the year ended 31 December 2023, the Company held contracts with
Apple, Intel, Advanced Micro Devices (AMD), Logitech, Dell, Lenovo, Seagate, HP, Microsoft, IBM, Bang&Olufsen,
Asus, and other international suppliers. Contracts with these suppliers are typically on a non-exclusive basis, allow
for termination with or without cause and are open-ended with respect to requirements and output rather than
imposing any commitment to a specific volume of business or scope of work.
We face a risk of termination of our distribution agreements, if we do not perform pursuant to the supplier's
expectations or for any other reason, including several factors outside our control. Changes in the suppliers'
business strategies, including moving part or all their distribution arrangements to our competitors, or directly
distributing products to end-users, could result in the termination of the respective distribution contracts. Any of
these suppliers may merge with, acquire or be acquired by any of our competitors which already has its own
distribution network in the market. Any supplier may consider us redundant as a distributor and may terminate our
distribution agreement or may experience financial difficulties, as a result of which it may not be able to grant
beneficial credit terms and/or honour financial terms in the relevant distribution agreements, such as those relating
to price protection, stock returns, rebates, performance incentives, credit from returned materials and
reimbursement of advertising expenses incurred during joint promotion campaigns. Termination or material change
in the terms of a vendor contract due to any of the aforesaid factors could have a material adverse effect on our
business, results of operations and financial condition.
Our inability to maintain or renew our distribution and supply contracts on favourable terms with key
customers and suppliers could have a material adverse effect on our business, operating results and
financial condition.
In the part of our business related to the distribution of third-party products, we have significant contracts with a
limited number of customers and other business partners, some of which are oral agreements, terms of which and
the enforceability of which, remain uncertain, or are agreements that may be terminated without cause or by written
notice at the expiry of their term.
In addition, a number of our most significant contracts with our major suppliers contain terms that protect us against
exposure to price fluctuations, defective products and stock obsolescence.
Specifically, our contracts terms including terms such as (i) a price protection policy, which allows us to request
reimbursement from the suppliers for inventory in transit or held at our warehouses in the event that product prices
decline; (ii) a stock rotation policy under which we have the right to return to the supplier slow moving inventory in
exchange for credit, which reduces our exposure to obsolescence of inventory; and (iii) a return material
authorization policy under which we can return defective items to our suppliers in return for either credit,
replacements or refurbished products.
If we are unable to maintain or enforce our significant contracts, or if any of our significant suppliers refuse to renew
contracts with us on similar terms, or new significant suppliers of ours do not make such terms available to us, we
could face a higher risk of exposure to price fluctuations and stock obsolescence, which given our narrow gross
profit margins, could have a material adverse effect on our business, operating results and financial condition.
Our suppliers' increasing involvement in e-commerce activities, which would enable them to directly sell to
our customers, could threaten our market share, and therefore adversely affect our business, operating
results and financial condition.
In the third-party products distribution part of our business, we operate as a distributor, or a "middleman", between
manufacturers and our customers. Manufacturers are sometimes able to outsource their sales and marketing
functions by engaging in the services of a distributor and concentrating on their core competencies.
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With the emergence, however, of new internet technologies and e-commerce, more manufacturers are developing
their own online commerce platforms with the capability to accept orders and conduct sales through the internet.
Global distributors have also set up their own web-sites to enable sales and purchases to be conducted online.
Although we have developed the IT4Profit platform, an online purchasing platform for electronic dealing with our
customers (B2B), there can be no assurance that any of our suppliers or competing distributors will not successfully
implement similar electronic purchasing platforms and manage to fully satisfy our customers' needs, in which case
our risks losing a significant part of our business.
In addition, market prices of components may deteriorate because of increasing online competition, as online
customers can search globally for the cheapest available components.
If we are unable to effectively leverage our internet technologies and e-commerce or successfully compete with
emerging competitors offering online services, this could have a material adverse effect on our business, operating
results and financial condition.
Our success is dependent on our own logistics and distribution infrastructure and on third parties that
provide those services, a loss of which could adversely affect our business, operating results and financial
performance.
Currently, ASBIS has two main distribution centers (Czech Republic and United Arab Emirates) covering most of its
operations. We have recently added another two regional distribution centers in Georgia and South Africa. In 2024
we have started erecting a new warehouse in Kazakhstan, which will enable the Company to consolidate all stock
points in the country. As a result, we are highly dependent on third-party providers for logistics such as courier and
other transportation services. An interruption or delay in delivery services causing late deliveries could result in loss
of reputation and customers and could force us to seek alternative, more expensive delivery services, thereby
increasing operating costs, which would have an adverse effect on our business, operating results and financial
performance. An important part of our strategy to achieve cost efficiencies while maintaining turnover growth is the
continued identification and implementation of improvements to our logistics and distribution infrastructure. We need
to ensure that our infrastructure and supply chain keep pace with our anticipated growth. The cost of this enhanced
infrastructure could be significant and any delays to such expansion could adversely affect our growth strategy,
business, operating results and financial performance. Therefore, any significant disruption to the services of these
third-party providers could have a material adverse effect on our business, results of operations and financial
condition. Recently, we have observed a significant increase in raw material prices. The Group must constantly
search for and find ways of mitigating such increases and offer competitive pricing to customers.
Our inability to recruit and retain key executives and personnel could have a material adverse effect on our
business, operating results and financial condition.
Our business depends upon the contribution of several of our executive Directors, key senior management and
personnel, including Siarhei Kostevitch, our Chief Executive Officer and Chairman of the Board of Directors. There
can be no certainty that the services of Mr Kostevitch and of other of our key personnel will continue to be available
to us. We have in the past experienced and may in the future continue to experience difficulty in identifying expert
personnel in our areas of activity, and particularly in the areas of information technology and sales and marketing,
in the countries in which we operate. In addition, we do not currently maintain "key person" insurance.
If we are not successful in retaining or attracting highly qualified personnel in key management positions, this could
have a material adverse effect upon our business, operating results and financial condition.
High cost of debt
The distribution business entails a higher need for cash available to support growth. The Group has managed to
raise cash from various financial institutions, however, in certain cases, the cost of this financing is expensive.
The Company has already negotiated improved terms with some of its financiers and is currently undertaking certain
extra steps to further lower its cost of financing. Base rates (US Libor and its successor rates, Euribor, other local
base rates) have recently shown a significant uptrend, and this has significantly increased the Company’s WACD.
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The weighted average cost of debt (WACD) in 2023 has increased to 11.9%, from 10.5% in 2022.
Development of own brand business
The Company’s strategy is to focus more on profitability than on revenues, thus we continue to develop the own-
brand business that allows for higher gross profit margins.
The own brands include CANYON which focuses on the development of products addressing youngsters and
include all lines of PC and mobile accessories. It also includes a series of sound and music gadgets which makes it
very attractive to the young population it addresses.
Prestigio has been redesigned and it has now aim to reach out to a high-end market segment, with products of
elegance and luxury in its portfolio.
At the end of 2021, the Company launched two new own brands: Lorgar - a brand of ultimate accessories for gamers
and AENO - a brand for smart home appliances.
In Q4 2022, the Company has launched a new own brand “CRON Robotics” operating under a new business division
– AROS - ASBIS Robotic Solutions. The core business of this division is based on two major segments – the
distribution of collaborative robots (cobots) from leading global brands in the sector as well as own robotic platforms
under own brand.
In July 2023, ASBIS presented the first version of its beer-serving robotic kiosk in Limassol and recently finalized
the kiosk which serves refreshments, dry nuts and even cocktails.
Environmental and Climate Changes
In terms of transition risks that arise from the transition to a low-carbon and climate-resilient economy, we may face
the following risks: policy and legal risks (there may be laws or policies put in place that may require a more
environmentally cautious approach to raw materials and land use), technology risks (changes in technology used to
produce IT equipment) – these both may lead to growing prices in terms of IT equipment and solutions.
We may also face market risk with consumers switching to more energy-efficient appliances or making more savvy
purchases to limit their own impact on the environment. We will monitor these trends and introduce the latest
hardware for our customers.
We may also face reputational risks with difficulties in attracting customers, business partners and employees if we
do not take strong enough actions against climate change. In terms of physical risks resulting from climate changes,
we may face both acute and chronic risks.
Acute physical risks may arise from weather-related events in the form of floods, fires or droughts that may damage
factories in certain regions, cause factories to limit or temporarily stop their production or disrupt our supply chain in
other ways. These may result in temporary limitations in our product offering or rising prices of hardware and
components. Chronic physical risks (i.e., risks that may result from long-term changes in the climate) may also affect
ASBIS. Growing temperatures worldwide may cause a need for more temperature-resilient hardware and appliances
and may also result in more hardware malfunctions that may increase warranty claims.
ITEM 2. Information on the Company
History and Development of Asbisc Enterprises Plc and Business Overview
Asbisc Enterprises Plc. is the parent entity for the Group described in this chapter, in the section "Group Structure
and Operations".
ASBISc Enterprises Plc is a leading Value Add Distributor, developer and provider of ICT, IoT products, solutions,
and services to the markets of Europe, the Middle East, and Africa (EMEA) with local operations in Central and
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Eastern Europe, the Baltic republics, the former Soviet Union, the Middle East and North Africa, combining a broad
geographical reach with a wide range of products distributed on a "one-stop-shop" basis. Our focus is on the
following countries: Kazakhstan, Ukraine, Slovakia, Poland, Czech Republic, Romania, Croatia, Slovenia, Bulgaria,
Serbia, Hungary, Middle East countries (i.e., United Arab Emirates, Qatar and other Gulf states), Latvia and South
Africa.
The Group distributes IT components (to assemblers, system integrators, local brands and retail) as well as A-
branded finished products like desktop PCs, laptops, servers, and networking to SMB and retail. Our IT product
portfolio encompasses a wide range of IT components, blocks and peripherals, and mobile IT systems. We currently
purchase most of our products from leading international manufacturers, including Apple, Intel, Advanced Micro
Devices ("AMD"), Logitech, Seagate, Western Digital, Samsung, Microsoft, Toshiba, Dell, Acer, Lenovo and Hitachi.
In addition, a part of our revenues is comprised of sales of IT products under our private labels: Prestigio, Prestigio
Solutions, Canyon, Perenio, AENO, LORGAR and CRON ROBOTICS.
ASBISc commenced business in 1990 in Belarus and in 1995 we incorporated our holding Company in Cyprus and
moved our headquarters to Limassol. Our Cypriot headquarters support, through two master distribution centres
(located in the Czech Republic and the United Arab Emirates), our network of 31 warehouses located in 34 countries.
This network supplies products to the Group's in-country operations and directly to its customers in approximately
60 countries.
The Company’s registered and principal administrative office is at 1, Iapetou Street, 4101, Agios Athanasios,
Limassol, Cyprus.
Our revenues amounted to U.S. $ 3,061,228 in 2023, compared to U.S. $ 2,690,039 in 2022, following our strategy
to increase profitable business and improve market share alongside with improving gross profit margins. Net profit
after tax for 2023 was negatively affected by the disposal of ASBIS’s subsidiary in Russia and the complete closure
of the Company's operations in this country by approximately USD 25 million. It is worth underlining that without
considering the one-offs, ASBIS would achieve a net profit of USD 78 million - the highest ever in the Company’s
history.
Our headquarters are home to our centralized purchasing department and global control function, which centrally
monitors and controls our global activities, including purchasing, warehousing and transportation operations. In line
with our strategy of focusing on automation and innovation to increase our cost-efficiency, in 2002 we began
developing the IT4Profit platform, our online purchasing platform for electronic trading with our customers (B2B) and
electronic data interchange for the Company and its subsidiaries.
Within this platform, we have also implemented our end-to-end online supply chain management system, to
effectively manage our multinational marketplace and increase automation and reporting transparency both
internally and vis-à-vis our suppliers.
We combine international experience of our central management team with local expertise of our offices in each of
the 34 countries in which we operate. With our broad local presence, we have developed an in-depth knowledge
and understanding of fast-growing markets in regions such as Central and Eastern Europe “(CEE”) and CIS and our
diverse cultural, linguistic and legal landscape, which may form significant barriers to entry for most of our
international competitors. The Directors believe that this advantage has helped us to quickly and cost-effectively
penetrate emerging markets and strengthen our competitive position in the markets where we operate.
History of the Group
The business has been established back in 1990 by Mr Siarhei Kostevitch and the Company’s main activity was the
distribution of Seagate Technology products in the territory of the Former Soviet Union. Then, in 1995, the Company
was incorporated in Cyprus and moved its headquarters to Limassol together with all key management. In 2002, to
fund further growth, we privately placed U.S. $ 6,000 worth of shares with MAIZURI Enterprises Ltd (formerly named
Black Sea Fund Limited) and U.S. $ 4,000 with Alpha Ventures SA. In 2006, we listed our common stock on
Alternative Investment Market of London Stock Exchange («AIM»), however after the successful listing on the
Warsaw Stock Exchange (October 2007) the Board of Directors cancelled the AIM listing as of the 18
th
of March
2008. Ever since the company remained listed at the Warsaw Stock Exchange where it joined the WIG 40 index.
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Strengths of the Group
The Directors consider that our key strengths are:
• Broad geographic coverage combined with a strong local presence.
Unlike most of our international competitors, we operate with an active local presence in several countries across
different regions. Since many of our competitors target the same markets from several different locations in Western
Europe, we benefit from increased logistical cost efficiencies. In particular, our broad geographic coverage,
combined with our centralized structure and automated processes, results in reduced shipping costs and lower
revenue collection expense, as well as a consistent marketing approach, as compared to our competitors. As a
result, we have become an authorized distributor for leading international suppliers wishing to penetrate several
fast-growing markets served by us, offering them the ability to penetrate these markets in a cost-efficient manner
and through a consistent marketing approach.
• Experienced management team combined with local expertise.
Our management is a team of experienced executives. Our Chief Executive Officer has been with the Company
since its inception in 1990, while most of our key executives have served for more than twenty years.
The business entities of ASBIS Group are managed by skilled local experts who have a strong understanding of the
diverse markets, considerable knowledge, and a complete grasp of the regulatory environment in their countries.
The Directors believe that local presence represents a significant competitive advantage for us over our multinational
competitors.
• A critical mass of operations.
Having revenues of 3.1 billion U.S. Dollars, sales in approximately 60 countries and facilities in 34 countries, we
believe that we have become a strong partner for leading international suppliers of IT components and finished
products, including Apple, AMD, Intel, Logitech, Dell, Lenovo, HP, Kingston, Seagate, IBM, Supermicro, Bang &
Olufsen, Asus, Samsung, Microsoft, etc. in most of our regions of operations. Thanks to our size and the scope of
our regional reach, we have achieved authorized distributor status with leading international suppliers, either on a
pan-European, regional, or on a country-by-country basis, thus enjoying several beneficial commercial terms and
achieving agreements with respect to the distribution of products offering higher profit margins.
• Price protection and stock rotation policy for inventory.
As an authorized distributor for several leading international suppliers of IT components, we can benefit from certain
beneficial contract terms that provide protection from declining prices or slow-moving inventory.
In particular, such terms allow us to return part of the inventory to the respective distributors at the event market
prices decline or such inventory becomes obsolete. See "Our Main Suppliers - Price Protection Policy and Stock
Rotation Policy". In contrast, in some of the countries in which we operate, many of our major competitors tend to
buy from the open market, which leaves them exposed to the risk of price changes and obsolete stock.
• One-stop-shop for producers and integrators of IT equipment.
We have a diverse portfolio with a large range of A-branded final products like tablets, smartphones, laptops, desktop
computers, servers, networking equipment, and software as well as IT components – such as complete solutions,
building blocks, and peripherals. As a result, we serve as a one-stop-shop, providing complete solutions to
producers and integrators of the server, mobile and desktop segments in the countries in which we operate. The
Directors consider this to be a significant advantage over competitors with more limited product offerings.
• Own brands business improving our profitability.
In the past years, we have invested in the development of our own brands and built a strong market position.
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At the end of 2022, the Company launched a new own brand “CRON Robotics” operating under a new business
division – AROS - ASBIS Robotic Solutions. The core business of this division is based on two major segments –
the distribution of collaborative robots (cobots) from leading global brands in the sector as well as own robotic
platforms under own brand, following our efforts to strengthen our brand portfolio and having seen how promising
this sector is.
We are doing our best to keep pushing our seven own brands (Aeno, Canyon, Cron Robotics, Lorgar, Perenio,
Prestigio and Prestigio Solutions) to generate higher levels of revenue and at the same time higher gross profit
margins with good cash flow. The Directors consider own brands to be a valuable reinforcement of our profitability
if it is developed as an addition to the distribution business. Thus, the development of this segment is and will be
continued.
• Ability to adjust our cost structure to the new business environment and the Company needs.
This is considered a very big advantage of the Company. It has been proven that the Company could quickly adjust
its cost structure to any turbulent business environment.
Constantly looking for new ideas and innovative partnerships
During the last four years and in the course of 2023, the Group managed to attract and partner with some of the
very innovative companies in Cyprus and not only. These start-ups have pioneering technologies in different fields
of expertise which make it very exciting and unique value proposition for ASBIS. The BOD considers this to be a
competitive advantage for the Group, given the diversity of these companies and opportunities that the Group is
exposing itself into.
Group Structure and Operations
The following table presents our corporate structure as at December 31
st
, 2023:
Company Consolidation
Method
ASBISC Enterprises PLC Mother company
Asbis Ukraine Limited (Kyiv, Ukraine) Full (100%)
Asbis Poland Sp. z o.o. (Warsaw, Poland) Full (100%)
Asbis Romania S.R.L (Bucharest, Romania) Full (100%)
Asbis Cr d.o.o (Zagreb, Croatia) Full (100%)
Asbis d.o.o Beograd (Belgrade, Serbia) Full (100%)
Asbis Hungary Commercial Limited (Budapest, Hungary) Full (100%)
Asbis Bulgaria Limited (Sofia, Bulgaria) Full (100%)
Asbis CZ,spoI.s.r.o (Prague, Czech Republic) Full (100%)
UAB Asbis Vilnius (Vilnius, Lithuania) Full (100%)
Asbis Slovenia d.o.o (Trzin, Slovenia) Full (100%)
Asbis Middle East FZE (Dubai, U.A.E) Full (100%)
Asbis SK sp.l sr.o (Bratislava, Slovakia) Full (100%)
ASBC F.P.U.E. (Minsk, Belarus) Full (100%)
E.M. Euro-Mall Ltd (Limassol, Cyprus) Full (100%)
Asbis Morocco Sarl (Casablanca, Morocco) Full (100%)
Prestigio Plaza Ltd (Limassol, Cyprus) Full (100%)
Perenio IoT spol. s.r.o. (Prague, Czech Republic) Full (100%)
Asbis Kypros Ltd (Limassol, Cyprus) Full (100%)
“ASBIS BALTICS” SIA (Riga, Latvia)
Full (100%)
Asbis d.o.o. (Sarajevo, Bosnia Herzegovina) Full (90%)
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ASBIS Close Joint-Stock Company (Minsk, Belarus) Full (100%)
ASBIS Kazakhstan LLP (Almaty, Kazakhstan) Full (100%)
Euro-Mall SRO (Bratislava, Slovakia) Full (100%)
Asbis China Corp. (former Prestigio China Corp.) (Shenzhen, China) Full (100%)
ASBIS DE GMBH, (Munchen, Germany) Full (100%)
EUROMALL BULGARIA EOOD (Sofia, Bulgaria) Full (100%)
E-Vision Production Unitary Enterprise (Minsk, Belarus) Full (100%)
iSupport Ltd (Kiev, Ukraine) (former ASBIS SERVIC Ltd) Full (100%)
I ON LLC (Kiev, Ukraine) Full (100%)
ASBC MMC LLC (Baku, Azerbaijan) Full (65.85%)
ASBC KAZAKHSTAN LLP (Almaty, Kazakhstan) Full (100%)
Atlantech Ltd (Ras Al Khaimah, U.A.E) Full (100%)
ASBC LLC (Tbilisi, Georgia) Full (100%)
Real Scientists Limited (London, United Kingdom) Full (55%)
i-Care LLC (Almaty, Kazakhstan) Full (100%)
ASBIS IT Solutions Hungary Kft. (Budapest, Hungary) Full (100%)
Breezy LLC (Minsk, Belarus) (former Café-Connect LLC) Full (100%)
MakSolutions LLC (Minsk, Belarus) Full (100%)
Breezy Kazakhstan TOO (Almaty, Kazakhstan) (former TOO “ASNEW”) Full (100%)
Breezy LLC (Kyiv, Ukraine) Full (100%)
I.O.N. Clinical Trading Ltd (Limassol, Cyprus) Full (100%)
R.SC. Real Scientists Cyprus Ltd (Limassol, Cyprus) Full (85%)
ASBIS CA LLC (Tashkent, Uzbekistan) Full (100%)
Breezy Service LLC (Kyiv, Ukraine) Full (100%)
Breezy Trade-In Ltd (Limassol, Cyprus) (former Redmond Europe Ltd) Full (91.15%)
SIA Joule Production (Riga, Latvia) Full (100%)
ASBC LLC (Yerevan, Armenia) Full (100%)
Breezy Georgia LLC (Tbilisi, Georgia) Full (100%)
ASBC Entity OOO (Tashkent, Uzbekistan) Full (100%)
ACEAN.PL Sp. z o.o (Warsaw, Poland) Full (100%)
Entoliva Ltd (Limassol, Cyprus) Full (100%)
ASBIS HELLAS SINGLE MEMBER S.A. (Athens, Greece) Full (100%)
Prestigio Plaza Kft (Budapest, Hungary) Full (100%)
ASBC SRL (Chisinau, Moldova) Full (100%)
Breezy-M SRL (Chisinau, Moldova) Full (100%)
Breezy Poland Sp. z o.o. (Warsaw, Poland) Full (100%)
ASBIS AM LLC (Yerevan, Armenia) Full (100%)
ASBIS Georgia LLC (Tbilisi, Georgia) Full (100%)
ASBIS AZ LLC (Baku, Azerbaijan) Full (100%)
ASBIS s.r.l. (Chisinau, Moldova) Full (100%)
Asbis Africa (Pty) Ltd (Johannesburg, South Africa) Full (100%)
ASBC Morocco s.a.r.l. (Morocco, Casablanca) Full (100%)
Sarovita Ltd (Limassol, Cyprus) Full (100%)
ASBC South Africa (Pty) Ltd (Johannesburg, South Africa) Full (100%)
Asbisc Enterprises Plc is the parent company of the Group. Our subsidiaries are involved in diverse activities related
to the distribution of IT products and components and mobile devices. In particular, our subsidiaries operating under
the ASBIS name are involved in the distribution of IT components, mobile devices, finished products and equipment,
including distribution of products from worldwide leading manufacturers such as Apple, AMD, Intel, Logitech, Dell,
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Lenovo, HP, Kingston, Seagate, IBM, Supermicro, BANG & OLUFSEN, ASUS, Samsung, Microsoft and many other
well-known international suppliers.
Changes in the Group’s structure
During the year ended December 31
st
, 2023, there were the following changes in the structure of the Company and
the Group:
On May 30th, 2023, the Issuer has acquired the 11.15% shares of the company Breezy Trade-In Ltd (Limassol,
Cyprus) for the consideration of USD 130,000. The Issuer holds 91.15% in this subsidiary.
On June 1st, 2023, the Issuer has acquired the 81% shares of the company Asbis Africa Proprietary Limited
(Johannesburg, South Africa) for the consideration of USD 380,000. The Issuer holds 100% in this subsidiary,
being equal to share capital of ZAR 1,000 (USD 50). We acquired this entity to distribute IT products.
On June 2nd, 2023, the Issuer has acquired the 100% shares of the company ASBIS Georgia LLC (Tbilisi,
Georgia). The Issuer holds 100% in this subsidiary, being equal to share capital of GEL 650,000 (USD
250,000). We acquired this entity to distribute IT products.
On June 6th, 2023, the Issuer has acquired the 100% shares of the company ASBIS AM LLC (Yerevan,
Armenia). The Issuer holds 100% in this subsidiary, being equal to share capital of AMD 400,000 (USD 1,033).
We acquired this entity to distribute IT products.
On June 16th, 2023, the Issuer has acquired the 100% shares of the company ASBIS s.r.l. (Chisinau,
Moldova). The Issuer holds 100% in this subsidiary, being equal to share capital of MDL 185,800 (USD
10,419). We acquired this entity to distribute IT products.
On June 20th, 2023, the Issuer has acquired the 100% shares of the company ASBIS AZ LLC (Baku,
Azerbaijan). The Issuer holds 100% in this subsidiary, being equal to share capital of AZN 17,000 (USD
10,000). We acquired this entity to distribute IT products.
On June 20th, 2023, the Issuer has acquired the 100% shares of the company ASBC Morocco s.a.r.l.
(Morocco, Casablanca). The Issuer holds 100% in this subsidiary, being equal to share capital of MAD 10,000
(USD 1,000). We acquired this entity to distribute IT products.
On October 25th, 2023, the Issuer has disposed 100% of the company Asbis PL Sp.z.o.o (Warsaw, Poland)
for zero consideration.
On October 31st, 2023, the Issuer has disposed 100% of the company OOO ‘Asbis’-Moscow (Moscow, Russia)
for the consideration of USD 13,890,000.
On December 21st, 2023, the Issuer has disposed 100% of the company I.O. Clinic Latvia SIA (Riga, Latvia)
for the consideration of USD 3,064.
On December 21st, 2023, the Issuer has acquired 30% of the company I.O.N. Clinical Trading Ltd (Limassol,
Cyprus) for the consideration of USD 99,540. The Issuer holds 100% of this subsidiary.
On October 31st, 2023, the Issuer has acquired 100% shares of the company ASBC South Africa (Pty) Ltd
(Johannesburg, South Africa). The Issuer holds 100% of this subsidiary, being equal to a share capital of SAR
1,855 (USD 100). We acquired this entity to expand our retail business.
On December 25th, 2023, the Issuer has acquired 100% shares of the company Sarovita Ltd (Limassol,
Cyprus). The Issuer holds 100% of this subsidiary, being equal to a share capital of EUR 1,000 (USD 1,106).
We acquired this entity to distribute IT products.
Regional operations
We operate as a one-stop-shop for the desktop PC, server, laptop, tablet PC, smartphones, and software segments.
The management believes that the Company is currently the only IT component and A-branded finished products
distributor that covers substantially all Eastern Europe, as part of a single supply chain with highly integrated sales
and distribution systems. We also have operations in the Baltic States, the Balkans, the Commonwealth of
Independent States countries, the United Arab Emirates, the Middle East and North Africa countries.
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We also provide technical support for all new products that we stock through product line sales managers. Sales
personnel receive internal training and focus groups are established that have an in-depth knowledge of their
respective product lines.
Our sales staff are also trained by our suppliers, such as Apple, AMD, Intel, Logitech, Dell, Lenovo, HP, Kingston,
Seagate, IBM, Supermicro, Bang & Olufsen, Asus, Samsung, Microsoft, and others, because of our status as an
authorized distributor of their products. The Directors consider that this organizational process allows us to provide
added value to our customers and differentiate us from our competitors.
Key markets and regions
Historically, the regions of the Former Soviet Union (FSU) or CIS and Central Eastern Europe (“CEE”) have been
the largest revenue contributors of the Group. This has not changed in 2023. However, due to the war in Ukraine
and in consequence of the sanctions on Russia and Belarus, the contribution of certain regions – like the CEE
region, in total revenues of the Company for 2023 has changed as compared to 2022. Central and Eastern Europe
contribution has grown to 25.84% in 2023 (from 24.30% in 2022), while the FSU region decreased to 51.07% in
2023 (from 52.31% in 2022). The Middle East and Africa contribution has decreased to 13.90% in 2023, from 15.16%
in 2022.
The following table presents a breakdown of our revenue by regions for the years ended 31 December 2023, 2022,
and 2021:
Year ended 31 December
202
3
2022
2021
%
%
%
Former Soviet Union (or CIS)
51.07
52.31 57.66
Central and Eastern Europe
25.84
24.30 21.25
Middle East & Africa
13.90
15.16 10.65
Western Europe
8.41
6.81 8.66
Other
0.78
1.43 1.77
Total revenue
100
100
100
Products
We engage in the sales and distribution of a variety of products including IT components, mobile devices, laptops,
server and mobile building blocks and peripherals to third-party distributors, OEMs, retailers and e-tailers and
resellers. Our customers are located mainly in Central and Eastern Europe, the Former Soviet Union, Western
Europe, North and South Africa and the Middle East.
We engage in the following primary business lines:
• Sales and distribution of IT components and blocks described below that we purchase from a variety of
suppliers such as Intel, AMD, Seagate, and Western Digital
• Value-add distribution (“VAD”) of Apple products in certain Former Soviet Union countries
• Sales of accessories and gaming products (like Logitech)
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• Sales of a wide range of finished products from worldwide manufacturers (Dell, Apple, Acer) as well as
software (Microsoft and antivirus software producers)
• Sales of premium consumer products (i.e., Bang & Olufsen, Loewe)
• Sales of a range of private label products (such as tablet PCs, multiboards, data storage devices, GPS
devices, peripherals, accessories, security solution, products in the field of servers, mass storage, solutions
for data centers, robots (cobots)) with larger volumes and profit potential selected by us and manufactured
by ODM/OEM producers in the Far East under our own private label brands: Canyon, Prestigio Solutions,
Perenio, Aeno, Lorgar and Cron Robotics.
The products that are purchased from suppliers and distributed by us are divided into various categories and are
presented in the table below:
Year ended 31 December
2023
2022
(U.S. $)
Smartphones
1,241,725 949,226
Central processing units (CPUs)
310,191 248,903
PC mobile (laptops)
251,029 253,519
Servers & server blocks
137,739 113,673
Peripherals
129,758 140,754
Audio devices
112,388 117,158
Display products
81,764 67,957
Smart devices
77,351 80,244
Networking products
72,763 71,646
Accessories
72,713 36,704
Hard disk drivers (HDDs)
70,395 87,498
Multimedia
69,106 57,972
Solid-state drivers (SSDs)
67,915 71,166
PC desktop
67,326 54,516
Software
62,204 65,115
Tablets
55,119 48,422
Video cards and GPUs
32,381 32,726
Consumables
29,372 26,142
Other
119,989 166,698
Total revenue
3,061,228 2,690,039
Revenues in 2023 increased by 13.80% as compared to the ones of 2022, despite the ongoing full-scale war in
Ukraine, and unfavorable market conditions.
In 2023, despite the ongoing war in Ukraine but also the deteriorating economic situation, multiple product lines
have recorded an increase.
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In the period of the twelve months of 2023, we have continued the strengthening and development of our portfolio
of IT products and services with technologically advanced solutions, including the division related to robotics - ASBIS
Robotic Solutions (AROS) and trade-in business, Breezy.
We were able to increase our revenues in all major markets of our operation including the already established
markets of Caucasus, Western Europe and Africa. The Company has managed to build strong foundations and
competent teams to achieve strong results.
To meet all customers’ needs, we have increased our warehouse capacity in our distribution centers in Prague,
Johannesburg and Dubai. At the beginning of 2024 the Group also started erecting a new warehouse in
Kazakhstan with an area of approximately 20,000 m2.
Thus, the total warehouse space of ASBIS, including main, regional and local distribution centers, is currently around
63,000 m2.
The chart below indicates trends in sales per product line:
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The chart below indicates trends in smartphones sales.
Sales of smartphones, which contribute to most of our revenues, increased by 30.8% in 2023, as compared to the
ones in 2022 a result of higher demand and sales of a different mix of iPhones, especially new iPhone models.
Private labels: Canyon, Lorgar, Prestigio, Prestigo Solutions, Perenio, Aeno and Cron Robotics
ASBIS fosters the creation, development, and promotion of multiple in-house brands, including Canyon, Lorgar,
Prestigio, Aeno, and Cron Robotics. Our approach involves meticulous market research to understand user needs,
allowing us to tailor each brand's portfolio with the most sought-after and innovative products.
We forge direct partnerships with reputable factories and component suppliers in the Far East, notably in China.
Every product undergoes thorough scrutiny and enhancement by our engineers before entering production, ensuring
rigorous quality control throughout ASBIS. Our stringent quality standards entail meticulous step-by-step testing
before products hit the consumer market, and all ASBIS brand items hold requisite certificates of conformity to
international quality standards.
As of the end of 2023, ASBIS has decided to focus on the growth of each individual brand and split the management.
For this purpose, three separate GMs have been appointed for each of the business units: AENO, CANYON and
Lorgar.
Operating across multiple countries, ASBIS markets products under our proprietary brands, offering enhanced
features and competitive pricing.
Canyon is a brand with 20 years of history.
Canyon offers a diverse portfolio of over 250 items, spanning mobile and PC accessories to wearable tech like
smartwatches and car DVRs. The products cater to urban culture enthusiasts, city dwellers, and innovation seekers.
Canyon encourages the younger generation to embrace their authenticity, irrespective of physical attributes,
ethnicity, or gender, inspiring them to positively impact the world. Their creativity, commitment to eco-responsibility,
tolerance, humanity, and mindful consumption make invaluable contributions to society.
The brand pays special attention to compliance with EU environmental standards. The packaging of almost all
devices is made from recyclable materials, avoiding plastic components, and boasts a vibrant and captivating
aesthetic.
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Under the Canyon gaming sub-brand, we manufacture gaming solutions, including mice, keyboards, and other PC
accessories tailored for novice gamers and those entering the gaming scene. The Canyon Gaming series boasts
special gaming-oriented features such as programmable buttons and onboard memory modules. Devices are
produced in a singular and distinctive style while remaining affordable.
According to GFK reports from 2023, Canyon commands significant market shares in various product categories
across multiple countries, including impressive 25% in kids’ smartwatches in Romania, 3% in wireless mice in the
Czech Republic, 8% in kids’ smartwatches and 4% in wireless mice in Ukraine. Canyon products are currently
available in over 30 countries, with plans for further expansion in Western Europe, Middle East and Africa through
strengthened partnerships with major distributors.
Looking ahead, Canyon's brand strategy for the upcoming year involves developing a product line with unique
designs, which includes smartwatches, wireless chargers, TWS headsets, and Bluetooth speakers. Additionally, the
company plans to expand Canyon business into new categories such as car gadgets and accessories.
www.canyon.eu I www.gaming.canyon.eu
Lorgar is a gaming brand, which offers a unique solution to enhance your gaming experience and gameplay quality
through statistical analysis of your gaming performance. Our system aligns and enhances individual configurations
for your devices and settings based on the analysis of professionals’ gameplay.
Lorgar comprises a high-quality ecosystem of devices for gamers and streamers, packaged in a premium and eye-
catching box, complemented by unique software named WP Platform. Our in-house developers have created a
solution that provides users with simple access to advanced settings, a dedicated community, a statistics module,
and many other features not available in even the software of market leaders.
The brand delivers solutions in the main popular categories, including mice, keyboards, headsets, mousepads, and
gamepads for gamers; web cameras and microphones for streamers; and gaming chairs for those who value
comfortable furniture. Currently, Lorgar is available for purchase in about 200 stores, primarily in Europe, from Great
Britain to Kazakhstan.
Lorgar made its first public appearance at the major European exhibition, IFA 2022, in Berlin. The gaming devices
by Lorgar attracted significant interest from visitors and partners. Our B2B network consists of about 500 partners,
who placed orders for Lorgar devices at least once in the last year.
In the marketing arena, the Brand launched "Lorgar Cup", a unique esports championship by discipline CS: GO,
that brought together more than 1000 gamers from 5 countries and garnered over 20 million online impressions.
Our main goals for 2024 include developing our current portfolio, expanding into new categories and markets,
increasing revenue multiple times, and building a strong community of followers.
www.lorgar.eu
Aeno is a new Small Domestic Appliances brand with a focus on smart devices.
The product portfolio includes cleaning and cooking appliances: air purifiers, heaters, steam mops, vacuum
cleaners, garment steamers, kettles, blenders, electric ovens, Sous-Vide, vacuum sealers, and toothbrushes.
In 2022, Aeno launched an innovative, premium, eco-friendly smart heater that uses combined infrared and
convection technology. The product is one of a kind and has no direct competition in any market. An energy-saving
heater can help customers save up to 50% on energy costs over the entire heating season. The Aeno heater works
without blowing air or raising dust and does not produce pollutants, odors or noise.
The brand is working towards its sustainable vision of smart home appliances that align with consumers' lifestyles,
needs, and values. Aeno's mission: To be a leading brand for consumers and partners in SDA segment due to easy
and intuitive usage experience, sustainability and design, creating new products and trends at all key markets.
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The brand also hopes to contribute to society through its environmentally friendly eco-packaging. All packaging is
made from 100% recyclable materials, does not consist of plastic components, which is line with its strong
commitment to build a sustainable future.
All models of Aeno are created in the same style. The aesthetics of technology are inseparable from its functions:
devices work together in a single ecosystem that provides access to individual settings. The Aeno app allows
consumers to control all home appliances with their smartphones, manually or with voice assistants, and integrate
home appliances into various automation scenarios.
The brand entered the markets of Ukraine, and the Baltics at the start of 2022. However, it soon faced challenges
due to the war and had to expand its focus to include Eastern European countries and find suitable solutions. During
the 2nd quarter of 2022, AENO launched its products in Romania, Poland, Slovakia, the Czech Republic, and
Bulgaria. Then, in the following quarter, it further expanded its reach to include Western Europe, and established
partnerships with major distributors in Germany, Switzerland and Spain.
In 2023, Aeno increased the share of eco-friendly smart devices within its product portfolio and enhance its presence
in Western European markets (all 4 regions), entered the Greece market, Hungary, Kazakhstan.
In 2024, AENO is on a mission to redefine and expand its product categories. With an unwavering commitment to
excellence, Aeno is strategically exploring opportunities in both Western markets and Africa, recognizing the
immense potential these regions hold.
In Western markets, Aeno aims to tap into the sophisticated consumer base, leveraging its cutting-edge technologies
and creative design philosophy to offer products that seamlessly integrate into modern lifestyles. The brand's
dedication to quality and customer satisfaction positions it as a formidable contender in these discerning markets.
Simultaneously, Aeno is setting its sights on the vast and dynamic markets of Africa. Recognizing the rapid economic
growth and evolving consumer preferences in the continent, Aeno is keen on introducing its diverse range of
products tailored to meet the unique needs of the African consumer. By aligning with local trends and embracing
the rich cultural diversity, Aeno aims to establish a meaningful presence in Africa.
Aeno's expansion into these markets is not just a strategic move; it's a testament to the brand's global vision and
commitment to providing innovative solutions to consumers worldwide. As Aeno continues to venture into new
territories, it is poised to become a global household name, setting new benchmarks in product innovation and
customer satisfaction.
https://aeno.com/
Prestigio. Prestigio is an international brand offering a wide range of consumer electronics for home, education,
and office for 20 years. It combines two business directions: Prestigio consumer electronics for the B2C segment
and Prestigio Solutions with cases for B2B partners. This brand sells products in more than 27 countries around the
world.
Prestigio consumer portfolio includes eight categories so far: All-in-one PCs, laptops, TVs, devices based on
TouchOnKeys™, wine accessories, wireless chargers, portable accumulators, and auto electronics, among which
are unique devices developed by its own design bureau.
This brand pays a lot of attention to product design and detail and uses high-quality materials in production. Prestigio
keyboards Click&Touch and Click&Touch 2 even won Red Dot Design Awards in 2020 and 2021 for their outstanding
design.
www.prestigio.com
Prestigio Solutions™ is an international brand of technological solutions for business and education. Prestigio
Solutions™ helps companies to modernize, automate, and simplify their business processes and introduce
advanced technologies at affordable prices. Its sustainable development began in 2013 under the Prestigio brand
with the Multiboard interactive panel.
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In 2021, Prestigio Solutions™ became an independent brand, offering a wide range of high-quality and efficient IT
solutions for the B2B and B2G segments in 28 EMEA countries. It has production, design, and technical facilities in
Europe and China.
Now, the Prestigio Solutions™ brand line includes the MultiBoard interactive panels, Digital Signage AV solutions,
video conferencing systems, business and education software, and RFID solutions.
https://prestigio-solutions.com /
Perenio. Perenio was launched in 2018. Perenio is an innovative, all-around technological company specializing in
the Internet of Things, Smart Home/Office, Smart Health. Over 40 engineering team members (including industrial
designers, hardware and firmware engineers, application and server software programmers) work together to
develop complex solutions and products such as IoT platforms, IoT routers, smart sensors, and smart health
devices. Perenio ecosystem includes its own base software platform and a wide range of connected smart devices.
To expand the product portfolio and prepare for market launches, the team is constantly conducting market research,
developing and testing new product ideas.
www.perenio.com
Cron Robotics. At the end of 2022, the Company launched a new own brand “Cron Robotics” operating under a
new business division – AROS - ASBIS Robotic Solutions. The core business of this division is based on two major
segments – the distribution of collaborative robots (cobots) from leading global brands in the sector as well as our
own robotic platforms under own brand Cron Robotics.
Complex solutions of AROS bring efficiency in areas like:
1. Automation of conveyor operations in production lines
2. Robotic solutions for automation of warehouse operations
3. Welding of metal constructions
4. Robotic cleaning of the commercial spaces
5. Security patrolling by autonomous mobile platforms
6. Delivery cobots and robotic service kiosks
7. Robotic solutions for education
In 2023 AROS has focused mainly on business process set-up, team building, partner network creation, and market
engagement. AROS has created Robotic Sales Teams in 9 countries with 35 experts on board and 3 training and
demo centers in Prague, Athens and Limassol. By the end of 2023, the total pool of AROS Value Added Resellers
has reached 37 companies in 8 countries. The AROS partner portfolio consists of Gausium, AUBO, Dobot, DH-
Robotics, KEENON and CRON Robotics.
https://aros.asbis.com/
Suppliers and Procurement
Our Main Suppliers/Partners
We believe that establishing strong supplier relationships is a critical success factor for our business and have
devoted considerable resources over the years to establishing strong relationships based on mutual trust with our
key suppliers. In that direction, we strive to provide full visibility to our suppliers by reporting to them crucial
information on a daily/weekly basis, including stock levels, sales-out reports by country, thus assisting them in
monitoring customer demand and allowing them time to comprehend and react to specific market peculiarities,
trends and dynamics.
In 2023, a significant portion of our revenues was generated from our ten biggest suppliers. However, the
management believe that we place no reliance on any of our suppliers since we carry for every product category a
wide portfolio of brands.
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Acting as a non-exclusive distributor, we are generally responsible for promoting, marketing, advertising, selling,
and providing training and after-sales support for each supplier's products in the respective markets. A monitoring
mechanism is established by the suppliers to ensure that minimum sales targets are met, pursuant to which we are
responsible for providing our suppliers with various reports, including weekly inventory reports and monthly point of
sales reports.
Price Protection Policy. To reduce distributors' exposure to market price fluctuations, several of our large suppliers
provide in their standard contractual terms for protection from a decline in product prices by allowing such
distributors, including us, to request, within an agreed time frame, reimbursement for inventory in transit or held in
warehouses. This is not, however, usually the case with smaller suppliers, with whom we are more exposed to
potential price variations.
Stock Rotation Policy. Our exposure to the risk of obsolescence of inventory is limited through the stock rotation
policy provided by many of our large suppliers, but not generally under arrangements with smaller suppliers.
In general, under a stock rotation policy, we have the right to return to the supplier, within a predefined time frame,
slow-moving inventory in exchange for credit. In practice, we can return a certain percentage of products we hold
immediately after the end of each quarter, usually based on our sales performance in the preceding quarter.
Return Material Authorization Policy (“RMA”). Subject to the specific provisions of each supplier’s RMA policy,
we have the flexibility to return defective items to our major suppliers in return for either credit, replacements, or
refurbished products.
Procurement Policies
We operate a system of centralized purchasing through our headquarters in Limassol, Cyprus. Country managers
communicate expected sales levels and targets, analyzed by product lines and suppliers, to our Product Line
Managers ("PLMs") who then identify purchasing requirements for the forthcoming three weeks and in turn forward
this information to the Product Marketing Director who verifies and, upon agreement, consolidates the information.
The Product Marketing Director then presents the relevant information to management, holding weekly meetings to
review and approve requirements.
We strive to keep our stock, including stock in transit, for our main product lines at a level of four weeks of sales
revenues, and to cover four to five weeks of sales revenues for other product lines to ensure adequate supply, while
reducing the length of time over which we hold our inventory at our warehouses. Since we maintain a stable supplier
base, there is no need for any formal supplier take-on procedures.
Sales and Marketing
We focus on developing an efficient online sales infrastructure and a rewarding profit commission scheme, as well
as on investing in training our sales managers to instill a thorough understanding of our product offerings with the
goal of enhancing customer satisfaction. We also have the possibility to use some of our main supplier's marketing
funds, to increase our sales and our clients’ satisfaction.
Our marketing department is divided into two groups. The product marketing group establishes pricing policies,
oversees product supply, and communicates with suppliers with regards to the training of PLMs; the channel
marketing group responsible for both central and in-country activities such as public relations, marketing and website
content management.
Our marketing team consists of the Central Marketing Group and the Local Marketing Coordinators, both of which
work in close coordination with suppliers, product managers and sales teams.
Distribution
Distribution model. Our distribution model is based on a system of centralized purchasing operations performed
from our headquarters in Cyprus, which is in direct contact with the suppliers.
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Most suppliers replenish their product stocks at our distribution centers (DC) at set weekly intervals, while some of
the larger ones can deliver their goods at any time, after receiving our purchase orders (POs). Most vendors ship
their products directly to our DCs, absorbing transportation costs, which allows for significant cost savings. Local
subsidiaries place their POs through our online platform called IT4profit.com and receive their goods from one of
our DCs. Alternatively, some products with high value and smaller volumes, such as memory modules, are supplied
directly from vendors' production plants to our local warehouse.
Distribution centers. The distribution network of ASBIS is based on more than 30 in-country stock points - across
CEE, FSU, Gulf, Caucasus, and Africa – replenishes via two master distribution centers, located in Prague (the
Czech Republic) and in Dubai (the United Arab Emirates), and via two regional distribution centers located in Tbilisi
(Georgia) and Johannesburg (South Africa).
The distribution center in Prague can consolidate the orders and fulfil the deliveries to any of ASBIS’s local
distribution centers and subsidiaries, as well as serving customers across the globe. The distribution center in Dubai
mainly serves our operations throughout the Middle East and Eastern and Northern African countries. The
distribution center in Johannesburg serves as a consolidation point for the customers located in South Africa and
across the Sub-Saharan region, while the distribution center in Tbilisi mainly serves the countries in the Caucasus
region.
The total warehouse space of ASBIS Group, including main, regional, and local distribution centers, currently
amounts to approximately 63,000 m2.
The table below presents information on the size and ownership of each of our four distribution centers:
Facility Location Office area (m2) Warehouse area (m2) Total area (m2) Ownership
Prague NEW DCCZ 1,000 13,000 14,000 Leased
Dubai 3,000 5,200 8,200 Owned
Johannesburg –
South Africa
(including 3PL
bonded storage)
800 3,000 3,800 Leased
Tbilisi – Georgia
DCGE Caucasus
Bonded
- 3,000 3,000 3PL
To ensure visibility and bottom-line efficiencies of our warehousing environment, we have connected our warehouse
management system ("WMS") to our EDI system IT4Profit. Thus, when orders are placed in IT4Profit, they are
communicated to our relevant master distribution centers, which can then process the orders for delivery. We are
constantly expanding the usage of the WMS throughout the Group and currently all warehouses are connected. The
Directors believe that the advantages of operating the connected systems include the ability to meet or exceed
shipping commitments, instant visibility of inventory movements, consistency of inventory management records,
reduction of inventory write-offs, and simplicity in shipment planning, replenishment, and storage activities.
In-Country Operations. We operate through 34 local subsidiaries. The customers’ POs in these countries are mainly
fulfilled from the local stock points. In some cases, large-volume clients can be served directly via master DCs. Each
local office has a dedicated logistics team that is responsible for direct shipments to its customers. The central
management at Cyprus Headquarters monitors and assesses the performance of each local logistics center by
using several key performance indicators, among which are: optimal transit time, perfect order fulfillment rate, JIT
deliveries, and optimal transportation costs.
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Distribution Operations Management - "Asbis on IT4Profit"
The Directors believe that our efficient logistics model is one of the key contributors to maintaining our success in
the distribution industry. Each in-country logistics center is focused on continuous improvement with key
performance indicators in place to measure its effectiveness.
IT4Profit is our ultimate supply chain management platform owned and developed by ASBIS, and which we
continuously improve. We use IT4Profit to effectively manage the flow of goods within our distribution network. This
system collaborates and exchanges business data with our key suppliers, master distribution centers, subsidiaries,
and customers.
Among many other functions, IT4Profit provides the following:
• Interconnectivity with suppliers.
• B2B online marketplace, offering the necessary tools for order placement, fulfillment, analytics, and
reporting.
• Online supply chain management system.
• Product management, comprehensive reports, and a balanced scorecard management system.
Disaster Recovery
We have developed and will continue to enhance, an enterprise-wide business plan, incorporating a disaster
recovery plan that will enable us to restore all major procedures from offices around the world.
For our servers, we use Intel, Dell and IBM hardware.
In case of a system failure, spare servers kept at several locations where we operate can be made available within
24 hours. In addition to the daily back-ups that we maintain in Cyprus, we have our storage space resources in
Lithuania for performing daily back-ups. In the event of a system failure, we can restore applications and recover
data. In such an instance, this will enable us to continue operating with electronic means and servicing our clients.
ASP services have a different scheme of high availability.
On the main host in Lithuania, the services have fully duplication hardware according to the active-standby scheme
with full online replication. Additionally, data is being replicated with fifteen minutes delay to the standby host in
Prague and every day a full back-up of each service is taken.
Customers
We served 20,000 customers in approximately 60 countries in 2023. We have no reliance on any single customer,
as our biggest customer is only responsible for around 6.6% of total revenues. Approximately 60% of our total sales
were conducted on-line, based on our IT4Profit platform described above.
Industry overview and competition
Market characteristics
The markets we operate in are characterized by multi-culture environment and significantly lower per capita income
when compared to the Western European markets.
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Despite differences in GDP per person, our markets have been proving quite technology-oriented that consist of
very educated and demanding consumers.
Distributors are a basic component of the industry since the major suppliers of technology would rather deal with
distribution instead of own in-country operational investment.
This is particularly true of the European market, where a diversity of national business practices, as well as cultural
and language differences make it difficult to pursue efficient hardware distribution models without having a strong
local presence. In the Central and Eastern European and Former Soviet Union markets, different currencies, varying
levels of economic development, import regulations and periodic episodes of political and economic instability create
additional impediments to IT distribution not found in Western Europe. At the same time, leading manufacturers of
IT do not want to rely solely on multinational OEMs and world-wide distributors for distribution as this would reduce
producers' bargaining power.
For companies having their own brands business, like us, it is important to find new niches all the time and leverage
on market position and brand recognition. The need for new product lines is very important since we need to timely
replace saturated product segments.
Market trends
The year 2023 was another challenging year for ASBIS, mainly due to the ongoing war in Ukraine but also
unfavorable market conditions.
Thanks to the consistent implementation of our strategy and great determination in action, we have turned over the
difficult past year, and we were able to increase the revenues in all major markets of our operation including the
already established markets of Caucasus, Western Europe and Africa. The Company has managed to build strong
foundations and competent teams to meet consumers’ demands and deliver what we promised to the market –
satisfactory results.
We have been developing not only markets but also further strengthening the development of our portfolio of IT
products and services, including the division related to robotics - ASBIS Robotic Solutions (AROS) - which is
estimated by analysts to be worth several hundred billion dollars in a few years. We have also enhanced our second
life devices division, Breezy, in which we invested significantly and see a very positive development. Breezy
significantly expanded its market presence across its operational countries and forged new trade-in partnerships.
We expect this business unit to significantly contribute to its profitability in the short to medium term.
So, in summary it was a difficult year, but we are very satisfied with ASBIS achievements.
We look into 2024 with optimism. We expect the markets to stabilize, although we realize that this is quite an
optimistic assumption. We believe that inflationary pressures will be lower, and consumer sentiment shall be at an
improved level. In ASBIS we have many areas of growth, such as robotics and already established markets, such
as Central Asia, Western Europe, and Africa. Our aim is clear, and it is organic growth by operational excellence.
Competitive Landscape – traditional distribution
Distribution of IT and mobile devices in Central and Eastern Europe and the Former Soviet Union is fragmented.
Major multinational players who dominate the U.S. and Western European markets are present in a few countries
each.
Many local distributors operate mostly in a single country with only a few operating in more than one country.
Typically, these local players have the largest share in each of the countries.
The Directors consider the Company to be one of the largest distributors of IT components in Eastern Europe, with
a distribution network covering most countries in Eastern Europe, and one of the three largest distributors in the
EMEA region for IT components such as HDDs and CPUs. As no other distributor has a pan-regional presence like
ASBIS, we believe we are very much protected with our current set up and infrastructure.
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We compete with local distributors, but the Directors consider that none of them has comparable geographic
coverage, nor carry as diverse a portfolio as we do. The Directors consider that we do not have one main competitor
but rather a group of competitors varying from country to country.
As some consolidation is seen on the market, and this trend may continue because of the recent world’s financial
crisis and limited abilities of the smaller distributors to finance themselves, ASBIS is ready to benefit from any
opportunities that may arise.
Competitive Landscape – Private Labels
The private labels, Canyon, Prestigio, Prestigio Solutions, Perenio, Aeno, Lorgar and Cron Robotics are competing
with a variety of brands in all markets we operate. The market leaders of the tablet and smartphone segments are
Apple and Samsung. We do not consider our Prestigio brand to be competing with these conglomerates since we
are not considered as an A-brand. We are positioning ourselves as a B-Brand with a limited number of product
offerings and limited countries of presence. Recently the market was flooded by cheap brands, thus we have
decided not to compete on price but rather on quality and decreased our product lines and number of models to
achieve better margins.
We continue our own brand business on a back-to-back basis and expect it to be responsible for a good share of
our total revenues. This will allow us to benefit from its higher profitability, but we try not to carry any other related
risks, such as inventory obsolescence.
Directions of further development
Our strategy is to grow our business and increase profitability by improving our operational efficiency in the
distribution of IT products within all the regions we operate in, upgrading our product portfolio and increasing sales
of our private label products.
We intend to achieve this by:
a) increasing or retaining sales and market share in countries of Central and Eastern Europe, some
particular markets of Former Soviet Union, Western Europe and the Middle East and Africa and
taking advantage of the weaknesses of the competition
b) benefiting from increased Apple business, keep enhancing the IT component business, adding
more third-party products to our portfolio, and improving the gross profit margin
c) further optimizing our private label business
d) further developing of the VAD business
e) decreasing cost of financing
f) engaging in alternative investments and new technologies
g) controlling our cost structure, enhancing operating efficiency and automated processes, including
our online sales channels
h) continuing our successful foreign exchange hedging and other risk management activities
a) Increasing or retaining sales and market share in countries of Central and Eastern Europe, some
particular markets of CIS and the Middle East and Africa and taking advantage of the weaknesses
of the competition
In 2023, despite the ongoing war in Ukraine and the unfavorable geopolitical environment, ASBIS was able to
increase revenues in all major markets of our operation including the already established markets of Caucasus,
Western Europe and Africa.
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We have built very solid foundations which allow us to adapt to the current market situation and generate high
revenues. We look into 2024 with confidence and optimism. We have many areas of growth; we are investing further
in the development of our portfolio of IT products and services with technologically advanced solutions, including
the division related to robotics - ASBIS Robotic Solutions (AROS).
We expect revenues to be supported by new products introduction and growing geographical exposure in Armenia,
Georgia, Azerbaijan, Morocco, Moldova, Western Europe and South Africa.
b) Benefiting from increased Apple business, keep enhancing the IT component business, adding more
third-party products to our portfolio, and improving gross profit margin.
For 2024, we have very ambitious plans to increase our APPLE business. We are currently investing in human
capital to take the unique opportunity granted to us by APPLE and make together another successful year. We plan
to retain our strong market position and strengthen our relationship with customers and suppliers, following the most
challenging but quite successful year. The Company will focus on the acquisition and servicing of large business
projects. The success of the last three years with Data Centers and other projects is expected to be replicated. We
remain focused in all markets of our operation.
For 2024 we expect decent growth in the smartphone segment, both new and used following the dynamic
development of Breezy - the largest Trade-In provider in the countries of its operations.
According to independent analysts, worldwide IT spending is expected to total $5 trillion in 2024, an increase of
6.8% from 2023. 2024 will be the year when organizations invest in planning for how to use GenAI, however IT
spending will be driven by more traditional forces, such as profitability, labor, and dragged down by a continued
wave of change fatigue.
IT services will continue to see an increase in growth in 2024, becoming the largest segment of IT spending for the
first time. Spending on IT services is expected to grow 8.7% in 2024, reaching $1.5 trillion. This is largely due to
enterprises investing in organizational efficiency and optimization projects. These investments will be crucial during
this period of economic uncertainty.
The Company’s business is comprised of both a traditional distribution of third-party products and our own brands.
This allows the Company to deliver healthier gross profit margins when conditions are favorable.
In the traditional distribution business, the Company’s gross profit margins, like those of other distributors of IT
products, are low and the Company expects that in the distribution arm of its business, they will remain low in the
foreseeable future.
Regarding the gross profit margin, the Group’s ability to increase its gross profit margin is of huge importance. To
increase gross margins, the Company has dynamically developed its own brand business as this allows for higher
gross profit margins. In 2022 we have added to our portfolio a new own brand namely “Cron Robotics” operating
under a new business division - AROS - ASBIS Robotic Solutions. The Company is also constantly investing in the
VAD business which delivers higher gross profit margins. The recent trends in gross profit margins showed a steady
decline, however the Group considers the current levels satisfactory and undertakes all efforts to maintain them at
higher levels.
c) Further optimizing of Private Labels
Our private label (branded) product lines, Canyon, Prestigio, Prestigio Solutions, Perenio, Aeno, Lorgar and Cron
Robotics are manufactured by leading Original Equipment Manufacturers (“OEM”) in the Far East (China), often
based on designs developed by us, selected based on their quality and potential for achieving high-profit margins in
our markets. We market and sell these products under our own brands, successfully competing with products of
comparable quality marketed under international brands.
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We believe that keeping a share of private label business in our total revenues at healthy levels will have a positive
impact on the overall profitability, as these products deliver a higher profit margin, compared to international
suppliers' products distributed by us. We will increase such sales though only to the extent this comes with high
gross and net margins and healthy cash flow.
We aim to continue expanding the range of our private label products and strengthening their promotion in our
markets and we expect that this will have a positive impact on our profitability.
d) Further developing of the VAD business
Development of Value-Added-Distribution (VAD) solutions is a key priority of the Group. Following the changes in
the market trends and the significant increase in storage as well as other commercial services leave no room but to
ensure that we are re-enforcing our presence in this segment.
e) Decreasing cost of financing
The distribution business entails a higher need for cash available to support growth. The Group has managed to
raise cash from various financial institutions, however, in certain cases, the cost of this financing is expensive.
The Company has already negotiated improved terms with some of its financiers and is currently undertaking certain
extra steps to further lower its cost of financing. Base rates (US Libor and its successor rates, Euribor, other local
base rates) have recently shown a significant uptrend, and this has significantly increased the Company’s WACD.
The weighted average cost of debt (WACD) has increased to 11.9% in 2023, as compared to 10.5% in 2022.
f) Engaging in alternative investments and new technologies
In the last two years ASBIS has made strategic investments, investing in companies from the biotechnology sector,
operating in a growing market and at an early stage of development like: EMBIO Diagnostics Ltd, Promed Bioscience
Ltd, RSL Revolutionary Labs Ltd and Theramir Ltd.
Scientific innovation is the path to a healthier society and ASBIS has innovation in its DNA. So, we have decided to
invest in companies that can play an important role in our life and can bring real value to our lives and improve their
quality.
Given the applicability of innovative products of the above-mentioned companies, in both professional (B2B) and
individual (B2C) settings, we see these investments representing new streams of growth for ASBIS.
g) Controlling our cost structure, enhancing operating efficiency and automated processes, including
online sales channels
We continue to focus on improving our operating efficiency and enhancing our automated processes, with a view to
controlling operating expenses and increasing our profit margins.
In 2023, SG&A expenses grew by 19.63% YoY mainly due to investments made by the Company in the development
of new business lines and geographical expansion. These expenses also include a provision for bad debt of USD
3.0 million, relating to the disposal of our subsidiary in Russia and costs for the support of Ukraine of around USD
2 million.
We consider cost control to be a significant factor towards delivering improved results going forward and it is very
important that the Group is undertaking all necessary actions to scale down its expenses should there is a decrease
in revenues and gross profit.
h) Continuing our successful foreign exchange hedging and other risk management activities
In 2023 our FX hedging strategy has successfully shielded our results. However, since there is no such thing as
perfect hedging, the currency environment needs to be closely monitored and FX hedging strategies updated as
soon as new developments are visible in the markets.
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Managing credit risk and transactional risk is also part of our success path. In the transactional risk we also include
the ability of the Group to properly manage its compliance with all rules and regulations imposed by the relevant
authorities in sanctioned territories.
Real property and other tangible assets
The table below presents our main real properties:
Area (m
2
)
Name of company
Country
Land
Office
Warehouse
Total
ASBISc Enterprises Plc
Cyprus
10,520 10,130 1,429 22,079
Asbis Ukraine Limited
Ukraine
- 2,660 334 2,994
ASBC Ltd
Belarus
1,330 1,056 - 2,386
Asbis SK sp.l. sr.o.
Slovakia
13,377 2,197 4,461 20,035
Asbis Middle East FZE
United Arab Emirates
12,681 2,933 5,163 20,777
CJSC ASBIS (Asbis BY)
Belarus
- 1,205 1,030 2,235
ASBIS Kazakhstan LLP Kazakhstan 110,000 2,990 21,946 134,936
ASBIS Bulgaria Ltd
Bulgaria
3,735 - - 3,735
TOTAL 209,177
Our remaining premises are under lease.
Information regarding real property owned by us and relevant encumbrances is provided in the annual consolidated
audited financial statements included elsewhere in this report. Other than this real property, we do not hold any
other significant tangible assets.
Intellectual Property
We have registered (or registration is pending) the following trademarks, including their word and graphical
representations in color and design.
a. ASBIS
b. CANYON, CANYON LED
c. PRESTIGIO, PRESTIGIO SOLUTIONS and its product group trademarks, which include Nobile, Cavaliere,
Signore, Visconte, Emporio, Prestigio Multi-Pad and Prestigio Grace
d. PrestigioPlaza
e. Lorgar, Lorgar WP Gameware, GAMESPERIENCE
f. Perenio, Perenio Ionic Shield, Perenio Smart Health, Perenio Making Life Easy
g. AENO
h. TopDevice
i. iSpace
j. iON
k. iSupport
l. BREEZY
m. MacSolutions
n. Joule
o. ACEAN
p. AROS
q. CRON Robotics
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Most of these trademarks are registered and protected in the countries in which we operate, both under international,
regional, and national registration schemes and systems, to the extent and other terms set forth in the provisions
based on which they were registered. The registrations are mostly in the international class of goods 09 (computers
and IT products), and related classes of services 35, 37 (sales, distribution, repair).
In addition, we have registered several domain names for ASBIS, E.M. Euromall, Canyon, Perenio, Prestigio,
Breezy, Acean and other private labels.
Insurance
We hold two different types of insurance: products or “cargo” insurance and credit insurance.
Products insurance. We have a products insurance policy with M.N. Leons B.V. We assume the risks of products
we receive from our suppliers only upon transfer of legal title, and thereafter.
Under our product insurance policy, covering twelve months and ending 1 January 2022 with tacit renewal thereafter
our products are insured for a maximum of U.S. $ 4,000 from any single shipment of computers, monitors and
supplies of accessories transported from country to country or warehouse to warehouse. Typical shipment values
for each warehouse are as follows: Czech Republic: U.S. $ 120 and the Middle East: U.S. $ 140.
Furthermore, goods held in storage at both distribution centers (i.e., both the Czech Republic and Middle East)
and certain local warehouses are insured up to US $ 10,000.
The aforementioned insurance coverage approximates the typical value of stock held in each warehouse.
Credit Insurance: We have a major credit insurance policy in place with Atradius Credit Insurance N.V. reducing
our exposure in respect to possible non-recoverability of our receivables. The insurers have agreed to indemnify us
for losses due to bad debts in respect of goods delivered and services performed during the policy period, which
covers a term of twelve months, subject to annual renewal. We insured about 80% of our 2023 revenues.
The major insurance policy is held with Atradius Credit Insurance N.V., which was signed in April 2008 and is
renewed every year. It covers Asbisc Enterprises PLC, Asbis Middle East FZE, Asbis D.o.o. (Slovenia), Asbis Doo
(Serbia), ASBIS Romania, ASBIS Bulgaria, E.M Euromall, ASBIS Poland, ASBIS CZ Republic, ASBIS Kazakhstan
and ASBIS Hungary. Each buyer, primarily our large customers, who have an approved credit limit is insured for
coverage amounting to 85%. Atradius also offers us a discretionary credit limit up to a maximum of U.S. $ 60.
We also hold stand-alone credit insurance policies with Atradius in Slovakia covering the receivables of the country.
We use both Coface SA and Euler Hermes in cases Atradius do not grant sufficient limits.
ITEM 3. OPERATING AND FINANCIAL REVIEW AND PROSPECTS
The following Management's discussion and analysis of our financial position and results of operations review our
historical financial results as at, and for the years ended, 31 December 2023 and 2022. The reader shall read the
following discussion in conjunction with our audited financial statements as of 31 December 2023 and 2022,
including the accompanying notes thereto, which are included elsewhere in this Annual Report, and have been
prepared in accordance with IFRS and audited by KPMG Limited, our independent auditors and in conjunction with
the information set forth under "Risk Factors" and "Information on the Company".
Unless we indicate otherwise, references to U.S. $, PLN and € are in thousands except for share and per share
data.
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Summary
The principal events of 2023 were as follows:
• Revenues in 2023 increased by 13.80% to U.S. $ 3,061,228 from U.S. $ 2,690,039 in 2022.
• Gross profit in 2023 increased by 10.73% to U.S. $ 252,269 from U.S. $ 227,831 in 2022.
• Gross profit margin in 2023 reached 8.24% from 8.47% in 2022.
• Selling expenses in 2023 increased by 19.54% to U.S. $ 82,745 from U.S. $ 69,217 in 2022.
• Administrative expenses in 2023 grew by 19.76% to U.S. $ 57,031 from U.S. $ 47,620 in 2022. These expenses
include costs for the support of Ukraine.
• EBITDA in 2023 was positive and reached U.S. $ 120,166 in comparison to U.S. $ 116,751 in 2022.
• The net profit after tax in 2023 amounted to U.S. $ 52,956 as compared to U.S. $ 75,870 in 2022. The net profit
after tax in 2023 was negatively affected by the release of the currency translation reserve and an impairment
loss of receivables relating to the disposal of our subsidiary in Russia, following the Company's decision to leave
the Russian market. Without the one-off events, the net profit after tax would have been approximately U.S. $
78,010 – the highest in the Company’s history.
Principal Factors Affecting Financial Condition and Results of Operations
In 2023, the Company’s results of operations have been affected and are expected to continue to be affected by
several factors.
Below we present all factors that have affected and continue to affect our business:
The war in Ukraine
The war between Russia and Ukraine (which were, before the war, the two major markets for ASBIS) constituted a
major disruption in demand in both countries, the whole region and the globe. The war has created the most
unfavorable business environment in the whole region. Despite the large geographical presence of the Group, it is
not possible to totally weather the impact of a full-scale war between these two countries. The Company considers
the situation critical, and it is extremely difficult to assess how this will further evolve. The Company ceased any
business development in Russia, following all sanctions imposed by suppliers and other international organizational
bodies. The Group has decided to totally divest from Russia and has completed the sale of its subsidiary in the
country in October 2023.
The Group, being fully compliant with the directions given by the EU and its suppliers, has undertaken all necessary
actions to prevent sales of sanctioned products to sanctioned entities and/or individuals.
The in-country financial conditions affecting our major markets, gross profit and gross profit margin.
Throughout the years of operation, the Company has from time to time suffered from specific in-country problems,
emanating from the deterioration of specific countries’ financial situation, due to several issues including but not
limited to political instability. We need to monitor any developments, react fast and weather every risk showing up
in a specific market to secure our results.
The Company needs to keep in mind that different in-country problems might arise at any time and affect our
operations. Even though we have improved our procedures, we cannot be certain that all risks are mitigated.
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Currency fluctuations
The Company’s reporting currency is the U.S. dollar. In the 12M of 2023 a good portion of our revenues was
denominated in U.S. dollars, while the balance is denominated in Euro, UAH, KZT and other currencies, certain of
which are linked to the Euro. Our trade payable balances are principally (about 85%) denominated in U.S. dollars.
In addition, approximately half of our operating expenses are denominated in U.S. dollars and the other half in Euro
or other currencies, certain of which are linked to the Euro.
As a result, reported results are affected by movements in exchange rates, particularly in the exchange rate of the
U.S. dollar against the Euro and other currencies of the countries in which we operate, including the Ukrainian
Hryvnia, the Czech Koruna, the Polish Zloty, the Croatian Kuna, the Kazakhstani Tenge and the Hungarian Forint.
In particular, a strengthening of the U.S. dollar against the Euro and other currencies of the countries in which we
operate may result in a decrease in revenues and gross profit, as reported in U.S. dollars, and foreign exchange
loss relating to trade receivables and payables, which would have a negative impact on our operating and net profit
despite a positive impact on our operating expenses.
On the other hand, a devaluation of the U.S. dollar against the Euro and other currencies of the countries in which
we operate may have a positive impact on our revenues and gross profit, as reported in U.S. dollars, which would
have a positive impact on operating and net profit despite a negative impact on our operating expenses. In addition,
foreign exchange fluctuation between the U.S. dollar and the Euro or other currencies of the countries in which we
operate may result in translation gains or losses affecting foreign exchange reserve. Furthermore, a major
devaluation or depreciation of any such currencies may result in a disruption in the international currency markets
and may limit the ability to transfer or to convert such currencies into U.S. dollars and other currencies.
Despite all efforts of the Company, there can be no assurance that fluctuations in the exchange rates of the Euro
and/or other currencies of the countries in which we operate against the U.S. dollar will not have a material adverse
effect on our business, financial condition and results of operations. Having decided to completely divest from
Russia, the Group faced a crystallization of the respective currency translation reserve.
Competition and price pressure
The IT distribution industry is a highly competitive market, particularly with regards to products selection and quality,
inventory, price, customer services and credit availability and hence is open to margin pressure from competitors
and new entrants.
The Company competes at the international level with a wide variety of distributors of varying sizes, covering
different product categories and geographic markets. In particular, in each of the markets in which the Company
operates it faces competition from:
• International IT and CE distributors with presence in all major markets we operate
• Regional IT and CE distributors who cover mostly a region but are quite strong
• Local distributors who focus mostly on a single market but are very strong
• International IT and mobile phones brokers, who sell opportunistically in any region and/or country
Competition and price pressures from market competitors and new market entrants may lead to significant
reductions in the Company’s sales prices.
Such pressures may also lead to a loss of market share in certain of the Group's markets. Price pressures can have
a material adverse effect on the Company’s profit margins and its overall profitability, especially because its gross
profit margins, like those of most of its competitors, are low and sensitive to sales price fluctuations.
Gross profit margins sustainability
The Company’s business is comprised of both a traditional distribution of third-party products and our own brands.
This allows the Company to deliver healthier gross profit margins when conditions are favorable.
In the traditional distribution business, the Company’s gross profit margins, like those of other distributors of IT
products, are low and the Company expects that in the distribution arm of its business, they will remain low in the
foreseeable future.
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Increased competition arising from industry consolidation and low demand for certain IT products may hinder the
Company’s ability to maintain or improve its gross margins.
A portion of the Company’s operating expenses is relatively fixed, and planned expenditures are based in part on
anticipated orders that are forecasted with limited visibility of future demand.
As a result, the Company may not be able to reduce its operating expenses as a percentage of revenue to mitigate
any reductions in gross margins in the future. In addition to the above, recent increases in gross profit margins may
no longer be sustainable given the oversupply in the markets and decreased demand.
To increase gross margins, the Company has dynamically developed its own brand business as this allows for
higher gross profit margins in recent months.
At the end of 2022, we have added to our portfolio a new own brand namely “CRON Robotics” operating under a
new business division - AROS - ASBIS Robotic Solutions. The Company is also constantly investing in the VAD
business which delivers higher gross profit margins.
Inventory obsolescence and price erosion.
The Company is often required to buy components and finished products according to forecasted requirements and
orders of its customers and in anticipation of market demand. The market for IT finished products and components
is characterized by rapid changes in technology and short product shelf life, and, consequently, inventory may
rapidly become obsolete. Due to the fast pace of technological changes, the industry may sometimes face a
shortage or, at other times, an oversupply of IT products.
As the Company increases the scope of its business and of inventory management for its customers, there is an
increasing need to hold inventory to serve as a buffer in anticipation of the actual needs of the Company’s customers.
This increases the risk of inventory becoming devalued or obsolete and could affect the Company’s profits either
because prices for obsolete products tend to decline quickly, or because of the need to make provisions or even
write-offs.
In an oversupply situation, other distributors may elect to proceed with price reductions to dispose of their existing
inventories, forcing the Company to lower its prices to stay competitive. The Company’s ability to manage its
inventory and protect its business against price erosion is critical to its success.
Several of the Company’s most significant contracts with its major suppliers contain advantageous contract terms
that protect the Company against exposure to price fluctuations, defective products and stock obsolescence.
Credit risk.
The Company buys components and finished products from its suppliers on its own account and resells them to its
customers. The Company extends credit to some of its customers at terms ranging from 7 to 90 days or, in a few
cases, to 120 days.
The Company’s payment obligations towards its suppliers under such agreements are separate and distinct from its
customers' obligations to pay for their purchases, except in limited cases where the Company’s arrangements with
its suppliers require the Company to resell to certain resellers or distributors. Thus, the Company is liable to pay its
suppliers regardless of whether its customers pay for their respective purchases.
As the Company’s profit margin is relatively low compared to the total price of the products sold, in the event where
the Company is not able to recover payments from its customers, it is exposed to financial liquidity risk. The
Company has in place credit insurance which covers such an eventuality for most of its revenue.
Despite all efforts to secure our revenues, certain countries remained non-insured (Ukraine), therefore it is very
important for us to ensure that we find other sources of securities which help us minimize our credit risk. The Board
of Directors decided to enhance the Company’s risk management procedures.
These do not guarantee that all issues will be avoided, however, they have granted the Company with confidence
that is able to weather any possible major credit issue that may arise.
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Worldwide financial environment
The overall financial environment and the economic landscape of each country we operate in always play a
significant role in our performance. The revised strategy and adaptation to the new environment, i.e., by rebuilding
our product portfolio, has paid off in terms of profitability and sales in the last three years.
We believe that the Company is much more flexible and better prepared to weather any obstacles that may arise
due to the worldwide financial environment, however, we can see that a full-scale war in our territories may bring
unprecedented consequences.
In addition to the above, it has been recently noticed that multiple raw materials and finished product prices have
risen dramatically, and this might significantly impact demand generation. This must be closely monitored, and the
Company is alerted to manage any market anomalies.
Seasonality
Traditionally the IT distribution industry in which the Company operates experiences high demand during the months
prior to and leading up to the Christmas and New Year holiday period. In particular, IT distributors’ demand tends to
increase in the period starting from September till the end of the year.
Development of own brand business
The Company’s strategy is to focus more on profitability than on revenues, thus we continue to develop the own-
brand business that allows for higher gross profit margins. This includes the development of tablets and other
product lines that are sold under the Prestigio and Canyon brands in all regions of the Company’s operations. The
Company has also invested in another own brand, Perenio - which includes sales of smart-home, smart-security
sensors and other products.
The results from Perenio brand were not the ones we expected to see; thus, we currently undertake certain
corrective actions.
At the end of 2021, the Company launched two new own brands: Lorgar - a brand of ultimate accessories for gamers
and AENO - a brand of smart home appliances.
In Q4 2022, the Company has launched a new own brand “CRON Robotics” operating under a new business division
– AROS - ASBIS Robotic Solutions. The core business of this division is based on two major segments – the
distribution of collaborative robots (cobots) from leading global brands in the sector as well as own robotic platforms
under own brand.
In July 2023, ASBIS presented the first version of its beer-serving robotic kiosk in Limassol.
To keep quality under control and achieve the maximum possible gross profit margins, the Company’s Directors
have decided to operate under a “back-to-back scheme”. This implies that orders are placed with ODMs, only if they
are in advance confirmed by customers.
The Company is undertaking several quality control measures to mitigate this risk but given the volumes and the
number of factories used to produce these products, these controls might not be sufficient. Moreover, competition
has already been intensified and the Company may not be able to sustain its profitability levels.
Despite the Company’s efforts, there can be no assurance of a similar development pace in the own-brand business
in future periods. This is because there may be a significant change in market trends, customer preferences or
technology changes that may affect the development of own-brand business and, therefore, its results.
The high cost of debt
The distribution business entails a higher need for cash available to support growth. The Group has managed to
raise cash from various financial institutions, however, in certain cases, the cost of this financing is expensive.
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The Company has already negotiated improved terms with some of its financiers and is currently undertaking certain
extra steps to further lower its cost of financing. Base rates (US Libor and its successor rates, Euribor, other local
base rates) have recently shown a significant uptrend, and this has significantly increased the Company’s WACD.
Environmental and Climate Changes
In terms of transition risks that arise from the transition to a low-carbon and climate-resilient economy, we may face
the following risks: policy and legal risks (there may be laws or policies put in place that may require a more
environmentally cautious approach to raw materials and land use), technology risks (changes in technology used to
produce IT equipment) – these both may lead to growing prices in terms of IT equipment and solutions.
We may also face market risk with consumers switching to more energy-efficient appliances or making more savvy
purchases to limit their own impact on the environment. We will monitor these trends and introduce the latest
hardware for our customers.
We may also face reputational risks with difficulties in attracting customers, business partners and employees if we
do not take strong enough actions against climate change. In terms of physical risks resulting from climate changes,
we may face both acute and chronic risks.
Acute physical risks may arise from weather-related events in the form of floods, fires or droughts that may damage
factories in certain regions, cause factories to limit or temporarily stop their production or disrupt our supply chain in
other ways. These may result in temporary limitations in our product offering or rising prices of hardware and
components. Chronic physical risks (i.e., risks that may result from long-term changes in the climate) may also affect
ASBIS. Growing temperatures worldwide may cause a need for more temperature-resilient hardware and appliances
and may also result in more hardware malfunctions that may increase warranty claims.
Financial position and results of operations / in U.S.$ thousand/
Year ended December 31, 2023, compared to year ended December 31, 2022
Revenues: Revenues in 2023 increased by 13.8% to U.S. $ 3,061,228 from U.S. $ 2,690,039 in 2022, despite the
inflationary pressures, and the uncertain geopolitical environment.
The table below sets a breakdown of revenues, by product lines, for the years ended 31 December 2023 and 2022:
2023 2022
U.S. $ thousand % of total revenues
U.S. $ thousand
% of total
revenues
Smartphones 1,241,725 40.56% 949,226 35.29%
Central processing units
(CPUs)
310,191 10.13% 248,903 9.25%
PC mobile (laptops) 251,029 8.20% 253,519 9.42%
Servers & server blocks 137,739 4.50% 113,673 4.23%
Peripherals 129,758 4.24% 140,754 5.23%
Audio devices 112,388 3.67% 117,158 4.36%
Display products 81,764 2.67% 67,957 2.53%
Smart devices 77,351 2.53% 80,244 2.98%
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Networking products 72,763 2.38% 71,646 2.66%
Accessories 72,713 2.38% 36,704 1.36%
Hard disk drives (HDDs) 70,395 2.30% 87,498 3.25%
Multimedia 69,106 2.26% 57,972 2.16%
Solid-state drives (SSDs) 67,915 2.22% 71,166 2.65%
PC desktop 67,326 2.20% 54,516 2.03%
Software 62,204 2.03% 65,115 2.42%
Tablets 55,119 1.80% 48,422 1.80%
Video cards and GPUs 32,381 1.06% 32,726 1.22%
Consumables 29,372 0.96% 26,142 0.97%
Other 119,989 3.92% 166,698 6.20%
Total revenue 3,061,228 100% 2,690,039 100%
In 2023, despite the unfavorable market conditions, ASBIS has not slowed down. On the contrary, it has steamed
up its engine and continued its strategy of focusing on profitability and developing its markets and products portfolio.
We have continued the strengthening and development of our portfolio of IT products and services with
technologically advanced solutions, including the division related to robotics - ASBIS Robotic Solutions (AROS).
This was possible because ASBIS remains the distributor of first choice for many worldwide suppliers.
During 2023, ASBIS has also enhanced its second life devices division, Breezy in which we invested significantly
and see a very positive development. The Group expects this business unit to significantly contribute to its
profitability in the short to medium term.
In 2023, multiple of ASBIS’s product groups have noticed a significant growth on a year-on-year basis. We
experienced strong growth rates in CPUs, accessories, and servers & server blocks. These categories were leaders
in terms of growth in absolute numbers.
The chart below indicates the trends in sales per product line:
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In 2023 the main drivers in terms of revenues were smartphones, CPUs and laptops.
On a year-on-year basis revenues from CPUs increased by 24.6% in 2023. Sales of HDDs decreased by 19.5% in
2023. In 2023 revenues from software decreased by 4.5%. The laptop business slightly decreased by 1.0% in 2023.
Revenues from SSDs decreased by 4.6% in 2023. PC desktop business grew by 23.5% in 2023. The tablet segment
grew by 13.8% in 2023..
From “Other” product lines, in 2023 a positive trend has been noticed in accessories (+98.1%) and display products
(+20.3%).
As regards our own brands, the Company’s intention is to continue developing its seven own brand sales to the
extent they bring targeted gross margin and deliver healthy cash flow.
The chart below indicates the trends in smartphones sales:
Sales of smartphones, which contribute to most of our revenues, increased by 30.8% in 2023, as compared to the
ones in 2022 a result of higher demand and sales of a different mix of iPhones, especially new iPhone models.
The table below presents a geographical breakdown of sales for the years ended 31 December 2023 and
2022:
2023 2022
U.S. $
thousand
% of total
revenues
U.S. $
thousand
% of total
revenues
Former Soviet Union 1,563,280 51.07% 1,407,196 52.31%
Central and Eastern
Europe
791,026 25.84% 653,643 24.30%
Middle East and Africa 425,652 13.90% 407,717 15.16%
Western Europe 257,372 8.41% 183,088 6.81%
Other 23,898 0.78% 38,395 1.43%
Total 3,061,228 100% 2,690,039 100%
Graphics
46
The table below presents a country-by-country breakdown of sales for our most important markets for the
years ended 31 December 2023 and 2022:
2023
2022
Country Sales in U.S.
$ thousand
% of total
revenues
Country Sales in U.S.
$ thousand
% of total
revenues
1. Kazakhstan 697,111 22.77% Kazakhstan
584,849
21.74%
2. Ukraine 411,943 13.46% Ukraine
326,143
12.12%
3.
United Arab
Emirates
321,077 10.49%
United Arab
Emirates
312,705
11.62%
4. Slovakia 283,247 9.25% Slovakia
239,905
8.92%
5. Azerbaijan 139,260 4.55% Russia
134,520
5.00%
6. Germany 128,056 4.18% Czech Republic
97,583
3.63%
7. Poland 125,471 4.10% Azerbaijan
91,414
3.40%
8. Czech Republic 109,183 3.57% Poland
85,780
3.19%
9. Georgia 100,152 3.27% Georgia
80,942
3.01%
10. Romania 70,053 2.29% Germany
79,540
2.96%
Gross Profit: Gross profit in 2023 increased by 10.73% to U.S. $ 252,269 from U.S. $ 227,831 in 2022.
Graphics
47
Gross profit margin (gross profit as a percentage of revenues): Gross profit margin in 2023 decreased to 8.24%
from 8.47% in 2022.
Selling Expenses: largely comprise of salaries and benefits paid to sales employees (sales, marketing, and logistics
departments), marketing and advertising fees, commissions, and travelling expenses. Selling expenses usually grow
together (but not in-line) with growing sales and, most importantly, gross profit. In 2023, the increase in selling
expenses has encompassed all new investments in human capital in several business units and a provision for bad
debt of around USD 3.0 million, relating to the disposal of our subsidiary in Russia.
Selling expenses in 2023 increased by 19.54% to U.S. $ 82,745 from U.S. $ 69,217 in 2022.
Administrative Expenses: largely comprised of salaries and wages of administrative personnel.
Administrative expenses in 2023 increased by 19.76% to U.S. $ 57,031 from U.S. $ 47,620 in 2022. These expenses
include costs for the support of Ukraine.
Graphics
48
EBITDA: EBITDA in 2023 was positive and amounted to U.S. $ 120,166, in comparison to U.S. $ 116,751 in 2022.
Profit After Taxation: The net profit after tax in 2023 was negatively affected by the disposal of our subsidiary in
Russia lowering it by around U.S. $ 25 million. It is worth underlining that without considering the one-offs, ASBIS
would achieve a net profit for 2023 of USD 78 million, as assumed in its 2023 forecast.
In 2023 the net profit after tax was U.S. $ 52,956, in comparison to U.S. $ 75,870 in 2022.
Liquidity and Capital Resources
The Company has in the past funded its liquidity requirements, including ongoing operating expenses and capital
expenditures and investments, for the most part, through operating cash flows, debt financing and equity financing.
Cash flow for the twelve months of 2023 has been impacted by revenue growth and improved working capital
utilization. Nevertheless, cash from operations in 2023 was positive and has significantly improved year–on–year
by more than USD 101 million.
The following table presents a summary of cash flows for the twelve months ended December 31
st
, 2023, and 2022
(in U.S. $ thousand):
Twelve months ended December 31
st
2023 2022
Net cash inflows/(outflows) from operating
activities
45,411 (56,048)
Net cash outflows from investing activities (11,710) (11,075)
Net cash (outflows)/inflows from financing
activities
(17,747) 8,555
Net increase/(decrease) in cash and cash
equivalents
15,954 (58,568)
Graphics
49
Net cash inflows from operations
Net cash inflows from operations amounted to U.S. $ 45,411 for the twelve months of 2023, as compared to outflows of
U.S. $ 56,048 in the corresponding period of 2022.
Net cash outflows from investing activities.
Net cash outflows from investing activities were U.S. $ 11,710 for the twelve months of 2023, compared to outflows of
U.S. $ 11,075 in the corresponding period of 2022.
Net cash outflows from financing activities
Net cash outflows from financing activities were U.S. $ 17,747 for the twelve months of 2023, compared to inflows of
U.S. $ 8,555in the corresponding period of 2022.
Net increase in cash and cash equivalents
As a result of improved cash flows from operating activities (mainly owed to improved working capital management)
cash and cash equivalents have increased by U.S. $ 15,954, as compared to a decrease of US$ 58,568 in the
corresponding period of 2022.
Capital Resources
The Company’s management believe that the Company has ample resources to finance its operations, as described
in the audited financial statements attached to this annual report, going forward.
As of 31 December 2023, we had a total short-term and long-term debt (excluding amounts due to factoring creditors
and lease liabilities) of U.S. $ 141,456 (including U.S. $ 435 of current maturities due within one year from 31st,
December 2023), compared to U.S. $ 141,169 (including U.S. $ 553 of current maturities, as of 31 December 2022).
The table below presents our principal debt facilities as at 31 December 2023:
Entity Creditor Type of, facilities
Credit limit Currency Rate US$
Equivalent
Valid
from
Valid till
ASBIS Middle East
FZE
NATIONAL BANK OF
FUJAIRAH
Short Term
Loan/Revolving
Loan
27 000 000
AED 3,67 7 346 939
1/06/2022
non term
ASBIS Middle East
FZE
EMIRATES ISLAMIC BANK
PJSC
Short Term
Loan/Revolving
Loan
18 000 00
AED 3,67 4 897 959 25/10/2022
non term
ASBIS Middle East
FZE
ABU DHABI COMMERCIAL
BANK (ADCB)
Short Term
Loan/Revolving
Loan
15 000 000
AED 3,67 4 081 633 08/08/2023
non term
ASBIS Middle East
FZE
NATIONAL BANK OF
FUJAIRAH
Factoring with
recourse
3 000 000
AED 3,67
816 327 01/06/2022
non term
ASBIS Middle East
FZE
NATIONAL BANK OF
FUJAIRAH
Factoring with
recourse
8 000 000
AED 3,67 2 176 871 01/06/2022
non term
ASBIS Middle East
FZE
EMIRATES ISLAMIC BANK
PJSC
Factoring with
recourse
3 500 000
AED 3,67
952 381
01/03/2023
non term
ASBIS Middle East
FZE
EMIRATES ISLAMIC BANK
PJSC
Factoring with
recourse
3 500 000
AED
3,67
952 381
01/04/2023
31/12/2023
ASBIS Middle East
FZE
ABU DHABI COMMERCIAL
BANK (ADCB)
Factoring with
recourse
3 000 000
AED 3,67
816 327
08/08/2023
non term
ASBIS Middle East
FZE
ABU DHABI COMMERCIAL
BANK (ADCB)
Factoring with
recourse
2 000 000
AED 3,67
544 218
08/08/2023
non term
"ASBC" LLC (AM) //
AM-119 (Caucasus)
iSpace AAR-
>APR/APP
BYBLOS BANK ARMENIA
CJSC
Overdraft 195 000 000
AMD 404,79
481 731 18/10/2023
14/10/2025
Graphics
50
ASBC MMC, AZ
Az119 APR iSpace
PASHA BANK Short Term
Loan/Revolving
Loan
1 000 000 AZN 1,70 588 235 23/11/2023
17/11/2024
ASBIS d.o.o. (BA) RAIFFEISEN BANK D.D.
BOSNA I HERCEGOVINA
BGs/SBLCs 300 000
KM 1,76 169 493 17/01/2020
30/06/2027
ASBIS d.o.o. (BA) ASA BANKA D.D. SARAJEVO
BGs/SBLCs 300 000 KM
1,76
169 493
20/06/2019
31/12/2027
ASBIS d.o.o. (BA) ASA BANKA D.D. SARAJEVO BGs/SBLCs 50 000 KM
1,76
28 249
01/09/2023
31/12/2027
ASBIS d.o.o. (BA) ASA BANKA D.D. SARAJEVO Long Term Loan
523 464
KM
1,76
295 745 26/12/2023
31/12/2027
ASBIS d.o.o. (BA)
ASA BANKA D.D. SARAJEVO Short Term
Loan/Revolving
Loan
500 000 KM 1,76 282 489 10/12/2020
31/12/2027
ASBIS d.o.o. (BA) ASA BANKA D.D. SARAJEVO
Short Term
Loan/Revolving
Loan
1 000 000
KM 1,76 564 978 21/04/2021
31/12/2027
ASBIS d.o.o. (BA) RAIFFEISEN BANK D.D.
BOSNA I HERCEGOVINA
Short Term
Loan/Revolving
Loan
1 500 000 KM 1,76 847 466 01/01/2022
31/12/2024
ASBIS d.o.o. (BA)
ASA BANKA D.D. SARAJEVO
Short Term
Loan/Revolving
Loan
1 000 000 KM 1,76
564 978 26/08/2022
31/12/2027
ASBIS d.o.o. (BA) UNICREDIT BANK Short Term
Loan/Revolving
Loan
1 200 000 KM
1,76 677 973 21/07/2023
09/08/2024
ASBIS d.o.o. (BA) RAIFFEISEN BANK D.D.
BOSNA I HERCEGOVINA
Overdraft 300 000 KM 1,76 169 493 17/01/2020
31/12/2024
ASBIS d.o.o. (BA) UNICREDIT BANK Overdraft 400 000 KM 1,76 225 991 01/09/2022
09/08/2024
ASBIS BULGARIA
LIMITED
UNICREDIT BULBANK AD
Overdraft 5 500 000
BGN 1,76 3 107 380 01/10/2022
29/10/2024
ASBIS BULGARIA
LIMITED
DSK BANK Factoring with
recourse
2 700 000 BGN 1,76 1 525 441 01/06/2023
30/05/2024
ASBIS BULGARIA
LIMITED
UNITED BULGARIAN BANK
(UBB)
Factoring with
recourse
684 500 BGN 1,76 386 728 13/10/2023
31/08/2024
ASBIS BULGARIA
LIMITED
UNICREDIT BULBANK AD
Factoring with
recourse
3 000 000 BGN 1,76 1 694 934 18/10/2023
30/10/2024
ASBIS BULGARIA
LIMITED
UNICREDIT BULBANK AD
Factoring without
recourse
50 000 BGN 1,76 28 249 15/10/2023
30/10/2024
ASBIS Belarus CJSC VTB BANK (BELARUS)
Short Term
Loan/Revolving
Loan
2 170 000 BYN 3,17 682 927
06/08/2021
05/08/2024
ASBIS Belarus CJSC VTB BANK (BELARUS) Short Term
Loan/Revolving
Loan
8 680 000
BYN 3,17 2 731 707
06/08/2021
05/08/2024
ASBIS Belarus PRIORBANK Factoring with
recourse
3 000 000 BYN 3,17 944 138 07/12/2020
08/05/2024
ASBIS Belarus BANK DABRABYT JSC Factoring with
recourse
3 300 000 BYN 3,17 1 038 552 02/02/2022
01/02/2024
ASBIS Belarus
BANK DABRABYT JSC
Factoring without
recourse
2 000 000 BYN
3,17 629 426 18/11/2022
17/11/2024
ASBC TUE, BY BANK DABRABYT JSC Short Term
Loan/Revolving
Loan
1 095 000 BYN 3,17 344 611 16/01/2023
15/01/2024
ASBC TUE, BY BANK DABRABYT JSC Short Term
Loan/Revolving
Loan
480 000 BYN 3,17 151 062 01/12/2023
30/11/2025
ASBC TUE, BY BANK DABRABYT JSC Short Term
Loan/Revolving
Loan
1 095 000
BYN 3,17 344 611 12/12/2023
31/12/2023
MakSolutions LLC BANK DABRABYT JSC Short Term
Loan/Revolving
Loan
300 000 BYN 3,17 94 414 15/11/2023
31/12/2024
ASBIS KYPROS
LTD
BANK OF CYPRUS PUBLIC
COMPANY LIMITED
BGs/SBLCs 2 190 EUR 0,90 2 422 01/09/2023
15/06/2025
ASBIS KYPROS
LTD
BANK OF CYPRUS PUBLIC
COMPANY LIMITED
Overdraft 500 000 EUR 0,90 553 000 02/05/2023
non term
ASBIS KYPROS
LTD
BANK OF CYPRUS PLC-
FACTORING DIVISION
Factoring with
recourse
800 000 EUR 0,90 884 800 19/06/2019
non term
ASBISC Enterprises
PLC
BANK OF CYPRUS PUBLIC
COMPANY LIMITED
BGs/SBLCs 30 000 EUR 0,90 33 180 22/05/2021
21/05/2024
ASBISC Enterprises
PLC
RAIFFEISEN BANK
INTERNATIONAL
AG
BGs/SBLCs
4 650 000
USD
1,00
4 650 000 18/03/2022
24/03/2024
ASBISC Enterprises
PLC
BARCLAYS BANK PL BGs/SBLCs 5 350 000 USD 1,00 5 350 000 01/05/2022
non term
ASBISC Enterprises
PLC
BANK OF CYPRUS PUBLIC
COMPANY LIMITED
BGs/SBLCs 22 000 000 USD 1,00 22 000 000 26/09/2022
25/09/2024
ASBISC Enterprises
PLC
SOCIETE GENERALE
CYPRUS LIMITED
BGs/SBLCs 5 000 000 USD 1,00 5 000 000
05/10/2022
04/10/2024
ASBISC Enterprises
PLC
UNICREDIT BANK CZECH
REPUBLIC AND SLOVAKIA,
A.S.
BGs/SBLCs 391 943 EUR 0,90 433 489
31/01/2023
02/10/2024
Graphics
51
ASBISC Enterprises
PLC
VSEOBECNA UVEROVA
BANKA A.S (VUB, A.S.)
BGs/SBLCs 8 000 000 USD 1,00 8 000 000 06/03/2023
02/03/2024
ASBISC Enterprises
PLC
UNICREDIT BANK CZECH
REPUBLIC AND SLOVAKIA,
A.S.
BGs/SBLCs 92 788 EUR 0,90 102 624 13/09/2023
12/09/2024
ASBISC Enterprises
PLC
CYPRUS DEVELOPMENT
BANK
PUBLIC
COMPANY
LTD
LCs 125 000 USD 1,00 125 000 19/01/2023
19/01/2024
ASBISC Enterprises
PLC
BANK OF CYPRUS PUBLIC
COMPANY LIMITED
LCs 198 492 USD 1,00 198 492 28/11/2023
08/01/2024
ASBISC Enterprises
PLC
CYPRUS DEVELOPMENT
BANK
PUBLIC
COMPANY
LTD
Overdraft 5 000 000 EUR 0,90 5 530 000 22/06/2021
non term
ASBISC Enterprises
PLC
SOCIETE GENERALE
CYPRUS LIMITED
Overdraft 1 500 000 USD 1,00
1 500 000 01/06/2021
non term
ASBISC Enterprises
PLC
RAIFFEISEN BANK
INTERNATIONAL
AG
Overdraft 5 350 000 USD 1,00
5 350 000 21/03/2022
non term
ASBISC Enterprises
PLC
VSEOBECNA UVEROVA
BANKA A.S (VUB, A.S.)
Overdraft 10 000 000 USD 1,00 10 000 000
06/03/2023
non term
ASBISC Enterprises
PLC
BANK OF CYPRUS PUBLIC
COMPANY LIMITED
Overdraft 10 400 000 USD 1,00
10 400 000 30/04/2023
29/04/2024
ASBISC Enterprises
PLC
BANK OF CYPRUS PUBLIC
COMPANY LIMITED
Overdraft 500 000 EUR 0,90
553 000 30/04/2023
29/04/2024
ASBISC Enterprises
PLC
BANK OF CYPRUS PLC-
FACTORING DIVISION
Factoring with
recourse
13 000 000 USD 1,00
13 000 000
20/06/2023
29/04/2024
ASBISC Enterprises
PLC
ADF PFS Supply Chain
Financing/Reverse
Factoring
42 000 000
USD 1,00 42 000 000 12/09/2023
non term
PRESTIGIO PLAZA
LIMITED
(ACEAN.CY)
BANK OF CYPRUS PUBLIC
COMPANY LIMITED
BGs/SBLCs 11 000 EUR 0,90
12 165 15/09/2023
12/09/2024
PRESTIGIO PLAZA
LIMITED
(ACEAN.CY)
BANK OF CYPRUS PUBLIC
COMPANY LIMITED
Overdraft 50 000 EUR 0,90 55 298 30/04/2023
non term
ASBIS CZ spol s
r.o.
CESKOSLOVENSKA
OBCHODNI BANKA, A.S.
BGs/SBLCs 113 362 EUR 0,90 125 262 27/01/2022
31/12/2024
ASBIS CZ spol s
r.o.
CESKOSLOVENSKA
OBCHODNI BANKA, A.S.
BGs/SBLCs
10 588 EUR 0,90 11 700 02/10/2023
04/04/2025
ASBIS CZ spol s
r.o.
CESKOSLOVENSKA
OBCHODNI BANKA, A.S.
Short Term
Loan/Revolving
Loan
140 000 000 CZK 22,37
6 256 704 11/06/2021
non term
ASBIS CZ spol s
r.o.
VSEOBECNA UVEROVA
BANKA, A.S.
Overdraft 2 000 000
EUR 0,90 2 209 957 16/11/2020
non term
ASBIS CZ spol s
r.o.
CESKOSLOVENSKA
OBCHODNI BANKA, A.S.
Overdraft 15 000 000 CZK 22,37
670 361 01/04/2022
non term
ASBC LLC, GE
Ge119
TBC BANK Overdraft 1 300 000 GEL 2,68 483 379 30/05/2023
29/05/2024
ASBISc-CR d.o.o. OTP BANKA HRVATSKA D.D. BGs/SBLCs 39 817 EUR 0,90 43 998 01/01/2023
non term
ASBISc-CR d.o.o. ERSTE AND
STEIERMAERKISCHE BANK
D.D.
Short Term
Loan/Revolving
Loan
597 253 EUR 0,90 659 964 03/05/2023
30/05/2024
ASBISc-CR d.o.o. ERSTE AND
STEIERMAERKISCHE BANK
D.D.
Short Term
Loan/Revolving
Loan
1 990 842 EUR 0,90 2 199 881 08/09/2023
06/09/2024
ASBIS IT Solutions
Hungary Kft.
CIB BANK LTD. Overdraft 100 000 000 HUF 346,44
288 650 30/06/2023
30/06/2024
ASBIS
KAZAKHSTAN TOO
HALYK BANK
Short Term
Loan/Revolving
Loan
24 000 000
000
KZT 454,56
52 798 310 20/05/2022
19/05/2025
ASBIS robotic TOO
JSC BANK CENTERCREDIT
Factoring with
recourse
22 000 000
000
KZT 454,56
48 398 451 11/07/2022
06/08/2024
ASBIS BALTICS
SIA
OP CORPORATE BANK PLC
LATVIA BRANCH
Overdraft 1 800 150 EUR 0,90 1 989 166 16/10/2023
29/02/2024
ASBIS BALTICS
SIA
OP CORPORATE BANK PLC
LATVIA BRANCH
Factoring without
recourse
4 789 886 EUR 0,90 5 292 824 25/12/2023
non term
ASBIS POLAND
Sp. z o.o.
CREDIT AGRICOLE BANK
POLSKA S.A.
BGs/SBLCs 1 000 000 USD 1,00
1 000 000 11/05/2016
15/07/2024
ASBIS POLAND
Sp. z o.o.
BANK PEKAO S.A Overdraft 8 000 000 PLN 3,93 2 033 037 11/06/2023
10/06/2024
ASBIS POLAND
Sp. z o.o.
CREDIT AGRICOLE BANK
POLSKA S.A.
Overdraft 8 000 000 PLN 3,93 2 033 037 29/07/2023
30/06/2025
ASBIS ROMANIA
SRL
ALPHA BANK ROMANIA SA Short Term
Loan/Revolving
Loan
17 000 000
RON 4,49 3 781 307 15/09/2019
15/02/2024
ASBIS ROMANIA
SRL
BRD - GROUPE SOCIETE
GENERALE SA
Short Term
Loan/Revolving
Loan
5 000 000 RON 4,49 1 112 149
09/06/2023
08/06/2024
ASBIS ROMANIA
SRL
BRD - GROUPE SOCIETE
GENERALE SA
Factoring without
recourse
1 500 000 RON 4,49 333 645
14/12/2017
non term
ASBIS ROMANIA
SRL
BRD - GROUPE SOCIETE
GENERALE SA
Factoring without
recourse
1 000 000 RON 4,49 222 430 24/10/2016
non term
ASBIS ROMANIA
SRL
BRD - GROUPE SOCIETE
GENERALE SA
Factoring without
recourse
8 000 000 RON 4,49
1 779 439 02/11/2023
non term
ASBIS ROMANIA
SRL
BRD - GROUPE SOCIETE
GENERALE SA
Factoring without
recourse
25 000 000 RON 4,49 5 560 746 29/12/2023
non term
Graphics
52
ASBIS d.o.o. EUROBANK AD BGs/SBLCs 35 000 000 CSD 105,86 330 603 05/03/2023
non term
ASBIS d.o.o. UNICREDIT BANK SRBIJA
AD BEOGRAD
BGs/SBLCs 200 000 EUR 0,90
221 361 01/03/2023
31/12/2023
ASBIS d.o.o. EUROBANK AD Long Term Loan
300 000 EUR 0,90 332 042 01/03/2023
31/03/2025
ASBIS d.o.o. EUROBANK AD Long Term Loan 300 000 EUR
0,90 332 042
22/12/2023
30/06/2025
ASBIS d.o.o. UNICREDIT BANK SRBIJA
AD BEOGRAD
Short Term
Loan/Revolving
Loan
500 000 EUR 0,90 553 403 31/03/2022
30/03/2024
ASBIS d.o.o. ERSTEBANK AD Short Term
Loan/Revolving
Loan
1 500 000 EUR 0,90 1 660 210
01/07/2023
30/06/2024
ASBIS d.o.o. EUROBANK AD Short Term
Loan/Revolving
Loan
300 000
EUR 0,90 332 042 13/07/2023
21/12/2024
ASBIS d.o.o. ADDIKO BANK A.D.
BEOGRAD
Short Term
Loan/Revolving
Loan
500 000 EUR 0,90 553 403 21/09/2023
21/09/2024
ASBIS d.o.o. RAIFFEISEN BANKA A.D. Short Term
Loan/Revolving
Loan
1 000 000 EUR 0,90 1 106 807
08/09/2023
08/09/2025
ASBIS d.o.o.
Slovenia
ADDIKO BANK D.D. Long Term Loan
300 000 EUR 0,90 331 785 02/11/2022
24/10/2025
ASBIS d.o.o.
Slovenia
ADDIKO BANK D.D. Short Term
Loan/Revolving
Loan
300 000 EUR 0,90 331 785 25/11/2023
22/11/2024
ASBIS SK spol. s r.
o.
TATRA BANKA A.S. Overdraft 23 000 000 EUR 0,90 25 415 000
23/02/2022
31/07/2024
ASBIS SK spol. s r.
o.
VSEOBECNA UVEROVA
BANKA A.S (VUB, A.S.)
Overdraft 20 000 000 EUR 0,90 22 100 000
07/11/2023
31/01/2024
ASBIS-Ukraine ltd JSC «ALFA-BANK» Short Term
Loan/Revolving
Loan
350 000 000
UAH 37,98 9 214 794 29/11/2021
31/12/2025
ASBIS-Ukraine ltd
FIRST UKRAINIAN
INTERNATIONAL BANK
Short Term
Loan/Revolving
Loan
100 000 000 UAH
37,98 2 632 798 05/09/2022
03/05/2024
ASBIS-Ukraine ltd RAIFFEISEN BANK Short Term
Loan/Revolving
Loan
5 000 000 EUR 0,89
5 556 173 01/05/2023
01/02/2024
ASBIS-Ukraine ltd PRAVEX-BANK JOINT-
STOCK COMPANY
COMMERCIAL BANK
Short Term
Loan/Revolving
Loan
2 000 000 EUR 0,89 2 222 469 01/05/2023
04/08/2024
ASBIS-Ukraine ltd BANK PIVDENNYI Short Term
Loan/Revolving
Loan
50 000 000 UAH
37,98 1 316 399 01/08/2023
21/06/2024
ASBIS-Ukraine ltd TASCOMBANK JSC
(FORMERLY BANK
BUSINESS STANDARD)
Short Term
Loan/Revolving
Loan
390 000 000
UAH 37,98
10 267 914 20/09/2023
03/06/2025
ASBIS-Ukraine ltd JOINT-STOCK COMPANY
OTP BANK
Short Term
Loan/Revolving
Loan
130 000 000
UAH 37,98 3 422 638 04/10/2023
21/07/2026
ASBIS-Ukraine ltd CREDIT AGRICOLE BANK
PJSC
Short Term
Loan/Revolving
Loan
5 000 000 USD 1,00 5 000 000 30/11/2023
29/11/2024
ASBIS-Ukraine ltd
FIRST UKRAINIAN
INTERNATIONAL BANK
Overdraft 50 000 000
UAH 37,98
1 316 399 23/02/2023
23/02/2024
ASBIS-Ukraine ltd JOINT-STOCK COMPANY
OTP BANK
Overdraft 110 000 000 UAH
37,98 2 896 078
13/03/2023
21/07/2026
ASBIS-Ukraine ltd JSC «ALFA-BANK»
Factoring with
recourse
350 000 000
UAH 37,98 9 214 794 01/02/2022
31/12/2025
ASBIS-Ukraine ltd TASCOMBANK JSC
(FORMERLY BANK
BUSINESS STANDARD)
Factoring with
recourse
250 000 000 UAH 37,98 6 581 996
23/12/2022
03/06/2025
ASBIS-Ukraine ltd JOINT-STOCK COMPANY
OTP BANK
Factoring with
recourse
40 000 000 UAH 37,98 1 053 119 04/10/2023
21/07/2026
ASBIS Africa (PTY)
LTD
FIRST NATIONAL BANK Overdraft
9 000 000
ZAR 18,55 485 034 01/06/2023
30/05/2024
Capital Expenditure
Our total capital expenditure for tangible and intangible assets amounted to U.S. $ 26,381 for the year 2023,
compared to U.S. $ 17,861 for the year 2022.
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Commitments and contingencies
Commitments and contingencies are presented in the audited financial statements included elsewhere in this annual
report.
Critical Accounting Policies
The preparation of our financial statements under IFRS requires Management to select and apply certain accounting
policies that are important to the presentation of our financial condition and results of operations. Certain of our
accounting policies have been identified as critical accounting policies. A "critical accounting policy" is one that both
(i) is significant to our financial condition and results of operations (in that the application of a different accounting
principal or changes in related estimates and assumptions that Management could reasonably have used or followed
would have a material impact on our financial condition and results of operations) and (ii) requires difficult, complex
or subjective analysis to be made by Management based on assumptions determined at the time of analysis. Our
accounting policies are reviewed on a regular basis and Management believe that the assumptions and estimates
made in the application of such policies for the purposes of preparing our financial statements are reasonable; actual
amounts and results, however, could vary under different methodologies, assumptions or conditions. Our accounting
policies and certain critical accounting estimates and judgments with respect to the preparation of our financial
statements are described in Note 2 to the financial statements included elsewhere in this annual report.
ITEM 4. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES
Board of Directors
The Board of Directors is responsible for formulating, reviewing, and approving our strategy, budgets, and corporate
actions. We intend to hold Board of Directors meetings at least four times each financial year and at other times as
and when required.
The following table sets out our current Directors:
Name
Year of
Birth
Position Appointed to the Board
Expiry of term
Nationality
Siarhei Kostevitch 1964
Chairman,
Chief Executive Officer
30 August 1999 2026 Cypriot
Marios Christou 1968 Chief Financial Officer 28 December 2001 2026 Cypriot
Constantinos Tziamalis
1975 CRO, Deputy CEO 23 April 2007 2025 Cypriot
Julia Prihodko 1982
Chief Human Relations
Officer
7 May 2021 2025 Ukrainian
Hanna Kaplan 1975 Executive Director 23 June 2023 2024 Cypriot
Tasos Panteli 1976 Non-Executive Director 18 April 2019 2024 Cypriot
Maria Petridou 1977 Non-Executive Director 29 March 2021 2024 Cypriot
Constantinos Petrides 1974 Non-Executive Director 23 June 2023 2024 Cypriot
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The biographical details of the members of our Board of Directors are set out below:
Siarhei Kostevitch, born in 1964, holds a master’s degree in radio engineering design from the Radio Engineering
University of Minsk (1987). Between 1987 and 1992, Siarhei worked as a member of the Research Center at the
Radio Engineering University in Minsk, where he published a series of articles on microelectronics design in local
and worldwide specialist magazines. In 1990, Siarhei established a design and manufacturing business in Minsk,
Belarus, and within 15 years has built it into the leading computer component distributor in Eastern Europe and the
Former Soviet Union. Siarhei is the Chairman and the CEO of the Group.
Marios Christou, born in 1968, holds a B.A., dual major in Accounting and Information Systems and Economics,
from Queens College of the City University of New York (C.U.N.Y.) (1992), and an M.B.A. in International Finance
from St. John's University, New York (1994). Marios is also a Certified Public Accountant (CPA) and a member of
the American Institute of Certified Public Accountants (AICPA). Marios worked with Deloitte & Touche Limassol,
Cyprus, for four years, as an audit manager. Marios then worked as a Financial Controller at Photos Photiades
Breweries Ltd (part of the Carlsberg Group of companies) for three years. Marios joined the Company in August
2001 and is the Chief Financial Officer.
Constantinos Tziamalis, born in 1975, holds a B.Sc. in Banking and Financial Services (1998) and a Masters (M.Sc.)
in Finance (1999) from the University of Leicester. Constantinos Tziamalis worked at the private banking department
of BNP Paribas in Cyprus and then joined a brokerage house, Proteas Asset Management Limited, for 3 years as
Investor Accounts Manager. Constantinos joined the Company in January 2002 as Financial Project Manager.
He was promoted to the position as Corporate Credit Controller & Investor Relations in March 2003 and became
Director of Risk and Investor Relations as of 23 April 2007. In January 2010 Constantinos has been also appointed
as head of the FX Risk Management team. In February 2022, he was nominated to the newly created position of
Deputy CEO.
Julia Prihodko, born in 1982, holds a Masters (M.Sc.) in Psychology. Julia Prihodko started her career in a Ukrainian
recruiting agency as a Recruiting Manager, held the position of Head of HR Department at “NOVA” Insurance
Company and Investment Consulting Center for 2 years, and worked for PJSC "Insurance Company" Alfa Insurance"
(part of the European private investment holding company ABH Holdings S.A. (ABHH)) for 7 years as Head of
Human Resources Department.
Julia joined the Company in May 2015 as Human Relation Manager of ASBIS Ukraine. She was promoted to the
position of Chief Human Relations Officer in February 2019. On the 7
th
of May 2021, Julia Prihodko was appointed
to the Board of Directors as an Executive Director.
Hanna Kaplan holds a bachelor’s degree in economics, and she is a Certified Accountant qualified in 2020.
Hanna served as finance manager and chief accountant in various companies before she moved to ASBIS back in
2002. Ever since, Hanna has evolved into one of the key persons in the Finance department of ASBIS Group. Due
to her extensive experience and skills, Hanna was the leader of the project of automating the Group’s consolidation,
being the key liaison with Finance and IT departments. She also participated in the Group’s listing efforts back in
2007 and concluded with big success the online reporting system based on our own proprietary software IT4profit.
Responsibilities: Hanna Kaplan has been working with ASBIS for more than 20 years and she is one of the
cornerstones of the Accounting and Financial reporting of the whole Group. She will continue to lead all projects of
finance/IT integration and the automation of the reporting systems of the Group.
Tasos Panteli joined the Group in 2019. Tasos started his professional career at Nicos Chr. Anastasiades & Partners
(Advocates – Legal Consultants), holding the position of Advocate in 2001. Since 2005, Tasos has been working at
Andreas M. Sofocleous & Co LLC (Advocates – Legal Consultants) as Advocate (Advocate - Partner since 2010).
He received a Bachelor of Laws (LLB) from the Queen Mary and Westfield College (1999), a Postgraduate Diploma
in Legal Skills from the City University London, Inns of Court School of Law (2000). In the same year, he completed
the Bar Vocational Course at the City University London, Inns of Court School of Law and was Called to the Bar. In
2001 he received a Master of Laws (LLM) from King’s College London. In 2002 he was admitted to the Cyprus Bar
Association. He is a member of the Board of Directors of Cyprus Hydrocarbons Company (CHC) Ltd, a member of
the Cyprus Bar Association and a member of the Honourable Society of Lincoln’s Inn (Barrister at Law). Tasos is
one of the two Non-Executive Directors of the Company.
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Maria Petridou joined the Group in 2021. She started her professional career at KPMG Metaxas, Loizides, Syrimis
(Limassol, Cyprus), holding the position of Audit Supervisor (1998-2002). In 2002, Mrs. Maria Petridou joined EFG
EUROBANK SA (Athens, Greece) as an Assistant Manager in the Finance and Control Department. Between the
years 2006 and 2007, she worked for KOMMUNALKREDIT INTERNATIONAL BANK LTD (Limassol, Cyprus) as a
Manager in the Accounting Department. In 2008, she held the position of Finance Lead, in the SOX Compliance
Office of MF GLOBAL LIMITED (London, UK). Between the years 2011 and 2012 she worked for Versatile Apparel
Ltd (London, UK), holding the position of Finance Director. In 2013, she joined AMF Horwath DSP (Limassol,
Cyprus) as the Head of the Fund Administration Services department. Since 2016 she has been engaged in
accounting and financial services projects as a consultant. Between the years 2018 and 2021, she held the position
of Chief Accountant at Agri Europe Cyprus Limited.
Maria Petridou received a Bachelor of Arts in accounting and financial management (1998) and was awarded an
Upper Second-Class Honours degree from the UNIVERSITY OF ESSEX (Colchester, England). She is a member
of the Institute of Chartered Accountants in England and Wales (ICAEW).
Constantinos Petrides started his professional career in 2000 at the Cypriot Banks Association and as a
representative of the Association in the European Banking Federation and the National Euro Changeover
Committee. In April 2006, he was employed at the European Commission in Brussels, where until September 2011
he worked as an economist in the Directorate-General for Agriculture and the Directorate-General for Competition.
While working for the European Commission, he was a negotiator of trade liberalization agreements between the
EU and third countries and dealt with issues of state aid in the field of transport. Since March 2013 to May 2017, he
was the Deputy Minister to the President of the Republic of Cyprus. After that, he served as Minister of Interior (May
2017 - December 2019). From December 2019 to March 2023, he held the office of Minister of Finance of the
Republic of Cyprus.
Constantinos Petrides studied economics at the University of Nottingham and then obtained a master's degree in
the economics of political change in Europe from the London School of Economics and Political Sciences.
Directors’ remuneration
Unless determined by ordinary resolution, the number of Directors shall be not less than three and there shall be no
maximum number of Directors.
Subject to our Articles of Association, we may by ordinary resolution appoint a person who is willing to act as a
director, either to fill a vacancy or as an addition to the existing Board of Directors.
The remuneration of the Directors will from time to time be determined by the general meeting on the
recommendation of the remuneration committee.
Any Director performing special or extraordinary services in the conduct of our business or in discharge of his or her
duties as Director, or who travels or resides abroad in discharge of his or her duties as Director may be paid such
extra remuneration as determined by the Directors, upon recommendation by the remuneration committee.
Executive Directors are also entitled to receive a bonus every quarter depending upon quarterly results. The bonus
consists of a certain amount or percentage which is agreed and described in each Director’s service agreements or
contracts, as applicable, however, Directors only receive such a bonus to the extent profit meets certain pre-set
budgetary figures. All such bonus amounts are included in the remuneration tables set forth below.
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The following table presents the remuneration (including bonuses) of Directors for the years ended 31 December
2023 and 2022, in U.S.$:
Name of the director,
Position
Year
1
Fixed remuneration
2
Variable remuneration
3
Extraordinary
items
4
Provident
Fund
5
Total
remuneration
Basic Fees Fringe
benefits
One-year
variable
Multi-year
variable
Siarhei Kostevitch,
Chairman,
Executive
(Chief Executive Officer)
2022 205 773 - 6 984
2023 213 792 6 1,011
Marios Christou,
Executive
(Chief Financial Officer)
2022 123 170 - 4 297
2023 127 171 4 302
Costas Tziamalis,
Executive
(Deputy CEO)
2022 123 170 0 4 297
2023 127 171 4 302
Julia Prihodko
Executive
(Chief Human Relations
Officer)
2022 50 35 - 2 87
2023 58 50 2 110
Hanna Kaplan,
Executive Director*
2022 - - - - -
2023 43 - 1 44
Constantinos Petrides,
Non-executive
(Non-executive Director)*
2022 - - - - -
2023 21 21
Tasos Panteli,
Non-executive
(Non-executive Director)
2022 13 - - - 13
2023 26 26
Maria Petridou
Non-executive
(Non-executive Director)
2022 13 - - - 13
2023 26 26
*Hanna Kaplan and Constantinos Petrides were appointed to the BOD on the 23rd of June 2023.
Information about non-financial remuneration components due to each board member and key manager
Executive members of the Board of Directors are entitled to a car, phone, and medical insurance.
Significant amendments to the remuneration policy in the last financial year or information about their
absence.
During 2023, there were no significant changes in the Company’s remuneration policy.
Assessment of the implementation of the remuneration policy
The Board of Directors positively evaluates the functioning of the remuneration policy from the point of view of
achieving its objectives, in particular, the long-term shareholder value growth and the stability of the Company's
operations.
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Shares ownership
The table below presents the beneficial interests of Directors in the Company’s issued share capital as at the date
of the publication of this annual report:
Name Number of Shares % of the share capital
Siarhei Kostevitch (directly and
indirectly) *
20,448,127 36.84%
Constantinos Tziamalis 406,600 0.73%
Marios Christou 330,761 0.60%
Hanna Kaplan 21,000 0.04%
Julia Prihodko 2,000 0.00%
Maria Petridou 0 0.00%
Tasos Panteli 0 0.00%
Constantinos Petrides 0 0.00%
* Siarhei Kostevitch holds shares as the ultimate beneficial owner of KS Holdings Ltd.
To the best of the Company's knowledge, the members of the Board of Directors do not have any rights to the
Company’s shares.
In 2023 there were the following changes in the number of shares possessed by the members of the Board of
Directors:
Name
Number of shares
acquired
Number of shares
disposed
Hanna Kaplan 15,000 -
Julia Prihodko 2,000 -
Constantinos Tziamalis - 150,000
Marios Christou 17,700 150,000
Cross reference:
Committees
The Audit Committee of the Company was comprising Tasos Panteli, Maria Petridou and Constantinos Petrides (all
non-executive Directors) and Marios Christou (as attending member) and is chaired by Maria Petridou. The Audit
Committee meets at least twice a year. The Audit Committee is responsible for ensuring that the Group’s financial
performance is properly monitored, controlled, and reported. It also meets the auditors and reviews reports from the
auditors relating to accounts and internal control systems. The Audit Committee meets at least once a year with the
auditors.
The Remuneration Committee of the Company comprises Tasos Panteli, Maria Petridou and Constantinos Petrides
(all non-executive Directors) and Siarhei Kostevitch (as attending member) and is chaired by Tasos. Panteli. It sets
and reviews the scale and structure of the executive Directors’ remuneration packages, including share option
schemes and terms of their service contracts.
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The remuneration and the terms and conditions of the non-executive Directors are determined by the Directors with
due regard to the interests of the Shareholders and the performance of the Group. The Remuneration Committee
also makes recommendations to the Board concerning the allocation of share options and/or treasury stock
allocation to directors, managers and employees of the Company.
Changes in main management rules
There were no changes to the main management rules in 2023.
List of all agreements signed with directors that gives the right to compensation in a case the person resigns
or is fired.
There were no changes in the service agreements of any of the directors.
Information about ownership of shares of any related parties - owned by the Directors.
None of our Directors holds shares in any of our subsidiary companies, other than disclosed.
Employees
During 2023 we have employed an average number of 2,673 employees, of whom 301 were employed by the
Company and the remainder in the rest of the Group’ s offices worldwide.
The split of employees by area of activity in 2023 and 2022 is as follows:
2023 2022
Sales and Marketing 1,484 1,213
Administration and IT 419 338
Finance 213 200
Logistics 557 471
Total 2,673 2,222
ITEM 5. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS
Major Shareholders
The following table presents shareholders possessing more than 5% of our shares as of the date of publication of
this report, according to the best of our knowledge. The information included in the table is based on the information
received from the shareholders pursuant to Art. 69, sec. 1, point 2 of the Act on Public Offering, conditions governing
the introduction of financial instruments to organized trading and public companies.
Name
Number of
shares
% of
share
Number of
votes
% of
votes
KS Holdings Ltd* 20,448,127 36.84% 20,448,127 36.84%
Free float 35,051,873 63.16% 35,051,873 63.16%
Total 55,500,000 100% 55,500,000 100%
*Siarhei Kostevitch holds shares as the ultimate beneficial owner of KS Holdings Ltd
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Information on the disposal program of the treasury shares:
In Q2 2023, the Board of Directors decided that all treasury stock which the Company had purchased during the
buy-back programs conducted in 2022 (i.e., 328,800 shares) will be offered to key, selected employees and the
Provident Fund of ASBIS Group for the average price of PLN 15.0 per share. These shares have been purchased
on the Warsaw Stock Exchange, at an average of PLN 13.32 per share. The agreements between the Company
and employees apply for a 12-month lock-up period.
In 2023 ASBIS sold all treasury stock, representing 0.59% of share capital and giving 328,800 votes (0.59%) at the
General Meeting of Shareholders.
Besides the above-mentioned sales of the treasury shares, there were no changes in the number of shares
possessed by major shareholders in 2023.
Related Party Transactions
During the year ended 31 December 2023, the Company did not have any material related party transaction other
than typical or routine transactions. For the ordinary course of business transactions, please refer to the notes on
the audited financial statement attached to this annual report.
In the year 2023, several transactions have occurred between the Company and its subsidiaries and between our
subsidiaries. In our opinion, all these transactions were based on terms that did not vary from market terms and
their nature and conditions resulted from ongoing needs and operations of the Company and of the Group, such as
contracts related to the purchases of goods for onward distribution to external clients. All these transactions and
related outstanding balances were eliminated in the Financial Statements included in this Annual Report and, as a
result, did not have any impact on our consolidated financial results and on our financial position.
ITEM 6. FINANCIAL INFORMATION
Legal Proceedings
Currently, there are no legal significant proceedings pending against us or any of the members of our Group.
Information on loans granted to any other party.
During the year ended 31
st
December 2023, we have not granted any loan to any other party other than to our
subsidiaries which are disclosed in another part of this report (audited financial statements).
Information on granted guarantees.
We grant certain guarantees to some of our vendors and to certain customs authorities. All our guarantees are
reported in the financial statements section of this annual report.
The total corporate guarantees the Company has issued, as of December 31st, 2023, to support its subsidiaries’
local financing, amounted to U.S.$ 202,399. The total bank guarantees and letters of credit raised by the Group
(mainly to Group suppliers) as of December 31st, 2023, was U.S.$ 48,008 – as per note number 20 to the financial
statements.
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Evaluation of financial resources management (including the ability to pay back commitments) and
information about actions undertaken to avoid risks.
This has been discussed in note 35 of our financial statements to this annual report under the headline Financial
Risk management.
Evaluation of the possibility of realization of investment intentions
The Company has completed almost all its current investments in prior years and in 2023 intends to mainly grow
organically, therefore there is low risk connected with the realization of current investment intentions.
Characteristics of the structure of assets and liabilities in the consolidated balance sheet including
characteristics from the point of view of Company liquidity
The structure of assets and liabilities in the balance sheet including characteristics from the point of view of the
Company’s liquidity has been discussed in detail in the financial statements included in this annual report:
a) note 17 - Trade receivables - Ageing analysis of receivables
b) note 35 – Financial risk management – point 1.3. Liquidity risk
Information about the structure of main deposits and capital investments in 2023
There were no deposits other than those disclosed as pledged deposits in the financial statements to this annual
report.
There were no other capital investments than the ones disclosed in note 34 of the financial statements included in
this annual report.
Information about relevant off-balance sheet positions as at December 31
st
, 2023
There were no relevant off-balance sheet positions as of December 31
st
, 2023, other than Bank Guarantees
disclosed in note 20 of the audited financial statements.
Dividend Policy
Our dividend policy is to pay dividends at levels consistent with our growth and development plans while maintaining
a reasonable level of liquidity.
On the 10
th
of May 2023, the Annual General Meeting of Shareholders adopted a resolution on a final dividend
payment for the year ended December 31
st
, 2022, amounting to USD 0.25 per share, in line with the
recommendation of the Company’s Board of Directors. The Annual General Meeting has also acknowledged the
decision of the Board of Directors to approve an interim dividend of USD 0.20 per share, paid in December 2022.
Thus, the total dividend payment from the Company's profit for 2022 amounted to U.S.$ 0.45 per share.
On the 8
th
of November 2023, the Company’s Board of Directors decided on the payment of an interim dividend
from 2023 profits. The interim dividend of USD 0.20 per share was paid out on the 7
th
of December 2023. The interim
dividend record date was on the 27
th
of November 2023.
On the 27
th
of March 2024, the Company’s Board of Directors decided to recommend to the Annual General Meeting
of Shareholders the payment of the final dividend from the Company’s 2023 profits of USD 0.30 per share.
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Any future dividends will be solely at the discretion of the Board of Directors and the General Meeting of shareholders
after considering various factors, including business prospects, future earnings, cash requirements, financial
position, expansion plans and requirements of the Cyprus law.
The Cyprus law does not limit dividends that may be paid out except that it states that dividends may only be paid
out of profits and may not be higher than those recommended by the Board of Directors.
Throughout recent years the Group has always followed a steady Dividend Policy, by not paying anything more than
50% of the profitability of the precedent year.
Significant Contracts
During 2023 neither the Company nor any of the members of our Group concluded any significant contracts.
PART II
ITEM 7. PRINCIPAL ACCOUNTANT FEES AND SERVICES
We enter into agreements with our principal auditors, KPMG Limited, as well as other auditors of Group companies,
to review interim (period ending the 30
th
of June) and audit annual financial statements (fiscal year ending 31
December).
The last agreement has been signed on the 27th of November 2023.
The following table presents a summary of accountant fees and services for the twelve months ended December
31, 2023, and 2022:
(U.S. $)
2023 2022
Auditors’ fees regarding annual report
(1)
Auditors’ fees for tax advisory
Auditors’ fees for other services
574
25
-
536
35
1
Total fees
599 572
(1)
Positions in the table include fees and expenses for certain services (i.e., in relation to reviews and audits of financial statements) for the
periods covered by the fiscal year, notwithstanding when the fees and expenses were billed.
ITEM 8. ASBISC ENTERPRISES PLC STATEMENT ON NON-FINANCIAL INFORMATION FOR THE YEAR 2023
According to art. 55.2b of the Polish Bill of Accounting (which implements the 2014/95/EU Directive into Polish law),
ASBISc Enterprises Plc presents separately a consolidated report on non-financial information for Y2023.
The report includes all non-financial information regarding the ASBISc Enterprises Plc Group in the period from
January 1 to December 31, 2023.
The report is available at the Company website http://investor.asbis.com/csr-reports
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