Limassol, Cyprus, 29
th
March 2023
CONSOLIDATED
NON
-FINANCIAL
REPORT FOR 2022
ASBISC ENTERPRISES PLC
Table of Contents
LETTER FROM THE CEO .............................................................. 3
ABOUT THE REPORT ................................................................... 5
BUSINESS MODEL ........................................................................ 7
STRATEGIC CAPITALS’ DEVELOPMENT ................................. 15
CORPORATE GOVERNANCE ..................................................... 24
STAKEHOLDERS ......................................................................... 31
HUMAN CAPITAL AND EMPLOYEE POLICIES ......................... 36
INTELLECTUAL CAPITAL ........................................................... 42
SOCIAL CAPITAL AND POLICIES .............................................. 45
HUMAN RIGHTS AND POLICIES ................................................ 48
NATURAL CAPITAL AND ENVIRONMENTAL POLICIES .......... 52
POLICIES AGAINST BRIBERY AND CORRUPTION .................. 67
RISK MANAGEMENT ................................................................... 69
NON-FINANCIAL INDICATORS & GRI & IIRC & SASB &
TCFD ALIGNMENT ...................................................................... 74
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
3
Letter from the CEO
Doing the right
thing matters for
ASBIS
Dear Stakeholders,
It is with great pleasure that I present the ASBIS
sixth Consolidated Non-financial Report.
2022 has been another year in a row, during which
ASBIS’ business model flexibility has proven of
crucial importance. After two years of pandemics
which have changed the way corporates and
people operate globally, last year started with an
unprecedented Russian attack on Ukraine.
Although Russia has been ASBIS’ largest market
for years, we decided to cease all activity there and
took all necessary steps to meet the requirements
of sanctions on Russia as well as Belarus. Doing
the right thing and standing up to human rights and
ASBIS values is the most important for us. We
continue to operate in Ukraine, supporting its
economy and people to the best of our abilities. We
have reallocated some of our Russian, Belarusian
and Ukrainian personnel to Cyprus and other
countries of operations and donated financial
resources to various humanitarian organisations.
Despite these turbulences, in 2022 ASBIS further
strengthened its business operations,
geographical presence (with stronger focus,
among other on Kazakhstan and Georgia, entry to
Greece) and competences, enhanced product
offering (robots and biotechnology) and acquired
new businesses. Despite contracting revenues, we
expanded gross profit margin and delivered stable
YoY EBIT and net income. We have maintained a
strong cash position which allowed us to continue
to pay dividends. ASBIS has proved even more
resilient and is prepared for future changes within
the demanding IT distribution industry as well as
potential turbulences on markets and economies.
On top of putting our values into practice, we
continued to work on further improvements in our
non-financial reporting. For 2021 reporting we
have been awarded the title of Climate Aware
Company, second year in a row. We took time to
present an even more insightful non-financial
report for 2022. Our 2022 report not only meets the
EU requirements, but also includes SASB
Standards, TCFD Recommendations, IIRC
Framework which is done with reference to GRI
Standards. At the same time, we fulfilled a vast
majority of our obligations and targets from our
2020-22 CSR Strategy.
We promise to continue our actions for the benefit
of all our stakeholders in 2023.
Siarhei Kostevitch
Chairman & CEO
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
4
KEY 2022 NON-FINANCIAL INDICATORS
20,000
active customers
in 60 countries
110,000
products in portfolio
60%
transactions on-line
Subsidiaries
in
28countries
4 key
regions
of operations
240+
vendors
2,222
employees
4
distribution centers
7
private label brands
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
5
About the Report
Report created in
line with
internationally
recognized
standards and
recommendations
[GRI 2-3, 2-4, 2-5]
This Non-financial Report has been prepared by
ASBIS based on 2022 data for the whole Group,
for dates encompassing January 1, 2022 until
December 31, 2022. The report also encompasses
comparable consolidated data for 2021.
As ASBIS’ shares are listed on the Warsaw Stock
Exchange in Poland, the Report has been created
in accordance with the Polish Bill of Accounting
(which implements the 2014/95/EU Directive into
Polish law) requirements. The Report has been
prepared on the Group level, as on the
consolidated level ASBIS meets the criteria of
article 55.2b. Both in 2022 and in 2021 the Group
employed more than 500 employees on average,
its assets exceeded PLN 102m and turnover
exceeded PLN 204m. Similar disclosure
requirements are also mandatory in Cyprus, where
ASBIS headquarters are located. Summary of
alignment of disclosures with Polish Bill of
Accounting and thus EU Non-financial Reporting
Directive is available at the end of the Report.
The Report is published together with ASBIS
Consolidated Financial Report for 2022 along with
the Polish Ministry of Finance Bill on current and
periodical reports. The Report is compliant with the
requirement of the Polish Bill of Accounting listed
in articles 49b points 2-8. ASBIS non-financial
report is being prepared on annual basis and the
reporting period is aligned with financial reporting.
While preparing the report the Board of Directors
took into consideration also the non-binding EU:
(1) guidelines on non-financial reporting:
methodology for reporting non-financial
information (2017/C215/01) as well as the (2)
guidelines on non-financial reporting: supplement
on reporting climate-related information
(2019/C209/01).
The Report has been prepared based on policies
present in the Group as well as long-standing
practices. ASBIS’ Report has been prepared in line
with internationally recognized SASB
(Sustainability Accounting Standards Board)
Standards for the third year in a row. Following
SASB’s Sustainable Industry Classification
System® we have chosen to report within
Consumer Goods sector and Multiline and
Specialty Retailers & Distributors industry. ASBIS
believes these standards point to all financially
material non-financial aspects of its operations. On
top, since 2021 ASBIS has also applied TCFD’s
climate-related financial disclosure
recommendations in its Non-financial Report.
Summary of financially material disclosures in line
with SASB Standards and TCFD
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
6
Recommendations is available at the end of the
Report.
Aiming to provide increasingly more
comprehensive disclosure on sustainability topics,
meeting the expectations of a varied group of
stakeholders, ASBIS decided to add disclosures
“With reference to GRI Standards”. A GRI Content
Index is available at the end of the Report. Also in
this Report, ASBIS has also to a larger extent
applied the Integrated Reporting Framework for
merging financial and non-financial information.
Again, details of alignment have been presented at
the end of this Report.
Even though the Russian attack on Ukraine and
the resultant war had a sizeable impact on ASBIS
operations – Russia has been a key market for
many years – the Board of Directors confirmed that
the stakeholder materiality assessment conducted
two years earlier is valid and that all material topics
are addressed in the Report. The key reason was
that ASBIS’ business model has once again
proven a resilient one, with the business being
transferred to other countries.
The scale of disclosures for 2022 has been
increased YoY. No data for 2021 has been
restated with one exception were more detailed
Scope 3 GHG calculations were introduced. The
Report preparation has been supervised by two
Executive Directors, in frames of scope of
information revealed and quality of data provided.
The Report has been created with due diligence
and care, yet it has not been verified by any
external third party.
In case of questions about the Report please
contact Stelios Souzou at s.souzou@asbis.com or
b.basa@asbis.com.
Consolidated Non-financial Report of ASBISc Enterprises Plc for 2022
7
Business model
ASBIS is one of
the leading IT
distributors in
EMEA Emerging
Markets
[GRI 2-1, 2-2, 2-6]
OVERVIEW
ASBISc Enterprises Plc (Public Limited Company)
is one of the leading distributors of Information
Technology ("IT") products in Europe, Middle East
and Africa (“EMEA”) Emerging Markets: Central
and Eastern Europe, the Baltic States, the Former
Soviet Union, the Middle East and Africa,
combining a broad geographical reach with a wide
range of products distributed on a "one-stop-shop"
basis.
Our main focus is on the following countries:
Kazakhstan, Ukraine, Middle East countries (i.e.
United Arab Emirates, Qatar and other Gulf
states), Slovakia, Poland, Czech Republic,
Caucasus region (Armenia, Azerbaijan, Georgia),
Romania, Croatia, Slovenia, Bulgaria, Serbia,
Hungary and Latvia.
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"),
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.
ASBIS commenced business in 1990 in Belarus
and in 1995 we incorporated our holding Company
in Cyprus and moved our headquarters to
Limassol together with all key management of the
Company. After the recent change, the HQs are
now located at 1, Iapetou Street, Agios
Athanasios, 4101. Our Cypriot headquarters
support, through four distribution centres (two
master distribution centres in Prague and Dubai
and two regional in Tbilisi and Johannesburg), our
network of 31 warehouses located in 28 countries.
This network supplies products to the Group's in-
country operations and directly to its customers in
approximately 60 countries.
ASBIS’ shares are listed on the Warsaw Stock
Exchange and are present in key indices: WIG-
ESG, mWIG40, WIG140, mWIGTR, WIGdiv, WIG.