ASBIS FINISHES ANOTHER DIFFICULT YEAR IN STYLE WITH SUPER PROFITS

ASBISc Enterprises Plc, 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), generated very good financial results in 2022 and fully met the increased forecast of financial results, exceeding it at the level of net profit. Due to the war in Ukraine, the Group very strongly reorganized its sales, focusing on non-conflict, growth markets. Thanks to this, sales revenue in 2022 amounted to nearly USD 2.7 billion compared to USD 3.1 billion in the record-breaking 2021, which indicated a decrease of only 13%. Despite the decline in revenues, net profit in this period remained extremely high and was close to the record level in 2021 and amounted to USD 75.9 million, compared to USD 77.1 million in 2021.

In the fourth quarter of 2022 alone, ASBIS generated revenue of USD 780.3 million, while net profit amounted to USD 28.7 million, equalling the profitability of the respective quarter of 2021 which was the highest in the history of ASBIS. 

OTHER IMPORTANT EVENTS IN 2022:

• The largest ASBIS country in terms of sales was the very fast growing Kazakhstan, while the FSU regions (almost 52% share) and Central and Eastern Europe countries (over 24% share) had the largest share in the Group's revenues.
• Poland is among the 10 countries with the highest revenues in the Group, taking the 8^th place with revenues of USD 85.8 million (an increase of 10% compared to the same period of last year).
• ASBIS not only met but also exceeded at the level of net profit the financial forecast for 2022, increased on November 7, 2022, which assumed the generation of revenues between USD 2.6 billion and USD 2.8 billion and net profit after tax between USD 70.0 million USD and USD 74.0 million.
• On December 1, 2022, the Group paid an interim dividend from 2022 profits in the amount of USD 0.20 per share (total USD 11,100,000). The dividend is paid for 7 consecutive years.
• ASBIS decided to make a strategic move and launch a new business division related to robotics - ASBIS Robotic Solutions (AROS) and created the CRON Robotics brand. The cobot market is expected to be worth several hundred billion dollars in the coming years.
• The Group is developing a network of Apple showrooms in its area of operation - it is currently an authorized reseller of Apple products in 11 markets and manages a network of 27 stores and plans its further development. 

“Last year completely changed the image of our markets. The war in Ukraine showed us how strong and stable ASBIS is. We have accomplished the practically impossible and emerged from a very difficult situation strengthened, with an open perspective of development for the coming years,” said Serhei Kostevitch, CEO of ASBIS Group.

“We reorganized our markets, focusing on growth markets not affected by the war, expanded our product portfolio, focusing on more profitable segments, developing new markets, and launched a robotics arm that could be worth up to several hundred billion dollars in the next few years. Despite lower revenues than in 2022, our profitability remains practically at the level of the best year in our over 30-year history, 2021. So we are more than satisfied with this difficult year, from which we came out in very good shape.” 

FINANCIAL RESULTS

ASBIS generated very good financial results in the discussed period. The Group was able to largely compensate for the negative effects of the war in Ukraine by focusing on development and investments in non-conflict markets.

A summary of the financial results of the ASBIS Group in Q4 2022 and Q1-Q4 2022 is presented in the tables below (presentation of the results in USD and additionally, also in PLN for an overview). USD remains the official reporting currency of the Group.

FINANCIAL FORECAST 2022 REALIZATION 

ASBIS fully met the increased financial forecast for 2022, at the net level the forecast was exceeded.

According to the increased financial forecast published on November 7, 2022, the Group was to generate in 2022 sales revenue between USD 2.6 billion and USD 2.8 billion and net profit after tax between USD 70.0 million and USD 74.0 million. 

DETAILED SALES DATA 

SALES BY REGION 

The war in Ukraine affected the Group's main markets of operation, but still the regions of the FSU and Central and Eastern Europe traditionally had the largest share in the Group's revenues both in the fourth quarter of 2022 and throughout 2022. The share of the FSU region in total ASBIS revenues decreased by 20.7% to 52.3% in 2022, while sales in Central and Eastern Europe were practically at the same level as in 2021.

Thanks to the Group's intensive activities in the Middle East and Africa, in 2022 sales in these regions increased by 24.4% compared to the previous year.

This shows that the Group was able to compensate for lower sales in the countries directly affected by the war, with higher sales in other regions of operation. 

SALES BY COUNTRY 

The analysis of individual countries confirms that in the markets directly affected by the war in Ukraine, the Group recorded a significant decrease in sales. On the other hand, the Company was able to significantly increase sales in markets not directly affected by the war, such as Kazakhstan - currently the Group's largest market, the United Arab Emirates, Azerbaijan and Georgia

Poland recorded a 10% increase in 2022. increase in sales. The best-selling product categories in Poland were processors, phones and servers. 

The countries with the highest sales growth in 2022 were:

• Georgia - increase by 90.4%
• Azerbaijan - increase by 76.4%
• Kazakhstan - increase by 52.6%
• Germany - increase by 48.5%.
• United Arab Emirates - increase by 42.2%.
• Slovakia – an increase of 21.3%.

In Q4 2022, the countries with the highest sales increases were as follows:

• Armenia - increase by 217.4%
• Germany - increase by 125.4%
• Georgia - increase by 124.1%
• Azerbaijan - increase by 58.3%
• United Arab Emirates - increase by 40.3%
• Kazakhstan - increase by 33.7%   

For additional information, please contact:  

Iwona Mojsiuszko
8Sense Public Relations
Tel. +48 502 344 992
E-mail iwona.mojsiuszko@8sensepr.pl

^{About ASBISc Enterprises Plc} 

^{ASBIS Group 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.} 

<sup>The business of ASBIS is based on three pillars:
1. Distribution of hardware and software for Client Computing and Data Centers, consumer electronics thru:
    a.   Retail chains and e-tailers
    b.   Resellers to small and medium business
    c.   Large enterprises.
2. Full stack in creation of world class products. From scientific research and development to design and engineering, firmware and software, production and marketing of IT and IoT products and solutions via own brands:
    a.      Aeno (small home appliances).
    b.     Canyon (smart watches, power banks, accessories for computers and mobile devices)
    c.     Cron Robotics (building own solutions in the robotics segment, including cobots).
    d.     Lorgar (accessories for gaming and streaming)
    e.     Perenio (IoT platform, IoT routers, applications and peripherals for smart office/ home, smart health).
    f.     Prestigio (smart devices and accessories, innovative solutions for business and education, etc.)
    d.     Prestigio Solutions (innovative technological solutions for business and education)
3.     Complex solutions sales projects to large enterprises via extensive networks of System Integrators and Value Add Resellers.</sup> 

^{ASBIS was founded in 1990 in Belarus, since 1995 operates from Cyprus. Company has 2 main distribution centers in the world located in the Czech Republic and the United Arab Emirates and 2 regional distribution centers (Georgia, South Africa), subsidiaries in 28 countries, more than 2,200 employees and about, 20 000 active customers in 60 countries worldwide. In 2022, the Group delivered sales of close to USD 2.7 billion.}

^{The Company’s stock has been listed on the Warsaw Stock Exchange since October 2007 under the ticker symbol “ASB” (ASBIS).} 

^{For more news and information visit: www.asbis.com}