ASBIS PREDICTS AN ENORMOUS INCREASE IN PROFITABILITY IN 2021

THE GROUP INCREASES FORECAST FOR 2021 AIMING TO DOUBLE THE PROFITS OF LAST YEAR 

ASBISc Enterprises Plc, a leading Value-Added Distributor, developer and supplier of IT and IoT products, solutions and services in the growing markets of Europe, Middle East and Africa, increased the financial forecast for 2021 published in March this year. According to the new forecast, revenues from sales will be in the range of USD 2.9 billion to USD 3.1 billion, i.e. they may be 7% higher than the upper ranges of the original forecast, while net profit after tax will be between USD 71 million and USD 74 million USD, which means that it may be 45% higher than originally assumed. 

On March 29, 2021, the Group published its financial forecast for 2021. It assumed revenues of between USD 2.7 billion and USD 2.9 billion and net profit after tax between USD 47 million and USD 51 million. 

Siarhei Kostevitch, CEO and Chairman of the Board of Directors ASBISc Enterprises Plc, commented: “This year doesn’t cease to surprise us. It promises to be another record in our history, both in terms of revenues and profits. ASBIS is at a very good shape as it is using its strong position in the markets in which it operates to deliver super results. We are experiencing significant growth in multiple product categories and this allow us to take all opportunities which come across us. We act quickly and decisively, which is why we are not only able to generate higher margins, but also grow faster than the market 

The reason for the upward adjustment is the result of:

• an increase in sales of higher-margin products and IT solutions,
• higher than anticipated shortages of IT products in the markets in H1 2021 leading to higher prices and better margins,
• ability of the Group to grow significantly higher than the market itself. 

The significant assumptions of the forecasted results are the following:

• there will be no further lockdowns that may lead to the closure of retail stores and a significant reduction in consumer spending,
• the political situation in the markets in which the Group operates will not deteriorate and the financial situation in our main markets will be stable,
• there will be no significant decrease in demand or supply for IT products,
• the financial situation on the main ASBIS markets, i.e. in Russia, Ukraine, Kazakhstan, Belarus and Slovakia, will not deteriorate compared to 2020,
• there will be no significant devaluation of currencies in Russia, Belarus, Kazakhstan and Ukraine, and thus will not adversely affect these markets,
• there will be no significant disruptions in the general economic environment in other markets where the Company operates,
• there will be no significant drop in demand for high-margin products and solutions, both in terms of value-added distribution (VAD) and private label products,
• competition in all major segments will remain similar to 2020, there will be no significant new market participants,
• Group will continue to enjoy the same commercial terms with its key suppliers,
• the smartphone segment will not deteriorate by more than 10% compared to 2020, in the markets where the Group operates,
• there will be no significant problems with the availability of individual IT components. 

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 IT, 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.} 

^{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.     Prestigio (smart devices and accessories, innovative solutions for business and education, etc.)
    b.     Canyon (smart watches, power banks, accessories for computers and mobile devices)
    c.      Perenio (IoT platform, IoT routers, applications and peripherals for smart office/ home, smart health).}

^{3.     Complex solutions sales projects to large enterprises via extensive networks of System Integrators and Value Add Resellers.} 

^{ASBIS was founded in 1990 in Belarus, since 1995 operates from Cyprus. Company has two master distribution centers located in the Czech Republic and in the United Arab Emirates, subsidiaries in 27 countries, more than 2,000 employees and about, 20 000 active customers in 56 countries worldwide. In 2020, the Group delivered sales of nearly USD 2.4 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}