Asbisc Enterprises Plc · GPW:ASB
Asbisc Enterprises — Q3 2024 Earnings Presentation
32 slides from Asbisc Enterprises's earnings presentation, Nov 7, 2024
Slide 1: Q3 and 9M 2024 Presentation
Q3 and 9M 2024 Presentation DESPITE THE DIFFICULTIES - WE STRIVE TO MEET THE FORECAST 7 NOVEMBER 2024
Slide 2: Disclaimer
2 Disclaimer • This presentation (the “Presentation”) was prepared by ASBISc Enterprises Plc (the “Company”) with a due care. Still, it may contain certain inconsistencies or omissions. The Presentation does not contain a complete or thorough financial analysis of the Company and does not present it
Slide 3: Agenda
Agenda 01. 02. 03. 04. 05. KEY FINANCIAL 2024 2025 BACK-UP CORPORATE RESULTS FORECAST OUTLOOK EVENTS REALIZATION
Slide 4: ASBIS Business Directions
ASBIS BUSINESS DIRECTIONS 16,000 Serve 19,000 8 solution Resellers Enterprises categories Sell Thru 34 Apple stores #1 15 7,400 POS 6 B&O stores in CIS
Slide 5: Key corporate events
5 Key corporate events Breezy will cooperate ASBIS expanded its Interim dividend with RTV EURO AGD gaming brand payment chain In Poland Lorgar Breezy, a subsidiary of ASBIS has doubled the The BOD decided to ASBIS signed a number of product lines of pay an interim cooperation agreement its gaming br
Slide 6: Monthly estimated revenues
Monthly estimated revenues MONTHLY REVENUES (US$ m) +0.2% YoY sales growth in July 2024 despite difficult situation in 350,0 our major markets. 300,0 250,0 200,0 150,0 -5% -12% 100,0 50,0 YoY sales decline in YoY sales decline in August 2024 – as a September 2024 – the - result of record-high ongoin
Slide 7: Agenda
Agenda 01. 02. 03. 04. 05. KEY FINANCIAL 2024 2025 BACK-UP CORPORATE RESULTS FORECAST OUTLOOK EVENTS REALIZATION
Slide 8: New market realities in Kazakhstan negatively affected our results in Q3 and 9M 2024
8 New market realities in Kazakhstan negatively affected our results in Q3 and 9M 2024 The actions taken by ASBIS and authorities to address the issues in Kazakhstan: • On August 14th the United States Agency for International Development (USAID) and U.S. Ambassador delivered advanced computer serve
Slide 9: Financial Highlights
9 Financial Highlights REVENUES GROSS PROFIT Another -6% YoY -10% YoY extremely $723 M $55 M demanding quarter GROSS PROFIT -57%YoY > Q3 2024 MARGIN $9.5 M 7.64% NET INCOME
Slide 10: EBIT and net income negatively impacted by extremely difficult market conditions
10 EBIT AND NET INCOME negatively impacted by extremely difficult market conditions EBIT (US$ M) NET INCOME (US$ M) -32% 28,7 22,2 20,1 17,4 38,0 34,7 29,2 28,7 14,0 27,8 11,2 24,4 9,5 21,3 19,0 15,3 6,1 2,1 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2022 2023 2023 2023 2023 2024 202
Slide 11: Poland strengthens its position in the TOP 10
11 KEY COUNTRIES’ REVENUES (US$ m) 600 500 484 Poland 400 345 strengthens its 300 258 299 257 241 position in the 200 165 195 TOP 10 105 102 98 95 103 81 78 69 77 9M 2024 VS 9M 2023 100 64 60 43 0 Kazakhstan Ukraine United Arab Slovakia Poland Azerbaijan Germany Czech Republic Georgia Netherlands Em
Slide 12: Q3 2024 the CIS region has negatively impacted revenues
12 REVENUES BY REGIONS (USD m) Q3 2024 the CIS region has negatively impacted revenues Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 • CIS (without BY and RU) and CEE CIS CEE MEA WE Other regions contributed the majority of the Group’s revenues. US$ m Q3‘24 Q3‘23 YoY • Decl
Slide 13: Q3 2024 another record-high quarter for smartphones
13 REVENUES BY PRODUCT LINES (US$ m) Q3 2024 another record-high quarter for smartphones Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 • Debut of new models of iPhone 16 Smartphones CPUs HDDs Laptops SSD Other on some of the markets where we are an authorized distributor of
Slide 14: Satisfactory gross profit margin
14 Satisfactory gross profit margin REVENUES (US$ M) GROSS PROFIT MARGIN (%) -6% 893 780 772 9,06% 699 722 713 723 8,60% 674 646 8,01% 8,04% 7,99% 8,33% 8,28% 7,97% 7,64% Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2022 2023 2023 2023 2023
Slide 15: SG&A costs
15 SG&A costs NUMBER OF EMPLOYEES SG&A COSTS 45,0 5,6% 6,0% 2 787 2 822 2 803 4,4% 4,6% 4,9% 4,4% 4,9% 5,0% 2 522 2 627 2 673 40,0 4,2% 2 485 5,0% 2 191 2 222 35,0 3,8% 30,0 34,6 36,1 36,2 4,0% 25,0 39,7 33,9 3,0% 20,0 32,7 33,4 32,8 15,0 2,0% 26,8 10,0 1,0% 5,0 0,0 0,0% Q3 2022 Q4 2022 Q1 2023 Q2 2
Slide 16: Extremely challenging Q3 and 9M 2024
16 Extremely challenging Q3 and 9M 2024 Decline in top- US$ m Q3’24 Q3’23 YoY US$ m 9M‘24 9M‘23 YoY line both in Q3 Revenue 722.5 771.8 -6% Revenue 2,081.6 2,167.9 -4% and the 9M 2024 Gross profit 55.2 61.7 -10% Gross profit 165.8 177.9 -7% mainly due to a grey market and Gross profit margin 7.64% 7
Slide 17: Cash engaged in working capital
17 NET WORKING CAPITAL (US$ m) NWC: 19% of sales NWC: 23% of sales Cash engaged in 411 497 working capital 373 313 Q3'24 Q3'23 -321 -374 Inventories Trade receivables Trade payables • High NWC utilization results in the need to involve more cash. US$ m 9M2024 9M2023 • Inventories have significantly
Slide 18: Indebtedness at safe level
18 Indebtedness at safe level US$ m 30/09/24 30/09/23 YoY Short term borrowings (excl. leases and factoring) 131.6 137.7 -4% Long term borrowings (excl. leases) 13.9 0.5 - Other long-term liabilities 0.9 1.0 -5% Strong increase in The weighted Cash and cash equivalents 106.2 74.4 43% cash position i
Slide 19: Agenda
Agenda 01. 02. 03. 04. 05. KEY FINANCIAL 2024 2025 BACK-UP CORPORATE RESULTS FORECAST OUTLOOK EVENTS REALIZATION
Slide 20: Realization of the forecast for 2024
20 Realization of the forecast for 2024 RESULTS VS FORECAST NET INCOME REVENUES (US$ bn) NET INCOME (US$ m) Directors do their Between best to deliver the USD 60m and announced USD 64m financial forecast Forecast revenues Forecast net 3.1 for 2024 60 income for 2024 for this year. Actual revenues Ac
Slide 21: Agenda
Agenda 01. 02. 03. 04. 05. KEY FINANCIAL 2024 2025 BACK-UP CORPORATE RESULTS FORECAST OUTLOOK EVENTS REALIZATION
Slide 22: 2025 outlook
22 At ASBIS we continue to 2025 outlook strive for more. We will do our best to beat 2024 results in PRODUCTS MARKETS CLIENTS FINANCIAL 2025. • New Apple • Continue focus • Continued • Lower SG&A products on CIS focus on costs following introduction countries business cost-cutting • More emphasis •
Slide 23: Key 2025 risks and opportunities
23 Key 2025 risks and opportunities RISKS OPPORTUNITIES • Unstable geopolitical situation • Rebound in consumer in Europe and Asia demand • Illicit trading and new • New EU and government regulations funds for IT programs • Supply chain disruptions • Potential M&As • Volatile FX environment • Fast g
Slide 24: Dividend payments to be continued
24 Dividend payments to be continued DIVIDENDS PER SHARE (USD) 0,5 0,45 0,30 0,30 The Company aims to continue 0,135 the payment of 0,1 hefty dividends. 0,06 0,2 0,2 0,2 0,03 0,1 0,05 0,06 from 2016 NI from 2017 NI from 2018 NI from 2019 NI from 2020 NI from 2021 NI from 2022 NI from 2023 NI* * Inte
Slide 25: Q&A
Q&A
Slide 26: Agenda
Agenda 01. 02. 03. 04. 05. KEY FINANCIAL 2024 2025 BACK-UP CORPORATE RESULTS FORECAST OUTLOOK EVENTS REALIZATION
Slide 27: Premium Retail Business
27 Premium Retail Business 34 34 iSpace stores in 7 countries 7 Ukraine 11 1 Kazakhstan Moldova 2 6 Georgia 6 6 Bang & Olufsen stores in 3 countries Armenia 3 4 Azerbaijan 1 Uzbekistan 3 Cyprus iSpace is a network of premium retail stores and Apple’s official partner with Apple Premium Partner statu
Slide 28: ASBIS own brands
28 ASBIS own brands Prestigio Solutions Canyon is a Prestigio is an specializes in the dynamically growing international brand that Lorgar is a brand of has been offering a AENO is a young production and delivery brand of high-quality gaming devices aimed wide range of dynamic brand of smart of inno
Slide 29: AROS Engineering
29 AROS ENGINEERING Summary of 9M 2024 • AROS has continued implementing its new strategy meaning custom robotic applications focused on BEU (business end-user. • AROS has invested in: • 3D modelling design software. • 3D simulation software. • Project planning software. • Custom robotic palletizing
Slide 30: Sustainable solutions for electronics
30 Sustainable solutions for electronics Breezy in numbers • Breezy launched a retail in Moldova and continued selling its refurbished gadgets there. • Breezy started of refurbished iPhone 7 200+ sales in Ukraine and Kazakhstan. • Breezy expanded its partnership Countries Employees network by adding
Slide 31: Shareholder structure
31 Shareholder structure Affiliation to indexes: Number of shares % of share capital & votes & votes KS Holdings Ltd * 20,448,127 36.84% Zbigniew Juroszek** 2,797,625 5.04% Free-float 32,254,248 58.12% TOTAL 55,500,000 100.00% As of : 2024-11-07 *Siarhei Kostevitch holds shares as the sole sharehold
Slide 32: Thank you
Thank you CONTACT FOR INVESTORS: Constantinos Tziamalis Bartosz Basa Deputy CEO IR Manager +357 25857188 +48 691 910 760 costas@asbis.com b.basa@asbis.com CONTACT FOR MEDIA: Iwona Mojsiuszko Managing Director of 8Sense PR +48 502 344 992 iwona.mojsiuszko@8sensepr.pl