Slide 1: Q2 and H1 2024 Presentation
Q2 and H1 2024 Presentation DESPITE EXTREMELY DIFFICULT MARKET CONDITIONS, WE REMAIN POSITIVE TO DELIVER THE FORECAST 8 AUGUST 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 DIVIDEND BACK-UP CORPORATE RESULTS FORECAST PAYMENT EVENTS REALIZATION
Slide 4: Key corporate events
4 Key corporate events Breezy entered the New iSpace stores Final dividend Azerbaijan market opened payment Breezy, a subsidiary of ASBIS has opened The Company paid ASBISc Enterprises another three new out a final dividend Plc. started operations iSpace stores, extending from 2023 earnings in Azerb
Slide 5: Monthly estimated revenues
Monthly estimated revenues MONTHLY REVENUES (US$ m) +5% YoY revenue growth in April 2024 – expected revenues 350,0 growth. 300,0 250,0 200,0 150,0 +2% -15% 100,0 50,0 YoY sales growth in YoY sales decrease in May 2024 – we set June 2024 – record- - another record for high June revenues best May ever
Slide 6: Distribution Centers
6 4 Distribution Centers ▪ Czech Republic ▪ UAE ▪ South Africa ▪ Georgia ▪ Kazakhstan (under construction) More than 60K sq.m. of storage space across EMEA 30+ stock points in countries of ASBIS presence Subsidiaries in more than 30 countries of EMEA ▪ Central & Eastern Europe ▪ Baltic States ▪ Cauc
Slide 7: Agenda
Agenda 01. 02. 03. 04. 05. KEY FINANCIAL 2024 DIVIDEND BACK-UP CORPORATE RESULTS FORECAST PAYMENT EVENTS REALIZATION
Slide 8: Illicit trading in Kazakhstan negatively affected our results in Q2 and H1 2024
8 Illicit trading in Kazakhstan negatively affected our results in Q2 and H1 2024 The source of the issue in Kazakhstan: • overflow of non-official imports of multiple products coming from unofficial distributors and channels mainly from Japan and China. • The new legislations concerning the consume
Slide 9: Financial Highlights
9 Financial Highlights REVENUES GROSS PROFIT -4% YoY -5% YoY Super $646 M $51 M challenging quarter GROSS PROFIT -46%YoY > Q2 2024 MARGIN $6.1 M 7.97% NET INCOME
Slide 10: EBIT and net income negatively impacted by extremely difficult market conditions
10 EBIT AND NET INCOME negatively impacted by extremely difficult market conditions EBIT (US$ M) NET INCOME (US$ M) -28% 28,7 22,2 38,0 20,1 34,7 17,4 29,2 28,7 27,8 24,4 14,0 21,3 11,1 11,2 19,5 15,3 6,1 2,1 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 11: Key countries' revenues
11 KEY COUNTRIES’ REVENUES (US$ m) 350 322 300 United Arab 250 247 Emirates 200 168 162 187 remained the 150 143 105 120 runner-up 100 69 70 50 62 54 61 61 51 47 45 43 57 H1 2024 VS H1 2023 23 0 Kazakhstan United Arab Ukraine Slovakia Germany Poland Azerbaijan Czech Republic Netherlands Georgia Emir
Slide 12: Revenues by regions
12 REVENUES BY REGIONS (USD m) Q2 2024 sales decreased, mainly due to a strong decline in the CIS region • CIS (without BY and RU) and CEE Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 regions contributed the majority of the CIS CEE MEA WE Other Group’s revenues. US$ m Q2‘2
Slide 13: Revenues by product lines
13 REVENUES BY PRODUCT LINES (US$ m) Q2 2024 another best quarter for smartphones • Smartphones hit another quarter with Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Smartphones CPUs HDDs Laptops SSD Other best sales despite challenges in our main markets. US$ m Q2‘24 Q2‘2
Slide 14: Satisfactory and sustainable gross profit margin
14 Satisfactory and sustainable gross profit margin REVENUES (US$ M) GROSS PROFIT MARGIN (%) -4% 893 780 772 9,35% 722 713 9,06% 699 674 646 8,04% 8,33% 7,97% 516 8,60% 8,28% 8,01% 7,99% Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q
Slide 15: SG&A costs
15 SG&A costs NUMBER OF EMPLOYEES SG&A COSTS 45,0 5,6% 6,0% 4,4% 5,6% 4,6% 4,9% 4,4% 40,0 4,2% 4,9% 5,0% 2 787 2 822 35,0 3,8% 2 522 2 627 2 673 2 485 30,0 4,0% 2 190 2 191 2 222 25,0 3,0% 20,0 36,1 15,0 28,8 26,8 32,7 33,4 32,8 33,9 39,7 34,6 2,0% 10,0 1,0% 5,0 0,0 0,0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 16: Super challenging Q2 and H1 2024
16 Super challenging Q2 and H1 2024 US$ m Q2’24 Q2’23 YoY US$ m H1‘24 H1‘23 YoY Slight decline Revenue 645.9 674.1 -4% Revenue 1,359.1 1,396.1 -3% in top-line both in Gross profit 51.5 54.2 -5% Gross profit 110.6 116.2 -5% Q2 and H1 2024 despite huge Gross profit margin 7.97% 8.04% -0.07 ppt Gross p
Slide 17: Cash engaged in working capital
17 NET WORKING CAPITAL (US$ m) NWC: 34.7% of sales NWC:32.6% of sales Cash engaged in 443 494 working capital 319 271 Q2'24 -241 Q2'23 -358 Inventories Trade receivables Trade payables • High NWC utilization results in the need to involve more cash. US$ m H12024 H12023 • Inventories have significant
Slide 18: Indebtedness at safe level
18 Indebtedness at safe level US$ m H1’24 H1’23 YoY Short term borrowings (excl. leases and factoring) 137.6 124.4 11% Long term borrowings (excl. leases) 13.7 0.8 1.613% Other long-term liabilities 1.0 0.9 7% The Company's The weighted Cash and cash equivalents 58.9 66.2 -11% ability to access aver
Slide 19: Agenda
Agenda 01. 02. 03. 04. 05. KEY FINANCIAL 2024 DIVIDEND BACK-UP CORPORATE RESULTS FORECAST PAYMENT EVENTS REALIZATION
Slide 20: On track to deliver the 2024 guidance
20 On track to deliver the 2024 guidance RESULTS VS FORECAST NET INCOME REVENUES (US$ bn) NET INCOME (US$ m) Directors remain Between optimistic on the USD 60m and delivery of the USD 64m announced Forecast revenues for 2024 Forecast net income for 2024 financial forecast 3.1 60 for this year Actual
Slide 21: Agenda
Agenda 01. 02. 03. 04. 05. KEY FINANCIAL 2024 DIVIDEND BACK-UP CORPORATE RESULTS FORECAST PAYMENT EVENTS REALIZATION
Slide 22: Highest dividend payment
22 Highest dividend payment DIVIDENDS PER SHARE (USD) 0,5 0,45 0,30 The Company 0,30 wants to continue the payment of 0,135 the hefty 0,1 dividends in 0,06 0,2 0,2 0,2 0,03 0,1 years to come. 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 20
Slide 23: Q&A
Q&A
Slide 24: Agenda
Agenda 01. 02. 03. 04. 05. KEY FINANCIAL 2024 DIVIDEND BACK-UP CORPORATE RESULTS FORECAST PAYMENT EVENTS REALIZATION
Slide 25: Premium Retail Business
25 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 26: ASBIS own brands
26 ASBIS own brands Prestigio Solutions Canyon is a Perenio is a tech brand, Prestigio is an specializes in the dynamically growing specializing in the international brand that has been offering a AENO is a young Lorgar is a brand of production and delivery brand of high-quality IoT and created a wi
Slide 27: AROS Engineering
27 AROS ENGINEERING Summary of H1 2024 • AROS has further developed its business. • The core business of AROS will be custom robotic applications focused on BEU (business end-user). • AROS has decided to move from a distribution model to integration to make a new Business Unit a Hub of Engineering.
Slide 28: Sustainable solutions for electronics
28 Sustainable solutions for electronics Breezy in numbers • Breezy expanded its operations to Azerbaijan. • Breezy launched Apple Authorized Trade-In diagnostics for its partners, 7 200+ the first in Europe, and implemented a new AI+Human Trade-In evaluation by photos, which significantly reduces C
Slide 29: ASBIS Green Energy Solutions
29 ASBIS GREEN ENERGY SOLUTIONS We provide top-quality, innovative products and reliable technical support, ensuring plenty of chances for partnership and growth. Sub-Distributed brands
Slide 30: Shareholder structure
30 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 : 2024-08-08 *Siarhei Kostevitch holds shares as the sole sharehold
Slide 31: 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