ASBISC ENTERPRISES : Published its Consolidated Interim Report for Q1 2024

ASBISc Enterprises Plc

INTERIM MANAGEMENT REPORT FOR THE THREE MONTHS ENDED 31 MARCH 2024

Limassol, May 9th, 2024

Table of Contents
Directors' report on the Company's and Group's operations	.................................................. 3
Part I: Interim Management Report	4
Part II: Financial Information	25

Directors' report on the Company's and Group's operations

We have prepared this report as required by 60 section 2 of the Regulation of the Ministry of Finance dated 29 March 2018 on current and periodic information to be published by issuers of securities and conditions of recognition of information required by the law of non-member country as equal.

Presentation of financial and other information

In this quarterly report, all references to the Company apply to ASBISc Enterprises Plc and all references to the Group apply to ASBISc Enterprises Plc and its consolidated subsidiaries. Expressions such as "we", "us", "our" and similar apply generally to the Group (including its particular subsidiaries, depending on the country discussed) unless from the context it is clear that they apply to the Company alone.

Financial and Operating Data

This quarterly report contains financial statements of, and financial information relating to the Group. In particular, this quarterly report contains our interim consolidated financial statements for the three months ended 31 March 2024. The financial statements appended to this quarterly report are presented in U.S. dollars and have been prepared in accordance with International Accounting Standard ("IAS") 34.

The functional currency of the Company is U.S. dollars. Accordingly, transactions in currencies other than our functional currency are translated into U.S. dollars at the exchange rates prevailing on the applicable transaction dates.

Certain arithmetical data contained in this quarterly report, including financial and operating information, have been subject to rounding adjustments. Accordingly, in certain instances, the sum of the numbers in a column or a row in tables contained in this quarterly report may not conform exactly to the total figure given for that column or row.

Currency Presentation

Unless otherwise indicated, all references in this quarterly report to "US$" or "U.S. dollars" are to the lawful currency of the United States; all references to "€" or the "Euro" are to the lawful currency of the member states of the European Union that adopt the single currency in accordance with the EC Treaty, which means the Treaty establishing the European Community (signed in Rome on 25 March 1957), as amended by the Treaty on European Union (signed in Maastricht on 7 February 1992) and as amended by the Treaty of Amsterdam (signed in Amsterdam on 2 October 1997) and includes, for this purpose, Council Regulations (EC) No. 1103/97 and No. 974/98; and all references to "PLN" or "Polish Zloty" are to the lawful currency of the Republic of Poland.

All references to U.S. dollars, Polish Zloty, Euro and other currencies are in thousands, except share and per share data, unless otherwise stated.

Forward-looking statements

This quarterly report contains forward-looking statements relating to our business, financial condition and results of operations. You can find many of these statements by looking for words such as "may", "will", "expect", "anticipate", "believe", "estimate" and similar words used in this quarterly report. By their nature, forward-looking statements are subject to numerous assumptions, risks and uncertainties. Accordingly, actual results may differ materially from those expressed or implied by the forward-looking statements. We caution you not to place undue reliance on such statements, which speak only as of the date of this quarterly report.

The cautionary statements set out above should be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue. We do not undertake any obligation to review or confirm analysts' expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date of this quarterly report.

Part I: Interim Management Report

1. Overview

ASBISc Enterprises Plc 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 Commonwealth of Independent States, the Middle East and North Africa, combining a broad geographical reach with a wide range of products distributed on a "one-stop-shop" basis. Our focus is on the following countries: Kazakhstan, Ukraine, Slovakia, Poland, Czech Republic, Romania, Croatia, Slovenia, Bulgaria, Serbia, Hungary, Middle East countries (i.e., United Arab Emirates, Qatar and other Gulf states) 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.

ASBISc commenced business in 1990 and in 1995 incorporated the parent Company in Cyprus and moved our headquarters to Limassol. Our Cypriot headquarters support, through two master distribution centres (located in the Czech Republic and the United Arab Emirates), our network of 31 warehouses located in 34 countries. This network supplies products to the Group's in-country operations and directly to its customers in approximately 60 countries.

The Company's registered and principal administrative office is at 1, Iapetou Street, 4101, Agios Athanasios, Limassol, Cyprus.

2. Executive summary for the three-month period ended 31 March 2024

Undoubtedly, the first quarter of 2024 was a challenging period for ASBIS in terms of supply and demand constraints in multiple markets of our operations. We faced an overflow of non-official imports of multiple product groups coming from unofficial distributors and channels. The products that came from these channels have a price advantage over our products. This is not a new situation for us but rather have faced this in the past, so we will definitely be able to cope with it.

Other factors that negatively affected our results in Q1 2024 were lower than expected sales in Ukraine, where we saw lower demand due to the continuation of the hostilities in the country causing a worse than we expected sentiment of Ukrainian consumers related to geopolitical uncertainty.

It is worth underlining that in the countries of Central and Eastern Europe like Slovakia, European IT transformation support programs ended in 2023. We hope that new programs will be implemented, but for now they have been postponed for various reasons. At this point, it is difficult for us to determine when new, large IT projects will commence, but if so, we will certainly take part in them.

Analyzing Q1 2024 results, revenues were USD 713.2 million (down 1.2% compared to Q1 2023). The gross profit margin decreased to 8.28% from 8.60% in Q1 2023. Operating profit (EBIT) decreased by 14.8% and reached USD

1. million, compared to USD 28.7 million in Q1 2023. The net profit was USD 14.0 million, as compared to USD

1. million in Q1 2023.

Quarter-over-quarter net sales decreased, mainly due to a decline in the Commonwealth of Independent States (CIS) region. The CIS and Central & Eastern Europe (CEE) regions remained the largest in Group's revenues.

In Q1 2024 multiple product lines recorded a decrease on a year-on-year basis. The leader of the Company's sales remained the smartphones, followed by CPUs and laptops.

A country-by-country analysis shows a decline in multiple main markets of our operation. However, in some particular countries like the United Arab Emirates, the Czech Republic and the Netherlands we generated significant year-on-year growth.

As regards our own brands, we are constantly developing and pushing them to generate higher revenues and gross profit.

AENO has continued its expansion in existing markets and also entered new ones. MENA region is under certification and ready to start sales. The brand's portfolio was replenished with new products like hair dryers. This brand increased sales in the WE region, Ukraine, Baltics, Bulgaria, the Czech Republic and built brand awareness. In the Czech Republic, the brand began to work with a new partner - with offline placement, same in Bulgaria, and the Baltic region.

Canyon continued the development of sales in the Central and Eastern Europe region and reached double-digit revenue growth year-on-year. Our focus on the African market resulted in doubling sales from the 4th quarter of 2023. Starting cooperation with gaming stores in South Africa with our gaming and PC peripherals, we have a good base for further development. Canyon has also strengthened its presence in Western Europe with the listing of PC and Audio accessories in Germany, enhancing accessibility and market visibility. In Poland, Canyon has expanded its sales footprint, establishing both online and offline channels to drive market penetration.

Prestigio solution achieved a solid growth in revenues and a very dynamic growth in gross profit, in comparison to Q1'2023. Prestigio has launched a new product category - tablets for business and education. Sales of the first model Virtuoso (PSTA101) started in January and showed good results in Q1'2024.

In Q1 2024 and in the period between 31st of March 2024 and the date of this report the Company experienced other important business events:

• ASBIS and Lenovo - a global technology leader, have expanded their partnership of infrastructure solutions in Central Asia. The partnership is aimed at penetrating the rapidly growing markets of Kazakhstan, Kyrgyzstan, and Uzbekistan.
• ASBIS has extended its distribution contract with ABBYY to Czechia. ASBIS has been distributing ABBYY solutions in Slovakia, Romania, Bosnia, Serbia, Ukraine, Greece, Cyprus, and Malta since the end of 2018.
• ASBIS has opened another iSpace store with Apple Authorized Reseller status in Tashkent, the capital of Uzbekistan. The newly opened store is the first in Uzbekistan, while the Group currently runs a total of 31 stores where Apple products can be purchased.
• ASBIS has signed a distribution agreement with Pantheone Audio, a renowned innovator in luxury audio solutions. Under this partnership, ASBIS will serve as a VAD for Pantheone Audio products across the Middle East and Africa region.
• ASBIS Poland has doubled its space in the Ideal-Idea City Park logistics center in Raszyn near Warsaw and currently manages 5,000 m2 of warehouse and office space.

On the 8th of May 2024, ASBIS published a financial forecast for 2024. ASBIS expects sales revenues in 2024 to range between USD 3.1 billion and USD 3.4 billion and net profit after tax between USD 60 million and USD 64 million.

In Q1 2024, based on the strong financial position of the Company, the Board of Directors decided to recommend to the Annual General Meeting of Shareholders the payment of a final dividend of USD 0.30 per share. Together

with the interim dividend paid in December 2023, the total dividend from 2023 profits reached USD 0.50 per share, the highest dividend paid to shareholders in the history of ASBIS.

In summary, taking into consideration a very demanding market environment, we assess the Group's results for Q1 2024 as very satisfactory.

The goal for 2024 is to maintain and even strengthen our market share in our main markets. We intend to invest in the development of our own products, but also in new business units, such as Breezy and Robotics, which have already been intensively developing for some time. This will allow us to build a strong foundation and competent teams for business development in the next 3-5 years.

The principal events of the three months ended 31 March 2024 were as follows (in US$ thousand):

• Revenues in Q1 2024 decreased by 1.2% to US$ 713,213 from US$ 721,992 in Q1 2023.
• Gross profit in Q1 2024 decreased by 4.8% to US$ 59,082 from US$ 62,066 in Q1 2023.
• Gross profit margin in Q1 2024 reached 8.28% from 8.60% in Q1 2023.
• Selling expenses in Q1 2024 increased by 6.1% to US$ 19,761 from US$ 18.631 in Q1 2023.
• Administrative expenses in Q1 2024 were flat and reached US$ 14,885 as compared to US$ 14,739 in Q1 2023.
• EBITDA in Q1 2024 decreased to US$ 26,566 in comparison to US$ 30,623 in Q1 2023.
• As a result of decreased revenues and gross profit and still high interest costs, the Company's net profit after taxation reached U.S. $ 14,003 as compared to U.S.$ 17,382 in Q1 2023.

The following table presents revenues breakdown by regions for Q1 2024 and Q1 2023 (in US$ thousand):

Region

Q1 2024

Q1 2023	YoY change

Commonwealth of Independent States	329,867	405,473	-18.6%
Central and Eastern Europe	187,176	159,975	17.0%
Middle East and Africa	121,358	91,849	32.1%
Western Europe	68,211	60,747	12.3%
Other	6,600	3,949	67.1%
Total	713,213	721,992	-1.2%

Definitions and use of Alternative Performance Measures:

Gross profit

Gross profit is the residual profit made after deducting the cost of sales from revenue.

Gross profit margin

Gross profit margin is calculated as the gross profit divided by revenue, presented as a percentage.

EBIT (Earnings Before Interest and Tax) is calculated as the Profit before Tax, Net financial expenses, other income/loss and share of profit/loss of equity-accounted investees, all of which are directly identifiable in financial statements

EBITDA

EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) is calculated as the Profit before Tax, Net financial expenses, Other income, Share of profit/loss of equity-accounted investees, Depreciation, Amortization, Goodwill impairment and Negative goodwill, all of which are directly identifiable in financial statements.

The use of the above Alternative Performance Measures ("APM") is made for the purpose of providing a more detailed analysis of the financial results.

3. Summary of historical financial data

The following data sets out our summary of historical consolidated financial information for the periods presented. You should read the information in conjunction with the interim condensed consolidated financial statements and results of operations contained elsewhere in this interim report.

For your convenience, certain US$ amounts as of and for the three months ended March 31st, 2024, and 2023, have been converted into Euro and PLN, based on the exchange rates provided by the National Bank of Poland:

	As at 31	Three months ended 31	As at 31	Three months ended 31
	March 2024	March 2024 average	March 2023	March 2023 average
USD/PLN	3.9886	3.9941	4.2934	4.3630
EUR/PLN	4.3009	4.3211	4.6755	4.7005

Balance sheet items have been translated using the exchange rate as at the reporting date, while income statement and cash flow statement items have been translated using the arithmetic average rate for the period.

	Three months ended 31 March 2024		Three months ended 31 March 2023
(in thousands)	USD	PLN	EUR		USD	PLN	EUR
Revenue	713,213	2,848,668	659,246	721,992	3,150,027	670,152
Cost of sales	(654,131)	(2,612,686)	(604,635)		(659,926)	(2,879,235)	(612,542)
Gross profit	59,082	235,981	54,611	62,066	270,792	57,610
Gross profit margin	8.28%			8.60%
Selling expenses	(19,761)	(78,928)	(18,266)	(18,631)	(81,286)	(17,293)
Administrative expenses	(14,885)	(59,453)	(13,759)		(14,739)	(64,306)	(13,681)
Profit from operations	24,436	97,601	22,587	28,696	125,200	26,636
Financial income	883	3,527	816	922	4,023	856
Financial expenses	(8,389)	(33,507)	(7,754)	(9,038)	(39,432)	(8,389)
Realized foreign exchange loss
relating to foreign operations
liquidated	(10)	(40)	(9)	-	-	-
Share of loss of equity-accounted
investees	(115)	(459)	(106)	(69)	(301)	(64)
Other gains and losses	186	743	172		386	1,684	358
Profit before taxation	16,991	67,864	15,705	20,897	91,173	19,397
Taxation	(2,988)	(11,934)	(2,762)	(3,515)	(15,336)	(3,263)
Profit after taxation	14,003	55,930	12,943	17,382	75,837	16,134

EBITDA calculation
	USD	PLN	EUR	USD	PLN	EUR
Profit before tax	16,991	67,864	15,705	20,897	91,173	19,397
Add back:

Financial expenses/net

Other income

Share of loss of equity-accounted investees

(7,516)	(30,020)	(6,947)	8,116	35,410	7,533
186	743	172	386	1,684	358
(115)	(459)	(106)	(69)	(301)	(64)

EBIT for the period	24,436	97,601	22,587	28,695	125,195	26,635
Depreciation	2,024	8,084	1,871	1,593	6,950	1,479
Amortization	106	423	98	334	1,457	310
EBITDA for the period	26,566	29,620	6,855	30,622	133,603	28,423

Attributable to:
Non-controlling interests	(70)	(280)	(65)	(69)	(301)	(64)
Owners of the Company	14,073	56,209	13,008		17,451	76,138	16,198
	14,003	55,930	12,943	17,382	75,837	16,134
	USD cents	PLN grosz	EUR cents		USD cents	PLN grosz	EUR cents

Basic and diluted earnings per
share from continuing operations	25.36	101.29	23.44	31.63	138.00	29.36
	Three months ended 31 March 2024		Three months ended 31 March 2023
(in thousands)	USD	PLN	EUR		USD	PLN	EUR
Net cash movement from operating
activities	(41,514)	(165,812)	(38,373)	(100,012)	(436,349)	(92,831)
Net cash movement from investing
activities	(3,503)	(13,991)	(3,238)	(3,838)	(16,745)	(3,562)
Net cash movement from financing
activities	12,676	50,630	11,717	5,274	23,010	4,895
Net movement in cash and cash
equivalents	(32,342)	(129,178)	(29,895)	(98,576)	(430,084)	(91,498)
Cash at the beginning of the period	108,306	432,589	100,111	92,352	402,929	85,721
Cash at the end of the period	75,964	303,410	70,216	(6,224)	(27,155)	(5,777)
	As at 31 March 2024			As at 31 December 2023
(in thousands)	USD	PLN	EUR		USD	PLN	EUR
Current assets	957,238	3,818,039	887,730	931,214	3,664,327	842,762
Non-current assets	82,440	328,820	76,454	81,264	319,774	73,545
Total assets	1,039,678	4,146,860	964,184	1,012,478	3,984,101	916,307
Current liabilities	716,674	2,858,526	664,634	715,549	2,815,685	647,582
Non-current liabilities	28,954	115,486	26,852		15,717	61,846	14,224
Total liabilities	745,628	2,974,012	691,486	731,266	2,877,532	661,806
Equity	294,050	1,172,848	272,698	281,212	1,106,569	254,501

4.	Organization of ASBIS Group
The following table presents our corporate structure as at March 31st, 2024:
	Company	Consolidation
		Method
ASBISC Enterprises PLC	Mother company
Asbis Ukraine Limited (Kyiv, Ukraine)	Full (100%)
Asbis Poland Sp. z o.o. (Warsaw, Poland)	Full (100%)
Asbis Romania S.R.L (Bucharest, Romania)	Full (100%)
Asbis Cr d.o.o (Zagreb, Croatia)	Full (100%)
Asbis d.o.o Beograd (Belgrade, Serbia)	Full (100%)
Asbis Hungary Commercial Limited (Budapest, Hungary)	Full (100%)
Asbis Bulgaria Limited (Sofia, Bulgaria)	Full (100%)
Asbis CZ,spoI.s.r.o (Prague, Czech Republic)	Full (100%)
UAB Asbis Vilnius (Vilnius, Lithuania)	Full (100%)
Asbis Slovenia d.o.o (Trzin, Slovenia)	Full (100%)
Asbis Middle East FZE (Dubai, U.A.E)	Full (100%)
Asbis SK sp.l sr.o (Bratislava, Slovakia)	Full (100%)
ASBC F.P.U.E. (Minsk, Belarus)	Full (100%)
E.M. Euro-Mall Ltd (Limassol, Cyprus)	Full (100%)
Asbis Morocco Sarl (Casablanca, Morocco)	Full (100%)
Prestigio Plaza Ltd (Limassol, Cyprus)	Full (100%)

Perenio IoT spol. s.r.o. (Prague, Czech Republic)	Full (100%)
Asbis Kypros Ltd (Limassol, Cyprus)	Full (100%)
"ASBIS BALTICS" SIA (Riga, Latvia)	Full (100%)
Asbis d.o.o. (Sarajevo, Bosnia Herzegovina)	Full (90%)
ASBIS Close Joint-Stock Company (Minsk, Belarus)	Full (100%)
ASBIS Kazakhstan LLP (Almaty, Kazakhstan)	Full (100%)
Euro-Mall SRO (Bratislava, Slovakia)	Full (100%)
Asbis China Corp. (former Prestigio China Corp.) (Shenzhen, China)	Full (100%)
EUROMALL BULGARIA EOOD (Sofia, Bulgaria)	Full (100%)
E-Vision Production Unitary Enterprise (Minsk, Belarus)	Full (100%)
iSupport Ltd (Kiev, Ukraine) (former ASBIS SERVIC Ltd)	Full (100%)
I ON LLC (Kiev, Ukraine)	Full (100%)
ASBC MMC LLC (Baku, Azerbaijan)	Full (65.85%)
ASBC KAZAKHSTAN LLP (Almaty, Kazakhstan)	Full (100%)
Atlantech Ltd (Ras Al Khaimah, U.A.E)	Full (100%)
ASBC LLC (Tbilisi, Georgia)	Full (100%)
Real Scientists Limited (London, United Kingdom)	Full (55%)
i-Care LLC (Almaty, Kazakhstan)	Full (100%)
ASBIS IT Solutions Hungary Kft. (Budapest, Hungary)	Full (100%)
Breezy LLC (Minsk, Belarus) (former Café-Connect LLC)	Full (100%)
MakSolutions LLC (Minsk, Belarus)	Full (100%)
Breezy Kazakhstan TOO (Almaty, Kazakhstan) (former TOO "ASNEW")	Full (100%)
Breezy LLC (Kyiv, Ukraine)	Full (100%)
I.O.N. Clinical Trading Ltd (Limassol, Cyprus)	Full (100%)
R.SC. Real Scientists Cyprus Ltd (Limassol, Cyprus)	Full (85%)
ASBIS CA LLC (Tashkent, Uzbekistan)	Full (100%)
Breezy Service LLC (Kyiv, Ukraine)	Full (100%)
Breezy Trade-In Ltd (Limassol, Cyprus) (former Redmond Europe Ltd)	Full (91.15%)
SIA Joule Production (Riga, Latvia)	Full (100%)
ASBC LLC (Yerevan, Armenia)	Full (100%)
Breezy Georgia LLC (Tbilisi, Georgia)	Full (100%)
ASBC Entity OOO (Tashkent, Uzbekistan)	Full (100%)
ACEAN.PL Sp. z o.o (Warsaw, Poland)	Full (100%)
Entoliva Ltd (Limassol, Cyprus)	Full (100%)
ASBIS HELLAS SINGLE MEMBER S.A. (Athens, Greece)	Full (100%)
Prestigio Plaza Kft (Budapest, Hungary)	Full (100%)
ASBC SRL (Chisinau, Moldova)	Full (100%)
Breezy-M SRL (Chisinau, Moldova)	Full (100%)
Breezy Poland Sp. z o.o. (Warsaw, Poland)	Full (100%)
ASBIS AM LLC (Yerevan, Armenia)	Full (100%)
ASBIS Georgia LLC (Tbilisi, Georgia)	Full (100%)
ASBIS AZ LLC (Baku, Azerbaijan)	Full (100%)
ASBIS s.r.l. (Chisinau, Moldova)	Full (100%)
Asbis Africa (Pty) Ltd (Johannesburg, South Africa)	Full (100%)
ASBC Morocco s.a.r.l. (Morocco, Casablanca)	Full (100%)
Sarovita Ltd (Limassol, Cyprus)	Full (100%)
ASBC South Africa (Pty) Ltd (Johannesburg, South Africa)	Full (100%)