ASBISc Enterprises : Published its Consolidated Interim Report for H1 2022

ASBISc Enterprises Plc

INTERIM REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2022

Limassol, 11 August 2022

TABLE OF CONTENTS

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PART I	INTERIM MANAGEMENT REPORT	4
PART II	FINANCIAL STATEMENTS	31

DIRECTORS' REPORT ON THE COMPANY'S AND GROUP'S OPERATIONS

We have prepared this report as required by Paragraph 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 six-month 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 six-month report contains financial statements of, and financial information relating to the Group. In particular, this six-month report contains our interim consolidated financial statements for the six months ended 30 June 2022. The financial statements appended to this six-month 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 six-month 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 six-month report may not conform exactly to the total figure given for that column or row.

Currency Presentation

Unless otherwise indicated, all references in this six month report to "U.S. $" 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 six-month 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 six-month 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 six-month 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 six-month report.

Part I Interim Management Report

1. Overview

ASBISc Enterprises Plc is one of the leading distributors of Information Technology ("IT") products in Europe, the Middle East and Africa ("EMEA") Emerging Markets: Central and Eastern Europe, the Baltic States, the Former Soviet Union, the Middle East and Africa, combining a broad geographical reach with a wide range of products distributed on a "one-stop-shop" basis. Our main 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, Canyon, Perenio, Lorgar and Aeno.

ASBISc commenced business in 1990 and since 1995 we incorporated our holding 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 27 countries. This network supplies products to the Group's in-country operations and directly to its customers in approximately 56 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- and six-month periods ended June 30th, 2022

The second quarter of 2022 was the first full three-month period in which the consequences of the war between Russia and Ukraine, following Russia's invasion in Ukraine, have been fully visible.

After the record-breaking net profitability in Q1 2022, ASBIS has continued its strategy to focus on profitability and regaining some of the lost revenues from the markets affected by the war.

Thanks to the broad geographic coverage, strong market position, contingency plan and experienced gained from the war in Crimea in 2014, ASBIS was able to partially offset the negative effects of the war in Ukraine. We have invested and developed dynamically in non-conflict markets, in particular: Kazakhstan, Azerbaijan, Georgia and Armenia. These countries have good development potential for ASBIS. We also have been doing very well in the Middle East and Central Europe and in certain of these countries the revenues have exceeded our expectations.

Since April 2022, sales in Ukraine have resumed, grown month by month.

In Q2 2022 revenues reached USD 516.4 million (down 24.1%, compared to Q2 2021). Operating profit (EBIT) decreased by 13.7% and reached USD 19.4 million, compared to USD 22.6 million in Q2 2021. Net profit has decreased by 26.3%, reaching USD 11.1 million, compared to USD 15.0 million a year earlier. In Q2 2022, the gross profit margin skyrocketed to a new record high of 9.35% from 6.94% in Q2 2021.

In H1 2022, ASBIS generated revenues of USD 1,211 million (down only 14.3%, compared to H1 2021) and earned a net profit after tax of USD 27.1 million, a decrease of 10.1% as compared to the same period of last year.

A country-by-country analysis confirms that the major decrease in sales in Q2 2022 was noted in the markets directly affected by the war in Ukraine. On the other hand, though, the Company was able to increase sales in non-conflict markets, like:

• Armenia - a growth of 246.1%
• Azerbaijan - a growth of 87.8%
• Georgia - a growth of 85.7%
• Kazakhstan - a growth of 49.7%
• United Arab Emirates - a growth of 45.8%

In Q2 2022, the Company experienced several important business events:

• ASBIS has extended the agreement with Vertiv to distribute their solutions in Algeria and Tunisia. ASBIS has distributed Vertiv products in Romania, Bulgaria, Cyprus, Lithuania, Latvia, and Estonia since the end of 2021
• ASBIS has donated new mobile X-ray equipment to Chernihiv's regional hospital. Since the beginning of the conflict ASBIS has provided humanitarian aid to Ukraine including numerous essential items, first aid kits, power generators, transport vehicles
• ASBIS has signed a distribution agreement with ExaGrid - a new partner in backup storage solutions. ExaGrid offers award-winning Tiered Backup Storage, which consists of seven appliance models that can be mixed and matched to fit customers' needs and allow them to scale out in the future
• ASBIS has extended its distribution contract with Pure Storage to Greece. ASBIS and Pure Storage began their partnership back in 2018, when the companies agreed to cooperate over Kazakhstan, Ukraine, Georgia, Armenia, Azerbaijan, Baltic States, and Central Asia. In 2021 the list was extended to include Cyprus, Bulgaria, North Macedonia, and Kosovo. The partnership now expands to Greece, making ASBIS the sole distributor of Pure Storage products in the country
• ASBIS handed over another 10 ambulances to the cities of Ukraine that required them the most. Ambulances were fully equipped with special medical equipment. In addition, a significant number of medications has been added to each of the vehicles, which is necessary for the provision of emergency medical care on the ground
• ASBIS has signed a distribution agreement with Edgecore Networks, adding industry-leading hardware and software products to its growing portfolio of networking solutions. The agreement covers the EMEA region and includes all countries where ASBIS operates
• ASBIS has opened a new APR store in Batumi, Georgia.

In Q2 2022, the Company continued its dividend policy paying a final dividend of USD 0.10 per share. Thus, the grand total for dividends from the Company's 2021 profits (including the interim dividend pay-out in December last year) amounted to USD 0.30 per share, which means the highest dividend in the Company's history. We will continue our stable and reasonable dividend policy.

It is worth mentioning that ASBIS strongly supports the Ukrainian people in the fight for their independence. So far, we have already allocated more than EUR 2 million, supplying the most needed products, including twenty fully equipped ambulances, regions and hospitals most in need.

We plan to continue our support for Ukraine and we strongly believe that we will take part in its reconstruction of the IT sector because IT equipment and mobile communication technologies are now the most needed products and solutions.