Limassol, Cyprus, 27

March 2024

CONSOLIDATED

NON-FINANCIAL

REPORT FOR 2023

ASBISC ENTERPRISES PLC

Table of Contents

LETTER FROM THE CEO .............................................................. 3

ABOUT THE REPORT ................................................................... 4

BUSINESS MODEL ........................................................................ 6

STRATEGIC CAPITALS’ DEVELOPMENT ................................. 14

CORPORATE GOVERNANCE ..................................................... 20

STAKEHOLDERS AND MATERIALITY ....................................... 27

HUMAN CAPITAL AND EMPLOYEE POLICIES ......................... 31

INTELLECTUAL CAPITAL ........................................................... 37

SOCIAL CAPITAL AND POLICIES .............................................. 40

HUMAN RIGHTS AND POLICIES ................................................ 43

NATURAL CAPITAL AND ENVIRONMENTAL POLICIES .......... 47

POLICIES AGAINST BRIBERY AND CORRUPTION .................. 63

RISK MANAGEMENT ................................................................... 65

NON-FINANCIAL INDICATORS & GRI & IIRC & SASB &

TCFD ALIGNMENT ...................................................................... 70

Consolidated Non-financial Report of ASBISc Enterprises Plc for 2023

Letter from the CEO

ASBIS remains

true to its values

Dear Stakeholders,

It is with great pleasure that I present ASBIS’

seventh Consolidated Non-financial Report.

2023 has been another year in a row, during which

ASBIS’ business model flexibility has proven of

crucial importance. Before the unprecedented

attack on Ukraine in February 2022, Russia has

been ASBIS’ largest market for years. In 2022, we

decided to cease all activity there and took all

necessary steps to meet the requirements of

sanctions on Russia as well as Belarus. 2023

results have been negatively affected by closing

down ASBIS’ operations in that country. We thus

remained true to our values and stood up for

human rights. We continue to operate in Ukraine,

supporting its economy and people to the best of

our abilities.

Despite these turbulences, in 2023 ASBIS further

strengthened its business, geographical presence

(high growth rates in Kazakhstan, Poland, Czech

Republic, Azerbaijan and building a stronger

foothold in South Africa) and competences,

enhanced product offering (strong performance of

new own brands (AENO) and business units

(AROS) as well as the established Canyon and

Prestigio). These have translated into growing

revenues and high gross profit margin, while EBIT

and net income (to a stronger extent) have been

affected by sizeable write-offs for Russian

operations. Strong cash flows have allowed us to

maintain a strong cash position. These have

translated into continued dividend payments.

ASBIS has once again proved its resiliency and

preparation for future changes within the

demanding IT distribution.

On top of putting our values into practice, we

continued to work on our non-financial reporting.

For 2022 reporting we have been awarded the title

of Climate Aware Company, third year in a row.

Our 2023 report not only meets the EU

requirements, but also includes SASB Standards,

TCFD Recommendations, IIRC Framework and

has been prepared with reference to GRI

Standards. We also present the first findings from

double materiality assessment according to ESRS.

We promise to continue our actions for the benefit

of all our stakeholders in 2024.

Siarhei Kostevitch

Chairman & CEO

Consolidated Non-financial Report of ASBISc Enterprises Plc for 2023

About the Report

Report created

according to

internationally

recognized

standards and

recommendations

[GRI 2-3, 2-4, 2-5]

This Non-financial Report has been prepared by

ASBIS based on 2023 data for the whole Group,

for dates encompassing January 1, 2023 until

December 31, 2023. The report also encompasses

comparable consolidated data for 2022.

As ASBIS’ shares are listed on the Warsaw Stock

Exchange in Poland, the Report has been created

in accordance with the Polish Bill of Accounting

(which implements the 2014/95/EU Directive into

Polish law) requirements. The Report has been

prepared on the Group level, as on the

consolidated level ASBIS meets the criteria of

article 55.2b. Both in 2023 and in 2022 the Group

employed more than 500 employees on average,

its assets exceeded PLN 102m and turnover

exceeded PLN 204m. Similar disclosure

requirements are also mandatory in Cyprus, where

ASBIS headquarters are located. Summary of

alignment of disclosures with Polish Bill of

Accounting and thus EU Non-financial Reporting

Directive is available at the end of the Report.

The Report is published together with ASBIS

Consolidated Financial Report for 2023 along with

the Polish Ministry of Finance Bill on current and

periodical reports. The Report is compliant with the

requirement of the Polish Bill of Accounting listed

in articles 49b points 2-8. ASBIS non-financial

report is being prepared on an annual basis and

the reporting period is aligned with financial

reporting.

While preparing the report the Board of Directors

took into consideration also the non-binding EU:

(1) guidelines on non-financial reporting:

methodology for reporting non-financial

information (2017/C215/01), (2) the guidelines on

non-financial reporting: supplement on reporting

climate-related information (2019/C209/01) as well

as 3) the final version of European Sustainability

Reporting Standards (ESRS) which was applied

for double materiality assessment, which is

presented in this Report.

The Report has been prepared based on policies

present in the Group and long-standing practices.

ASBIS’ Report has been prepared in line with

internationally recognized SASB Standards

(Sustainability Accounting Standards Board – now

part of IFRS Foundation) – for the fourth year in a

row. Following SASB’s Sustainable Industry

Classification System® we report according to the

Consumer Goods sector and Multiline and

Specialty Retailers & Distributors industry

standard. On top, since 2021 ASBIS continues to

apply TCFD’s climate-related financial disclosure

recommendations in its Non-financial Report.

Consolidated Non-financial Report of ASBISc Enterprises Plc for 2023

A summary of financially material disclosures in

line with SASB Standards and TCFD

Recommendations is available at the end of the

Report.

Aiming to provide a comprehensive disclosure on

sustainability topics, ASBIS continued its

disclosures on material impacts “with reference to

GRI Standards”. A GRI Content Index is available

at the end of the Report. Also in this Report, ASBIS

continues to apply the Integrated Reporting

Framework for merging financial and non-financial

information. Again, details of alignment have been

presented at the end of this Report.

The scale of disclosures for 2023 has been stable

YoY. No data for 2022 has been restated. The

Report preparation has been supervised by two

Executive Directors, in frames of scope of

information revealed and quality of data provided.

The Report has been created with due diligence

and care, yet it has not been verified by any

external third party.

In case of questions about the Report please

contact Stelios Souzou at s.souzou@asbis.com or

b.basa@asbis.com.

Consolidated Non-financial Report of ASBISc Enterprises Plc for 2023

Business model

ASBIS is a leading

Value Add EMEA

distributor

[GRI 2-1, 2-2, 2-6]

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 former Soviet Union, 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 in Belarus

and in 1995 we incorporated our holding Company

in Cyprus and moved our headquarters to

Limassol. The Company’s registered and principal

administrative office is at 1, Iapetou Street, 4101,

Agios Athanasios, Limassol, Cyprus. Our Cypriot

headquarters support, through two master

distribution centres (located in Prague and Dubai)

and two supplementary in Tbilisi and

Johannesburg, 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.

ASBIS’ shares are listed on the Warsaw Stock

Exchange and are present in key indices: WIG140,

WIG-ESG, mWIG40TR, WIGdiv, mWIG40, WIG,

CEEplus.

Consolidated Non-financial Report of ASBISc Enterprises Plc for 2023

VISION

Be the leading Value Add Distributor, OEM and

Solutions Provider of IT, IoT, AI across CEE, FSU,

MEA

MISSION

represented by 5 focus areas:

 Develop and Market IT, IoT, AI solutions

 Gain expertise in consultative business

 Excel and leverage on Distribution

 Grow profitably Own Brands

 Manage risks and Zero regulatory issues

VALUES

TRANSPARENCY

We follow high standards of integrity and maintain openness in

communication, striving to build trust with everyone we interact

with at every stage of cooperation.

We believe that a competent, motivated, well-trained and a

diverse team will be able to deliver on ASBIS strategy and

develop the Company.

RESPECT

We respect individuality, provide equal opportunities and

encourage diversity in opinions and approaches to work,

creating an environment where people of different nationalities,

cultures, religions, ages, and genders can feel comfortable and

engaged.

We believe that a competent, motivated, well-trained and a

diverse team will be able to deliver on ASBIS strategy and

develop the Company.

PARTNERSHIP

We work with advanced technologies, but most importantly we

work with people, so strong and mutually beneficial

relationships are the foundation of our success.

We take pride in the team spirit of our employees, their

enthusiasm and skill, which we try to maintain knowing that

together we can achieve great things.

LEADERSHIP

Strong leaders lead by example. We strive to be an example for

others and help develop leadership skills in our employees.

Our desire to develop professional skills and personal qualities

allows us to grow leaders whose example inspires all team

members and makes us stronger.

MISSION AND VISION

Mission and vision of ASBIS are the guidelines by

which the Board of Directors looks at the Company

and conducts business. These are communicated to

employees and to external stakeholders.

Consolidated Non-financial Report of ASBISc Enterprises Plc for 2023

We are

honest

We promote

diversity

We are team

players

We use

good

judgment

We are

responsible

We stick to

the law and

our policies

Never

compromise

on integrity

Just say no

Select

business

partners

carefully

We are

trustworthy

 ASBIS 10 GUIDING PRINCIPLES 

Consolidated Non-financial Report of ASBISc Enterprises Plc for 2023

Over 60 entities

forming the Group

[GRI 2-2, 2-3, 2-4, 2-6]

Both financial and non-financial data have been

prepared based on the same number of fully

consolidated entities and the parent company. As

ASBIS is a publically listed company, its consolidated

financial statements undergo audit and are available

to the public. There are no material associates. No

material M&A activity took place.

Representative offices/

Warehouses/Branches

ASBISC ENTERPRISES PLC

Limassol, Cyprus

ASBIS Middle East FZE

Dubai, U.A.E.

ASBC Kazakhstan LLC

Almaty, Kazakhstan

i-Care LLC

Almaty, Kazakhstan

Sarovita Ltd

Limassol, Cyprus

R.SC.Scientists Ltd

Limassol, Cyprus

Real Scientists Ltd

London, United Kingdom

ASBC MMM

Baku, Azerbaijan

ASBIS d.o.o.

Sarajevo, Bosnia

ASBIS AZ LLC

Baku, Azerbaijan

Atlantech Ltd

Ras Al-Kaimah, U.A.E.

ASBISC ENTERPRISES PLC

Agency

Prague, Czech Republic

ASBISC ENTERPRISES PLC

Warehouse

Shenzhen, China

ASBIS-Ukraine Ltd

Kiev, Ukraine

iSupport Ltd

Kiev, Ukraine

SIA Joule Production

Riga, Latvia

Euro-Mall s.r.o.

Bratislava, Slovakia

E.M Euro-mall Ltd

Limassol, Cyprus

Euromall Bulgaria

Sofia, Bulgaria

I ON LLC

Kiev, Ukraine

Acean.PL Sp. z o.o.

Warsaw, Poland

Prestigio Plaza Kft

Budapest, Hungary

ASBC SRL

Chisinau, Moldavia

Perenio IoT spol. s.r.o.

Prague, Czech Republic

Prestigio Plaza Ltd

Limassol, Cyprus

ASBC Entity

Tashkent, Uzbekistan

ASBC LLC

Yerevan, Armenia

ASBC LLC

Tbilisi, Georgia

ASBC South Africa (Pty) Ltd

Johannesburg, South Africa

Breezy Trade-In Ltd

Limassol, Cyprus

Breezy Georgia LLC

Tbilisi, Georgia

Breezy-M

Chisinau, Moldavia

Breezy Poland Sp. z o.o.

Warsaw, Poland

Breezy LLC

Kiev, Ukraine

Breezy Service LLC

Kiev, Ukraine

Breezy Kazakhstan TOO

Almaty, Kazakhstan

Breezy LLC

Misnk, Belarus

Maksolutions LLC

Minsk, Belarus

ASBIS DE GmbH

Munich, Germany

Asbis Baltics SIA

Riga, Latvia

CJSC "ASBIS"

Minsk, Belarus

E-Vision

Minsk, Belarus

S.C. ASBIS Romania S.R.L.

Bucharest, Romania

ASBIS Morocco s.a.r.l.

Casablanca, Morocco

ASBIS SK spol. s.r.o.

Bratislava, Slovakia

ASBIS PL Sp. z o.o.

Warsaw, Poland

ASBIS IT Solutions Hungary Kft.

Budapest, Hungary

ASBIS d.o.o.

Belgrade, Serbia

ASBISC-CR d.o.o.

Zagreb, Croatia

ASBIS CZ spol. s.r.o.

Prague, Czech Republic

UAB Asbis Vilnius

Vilnius, Lithuania

ASBIS d.o.o.

Trzin, Slovenia

Asbis China Corp.

Shenzhen, China

ASBIS Bulgaria

Sofia, Bulgaria

ASBIS Kypros Ltd

Limassol, Cyprus

ASBIS Hungary Commercial Ltd

Budapest, Hungary

ASBIS Kazakhstan LLP

Almaty, Kazakhstan

ASBC

Minsk, Belarus

Entoliva Ltd

Limassol, Cyprus

ASBIS Georgia LLC

Tbilisi, Georgia

ASBIS CA LLC

Tashkent, Uzbekistan

ASBIS Hellas Single Member

S.A.

Athens, Greece

ASBIS s.r.l.

Chisinau, Moldavia

ASBC Morocco s.a.r.l.

Casablanca, Morocco

Asbis Africa (Pty) Limited

Johannesburg, South Africa

I.O.N. Clinical Trading Ltd

Limassol, Cyprus

ASBIS AM LLC

Yerevan, Armenia

91.15%

85%

90%

65.85%

55%

Consolidated Non-financial Report of ASBISc Enterprises Plc for 2023

We think globally

and act locally

[GRI 2-6]

VALUE CHAIN

ASBIS value chain starts with extraction of minerals

needed for production of electronics sold e.g.

aluminium, cobalt, copper, gold, lithium, tin, tungsten,

silicon, carbon as well as plastic and iron from which

components are created. These are sourced by

OEMs (original equipment manufacturers), private

labels producers and other producers manufacturing

electronics and hardware such as smartphones,

CPUs, PCs, laptops, HDDs and peripherals.

While choosing its offer, ASBIS analyzes market

trends, evaluates potential demand and looks for

profit opportunities. Based on our analysis, we later

on select products and product groups that will be

distributed and sold. Product offering is adjusted

according to market changes and the profit it

generates. Then the Company creates a strategy to

develop certain product groups and customer

demands. In 2023, the number of active articles in

offer grew to c.254 ths from c.236 ths in 2022 due to

adding more private labels and third party products.

While setting the product offering, we co-operate with

our suppliers. In 2023 the number of suppliers

increased to 2,046 versus 1,454 in 2022, due to

modifications in our product offer (incl. private labels).

We have long-term relations with our suppliers based

on mutual trust and understanding of mutual needs

and constraints. Most of these are large international

companies. We strive to provide our suppliers full

visibility by reporting to them crucial information on a

daily/weekly basis, including stock levels, sales-out

reports by country, thus assisting them in monitoring

customer demand and allowing them time to

comprehend and react to specific market

peculiarities, trends and dynamics. In 2023, a

significant portion of our revenues was generated

from ten biggest suppliers, like in 2022. Yet, we

believe that we place no reliance on any of our

suppliers since we carry for every product category a

wide portfolio of brands. We choose new suppliers

based on the market trend demands.

Placing an order depends on the supplier: it can be

done via our supplier’s on-line system or email. We

operate a system of centralized purchasing through

our headquarters in Limassol, Cyprus, however we

also possess a purchasing office in China. Country

managers communicate expected sales levels and

targets, analyzed by product lines and suppliers, to

our product line managers who then identify

purchasing requirements for the forthcoming three

weeks and in turn forward this information to vice

president of product marketing who verifies and,

upon agreement, consolidates the information.

Information is then presented to the management,

holding weekly meetings to review and approve

requirements.

Shipping of electronics and hardware from OEMs,

private labels producers, other producers to ASBIS

takes place mostly via marine transportation.

Suppliers deliver goods to our two master distribution

centers (Prague and Dubai) and two regional

distribution centres (Tbilisi and Johannesburg).

Consolidated Non-financial Report of ASBISc Enterprises Plc for 2023

We strive to keep our stock, including stock in transit,

for our main product lines at a level of four weeks of

sales, and to cover four to five weeks of revenues for

other product lines in order to ensure adequate

supply, while reducing the length of time over which

we hold our inventory at our warehouses.

Having purchased the goods, we act as a non-

exclusive distributor. We are responsible for

promoting, marketing, advertising, selling, and

providing training and after-sales support for each

supplier's products in the respective markets. A

monitoring mechanism is established by the

suppliers to ensure that minimum sales targets are

met, pursuant to which we are responsible for

providing our suppliers with various reports, including

weekly inventory reports and monthly point of sales

reports. The aim of ASBIS is to be one of the top

distributors for every supplier to get most of the

supplier`s support.

We order large volumes of products to benefit from

economies of scale and resell these at competitive

prices to our customers. We have no reliance on any

single customer. Our biggest customer was only

responsible for some 6.6% of total revenues in 2023.

Our active customers (c. 20,000 in 2023, stable YoY)

can place orders via our IT platform which is called

IT4Profit and by telephone call or email. In 2023 and

2022 c.60% of sales were conducted on-line, based

on our IT4Profit platform. It allows not only electronic

trading with customers but also data exchange

between the parent company and its subsidiaries. In

all regions we co-operate both with large enterprises

and mid-size companies. In all regions we are looking

for well-established companies with proven products

and business models. Our clients are in vast majority

corporates. These include a broad range of corporate

clients: system integrators, resellers (including value

added resellers, SMB resellers), retail companies,

PC assemblers, service centers and telecom

companies.

Once a customer files the order, we have to deliver

it. We operate through 31 warehouses in 34

countries. Customer orders are mainly served

through the supply of local offices, and in the event

that local inventory levels are insufficient, additional

inventory is drawn from one of the distribution

centers. Each local office operates its own logistics

function and is responsible for direct shipments to its

customers. Our headquarters monitor and assess the

performance of each local logistics center by using a

number of key performance indicators, including

transit time of incoming shipments, order fulfilment,

(such as pick, pack and ship time and the percentage

of orders shipped to commitment by date and time),

on-time delivery, transport, cost per kilogram shipped

and cycle count performance. We know average time

of delivering an order is important for our customers.

In 2023 the average time of processing orders

increased from 15.5 hours in 2022 to 18 hours due to

growth in the number of orders processed.

Distribution is done by ships, airplanes and trucks.

ASBIS does not

do business

directly with

public sector

Consolidated Non-financial Report of ASBISc Enterprises Plc for 2023

At the end of 2023 we ran 33 Apple stores in 9 FSU

countries (27 stores in 2022) and 5 Bang & Olufsen

stores with 4,798 m2 floorspace, providing us with

a direct exposure to our customers.

Lead time depends on supplier`s stock location

and way of delivery. It can vary from several days

to 2-3 months. Same applies for own brands as

well. Sale to the end customer is conducted by

ASBIS’ business partners and stores.

ASBIS’ value chain ends with the end of life of

products and goods distributed. These could be

topped-up or recycled (at least partially), yet could

also end up on landfill.

Consolidated Non-financial Report of ASBISc Enterprises Plc for 2023

 ASBIS VALUE CHAIN 

UPSTREAM

DOWNSTREAM

ASBIS

Extraction of

minerals needed

for production of

electronics (e.g.

aluminium, cobalt,

copper, gold,

lithium, tin,

tungsten, silicon,

carbon as well as

plastic and iron)

and sourcing of

components.

Key locations:

Americas, Asia,

EMEA, Australia

Manufacturing

of electronics and

hardware e.g.

smartphones,

CPUs, PCs,

laptops, HDDs,

peripherals include

OEMs (original

equipment

manufacturers),

private labels

producers, other

producers.

Key locations:

production mostly

Asia, also EMEA and

Sale

of IT components

of OEMs and

private labels from

ASBIS distribution

centres,

warehouses and

retail stores

financed from own

equity and

financing

institutions.

Key locations:

EMEA

Distribution

from ASBIS to

vendors, business

customers and

stores via ships,

airplanes and

trucks.

Key locations:

EMEA

Shipping

of electronics and

hardware from

OEMs, private

labels producers,

other producers to

ASBIS mostly via

marine

transportation.

Key locations:

from Asia to EMEA

Purchasing

conducted on-line

or off-line via

vendors, business

customers and for

ASBIS’ retail

stores.

Usage and end of

life treatment of

products

distributed via

recycling,

refurbishment,

reuse or landfill.

Key locations:

EMEA

Key locations:

EMEA

Consolidated Non-financial Report of ASBISc Enterprises Plc for 2023

Strategic capitals’ development

What we put into the Group

How we process capitals

What we give back

daily operations, including

taking decisions what to order

and in what quantities

amendments and upgrades

to product offering, discussions

with suppliers

hiring and retaining

of employees

creating financial statements,

discussions with investors and

banks, paying taxes and social

charges

back-office maintenance

Financing capital

equity, generated cash as well as bank loans and

factoring arrangements.

Manufacturing capital

the production capacities of our suppliers and partners,

our distribution centres & warehouses and inventory.

Intellectual capital

the brands and IPs that we possess.

Human capital

our employees working in subsidiaries in EMEA countries,

their know-how and engagement.

Social capital

strong reputation that ASBIS possesses among its

customers and suppliers, our relations and impact on

local societies.

Natural capital

natural resources that are used to manufacture products

that we distribute.

Financing capital

generation of cash flows that can be reinvested into the

Company or paid out as dividends.

Manufacturing capital

supporting suppliers and the manufacturers they engage,

supporting private label production in China and our DCs.

Intellectual capital

development of possessed brands, especially private

labels.

Human capital

development of employees, trainings, internal promotions,

new opportunities.

Social capital

strengthening our relations with suppliers, customers and

local societies.

Natural capital

recycling initiatives introduced.

ASBIS business can also be looked at from the perspective of six capitals that the Group possesses and processes in day-to-day operations.

Consolidated Non-financial Report of ASBISc Enterprises Plc for 2023

ASBIS’ 2023

results marked by

write-offs from

Russia

FINANCIAL CAPITAL

The financial capital of ASBIS consists of equity,

generated cash as well as bank loans and

factoring arrangements. These allow us to operate

on a daily basis. ASBIS financial capital is

supported by our history of flexibility and adapting

to changing external surroundings which has once

again been proven in 2023, in which ASBIS

developed new markets to make up for the closed

Russian operations. ASBIS followed all required

sanctions on Russia as well as Belarus, while

continued to operate on the Ukrainian market

which was the second largest one.

ASBIS diversified its operations, by moving

stronger to, among others, Kazakhstan, Georgia,

Armenia. These proactive moves have allowed the

FSU (Former Soviet Union) region to remain the

largest one, exceeding half of our revenues in

2023 (and 2022). CEE (Central and Eastern

Europe) remained the second market, while MEA

(Middle East and Africa) the third one, leaving the

fourth place for Western Europe (WE). We

continued to improve our portfolio of products and

services, among others in own brands –

development of relatively new AENO and the

established Canyon and Prestigio and new

businesses line like AROS. As a result, Group

revenues grew 14% YoY in 2023.

The IT distribution business is characterized by

relatively low margins. In 2023 our gross profit

margin reached 8.24% (versus 8.47% in 2022),

thus remaining at a high and satisfactory level.

REVENUES (US$ m)

2023 REVENUE SPLIT (US$ m)

2,690

3,061

2022 2023

FSU

51%

CEE

26%

MEA

14%

WE & Other

Consolidated Non-financial Report of ASBISc Enterprises Plc for 2023

We continue to

pay dividends

[GRI 201-1]

Direct economic

value generated and

distributed

US$ m

Direct economic

value generated:

revenues

3,061

Economic value

distributed

3,029

- operating costs

excl. employees

2,835

- employee wages

and benefits

114

- payments to

government

- payments to

providers of capital

Economic value

retained

Operating cost cautiousness is important for

ASBIS as it helps to build our financial capital.

These include among others selling and logistics

costs as well as employee expenses. In 2023

ASBIS increased its headcount, due to

geographical expansion and investments in new

business units. Still, these coupled with US$ 3m

bad debt provision for Russia, 2023 EBIT was

stable YoY. However, due to US$ 11.5m losses on

reclassification of FX and US$10.5m impairment

loss, 2023 net income fell 30% YoY. Due to the

strong standing of the Company, ASBIS does not

use equity financing and finances its growth via

debt and factoring.

Strong financial capital allows ASBIS to remain a

dividend paying company. Our dividend policy is to

pay dividends at levels consistent with our growth

and development plans, while maintaining a

reasonable level of liquidity. To share with

shareholders, on 7

December 2023, the

Company paid out the interim dividend from 2023

profits of US$ 0.20 per share, with a total amount

of US$ 11.1m.

EBIT (US$ m)

NET INCOME (US$ m)

Financial capital affects all other capitals as due to

its generation we can remunerate our employees

(human capital), develop our intellectual capital

and support our social capital.

111

112

2022 2023

Consolidated Non-financial Report of ASBISc Enterprises Plc for 2023

Modern

distribution

centres add to our

manufacturing

capital

MANUFACTURING CAPITAL

ASBIS manufacturing capital consists of

production capacities of our suppliers and

partners, our distribution centres and warehouses

due to which we can distribute goods sold to our

customers as well as inventory on hand. Our

Cyprus HQs as well as regional offices add to our

manufacturing capital.

Our suppliers’ manufacturing facilities are based

all over the world. Our distribution network is based

on more than 30 in-country stock points - across

CEE, FSU, Gulf, Caucasus, and Africa-

replenished via two master distribution centers in

Prague (the Czech Republic) and Dubai (the

United Arab Emirates) and two regional distribution

centers in Johannesburg (South Africa) and Tbilisi

(Georgia).

The facility in Prague can consolidate orders and

fulfill deliveries to any of ASBIS’s local distribution

centers and subsidiaries, and serve customers

across the globe. The leased area covers 14,000

m2. Dubai serves our operations in the ME and

Eastern and Northern African countries. It is owned

and has an area of 8,200 m2. The distribution

center in Johannesburg serves as a consolidation

point for the customers located in South Africa and

across the Sub-Saharan region. The lease covers

an area of 3,800 m2. The distribution center in

Tbilisi mainly serves the countries in the Caucasus

region – it is the smallest with 3,000 m2.

The total warehouse space of ASBIS, including

main, regional and local distribution centers,

currently amounts to c. 63,000 m2. ASBIS has

started building a new distribution center in

Kazakhstan with an area of c. 20,000 m2 due to

significant demand increase from 2022. It is to be

put into operation at the beginning of 2025 at the

latest.

ASBIS new offices in Limassol, Cyprus are

situated on land leased from the Ministry of

Commerce. The building is owned by the

Company – the premises used to be a factory,

which we renovated to be fit as offices. It is

c.11,100 m2 including the parking lot. The building

has the capacity to facilitate more than 300

employees. At the moment 270 employees work

there. The premises are equipped with the latest

technology. The whole building is indirectly

electricity from a producer and supplier of clean

energy.

Our manufacturing capital supports our financial

capital as thanks to it we can conduct our

operations. It also helps our human capital by

allowing our employees to work in proper

conditions. As such it supports development of

intellectual capital and social capital (by

strengthening relations with local communities).

Our human, social, intellectual and natural capital

are described in separate sections of the Report.

Consolidated Non-financial Report of ASBISc Enterprises Plc for 2023

Our operations

support UN SDGs

[GRI 2-22]

STRATEGY

Business strategy

Our business strategy remains the same over the

years. ASBIS intends to grow its business and

increase its profitability, mainly by improving its

operating efficiency in the distribution of IT

components and by increasing sales of its private

label products. This is to be achieved by:

 increasing or retaining sales and market share

in the CEE region, selected FSU countries and

the Middle East and Africa;

 enhancing product portfolio (smartphones, IT

components, VAD) and improving gross profit

margin;

 further optimizing our private label business;

 controlling our cost structure, enhancing

operating efficiency and automated processes,

including our online sales channels;

 engaging in alternative investments and new

technologies.

We will continue to implement the strategy as well

as conduct any necessary tactical changes

resulting from short- and medium-term changes on

the IT distribution market.

Support for UN SDGs

ASBIS’ 2020-22 CSR Strategy has come to an end

with a sizeable success in accomplishing its main

goals. The Company now focuses on supporting

attainment of the United Nations Sustainable

Development Goals for 2015-2030, among others:

 SDG 5 Gender Equality (we have a diverse

Board of Directors in terms of gender, experience

and age as well as diverse employees,

representing different regions and cultures),

 SDG 8 Decent Work and Economic Growth (we

have subsidiaries in 34 countries and operate in

some 60 countries; we offer our employees fair

wages and permanent employment contracts),

 SDG 9 Industry Innovation and Infrastructure (we

introduce innovative solutions into our portfolio

and acquire new ideas; we help our customers in

emerging markets upgrade their IT infrastructure

to more environmentally sound one; we support

local communities),

 SDG 12 Responsible Consumption and

Production (we engage in waste reduction

initiatives, support responsible purchases by our

customer and expand the Breezy initiative for

trading in used appliances),

Consolidated Non-financial Report of ASBISc Enterprises Plc for 2023

 SDG 13 Climate Action (we broaden our eco-

friendly product offering, we measure our carbon

footprint, we introduced a policy that all new

corporate cars must be hybrid).

2024 OUTLOOK

Key aspects of our 2024 plans encompass:

 growing geographical exposure (Armenia,

Georgia, Azerbaijan, Morocco, Moldova,

Western Europe and South Africa),

 continued focus on CIS countries, excl. Russia

and Belarus, development in Southern Europe,

 new products introduction – new Apple products,

more Robotic Solutions, more sustainable

products, more emphasis on private labels,

 continued focus on business customers but a

growing retail customers’ base.

Consolidated Non-financial Report of ASBISc Enterprises Plc for 2023

Corporate governance

Corporate

governance

matters for ASBIS

[GRI 2-9, 2-10, 2-11, 2-12,

2-13, 2-14, 2-15,2-17,

2-18, 2-19, 2-20, 405-1]

ASBIS’ shares are listed on the Warsaw Stock

Exchange (WSE) in Poland, on the main market.

We follow and comply with “hard law” and “soft law”

that are prevailing on our main listing place. The

“soft law” is the Code of Best Practices of WSE

(issued in 2021) which was approved by ASBIS’

Board of Directors. Each year together with its

annual report the Company files a statement of

compliance. If any rules are not followed, these are

communicated and explained (following the

“comply or explain rule”).

Although our listing takes place in Warsaw where

civil law prevails, the corporate rules and corporate

structure originate from Cyprus, where we are

incorporated and where common law prevails. We

thus operate based on publically available

documents, which were filled with the Registrar of

Companies in Cyprus. These are:

 Memorandum of Association – which contains

fundamental conditions based on which we

are allowed to operate,

 Articles of Association – which define the

responsibilities of directors, the kind of

business to be undertaken and ways in which

shareholders can influence the Board of

Directors.

The Company is governed by a Board of Directors

(BoD) which consists of both executive directors

(EDs) and non-executive directors (NEDs), all

managed by the CEO (Chief Executive Officer).

The aim of executive directors is to set the strategy

of the Company and to manage the Company by

supervising managers, assuring financing is

available and managing risk. The role of non-

executive directors is to supervise the way the

executive directors perform their duties, to

scrutinize the performance of BoD and

constructively challenge its decisions.

The management of the business and the conduct

of the affairs of the Company are vested in the

directors. The Board of Directors should maintain

a healthy system of internal controls in order to

safeguard shareholders’ investments and the

Company’s assets. The Directors may exercise all

the powers of the Company to borrow money, and

to charge or mortgage its undertaking, property

and uncalled capital, or any part thereof, and to

issue debentures, debenture stock and other

securities whether outright or as security for any

debt, liability or obligation of the Company or of any

third party.

Consolidated Non-financial Report of ASBISc Enterprises Plc for 2023

All shareholders

are equal - one

ASBIS share

equals one vote

The Board of Directors performs its work on a

permanent basis. However, one third of directors

should retire every year by rotation. We have eight

directors at the date of publication of the Report

(five are executive and three non-executive). So,

at least two (or more) directors need to retire and

be re-elected every year. None of the directors is

an employee representative. The non-executive

directors are independent ones.

The Board of Directors is appointed by the General

Meeting of Shareholders which takes place at least

annually. The annual general meeting approves

the financial statements of the Company,

distribution of profits (dividend) and discharges the

Board of Directors members from their liabilities

related to former year performance, elects

directors in place of those retiring, appoints them

and sets the remuneration of auditors. Other

general meetings are extraordinary meetings

taking place on special occasions.

An annual general meeting, and a meeting for the

passing of a special resolution, shall be called by

at least twenty-one days’ notice in writing, and all

other meetings shall be called by at least fourteen

days’ notice in writing. The notice shall be

exclusive of the day on which it is served or

deemed to be served and of the day for which it is

given. It shall specify the place, the day and the

hour of meeting and in cases of special business,

the general nature of that business. The

Company's Articles of Association do not provide

for general meetings to be held outside Cyprus.

The largest shareholder in the Company is its

founder and the CEO, Siarhei Kostevitch. He

controls the Company having effectively an almost

37% stake. Four remaining executive directors

hold combined a c.1.4% stake. As of the day of

publication of the Report, there is no institutional

investor above the 5% reporting hurdle. ASBIS has

a sizeable free float of c.63% (incl. the 1.4% stake).

Thus, ASBIS’ founder, Siarhei Kostevitch, is the

largest shareholder, Chair of the Board of Directors

and the CEO. Since 1990 he has been fully

committed to the Company and has supported

ASBIS while weathering several crises. During

2006 and following the AIM listing ASBIS had an

NED as Chair who resigned during the crisis of

2008-09. Ever since Siarhei Kostevitch has

undertaken the role of Chair to steer the Company

until its current standing. Still, being also the major

shareholder, he has always been able to separate

his roles between the executive role and the

fundamentally more compliant role of the

Chairman of the Board of Directors. He is also

assisted by NEDs and since 2009 we have not

faced any issues with compliance and reporting.

On top, dealing with conflicts of interest is

described in our Code of Conduct.

Each share confers the right to cast one vote. Each

shareholder is entitled to attend the meeting, to

address the meeting, and, if voting rights accrue to

him or her, to exercise such voting rights.

Shareholders may attend meetings in person or be

represented by a proxy authorized in writing.

Consolidated Non-financial Report of ASBISc Enterprises Plc for 2023

ASBIS has both an

Audit and a

Remuneration

Committee

No special rights attach to any specific shares and

there are no different classes of shares.

There is both an Audit Committee and a

Remuneration Committee at ASBIS. The Audit

Committee consists of the three NEDs and one

executive director (the CFO, an attending member)

and is chaired by Maria Petridou. The Committee

meets at least twice a year. It is responsible for

ensuring that the Group’s financial performance is

properly monitored, controlled and reported. It also

meets the auditors and reviews reports from the

auditors relating to accounts and internal control

systems. The Audit Committee meets at least once

a year with the auditors.

The Remuneration Committee encompasses the

three NEDs and an executive director (the CEO,

an attending member) and is chaired by Tasos

Panteli. It sets and reviews the scale and structure

of the executive Directors’ remuneration

packages, including share options and terms of

their service contracts. The remuneration and the

terms and conditions of the non-executive

Directors are determined by the Directors with due

regard to the interests of the shareholders and the

performance of the Group. The Committee also

makes recommendations to the Board concerning

the allocation of share options and/or treasury

shares to directors, managers and employees.

According to Articles of Association, remuneration

of the directors will be determined in general

meetings on the recommendation of the

Remuneration Committee. Any director performing

special or extraordinary services in the conduct of

the Company’s business or in discharge of his

duties as director, or who travels or resides abroad

in discharge of his duties as director may be paid

such extra remuneration as determined by the

directors, upon recommendation by the

Remuneration Committee. Executive Directors are

also entitled to receive a bonus every quarter

depending upon quarterly results. The bonus

consists of a certain amount or percentage which

is agreed and described in each Director’s service

agreements or contracts, as applicable, however,

Directors only receive such a bonus to the extent

profit meets certain pre-set budgetary figures.

In 2020 in line with EU requirements, ASBIS’

general meeting approved the remuneration policy

for the Board of Directors. The first statement on

remuneration was presented to the AGM in 2021,

while 2023 one will be presented to the AGM in

2024. Remuneration of the directors is included in

the Annual Report as well as in the Statement on

Board of Directors remuneration. Overall:

 there are both fixed and variable

payments (the latter dependent on

completion of specific tasks set at the

beginning of the quarter),

 there are recruitment incentives in the

form of relocation bonuses (case-by-case

basis),

 termination payments exist as per local

regulation,

 there are no clawbacks,

 there are provident fund contributions from

both the company and the employee.

Consolidated Non-financial Report of ASBISc Enterprises Plc for 2023

A diverse Board

and management

pipeline

2022

Male

Female

Management

(SASB)

All other

1,431

733

2023

Male

Female

Management

(SASB)

All other

1,761

850

Our Board of Directors is diverse in terms of

experience and has assigned responsibilities.

Siarhei Kostevitch, the CEO, is primarily

responsible for carrying out strategic plans and

policies as established by the Board of Directors.

Constantinos Tziamalis, Deputy CEO, has the

primary responsibility for the accounts receivable

and supervision of Credit Control Department. He

is also in charge of the Investor Relations

department. On top, Constantions, is also

responsible for risk identification and mitigation,

and climate change and environment protection.

Marios Christou, the CFO of the Group, is

responsible for handling of funds, keeping financial

records and financial planning of the Company. In

addition, he controls the Treasury Department

which is concerned with the receipt, custody,

investment and disbursement of corporate funds,

as well as borrowings. Julia Prihodko, Chief

Human Relations Officer, manages and provides

strategy on the people function for the Group,

leads the implementation of HR policies and

programs. Hanna Kaplan leads all projects of

finance/IT integration and the automation of the

reporting systems of the Group. Competences of

our non-executive directors are also diverse. Maria

Petridou has a financial background, Tasos Panteli

has a legal background while Constantinos

Petrides has experience in working with European

Commission.

At the end of 2023 there were three women on

ASBIS board – two were Executive Directors and

one a Non-executive Director. As a result, women

constitute 37.5% of our Board of Directors.

As gender diversity is important to us, we are

working on the pipeline of women in senior

positions. If we take all the boards of our

subsidiaries into account, as many as 20 women

sit on our boards, which translates into a sizeable

51% share. The picture also looks favourably if we

look at split of management (understood as in

SASB as board plus store managers) where at the

end of 2023 48% (47% at the end of 2022) share

were women versus 33% share among remaining

employees. Ethnic diversity at ASBIS is growing

YoY, with Hispanic, Afro-American, Asian

employees being present.

2022

Asian

White

Management

(SASB)

All other

2,110

2023

Asian

White

Management

(SASB)

All other

2,549

2022

Black

Hispanic

Management

(SASB)

All other

2023

Black

Hispanic

Management

(SASB)

All other

Consolidated Non-financial Report of ASBISc Enterprises Plc for 2023

 CORPORATE GOVERNANCE 

APPOINTS

Non-executive officers

 supervise the decisions taken by the executive directors, support

the Company with their experience and independent judgement

Executives

Non-executives

Siarhei Kostevitch

Chairman, Chief Executive Officer

Constantinos Tziamalis

Deputy CEO

Marios Christou

Chief Financial Officer

Julia Prihodko

Chief Human Relations Officer

Tasos Pantelli

Non-executive Director

BoD excl. CEO

1.4%

Other free-float

63.2%

TOTAL

100.0%

 approves the annual financial statements of the Company,

 decides on profit distribution (dividend),

 appoints Board of Directors (both executive and non-executive

officers)

Executive officers

 set the strategy for the Company,

 supervise all the key elements of the Company’s business:

operations, finance, risk, plans

SHAREHOLDERS’ MEETING

(gathers at least once a year)

BOARD OF DIRECTORS

(consists of at least 3 directors)

Maria Petridou

Non-executive Director

CEO & Founder

36.8%

Constantinos Petrides

Non-executive Director

Hanna Kaplan

Executive Director

Consolidated Non-financial Report of ASBISc Enterprises Plc for 2023

Board evaluation

is conducted by

shareholders

We also care for board stability, yet also recognize

the need for our Board of Directors to take on new

competences along with growing geographical and

business presence. Over the last five years the

rotation level (understood as changes in persons

holding those positions) reached 22% while 25%

in 2023 (two new persons added to the Board of

Directors).

The Board of Directors together with extended

management team is responsible for preparation

of ASBIS mission, vision, values and strategy. The

Board of Directors has created a subcommittee led

by the HR director which ensures that organization

shows its sensitivity to economy, environment and

people and through this ensures that our

employees are fully aware and undertake all

actions to follow these processes. The HR team is

presenting the results of the outcomes of these

processes (which derive from surveys conducted

internally) to the Board of Directors and based on

the results actions are proposed. The Board of

Directors has set Key Performance Indicators

(KPIs) for all processes and these are reviewed

once per quarter.

Each member of the Board of Directors is assigned

specific responsibilities and oversees certain

functions of the Group. These responsibilities are

further delegated to departmental managers and

from there on to lower-level personnel. The

communication between the hierarchy levels is

very frequent and any issues that arise are

reported immediately. The Board is always very

approachable and in constant communication with

the employees.

The Board of Directors is also responsible for

reviewing and approving the sustainability

information enclosed in the Non-financial Report

as well as the material topics. It also strives to

communicate and discuss sustainability topics with

employees.

Evaluation of the Board of Directors actions is

conducted by the shareholders who grant

discharge to the directors for their actions in a

given year. So far the Board’s performance has not

been examined and reviewed by an independent

party.

Consolidated Non-financial Report of ASBISc Enterprises Plc for 2023

Board of Directors

Executive

Non-Executive

Siarhei Kostevitch

CEO

Constantinos

Tziamalis

Deputy CEO

Marios Christou

CFO

Julia Prihodko

CHRO

Tasos Panteli Maria Petridou

Organizational

strategy

Capital allocation

decisions

Leadership

Business risk

management

Investor relations

Climate risk

management

Financial

management

Treasury operations

Human resources

Audit Committee

Remuneration

Committee

Audit Committee

Remuneration

Committee

Delegation to:

Chief Operating

Officer

Business Unit

Leaders

Product Line Mangers

Delegation to:

Credit Controllers

FX Risk Managers

CSR team

Investors relations

team

Delegation to:

Financial Controllers

Treasury team

Delegation to:

HR managers

Hanna Kaplan

Constantions

Petrides

Audit Committee

Remuneration

Committee

Accounting

Financial

management

Delegation to:

Financial Controllers

Chief accountant

Consolidated Non-financial Report of ASBISc Enterprises Plc for 2023

Stakeholders and materiality

Updated

stakeholder

groups and first

double-materiality

assessment

[GRI 2-29, 3-1, 3-2, 3-3]

At ASBIS we take all our stakeholders into account

while conducting our business operations. When

preparing this Report the Board of Directors

analysed and updated the stakeholders groups as

well as approved the results of the first double-

materiality assessment conducted in line with

ESRS (European Sustainability Reporting

Standards).

In preparation for upcoming sustainability reporting

ASBIS conducted a new stakeholder mapping.

The analysis showed seven material stakeholder

groups, though these have been modified

compared to the groups used in previous Non-

financial Reports. Material stakeholder groups

have been assessed based on their relation to the

Company, impact on the Company, Company’s

impact on them as well as methods and frequency

of contact.

As a result, seven groups of stakeholders were

identified: capital market participants (analysts and

investors) and financial institutions (banks,

insurers, factoring companies), suppliers and

service providers, customers, employees and

Board of Directors, governing and public

institutions, local communities and media and

public opinion. Details with methods of

engagement are presented in the table below.

Conduct of the first double materiality assessment

took place in line with ESRS and EFRAG’s

guidance. Apart from updating stakeholder groups,

it also involved mapping the value chain of ASBIS

and identifying actors in upstream and

downstream.

Double materiality assessment was conducted in

several steps which involved: 1) internal

stakeholders’ engagement to narrow down the list

of material impacts and their type and severity, 2)

financial materiality assessment and 3) external

stakeholder engagement in the form of panel and

survey. Board of Directors has been engaged in all

the steps and approved the first double materiality

assessment. A list of material topics, material

based on impact, risks or opportunities, is

presented below. ASBIS plans to continue to

upgrade its methodology of double materiality

assessment to assure all material topics are

mapped and represented via appropriate

indicators.

Consolidated Non-financial Report of ASBISc Enterprises Plc for 2023

 ASBIS STAKEHOLDERS 

ASBIS

Employees and Board

of Directors

Customers

Media and public opinion

Capital market

participants and financial

institutions

Governing and

public institutions

Suppliers and service providers

Local communities

Consolidated Non-financial Report of ASBISc Enterprises Plc for 2023

Capital market participants

and financial institutions

Suppliers and service providers

Customers

Employees and Board

of Directors

Governing and public

institutions

Local communities

Media and public opinion

Who are

they?

A varied group of stakeholders.

Capital market participants

include: analysts issuing

recommendations for ASBIS,

institutional investors (mutual

funds and pension funds, Polish

and international ones) and

individual investors. Financial

institutions include insurers,

banks as well as factoring

companies.

Suppliers are companies from

which we source goods that we

resell later. We co-operate with

suppliers who produce for us our

private label products as well as

with suppliers from which we

obtain third party goods, e.g.

OEM (original equipment

manufacturers). S