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Main colour palette 12 44 132 255 153 0 180 195 225 0 130 80 107 207 237 178 181 180 Secondary colour palette 255 205 171 81 83 82 211 224 202 210 212.

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Presentation on theme: "Main colour palette 12 44 132 255 153 0 180 195 225 0 130 80 107 207 237 178 181 180 Secondary colour palette 255 205 171 81 83 82 211 224 202 210 212."— Presentation transcript:

1 Main colour palette Secondary colour palette Map colours FillLine Warsaw, February 27th, 2009 ASBISC Enterprises PLC Q and 2008 results Strong to face the new challenges Siarhei Kostevitch, CEO Marios Christou, CFO Daniel Kordel, IRM

2 Main colour palette Secondary colour palette Map colours FillLine Page 1 4/13/2015 1:51 AM IBD\ING\War O\P\X Important notice This presentation contains forward looking statements. Actual results may differ materially from the anticipated results as a consequence of certain risks and uncertainties, including but not limited to general economic conditions in the markets in which ASBISc operates, and other risks detailed in our semi- annual and annual reports. For the most recent description of the risk factors please see Risk Factors section in the prospectus and our periodical reports.

3 Main colour palette Secondary colour palette Map colours FillLine Page 2 4/13/2015 1:51 AM IBD\ING\War O\P\X Company and market overview

4 Main colour palette Secondary colour palette Map colours FillLine Page 3 4/13/2015 1:51 AM IBD\ING\War O\P\X Introduction to ASBIS Established in 1990 in Minsk, headquartered in Limassol (Cyprus) since 1995 Experienced management team combined with local expertise Broad geographic coverage combined with strong local presence Extensive infrastructure - physically present in 26 countries, with mainly fully owned subsidiaries, Selling to more than active customers Unique B2B on-line solution applied to over 55% of sales value Complete solutions to producers and integrators of server, mobile and desktop segments Successful long-term co-operation with top global vendors of IT components Broadening of distribution agreements for new countries and already developed ones A-branded laptops, servers, desktop PCs, successful own brands: Prestigio and Canyon Price and stock rotation protection granted by suppliers Almost 18 years of experience Leading IT distribution across EMEA markets First choice distribution partner for global industry players Wide product portfolio, distributed on a ‘one-stop-shop’ basis

5 Main colour palette Secondary colour palette Map colours FillLine Page 4 4/13/2015 1:51 AM IBD\ING\War O\P\X Full coverage of EMEA region Three main distribution centres in Prague, Helsinki & Dubai New distribution center in China, Shenzen for own brands 33 local warehouses in 26 countries active customers JIT stock replenishment system Centralised purchasing power Local presence, know-how and customer technical support Ballinloough Amsterdam Bratislava Casablanca Algiers Tunis Vilnius Ljubljana Zagreb Istanbul Warsaw Minsk Sofia Moscow Kiev Bucharest Limassol Almaty Prague Belgrade Tallinn Kosice Budapest Cairo Dubai Hong Kong China Distribution centers Helsinki Riga Sarajevo Roma Jaelfaella Riyadh Jeddah

6 Main colour palette Secondary colour palette Map colours FillLine Page 5 4/13/2015 1:51 AM IBD\ING\War O\P\X Main events and factors in Q4 2008

7 Main colour palette Secondary colour palette Map colours FillLine Page 6 4/13/2015 1:51 AM IBD\ING\War O\P\X Main events and developments New operations Completed geographical coverage of Baltic and Balkan states, including New subsidiary in Latvia Acquisition of local distributor Megatrend d.o.o. in Bosnia & Herzegovina (80% subsidiary) Greenfield operations in Italy, Turkey and Kazakhstan Investment in new warehouse in Dubai (UAE, Free Trade Zone) to support growing Middle East operations New distribution agreements More than 20 new distribution agreements, including: Western Digital Lenovo Microsoft DELL, Acer (in various markets) LG Electronics, Belkin Changes inside the Company Centralization of European logistics in Prague. Dutch distribution center has been shut down Cost-cutting program introduced in November 2008 Actions to refine hedging policies in local subsidiaries

8 Main colour palette Secondary colour palette Map colours FillLine Page 7 4/13/2015 1:51 AM IBD\ING\War O\P\X Factors affecting financial results in 2008 World’s financial crisis Credit and financial crisis that affected global markets, however EMEA markets have been hit extensively due to the foreign investment outflow Dramatic decrease in demand following the recession across all markets the group operates Political and economic instability in Ukraine resulted in lower revenue Heavy depreciation of the CEE and Russian currencies against the US$ resulted in massive forex losses Recently, due to markets turbulance and the interbank rate increase, the cost of borrowing for the group was increased (Serbia, Hungary, Romania, Russia, Ukraine) Several of the Group’s bankers have raised their spread (Romania, Slovakia, etc.) Interest rate fluctuations Very good Q1 and Q2 results, especially due to combination of strong demand of both hardware and software In the second part of the year, the world’s financial crisis affect demand in some countries by: Less credit avalaibility Lower purchasing power of most of the countries Higher prices due to weakening local currencies Changes in demand

9 Main colour palette Secondary colour palette Map colours FillLine Page 8 4/13/2015 1:51 AM IBD\ING\War O\P\X Factors affecting financial results in Q Currency fluctuations Steep depreciation of local currencies against the US Dollar affected the Company’s business. Particularly strenghtening of the U.S. Dollar against the Russian Ruble, Euro and other currencies resulted in a decrease in the Company’s revenues and net profit, as reported in U.S. Dollars.

10 Main colour palette Secondary colour palette Map colours FillLine Page 9 4/13/2015 1:51 AM IBD\ING\War O\P\X Actions undertaken to mitigate the effects of the crisis

11 Main colour palette Secondary colour palette Map colours FillLine Page 10 4/13/2015 1:51 AM IBD\ING\War O\P\X Actions undertaken The Company has taken appropriate actions to minimize the impact of the global financial crisis and currency volatility on its financial results; It : Has undertaken significant cost-cutting actions in November 2008 and continues same in 2009, the results of which will be visible from Q1 of 2009 (expected saving amounted to US$ 1.4 m for Q1 and US$ 1.6 m per quarter beginning from Q2), besides savings on foreign exchange (FX) Shut down the Dutch distribution center and moved its operations to Prague. This will allow to save ca. US$ 1.4 m in 2009 Has increased its U.S. Dollar denominated sales, to decrease its foreign exchange exposure (as it mainly purchases goods in US Dollars and principally sells in local currencies) Improved both short term and long term hedging strategies by increasing loans, factoring and other hedging tools in local subsidiaries Intensified its credit risk management to improve cash flow and mitigate its FX risk

12 Main colour palette Secondary colour palette Map colours FillLine Page 11 4/13/2015 1:51 AM IBD\ING\War O\P\X Financial results

13 Main colour palette Secondary colour palette Map colours FillLine Page 12 4/13/2015 1:51 AM IBD\ING\War O\P\X Financial results for Q Highlights 1)21.6% Q to Q revenues decrease 2)42.2% Q to Q gross profit decrease 3)In Q4 gross profit margin decreased to 4.1% due to FX losses, compared to 5.5% in the corresponding period of )Net Loss of US$5.427 as opposed to Net Profit of US$9.336 in the corresponding quarter of 2007

14 Main colour palette Secondary colour palette Map colours FillLine Page 13 4/13/2015 1:51 AM IBD\ING\War O\P\X Financial results for 2008 Key values in (in U.S.$ millions) Commentary 1)Despite the world’s financial crisis, revenues were higher in 2008 than in 2007 by 7% 2)Gross profit generated increased by almost US$ 10 million 3)Gross profit margin increased to 5.1% as opposed to 4.9% for )Net Profit reached US$5.1 Million as opposed to US$18.7 million in )Operating and administration expenses affected by the one time investments in new subsidiaries, 6)Seasonality effect dissapeared in H due to the crisis

15 Main colour palette Secondary colour palette Map colours FillLine Page 14 4/13/2015 1:51 AM IBD\ING\War O\P\X Revenue breakdown by regions Revenue breakdown by regions Q4’07 and Q4’08 (%) Revenue breakdown by regions 2007 and 2008 (%) 1)Q significantly weakened to Q in F.S.U. countries due to lower demand (ie in Ukraine) and FX losses 2)CEE Europe remained strong, despite the world’s financial crisis (increased revenues in Slovakia, Czech Rep., Hungary etc) 3)Another good quarter in the MEA countries, which seems to be less affected by the crisis and where the sales revenue is denominated in U.S. Dollars 1)Revenues from F.S.U. Countries decreased by 5% YoY. 2)Significant growth of revenues from CEE countries (Slovakia, Czech Republic, Hungary) 3)Strong growth of revenues in the MEA countries, due to company investments and broader customer reach

16 Main colour palette Secondary colour palette Map colours FillLine Page 15 4/13/2015 1:51 AM IBD\ING\War O\P\X Revenues - Top 10 countries Top 10 countries in 2007 and 2008 (in U.S.$ thousands) Pos.CountrySales 2007Sales 2008Change (%) Share (%) Prev. position Notes 1Russia ,128,731 (0)Especially with H results 2Slovakia ,110,993 (+1) 3Ukraine ,69,992 (-1) 4U.A.E ,95,347 (+3) 5Poland ,84,554 (-1) 6Czech Rep ,34,476 (0) 7Belarus ,7%3,20Out of top 10 8Romania ,53,205 (-3)Germany out of top 10 9Netherlands ,973,029 (0) 10Bulgaria ,62,69Out of top 10 Croatia out of top 10 Other ,423,82Incl. 15,7m in Turkey

17 Main colour palette Secondary colour palette Map colours FillLine Page 16 4/13/2015 1:51 AM IBD\ING\War O\P\X Revenue breakdown by product categories Revenue breakdown by products 2007 and 2008 (US$ thousands) Rev. breakdown by products in Q4 ‘07 and Q4 ‘08 (US$ thou.) Highlights 1)Strong 121% growth of revenues from laptops 2)Good 16.5% growth of sales of software, and 15% growth on accessories and multimedia 3)Stable revenues from CPUs in 2008, Q4 sales affected by lower demand 4)HDDs sales revenues affected by lower demand and increased market share of A-brands 5)About 40% growth of revenues from peripherials, 6)45% growth of sales revenues from PC desktops

18 Main colour palette Secondary colour palette Map colours FillLine Page 17 4/13/2015 1:51 AM IBD\ING\War O\P\X Forthcoming plans To manage costs efficiently To hedge against steep depreciation of the currencies To manage cash flow and improve operational efficiencies To benefit from 2008 investments (warehouse in Dubai, offices and subsidiaries in Bosnia & Herzegovina, Latvia, Turkey, Kazakhstan and Italy) To continue to benefit from good sales growth in Middle East and Africa, To sign new distribution agreements and increase our product portfolio in some markets (i.e. Poland) To expand some of the existing distribution agreements (i.e. on software and laptops) for more countries To develop sales of own brands To gain more market share in traditional components business, taking over share from weaker competitors GOALS For 2009

19 Main colour palette Secondary colour palette Map colours FillLine Page 18 4/13/2015 1:51 AM IBD\ING\War O\P\X Constantinos Tziamalis tel: fax: mail: Daniel Kordel tel: mob: mob (PL): mail: Investor Relations ASBIS Group Further Information


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