Asbis Enterprises PLC — Management Reports 2020

Aug 11, 2020

Title: The financial forecast for Y2020

Legal basis: Art. 17 ust.1 MAR - inside information

Message:The Board of Directors of ASBISc Enterprises Plc ("theCompany") hereby announces the Company's financial forecast for Y2020.

The Company forecasts that for 2020 will reach the following:

- Sales revenue at the level between USD 2.0 billion and USD 2.2 billion,-Net profit after tax at the level between USD 18.0 million and USD 20.0million.

Forecasted values result from the Company's strategy including - but notlimited to - more focus on sales in the FSU and CEE regions, increase inthird-party brands' distribution and continuation of stable back-to-backown brands business.

The significant assumptions made on the forecasted results are thefollowing:

- There will not be a second wave of pandemic and another lockdown whichmight lead to a significant decrease in consumer spending,

- The situation in our major markets of Russia, Ukraine, Kazakhstan,Belarus and Slovakia will not deteriorate, as compared to 2019,

- There will not be any major devaluations of the currencies of Russia,Belarus, Kazakhstan and Ukraine, and therefore it will not negativelyaffect demand on those markets,

- There would be no significant disturbance in the general economicenvironment in other markets where the Company operates,

- There would be no significant decrease in sales of higher-marginproducts and solutions in both Value Added Distribution (VAD) and APPLEproducts,

- Competition in all major segments will remain similar to that of 2019,with no new significant market entrants

- The Group will continue enjoying favourable terms from its keysuppliers,

- The Smartphones segment will not deteriorate more than 15% compared toFY 2019 in the markets we operate.

Realization of the forecasted results will be monitored by the Companyon a quarterly basis. The monitoring and evaluation criteria will be theachievement of budgeted revenues and net profit for each quarter of2020. In case of any significant variation between the actual andbudgeted results, the Company will amend this forecast through a currentreport.