The AB Group maintains the highest historical level of multi-direction activity and exceeds the scope of made promises in the area of pace of development of IT distribution and areas outside of core-business.

• Increase of financial results in Q2: revenues +27% yoy, EBITDA +17% yoy, net profit +21% yoy
• Record year 2014: PLN 6.4 billion of revenues, EBITDA at PLN 104 million, net profit at PLN 64 million
• Strengthening the no. 1 position in IT distribution in CEE, strong position on the household appliances/RTV market in Poland
• Dynamic growth of franchise by 25% yoy, up to 1.5 thousand POS (largest network in the region)
• Developed logistics centre: releasing the potential of added value in e-commerce

In the period from October to December 2014 (second quarter of the financial year 2014/2015) the AB Group, the largest IT distributor in Central and Eastern Europe recorded an increase of sales year on year by 27%, up to almost PLN 2.1 billion. This is the first quarter in the 25-year history of the company, when the barrier of PLN 2 billion in consolidated sales was exceeded. This allowed generating EBIDTA at PLN 39.2 million (+17% yoy) and PLN 25.6 million of net profit (+21% yoy). During the four quarters 2014, the AB Group noted record consolidated revenues at PLN 6.44 billion (+16% yoy), EBIDTA at PLN 103.7 million (+21% yoy) and net profit at PLN 63.7 million (+28% yoy). 2014 was the first year in history when the generated EBITDA already had 9 digits.

– Simultaneously, we consistently increase liquidity ratios, which are at high levels (e.g. current liquidity ratio is at 1.4). Although our net debt to EBITDA ratios are safe, we are still decreasing them. The value of the cash conversion cycle is also dropping. 2014 was another year when in spite of the dynamic growth of the scale of operation we generated positive cash flow from operating activity. We also paid out dividend in January. All this demonstrates how big is the financial power of the AB Group – says Grzegorz Ochędzan, Management Board Member for Finance in AB SA.

The most expansive product offer including 1.3 thousand worldwide brands, 95 thousand product indices, and over 16 thousand permanent business partners of the AB Group strengthens its leading position in Central and Eastern Europe.

– We are number one in all main categories of the IT market, usually reporting much higher growth in sales that the given category. We continue to sign new distribution contracts, listen to clients’ needs, create innovative solutions, and optimize business processes. We concentrate on sustainable multi-direction growth with particular emphasis on generating added value in distribution, and will continue to do so – says Andrzej Przybyło, the President of the Board of AB SA.

The AB Group reports significant growth in sales, amongst others in the segment of integrators, franchise networks, e-commerce, as well as new development directions such as household appliances/RTV and toys. A prestigious contract with Apple is also significant. It is worth noting the sustainable growth in all areas of operations.

– The success of the iPhone 6, which debuted in October in Poland, the Czech Republic and Slovakia became our success. All the more, the AB Group in these countries is the only broadline distributor of Apple products, including iPods, iPads and Mac computers – says Zbigniew Mądry, Management Board Member for Commerce in AB SA.

The fourth quarter of 2014 was also a period of intensive development of the franchise networks managed by the AB Group. They include already 1510 points, 25% more than a year ago. This is the largest franchise network in the CEE region, and a large, quickly developing channel of sales through loyal business partners to end clients. Special attention should be paid to the Kakto network, which specializes in household appliance and RTV. The network commenced operation in June 2014 and it already has 133 points of sale throughout Poland.

– Strong entry of the AB Group in the household appliances distribution segment and perspectives of further growth are one of the main reasons why we decided to build a new modern logistics centre. The general growth of the scale of operation of the AB Group is also very important. Most of all, however, this is about the very intensive growth of Internet sales and the potential we see in offering logistics services to our business partners – says Andrzej Przybyło.

Already at the end of May this year, the logistics centre of the AB Group in Magnice near Wrocław will be opened and its capacity in daily shipments will be larger 4 times than the current warehouse. Meanwhile, in Q4 2014 orders for dropshipping (delivery from the AB warehouse directly to the retail client, being a client of AB business partner) increased by as much as 25% yoy.

– After moving operations to the warehouse in Magnice, new logistic resources and quality of warehouse automation will allow to significantly develop the sale of the full scope of logistic e-commerce services, of course not only for the IT segment – underlines Zbigniew Mądry, Management Board Member for Commerce in AB SA.

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The AB Group is among the 10 largest IT distributors and providers of e-commerce solutions in Europe. It is number one in Central and Eastern Europe. It conducts business in Poland, the Czech Republic and in Slovakia, offering over 95 thousand products, including products from world’s largest producers of modern technologies, to over 16 thousand business partners. The group develops sales of household appliances/RTV and toys, already being one of the leading distributors in Poland.

The AB Group manages own brands: TB, Optimus and Triline, as well as own franchise networks: Alsen (Poland), Comfor (Czech Republic and Slovakia), Premio (Czech Republic) and Triline (Czech Republic), as well as Optimus (integrators – Poland), Kakto (household appliances/RTV – Poland) and Digimax (mobile and smart home solutions – Czech Republic and Slovakia).

In the financial year 2013/2014 (ended on 30/06/2014) the AB Group noted revenues at PLN 5.8 billion (+6% yoy), PLN 96.0 million of EBITDA (+29% yoy) and net profit at PLN 57.3 million (+37.5% yoy).

Since 2006, AB S.A. is listed on the main market of the Warsaw Stock Exchange. More information on the AB Group is available on www.ab.pl.