Thank you for coming. We are here one more time to present our Q2 and H1 results. At any point in time, please interrupt to ask any questions you may have. We touch key corporate events. In Q2, we grew almost 8% on the top line, $1.7 almost billion turnover. More importantly, we grew gross profit by 89% year-on-year, reaching $120 million. The margin was a bit lower, 7.07% for Q2. Most importantly, and we see details after, we managed to significantly increase the bottom line by 265%, exceeding $44 million for Q2, raising the bar to $80 million net income for H1. Main business directions, as we will see after the AI server and server component business is growing very healthily for the ASBIS Group. It still keeps its number one position exceeding the smartphone segment. The second biggest direction is the Apple growing very healthily year-on-year, approaching 40% growth year-on-year. We still concentrate on components distribution business, but we pay, of course, most of the attention on AI components, products of which we have the full range, both SSDs, HDDs, memory for servers, and the servers themselves. We continue also the consumer direction, engaging into more contracts with suppliers, both with own retail stores but also with third-party products. The second life business, the Breezy, we keep investing into this business, and we expect this business to continue to grow significantly. The ASBISc retail part of the ASBIS Group, we will see after that we are growing this business all over the globe with the most recent establishments in California. We have these 15 corporate venture investments. We continue, though in a smaller scale, in the AROS direction. Key corporate events. We are a star performer for Eastern Europe, for NVIDIA. For those who came to Cyprus for more detailed presentations, this by itself takes us into this ecosystem where NVIDIA is present, supplier of technologies are there, technology of NVIDIA into this business of our suppliers. We are the preferred technology distributor for this business, and we are mostly ultimately serving Tier 1 customers like Microsoft, Amazon, Meta, et cetera. It's not by accident we are there. We prepared well enough on time. We signed all the necessary franchises with suppliers. We are the NVIDIA preferred EMEA partner. Therefore, the gain out of this business coming to ASBIS on the technology distribution side. Recently, we opened the second shop, Bang & Olufsen flagship store in the U.S. in California, expanding our ASBISc presence, the retail arm of ASBIS. Recently, as announced, we gained the franchise of another 14 West Africa countries by Apple in an effort to further develop the business with Apple. We have 25 countries to distribute Apple products today. This eventually, after further development of this area, we expect significant growth in these countries. Partner awards, star performer for Eastern Europe, for NVIDIA. That says, I think everything. They prefer us. We are in this ecosystem. We are following up with NVIDIA being the partner of technology, of which goes into our supplier products. Therefore, this has opened already the door, and that's why the significant growth on this AI server and server component business for ASBIS. Some pictures from the second opening in California recently. I think with this presence, we are more or less becoming global players. It was historically Central Eastern Europe, then it was Central Asia, then the Gulf, then North Africa, then we had South Africa. Now we are expanding into West Africa, and now with this expansion of retail stores into U.S., we are becoming a global distributor. Premium and luxury retail business unit. We have already seven Bang & Olufsen stores, as I said, the last of which was in California. We are running Apple APR stores counting 36 in the number. With the recent acquisition of Matrix Media business in Poland earlier this year, we are expanding our footprint in this retail business. A business that is taking a significant part out of the whole of ASBIS business and is aiming to further increase, both for Bang & Olufsen, but most importantly for the Apple. Some pictures out of West Africa, a bright possibility for ASBIS to grow business. We already started and registered companies in Ghana and the Ivory Coast. We hired people, we rented offices and warehouses, and we are gradually trying to expand business there. So far, most of the business is run through the Middle East, the Dubai establishment, both for logistics but also for management of this business. As the local team grows, we will expand the business locally, local to local. This will take some time. We don't expect any material numbers this year, but from next year we expect to see both regionally through Dubai, but also locally to do more business in these countries. As I said, the main focus today is Ghana and the Ivory Coast. That's why the registration of companies and leasing of offices and warehouse space. Algeria is also a big market, known to us for more than two decades. We've been serving North Africa through Cyprus, logistically through Czech warehouse. Algeria, Morocco, Tunisia is countries we've been serving for quite long, successfully, I have to admit. But now with the franchise of Apple, this gives us a different perspective. Therefore, we want to leverage on that perspective and further grow the business starting next year. The characteristics of the population that we name there are very positive for us to engage into this Apple business, and grow business for ASBIS in West part of Africa. Geographically, Central Eastern Europe, Caucasus, Central Asia, South Africa, that also distributes product to whole South Africa part of the continent. Now we have West Africa. Through this establishment, we can do more business in nearby countries, of course, but we have already a lot. We have 25 already for Apple to grow business in. The future, I think, is bright given these extra distribution rights we got from Apple. A slightly amended Board of Directors for ASBIS. The three of us, Siarhei, Kostas, and myself are with the company. We are 25 years. Siarhei is from the beginning of the business. We had three executive, non-executive directors. Recently, we invited the ex-CEO of Bang & Olufsen, Kristian Teär, to join us and help the company also grow into this mostly retail segment that he has a vast experience of. A little bit on the financial results. I'm not sure you had the time to have a drill down on these results. We can cover it now, and if you want interrupt me to ask any questions. We talked about the top line, $1.7 billion for Q2, almost $3 billion for H1. Most importantly, we are growing on gross profit at a pace year-on-year, at a pace that is much better, much higher than the increase in the SG&A. A big question mark, but the answer I will give you right away, we have more or less flat financing costs because the company does quite well not only on the income statement, but on the cash flow as well. This is unprecedented for our group. I remember the group for the last 25 years, we never had such a positive number from operating activities, never before. We never had, for the six months, a positive cash from operating activities at this level with EUR 220 million bottom line on the balance sheet as net cash position. This is mainly driven, we will see some slides after. This is driven by an improved working capital management, improving cash from operating activities. We don't have any more, any significant CapEx on the investing activities. Therefore, we manage to grab more cash from customers on time or even early, and this is improving the receivable days. With this phenomenal growth on the top line, we are reducing inventory days. Therefore, the cash-to-cash cycle, both in numbers and in days, has significantly decreased. In shortage times, customers have the tendency to pay on time to get scarce product. A lot of times, I said it earlier, we get cash earlier. A lot of times we are asked by suppliers to pay a little bit early because of big deals, and we had to grow lines with suppliers from zero to EUR 200 million-EUR 300 million because of this phenomenal growth on the top line. Overall, we are gaining out of this product shortage into the market. Everybody makes good money and everybody wants to take advantage of that. Therefore, the cash flow is king to this growth. Any questions on the income statement before we move forward? Maybe one question to what you just said about the working capital management, especially inventory. The inventory levels are quite flat as well actually over time. The receivables and the payments increase with the revenue, but not the inventory. My question is- Same with the receivables. Yeah, the receivables increase a bit. It's visible, but not the inventory level. Is it because of the AI projects which do not. Mainly which do not require you to purchase the inventory and keep it on balance sheet? Is it because of this situation with stock shortages? It's a combination of these things. We are buying same or more product, but with this crazy demand, we are flushing it out. This mainly relates to this AI business. It's come and go product. It's not product to sit on the shelf for longer period of time. This is a phenomenon that is characterized by these product shortages. This is what is driving things. This is what is driving less days. Everybody pays on time. You have much increased sales. This is decreasing the inventory days. Yes. This is what is improving the cash from operating activities. In case the supply side improves and the shortages are to a lesser extent, we can expect increasing inventory levels in the future. We could. We could because you rightly said with 30%, 40%, 50% lower sales, we had same inventories. Now we are running this level of inventories with much increased sales. Everything requires management, you see. In good days and in bad days. The good thing about inventories is that we are authorized franchise distributor, and that's the difference between a reseller. We are covered on the inventories, but you still need to manage it. Yes. Yeah. For the Apple business, yes. That's sure. Not only for the Apple, I mean for the whole component business. They give you a space to return product that is going obsolete or out of life or That needs management. You need to know what is running out of technology and do something with the vendor quickly before the period lapses. Yeah. It's all about management. For the server business, do you expect the situation to change, that the company will have to sustain some higher level of inventories or rather not? Rather not, because this is what is actually improving. Okay. Yeah. I know. The cash flow. Yes. Thank you. What? Just one question. Please. Thank you. Congratulations. Very much. The cash flow generation again. Not quite sure which quarter. I'm telling the same. I noticed in the operating cash flow there were some provisions created, in the first quarter and the second quarter as well, so I assume that was accounted for on the gross profit level and decreased. No, it's below the line. Below the line? I saw your comment. It's below the line. Okay. It's sitting in selling expenses, not in gross profit. Okay. Thank you. There we are being prudent. Yes. We don't want to come in December and write a provision of $10 million or $15 million. Yes. The company is doing quite well. We always did have this conservative approach. When we see a problematic issue with a receivable, we don't wait until September or December, and then we, you know, they dislike us. The analysts say, "Why did you expect December if you saw the issue?" This time we did in December 25, we did in March. We are assessing, and we are providing. If the receivables do well, then we reverse the provision. If they don't, we touched all the quarters. We didn't wait for December, too. Again, it doesn't touch the gross profit lines below the line. What touches the line could be an inventory provision, but receivables provision is below the line. Okay, I couldn't find in the financial statement whether it's inventory or receivables. Because it's interim report, it's the IAS 34 you see. When you go full-blown financial statements and annual report, you would see that. Yes. It's in the notes. It's in the notes in the receivables anyway. You can follow the sub-receivable note that talks about provisions, beginning charge for the period, et cetera. It would be more analytical for the year. Could you please comment on the variance in the gross profit margin between the quarters as well as the year-over-year? It's still quite a decent level, but it's much below both the growth as well as the level that you had in first quarter. What's the split between the price effect and mix effect and so on, and where do you see the margin going forward? We agree that year-on-year we had an increased gross profit margin. Yes, it's 7.07%, but last year was much lower, well below 7%. That's one. It was lower than Q1. In Q1, in May, we were hearing, we explained that this significant increase in prices of server and server components having to do with AI technology. Vendors increase prices quickly, and we had a lot of stock. We took advantage of that stock, and we ended up with very high gross profit margins. We explained because a lot of analysts and investors asked the question. We didn't expect the gross profit margin to continue to be at those very high levels like in Q1, one would expect lower. If you ask me in May, how much lower? I wouldn't know. Was it 7.5%? Was it 7.2%? I don't know. What we know is that we elected to pick up a lot of orders on the table with lower margin. Maybe that's why we had $1.7 billion in Q2 of turnover. Could be much less. If you do that, you continue having business. It's business continuation, whether you drop. If you drop certain projects on the table, they may not come back to you again. These are not one-off projects. Yes. The Kazakhtelecom, for example, is a project that's been going on for two years. We still continue. Yes. There, the margin is much better because we are also the system integrator. Other projects come with lower margin. We elected to take it. The cash flow was strong. The cash flow out of this project was positive. The margin was a little bit lower, but we elected to do it. It's an election thing. My last comment. Is 7.07% satisfactory for Q2 for the company? It is. I expect this is the lower base of the gross profit margin we envision for the year. Yeah. I will follow up, if you don't mind. Do you expect the margin to drop even below 7% in the future, or rather should be a floor? I think I answered the question towards the end. From what I know now, I don't believe that the margin will continue slipping below 7.07%. Okay. The other one, the decrease quarter-on-quarter. In your opinion, it's more affected because of the price effect from the first quarter or rather the new deal effect, which we can see, I don't know, in sales to Netherlands, for example, or Taiwan. As you mentioned, new customers, low margins at first, later bundling and higher margins perhaps. Is it, in your opinion, the impact of the new clients or new deals bigger on the margin or rather the price impact from the first quarter, specifically? Some very big projects come with a lower margin. There is a lot of negotiation happening with suppliers, with technology distributors, with system integrators, with the end customers, with all the also Tier 1s, big names I mentioned earlier. Everybody has to make an election. Suppliers, will I give the price that Nebius is asking me in the Netherlands or project to go to America or project to go to Germany or not? Same we do. A lot of projects come with lower the margin 4%, 5%, and we elected to take it. It's big volumes, it's cash flow positive, it's good for the company. The impact of the new projects could be even higher, than the decreasing price increase, I would say, of the memory and so on, right? It depends on a lot of factors, you see. There is a lot of product shortage. Still prices increase, if not so sharply like in Q1, Q4, end of Q4, beginning Q1, there are a lot of factors. Finally, each company has to make its own decision. Okay. Yeah. Thank you. Yeah. Jacob. All right. I would like to continue with quarter-on-quarter comparison. Yes. But namely- Q1 to Q2, say? Sorry? Q1 to Q2. Yes. Q1 to Q2. Yes. Namely, as regards the SG&A, because you recorded more than 30% growth of revenues quarter-on-quarter, but your SG&A growth by only couple of millions. I'm just wondering whether it is only a pure operating leverage effect or there is something additional happened. Whether this SG&A to sales ratio, assuming they're more or less the same sales mix in the following quarters, should be also sustainable. It is sustainable, I believe, from what I know now. Main part of it is the expansion to West Africa. We started already having companies and employing people both in Ghana and Ivory Coast. It's the expansion of the retail arm in the U.S., expensive one. Yes. Some product expertise, especially on the AI segment, as we grow bigger and as we are becoming more evident in the ecosystem, we need more experts to help us, and these are expensive as well. Other than this, no other one-off big one I can name. We expect this level to be sustainable, Jacob, going forward. I think it's a very reasonable level given I would not touch the top line, I would touch the gross profit line. What's the percent of growth on the gross profit? Where we pay 50%-60% of the sales, marketing, PLMs, et cetera. It's on gross profit. I think we have a good ratio there. Yes, a lot of times we have to increase caps to people because with this business increasing so dramatically, you have to pay extra money to people, but that's part of the cost we are bearing, but affordable cost given the delivery of the gross profit they bring back to the company. Because of this cash flow, maybe we didn't touch the outside SG&A, the financing cost is more or less flat. It's more or less flat considering the top-line growth, 80% year-over-year is not a small percentage. The fact that the interest rates are not decreasing. We actually had 25 basis points on the euro increase, and we expect another one. Given these results, we don't have a lower. What did go lower? The margin we paid to the banks. We have a different company in front of us. We have EUR 400 million equity. We have a total balance sheet of EUR 1.6 billion. We are assessed better by the banks, this gives us a better margin. On the dollar and euro, we are borrowing, the last borrowings that we are not small at all was more than EUR 120 million. We are borrowing with a spread not exceeding 1.5%. We are doing a lot. We don't just rely and relax on margin increase gross profit. We do the utmost below the line, including the provisions, by the way. We are writing significant provisions there. We are not hesitating, we are still delivering a very good net income line. As a margin, net income, as a margin to say, is also improving as well. Okay, thank you. Can we expect in Q3 or Q4, when you sell probably more consumer goods, like iPhones, et cetera, the margin could be a bit higher towards the year-end? How would you assess it at the moment? I'm not sure I understand the question right to give you the right answer. Can you? If in Q3 and Q4, you usually sell more iPhones. Seasonality says. Seasonality effect. Can we expect a bit better margin towards the year-end due to this effect? I personally lost the seasonality trend in this company because Q2 is the lowest quarter in terms of sales and profitability, and we never had such a quarter in terms of profitability in any Q4. I'm lost a little bit with the seasonality. If this seasonality, the historic seasonality continues, one would expect, given the product launch of Apple sometime in September, to do better. To do better. Now, will the AI business continue so well in the next months? Depending on a lot of things. Supply constraints, pricing, very expensive. These big boys, Tier 1s, continue with no stop. They don't mind the price. Smaller the players may mind the price, we're dealing with those big ones for now. Yes, I have a tendency to also believe better. The margin will be better than both? That's what we expect. Maybe not much better, but better. Yes. Back to school, Christmas, because we are wholesalers. We have to feed the market from end of August, beginning of September. Yes. Following up on the seasonality and the launch of the new iPhones. Maybe any signals reached you about the shortages or potential shortages of Apple merchandise or for iPhone 18? There are obviously issues with RAMs because of the production of, because the switch, because the memory companies switched the production to AI memory, so we have less ordinary RAM memory. Does it affect the iPhones and maybe Apple already signalized something that there could be shortages of iPhones or, if not shortages, significant price increase of the new models? It affects everyone. I'm sure it affects Apple because Apple came up with a number of statements, public statements. They will decide what to do with their prices. A lot of articles talk about iPads and Macs, price of which to increase by 20%-25%. Will that happen or not? It's their decision, depending on what market share they want to keep. Does it affect Apple? Of course, it affects Apple. It affects everyone. The automobile companies, it affects everyone. There is big shortage, and this is a shortage we are running. That's why we are running these margins. Yes. That's why the cash flow is so good. Did you receive any information or signals from Apple that there could be issues with supply for ASBIS for the new launch? We had supply issues, we manage. Overall, we manage, and we have with AI business supply constraints, we manage quite well. I cannot say 100%, but 70%-80%, we manage. Will that get worse and the 80% drops down to, I don't know, 60% or 70%? I don't know. So far so good. Thank you. For now, you don't expect any trouble, for now, in this regard? No, we expect to make money. Yeah, that's good. If there are no iPhones, then. There will be iPhones. Okay. There will be iPhones, and if some vendors need to be prioritized, I'm sure one of them will be Apple. Yes. Okay. Hello. I have a question about your pipeline or backlog in servers and its effect on gross margin. You mentioned the mix in server projects especially affecting your gross margin. I was wondering, now you have a pipeline of over, yeah, almost $900 million. $900 million. Yes. What kind of projects are in this pipeline, do you think they are more margin supportive, higher margin, or those lower margin projects that were in the Q2? It has to do with the AI server and server component business, most of it. This is the backlog we see coming to us from our customers, placing a backlog with the technology distributor. Likewise, back- to- back, we place a backlog with suppliers. Still, there is a question mark. Will Micron, Solidigm, AMD, all these big players, Super Micro, be able to cover that backlog, delay the backlog, cancel the backlog, still remains unknown. We know from the numbers we've shown that we had these backlogs, and these backlogs crystallized into sales. That's why we came to these numbers. Yes. We expect this to continue. This creates the backlog for the next two to three quarters, touching also Q1 next year. This repeat has to do with AI server components. You don't exactly know yet the impact on gross margin that you have in your pipeline? Am I correct? We know some deals, what margin to expect. Some of them are big deals that are recurring, continuing deals for a big project. Usually, big projects, I think I said it earlier, comes with lower margin, and it's up to us. It's an election to pick it up with lower margin, call it 4%, 5%, with positive cash flow, and continue the business and keep the customer with you. It's an election. Yes. Okay, sure. Understand. Far, we elected to go for turnover, even with lower margin, but with positive cash flow. Today's price is losing about 4%, and probably there are some information that you thought that you are afraid that such a big sales will not be continuing third and fourth quarter. What sales? The 600 level sales, say? May not. May not. Possibly not. It is very- It could be not for July or for August. These are the slowest months for the year. Summer holidays, yes. We may see even higher numbers later on. We don't know exactly. We can have a feeling from the backlog. We see. We know what projects are being cooked and are recurring projects, but we don't know everything, yes. We continue the business. We continue satisfying our customers. We continue being in this ecosystem, being a preferred one distributor and partner to NVIDIA. That's the business we are in. We are not afraid of anything. You still have possibility to increase sales of servers and so on? There is. Rather, it is. Depending on projects Shortage- We don't create the projects. We work with suppliers, with NVIDIA on these projects. Yes. The Tier 1 create the projects. Yes. One of Chief of a big customer thought that he's not negotiating any price. He's paying everything what they require. I would quote, unquote what you said. Everybody cares about price. Some suppliers came up with very high prices, and we are left out of the picture, and their sales are much lower than others. Solidigm is a big example. Ex SK hynix that purchased the division from Intel. Yes. They are growing very quickly. They are approaching $1 trillion market cap company. Same with Micron Technology, by the way. With this exponential growth of the AI business, they are keeping lower prices than others, so it's a trade-off. Each company has to make an election. Yes. Not only the technology distributor, ASBIS, but also suppliers. Yes. They are not all behaving the same. Some technology companies, distributors, compared to ASBIS, may elect not to take a 4% or a 5% project for AI business. We may elect to take it. It's a company decision. The growth is there. Whether the growth will be at $600 levels, sales for the months to follow, I don't know. Especially summertime, maybe less, but the growth is there. Do you see also such a big growth next year? We see some of next year in this backlog, but too early to say for 2027 whole year. We expect, personally, I expect this business to continue in 2027 and onwards. This is not something that will finish in 2026 or early 2027. We don't have any indications that this business will end. The statement you made earlier coming out of one of those system builders, it's not by accident. Say, "We will continue paying, we will continue building." Yes. Your president made such a statement that he's expecting that it will be till 2030, so for next three, four years. We listen to the man. He has a bigger brain than mine. Thank you. We continue with the presentation or any other questions on the income statement? I'm sure I will get a lot of questions after the analyst drill down on the numbers, so I'm expecting them with your questions, and I will get back to you soon. Countries' revenues. Kazakhstan obviously is retaining its number one position. This IMEI registration is helping us a lot, killing more and more the gray channel, the VAT fraudsters coming into the market at times with much lower prices. This intensification, the efforts of the government, and it's not only Kazakhstan is doing it's whole Central Asia. Ukraine is doing it, Caucasus is doing it. It's helping us a lot. This AI business put a lot of companies that historically are not in the part of this top 10, like Netherlands and Taiwan, into top five, top six.. Ukraine, though at war with Russia, is doing quite well. Poland is keeping its number seven, number eight now position, growing healthily year-on-year. Below, we show the highest growth in these countries. The only comment I wanted to leave this slide with is that Central Asia is not only growing anymore with the Apple business. I gave you earlier an example of Kazakhtelecom, significant ongoing recurring project. We are also the technology distributor, but we are also the integrator for this project. That's why higher the margin. These countries also grow with AI business, not only with iPhones and the rest of the Apple business. How sustainable is Netherlands? Were there any big contract in Netherlands that just span for one or two quarters that it will end? Some of them may be built to Netherlands, but the ultimate projects may sit in Germany, may sit in Italy, may sit in U.S. mostly because these three Tier 1s I mentioned earlier are building in America, but not only. Some of them are in the Netherlands. Netherlands is considered to be a hub for this business. The Q2 numbers for Netherlands is not one big project that just happened in We have a lot of Nebius projects. That is Netherlands-based. Nebius is not only building in Netherlands, they're building everywhere. I'm not finding the ultimate destination of the product to show on the screen. I'm building this company, I'm showing companies like this. Yes. Apart from Nebius, the three, the two out of the three you mentioned that was Microsoft and- Meta? Amazon? Nebius is fourth one. Nebius is a big part of this ecosystem. A lot of suppliers have created separate teams to assist with Nebius projects, just focusing on Nebius, so big. Nebius, again, is not building for Nebius only, yes? Not yet. No. Nebius is working for Microsoft. Exactly, not only. Yeah, for Meta as well. Yeah. This can be direct or indirect customers, by the way. Indirect through Taiwan because they prefer the system integrator to be ASUSTeK or Gigabyte or sometimes they buy directly. Sometimes we build them in Netherlands, sometimes we build them elsewhere. They are all over the globe, not all over Netherlands or Europe. Yes. Could you perhaps share what were the approximate gross margins for sales to Netherlands and Taiwan? Lower than 7%. That's expected, but a bit more precise. Closer to 6%. Okay. 5%-6%, 5.5%-6%.. Okay. Not 4%-5%. Not all the projects with these names go with the same margin. Yes. No, that's understandable. Thank you. Is it typical to expect lower gross margins in Western Europe? It depends on the project, not the country. It depends if you have intermediaries acting as system integrators. It depends on the negotiation between the tier one and the supplier and a lot of others before it comes to us to accept or reject the deal. There is a lot of ongoing negotiation in the ecosystem. Some suppliers decided to increase so much the prices that nobody would buy from them. They sell only specific projects. They make a lot of money, but they don't run the sales we do as distributors or others as vendors. It's the election I mentioned earlier. These big tier ones, I think they are getting the credit out of these investments through their market caps because they are raising their market cap significantly into trillions, I have to admit. Some people say, "Why do they pay so high prices?" Because there is a benefit of doing so. They are not acting irrationally. We can go over if and see the regions. CIS, because of the growth in Kazakhstan, Ukraine, Azerbaijan, is leading the race. Continuing to leading the race. Western Europe, because of these AI projects and also other region because of countries like Taiwan, given this AI ecosystem, are growing very well year-on-year. Central Eastern Europe growing but not at this pace. Lower the AI business. We're still having but lower that. Middle East finally start to pick up given the clash, the war with Iran. It starts to feel better in terms of characteristics of the market and ability to sell more. Product lines, the server, and the server components and blocks is growing very nicely. I think we touched it from different angles in previous questions you guys had. The smartphones is growing very nicely, 36% year-on-year. Remains to be seen with a new iPhone how successful this will be and to what price. The questions I received many times. Eventually they have to increase prices. Mainly these two are the ones we concentrate on, the whole ecosystem is concentrating on, we do exactly the same. This slide. Go ahead. Last slide. Do you consider splitting the server group? Because it's so material right now that it's nearly half of the whole sales. Do you consider splitting it into separate categories? Like SSDs or memory. Yeah. Separate servers? Yeah. Something like this. If it grows much more, I think we should. It's already at very high levels, compared to the $1.7, the $723 is very significant. If this continues, we may. I don't know how much sense that would make to see if it's SSD for server or memory for server or server itself or cooling systems or other systems. It could be helpful during the price surges or when the price, for example, for memory specifically changes. Investors could estimate the FIFO effect, for example, a bit better. If you know what I mean, yes. I know what you mean, it's a difficult exercise for us as well to see. Okay. Not all the vendors do exactly the same. Memory is not behaving the same as SSDs. Some people prefer the HDDs to take care of that price increases on SSDs, especially for servers and the shortage. It's a real mess happening on prices. One thing we know is that we don't only grow because of pricing, especially for Q2. It's mainly volumes. It's mainly units. Yeah. I don't know how better to split. If there's any better way to split this. We are thinking about it. Far I think we are good. We'll see. We'll see if this, out of this EUR 1.7 was EUR 1 billion or EUR 1.2 billion, and we should do something about. Yeah. Okay. I see. Thank you. What part of sales to Ukraine is now servers and server blocks? 10%. Rather smartphones. 10%, but it's mostly Apple. Ukraine is a distributor of all products. It's a broadliner. Almost a broadliner. It's not only the Apple business, but the Apple business is growing more than the others in Ukraine. I repeated that this IMEI registration for Kazakhstan also applies to countries like Ukraine and other Central Asia, This is helping us a lot gain market share. A question about the technology of your servers. You are stating that you are selling majority of the NVIDIA GPUs within it. We are not selling the NVIDIA. The NVIDIA technology goes into our supplier products. We are the preferred partner of NVIDIA. We have a relationship with NVIDIA. They give us trade notes. We support their business, et cetera, and buys from specific vendors. The product we buy from suppliers of technology, not from NVIDIA. Mm-hmm. Okay. I will have another question therefore. First, within this technology stack that you are selling or providing with NVIDIA inside, where are you from between the A100 chips and the B200 chips, for example? How advanced are the servers that you are selling? Within this $860 million that you are providing in the pipeline, what's the amount of megawatts over there? That's a very detailed question you are asking. I'm not ready to answer. I don't have the information to answer it. Okay. The second one then, is that possible that within the nearest future you will be the direct distributor of the NVIDIA? Who? You. Everything is possible. Or opposite. Nothing is impossible. It's not on the table right now? It doesn't make sense for now a system integrator to become a technology distributor. It doesn't make sense for us to be a total integrator. Will a lot of suppliers go directly to the end customer and avoid the technology distributor? They haven't done it. We don't expect them to do it. A supplier doesn't want to become a distributor. Why would Micron become a distributor? They make a lot of money out of their technology. Yes. There is a space for everyone. Not for everyone, for certain companies. We are a certain company in this ecosystem, as a technology distributor, preferred partner to NVIDIA, having all the contracts of distribution because one vendor may become a distributor of one product. How can they get the rest of the products? It's a different business. Will they come to us and sell their technology, and then we do what? We take Micron as a customer, we sell to them? It doesn't fit. It doesn't sound right. There is space for everyone in this ecosystem. Do you think about new vendors? What I mean, actually, such a companies like Amazon, Google, they are right now big producer of these TPUs, GPUs. Tier 1s. Yes. On like this. Yes. As I understand for the time being, they use it only internally. Do you believe in the future they might sell it also to external customers? Do you believe this may be some kind of business for you as well? Up to them as a strategy-wise to decide. Are there any talks? Do you talk with them about this, that you could be- No. A distributor of this? No, they are in the ecosystem. We are talking to some partners of these people, either the system integrator or the supplier. We know that the ultimate product will go to these companies for certain projects. Not all projects go to these companies, of course. NVIDIA, is it true that NVIDIA considers production of whole servers and maybe reducing the distribution chain, which could then make it possible to directly work with ASBIS? Or is it not true? There are rumors, there are some press releases that NVIDIA, in fact, aims at. I don't expect. If rumors materialize, this is positive for ASBIS. They need a technology distributor. With know-how, with people, with expertise, with all the product lines in place, the whole product portfolio. They don't want to touch 20, 30 different distributors to get all the products they need to prepare a system. Those are important factors for ASBIS to be part of this ecosystem. That's why we are there. That's why we have value to this ecosystem. Yeah, for ASBIS, of course, also because of the relations with customers. For NVIDIA, it could be beneficial if they take over more of the production. They take over a bigger part of the production process, and if they could produce the whole servers on their own. I cannot judge for them, but my own opinion is that they have the right strategy in place, and it's not by accident that they're approaching $5 trillion market cap. Yes. Why change that strategy if it is so successfully proven so far? I don't understand. We had a lot of questions like that in earlier years. Dell is coming to Europe. Will they go direct? They have a direct model in U.S. They've never gone direct in Europe, especially emerging markets or Eastern Europe, Central Asia. Hmm. With what a cost? Didn't make any sense. I don't believe this makes sense for a company this size. My own take. I may be wrong. Okay. Thank you. SG&As? Sorry. Please. It means that you do not have any direct relations with NVIDIA? We talk to them. They come to Cyprus every- e very quarter. You are not- With peace. buying from them? No. And? No, we are working with them. We are partnered to NVIDIA. We are a preferred partner to NVIDIA. Well, that's my question. Why you are the star performer for NVIDIA? We are a good company. We have the know-how. We know NVIDIA technology. We study NVIDIA technology, and we pass exams. Not personally me. We have technicians that work with NVIDIA on their technology to promote their technology. That's why they rebate us, not being a direct customer. They rebate us. We are partners. They are pushing their technology through the technology distributors. Know-how, we are the technology partner preferred for this ecosystem provenly with all the product in place, franchise of the products in place. We assist the ecosystem to work properly. Swiss watch. That's why we are preferred partner to NVIDIA. All the ingredients to be a preferred partner for NVIDIA are there for us. That's why we are for Eastern Europe and maybe for other regions as we go forward. As SG&A, I think as a percentage of turnover, we are doing quite well, if you agree with me. The incremental increase in the number of staff, given the expansion in America, expensive one, and Western Europe, also expensive, also expanding now in West Africa, the benefit of which will come only 2026 towards the end or maybe 2027. We still need to make investments. You remember, we were growing as SG&A, and you were asking, "Guys, why are you growing as SG&A so quickly, so rapidly?" The gross profit is not even at that level at times, couple of quarters. Of this AI technology, we were preparing. We didn't know exactly when that would happen, and it happened in Q2 2025. They say, "Oh, that's why." We are in the business every day. We don't expect you to know exactly what we know every day. I'm not totally into the technical business every day. I'm managing other parts of the company. This is now evident. Now you understand why. I think overall, we are doing okay with the SG&A. We have to pay people a lot of money, but they make a lot of money for us, so that's okay. We are not losing staff. In this whole environment, we are not losing staff, which is very important, very critical because you have the NVIDIA preferred partners position, but it's not a guarantee you will continue having it. Same with suppliers. It's not a guarantee that Intel, AMD, Solidigm, Micron, all these people will love you going forward if you don't deliver numbers. Yes? To deliver numbers, you need the right staff. It's about people That's very important as well. Outside the SG&A, I talked about financing costs that we are doing very well given the growth. Yeah. I have a question. With the expansion of operations in Africa and the U.S., how many new employees are you planning to add in the next quarters? Many new markets to cover, probably we see a small move in the second quarter, but I think it's not complete, right? It's not complete yet. Ghana and Ivory Coast we just started U.S. Each shop takes 25, 26 people, depending on the size. We want to have another two in California. We want to have some more in West Europe. More announcements will come. Yeah. A few hundred people, by the end of the year? 200. 200. Okay. Maybe less. The rest will be 27 because everything takes time. It's not you hire 200 people and then you start growing business the next day. Yes. It will go gradually, yeah. Understood. Thanks. I would still have a few questions to the previous slide on AI servers and components. Yes. You know more than me on AI servers and components, so I'm not sure. I'm still learning. There is a lot to learn about the space. I remember the slide for 2025. There were some revenues for DRAM, NAND memories, and so on and so forth. Now the slide changed a bit and it's about servers more. That's a slide you saw in Cyprus. No, in 2025 We also showed it here. Yes, we also showed it here It was in a full-year presentation. SSDs- Yeah. Memory. Yes. My first question, for 2025, the sales in these segments were related mostly to generally memory, and now you are selling more the whole servers, the whole racks, like GPUs, memory, all that networking equipment inside one rack, right? This slide is changing and now the current server pipeline of $860 million relates to the whole business. I mean the memory racks and so on and so forth. It's the whole segment, right? It is. Now for the servers and GPU and clusters, that's almost 12,000 GPU units. It's not a big number and out of that, 80% of those are related to NVIDIA, right? Yes. That's how I should understand this slide. That's how I understand it as well. Okay. The rest is probably AMD or something. Yes. I give you an analysis. For the six months outside Apple, my second supplier is Micron. Micron is mainly selling memory for servers and then SSDs, much lower SSD. This is the answer. This is my second supplier, biggest supplier. Of course. AMD is number three, number four, number five, depending. Yeah. I understood this that way. I remember the slides from Cyprus, so I understood that Micron is second one to Apple, right? Yes. I would also have the same question as Richard previously. Among those 12,000 GPU units, it's not a big number, but still it's probably be bigger. How much of that is H100, B100, 200, 300, GB200? The prices of those NVIDIA chips are much different, right? The value of those contracts would be much different based on older GPUs or newer GPUs. Actually, it would be important for us to know this segment better, to maybe analyze this segment better if you could for the future. I think we bought meetings in Cyprus with the right people, yes. Like the VPs for these product lines, like Marek, like Yuri, like Sergey as well, but especially the people who are dealing with it every day. I think it's important as part of these meetings we are organizing every year, A, to continue every year. Maybe to be more focused on this type of business because this helped a lot of people understand this business better and grasp more what's happening, what's happening in the ecosystem, why you, why NVIDIA and you, why, you know. You need the right expertise to answer a lot of those detailed questions. Yes. Yeah. It's very detailed, but it's very interesting. I'm not an NVIDIA technician, licensed, but we have a lot. Yeah. Okay. Thank you. If you get an analysis of our top five suppliers, that will give you the answer. You split that analysis by Micron SSDs and Micron memory for server, you will understand and that will give you the answer. It's Apple, Micron, and- say AMD. AMD. people like Solidigm. Seagate- SK hynix before, are following Western Digital, Seagate after. These are the big suppliers, mostly on the server side. That's why they grow so quickly into top five, top six. Thanks. What is situation in South Africa? Because there is not big sales. It's doing quite well. It's tough because you have a second distributor there. We are the second distributor to Core. It's tough. It's not affected by Iran at all. You mean second distributor of- Of Apple. Of Apple. Yes. Core was there. They gave a second distribution to Core. There is a lot of fight to get market share and save some money to make profits. It's challenging, but we love challenges. Yes. South Africa is not between these biggest 10 countries. We are growing very quickly on the AI, you see. That's why everything is blown up. Seasonality is blown up. Split by countries is blown up. Where was Netherlands a couple of years back? Where was Taiwan a couple of years back? Everything changed. The fact that they are doing well, but they're not doing so well as the rest of the business is exactly what we are describing here. Yes. South Africa is doing well. They got good sizes. Remember we were saying we can do $50 million or $100 million or $150 million. $100 million now. Yeah. We are doing quite well. Okay. Thank you. Sorry, one question from me. Don't be sorry. That's why I'm here. Yes. Okay, on the memory market, because there are a lot of headlines what's happening there about Chinese players coming in maybe for this market. If it's possible, would you start working with this CXMT, the company that is producing DRAM in China? There is a second one Chinese producer, but it's about NAND memory. Would you consider such- Why not? We are a technology distributor. Yeah. All right. If their product becomes so famous and wanted by the market, why not? Okay. Just, I remember one last technical question, because there are NAND, DRAM, and this HBM that it's inside the servers. With this HBM, do you distribute this kind of memory, or it's just inside the server, you don't deal with that at all? I didn't find that on your presentation. I just saw DRAM. It's not so big for us. Yes. It's in the server. We don't buy directly. It's not a separate line. Yeah, okay. Thank you. When it comes to memory, we have all the suppliers. We have the Kingston, we have the Samsung, we have all the boys. All the known ones for servers, we have them as suppliers. That's why the preference for us is to be in the ecosystem. We don't have just Kingston, and somebody asks for Samsung, and then you're out, then they are looking for another technology distributor. That's the beauty. One-stop shop. Do you buy a lot from, I don't know, Samsung or Hynix, for example, compared to Micron? SK Hynix became Solidigm now, the new name. Okay. I wasn't aware. We have them as top five suppliers. Okay. They purchased a part of Intel a couple of years back, they grew very quickly with us. Very significant level. Lower than Micron, but still very material. Okay. Working capital cash flow, I think we touched a little bit before. We are continuing to improve cash from operating activities by improving management of our working capital. Cash to cash cycle has significantly decreased because customers are paying on time, because we don't have enough inventory in the warehouse, especially this AI business is shifting quickly the inventory out of the warehouse. This is improving the cash flow. Customers pay early even to get product and make money. H1 was the first time in history of this group that managed to generate a positive number, to this extent of $77 million is unprecedented. If you look at the cash position under current assets, we had more than $300 million cash, first time ever, with net cash position of $220 million. It's historic. This has never repeated itself. Again, having in mind the seasonality. Supposedly this is their slowest quarter, the slowest pace on working capital movement, still we manage to stay very healthy. The election I mentioned earlier has to do with cash flow as well. If a deal is, say, 3%, not 3%, 4% or 5%, with a positive cash flow for the company, we may elect, we elected in Q2 to take most of these, if not of all those deals. Working capital is doing quite well. Very healthy for the company because this is the main source of us being able to drive increased sales. We didn't grow debt by half a billion to grow the sales. We grew, we improved working capital. As a result of that, the debt utilization is very low, very healthy as a ratio to equity. End of June, we had actually zero. Excluding factoring, we had zero, including factoring, we had actually negative, but we don't have any debt. As I said, the equity is growing. End of June, we had $400 million of own equity. I think we are well-prepared to continue with this growth or even accept higher the growth on the top line. To continue dividends. To continue dividends as well if this is the cash flow situation of the company, yes. Because when you grow 80%, you have to assess whether you need this money to grow. Forgo growth is not an easy answer, but we elected to improve, and we are improving given the shortage, this working capital management, therefore we continue paying dividends. Actually, we pay more dividends. Last year is the first time we paid more dividends ever. In Polish zlotys it was the same. The same in zlotys. Even lower. Yes. Remember about this. Yes. I don't remember everything, but this I remember. Yes. We will continue doing that if the cash flow allows and is so healthy like it is today. Talking about dividends, that's I think the last slide. This is the nine years in a row continuing to pay dividends and holding a policy, a dividend policy saying that we can pay up to 50% of our net income as dividends to our shareholders. We continue doing that. If the cash flow allows, we will continue paying these percentages as we grow bigger in profitability. Thank you very much. I'm ready for more questions. Maybe it's a bit silly, but I wanted to understand it better. If you buy the HBMs from Micron directly, right? For example, from Micron, what is the supplier of GPUs? Because not NVIDIA directly, what company then? Intel. Intel. Okay. AMD. Supermicro or something more? Supermicro have the server. Okay. The NVIDIA technology. Yes. Dell, yes, as well, or? Dell. Okay. We buy the HBMs directly from Micron, the rest purchase from these Dell and other OEMs. One more question for the receivables, write-down or allowance. Provision. Yes, provision. Excuse me. Yes, provision. Of course, you're being very prudent, which is great, I suppose, especially in such successful quarter. On the other hand, from what I see, it's been already $4.4 million in the first quarter, now nearly $4.5 million, and after first quarter, you mentioned that it mostly concerns some older projects, and hopefully we will not see further provisions. What went wrong then that we see more provision in the second quarter as well? What went wrong is we are running more business. Running more business, that means taking more risks. We are having a $3 billion company in the six month. You allow credit to customers. So the- You don't sell on prepayment. Sometimes you do. That takes additional credit risk, and we elect to take it. That's a business decision. Yes. Most of the customers are credit insured, but sometimes we may give, you have a $2 million credit line, insured credit line, you may give $3 million to the customer. Sometimes you have issues with the customers. Therefore, if you are a prudent, conservative company, you make provisions. If these provisions look unnecessary towards the assessment end of Q3 and then end of Q4, you may release the provisions and create additional profit for the company, depending on the outcome of these problematic issues you're facing. It's a good practice to do it quarterly. That's clear. To be clear as well, first quarter was some older issue, now we are talking about the more likely fresh receivables being subject to a provision. Some fresh receivables take provisions to be on the prudent side. Some of it is historic issues that your 2025, not historic issues that you continue to assess. If they need more provisions, you make more provisions. If not, you don't make any more provisions or even release the provisions. To be clear, these are two different topics, like what happened the first quarter and the second quarter, not one customer. One customer comes back from 2025. We did provisions in Q1 and Q2 for this customer. The same one? The same one. The rest of the provisions are general provisions. Could you tell how much is attributed to this certain customer? We have some big customers. We have some small customers. Altogether, it's EUR 4.4. Yes. Okay. Compare this $4 million, $4.4 million provision to the $3 billion or $1.7 billion turnover in Q2. It's very reasonable. Generally, you expect these provisions to be more common in the future because of the business growth? Common, I mean, it's part of the expense. It's part of the cost of running business on the credit side. Yes. You have credit insurance costs, significant costs, selling expenses. You have provisions for bad debts also sitting under selling expenses. My point is that from analytical point of view, we shouldn't treat it as if one-off, but rather it should be maybe not expected, but it's regular. It can- We always had credit issues throughout the 36 years history. Not at that size. We never had EUR 3 billion in Q2 in six months. We are a different size company. The EUR 2 million of last year Yeah? It's double today, yes. No, for whole half year, it's 8.9. Because of specific issues we had from end of 2025. Okay. Half is regular. Okay. Thank you. You want to have questions? Yeah. If you are looking at the data center market, and the geographies that you're currently in, and you are trying to enter, do you see the acceleration, deceleration, or stabilization of the number of data center projects that are to be announced in the nearest future, or? Overall, we see growth, not necessarily every month in, month out. Out of these EUR 600-plus million we showed the last two months, 40%, 50% of it is AI server and server components. That will not necessarily continue, especially in the slowest months of July and August, summer holidays. We see that the future is there, that this business continues to grow. Yes. Although prices have gone so high, though shortage into the market by suppliers, especially memory, we still see growth. At the geographies that you are present and you are planning to enter, what's your current market share? On what? In servers. In servers? Yes. In Kazakhstan, it could be, I don't know, because of this Kazakhtelecom that was the biggest ones, we got everything out of this project for the last two years. On this project, we are 100%. On overall Kazakhstan, I don't know. This is why I'm asking more about the whole geographies that you are in and you might be entering. The Nebius projects are billions and billions of projects, yes. They are building everywhere in the globe. The rough approximation that, let's say that 10GW of data centers are to be built in the nearest future in the region, and there is EUR 10 billion per gigawatt of servers, you have much below 1%. It's not only us in the system, you can see the announcements of these Tier 1s, big names of which I mentioned earlier, and see how many billions they are declaring they will invest into this business for the next years. It's unprecedented figures. I have no reason to believe, we as a company have no reason to believe that this business will stabilize or decrease in the nearest future. You can see the announcement, these public announcements of Nebius, of Meta, of Google, of all these boys, Microsoft, are declaring their CapEx on this AI. I don't see slowdown. I knew that company is not publishing projects of finance and so on, but I tried to make some assumptions of possible net profits this year, and it is. What's your estimate? It's $172 million. It's a good number. This is my question. Do you have bigger prospects or? I wish I knew. You have some budget. It's a good number. $172 million is a very good number. We did already $80 million. Okay, understand. You cannot. There is a lot of question marks. I mentioned price, I mentioned supply constraints, shortage, possibly new players into the memory business coming from China. We'll see. So far, so good. Business is there. We are running this business. We are ready for further growth when it comes to financial strength of the company. That's what we care, the basics. The rest will come. Like it did come for the six months, EUR 3 billion turnover, EUR 80 million profits. Now we're doing the right things. The rest, the market will decide. Okay. It's a good number, EUR 172. I like the number. I like this number. I thought you would ask me also EUR 172, what part of that relates to dividends, you didn't ask the question. ASBIS, it is a company with a model which needed money, needed cash. That's why. It's coming internally. But- It's internally driven cash flow with this working capital management. Internally, yes. Beauty. You're not exposed to external finance. There you may have limits. Now, generated internally. Beautiful. You have the ability to pay dividends. Say, "Guys, I will not pay you dividend this year because I'm growing 80%." You'll not like it. We will not like it. We are all shareholders in this company, so the company's in good financial strengths, not only income statement, but cash flow, balance sheet cash flow. Yes. Congratulations. Thank you. This is fantastic records. We are doing our utmost the last 25 years in the company to get there. Okay. Thank you very much for your questions, for being here today, for bearing with us so many years. Crossing fingers we continue delivering good profitability, good cash flow to you guys. Thank you for being shareholders of this company, for following up on us. We appreciate this. Thank you, guys.