Asseco Poland Solutions for Demanding Business
www.asseco.pl/en Agenda
. General Information
. Financial Highlights
. Business Outlook
. Appendix
1 General Information
Our mission is to build the trustworthy and profitable global IT company providing our customers with high quality software and services
Company profile:
• The largest Polish IT company listed on WSE
• Among the TOP10 software producers in Europe
• Companies from Asseco Group are listed on WSE, TASE and NASDAQ
• Focused on selling proprietary software and services
• Strong financials with great track record
• 2010 net profit of PLN 415 m
• Positive cash position
• 10%-40% Dividend payout
2 Product Offer – Software for Different Sectors
Financial Public administration General Business
Banks Government Telco
Insurance Municipalities Utilities companies
Brokerage Healthcare Power industry houses
Investment International Gas industry funds organisations
Leasing Manufacturing, Social security companies trade and services
Factoring Uniformed FMCG companies services
Mortgage Education Multimedia savings
3 Market Data and Stock Performance
%∆ 1) 2011/11/25 YE ’10 75 Asseco shares traded with 23% discount to consensus target price2) Share price 46.24 -12.8% 53.00 65
P/E 8.64 -12.8% 9.90 23% 55
Av. daily trade [tho] 5,809 -39.1% 9,532 45 Dividend policy 10%-40% of net profit
Shares outstanding 77.565.530 Asseco Av. 35 10-12-01 11-03-01 11-06-01 11-09-01 11-11-25
Shareholding structure at GSM as at 2011/09/21 Codes:
AVIVA pension fund 11.35% Bloomberg code ACP PW
Adam Góral /CEO/ 10.42% Reuters code ACPP.WA
PZU pension fund 6.45% Warsaw Stock Exchange ACP ING pension fund 5.16%
Free Float 66.62%
1) Year-end closing price; 2) 2010 Asseco market share prices, figures in PLN. Target prices from 12 Brockerage Houses; Discount calculated as yearly average consensus /64.0/ to yearly average share price /49.0/
4 5 European Presence
Truffle 100 ranked Asseco 7th European software vendor in 2010
Shareholding: 46.47% Shareholding: 55.00%
Shareholding: 85.00% Shareholding: 40.07%
Shareholding: 51.96% Shareholding: 100.00%
6 Asseco Group in the world
- Asseco Group
7 8 Asseco Group Business Units
Poland
Israel
Dor
Central -
Woźniak
Europe
South Eastern ERP
Europe Wojciech
Banking
Insurance
Leader: Marek Grac Marek Leader:
Healthcare
Leader: Roni Al. Roni Leader: Leader: Marcus Marcus Haller Leader:
DACH Piwowar Paweł Leader:
Leader: Leader:
Leader: Zbigniew Pomianek Zbigniew Leader:
Telco & Utilities & Telco
IT Infrastructure IT Leader: Przemysław Borzestowski Przemysław Leader:
South Western Administration Public Europe
Northern Europe
9 Agenda
. General Information
. Financial Highlights
. Business Outlook
. Appendix
10 Financial Results from Top to Bottom
Consolidated Revenues Proprietary software 3 500 2 500 2Y CAGR 7.8% 2Y CAGR 14.0%
3 000 2 000
3 238 2 500 3 050 1 500 1 975 2 068 2 787 1 591
2 000 1 000 2008 2009 2010 2008 2009 2010
EBITDA EBIT Net Profit 2Y CAGR 8.4% 700 700 700 2Y CAGR 7.3% 2Y CAGR 13.6% 550 550 550
695 646 415 592 569 400 400 526 400 373 494 322
250 250 250 2008 2009 2010 2008 2009 2010 2008 2009 2010
Figures in PLN millions
11 Consolidated Revenue 2010 Product and Segment breakdown
2010 %∆ 2009
Proprietary software and services 2,068 4.7% 1,975
64% 17% Third-party software and services 558 8.1% 516
Hardware and infrastructure 592 9.4% 541
1% 18% Other sales 20 12.9% 18
Total Revenues 3,238 6.1% 3,050
36% Banking and finance 1,175 6.0% 1,108
Enterprises 1,036 -9.4% 1,144
32% 32% Public Institutions 1,027 28.7% 798
Total Revenues 3,238 6.1% 3,050
Figures in PLN millions
12 Backlog of Orders for 2011 (in comparison to actual results for 2010) CONSOLIDATED Sales revenues Proprietary software 4 800 4 800
3 200 3 200 144% 4 655 165% 1 600 3 238 1 600 3 416 2 068
0 0 2010 2011 2010 2011 STANDALONE Sales revenues Proprietary software 1 500 1 500
1 000 1 000 110% 1 284 1 168 104% 500 500 813 843
0 0 2010 2011 2010 2011 Figures in millions of PLN; orders backlog as at 9 November 2011
13 Agenda
. General Information
. Financial Highlights
. Business Outlook
. Appendix
14 Banking and Insurance Divisions
Successes in 1Q-3Q 2011 Key Accounts . PZU Group – implementation of Oracle eBS ERP system . PZU SA – prolongation of support for IBM Informix . Bank PKO BP database (Asseco Insurer System) . PZU Insurance Group . ING – insurance system dedicated to group insurances . Bank Ochrony . ING Bank – development of e-Banking system Środowiska . Getin Noble Bank – development of def3000/TLR Teller – . Bank Gospodarki sales support system Żywnościowej . PEKAO SA – upgrading of credit risk management systems and SARA system . ING Bank . Deutsche Bank PBC – development of e-Banking system . Getin Noble Bank Hot opportunities . Deutsche Bank PBC . Cooperative Banking . Volkswagen Bank Polska – Core Banking System Group . BGK – Core Banking System . PKO BP – Data warehouse project, new FrontEnd (def3000/UFE) and CRM (Star CRM) solutions and new Treasury system (Tresus)
15 Public Administration Division
Successes in 1Q-3Q 2011 Key Accounts . Agricultural Social Insurance Fund (KRUS) – development of comprehensive Database . Social Insurance . Ministry of Education – education and e-learning platforms Institution (ZUS) . Central Office of Geodesy and Cartography – . Agency for Restructuring implementation and maintenance of IT system to support the INSPIRE program (UE requirement), and development and Modernization of of GEOPORTAL 2 system Agriculture (ARiMR) . Ministry of Finance – execution of a comprehensive system . Ministry of Interior and to support business start-up processes, along with training Administration applications . National Healthcare Hot opportunities Fund (NFZ) . e-health / RUM– implementation of central health system . Agricultural Social . Silesian e-card – implementation of multifunctional card Insurance Fund (KRUS) system in Silesia . Central Statistical Office (GUS)
16 Enterprises Division
Successes in 1Q-3Q 2011 Key Accounts . ITI Group – Value Added Services (SMS, MMS, IVR Video) on the Asseco platform . Telekomunikacja Polska . PKP Informatyka – maintenance support and development . PTK Centertel of the existing IT infrastructure . Lotos Group . TP Group – development of the advertising management system . PGE Dystrybucja . EnergiaPro – Readouts Collection System (ADO) . Energa . PGNiG – supply of hardware and IBM WSRR systems . PGNiG . Vattenfall – supply of internet customer services center . PKN Orlen . PGE – implementation and maintenance of Asseco UMS . Tauron system (Utility Management Solution) . Vattenfall Hot opportunities . Tauron Group – Network Estate Management & Centralization of Billing Systems
17 Agenda
. General Information
. Financial Highlights
. Business Outlook
. Appendix
. Subsidiary Companies
. Selected References
. Other Financial Information
18 Financial Figures Regional Revenue, EBIT and Net Profit Contribution – Q1-Q3 2011
Revenue contribution EBIT contribution Other PL ASEE Other ASEE 10% 7% 33% ACE 2% 9% 11%
ACE 10% PL 57%
Formula Formula 23% 38%
Net Profit (100%) contribution* Net Profit contribution**
Other ASEE ASEE Other 2% ACE 8% 6% 1% 7% ACE Formula 11% 14% PL 72%
PL Formula 50% 29%
* Sum of total net profits (without dividends) of the members of each group. ** Net profit adjusted (without dividends). 19 Financial Figures Regional Employment Contribution
Employment contribution*
Other; 956; 7% ASEE; 1 188; 8% Formula Group; 6 257; 44%
ACE; 1 516; 11%
PL ; 4 251; 30%
Total employment*: 14 168
* Average Q1-Q3 2011 employment as in the reporting packages at 30-09-2011 (with the exception of Sapiens (Formula Group) for which the average employment is calculated on the following assumptions: average employment in Q1-Q2 2011 = 388 (as in the reporting package at 30-06-2011), average employment in Q3 2011 = 0.)
20 Poland Region Introduction
In brief Main customers Asseco Poland is the largest IT company listed on the Warsaw Stock Banking and Finance Exchange. It specializes in the production and development of software. Bank PKO BP, Polish Insurance Institution, Asseco successfully provides its products and services for the each Bank Ochrony Środowiska, Bank Gospodarki segment of economy. Asseco Poland S.A. is also a key driver in building Żywnościowej, ING Bank, Getin Noble Bank, multinational group of profitable information technology companies. Deutsche Bank PBC, Allianz Bank, Group of co-operative Banks
Core competences and important facts Enterprises def3000 – is an advanced IT suite providing comprehensive services for Polish Telecomunication, PTK Centertel, banks of various operating profiles. Its modularity enables clients to Lotos Group, PGE, Energa, PGNiG, PKN purchase and deploy only needed software, realizing substantial Orlen, Tauron, Vattenfall savings. The def3000 can be tailored to fit client. Asseco Poland SA has been a partner to the world’s leading banks and financial Public Administration institutions for many years. Social Insurance Institution, Agency of Development and Modernization of Promak Plus - is a state-of-the-art system that ensures end-to-end Agriculture, Ministry of Interior Affairs, support for a brokerage house on the financial instruments secondary National Health Fund, Agricultural Social market (both domestic and foreign) with regard to front-office Insurance Fund, General Statistical Office (customers, orders) and back-office (accounting, reporting). KSI ZUS – Tailor made solution for social security Softlab / Safo / WaPro – Asseco ERP solutions improves works in such areas as, finance and accounting, human resources, payroll, sales, logistics, controlling, production, BI or WMS. Application flexibility Asseco Poland MCAP PLN m allows you to create a dedicated industry-specific solutions, as well as 4 000 their adaptation to the required business model virtually any type of 3 750 organization. 3 500 Billing systems for telecoms, utilities and energy sector 3 758 3 875 Systems for hospitals and clinics 3 250 3 572 3 566 Complete solutions in areas: Hardware, Operational systems & 3 000 databases, Infrastructure, Information exchange 2007 2008 2009 2010
21 Poland 2010 Product and Segment Breakdown*
2010 %∆ 2009
Proprietary software and services 1 147 -1,2% 1 161
21% 62% Third-party software and services 391 -3,1% 403
Hardware and infrastructure 302 40,5% 215 17% 1% Other sales 15 -22,2% 20
Total Revenues* 1 854 3,1% 1 798
32% 2010 %∆ 2009
Banking and finance 586 -18,7% 720
42% Enterprises 480 1,1% 475
26% Public Institutions 788 30,8% 603
Total Revenues* 1 854 3,1% 1 798
* Excluding consolidation adjustments; Figures in PLN millions 22 Financial Results from Top to Bottom Poland
Total Revenues mln PLN EBIT mln PLN 2 100 450
1 555
1 400 382 BL 300
1 775 1 825 420 419 700 150 1 172 289
0 0 2009 2010 1Q-3Q 2011 2009 2010 1Q-3Q 2011
NPAT (100%) mln PLN NPAT (for Asseco) mln PLN 510 510
340 340 488 466 170 382 294 170 367 281
0 2009 2010 1Q-3Q 2011 0 2009 2010 1Q-3Q 2011
Figures in PLN millions
23 Central Europe Region Introduction
In brief Main customers Asseco CE operates in Slovakia, Czech Republic and Hungary. It is one Slovakia of the largest software houses in Slovakia, strongly positioned in the Slovak Saving Bank, Post Bank, UniCredit provision of information solutions for the public institutions, in particular Bank, Slovak Insurance Company, Allianz, healthcare. Asseco CE also provides solutions for financial institutions as General Health Insurance Company, Tax well as global brand names of the enterprise and utilities sector Authority, Central, Slovak power engineering, Czech Building Society, 3 of 4 Core competences and important facts regional Water Distributors Czech Republic StarINS - is an end-to-end, modular insurance system that allows for Czech Building Society, ČSOB and ČSOB managing insurance agreements throughout their lifecycle, complete Insurance (members of KBC Group), Czech with secondary information management. StarINS covers and post, HVB Bank, Ministry of Transport, automates all insurance activities in a process-oriented, not product- Ministry of Finance, Central Securities, oriented manner Philip-Morris, E.ON, N-ERGIE Nurnberg, GIS / TIS - field of geographical and technical information systems are Skoda Auto, BMW AG, Bayer, BASF AG, LIDS (registration and management of immovable assets); TOMS Vattenfall Europe Mining AG, T-Mobile, (management and operation of power, water, gas, or heat supply Vodafone companies); AMES (territorial identification objects to records of Hungary buildings, their parts and facilities) 60 healthcare institutions in Hungary (50% MedWorkS – IT system supporting hospital procedures. It is a unified of Hungarian hospitals) Societe Generale, system, which, at the same time, is made up of modules. In its 15- UniCredit, OTP Bank, Raiffeisen year existence have any system failure shutdowns occurred at any of the locations. Asseco CE MCAP PLN m Public Administration – leading position on the slovak market in the 800 field of development tailor-made solutions for the central and local 600 government SAP Consultants – broad experience in implementing comprehensive 400 727 SAP solutions for companies and organizations irrespective of their 200 458 482 505 size and business field 0 2007 2008 2009 2010
24
Central Europe 2010 Product and Segment Breakdown
2010 %∆ 2009
Proprietary software and services 113 -3,2% 116
88%
6 89,6% 3 Third-party software and services 5% Hardware and infrastructure 8 -19,3% 10 7% 0% Other sales 0 -1,5% 0 Total Revenues* 127 -2,3% 130
2010 %∆ 2009 27% 41% Banking and finance 35 23,9% 28
Enterprises 52 -20,5% 65
Public Institutions 41 9,6% 37
32% Total Revenues* 127 -2,3% 130
* Excluding consolidation adjustments; Figures in € millions 25 Financial Results from Top to Bottom Central Europe
Total Revenues mln € EBIT mln € 150,0 15,0 127,9
38,0 BL 100,0 10,0
130,3 14,0 127,3 12,1 50,0 89,8 5,0 9,6
0,0 0,0 2009 2010 1Q-3Q 2011 2009 2010 1Q-3Q 2011
NPAT (100%) mln € NPAT (for Asseco) mln € 15,0 15,0
10,0 10,0
10,8 11,7 5,0 9,4 5,0
4,3 3,7 4,7 0,0 2009 2010 1Q-3Q 2011 0,0 2009 2010 1Q-3Q 2011
Figures in € millions
26 South Eastern Europe Region Introduction
In brief Main customers Asseco South Eastern Europe is one of the key players in the information Banking BU: technology market of South Eastern Europe. Currently ASEE is operating Unicredit Group, NLB Group, Raiffeisen in 12 Countries (in particular Turkey, Romania, Macedonia, Serbia, bank, OTP Banka, Intesa Sanpaolo Bank , Croatia) offering software and services mainly for Banks but aslo for other IS Bank, AK Bank, Volks Bank, Veneto sectors. Group, Komercijalna Banka, AIK bank, Agrobank Core competences and important facts System Integration BU: Experience Branch - Set of functional s/w modules designed for National Institute Of Statistics (Romania), managing and monitoring business activities of bank branches in the Bucharest City Hall Romania, Labour general areas of product sales, maintenance, monitoring, and service of Inspection Romania, Romanian Court Of contracted business, measuring performance and achieving sales goals, Accounts, Ministry Of Public Development maintaining contacts with clients. And Housing (Romania), T-Home ASEBA JIMBA - Mobile banking solution based on the concept of Java or Macedonia, T-Mobile Macedonia, One – iPhone application installed on the client’s mobile device. Delivers simple Slovenia Telecom Group, Ministry of way for interaction between the Bank and the clients using full featured Interior Macedonia, Ministry of Finance mobile banking platform prepared for retail environment. Macedonia, Ministry of Justice Kosovo ASEBA SxS - Single Point of Strong Authentication server specifically designed to meet the business and regulatory requirements of multi- channel organizations (financial institutions and other) enables simultaneous use of different types of end-user devices and cryptography standards. Asseco SEE MCAP PLN m Nestpay - Nestpay is a developed e-Commerce Secure Payment platform. 800 EST NestPay is designed to enable banks to offer card acquiring services 600 to their web merchants. 400 ITD IVN - ITD IVN® can manage thousands of calls without any agents 661 620 in a short time with lower-costs. It has a flexible infrastructure capable of 200 executing multiple and different voice automation processes 0 simultaneously. 2009 2010
27
South Eastern Europe 2010 Product and Segment Breakdown
2010 %∆ 2009
Proprietary software and services 40 18,0% 34 36%
28% Third-party software and services 31 16,0% 27
Hardware and infrastructure 40 4,0% 39 0% 36% Other sales 1 -18,9% 1
Total Revenues* 112 11,8% 101
30% 2010 %∆ 2009
Banking and finance 65 24,1% 53
Enterprises 34 -1,2% 34 58% 12% Public Institutions 14 -2,8% 14
Total Revenues* 112 11,8% 101
* Excluding consolidation adjustments; Figures in € millions 28 Financial Results from Top to Bottom South Eastern Europe
Total Revenues mln € EBIT mln € 150,0 15,0
103,2 100,0 10,0 25,1 BL
12,8 12,8 112,5 50,0 100,6 5,0 78,1 8,9
0,0 0,0 2009 2010 1Q-3Q 2011 2009 2010 1Q-3Q 2011
NPAT (100%) mln € NPAT (for Asseco) mln € 15,0 15,0
10,0 10,0
5,0 10,9 10,9 9,0 5,0 6,6 5,7 4,7 0,0 2009 2010 1Q-3Q 2011 0,0 2009 2010 1Q-3Q 2011
Figures in € millions
29 Western Europe Region Introduction
In brief Main customers Asseco is at the beginning stage of expanding business towards DACH DACH (German speaking countries), South Western Europe (France, Italy, Brose, Deutsche Post, R+V Spain, Portugal) and Northern Europe (Scandinavia) regions. Versicherungen, T-Systems, Lufthansa Systems, ZDF, ING DiBa, Infineon, Puma AG, TDS, Wincor, Swisscom, Cinemedia, Dillinger Hütte, Dlog, Doll Fahrzeugbau, Core competences and important facts Siemens Energy SMB, Schwede DACH - is the leading German Vendor for IT Workplace Management and Worthmann, Phoenix Solar ERP for single manufacturers, it is present through South Western Europe Asseco Germany AG: Vendor of ERP software and product-related services (Consulting, Customizing, Support, Training) Acciona, Air Europa, Amadeus, Banesto, Matrix42 AG: Vendor of Workplace Management Solution (for virtual & BBVA bank, Caja de Ahorros del physical desktops) (Client Lifecycle-, Cloud-, SaaS-, Virtualization, Mediterráneo, Ericsson, Hewlett Packard, and Service Management) Hispasat, Iberdrola, Iberia, Inditex, Indra, La Caixa, Mahou, Radio Televisión South Western Europe - is focused on solutions “Unique Business Española, Santander Bank, Servired – Solution” with high added value: Hardware + Services + Proprietary Sermepa, Telefónica, Toyota Software + e-Learning + Communications packs, proprietary software for transport sector (airline, ferry, bus and railway companies), Northern Europe payment cards solutions and Business Process Outsourcing AP Moller Maersk Group, Damco, JP Northern Europe – In the Nordics Asseco is represented by IT consulting Morgan Chase, Nets, Nordea, Novo and management consulting companies that assists the largest blue Nordisk, Novozymes, Nykredit, PenSam, chip companies in the finance-, life science -, transportation – and PFA, Procter & Gamble, Topdanmark, public sectors. In 2009 Asseco Denmark was voted best Danish IT Tryg, Vestas consulting company Lithuania - Document and content management solutions: enterprise- wide document tracking system, web content management sustem, workflow management systems. 30
Western Europe 2010 Product and Segment Breakdown
2010 %∆ 2009
Proprietary software and services 57 38,9% 41 61%
11% Third-party software and services 10 40,0% 7
Hardware and infrastructure 26 -6,4% 27 28% 0% Other sales 0 4792,5% 0
Total Revenues 94 23,2% 76
2010 %∆ 2009
Banking and finance 17 112,7% 8 18% 72% Enterprises 67 6,5% 63
Public Institutions 9 90,0% 5 10% Total Revenues 94 23,2% 76
* Excluding consolidation adjustments; Figures in € millions 31 Financial Results from Top to Bottom Western Europe
Total Revenues mln € EBIT mln € 150,0 9,0 122,2
100,0 34,9 BL 6,0
50,0 101,0 3,0 6,6 82,0 87,3 2,8 2,1 0,0 0,0 2009 2010 1Q-3Q 2011 2009 2010 1Q-3Q 2011
NPAT (100%) mln € NPAT (for Asseco) mln € 7,5 7,5
5,0 5,0
6,5 2,5 2,5 4,5 2,3 1,6 1,5 0,0 0,7 2009 2010 1Q-3Q 2011 0,0 2009 2010 1Q-3Q 2011
Figures in € millions
32 Israel Region Introduction
In brief Main customers
Formula Systems is a holding company managing Formula Systems Matrix IT Bank Leumi, the Treasury, Menora, Partner, global IT companies. Company was established in Matrix IT 50.0% 1985, listed on Tel-Aviv Stock Exchange and Nasdaq Mizrahi Tefahot Bank, Leumi Card, Motorola, Global Market (since 1991), Total employment at Sapiens Int. 42.3% Retalix, Texas Instruments, HP, SAP, Starhome, Juniper Networks, Lavie Formula Systems of 5,300 people. Magic Sft. 50.9% TimeTech, Verinet, Gteko, Comverse Sapiens International Core competences and important facts Philadelphia Insurance Company, JEVCO, Matrix IT is a leader in software development on Israeli market. Matrix Farm Bureau Texas, OneBeacon Insurance, offer covers all aspects of IT industry. Principal Financial Group, AXA Corporate Integration services and infrastructure – full range of services from IT Solutions, Liverpool Victoria infrastructure, hardware installation through application integration to Magic Software technical support; Access Data, ADD, Adecco, adidas, Allstate Outsourcing - from personnel support system to management of client’s Life Insurance Company, B&C International, selected business processes; also Bank of Cyprus UK, BNP Immobilier, CBS Outdoor, Deutsche Bank, DHL, Generali, Professional Services, Software, Trainings Guardian Insurance Company, Honda, ING Sapiens International is company specializing in IT solutions for the Commercial Financee, Merril Lynch Bank, insurance industry with the flagship products: Nespresso, Pharmatic, UPS Supply, RapidSureTM – IT solution for property insurance; Victorinox, Vodafone Sapiens InsightTM - multi-module package covering property insurance, property and casualty insurance management, billing, claims Formula Systems MCAP $ m management, reinsurance management, risk and closed-end insurance products management, life and pension management. 300 Magic Software is a global producer of development tools and 200 integration platform with flagship products: uniPaaS – a platform for development and launching software 100 176 188 136 103 iBOLT - a solution for the integration of variety of application 0 environments running in an organization. 2007 2008 2009 2010
33 Formula Systems Financials
Revenues EBIT Net Profit +26.9% 600 +17.1% 48 48,0
400 32 32,0 -3.7% $550 $47 $469 $37 200 16 16,0 $19 $18
0 0 0,0 2009 2010 2009 2010 2009 2010
2010 %∆ 2009
75% Israel $413 12.1% $368
13% United States $73 88.0% $39
12% Other Markets $64 2.2% $62
Total $550 17.1% $469
Figures in USD millions
34 Financial Results from Top to Bottom Israel
Total Revenues mln $ EBIT mln $ 750,0 60,0 626,0
142,7 BL 500,0 40,0
47,0 250,0 549,7 469,4 483,3 20,0 37,0 38,5
0,0 0,0 2009 2010 1Q-3Q 2011 2009 2010 1Q-3Q 2011
NPAT (100%) mln $ NPAT (for Asseco) mln $ 60,0 21,0
One-off One-off 40,0 25,8 7,8 on SAPIENS on SAPIENS 14,0
20,0 33,0 35,0 7,0 27,7 12,0
0,0 1,4 2009 2010 1Q-3Q 2011 0,0 0,0 2009 2010 1Q-3Q 2011
Figures in $ millions
35 Asseco Group & Formula Systems cooperation status
MAGIC SOFTWARE
. Asseco Poland – sole distributor of Magic Software Solutions (iBolt & uniPaaS) in Poland
. Asseco Poland – uniPaaS training and licenses sold to BPH Bank (in cooperation with Magic Germany)
. Asseco Germany, Asseco DK, Asseco SEE – sales/technical trainings completed – looking for first sales cases
. Matrix42 – Possible synergy in Mobile Device Management area (analysis)
. Asseco Business Solutions – investigating possible synergies in ERP integration and in mobile domain SAPIENS
. Asseco Group – IDIT and FIS merge -> Flagship Asseco insurance solutions
. Asseco Poland – IDIT solution for PZU (offer)
. Asseco SEE Croatia – ASEBA Live/CPM in Sapien’s standard offer
. Asseco DK – looking for joint ventures (Solvency II, IDIT, FIS)
. Asseco Group – Sapiens DECISION as the unique Business Rule Management Solution for Asseco (technical analysis) MATRIX IT
. Combidata – E-learning for Israeli customers (evaluating localization/translation into Hebrew)
. Tafnit ERP – ID Ready process and cooperation with Asseco Spain
. Asseco DK – SharePoint Developer from Matrix engaged in ELN 2.0 solution re-development process (completed)
. Asseco Denmark - Datawarehouse architects from Matrix engaged in the Solvency II project in PenSam (in-process) 36 Agenda
. General Information
. Financial Highlights
. Business Outlook
. Appendix
. Subsidiary Companies
. Selected References
. Other Financial Information
37 Selected References in Financial Sector
38 Selected References in General Business Sector
39 Agenda
. General Information
. Financial Highlights
. Business Outlook
. Appendix
. Subsidiary Companies
. Selected References
. Other Financial Information
40 Consolidated Financial Highlights for 1Q-3Q 2011
Consolidated sales Proprietary software 3 600 3 600 +60.8%
2 400 2 400 +79.8% 3 523
1 200 2 192 1 200 2 571 1 430
0 0 1Q-3Q 2010 1Q-3Q 2011 1Q-3Q 2010 1Q-3Q 2011
EBITDA EBIT Net profit1) 720 540 540 +25.5% +22.3% 480 360 360 -7.8% -3.6%
632 504 413 240 503 180 180 315 278 291 268
0 0 0 1Q-3Q 2010 1Q-3Q 2011 1Q-3Q 2010 1Q-3Q 2011 1Q-3Q 2010 1Q-3Q 2011 Figures in millions of PLN; 1) Net profit and net profit adjusted for non-recurring events (light blue bars) in Q1-Q3 2010: reversal of write-downs on financial assets PLN 17.0 m; write-down on Gladstone PLN (9.4) m; write-down on Asseco Spain PLN (11.7) m; reversal of deferred income tax provision PLN 41.5 m; disposal of Uniquare company PLN (3.2) m; liquidation of Ready Sp. z o.o. PLN (0.2) m; valuation of G. Bernstein’s stock options PLN (2.1) m; disposal of a building by Combidata PLN 5.1 m; in 1Q-3Q 2011: loss of control over Sapiens PLN 22.3 m. 41 Consolidated sales revenues, by products and sectors
1Q-3Q 2011 %∆ 1Q-3Q 2010
Proprietary software and services 2 571 79.8% 1 430
Third-party software and services 458 29.2% 355
Hardware and infrastructure 460 15.3% 399
Other sales 34 319.8% 8 Sales revenues 3 523 60.8% 2 192
1Q-3Q 2011 %∆ 1Q-3Q 2010
Banking and finance 1 159 54.3% 751
Enterprises 1 525 113.5% 714
Public institutions 839 15.5% 726
Sales revenues 3 523 60.8% 2 192
Figures in millions of PLN
42 Financial liquidity
30 September 2011 31 December 2010
Asseco Poland Asseco Group Asseco Poland Asseco Group
Short- and long-term debt -123.9 -421.9 -92.0 -335.2
Cash and cash equivalents 161.9 683.8 166.2 835.0
Cash – debt 38.0 261.9 74.2 499.8
Trade accounts receivable 166.0 775.1 172.5 1 016.3
Trade accounts payable -44.7 -248.9 -51.2 -457.0
Inventories 24.1 76.4 4.7 66.7
Operating balance 183.4 864.5 200.2 1 125.8
PLN m PLN m PLN m PLN m Formula Systems 211.1 Formula Systems 327.6 Dividend income 60 Dividends paid out -224 ACP 161.9 ACP 166.2 Dividend paid out -140 Acquisitions -110 ASEE 83.7 ASEE 100.1 CAPEX + R&D -67 CAPEX + R&D -159 ACE 125.6 ACE 89.5 Wilanów investment -46 Wilanów investment -46 ABS 42.7 ABS 59.4 Acquisition of shares -17 other 58.8 other 92.2
43 Historical Performance of Asseco
3,237.7 3 600 . 1991 – establishing of COMP Rzeszów. Revenues 3,050.3 . 2004 – IPO on the Warsaw Stock Exchange.
2,786.6 . 2004 – the first foreign acquisition (Slovak 2 400 company – AssetSoft). . 2007 – the Company merges with the WSE- listed Softbank. 1,282.4 1 200 . 2007 – commencement of an intensive expansion into the markets of Germany and 248.1 South Eastern Europe. 147.1 110.3 . 2008 – take-over of Prokom Software. 0 The subsequent merger brings significant 2004 2005 2006 2007 2008 2009 2010 cost reductions and improved efficiency. 600 569.0 . 2009 – investments in companies of the 525.5 494.3 West and North European markets. EBIT . 2010 – further reinforcement of the Group's 415.1 400 market position in West Europe. Net 373.4 321.6 Consolidation of companies operating in the Profit same geographical regions and streamlining 236.6 of the Group's organizational structure. 200 . 4th quarter of 2010 – Asseco Group 160.9 becomes a global IT player owing to 47.3 the acquisition of Formula Systems, 30.2 19.5 the largest IT company in Israel. 14.4 23.9 52.9 0 2004 2005 2006 2007 2008 2009 2010 Figures in PLN millions
44 Successful Mergers in Poland
General Effects of mergers of Total Selling administr. Asseco Poland, in mPLN expenses expenses • General administrative expenses
expenses in 2010 were
Asseco 2006 23.6 5.3 18.3 reduced to 39% of such Softbank 2006 37.4 6.6 30.7 expenses incurred by
Prokom 2007 195.8 47.0 148.8 individual companies Individual Individual companies companies before the merger before mergers before ABG 2009 54.9 13.0 41.9 Expenses before mergers 311.7 72.0 239.7 • Selling expenses in 2010
accounted for 73% of Expenses of Asseco 145.3 52.3 93.0 after mergers (2010) such expenses incurred by
individual companies Synergy effects 166.4 19.7 146.7
before the merger Synergy effects (%) -53% -27% -61% • Total administrative and selling expenses in 2010 were reduced to 47% of such expenses incurred by companies operating separately
Figures in PLN millions
45 Financial Results of Subsidiaries
For 12 months ended Sales Sales Operating Operating Net profit Net profit 31 December 2010 revenues revenues profit profit for the year for the year in thousands of PLN 2010 2009 2010 2009 2010 2009
Asseco Central Europe Group 519,033 573,121 57,998 61,662 38,987 47,292 Asseco South Eastern Europe 503,153 436,654 55,113 55,745 47,659 38,276 Group
Asseco DACH Group 160,787 144,747 13,886 (361) 11,855 3,793 Asseco South Western Europe 172,187 156,568 5,397 5,318 8,996 2,989 Group
Asseco Northern Europe 81,539 98,651 10,252 12,008 8,044 9,053
Asseco Business Solutions SA 168,587 156,196 35,778 26,758 30,092 22,427
Combidata Polska Sp. z o.o. 84,476 48,050 21,412 8,153 17,011 6,161
Asseco Systems SA 311,024 222,488 15,419 21,542 6,971 24,696
ZUI Novum Sp. z o.o 23,404 20,850 3,936 3,437 3,238 2,776
ZUI OTAGO Sp. z o.o 11,666 9,544 3,118 4,231 2,585 3,582
ADH-Soft Sp. z o.o. 7,571 6,428 1,604 1,296 1,309 915
Other 49,726 40,038 4,010 515 2,025 392
Total 2,093,153 1,913,335 227,923 200,304 178,772 162,352
Figures in thousands of PLN, pro-forma figures.
46 Consolidated Profit and Loss Account
in PLN millions Q1-Q3 2011 Q1-Q3 2010 PLN m Sales revenues 3 523.4 2 191.8 60.8% ACP 967.9 ABS 112.4 Formula 1 353.8 Gross profit on sales 1 029.5 758.3 35.8% ACE 363.1 ASEE 315.6 Selling expenses (253.9) (156.1) 62.6% Other 444.9 Adjustment -34.2
General administrative expenses (277.9) (197.5) 40.7% PLN m ACP 252.6 Other operating activities, net 6.7 7.8 -14.1% ABS 24.6 Formula 113.2 ACE 57.6 Operating profit 504.4 412.5 22.3% ASEE 36.1 Other 21.0 Financial income and expenses, net 27.6 (13.0) - Adjustment -0.9
PLN m Pre-tax profit 532.0 399.5 33.2% Sapiens – loss of 44.9 control Share in profits of associated companies 2.6 1.3 94.9% Interest -5.0 Currency transactions -10.1 Other -2.2 Net profit for shareholders of Asseco Poland 290.5 315.1 -7.8% PLN m ACP* 192.4 ABS 9.8 Formula 56.6 ACE 18.9 ASEE 18.8 Other 11.6 Adjustment* -17.5
*adjusted for dividends
47 Consolidated Balance Sheet
in PLN millions 30 Sept. 2011 31 Dec. 2010
Non-current assets 6 431.4 5 972.5 8%
of which: 2 797.9 2 813.2 -1% Intangible assets
Goodwill arising from consolidation 2 584.4 2 397.3 8%
Current assets 2 309.1 2 455.9 -6%
of which 775.1 1 016.3 -24% Trade accounts receivable
Cash and cash equivalents 683.8 835.0 -18%
Total assets 8 745.2 8 432.8 4%
in PLN millions 30 Sept. 2011 31 Dec. 2010
Shareholders' equity 6 938.7 6 371.0 9%
Non-current liabilities 671.8 628.4 7%
of which 269.9 227.1 19% Bank loans and debt securities
Long-term financial liabilities 103.2 115.2 -10%
Current liabilities 1 134.7 1 433.4 -21%
of which: 152.0 108.1 41% Bank loans and debt securities
Trade accounts payable 248.9 457.0 -46%
Financial liabilities 38.9 52.4 -26%
Total equity and liabilities 8 745.2 8 432.8 4%
48 Thank you for your attention
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