Becoming a leading Software House in CEE
Paris, June 28-29, 2007 AGENDA Basic Information
Structure of the Asseco Group
Financial Results
Expansion in Central and Eastern Europe
Appendix:
Competences & Customer Landscape
Major ongoing projects
IT Market in Poland & CEE Asseco Poland after the merger – Basic Info
ASSECO STOCK FIGURES (June 26, 2007) PLN m EUR m Leader in IT solutions to the banking sector in Poland: the largest revenues from banks Market capitalization 4 040 1 054 and the largest sales of proprietary banking Free float 1 762 464 software (50% of Polish banks use Asseco software systems) Avg daily turnover 4.9 1.3 Asseco Slovakia – second largest Slovakian Shares outstanding 46 445 804 provider of IT solutions WSE Ticker ACP Experience in implementation of large and sophisticated IT projects (e.g. the largest Reuters Ticker SOBK.WA projects in Poland in the banking sector) Stock is covered by 10 equity analysts Long list of implementations in large Shareholder structure reputable banks & public institutions Projects in several countries in Europe Free Float Prokom Software 44% 25% Solid financial position (stable cash flow from long-term contracts), PLN 230m net cash position at the end of Q1’07. A.GÓRAL 17%
Pioneer Inv. Fund ING Inv. Fund 5% 8% Planned structure of the Asseco Group in 2007
ASSECO POLAND
51% SLOVANET ASSECO BUSINESS 67% ASSECO 51% SOLUTIONS 42% DATALOCK SLOVAKIA 55% LCS 55% 25% ASSECO 100% BERIT SYSTEMS 75% ASSECO CZECH REPUBLIC 51% NOVUM
65% 70% FIBa Software ASSECO ROMANIA 70% Net Consulting 55% ADH SOFT
65% ASSECO ADRIA ASSECO’S COMPANIES - POLAND
ASSECO POLAND ASSECO BUSINESS SOLUTIONS
SOFTWARE FOR BANKING & FINANCE SECTOR ERP systems, outsourcing, e-learning
No 1 in IT solutions to the banking sector No 2 ERP company in Poland
Employment: 1 140 Employment: 350
Consensus for 2007: revenues PLN 500m Target for 2007: revenues PLN 100m
(standalone) net profit PLN 80m net profit PLN 13m
IPO on WSE: Listed since 1998 IPO on WSE: September 2007
ASSECO SYSTEMS ADH SOFT
IT services, networks, hardware, BMS Software for leasing companies
Top ranked in integration & IT services in Poland 70% of leasing companies use ADH software
Employment: 350 Employment: 27
Target for 2007: revenues PLN 200m Target for 2007: revenues PLN 5m
net profit PLN 10m net profit PLN 0,8m
IPO on WSE: Q1 2008 3000 license sold, 90% of clients-international corp. ASSECO’S COMPANIES – CEE
ASSECO SLOVAKIA ASSECO CZECH REPUBLIC
Software for banking, finance & health sectors SOFTWARE & INTEGRATION
No 2 Slovakian provider of IT solutions Top ranked Czech IT company
Employment: 700 Employment: 680
Consensus for 2007: revenues PLN 300 m Target for 2007: revenues PLN 180 - 200m
(consolidated) net profit PLN 24 m net profit PLN 10 - 15m
IPO on WSE: Listed since 2006 IPO on WSE: Q4 2007
ASSECO ROMANIA ASSECO ADRIA
FIBa Software: software for banking sector Plan for Q3 2007: acquisition of 2-3 IT comp.
Net Consulting: integration & IT services Core business: software for banking sector
Employment: 120-200 Employment: 300 - 400
Target for 2007: revenues PLN 100 – 400 m Target for 2007: revenues PLN 100 - 130m net profit PLN 12 – 25 m net profit PLN 18 - 22m
IPO on WSE: Q2 2008 IPO on WSE: Q3 2008 Asseco Capital Group in Figures
REVENUES NET PROFIT
Asseco Poland (cons.) Asseco Poland (cons.)
Former Asseco Poland (cons.) Former Asseco Poland (cons.)
0% + 2 1 700 % GR 80 CA 1 462 R + 150 218 335 1 228 CAG 135 108 34 112 101 24 482 533 498 345 13 32 43
PLNm PLNm 10 2 10 2003 2004 2005 2006 2007C 2008C 2009C 2003 2004 2005 2006 2007C 2008C 2009C Source: 2003-2006 – former consolidated Softbank and Asseco results adjusted by one-offs; C – Consensus of the market forecast from 10 analysts SALES STRUCTURE BY SECTORS SALES STRUCTURE BY PRODUCTS Q1 2007 Q1 2007 Public TelCo 8% Administration Outsourcing 19% Proprietary Software Banks & Financial 15% & Services Institutions 43% 53%
Enterprises Integration & 28% Hardware 19% 15% Third Party Software & Services Detailed Figures & Ratios
PLN m 2003 2004 2005 2006 Q1’07 2007C Revenues 446 590 751 833 210 1 228 EBITDA 43 52 96 116 44 183 EBIT 17 39 82 92 37 155 Adj Net Profit 12 14 55 78 24 112 EBITDA margin 10% 9% 13% 14% 21% 15% Net margin 3% 2% 7% 9% 12% 9% EPS x 0.57 0.66 2.63 3.10 - 2.42 BVPS x 6.41 9.13 17.44 18.38 33.42 35.57 CAPEX 13 11 22 22 5 40 Acquisitions 33 39 67 65 6 200 Net Cash 71 11 89 173 229 30 CFO 12 -23 68 71 45 120 FCF 16 -28 211 219 - 280 Depreciation 26 14 14 24 7 30 Debt / (debt + equity) 4% 29% 16% 8% 2% 8% EBITDA / debt 605% 60% 122% 265% - 122%
Source: 2003 – 2006 pro-forma former Softbank and former Asseco consolidated results; 2007C – market consensus Expansion in Central and Eastern Europe ACQUISITIONS COMPLETED PLANNED ACQUISITIONS 2004 Asseco Slovakia 2005 Incenti* Czech Koma** Serbia Gladstone** Romania 2006 WA-PRO* Softlab* Lithuania Slovanet Croatia 2007 PVT-Asseco Czech R. Poland Datalock LCS International Austria FIBa Software Net Consulting SAFO*
ADH Soft Foreign companies will bring about 40% of BERIT Asseco Capital Group revenues in 2007
* Companies merged becoming Asseco Business Solutions; ** To be merged with Asseco Systems EXECUTIVE SUMMARY The largest Polish IT company present in foreign markets, selling proprietary LITHUANIA software for banking & finance sector Q3 2007
Outstanding Q1 financial results ASSECO POLAND Comprehensive offer for: banks, public ASSECO CZECH administration, enterprises and utilities REPUBLIC ASSECO SLOVAKIA Asseco Group has about 3500 employees ASSECO Consolidation of companies within the ROMANIA ASSECO Capital Group ADRIA (Q3 2007) In 2007 purchase of stakes in companies from Poland, Czech Rep., Slovakia, Romania Planned acquisitions in Austria, Romania, Serbia, Lithuania, Slovakia and the Czech Republic APPENDIX
Competences & Customer Landscape
Major ongoing projects
IT Market in Poland & CEE Major competences
Proprietary software Outsourcing services Software for banks Internet banking for retail customers Core systems Internet banking for corpo customers Analytical systems Telephone banking Internet banking SMS based banking Clearings/settlements Outsourcing of the core system Add-ons Software for capital markets institutions Integration services Software for the public sector Software for enterprises Security audit Security of the services Enterprise Resource Planning (ERP) software for large, medium and small Security of the network systems companies Intelligent building Analytical systems Data processing GIS/NIS Services and tech-support IT structure management Third party software Databases Security software CRM Customer Landscape - POLAND
Universal and retail banks Mortgage banks PKO BP BGŻ Bank (Rabobank subsidiary) BRE Mortgage Bank Deutsche Bank PBC Śląski Mortgage Bank Euro Bank (Societe Generale) BPH Mortgage Bank Getin Bank Nykredit Realkredit A/S Noble Bank Dominet Bank Public Administration Bank Pocztowy (Post Bank) Ministry of Internal Affairs Bank Gospodarstwa Krajowego Agency for Restructuring and Modernization of Bank Ochrony Środowiska Agriculture National Clearing House Co-operative banks Ministry of Finance Bank Polskiej Spółdzielczości Ministry of Education Gospodarczy Bank Wielkopolski Social Welfare Institution Mazowiecki Bank Regionalny 453 cooperative banks (75% of the market) General Business Automotive banks Power Supplier in Rzeszów Volkswagen Bank Polska McDonalds Poland PLL LOT RCI Bank Polska Poczta Polska Toyota Bank Polska …and 60 000 more Daimler-Chrysler Bank Polska Customer Landscape - CEE
Slovakia Romania Slovenská sporiteľňa (Erste Bank Group) HVB Banca pentru Locuinte (UniCredit Group) GE Money (GE Money Group) Porsche Bank Romania Poštová banka (Post Bank Bratislava) Sanpaolo IMI Romania Banka Romaneasca Exportno-importná banka SR (Export-Import Bank of the Slovak Republic) Banca Italo-Romena Citibank Romania Dôvera (Health Insurance Company) Millenium BCP Vseobecna zdravotna poist’ovna (biggest LBS München public health insurance company) Union (Eureko Group) Ministry of Health of Slovak Republic Allianz -Slovenská poisťovňa (Allianz Group) Czech Republic Tax Authority Office of the Slovak Republic Česká spořitelna (Erste Bank Group) UniCredit Bank (Unicredit Group) HYPO stavební spořitelna (UniCredit Group) VÚB bank (Intesa Group) Modra pyramida stav. sporitelna (Societe Generale Slovak Telekom Group) Hypo Stavebni sporitelna (Unicredit Group) CCS (Czech Company for Payment Cards) DDP Stabilita GE Capital Bank (GE Money Group) HYPO Stavební spořitelna (Czech Building Society) Slovak Tourist Board Živnostenská banka Prague The self-governing region of Tarnava Pojistovna VZP Stredoslovenska energetika (Le Groupe EDF) Major Ongoing Projects
Bank PKO BP – implementation of Integrated Banking System (ZSI) in the largest retail bank in Poland Gospodarczy Bank Wielkopolski SA (GBW) – implementation of the main IT system for the Co-operative Banking Group (SGB). BOŚ – centralization of core-banking system Deutsche Bank PBC SA – agreement for the supply of the license and implementation of the IT system for handling of consumer credits PKO BP Bank – Central Support IT System Pekao SA Bank – extension of work related to the Cash Circulation Monitoring System and implementation of the document management system Documentum Toyota Bank – supply of the license and implementation of comprehensive IT system BGŻ Bank – development of the core-banking system Ministry of Internal Affairs - IT system of National Central Register of Vehicles and Drivers (CEPiK) IT Market in CEE – underdeveloped vs EU15
IT Market in EUR m
Poland 3131 FASTEST GROWING IN 2007 Czech Rep. 2081
Hungary 1900 Poland +10.2%
Slovakia 626 Slovakia +8.6% Romania 613 Czech Rep. +6.6% Croatia 521
Slovenia 465 Source: EITO 2006
Serbia 311
Bulgaria 276
B&H 78 IT Expenditures in CEE countries
Macedonia 50 PL Cz. Hun. Slk. Rom. Cro. Slo. Ser. Bul B&H Mac. EU 15 Value in EUR m 3 131 2081 1 900 626 613 521 465 311 276 78 50 Per capita in EUR 100 238 189 137 35 130 228 37 41 28 31 719 As % of GDB 1,9% 2,7% 2,4% 2,2% 1,5% 1,4% 2,2% 1,5% 1,8% 1,6% 1,3% 3,2%
Source: EITO 2006 IT Market in Selected Countries
POLISH IT MARKET SLOVAK IT MARKET CZECH IT MARKET 6000 1200 3500
5000 1000 3000
2500 4000 2 984 800 1 332 2 789 505 1 249 461 2000 1 150 2 493 3000 600 412 1 086 2 042 382 1500 934 617 1 706 312 556 2000 916 400 158 494 807 142 436 708 128 1000 382 621 114 1000 547 200 103 1 560 300 500 965 1 061 1 182 1 357 243 274 722 801 883 802 1 032 175 208 0 0 0 2003 2004 2005 2006E 2007F 2003 2004 2005 2006E 2007F 2003 2004 2005 2006E 2007F
Hardware Software IT Services Hardware Software IT Services Hardware Software IT Services
MAJOR TRENDS: Source: EITO 2006 Attractive growth - +9,6% in 2007 in CEE (based on EITO) fuelled by EU subsidies, influencing public administration and SMEs, as well as, structural changes in the industry. Proprietary software and orientation towards the most attractive customer segments. Higher-value added products are the key to avoid the fierce price competition and margin erosion. Foreign sales offer the possibility to gain further economies of scale. Niche software, after translating, can generate strong margins. Adjustment to EU rules®ulations forces investments in IT (e.g. E-Government Systems, Risk Mangement systems in banks) Asseco Poland on the Polish IT Market
428 REVENUES NET PROFIT (Q1 2007) (Q1 2007)
266 24 210 Asseco’s results
consolidated by Prokom 11 98 10 87 83 38 4 -1 -1
PROKOM SYGNITY ASSECO COMARCH ABG SPIN TECHMEX ASSECO PROKOM SYGNITY ASSECO COMARCH ABG SPIN TECHMEX ASSECO POLAND SLOVAKIA POLAND SLOVAKIA
NET MARGIN % -15 MARKET CAP (Q1 2007) (June 26, 2007) 4 040 12% 12% 10% 2 125 1 671
2% 791 776 636 351 -1% -2%
PROKOM SYGNITY ASSECO COMARCH ABG SPIN TECHMEX ASSECO PROKOM SYGNITY ASSECO COMARCH ABG SPIN TECHMEX ASSECO POLAND SLOVAKIA POLAND SLOVAKIA -6% Thank you for your attention.
Contact for investors: Katarzyna Perzak Tel: +48 (22) 87 86 333 Kom: +48 660 433 080 E-mail: [email protected]