Asseco Group Results · 2010 2014 Sales revenues (USD m) 6.7 17.0 2010 2014 Operating profit (USD...

solutions for demanding business

Asseco Group ResultsH1 2015

2Warsaw, 28 August 2015


3

• More than PLN 3.3 billion in sales revenues for H1 2015

- an increase by 13%

• Dynamic expansion in foreign markets

• Streamlining of the Group’s organizational structure

and operations

Asseco Group in H1 2015


4

Consolidated financial highlights for H1 2015

PLN 3,305 mSales revenues

+13%

PLN 334 mEBIT

+13%

PLN 138 mNet profit

-25%

PLN 2,722 mProprietary software and services

+16%

PLN 464 mEBITDA

+11%

PLN 6,069 mOrder backlog for 2015

+16%


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Asseco Group - Summary after H1 2015

Group sales revenues PLN 3,305 million

Polish market

PLN 763 m -6%

Israeli market

PLN 1,771 m +29%

Central European market

PLN 236 m +6%

Eastern European market

PLN 42 m

South Eastern European market

PLN 220 m 0%

Western European market

PLN 274 m +16%

5

-7%

Polish marketChanges in the organizational structure and more efficient use of the development potential of Asseco Group. Execution of existing contracts, lower sales in the public sector and infrastructure.

Israeli marketDynamic expansion of Sapiens and Matrix IT primarily in the U.S. market.

Central European market Positive effects of business diversification. Growing sales in the ERP segment.

South Eastern European marketContinued development in the sectors of payment and banking solutions. Higher revenues from proprietary software solutions.

Western European marketEconomic recovery contributes to higher sales in Spain. Stable situation in Germany and Denmark.

Eastern European marketGaining new significant contracts in the banking sector, implementation of existing projects.19% increase in rubles.


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Revenue structure – higher share of foreign operations

77%

23%Sales revenuesPLN 3,305 m

+13%1,901 2,101

2,542

809812

763

H1 2013 H1 2014 H1 2015

Revenues from foreign operations* Revenues from Poland*

* Sales to external customers

+ 5 pp

y/y


7

Revenue structure – higher share of own products and services

2,222 2,3442,722

488 569

583

H1 2013 H1 2014 H1 2015

Proprietary software and services Third-party products and services*

82%18%

Sales revenuesPLN 3,305 m

+13%

* This category also includes other products and services


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Revenue structure – strong diversification into sectors

44%

35%

21% Sales revenuesPLN 3,305 m

+13%

+ 4 p.p.

r/r

1,045 1,1621,452

982 1,021

1,156684

731

697

H1 2013 H1 2014 H1 2015

General Business Banking and Finance Public Institutions


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Contracts signed in H1 2015

Banking and Finance1,812

General Business2,159

Public Institutions

925

Number of contracts

signedin H1 2015 1

4,896

1) Asseco Group, excluding retail products. The figures include contracts, orders and annexes.


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General Business sector

Strong sales revenues of Israeli companies (Magic Software, Matrix IT)

Implementation of projects for key customers in Poland (Orange, Polkomtel, Tauron)

New orders in the area of mobile devices and software (Asseco Spain)

Development of the competence center for ERP systems in Central Europe (Asseco Solutions)

986 1,161 1,045 1,1621,452

H1 2011 H1 2012 H1 2013 H1 2014 H1 2015

Sales revenues (in PLN millions)

H1 2015 H1 2014 Change

Polish market 253.0 226.4 +12%

Israeli market 868.0 646.1 +34%

Central European market 106.8 100.3 +7%


37.9 35.9 +6%

Western European market 187.0 153.8 +22%

Eastern European market 0.9 0.7 +26%

Asseco Group 1,452.3 1,161.7 +25%


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Banking and Finance sector

Growing sales in the insurance sector (Sapiens)

Improving results of the payment solutions segment in the region of South Eastern Europe

Execution of contracts and gaining new clients in the Russian market (R-Style)

Launching new projects and strengthening the leading position in the banking sector in Poland

783 884 982 1,021 1,156

H1 2011 H1 2012 H1 2013 H1 2014 H1 2015


H1 2015 H1 2014 Change

Polish market 210.1 215.3 -2%


Central European market 43.7 36.9 +18%


167.3 151.6 +10%

Western European market 48.6 50.5 -4%

Eastern European market 40.2 44.4 -10%

Asseco Group 1,156.3 1,020.5 +13%


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Public Institutions sector

Reinforcing our position in the sector of IT solutions for agriculture (KRUS, ARMA)

New implementations of Asseco Medical Management Solutions – the AMMS system is already

used by 170 hospitals

Gaining new contracts in Slovakia, weaker sales in the Czech Republic

Possible projects and tenders under the new EU financial perspective for the years 2014 – 2020

572 622 684 731 697

H1 2011 H1 2012 H1 2013 H1 2014 H1 2015


H1 2015 H1 2014 Change

Polish market 303.5 372.6 -19%


Central European market 85.6 85.7 0%


15.2 32.8 -54%

Western European market 38.5 33.0 +17%

Eastern European market 1.1 0.0 -

Asseco Group 696.5 730.8 -5%


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In comparison to the order backlog presented in August 2014

Consolidated order backlog for 2015

5,228

6,069

2014 2015

Sales revenues

+16%

4,375 5,115

2014 2015

Proprietary software and services

+17%

Figures in PLN millions; Value of the order backlog for 2015 as at 21 August 2015 Value of the order backlog for 2014 as at 22 August 2014


Streamlining of the Group’s organizational structure and operations:

Insseco and Sapiens

Asseco Western Europe

Asseco Data Systems

14


Sale of Insseco – upgrading Sapiens’ competence in the insurance sector

15


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Organizational structure of Formula Systems

50.0% 50.0% 45.6%

IT market leader in Israel Second largest provider of software for the insurance industry

in the world

Global producer of application development platforms

* Excluding Insync Staffing (90%); market capitalization as at 26 August 2015

USD 310 million

USD 351 million

2010

2015

Mar

ket

cap

USD 51 million

USD 531 million

USD 90 million

USD 261 million

Formula Systems*

Matrix IT Sapiens Magic Software


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Sapiens – dynamic growth in the insurance industry

52.2

157.5

2010 2014

Sales revenues (USD m)

6.7

17.0

2010 2014

Operating profit (USD m)

16.2

80.5

2010 2014

Cash and financial assets (USD m)

50.7

531.0*

2010 2015*

Market cap (USD m)

361 employees

2010 2015

1288 employees

70+ customers

2010 2015

150+ customersFigures in compliance with US GAAP; *as at 26 August 2015


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Sapiens and Insseco

Products and Clients

Geographical expansion

Implementation support

Direct access to the know-how of the world’s second largest provider of software and IT services for the insurance industry

Sharing of Sapiens’ knowledge and experience gained with its global key customers, including PartnerRe, Euler Hermes, MetLife, Aegon

Ability to offer the highest quality solutions of Sapiens to other customers in Poland and the CEE region

Strengthening of the market position in Europe

Involvement of experienced Polish experts in the implementation of projects across Europe

Support in software development and testing by IT specialists working in Poland



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Organizational structure of Asseco in Western Europe

Asseco Poland

85% 55% 70% 81.34%81.34%45%100%

Asseco South Western Europe

Asseco DACH

Asseco Danmark

Peak Consulting Group

CodeConnexion (Private) Limited

SintagmaAsseco Lietuva

Necomplus

Asseco Spain

65%

70.32%

Matrix 42

97.2%

* Asseco DACH holds 14.99% of its own shares in treasury, Asseco Poland is consolidating Asseco DACH at the level of 99.995%


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Organizational structure of Asseco in Western Europe

Asseco Poland

65% 97.2% 55% 81.34%45%70%70.32%

Asseco Spain

Necomplus Matrix42Asseco

Danmark

Peak Consulting

Group

CodeConnexion (Private)

Limited Sintagma

Asseco Lietuva

81.34%


100%


Sales revenues (PLN m)*

498.6EBIT (PLN m)*

36.8Net profit*

22.7Average workforce*

930* Figures for 2014


Asseco Data Systems

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Organizational structure of Asseco in Poland

Asseco Poland

Asseco Systems

ADH Soft

100% 100%100% 46.47% 49% 100%51%60%100%

Combidata ZUI OtagoAsseco

Business Solutions

Postdata SKG ZUI Novum Sigilogic

CK Zeto Łódź

PI Zeto Bydgoszcz

UnizetoTechnologies

100%

100%

100%


Goal

Asseco Data Systems S.A. (combining 6 Polish subsidiaries of Asseco Group) to commence its operating activities from 4 January 2016

→ ADH SOFT

→ CK ZETO Łódź

→ COMBIDATA

→ ZUI OTAGO

→ PI ZETO Bydgoszcz

→ UNIZETO Technologies

Asseco Data Systems S.A.

It will be the company resulting from the transformation of Asseco Systems S.A.

It will be the legal successor of all the above-mentioned entities

It will be registered in Gdynia (but its offices will remain at their existing locations)24


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Strong expertise and many years of experience in the IT sector

Sales revenues (PLN m)

236.1EBIT (PLN m)

30.8Average workforce

884Locations

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Pro forma plans for 2015

Proprietary applications – standard and customer-tailored software; programming services

Applications and data processing for ZUS and KRUS

ICT Infrastructure solutions

Data Processing Centers

Trainings and platforms for human capital management and e-learning

Electronic signature and security certificates

Mass print-outs and e-mailing


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Asseco Data Systems is a provider of IT products, services and solutions based on proprietary and third-party software, services and ICT infrastructure.

Operating in 10 locations, ADS serves local clients, including enterprises as well as local government organizations and institutions

Asseco Data Systems – brief company profile 1/2

Our offering supplements sectoral solutions provided by Asseco Poland to large companies, corporations and central public institutions

A

A

A

AA

AA

A

A

• It produces standard software packages for local administration, leasing companies as well as dedicated IT systems for customers on the national level

A


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ADS has unique competence in the area of e-document management and is the largest electronic signature center operating in Poland; moreover, it provides mass print-out and e-mailing services

It is a leading provider of training services and web-based platforms for human capital management and e-learning

It provides ICT infrastructure solutions and data processing services

It offers outstanding IT sector expertise along with decades of hands-on experience gathered by nearly a thousand of IT experts and specialists

ADS is a reliable partner in the creation, development and maintenance of information systems and provision of specialized services

Asseco Data Systems – brief company profile 2/2

We combine the flexibility of a local firm with the potential of a large organization


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Organizational structure

ANDRZEJ DOPIERAŁA

Trainings

Human Capital Management

Social InsuranceLocal

AdministrationData Centers

Software and Programming

Services

Mass E-Mailing

Leasing Companies

Electronic Signature

Infrastructure

Marketing

Legal Department

Accounting, Finance,

Controlling

HR

IT

EU Projects

Administration

Quality Management,

Auditing ...

Stanisław Jentczak

Paweł Barchwic

Robert Kobylański

Jarosław Jastrzębski

Daniel Lala

Andrzej Dopierała

Karol Cieślak


Financial information

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Solid growth in revenues and operating profit

Figures in PLN millions

Non-IFRS figures including adjustments for: i) income recognized in purchase price allocation, ii) amortization charges on intangible assets recognized in purchase price allocation as well as iii) for the costs of share-based payment transactions with employees

H1 2015 H1 2014 Δ Q2 2015 Q2 2014 Δ

Sales revenues 3,305.1 2,913.0 +13% 1,713.1 1,499.1 +14%

Proprietary software and services 2,722.3 2,343.9 +16% 1,400.4 1,201.4 +17%

Gross profit (loss) on sales 803.7 708.2 +13% 414.8 357.4 +16%

Gross profit margin 24.3% 24.3% 0 pp 24.2% 23.8% +0.4 pp

Selling costs -213.4 -180.6 +18% -112.9 -94.7 +19%

General and administrative expenses -247.4 -229.7 +8% -127.0 -110.2 +15%

Other operating activities -9.3 -2.6 - -5.8 -2.0 -

Operating profit 333.6 295.3 +13% 169.1 150.5 +12%

Operating profit margin 10.1% 10.1% 0 pp 9.9% 10.0% -0.2 pp

Operating profit non-IFRS 377.1 344.6 +9% 191.4 173.9 +10%

Operating profit margin non-IFRS 11.4% 11.8% -0.4 pp 11.2% 11.6% -0.4 pp

EBITDA 463.7 418.1 +11% 234.7 213.0 +10%

EBITDA margin 14.0% 14.4% -0.3 pp 13.7% 14.2% -0.5 pp


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Q2 2015 / Change Q2 2015 vs. Q2 2014

Sales revenues**Proprietary software

and services**Operating profit

(non-IFRS)

Polish market 407.2 -5% 339.7 +4% 67.8 -13%

Israeli market 893.7 +29% 782.3 +27% 87.7 +52%

Central European market 121.2 +9% 110.2 +15% 12.3 -24%

South Eastern European market 121.8 +1% 71.4 +7% 14.0 +35%

Western European market 146.7 +21% 76.8 +7% 6.2 -33%

Eastern European market 24.4 -16% 22.3 -15% 3.7 +127%

Asseco Group* 1,713.1 +14% 1,400.4 +17% 191.4 +10%

Non-IFRS figures including adjustments for amortization charges on intangible assets recognized in purchase price allocation, for the costs of share-based payment transactions with employees, as well as for financial results recognized in accounting for mergers and acquisitions

* Figures after consolidation eliminations�** Revenues generated in individual markets include sales to external customers as well as inter-segment sales


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H1 2015 / Change H1 2015 vs. H1 2014

Sales revenues**Proprietary software

and services**Operating profit

(non-IFRS)

Polish market 766.6 -6% 655.2 +1% 137.8 -14%

Israeli market 1,770.8 +29% 1,537.4 +27% 175.1 +48%

Central European market 236.1 +6% 211.1 +14% 26.4 -9%


220.4 0% 135.7 +9% 23.9 +30%

Western European market 274.1 +16% 148.5 +9% 11.2 -35%

Eastern European market 42.2 -7% 38.3 -8% 4.8 +890%

Asseco Group* 3,305.1 +13% 2,722.3 +16% 377.1 +9%


* Figures after consolidation eliminations�** Revenues generated in individual markets include sales to external customers as well as inter-segment sales


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Reconciliation of operating profit and net profit

H1 2015 H1 2014 Δ Q2 2015 Q2 2014 Δ

Operating profit 333.6 295.3 +13% 169.1 150.5 +12%

Interest expense -14.2 -14.2 -8.6 -8.6

Foreign currency transactions -13.6 -2.3 -13.1 -1.3

Other 2.5 28.2 -2.5 2.2

of which: gain/loss on transactions associatedwith company acquisitions

-0.7 0.9 1.3 3.7

reversal of allowance for a loan granted to Matrix42 Inc by Matrix42 AG

5.4

reversal of allowance for receivables/commercial papers of PI

28.1

Pre-tax profit 308.2 306.9 0% 144.9 142.8 +1%

Income tax -76.1 -65.9 +15% -39.2 -30.3 +29%

Share of profits/losses of associates -0.2 1.5 -113% 0.0 0.7 -100%

Profit/loss from discontinued operations* 0.0 9.6 -100% 0.0 8.9 -100%

Net profit 231.9 252.1 -8% 105.7 122.1 -13%

Net profit attributable to shareholders of the parent company

138.0 183.2 -25% 60.4 86.6 -30%


* 2014: net profit of Slovanet Group along with the gain on disposal of Slovanet by ACE Group


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Explanation of changes in net profit


Change in EBIT

Attributable to shareholders of

Asseco

Attributable to minority interests

Polish market -22.3 -21.3 -0.9

Other markets +60.6 +15.4 +45.2

Asseco Group +38.3 -5.9 +44.2

138,0

-24,9

-8,4

+38,3 -44,2

-6,0

183,2

149,9

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Generated cash flows

Asseco Group Asseco Poland

H1 2015 H1 2014 H1 2015 H1 2014

CFO 388.1 379.7 96.9 122.8

CAPEX* -90.2 -107.1 -20.3 -11.4

Free cash flow** 297.9 272.6 76.5 111.5

Cash conversion*** 79% 79% 72% 88%


* Excluding investments in investment property, net of grants received

** CFO + CAPEX

*** Free cash flow / non-IFRS EBIT



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Stable liquidity position (Asseco Poland) As at 30 June 2015

ST LT

Cash and financial assets 60.1 89.7

Debt and finance lease: -93.1 20.9

Bank loans -74.6 -83.5

Assets serving as bank loan collateral* 197.9

Finance lease liabilities -18.5 -93.5

Net cash (ST) -33.0

Inventories + ST receivables – ST liabilities** 418.8

Net operating assets (ST) 385.8

Available bank loan facilities 520.0


* The book value of real estate serving as bank loan collateral

** Inventories + short-term receivables + short-term prepayments – short-term liabilities excluding bank loans and finance lease liabilities


Thank you

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www.inwestor.asseco.pl


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The name and logo graphic of Asseco Poland S.A. are registered trademarks. Any use of these trademarks shallrequire prior express consent of Asseco Poland S.A.

2013 © Asseco Poland S.A.

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Asseco Group Results · 2010 2014 Sales revenues (USD m) 6.7 17.0 2010 2014 Operating profit (USD...

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