Presentation of consolidated results of the Sygnity Group for Q4 2009 and 2009 Warsaw, 26 February 2010
Dec 25, 2015
Presentation of consolidated results of the Sygnity Group for Q4 2009 and 2009
Warsaw, 26 February 2010
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Disclaimer
This presentation has been prepared solely for information purposes. It is not an
advertisement or an offer of securities in public circulation. The information sources
used in it are considered by Sygnity reliable and precise, however, there is no
guarantee that the information is exhaustive and that it fully reflects the factual
circumstances. The presentation may contain future statements which pose an
investment risk or a source of uncertainties, and may considerably differ from factual
results. Sygnity SA shall not be held liable for the effects of decisions made based on
this presentation. All liability is borne by the user of this presentation. The
presentation is subject to protection pursuant to the Copyright and Neighbouring
Rights Act. Copying, publishing or dissemination of the presentation requires a prior
written consent of Sygnity SA.
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Results for Q4 2009/Q4 2008 and 2009/2008
Factors influencing the results:
In Q4 2009: abandoning by the Clients execution of 2 projects (revenue of PLN 25 million) and a delayed launch of 3 projects (revenue of PLN 30)
Year 2009:
• decrease in orders: for infrastructure (nearly PLN 240 million) and for services and software (PLN 185 million)
• lack of new large projects related to banking, telecommunications and few projects related to the public market
• decrease in revenue and margins – aggressive savings programmes and Clients’ pressure to lower project valuations
* Influence on the result amounting to PLN 2.9 million in relation to the sentence of the Court of Appeal in Łódź – project for ARMA
[in PLN thousand] Q4 2009 Q4 2008 2009 2008
Revenue 164 327 334 075 572 692 995 669
Operating profit (loss) 11 342* 28 350 (94 802) 11 521
Net profit (loss) 6 924 19 609 (89 178) (1 329)
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Revenue Q4 2009/Q4 2008 and 2009/2008 by sectors
Sector
[in PLN thousand]Q4 2009 Q4 2008 2009 2008
Banking and finance 50 035 96 819 166 374 277 030
General Business 27 871 57 154 122 442 205 648
Public 59 747 135 759 183 687 420 630
Utilities 33 719 42 216 106 298 92 361
Others and exemptions (7 045) 2 127 (6 109)
Total 164 327 334 075 572 692 995 669
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Sales structure Q4 2009/Q4 2008 and 2009/2008
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
Q4 2009 Q4 2008
123 943
211 600
40 384
122 475
Products and services Goods and materials
Revenue[in PLN thousand]
75%
37%
63%
25%
0
200 000
400 000
600 000
800 000
1 000 000
2009 2008
462 050
647 330
110 642
348 339
Products and services
Revenue[in PLN thousand]
81%
65%
19%
35%
Indebtedness
As of 31 December 2009, the total indebtedness of the Sygnity Group due to bank loans and issued bonds amounted to PLN 68 million.
As of 31 December 2009, cash of the Sygnity Group exceeded the balance of used bank loans and issued bonds by the amount of PLN 4 million.
At present, cash of the Sygnity Group exceeds the balance of the used bank loans and issued bonds by the amount of PLN 6 million.
[PLN million] 31.03.2009 30.06.2009 30.09.2009 31.12.2009 22.02.2010
Loans -25 -25 -40 -17 -11
Bonds -64 -70 -40 -51 -66
Cash 36 39 18 72 83
Indebtedness -53 -56 -62 4 6
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Savings programme
Stage I (September – December 2009), the plan to reduce the costs by over
PLN 20 million was executed through temporary: Freezing of salaries and bonus systems Reducing the working time and unpaid holidays Reducing fixed monthly salaries
Stage II (Q4 2009 – Q1 2010): the plan to reduce the costs by minimum PLN 40 million within 12 months:
The undertaken decisions and executed measures will lower the costs within 12 months by PLN 30 million through, e.g. reduction of the employment by 350 persons
The currently executed measures include:• closing unprofitable production lines• reducing employment• new, more effective procedures and processes within the new organization model
New organization of the Grupy Sygnity – from 1 February 2010
Fundamental solutions of the new model: Concentrating sales and execution within 5 Business Divisions Single-person responsibility for the business (P&L) at the level of the Business Area
(BA) and Division Centralization of purchases – coordination and strict control of utilization of the
internal and external resources in project execution Division Offer Committee (Komitet Ofertowy Pionu) - active management of the
sales process KPI for new managerial roles (Division Director, Business Area Director, PM, Sales
Director) Close monitoring of investments in internal projects and new products Consistent accounting principles and a uniform IT system within finance and
controlling
Fundamental objectives of the new model: Stopping revenue erosion and increasing sales Higher economic and operating effectiveness of the Company
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Business prospects 2010 (1)
Banking and finance: Development of central banking systems (Profile, Flexcube) Revitalization of the electronic banking system Integration projects in banks and financial institutions Participation in consolidation of banks, e.g. AIG and Santander Consumer Bank Development of ERP solutions in banks
Public: Crisis management and emergency systems for the public administration „Gate” projects executed in the regions (workflow, GIS, tourism, education, health) e.g.
e-Dolnośląskie Projects related to censuses (GUS) Cooperation with the Ministry of Labour and Social Policy (Syriusz system) Projects for the European Union and European Parliament ERP solutions for the central administration Development of a logistic system for Poczta Polska
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Business prospects 2010 (2)
Utilities:
Preparation to Smart Metering – measurement of the consumption by recipients in order to communicate remotely with energy providers
Development of the offer within passport systems for new market segments, e.g. electrical power engineering, gas industry, water supply companies, industry, railway
Supplementing GIS systems and capital management systems with solutions compatible with ERP and SCAD systems – extending the offer onto new markets
General Business:
Development of cooperation with telecommunication operators (e.g. Sferia, PTC, Polkomtel)
Continuation of cooperation with Lotos, enhancing the offer for the fuel industry
Network and infrastructural projects
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Backlog 2010
Sector [in PLN thousand]
Portfolio of orders in 2010
Banking and finance 94 830
Public 109 186
General Business 41 202
Utilities 43 024
Other sales 3 259
Total 291 501
Backlog for the year 2009 in the analogical period of the previous year amounted to PLN 291.8 million.
Objective 2010
Stopping sales erosion, increasing revenue
Cost reduction, profitability increase
Strenghtening the managerial team
Completion of the Group’s consolidation by the end of 2010
Greater share of EU funds in co-financing of software development (PLN 10
million in 2009)
…. less adrenaline for „the market”, greater predictability