Transcript Strategia Sygnity

Results 3Q 2008
November 2008
Disclaimer
The present study has been prepared only for information purposes. It does
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sources of information that Sygnity S.A. has acknowledged as reliable and
exact, however it is not represented that the information is comprehensive and
fully reflecting the real state. The presentation may include forward-looking
statements which constitute an investment risk or a source of uncertainty and
may substantially differ from actual results. Sygnity S.A. bears no responsibility
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Q3 2008 results
[PLN ‘000]
Revenues
Operating profit (loss)
Operating profit (loss) without
restructuring deductions/revenues from
asset sales
Net profit (loss)
Q3 2007
Q3 2008
236 910*
183 653
(54 579)
11 837
(17 792)
250
(50 077)
6 364
* After a correction resulting from recommendations by the new auditor (the MPK Poznań project)
Factors influencing the results:

GM1** margin higher by 19 percentage points than in Q3 2007

Lower than planned revenues from the utilities and the banking and finance sectors

Revenues of PLN 11.5m from the sale of ZPC (NFZ contract)
** The GM1 margin – revenues decreased by the external costs of the purchase of goods and services
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Sales structure
Q1-Q3 2007 vs Q1-Q3 2008
[PLN ‘000]
900
800
700
600
500
400
300
200
100
000
000
000
000
000
000
000
000
000
0
Q3 2007 vs Q3 2008
[PLN ‘000]
250 000
200 000
389 406
225 864
95 861
37 064
150 000
Goods and materials
100 000
Products and
services
146 589
445 890
438 809
50 000
141 049
0
Q1-Q3 2007
Q1-Q3 2008
Q3 2007
Q3 2008

Growing share of services and own software sales in total revenues

Lower revenues from the sale of equipment and infrastructure
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Q1 - Q3 2008 revenues by sector
Sector
[PLN ‘000]
Q1-Q3 2008
Public
291 357
Banking and finance
180 327
Utilities
Telco-Industry
Total
51 618
141 369
664 673
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GM1 margin 2008 vs 2007 by quarter
[PLN mln]
Revenues
Margin
Margin as
percentage of
revenues
[PLN mln]
Revenues
Margin
Margin as
percentage of
revenues
Q1 2007
Q2 2007
Q3 2007
Q4 2007
266 302
332 084
236 910
371 217
82 230
93 388
70 971
128 357
30.9
28.1
30.0
34.5
Q1 2008
Q2 2008
Q3 2008
211 259
269 762
183 653
74 784
104 626
89 700
35.4
38.8
48.8
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Debt
[PLN mln]
30.09.07
31.12.07
Bonds
-85
-60
Credit
-192
24
Cash
30.06.08
30.09.08
-57
-58
-63
-63
-107
-84
-68
-56
-43
51
48
36
40
23
13
18
-93*
-90*
-79
-83
Funds on escrow* acct’s.
Net debt
-253
-116
31.03.08
Current
* Excluding funds placed on escrow accounts under contracts
As at 30 September 2008 the Sygnity Group’s total debt from bank credit and issued bonds amounted
to PLN 119m (currently PLN 106m), as compared to total debt from credit and bonds of PLN 277m
as of 30 September 2007.
The Group’s net debt, calculated as the balance of used bank credit and issued bonds, decreased by
the balance of cash, amounted to PLN 79m as at 30 September 2008 (currently PLN 83m), as
compared to PLN 253m as of 30 September 2007.
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Plan for 2008

Revenues ≈ PLN 1bln


Operating profit on core business
(without assets) – as compared with a
loss of PLN 54m in 2007
Wage increases initially planned at
PLN 12m (altogether PLN 20m over
the course of the year)

Significant drop in orders from the
utilities sector

Lower than planned revenues on
bank automation solution sales

Lower export revenues

Greater growth of bank credit
repayment



Revenues from asset sales will
increase the operating result by PLN
12m to 22m (1-2 more transactions)
Operating profitability of 1-2 per cent
(together with asset sales)
GM1 margin growth by expanding
projects related to the sale of services
and own software
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Q4’08 – H1’09: sector outlook & strategy (1)
Banking and finance sector

revenue growth in Q4, maintaining high margins

roll-out projects for bank networks

own solutions for brokerages

strengthening relationships with clients using the model applied at Santander bank (other banks,
other countries)

new infrastructure projects (data center, bank automation)

sales support and risk management systems
Public sector:

maintenance of revenues and margins

continuation of projects for Poczta Polska, PFRON and the Labour Ministry

sale of infrastructure solutions for the uniformed services

implementation of own solutions for the Foreign Ministry and UDSC (small border traffic)

implementation of projects for the Justice Ministry

projects for the National Health Fund

crisis management projects
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Q4’08 – H1’09: sector outlook & strategy (2)
Utilities sector:

expected revenues growth in the power sector and maintenance of a high market share

increased profitability of current projects by concentrating on the sale of own solutions

expanding the relationship with PSE-Operator – a PLN 19.4m contract (only own services)

working with PGNiG – conclusion of service and maintenance contracts

sale of a new product for the gas sector – a system for gas billing, chemical analysis and meter
management (positive reference from the GSG SA project)

working with clients in the communal sector (first contracts with water and sewage companies in
Wrocław and Krakow)

sales growth in the gas sector (including PGNiG and Gaz System)
Telco-industry sector:

moderate sales growth (due to the weakening of economic growth) while maintaining
higher profitability

continuation of work for TP SA

development of relationships with rapidly growing television cable network operators

work for the PKP Group (PKP Informatyka and PKP PLK) based on new contracts

expanding the range of products and services (Microsoft, Cisco, NetCracker)
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Backlog
Sector
Backlog for 2008 [PLN mln]
Banking
225 354
Utilities
77 712
Telco-Industry
192 030
Public
363 579
Total
857 675
 current 2009 backlog in excess of PLN 150 mln, PLN 200 mln
including contracts awarded yet not signed
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