Presentation of Sygnity Group’s consolidated results for Q1 2009

Warsaw, 15 May 2009

Note

This presentation was prepared for information purposes only. It does not constitute an advertisement or an offering of publicly traded securities. It uses sources of information that Sygnity SA considers to be reliable and accurate, but there is no guarantee that they are exhaustive and fully reflect the factual status. The presentation may contain forward-looking statements that constitute an investment risk or a source of uncertainty and may significantly differ from the actual results.

Sygnity SA is not liable for the results of decisions made on the basis of this presentation. Liability rests exclusively with the entity making use of the presentation.

The presentation is protected under the Act on Copyrights and Related Rights. Its reproduction, publication or dissemination require the written consent of Sygnity SA.

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Summary of results for Q1 2009

3

Results for Q1 2009 vs Q1 2008

[PLN '000] Revenues Operating profit (loss) Net profit (loss) Q1 2009 140 376 (16 125) (16 979) Q1 2008 208 782 (24 844) (26 295)

79 487 75 578

GM1* margin

* GM1 margin - Revenues less external costs of goods and services   

Factors affecting the results:

 Effects of the economic slowdown Clients postponing certain projects into following months of 2009 Decrease of orders for infrastructure deliveries (according to IDC, 28% drop market-wide) Higher profitability – increase of the GM1 margin by 4 million zlotys despite a significant decrease in revenues 4

Revenues structure in Q1 2009 vs Q1 2008

Revenues [PLN '000] 250,000 200,000 150,000 100,000 50,000 0

13% 18,014 87% 122,362 29% 61,468 71% 147,314

Q1 2009 Q1 2008

Goods and materials Products and services

  Increase in the share of own services and products in revenues – 87% in Q1 2009 against 71% in the same period of 2008 Fall of the share of goods and materials in revenues from 29% in Q1 2008 to 13% in Q1 2009 5

Revenues in Q1 2009 vs Q1 2008 by sectors

Sector [PLN '000] Public Banking and financial Utilities Telco-Industry Others and exclusions Total Q1 2009

41 677 43 265 21 145 31 153 3 136

140 376 Q1 2008

99 291 54 706 11 289 44 057 (562)

208 782 Factors affecting the results:

 Lower revenues from the public sector resulting from the savings programme introduced in the government administration  Decrease in orders from the banking sector caused by the financial situation of the sector 6

Financing

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Debt situation

[PLN m] Bonds 30.9.07

31.12.07

31.3.08

-85 -61 -56

31.12.08

-63

31.3.09

-64

on pub. date

-71

Loans and credit facilities Cash

funds on escrow accounts

Net debt*

-192 24

-253

* without cash on escrow accounts for contracts

-109 51

-119

-84 48

13

-92

-34 58

30

-39

-25 36

-53

-23 29

-65

As at 31 March 2009

the Sygnity Group’s total debt

from bank loans and credit facilities and issued bonds amounted to

PLN 89m (PLN 94m at the date of publication)

against the total debt from bank loans and credit facilities and issued bonds of

PLN 140m

on 31 March 2008.

The Group’s total net debt

calculated as the balance of used bank loans and credit facilities and issued bonds minus the balance of cash amounted to

PLN 53m

at 31 March 2009

(PLN 65m at the date of publication

), against

PLN 92m

on 31 March 2008.

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Outlook for bond s’ servicing in 2009

Operating surplus for 2008 and 2009, and disciplined management of working capital – up to PLN 25m Bond s’ maturity

Sources of financing

Income from asset disposals – PLN 15-20m On-going rolling over of bonds – up to PLN 20m New financing institutions – up to PLN 10m

PLN 2.4m

PLN 5.8m

May 2009 June 2009

PLN 53.5m

July 2009

PLN 6.5m

PLN 2.1m

October 2009 November 2009 9

2009 Outlook

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H2 2009 – banking and financial sector prospects

 

Sector challenges:

• Delay in the adoption of the euro by Poland • Optimisation of processes and system modernisation using SOA • • • Increase of financial product profitability New approach to electronic service distribution channels Acquisition of new clients • • • •

Top prospects, products, services:

• Credit factory • • Advanced risk assessment methods Commission systems • • Outsourcing of IT services Portal and bus systems for insurance companies Merger of BPH and GE Money Document management systems Systems for the corporate sector clients Foreign projects in banking institutions 11

H2 2009 – public sector prospects

central administration, uniformed services



Sector challenges:

• Concentration on projects implemented with EU funds (Ministry of Internal Affairs, Ministry of Finance, Central Statistical Office) • Application development and maintenance projects for the Ministry of Foreign Affairs, the Police and the Ministry of Defence  

Top tenders underway:

• Central Statistical Office – census test implementation • • Ministry of Finance – development and integration of systems Ministry of Internal Affairs – projects implemented as part of PL.ID, emergency number 112, emergency notification system, e-PUAP • • • Central Geodetics and Cartography Office (GUGiK) Agricultural Social Security Office (KRUS) – GIS systems – systems implemented using World Bank funds Agricultural Development and Modernisation Agency – monitoring systems

New areas:

• Preparations for Euro 2012 – security platform • Developing competencies in the area of of dedicated solutions for state administration offices 12

H2 2009 – public sector prospects local government, labour market, social services and health



Sector challenges:

• Concentration on national projects financed with European funds (Ministry of Labour, Ministry of Health, Ministry of the Economy) • Regional and local government projects financed with European funds • Service product development (Ministry of Labour, State Fund for the Rehabilitation of Handicapped Persons, local government bodies) 

Top prospects:

• Projects financed with EU funds (services related to training and the implementation of the Syriusz Std system, building a standards database) • • Contracs for dedicated social services systems Projects for local government units related to the building of GIS systems and SIT terrain information systems • • Crisis management support solutions E-services implementation projects 

New products and services:

• GIS (geodetic portals, cartography) • New products for local government organisations, e.g. e Oświata, crisis management 13

  

H2 2009 – utilities sector prospects

Sector challenges:

• • • Separation of billing systems into the Trade Service Sale System (T3S) for sellers of electricity and the Distribution Service Sale System (D3S) for operators of distribution systems Implementation of network asset management systems for electricity and gas network operators Offering integrated computer systems to heating and water companies (ERP/Biling/GIS)

Top prospects:

• • • • • • PSE Operator SA – modification of the zSIRE for day-to-day management Energa Operator SA, Enea Operator SA and Vattenfall Distribution Poland the Sygnity Utilities for Distribution programme PGE – billing system modifications PGNiG SA – integration of billing systems and invoicing, contract depositories as part of PGNiG’s trade with gas recipients, data migration and building of SAP system interfaces MPWiK Wrocław – integrated computer system Energa SA, Enea SA, Tauron SA, PGNiG SA – Microsoft solutions – supporting applications within

Sector challenges:

• • • • Strengthening product range with regard to consulting services and application integration Upgrade of sector applications to new versions (metering and billing systems) Increased collaboration with Microsoft and Cisco in the power sector Acquisition of contracts for implementing integrated system solutions 14

H2 2009 – telco sector prospects

 

Sector challenges:

• Signing an agreement with TP as part of the Vendor Consolidation programme with regard to OSS, Corporate and Reporting areas • Collaboration with telco operators with regard to compliance with regulations set by the Electronic Communications Office • Telco operators limiting their investment budgets 

Top prospects:

• TP – new versions of OSS and KSP solutions • • • • • TP – prequalification and scanning, expansion of reporting systems, cooperation on EURO 2012 Exatel – modernisation of the framework and network management Telekomunikacja Kolejowa – network management system, the ”Internet na dworcach” (”Internet at Railway Stations”) programme Dialog – Inventory.CL new passporting system Sferia – addition of MPLS to the network’s framework

New products and services:

• Provisioning – automation of activation processes and settlement of telecommunications services • • Inventory.cl – new passporting system CRM and billing for cable television and alternative telco operators (R&D project)

H2 2009 – industry sector prospects



Sector challenges:

• Cable television operators – market consolidation, takeovers • • Diversification of petrol station management system providers for PKN Orlen Mining companies – an IT ”greenfield”, large new projects • • • Computerisation of PKP (state railways) – adjustment to European standards Retail market – demand for new services SME market – large market potential with regard to mass product distribution over the Internet 

Top prospects:

• Bliska – Petrol Station Management System • • • Orlen – petrol station service, internet portal SPEC, Animex, Siódemka, Emitel, KHW, KGHM Group – ERP solution Vectra, Multimedia – Provisioning, NMS, passporting 

New products and services:

• Petrostation – new version for petrol station management • • System for retail sales management Gemcom – three-dimensional deposit visualisation, system for managing mining damage • Loyalty system for PSP (small petrol station chains)

2009 backlog

Banking and finance Public Telco-Industry Utilities

Total Sector [PLN '000] Order portfolio

133 603 114 075 82 998 65 657

396 332

  67% of the current backlog consists of own solutions (services, licences and maintenance) The backlog for 2010 – 2011 currently amounts to more than PLN 100m 17

2009 outlook

     Revenues about PLN 900m – lower revenues as a result of the economic slowdown and concentration on services and application projects Estimated 2-3% recurrent EBIT margin (not including profit from sale of assets) Effect of assets disposal on EBIT expecetd to amount to approx. PLN 10-12 million (2-3 transactions to be carried out) Maintaining margins at 2008 levels (despite the sale of assets), due to improved sales structure Initiation of development programmes financed with European Union funds (in 2009-2010, subsidies of approx. PLN 10m for projects valued at PLN 25m) 18