Transcript Wyniki pierwszego kwartału 2008

Presentation of the consolidated results of the
Sygnity Group for Q4 2008
Warsaw, 26 February 2009
Disclaimer
This presentation has been prepared for information purposes only. It does
not constitute an advertisement or an offering of securities in public trading.
Although it relies on sources of information that Sygnity S.A. deems to be
reliable and accurate, there is no guarantee that they are exhaustive and
fully reflect the factual status. The presentation may contain statements
concerning the future that constitute an investment risk or a source of
uncertainty, which may materially differ from the actual results. Sygnity S.A.
will not be liable for the consequences of any decisions made on the basis
of this presentation - such liability will rest solely on the party that uses it.
This presentation is subject to the protection provided for in the Copyright
and Related Rights Act. Its duplication, publication or dissemination will
require the written consent of Sygnity S.A.
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Summary of the results for
Q4 and Q1-4, 2008
3
Results for Q4 2008 vs Q4 2007
[PLN ’000]
Revenues
Q4 2007
Q4 2008
371 217
337 087
Operating profit (loss)
54 697
27 475
Operating profit (loss) without restructuring
write-offs/revenues from assets’ sale
27 281
27 475
* 42 504
18 440
Net profit (loss)
* including one-off gain in the amount of PLN 27.4 million.
4
Results for 2008 vs 2007
[PLN ’000]
Revenues
2007
2008
1 206 513
1 001 760
Operating profit (loss)
(72 289)
12 596
Operating profit (loss) without restructuring
write-offs/revenues from assets sale
(54 300)
946
* (81 126)
233
Net profit (loss)
* including one-off gain in the amount of PLN 27.4 million and restructuring write-offs.
Factors affecting the results:

Greater share of sales of own services and products (increase of 10 p.p.)

Greater profitability in all sectors

Positive effect of the restructuring process
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Revenues structure in 2008 vs 2007
Q4 2007 vs Q4 2008
2007 vs 2008
Revenue
[PLN ’000]
Revenue
[PLN ’000]
400 000
1 400 000
350 000
300 000
39%
144 613
35%
118 287
250 000
200 000
1 000 000
45%
61%
65%
218 800
600 000
400 000
226 604
35%
534 019
344 151
800 000
150 000
100 000
1 200 000
55%
Goods and materials
Products and services
65%
672 494
657 609
2007
2008
200 000
50 000
0
0
Q4 2007
Q4 2008
 Increase in the share in sales of own services and products
 Decrease of subcontractors share in projects execution
 Revenues from services lower by PLN 16 million as a result of the disposal of
assets servicing the National Health Fund and health service bodies
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Revenues in 2008 vs 2007 by sector
Sector
[PLN ’000]
2007
2008
Public*
506 419
413 136
Banking and finance
320 322
270 725
Utilities
124 657
92 403
Telco industry
255 115
205 330
1 206 513
1 001 760
Total
* Revenues decreased by PLN 18.3 million du to assets disposal
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Financing
8
Debt situation
[PLN ’000]
Bonds
Loans and credit
facilities
Cash
30.9.07
31.12.07
31.3.08
30.9.08
31.12.08
As of the
publication
date
-85
-60
-57
-58
-63
-63
-61
-192
-107
-84
-68
-56
-31
-23
24
51
48
36
40
58
56
30
7
-36
-28
Funds in escrow accounts
Net debt*
30.6.08
-253
-116
13
18
-93
-90
-79
* Without taking into account funds in an escrow account for contracts
As of December 31, 2008, the Sygnity Group total debt from bank loans/credit facilities and outstanding
bonds amounted to PLN 94 million (PLN 84 million as of the publication date), as compared to total
debt from bank loans/credit facilities and outstanding bonds as of December 31, 2007 of PLN 167 million.
The Group’s net debt amounted to PLN 36 million as of December 31, 2008 (PLN 28 million as of the
publication date), compared to PLN 116 million as of December 31, 2007.
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Outlook for bonds’ servicing in 2009
Operating cash-flow generated in
2008 and H1 2009
Disciplined working capital management
Sources of
financing
Assets disposals
Roll-over of bonds, on-going basis
Financing from new institutions
PLN 3,570,000
PLN 1,730,000
PLN 5,860,000
PLN 50,000,000
Bonds’ maturity:
March 2009
April 2009
June 2009
July 2009
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2009 outlook
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Backlog
Sector
2009 backlog [PLN ’000]
Banking and finance
98 252
Public
94 480
Telco industry
53 543
Utilities
45 071
Total
291 885
 80% of backlog for 2009 consists of own solutions (services, licences and
service support) and covers 50% of estimated margin for the entire year
 In addition, backlog for 2010-2011 currently amounts to almost PLN 100 million.
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Assets planned for disposal in 2009

Sale of land surveying and outsourcing
companies;

Sale of one real estate property;

Sale of the above assets (currently in
progress) is estimated to generate revenues
of approx. PLN 40 million. The effect on the
operating profit will amount to approx. PLN
15 million with a loss of revenues of approx.
PLN 50 million.
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Banking and finance sector – prospects for 2009

Challenges in the sector:
 Reduction of IT costs, i.e. increasing cost effectiveness
 Response to regulatory changes, including the prospect of converting to the euro
 Optimisation of processes and modernisation of systems using SOA and EDA
 Increase in product profitability and risk reduction

Key prospects:
 Renewal of the service support agreement with NBP
 Automation of obligatory reporting for DnB Nord
 Implementation of the Flexcube system in Snoras Bank (Lithuania)
 The Company Banking Centre (Loan Servicing) in BZ WBK

New products and services:
 BILIX
 Dimension.CL
 SCAD (a system for calculating a bank’s capital requirements)
 RCIH (a system for integrating information on a retail customer)
 Outsourcing of Development Services for financial institutions
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Public sector – prospects for 2009



Challenges in the sector:

Concentration on projects financed from European funds (the Ministry of Internal Affairs and
Administration, the Ministry of Health, and the Ministry of the Economy)

Local government projects

Continuation and maintenance of existing projects (the Ministry of Labour and Social Policy, the
State Fund for the Rehabiilitation of the Disabled, the Ministry of Justice, the Ministry of Foreign
Affairs, and the Polish Post Office)
Key prospects:

Projects financed by the World Bank

Projects as part of the Polish State Computerisation programme

The Ministry of Justice, the Ministry of Finance and other ministries
New products and services:

GIS (land surveying portals and cartography)

New products for local government organisations (e-services, crisis management, solutions for
the health service)
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Utilities sector – prospects for 2009



Challenges in the sector:

The commencement of the implementation of centralised customer service systems in Power Groups

The commencement of the implementation of network asset management systems at electricity and gas
network operators

A further increase in sales in the municipal utilities sector
Key prospects:

PSE Operator S.A. – modification of the zSIRE system to serve the current day market

Gaz System S.A. – supply and construction of a system for archiving and securing data and an information
exchange system

GSG, MSG – network asset management systems

Vattenfall – low voltage network control system

ENEA, TAURON – PMS system
New products and services:

Strengthening the offer of consulting and application integration services

Systematic development of own products: billing, asset management, and trade and distribution servicing

Development of cooperation with Microsoft on the power market
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Telco sector – prospects for 2009



Challenges in the sector:

Signing a long-term agreement with Telekomunikacja Polska

Increasing cooperation with Dialog, Netia and Exatel

Signing agreements for Inventory.cl with operators other than Telekomunikacja Polska
Key prospects:

TP – subsequent Editions

TP – prequalification and scanning

Exatel – modernising the network management framework and system

Telekomunikacja Kolejowa – new projects

Dialog – the SoftSwitch platform
New products and services:

Provisioning and automation of processes related to the activation and settlement of
telecommunications services

SoftSwitch

Inventory.cl – a new passporting product
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Industry sector – prospects for 2009



Challenges in the sector:

Cable Television Companies – increasing market share

Signing an agreement with Bliska, the second largest chain of petrol stations in Poland

Signing a cooperation agreement with the Coal Corporations

Expanding cooperation with PKP (Polish State Railways)

Signing agreements with retail networks
Key prospects:

Bliska – Petrol Station Servicing System

SPEC, Animex, Siódemka – an ERP solution

Vectra, Multimedia – provisioning, NMS, passporting
New products and services:

A new version of Petrostation for serving a chain of petrol stations

A system for serving a retail sales network

Gemcom – a three-dimensional deposit visualisation and a system for managing mining
damage
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2009 outlook

Revenues of approx. PLN 1 billion

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 15 million (2-3 transactions to be carried out)

Maintaining gross margin at the level of 2008 (despite the
sale of assets) due to an improvement in the revenues
structure

Reduction of net debt to PLN 10-15 million

Expected increase in revenues from the utilities and telco
sectors and decrease in revenues from the banking and
finance sector
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