Asseco Poland Sa Unsp/Adr

Good afternoon, ladies and gentlemen. I'd like to welcome you very cordially to the conference dedicated to the results of the SECO Group for 2025. Today, at today's conference, we will summarize our operations for the previous year, for last year, and we'll also convey information pertaining to the backlog for the upcoming year, for the current year. During the first portion of the conference, we will have the presentation. The latter portion, we'll invite you for a Q&A session. We have the CEO, Mr. Adam Goro, and we also have who is the CFO of the group, and who is the vice president of the group. I'll go ahead and give the floor right now to Adam Goro. I would like to welcome you very cordially. I'm pleased that we're all here together, and above all, I see in the first row we see people who decided to be here physically in attendance and of course with full respect for all those persons who are participating remotely so I'd like to welcome everybody very cordially. So Arthur didn't emphasize that this is a special meeting because in a year And for me, this is going to be a totally new situation, of course, with the hope and looking to the future because I'm going to move into the supervisory board where I should be the chairman of the supervisory board. And so Asseco will always be with me. And this is my entire life, of course, outside of my family. But I treat this company as a member of my family. I'm going to have to... be vigilant because I want Rafael to be a leader with his attributes. He's a little bit different. We're different from one another. Of course, I have a guarantee of one thing, that he represents, espouses the same values, and that he's perfectly well prepared to run this company. And I'm sorry for saying that I believe that it was well run. But I think the company was in good hands and was well run. And having in mind that I have a good hand towards other people and it's managed by really great people. And so we come here in great sentiments. And these sentiments, of course, are somewhat toned down because I would like for the world to look a little bit differently. And there's a lot of... You know, bad people heading up some countries, and even though you have wonderful results, people are aware of their responsibilities, their liabilities, and it's a shame that the world has so much turmoil, but we don't have any impact over that. Today, up until now, the various wars have not obstructed us. I don't really want to talk about it. So we have our leader, on Friday I was talking quite a bit with your son, and when we hear that 12 times during the day that he had to go into the bomb shelter, then you become aware of what it means to think about a war. It doesn't matter who started the war. It doesn't matter who's at fault, who's the guilty party. We have to think about these people who are suffering in Ukraine and those people who are suffering in war, at the hands of war. And so these wars... I'm not going to say they are helping us or acting as a boost. I'm sorry, but during the pandemic period, I had hoped that these times would teach us something, that the leaders of the global leaders would understand, would grasp the concept that there's not that much that needs to be done in order for us to be totally disappeared. They have to understand that human life is of importance. And so that's all the more reason to be disenchanted. But thanks to the wonderful work of Tens of thousands of people in the SECO group are able to come here today and convey wonderful information. And the previous year was a great year. It was a record-breaking year. and the net profit of $1,139,000,000. We have these successful sales. We were able to sell at a good price and so we had, you know, basically 119% growth and so we made these decisions because we thought that Sapiens should have a new impulse and today jointly with advent we want to make sure that this impulse will continue to drive us forward and We hope that that 18% will have a huge loss of roughly 500 million of that 1 billion 139 is due to sapiens the risk which is also record-breaking is linked to the organic growth that we have achieved and so I'm pleased that that we are well-positioned in Poland and Central Europe, and you've been able to look at that, and we had a more difficult period. And I'm, of course, under a great impression that as we've been having seen the organization being run by Yusuf Klein, our leader, and so for me the test of his person as a manager, as an exceptional leader, this was the difficult time. when those countries, and we are dependent on government projects, it didn't seem that it wasn't spending money on IT, and it seemed that some of the substantial EU funds that were being allocated to the energy sector And then Joseph's ambitions led to a situation where it was a very difficult point in time for him. So I'm pleased that they were able to survive in this very difficult period. They were able to draw conclusions, and they were able to perceive the weaknesses of the organization, and they utilized that time in order to eliminate those weaknesses in today. They have a wonderful 2025, and today we believe very strongly that they will continue to prosper in 2026. So that group, in terms of what's linked to Asseco International, we have reasons to be proud. And in these difficult and challenging times, our teams in Israel, this is a global company, of course, has done very well. has coped very well, and so we've known for years that we have exceptional, wonderful people there. I remember, because I'm going to have a request when we talk about our stock exchange, I don't entirely understand this, that we're not able to vote on that 1.5% for my team. So, take a look at this. I was a person who was looking at the interests of the investors, the management, and the people working for this company. And if I'm going to be in the supervisory board, I'm not going to be able to operationally, I'm not going to be able to scrutinize these things. Ralph was going to do it. But these 95 people, for us, for the investors, this is the safety in terms of people fighting for the value of this company. And this is the time to... I urge you to look at this vote. Once again, it's really worth looking at closely. Do you know why we've been able to achieve such a great success in Israel? The first thing that I did was I met with Guy, and I gave him a certain number of shares. Of course, in the voting, I wasn't afraid that he's going to be the richest person in the world. Of course, I wished that to him. Look at the business we've been able to do there. Of course, those equities might not have been the deciding factor, but he had an incredible amount of motivation to run the company in such a way. Because we say that we're controlling somebody, but in our area, there's no bona fide control. As a leader, I'm dependent on thousands of people. in terms of how they're operating. And if that leader would want to do something, it would be possible to do that legally. And doing this simple maneuver, we were able to achieve a very simple and straightforward objective. And so the $143 million has paid back quickly, and I'm pleased that our investment in Israel is the largest Polish investment, and so we've only got good experience under our belt here. And some of you had given us heedings, warnings, that they're going to try to, let's say, maneuver you and somehow do something. We have a wonderful successor. Take a look at this case and think about my people, please. Think about them, who are totally deserving Of course, they've created this beautiful history of Hezekiah, and this is not a salary for the history. There is a portion of that is... but this is also remuneration for what they're going to do in the future. So I'd be grateful if you were to follow and embrace my thinking. I'll give the floor to Marek, and we'll drill down into some of the details, and we'll talk about the individual results. And then at the end, I'll take the floor. I'll go ahead and bore you a little bit more because I continue to think about the future of this company, and I'm going to tell you a little bit about how I see the future. So I'll give the floor to Marek. Thank you very much. So having in mind what Adam said earlier, that we still have the final section of the meeting during which Adam's going to want to speak to the future. I today will try to speak more succinctly and I'll take less time than usual, especially since the trends we've observed over the last three quarters were sustained, and nothing happened, nothing extraordinary happened in Q4, and I think this wouldn't be necessary to talk about. Let's talk about the profits. So Adam mentioned the net profit, which is $1 billion, nearly $140 million, but look at some of the other two numbers. So we have revenue at nearly $16.2 so it's 16 billion 780 million zlotys and this is a 12% increase year-on-year and they may have operating profit which is in excess of 1.6 billion zlotys and the increase here was 11%. As a matter of tradition, I will show you the split of our revenue by operating segments in terms of geographies and you can see this is not a mistake. that all three of our segments were growing at exactly the same pace of 12% year on year. And if you start on the right side formula group, which is the largest, and this is some 60% of our revenue, we've been able to achieve nearly the 10 billion Zloty watermark. And then we have international, which is some 27% of total revenue in the group. So we have 4.6 billion. And then we have the Polish segment, which is the second Poland segment. And we have nearly 2.3 billion in revenue. As I mentioned everywhere, we have across the board a 12% pace of growth year on year. We'll also show you the revenue by product groups. Here, I will not discuss this in great detail. You can see that all of our segments across the board are basically growing. In some cases, we're growing more quickly. In some cases, we're growing less quickly. All of the solutions that we have for public institutions, which represent 25%, so one-fourth of the total revenue of the group, We have very dynamic growth of some 15%. We're pleased with what's happening in the banking sector from the very outset of our operations as a sector. This is a very important and significant bulk of products or segment of products that we've been offering. So we have nearly $4.7 billion. So it's more than 8% increase. And so all of these things are pleasing to us. We're pleased with the diversification of our business. So the top 10 customers in the revenue of the overall group is a mere 12% of the total revenue of the group. So the largest customer represents 2% of total group revenues, so we're not dependent on any single customers or clients. And let me say a few words about our solutions for finance. We'll talk about the other segments as well. So we have across the group some $3.7 billion. We have in revenue an increase of nearly 5% year-on-year. And so you can see in the formula group up until now, it was always the leader and was the major contributor of revenue in the financial segment. Now it's number two. And that's as a result of the fact that Sapiens has been extracted because it was sold, as was stated previously. And of course... This formula system segment is still doing very well. So it's nearly $1.5 billion at 11% growth. Then we have Asseco International, which came in at $1.6 billion, which is 4% growth. And we have Southeastern Europe at NPST, which is our company in Portugal, which is operating in the Portuguese market, and then we have ESSECO Central Europe. So all of these businesses are growing well. Then we have, on top of that, ESSECO Poland. So this segment, ESSECO Poland segment, has a 10% uptick in growth. And here we're the market leader in terms of banking and lease companies. as well as brokerage houses. And so we're very pleased because this business for many, many years has developed nicely. If we think about our public institutions, the growth is much more dynamic than in the financial sector. So we have a 15% increase year on year, so it's more than 4.5 billion. And so we have the international segment Well, for a couple of reasons that's grown so fast, because it's the Czech and the Slovakian markets. And as you recall, we had a stagnation there in previous years. We've been able to rebuild our position, and so the revenue is substantially higher. And the same is true in southeastern Europe. in the balkan group and so 2024 was clearly a softer year and so we have experienced dynamic growth in on this revenue in poland our growth is nearly 20 so we came in at 1.2 billion in revenue so in poland you know we are the leader in terms of our solutions for public institutions we're a major player in terms of administrate public administration for the health service as well as for the power sector, where our position is a leadership position. And so we're very pleased that the business has grown at such a fast clip. And then we have Formula Systems, which you can see is the major contributor to the revenue in public institutions. It's seen 11% growth with revenue coming in at 2. nearly 4 billion Swatis.

like to cover today is ERP solutions. So these are our businesses within Asseco International. So as a matter of fact, it's Asseco Enterprise solution, ERP solution in Poland, Germany, Slovakia, Czech Republic. We see 8% growth and revenue over 1 billion zloty. You might have noticed that another line disappeared, Asseco Poland segment. But this is the reason. The reason is that Dalia Maric that used to be reporting to Asseco Poland was transferred to Asseco Business Solutions and now is part of the Asseco International segment. Therefore, it makes no further sense to show asset of Poland segment. In formula systems, we also have our ERP solutions at a lower scale, but we are very happy to see a 14% increase and revenue over 6 million zloty. We continue our acquisitions. Two slides to cover this story. Showing all the acquisitions completed last year as a component segment and as a kind of national segment and formula system segment likewise That was the greatest All together we had 13 new entries joining the group last year So we were keeping the pace from the previous years every year we have dozen or so new companies joining the group. And we continue our efforts as we speak. We are scanning the market. We are speaking to candidate companies, and we are looking for the best match. We have definitely more selective approach. We don't want to just build our mass, but we want to have and TVs that have specific features in terms of products and competence that they bring to the table. And obviously we have to look at the price that we need to pay and the return that we can get on each deal. Now, when we look at the formula, I have to emphasize that it was a special year for Formula Systems acquisitions and corporate governance involvement. In addition to the acquisitions that they made, you may recall, because we've mentioned that already, in Q1, this year. We reached the sort of final line. However, we've been working on it since 2024. Namely, the combination of metrics and magic were joined as one company. So today, they are the largest company in Israel and one of the top 10 IT service providers globally. That was a major project and it turned out to be very successful. We've already heard that Sapiens sale was a long project, a difficult project, but at the end of the year, very successful. And another sort of tier that we are building here, Lihpal, that's the new company that was listed on the Israeli Stock Exchange last year. This is mostly HR and payroll solutions, software companies and service providers. So we are happy to embrace that because we see a lot of growth potential here. So we see a lot of good prospects for the future. Guy has a lot of ideas. He has a healthy and sound pipeline of MLA projects, and I believe that he will be delivering that step by step. Thank you for your attention. Over to Karolina. I will briefly cover the financials. On the first slide, you see the key. Marek mentioned revenue, we are almost at 17 billion, and we remember that Sapiens was sold in December last year, so it was already excluded from the individual items of our P&L, so it was shown in one line as a discontinued business. Therefore, this is all comparable when you look at these numbers, it's comparable to prior periods. So over 16 billion of sales. Our own proprietary service is 12.6 billion and a nice growth of 7% in both items. and non-IFRS EBITDA, non-IFRS EBIT, eight and nine percent up, respectively, and it's 2.5 billion for EBITDA, and over two billion for non-IFRS EBIT. And non-IFRS net profit is 742 million, and CAGR, the best of the last five years, nine percent up. And for some time, we've been showing P&L items between the years. And here we are sharing this information again. You may see that there is less negative impact of the currency exchange compared to the prior years. There is still a negative impact, but not major, 48 million in terms of revenue and 4 million in terms of operating business and non-IFRS. We are truly happy about our organic results. 1.3 billion hours organic sales across the group and that was translated into 300 additional million operating profit, non-IFRS. And acquisitions is 452 million at the revenue line and 46 million at the operating and operating income non-IFRS. Net profit non-IFRS, we show which segments were the greatest delta contributors on an annual basis and we can tell that ASCO Poland is doing very well. The Mary company is showing exquisite performance that you may scrutinize in the standalone financial statement. Minus 11, so it's an inferior contribution from the formula system segment. The main reason is that SAPIENS was consolidated over the course of 12 months, but in Q4 we had first restructuring processes, and the cost of that charge the result for the Q4. And a second international contribution was 49 million more compared to the prior year. When you look at the entire P&L statement, we are happy about the dynamics. 11% growth year-to-year revenue on proprietary software and services, then over 15% non-IFRS EBITDA goes up, and 20% non-operating profit, non-IFRS, and 11% standard operating profit. And here there is a slight decline. when it comes to profitability year to year. But please note that it was just Q4. And the reason is in the line that you will find below, namely M&A. This is all one-off events. 67 million is the write-off at Formula Systems for ZAP company. They were not doing as well as we were projecting at the moment of the acquisition, so we decided to actually write out that asset. Some costs were generated by the transaction that Marek referred to, so the merger of Magic and Matrix is 67 million, and then we also had some write-offs from other companies, and 15 million was our own project, our own investment, goodwill and assets in next bank company. Now, what is happening below the operating profit line? Well, you can tell that we are efficiently managing our debt. We were decreasing debt year to year. Interest income, the costs of interest is less year to year. Currency line is mostly the formula. Formula is reporting in Sheklas, but they were paid for the Sapiens deal in US dollars. And the translation of the currency balance, even with the small exchange rate decrease, generated major foreign exchange impact. We may say that this is just an accounting impact. M&A I've already covered, and for some time we've been affected by hyperinflation, and that is Turkish business. And the share in profit of associates looks very nice, but this is... formula who's the main contributor we have the indexation of the under evaluation of the our investment in the company that was doing SPL but this year and therefore we have the step up and therefore we are showing better numbers in addition to that We have profit on the discontinued business or discontinued operations. So this is the accounting result that we show on sale of Sapiens. 500 million. This is what we show in the current report and this is distributed to the shareholder of the dominating company.

Now the Sapiens Group.

I think that we need to align our projections. When we look at operating revenue and operating profit, well, Sapiens was a major contributor to these lines. Therefore, for 2026, because of the sale of Sapiens Group, we will be probably 2 billion short in terms of... revenue on our operating business and probably around 350 million profit on our operating activities. So Q4 was really charged with the cost of the sale transactions and the cost of restructuring. Therefore, I would rather look at the year prior year instead of Q4 2025. So that was the explanatory note to Sapiens. Now, what is happening across different companies? As I said, we are truly happy to see the performance of the Marek company in terms of the dynamics and profitability. Both were very, very decent. Your notes, analytical notes, expressed some surprise about the net profit contribution. Let me just explain that when we speak about deals like the sale of Sapiens, the taxes, such as CFC, are actually booked to Asseco Poland line and therefore it is really a charge to our net result and this is one of effect. In case of the Sapiens sale, the mare company, had to show almost 24 million of additional tax, namely CFC. So the effective tax rate for the Mare company seems to be surprisingly high, but this is the one-off effect of that transaction. In terms of other operations in Poland, Asseco Data Systems is improving their performance and I think that they are doing quite well and other major companies seem to be in good shape likewise.

Now, formula.

here we decided to show matrix and magic together in one line and as mark explained in february the merger was completed right now they are going to operate as one company magic was taken off the stock exchange it is actually the subsidiary of matrix therefore you need to look at them as one group In terms of other companies, we have consolidated Nerszpal that was listed on the Israeli Stock Exchange this year and we have a new subgroup under Formula. the working name, or actually the formal name is Formula Infrastructure. Now, a second international segment. We are truly thrilled with the improvement that Slovakia demonstrated. Adam highlighted that. This is both true for the core business, the public sector business, our health segment in Slovakia. it seems that they really rebounded and they improved substantially. But it needs to be highlighted that in this line we have our earpiece, so excellent performance of Asseco Business Solutions. We also have major improvement in profitability in Germany, so there's another reason to be happy. And now the South Eastern Europe, So, great performance in dedicated solutions, major improvements year to year, very good result in the banking sector.

And the payment segment, very decent too.

We need to remember that they are actually charged with the write-offs in India. I believe that Piotr mentioned that during the conference earlier. And there are some risks that emerged in that segment because of the loss of one of the Turkish customer and the potential loss of another customer in Turkey. Both of them are actually switching to insourcing. Therefore, they will drop from our customer portfolio.

If we look at cash, I think this is something that has been observed. We have very robust cash flow across the year. in Q4 as well. And this is true across the board, across the group, so it's 122%. And if we look at EBITDA, this is something that we've been displaying for years. And a second bullet, this is 124%, and it's 109% international. And Formula Systems, 128%, so we had specialty good cash flow in the Matrix ID company. And let's take a look at the balance sheet. And you can see that the header is more up to date than previously. And you can see the amount of cash. So it's more than $7 billion on the bank accounts of the companies in the group. and Asseco Poland, which is the mother company, and from the sale of treasury shares, so it's more than 1.5 billion. Then you have formulae systems here. We need to remember that more than $750 million was obtained from the sale of Sapiens, and this is also on the accounts of the company or in the segment at the end of last year. If we look at the proportional recognition, as is the case in the full recognition. We have certain reconciliations year on year, and so we can look at the contribution of the organic businesses, and so $734 million, and then $110 million from acquisitions. And then if we look at the operating profit non-IFRS, and so we have three from acquisitions, 216 from organic results. We have to remember about some of those impairments. I talked about them previously, the M&A adjustments, and so they're in this proportional recognition. What's also important here, as I've mentioned, that some of these impairments are through formula, but we also have the acecopolar, just once I said, And if we look at the proportional results, we can see that the growth rate is better and the profitability and the improvement in profitability is better. And this is a result of the fact that the Polish segment and the Second International saw market improvement. And we also show the main companies. I don't think I will discuss that because we've already discussed that. And if we think about the professional recognition of cash flow generators, it seems that it's very decent. It's not certain 30%. 27 percent and so we have 124 percent in the second poland and 114 in international and 127 in formula systems and so then we have the balance sheet set up on proportional recognition so the cash available to the shareholders or the holders of the parent company And so it's $3.3 billion, then $1.5 billion in Asseco Poland and then Formula and Asseco International. So this information has been indicated that a portion of this will be paid out in the form of dividends of some $200 million has been communicated and that this will be paid out in the formal resolution of the shareholder meeting. Well, the board of directors will be made after the – this will probably be in May once the financial statements of formula systems are approved. Then if we look at the backlog, I think we've got a satisfactory growth rate. This information coming from your releases. And so if we look at owns and proprietary services and software, 19% in the second Poland is like 17%. And so it's more or less equally divided public systems and financial sectors. So we've got 9% for international and 14% in formula systems. And if we look at this on a proportional basis, We have 16% in ESSECO Poland and 10% in ESSECO International and 14% in Formula Systems. And then I mentioned the dividend. I said that we have very decent cash flow and we have a very stable position, cash position, if we look at our balance sheet and these robust results. give us the ability and the wherewithal to pay out a dividend of 1 billion 51 million zlotys, which translates into 13.05 zlotys as a dividend per share. Of course, treasury stock doesn't participate in that, and 3% of our shares are in the form of treasury stock. And so the 13 zlots per share as dividend percent, if we look at the consensus opinion here, It's probably around 11 was, I think, the figure that was stated in the consensus. Why did we make the decision to pay out $1.51 billion? The first tranche would be paid out in terms of the cash proceeds from the sale of treasury stock. So we had received more than $1 billion, and so $500 million plus would be a little bit more. Half of that would be from the sale of treasury stock and the rest. And so we took a look at the free cash flow. We factored in our balance sheet. We looked at the results and we came to the conclusion that all of this taken together would give us the ability to pay a higher dividend from our current results in cash flow. And that's what fed into this defining the specific figure, calculating the specific figure. So thank you very much. and Karolina and Marek and my friend who's been listening to us that these are wonderful results and you guys aren't even smiling so I'd like to apologize it's because of my gravity because I was talking about the world itself and let's forget about the world for a little bit because we have enormous reasons to be joyful and satisfied because these results are wonderful, and they're linked to our efficacy, to our wisdom, and to the cogent execution of our strategy. These are things that have happened. I've never lived in the past, so only future is of interest to me. And so, of course, we're living in interesting times. So there is the AI battle, which is not easy to monetize in terms of what it's just not having an easy go at monetizing what is achieved up to now. So this world is giving us wonderful opportunities and new hopes. We have this battle for the world. in terms of AI with us. Of course, this world isn't monetizing things because they're thinking that we're operating too slowly and informing the world, quite the contrary, that we do appreciate what AI is doing because we've reconciled ourselves that this is happening with the tools, but there's a large number of our people who are following this world or tracking that world that we're going to utilize that in a wise fashion. And a psycho strategy is unchanging. Rafa is something that will continue along with my new wonderful partners. And we'll agree that at the outset, we will continue to make sure that we're going to specialize in the producing software and services related to the software we're going to write. And this is going to be the predominant, the prevalent strategy. portion of our revenue and we won't of course resign from integration. We want to make sure there's several regions where we are very strong and we don't want to lose those footholds. We will continue to build and make sure that we're building our sector position, sectoral position. This is something that I'm very proud of. In the near future, I'll have a meeting with the teams responsible for the various sectors, and each sector is coming in with its vision for the upcoming three years. Of course, our strength is intuitively our knowledge of our customers our customer knowledge and our customer knowledge is something that's been proving its position its importance in a cycle for some 35 years so i've been the leader for some 35 years so this year we're celebrating the 35th anniversary we're not going to make a major celebration as a result isn't that true but it's a wonderful jubilee celebration and the fidelity in terms of our education the awareness of processes that customers utilize this is our greatest value in the marketplace and having in mind these new times well our fortune is predicated upon the following that we are present in many institutions well these are non-standard solutions so AI trying to learn those types of solutions is something that will take a lot more time for that to be replaced or for that to be done. And so this knowledge that we mentioned on the first slide in terms of the teams of people we talk about our human intelligence, this is going to drive the future of the company. And here we have an advantage. And I'll show you another slide in a moment. We talk about our experience in a given area is also a great source of value. On top of that, we are utilizing, and we are utilizing AI. I will show you where we are because we've made enormous inroads. For many years, we've allowed ourselves to be dispersed. We've been a little bit chaotic. So one and a half years with Jarek Brun, who has been running business engines for many years in a wonderful way and in a business division. And so we've appointed him to be a leader in terms of AI. And then I'll show you what we've achieved thus far. Our goal, we want to utilize these tools to enhance the quality of our operations, our activities. We want to be more efficient We want to use them to restructure. We want to do more with the exact same team. That's our concept. And I'll give you some evidence that we are far along the path in terms of implementing this concept. So in some cases we have a little bit more time as opposed to those areas where the standard plain vanilla solution is the name of the game. So When we talk about the learning process, that standard, that plain vanilla approach for those companies that are selling the plain vanilla approach, this is going to be something that's going to be precarious for them because those companies will have greater problems. We, by utilizing our tools wisely, we're going to speed up the pace at which we're utilizing those tools. So our sectoral knowledge, which is a type of capital, this is an edge that we hold, right? So we have more than 30,000 employees. I don't like the word employees, but that's what we wrote on the slide because these are my business partners in some more than 50 countries, the knowledge about the banking sector, about the healthcare sector, about the government sector. And we have people from various countries. No country has been capable of creating a solution for the government that would be a plain vanilla solution that one size fits all. This gives us some time. to learn these AI tools and utilize them at the right point in time. So 12 years is the average seniority in a psychopole, and somebody could say, well, you guys are old. Well, take a look at the last item, more than 8,000 people applying to participate in our internship programs in 2025. So in the onboardings, I'm feeding... We need these young people, and I convey that to them. I impart that knowledge to them. We can be... I've never lived by success. I only see problems, and I'm interested in solving problems because I know that we're going to be better as a result. But if people are, let's say, somehow have their... They're just waiting. So we're bringing on board these young people. So until 15 years ago, I delivered a lecture at the Warsaw University. We were being promoted and touted, and Artur hadn't yet joined us. And I was showing thousands of articles, lots of publications about us, that everybody knows everything about us. And I was asking the most outstanding IT experts at the University of Warsaw, Do you know something about Asseco? And they didn't know anything about Asseco. So I'd like to thank Artur here. From that point in time, we've made huge inroads because our... brand recognition that the young people want to join us. And we have young people sometimes, I'm surprised they want to learn Cobalt because we have solutions at PKBP, which is a Cobalt solution. And so I'm pleased to see that young people want to learn Cobalt. So you should learn it, but you should make sure that you're diversified in terms of your knowledge basis. You can't lose from sight those tools that are timely today. and you have to have that knowledge about other types of tools and so you should take pains to ensure that you have those things mastered so that's why i'm calm at ease that this company is going to be healthy but somehow not entirely quite not calm we're number one in poland and europe many countries we always talk say one thing about that but the other talk other things we talk about in 10 years we want to be continue being a wonderful company we want to be a competitive company of course i fully believe that we will be such a company and that's clearly the case.

Why am I trying to be reasonable about AI? As a businessman and entrepreneur, I've been through a time when IT was about distributed architecture. We were one of the very first Polish companies that were centralizing IT systems. And some people were saying, oh, you will get lost, the Polish system will never survive it. But we made it. We were able to centralize whatever had to be centralized. And then there was a moment of the Internet frenzy. Unfortunately, we were not the main players. in that field, because we didn't offer the tools. But please note that we were able to grab quite a place for ourselves and build it up. And then the cloud came up. And from the very beginning, I was cautious about it because cloud mean, when you have a public cloud, it means that you give single individuals huge power over everyone else. And today, I'm really happy to see the Polish government taking measures and looking at the local content. This is what we are really trying to do. Other countries have done it earlier. I've been fighting for it over 30 years because I've always been of the opinion that Polish people should depend on themselves or on other Poles. Let's do it the same way other nations do it. Today, when we look at our diplomatic corps and our economic diplomacy,

in different countries.

I also noted the major progress. You can actually rely on the Polish ambassadors. They really want to help you. And it started back when we had the first government of Civic Platform and the land justice was keeping it up and now the coalition is doing it again. We have great ambassadors for our beautiful growth and development. I'm really proud that Artur is actually setting up the meetings and people show up. People want to help us so because they show that we were able to grow. And I know for a fact that if we take good care of all the things that I mentioned, we will not get lost in the new world where the AI becomes a major player. Now look at Jarek Ryla and his team. In June last year they made a promise, Adam, in December we will cover your entire internal production process with AI solution. It's been covered. We have been implementing it internally. Not much is going to change with our customers because when we approach our customers, we want to solve their core problems. We don't talk about the products. We say, okay, we help you increase your sales. with IT solutions, or we enhance your security, or we help you control and curb your costs. So we sell back. The tools are secondary. Why am I saying that we are cautious and we try to be wise about it? The only value that we truly have is our customers and the value that we are able to bring to them. If the customers are disappointed with the solutions that will be driven by AI, we will be doomed. And some AI-based solutions are not stable, are not mature. So this cautious approach that I'm advocating here is something that is not appreciated by the evangelists of the new tools. They think that we should take a different approach. You may have noticed that there are other peer companies that are similar to us, and they've been dropping in value 20%. This is like pressure on us to get our act together and act faster here. But I have a message to everyone who wants to make money on AI. No worries here. We are going to do it in a smart way. We are going to take advantage of everything that you have developed there. But we will do it in a way that brings real and true value to our customers. And we are not going to experiment on our customers. So the entire AI process is somewhat atypical for our organization. That's the way we do it. We opted for the federated model, and this is how we do our business. We really wanted to enhance enterprise in all our locations. We didn't want to kill the local spirit. So three, four years ago, We worked everywhere on these themes. Today we are trying to integrate that and centralize that, not to overlap and double the costs. We are trying to develop the model where Slovaks do not feel fully dependent on Poles. We want to make sure that Balkans have some room for themselves.

And I believe in that model.

So the advantage over the companies that have holdings is such that they have to actually scrutinize each of their group companies. They didn't integrate it. But we are pretty well integrated across different sectors. And therefore, once we have AI solutions, it will be much easier for us to implement that than for those who have completely distributed and dispersed business. Therefore, I do have faith. I think that this is my new passion and that's something that we are going to deliver. I don't want to bore you with the stories of all the sectors that we support and cover. I'm proud of the leaders. We are disruptive but in a healthy way and our ambitions run high. But there are two things where my ambitions have not been met. One is cyber security. We have a small company concept and we are not yet happy with them. They are not efficient. Despite the fact that they have smart people on board, they can do a lot. But we are honest about it. We haven't been able to... develop the business model that would be fully aligned with Asseco philosophy. And another area is solutions for defense and armed forces. And, you know, we have very strong references because we are supporting Frontex, but nevertheless, something is missing here. I believe in my leaders and I believe that we will see some progress in these areas. Right now, we have a great project in Togo on the radar. You may remember the project that we successfully completed during the pandemic in Togo. We have a Togo company shared with the government. Togo is a very pro-European country. And the leaders are very well educated. And I am really thrilled because we signed the contract for the development of the system for the Togo Armed Forces, for their army. So that also has to do with the cybersecurity and the solutions that address the needs of the armed forces. But now we are also trying to find a good partner for cybersecurity business. We are looking for the company that would be better than our current capabilities. Today we are talking to the company that is of great interest to us, but at the end of the day there is a price. You pay for the history, but you are buying the future. So we have to...

be reasonable about it.

So this is something that I'm going to really look at and take good care. I think that in our countries in Eastern Europe, These areas have not been truly developed yet in terms of business. I believe that if we find the right leader, we would be able to build a very strong regional position. So that's what I have up in my sleeve. Okay, so once when I am going to be on the supervisory board, I'm really going to harass, sorry for my word, but everyone who will be responsible for these areas that I have just mentioned. But they know how I handle that. I have a lot of patience, but I believe that we will be able to build a new position for our business. And the time comes when we have to assess our partnership with our friends from the Netherlands. I'm saying that they are our friends. It hasn't been a long time, but I have to say that we are really pleased. I am grateful. Probably the transaction would have never occurred if we were not able to keep the Polish control, so to speak, in terms of the power and the... being able to decide about the strategy. They come from the background that has a different strategy. When we were buying companies, we were integrating and building our integrated position. Their philosophy is that each company that they acquire, they have as a separate company within the group and they actually have a separate settlement for each investment. This is a different approach, but now they are looking at the way we are doing it because they truly appreciate the fact that we are in a very special point in time. AI is definitely affecting or impacting our world and our companies have to respond adequately. And I would like to really acknowledge our gratitude to them. I would like to thank them for their openness, for being so generous with their knowledge, the expertise that they have with acquisitions. and with handling of the companies once they are acquired. They also have a lot of expertise in finance management. So I have to say that they were really open about it. We were actually borrowing some of their solutions and methods. some KPIs that they have been using. This is not very surprising to us because they were looking at cash flow and we were also very mindful of our cash flow. For them, cash was number one and so has been for us. But they also have other KPIs that really help, that they keep people motivated.

They also have KPIs for software companies that are able to identify certain weaknesses.

We've been also looking at that, but I'm really happy that we were able to tap into the expertise of these KPIs. Because, to be honest, we were relying more on our intuition here. And based on that knowledge, I think that Rafał can claim the greatest contribution here. Asseco Growth. And this is the project that stirred a lot of commotion within the group because everyone thinks, okay, we've been doing it for years, we know everything about software. But suddenly it turned out that others approached the same thing from a completely different perspective. So I have to say that it was a very informative and educational experience. You know, I really wish that we... would have this 1.5% approved. I don't feel sorry about the 3% that I didn't get, although they told me openly that, Adam, you have to get the 3%. But I say, okay, I can go about it. Because otherwise it's like not appreciating the succession that you need. There is a change in generations, right? If you've been doing business with someone and they always deliver and never failed you, you really want to continue doing business with them. So my generation is still there and is still quite efficient. Rafał has his own peers of his own generation and he's navigating that very well, but my role is to make sure that we have proper continuity with the succession. So they came to us and they said, well, you know, 3% is the right way to go. I told them, look, our market is not really ready for that. So they were disappointed that we were not able to take a good vote on that. So they don't understand our mindset and our investors, but they continue to respect our country and our market and our capital market. And we believe that together we were able to vote in favor of this 1.5% once we finally close 2025. Now, 2026 makes us optimistic. I always say that it's great. I always say that we are good. And Artur is saying that we are phenomenal. We were great. We were phenomenal. I've already said that on several occasions when I was speaking about our company and our business. So I've been learning too. So very optimistic. Today journalists were asking questions. They were saying, Adam, we would like to meet you again. I said, look, now Rafał is the key man.

I am a very open person.

I think that Rafał is more restrained. But if he's more restrained, you know, make sure that he's more down to earth.

Because media has never failed us.

And even if I was saying way too much, you know, they... didn't publish everything when I said afterwards that, well, perhaps that shouldn't be published. You know, it's not that I'm ashamed of that, but, you know, we are just humans. And to rank people that are on board in the company, I always tell them, look, we don't have a single individual in this company who has never made any mistake. You know, the shame is to repeat the same mistakes again and then to lie about it. If you made a mistake and if you lie about it, then as a result, 100% can get sacked because of it. If you don't lie, if you're open about it, everyone will help you repair and remedy your mistake. That's the way we need to keep it at a second. We have to be positive. You may say, okay, it's hard, but I have to multiply it by 10, saying what you can do to make it better. We are critical, but not in terms of complaining, but we are critical in terms of, okay, that needs to be improved. This is what has to be done about it. It's not about just complaining and saying, I don't know what to do about it.

And we are not afraid to make mistakes.

And we believe that customers are definitely sacred. They pay our bills. So if something prevents us from providing good service to the customers, We have to fight with that. You know, you have to show it to us that this is wrong, and young people are coming full of power and energy. I love the onboarding experience. I always tell them that they have to address me as Adam. I have a great assistant, and, you know, she's 24 years, and she's addressing me, Mr. President. And I say, look, one order that I always give, I'm Adam. I'm not saying farewell. I'm not really leaving for good, but it will be tough because I've always loved meeting you. So I don't know. I will have to learn what to do not to get into a Rafał's way. Rafał is definitely sharing and representing the same values. I know that he's prepared, he knows everything how to do the job, but he's a different person.

I want him to be himself. I just cannot get in his way.

And I know that things will be fine. And I would like to thank all of you for still coming to our meetings because we've been together on so many occasions that probably you don't find me surprising. I said at the beginning that, you know, there are wars out there and this is not a reason to be happy. Then there is another aspect. It's important to actually speak to people face to face. The more people we have in the room, the merrier it is. It's easier to smile when you have real people sitting in front of you. I know that we have 100 people who are watching us online, but those who came here and are with us in person, it's really nice. Well, perhaps for those hundred that are just watching us online, we were not top performers. If there is anything we need to improve, please let us know.

So after this wonderful presentation and summary, we have the opportunity to move on to the Q&A session because there are questions coming to the forefront from some of our participants, our online participants. And so the idea is we'd like to move on now to the Q&A session. And at the end, we'll wrap up by bidding adieu. So let's begin with the first question in terms of this year's recommendation for the dividend fund. Should we treat that as an extraordinary dividend? What is the dividend policy for the upcoming years? And in subsequent years, should we anticipate that there would be a higher amount or quantum of transfers to the shareholders? If we will not, acquisitions are still our passion. It's more difficult to buy things. There's an enormous amount of competition. We have certain boundaries. The only limit, I think I mentioned that, in terms of relations with our new partners, that the decisions acquisition decisions we make those decisions together this is a limitation for marek this is something we wanted we wanted to buy things at the optimum price so we've had major success even if we were a little more intuitive than our new business partners we've been very effective i would like for marek's team to have access to knowledge about how others do that. And I'm pleased that we have that access. Samaric has several potential acquisition targets. We're working on that now. But in Asseco, we always want to vie for organic growth. That's our obsession. One of the very kind journalists said, Adam, you know, you had Balkans, other areas, but those were different times. At that point in time, we were buying companies at normal prices. So today, if somebody is coming forward to us, and we have tens of people, business owners, talking with me per annum, And so Marek, of course, is talking with them, because Marek, of course, introduces me as well. And so somebody's coming forward, and what they've created, which is far away from our standard, is pricing that at a multiple of tens over this profit, but they don't want to buy the brand. And I'm not interested in that, because we can pay a lot for the past, for the history, But the fact that we're going to build the future together, well, ESSECO, because if you're using a very high multiple, let's say 30 or 20 or 40, whatever, then we all understand what that means. And since there's a lot of competition, there are funds out there that have a pressure to spend money, and ESSECO is not going to participate in that type of battle. We want to attract business owners who understand that based on what you've created in Poland you can create a wonderful European position because we've proven that we're capable our model has proven itself we know how to attract business owners from other countries and so if we can find partners like and we're looking for those types of partners and hypothetically we have them but of course we can always haggle a little bit about price multiples We are buying, not to buy, we want it to be effective to generate a return and jointly with our leaders, we want, we're going to give them a lot of authority to do things. So if we don't have those type of projects, you can always count on a hefty dividend. And of course, if we have this type of M&A projects, then we won't have that cash. And so the dividend will be a little lower. And so this is a question to our colleagues from Business Solutions in Asseco Business Solutions. is the biggest impact of the national inventory system? Was it exerted in Q4 2025 or will we see it in subsequent quarters? So perhaps I'll field that question because I'm in the supervisory board. And I think I might not be entirely precise. I think we can count on staff this national invoicing system. I don't think, I apologize for saying perhaps. I don't know the figures. I don't think it was the biggest quarter for us before 2025. So at the beginning of 2025, we were counting on the national invoicing system. The results were phenomenal because all of you in ABS are proud of what we've done. what Laufold did on an international basis that integration of our teams with Germany and Germany's doing very well and competing with Poland trying to catch up and of course this will take a little bit of time and so we're working strongly on Slovakia and Czech Republic because we want to have integration I believe in that strongly so I think In ABS, we will continue to deliver results through the national invoicing system, and if we talk about recurring revenue, and this is something that's being prepared, that we're going to have increase in recurring revenue. For people who might not know the Polish market, Today we have the opening of the next wave of companies that will utilize the national invoicing system called CSEF. And so those companies, there's going to be many more companies starting to use that. And so this is coming down. It's going to be applicable to medium-sized companies and smaller companies. What are the problems with implementing or adopting the share system? And what are the obstacles to implementing this program? So based... This is a little bit of gossip. Basically what I'm hearing is follows. The open-end pension funds, we can't give anything away free of charge because we're paying for the past, so we can't vote in favor. So I can embrace that. I can accept that opinion. But I'm asking these OFEs for them to think about this, because even if something is so highly regulated, that's against the development of the Polish capital market, and I'm always going to be an advocate, because had it not been for the Polish stock exchange, we would not have moved forward, because in 2024, nobody would have lended money to Adam Goral to build his fantasies, because... I wouldn't be able to prove to any bank in 2004 that I was going to be capable of doing something had it not been for the bullish stock exchange. There would be no asset goal. I'm sorry to say, I regret, that we don't have a sufficiently large number of IPS, and business owners have started to stop seeing that there's opportunities linked to being on the exchange. So, like PK would be, baby was waiting for us with the credit to when we wanted to buy back shares. Well, the times are different nowadays and we have to remember that times do change. So, of course, I understand the regulations. Well, let's change things that are illogical. My friends from the Netherlands and Canada linked to Constellation, they don't really understand what's behind us because for them the fact that we will vote this through well it's not a guarantee because we're making decisions together in fact the fact that we voted through gives greater certainty to all of us as investors so it precedes those we understand those who can't do it because of the laws but i hope that we'll have people If we looked at the resource of voting, I was nearly satisfied. We were only missing some 700,000 shares. So that's not very many. So maybe somebody won't want to come to the shareholder meeting. We're going to vote on that, and then we could vote it through. Let me tell you honestly, I don't understand why they're behaving this way. We as investors... Why don't we want for one group of Poles that have worked hard and toiled hard, for them, 95 people, for them to receive a total of 1.5% of the company. Of course, 1.5% is 200 million. Of course, it's 200 million. That's 95 people that will be the recipients. We haven't, we're not creating oligarchs. We want people to have interests aligned and be participating in the risk we have. And if we want to be active on the Polish stock exchange, if you want to have more IPOs, we have to have and utilize mechanisms that are utilized on mature stock exchange. I'm not sure if this is of importance, if it will have import. We've received rewards, like, for example, the parquet, newspaper that gave us an award for the growth we've been able to achieve in terms of our market cap and so on and so forth. But I also ask, and perhaps these words will exert an impression on somebody and they will vote this proposal through. Well, people are feeling as if we want to take care of the stock exchange. The people who are taking care of our business interests, we want more and more of these people to think about the interests of the investors for them to vie for the value of the company and the shareholder value. The next question, is it possible to think about the sales of the remaining 18% sheltering stake in Sapiens? Well, you remember that after the sale of Sapiens, this is a strange case, we lost control because We sold almost all of the shares. We hope that we have an 18% minority stake, which we hold indirectly in Sapiens. And so this is a good position to think about. how to earn, thinking about the new shareholder, what the new shareholder is doing in Sapiens, what the restructuring processes are. And we surmise that Advent, because that's the new investor, if it makes the decision in a couple years to sell Sapiens, then of course we will of course join forces with them in that sale. The next question. what will you earmark the money, the proceeds from the sale of Sapiens in terms of, because only a portion is going to the dividends. Well, we don't have the right, you know. Guy, even though he was started as a manager, we gave him shares. he's an investor he's a business owner he's an entrepreneur and please note that everything that he did was with our consent and he hasn't he's nearly made no mistakes over the last 16 years he was buying at the right prices we've all forgotten because you were perhaps you were right we were buying shares in the holding which was running a company that was slightly lost this is not the sapiens that was sold just recently this was not the magic this was not the matrix company all of that was growing and expanding not talking even forgetting about the new purchases so in terms of investing in running these type of companies he knows and is he's very cognizant of he he knows it very well and he talked that he didn't give me much time sometimes for some decisions that's true But I always had that time to make a decision. I received the materials that were needed and so on and so forth. I continue to believe in him. And we're going to pay out a very hefty dividend. I think we can officially say, so it's already announced, $200 million. And so we're also counting on a dividend. While Guy is working how to neutralize this fact, the sale of the majority stake. He has ideas. We won't talk about those ideas. This is a new topic in terms of building a position in a given area. It's still within the framework of IT. He's not running into other areas. And initially, this is something that really appeals to me in Israel. So we wish peace to that corner of the world. We hope that peace will be achieved. And major investments are in the works, infrastructural investments. And we would like to have a company, a group of companies prepared to participate in these projects because we have a very strong position there. We haven't agreed on this, but if there were no interesting targets on the marketplace to purchase, well then, we can always buy back some shares and formulas. We can increase our shareholding. We have some opportunities. I'm not saying that we as Asseco, but utilizing that money that's there. So we can have different types of ideas. Today we're not being precise on that subject, but I wanted for this decision to be a joint decision about Sapiens, because we were of the opinion. That we were coming close to a wall that we might not have better ideas and looking at advance We're learning a new approach to these type of situations. We believe strongly that advent is going to be effective and that our 18% stake will have the same value of what we sold and This is something that we wish to those people who are now managing. We wish that from the bottom of our hearts. The next question is about TSS and Constellation as your potential competitor in M&A in terms of consulting on M&A. Is that something that's beneficial to Asseco? So, Marek, he likes to argue. So, this is my area. And, of course, we're competing with TSA in Constellation and M&A. and that's not changing after the transaction but we have written down what we're going to do together and how we're going to behave if we identify a conflict of interests and so betraying you know what it looks like from the kitchen so if we identify that there is a conflict of interest that we're competing on a given project then we won't engage in these type of consultations in that case so even members of the investment committee from the TSS that would not participate in these meetings. They would not have any role to consult on those projects. And so we can do that according to our own recognition, according to our best knowledge and our experience. But this is an area where there is competition. Well, this is high business culture. Somebody might think about whether or not you needed that. But take a look. Had we not been together, We wouldn't know anything about it. We would compete with one another anyway. Today, I wouldn't preclude a situation, in fact, that we will not want to buy something, and we'll inform them of that fact, and we'll give them that target for them to think, because it's perhaps the case they might want to buy it, because this could be aligned to a constant state harbor. This is something we're going to be able to master. There are some individual examples, and We've developed, we've cultivated them. There are some cases it's hard to be surprised because TSS and Constellation are highly active players and the market of potential targets is finite in size. That universe is finite in size. So in many cases... In five cases, we had conflicts of interest. And if this is something that we can live with out of, you know, a number under 20. The next question is thematic in terms of potential targets in cybersecurity. Are there any Polish companies in that universe? And the answer is brief yes. And this is where I would stop. And the final question that we have. from remote participants, are you thinking about developing a motivation program where the strike price would be closer to the market price as opposed to, let's say, one's wanting? Well, yes. In our concept, I don't know if somebody's noticed, we have 1.5% stake. Those are shares linked to me. I've selected some 95 persons who, in my opinion, will clearly drive the future. I would like to give shares to 33,000 people. There's no person in our company, in our group, who will not drive the future. But, just as such, that we had to make some choices, and so the group consists of 95 people, and I believe that these people have earned and deserve to take a role in the future. This is one program, and in that program, these objectives, we can discuss what those objectives should be, but this is going to be for one Zloty. because we need these people as investors but there is a program 0.25 that is a program to change or it's slightly new bonus program and the bonus program this is experience that i've known from constellation for years and this is from topicos and so rafa koswowski is today coming forward to each one of our leaders and, you know, people who are heading up businesses. And the proposal is that a portion of their bonus would be paid out in shares, in equities, and they will be purchased at the market price. And so these shares would be purchased at market price. And so we'll have a program of that sort as well. I don't know the details, but Mark Landbrook, who set up Constellation, that overall concept, this is a person from the financial market, He himself, with his family. I don't want to... It was at 7% or 9% over 30 years. These were shares. These were these bonuses. That's how we were able to compile that position that were purchased at various points in time. We want... Our team doesn't have an obligation to follow that program, but we would also like to implement that program. And this will be an additional portion because the 95 people... This will give us a guarantee. If you assist me in making sure that we can vote this through at the shareholder meeting, and then we'll make sure that that other program is going to be available and that we want to remunerate people in the form of shares, of course, at the market price. So we'd like to thank you. Are there any other questions here in the room? Would anybody else like to? We don't have a question from the room, so we'll wrap up the Q&A session. And so we'd like to thank you very much. And so we've started this year very well. So it portends well. In the near future, we'll come back. But they won't take me to participate in the quarterly conferences. So I think Rafael will... Oh, okay. You can... So you can take him generally. I'd like to thank all of you, all those people who are participating remotely, the people who are here physically in attendance. And so I would like to thank you enormously because we are a very close-knit group, and we've lived many years together in a beautiful way, and you've all had a very positive contribution to the development of our capital market. You've never dismayed me. So I didn't have, you know, the 95% shrug. You've never disappointed me, and the votes were always... consistent with what I was thinking or what I came forward to propose, and so I'm very grateful because you have a real participation in what we as Asseco have achieved, this great achievement. Let me tell you, this is a commercially viable approach, and it's worthwhile to turn over that 1.5% equity stake to my 95% strong team. So let's continue vying for our position for there to be peace across the world. because then it will be very easier, much easier for us than to smile. So thank you once again.

Bye-bye.