The Asseco Group's Annual Report
for the year ended December 31, 2021
PLN 9 810 million
* Applies to proprietary software and services
The Asseco Group in 2021
non-IFRS measures (unaudited data)
Non-IFRS figures presented below have not been audited or reviewed by an independent auditor. Non-IFRS figures are not financial data in accordance with EU IFRS. Non-IFRS data are not uniformly defined or calculated by other entities, and consequently they may not be comparable to data presented by other entities, including those operating in the same sector as the Asseco Group. Such financial information should be analyzed only as additional information and not as a replacement for financial information prepared in accordance with EU IFRS. Non-IFRS data should not be assigned a higher level of significance than measures directly resulting from the Consolidated Financial Statements.
Financial and operational summary:
• Increase in the Group's revenues by 19% to PLN 14 498 million
• Increase in non-IFRS EBIT to PLN 1 783 million and in contribution to non-IFRS net profit to PLN 516 million
• Increase in the Group's sales in all sectors and business segments
• 78% of revenues obtained from sales of proprietary software and services
• Strong business diversification (geographic, sector, product)
Selected consolidated financial data for 2021 on a non-IFRS basis
In order to assess the financial position and development of the Asseco Group's business operations, it is essential to provide key financial data on a non-IFRS basis. They are complementary to the data reported under IFRS.
Non-IFRS figures including adjustments for: the cost of amortization of intangible assets recognized under the combination settlement (PPA), the costs of share-based payment transactions with employees (SBP), the costs and financial revenues resulting from the transactions of purchase and sales of companies (M&A) and tax effects associated with them.
Non-IFRS net profit for shareholders of the Parent Company
The Group's revenue structure in 2021
Revenues by sectors
Revenues by products
Banking and finance
PLN 5 056.3
Proprietary software and services
PLN 11 309.0 million
Third-party software and services PLN 1 493.8
Hardware and infrastructure
PLN 1 695.3
Dear Ladies and Gentlemen,
When a year ago I was writing the opening letter of the Management Board's report on operations of Asseco Poland and the Asseco Group, I had high hopes that 2021 would bring a happy end to the pandemic period and a quick return to harmonious operation for societies and economies. The reality turned out to be more complex - COVID has not disappeared at all and the development strategies of companies in many cases have had to undergo significant changes. In fact, for the greater part of the previous year the vast majority of organizations operated in a remote or hybrid mode. The pandemic has also taken its tragic toll and taken away too many wonderful people. This has clearly affected Poland and other countries struggling with the pandemic. In these circumstances, I am extremely proud of the entire Asseco team, which demonstrated great commitment, flexibility, ability to respond to customer needs and adapted to rapidly changing market requirements. This translated into the fact that not only did we operate as efficiently as before, but we were also able to grow our Group and improve our financial performance.
For another year in a row we achieved a record level of revenues, PLN 14.5 billion, and the share of our foreign companies in these revenues reached 89%. At the same time, the Group's operating profit increased to PLN 1.5 billion. Sales of proprietary products and IT services increased by 17% year on year and reached PLN 11.3 billion. We focused on how best to support clients in the face of the pandemic. We also took advantage of opportunities related to the acceleration of digitization processes in companies and institutions. Therefore, we recorded revenue growth in all sectors of our business.
In the general business sector, there were noticeable increases in sales of ERP systems by the Asseco Enterprise Solutions Group, business solutions and services provided by the Israeli companies Matrix IT and Magic Software. It is also worth mentioning that we continued cooperation with the Polsat Plus Group. All of this helped increase revenues by 24% versus the 2020 levels. We are also pleased with strong results achieved in the banking and finance sector, where our revenues surged by 15% year on year, owing primarily to dynamic growth of Sapiens International, Matrix IT and Magic Software, as well as thanks to the Asseco South Eastern Europe Group reinforcing its market position in the areas of payments, banking and dedicated solutions. In turn, Asseco Poland, being the largest contributor to the Polish segment, continued to work with its existing clients, among others, under long-term maintenance agreements that account for approx. 40% of the area's revenues. Asseco Poland conducted sales activities in order to gain new projects both in Poland and abroad. We also observed double-digit growth in the public institutions sector. This result is a consequence of, among others, projects implemented in Poland for the Social Insurance Institution (ZUS), the Agency for Restructuring and Modernization of Agriculture (AriMR), the Ministries of Finance and Justice, as well as in the areas of healthcare and Smart City. These strong results are also supported by the operations of Matrix IT and Magic Software, which execute new long-term contracts in Israel.
In the previous year, we strengthened our position in the areas of cyber security and cloud, which have taken on particular importance after 2020. Hence, the decision to establish the National Medical Cloud Operator - Health Cloud (Krajowy Operator Chmury Medycznej - Chmura dla zdrowia) by Asseco Poland. Its goal is to digitize healthcare and enable medical units to provide e-Services with the highest security standards. The next step was the establishment of Asseco Cloud, which supports clients in the design, implementation and operation of cloud solutions.
In 2022, our goal will invariably remain to maintain Asseco's leading position in the banking, insurance, energy, telecommunications, healthcare and government segments. We continue to focus on further development in the areaof our proprietary products and services. In addition to sector solutions, we will strengthen our position in ERP, payments and trust services. We will continue to invest in the development of cloud products and cyber security services. I also strongly believe in automation, robotics and artificial intelligence, because I am convinced that in the long run they will bring a lot of good, among others in the health care system, administration, services or manufacturing sector.
We will continue to expand not only organically but also through acquisitions - we are interested in companies with their proprietary products, stable financial standing, operating in sectors similar to Asseco, whose owners would like to remain in the organization after the acquisition and develop it together with us. In 2021 alone, we invested in as many as 18 companies operating in the Israeli, European and American markets.
When thinking about the development prospects for 2022, it is impossible not to mention the war in Ukraine, the long-term effects of which are difficult to predict today. Already its first days showed how important it is to take care of the country's cyber security - maintaining the continuity of key systems and critical infrastructure as well as effective defense against disinformation - and how important IT sovereignty is, which is now a crucial element of the raison d'etre. Therefore, states should choose reliable, proven companies for IT projects, ones that guarantee the highest level of data and process security.
Above all, however, the situation in Ukraine is a huge tragedy in humanitarian terms, which is why we have become heavily involved in supporting refugees. We have already donated nearly PLN 2.5 million for this purpose, among others for the accommodation of the most needy people and for the Polsat Foundation, which helps Ukrainian children. Also the Asseco employees offered their help to our neighbors in these very difficult moments - we support these activities organizationally, formally and financially.
On behalf of myself and the entire Management Board, I would like to thank our customers for their trust. I would like to thank you, dear Shareholders, for believing in us and sharing our vision of Asseco's development. I would also like to thank all our Employees who build Asseco every day with the highest commitment, both in business and, above all, human, terms. The past few years have shown how important are not just hard skills, but also all those qualities that make you such a great Team. As a result, we are once again achieving great results in these turbulent times, and I am confident about our future.
President of the Management Board of Asseco Poland