Asseco Poland Aktie

Good morning ladies and gentlemen. My name is Artur Wiza on behalf of the management team of Asseco Poland. I'm going to run today's meeting, which is about the results of GSF Group for Q1 2026. We're joined by the Vice President and CFO of the group, as a Marek Panek has a component during the first portion of the presentation, we present the operations and the financial results of our group for Q1 2026. In the second part of our meeting. As usual, we'll try to field your questions, which you're going to be able to send to us to a the chat function. that transmission itself, and we'll begin with the presentation of the operations, and I'd like to ask Marek Panek to kick off.

Good afternoon, ladies and gentlemen. I'd like to welcome you very cordially. I have to say that after our most recent conference receive some core -- we received some advice that we weren't smiling too much even though the results were outstanding. So I'm going to try to change that a little bit because we have a large number of reasons to be satisfied. -- we've kicked off this year very well. And the best proof of that are the results that we published yesterday.

If you take a look at Slide #2. This is where we want to kick off today's presentation, you can see the fundamental parameters of our P&L. So you see our revenue, which is nearly PLN 4.4 billion which is up by 9% over last year in the corresponding period. Our EBIT operating profit is PLN 513 million, and our net profit is PLN 228 million. And as you will have noted, if you look at the pace of growth of EBITDA and net earnings, you can see why we're counting this quarter so highly, which we are now summing up.

And so as a matter of our ordinary course of business. I would like to sum up our operations in individual segments as well as geographies where Asseco is active. And I'll give the floor to Carolina, and then she'll say more about the numbers themselves.

So if we look at the split of the revenue by segments and geographies. You can see that across the board, we have decent growth starting on the left. You see SacoPoland growing very fast the fastest. All of the companies operating in Poland under the Seco brand, we have 12% top line growth. above. We've broken through the PLN 600 million watermark then we have a Seco International, which is PLN 1.19 million -- we have 7% top line growth. And then we have Formula Systems, which is the Israel portion of the company, and we have more than PLN 2.6 billion. So we have nearly 10% growth in the top line.

Then I'll give you a short commentary. You would recall not too long ago, we had the company's opens that left the Formula Systems Group, and that changed the proportions in terms of the contribution to the top line and the individual geographic segments. Up until now, formula represented 66%, 67% of the overall growth. Today, it's around 60% and Asseco International is 26%, and the remaining 14% are the Polish company's contribution. Perhaps you would recall that this used to be around 11%, 12%.

And -- so the contribution today is a little bit higher. Now we can look at the revenue by product groups. Let's begin with the bar graph, and you see basically the group of our products. And if we stop at the top, -- these are the most important core products -- this is our proprietary software. So solutions for the finance industry then solutions for public institutions as well as ERP solutions. So we have 8%, 18% and 13% growth -- so this means that we are very related with these results.

The other segments or other IT solutions. I've mentioned several times what this means. This is for the telecom industry as well as solutions, cross-sector solutions, which is difficult to a single sector, and so they can be sold anywhere. And then we have infrastructure and other. And here, we have a flat result. And this is the lowest margin business. Of course, we're continuing that, but we're focusing on those aspects that are linked to our proprietary solutions.

Then you have the solutions for public institutions, they have the biggest portion of our revenue because they represent some 26%, 22% is the financial sector. And very close to that, we have 23%. That's the infrastructure portion, which I discussed just a moment ago. We're very pleased with the fact that we have a high level of diversification in our business so in the current business environment, that's very important. So the 10% -- 10 top customers represent 13% and the biggest customer of the group represents 2% of the entirety of revenues.

We don't have a situation in which we would be dependent on any individual or group of a small group of customers. So now succinctly, let me say a few words about what's happening in the most important product segments. We'll start with solutions for finance sector. Here, we have PLN 970-odd million in terms of revenue across the group. This is 8% growth with respect to last year. And you can see what the contribution of the individual geographic segments is what's the growth rate.

And you can see that we have a leading the pack because this is nearly 20% more than last year. we're not surprised by that because this is a segment of a portion of our business, which we believe to be a very mature portion of our business. We have a recurring stream A large recurring stream have in terms of maintenance and the development being done by our customers, and we have new projects being added.

Maybe they're not any spectacular large new banks involved that would join our portfolio of customers. But on that wide base of clients, we're able to generate revenue of the PLN 180 million. And we are, at the same time, able to generate dynamic growth. In this sector in Poland, we're talking about the banking sector because we here are the unchallenged, uncontested leader in the banking sector, we are -- we're running operations for the largest banking sector companies here in Poland as well as the cooperative sector.

And we have been promoting cloud-based solutions, more and more banks are participating in our initiative in terms of having a joint IT platform where we're offering full outsourcing of solutions for banking. We're very pleased to see that the queue of banks is getting longer for that as we have a large number of projects. If we think about Asseco International, you can see this is the biggest contributor to revenue. It's more than PLN 400 million, so a 5% top line growth.

Here, we would emphasize that core banking systems. And so in the Balkans, is moving forward very nicely. And then we have Central Europe, we have Slovakia in Czech Republic, where we've been capable, able to attract new customers in this segment. And then we have a formula, which is nearly 400 minutes. So after Sapiens Swiss sold and it had always been the leader. But after the SalosAppiens, it's no longer the leader. It has always been the biggest contributor of revenue. Now it's nearly PLN 390 million in revenue. And so we have a similar pace of growth Asseco international at 5%.

And the major player in terms of formula in the financial sector is Matrix. We should remember that it's a combined merged company of Matrix and Magic.

And then we have solutions for public institutions. As I mentioned previously, this is our largest area of activity nearly PLN 1.15 billion in revenue, we have very dynamic growth some 18% growth across the group. And this is something that exceptionally pleases us. In Poland, we have PLN 330 million. And so we have a 16% growth. You should remember that here, we're, again, the uncontested leader in terms of projects for the public sector. We have a large group of large-scale customers, including Zu, social security and institution, the National Health and a few other customers.

I could mentioned, we're very pleased to see that more and more projects we're doing for relatively new customers like the Ministry of Justice, the Ministry of Finance. We're cooperating with them for several years now. And we have proven ourselves as a reliable partner. We're getting more and more projects. And so this is something that we related with.

Let's not forget that in the public sector, -- we also have which healthcare where we're very active. And today, you can say that we're being inundated with projects from the national recovery plan -- and so we're at the phase of being dynamically signing contracts. We're signing contracts dynamically because the pace is a world win pace.

If we talk about hospitals alone we can say the beneficiaries of this program -- and this is more than 150 hospitals. We're signing contracts with them in a relatively short period of time. And now we have to deliver and implement solutions for them. You cannot yet see that in the figures for Q1. I think we'll see that in Q2, partially in Q3 of this year. But today, that is something that is actually making our colleagues somewhat make them lose sleep.

And so we have international, you can see that PLN 140 million in revenue. And this is a very dynamic growth, pace of growth at 29%. What do we owe this to. This is because of the Slovakian and Czech markets where we've been observing the rebuilding of public projects. You should remember that for a certain period of time, we had talked about stagnation in some of these countries linked to certain perturbances or disturbances of a geopolitical nature, everything has stabilized. We have new projects.

We are running projects that we had started. We were maintaining them. We had implemented them, and this is all being brought together with very robust results in this sector. And at the end of the day, we have formula systems. And here, this is the major contributor with more than PLN 680 million in top line with a very strong and robust pace of growth at 18%.

And then the last sector that I want to speak to, these are ERP solutions. You can see that we have more than PLN 450 million in revenue. The pace of growth is 13% across the group. As you've noted, we don't have a second in this list for the reasons that I mentioned at the most recent conference, we had practically one company operating in that at -- and this is a company that's operating in the Polish market, but in the most recent quarter of the last year, it was put into Enterprise Solutions, a second, which is consolidated through the Asseco International segment.

And as a result, we can say that in Poland, we no longer have any ERP solutions. And that's why we don't have that line here. Hence, we have Asseco International segment with more than PLN 285 million with 13% pace of growth, and we have Formula Systems with more than PLN 173 million revenue with the pace of growth in excess of 15%.

So we have the enterprise solutions as the main player in this segment. this is a sec business solutions from Poland, along with the entire group of Asseco Solutions, which is operating in Slovakia, Germany, Czech Republic. And we're also pleased that despite the difficult situation in some of the stagnation in Germany. We've been capable of delivering a rapid pace of top line growth and we're the leader here is Asseco Business Solutions, where we've had an increase of nearly 20% in top line for ERP solutions.

And here, we owe our success to a project called the large-scale , which is a new invoicing system for the government. And so that was in Q1 of this year. And so formula, we have our own solutions and Matrix. Maybe it's a small system, but it's a proprietary solution. We have some solutions with third parties. And then we have the HR systems and the. So HR systems, which we treat as ERP solutions, and we're pleased that, that branch is also developing quite nicely.

And now in terms of our acquisitions, in the first quarter of this year, we had 4 companies that were added to our model. This is -- they weren't large spectacular acquisitions. But step by step, this is how we're working. We're adding newer and newer companies that are delivering what we believe to be interesting products or competencies that we're able to supplement our capabilities.

And so the formula did this. And then a second did 1 of them. And on the right side, you can see 2 acquisitions, which were completed in Q2 after the balance sheet, but we mentioned them in our report, and that's why you can see them here on the slide. And we do not cease these type of operations. So we are doing screening. We're talking with new candidates, new companies. And so I believe that as a matter of traditional business will have over the year, we should have a number of companies in excess of 10 that would join the company. So I'll give the floor now to Carolina.

Financial information, molecule through revenues look at the program and billion, almost revenues from our services PLN 3.4 million, EBITDA PLN 712 million, and PLN 575 million, the most presented a [indiscernible] and net profit amount to PLN 224 million. you can see that the dynamics of net profit is much higher quarter-quarter reconcile last year, the revenues amounted to slightly over PLN 4 billion and PLN 252 million at companies, organization the most previously, this was organic growth and PLN 45 million was from acquisitoins, [indiscernible] PLN 92 million was organic contribution of PLN 14 million came from acquisitions and PLN 5 million from exchange rates.

Please note that the acquisitions which we had in the recent 12 months had a very decent profitability. As for net profit, we show you the quarter-to-quarter bridge, but also the breakdown will show exactly the delta origin from which get the change comes. Asseco Poland contributes the most. That is the holding company or other companies that we have in Poland.

Negative delta on formula stems from the fact that we show here the notation on IFRS and this shortage of contribution from Sapiens. hence, this negative data and Asseco International comes on top of that plus PLN 3 million adjustments between segments. We are particularly happy about the fact that at all levels of profit, we saw an improvement in profitability. We saw a 10% growth in software and own services quarter-to-quarter and 1.5 percentage points improvement on EBITDA and on IFRS and 1.7% on a bid on non-IFRS.

We did not have any particular impact of one-off events. So we can say that these were basically our operating results. When discussing companies, I will tell more about sources of those numbers. It is also worth noting that at least 2 groups in 2 segments in our group had significant amounts of cash in the first quarter. This cash was efficiently allocated.

And in fact, it was the delta on interest almost PLN 36 million contributed among others to such a good net profit, both in Asseco Poland and in formula, those surpluses were recorded. Therefore, we had a significant income from interest, which offset debt servicing costs. Situation was reversed on currency trend -- we see on net profit for shareholders of the holding company.

It is also worth noting that we managed to reduce the efficient tax rate. This effective tax rate came mainly from Asseco Poland. And it resulted from a battle that we fought with regard to gaining the possibility to recognizing some -- for a long time, we had negative interpretations of tax authorities that regard now after quite a while the interpretation changed, which allows us to make adjustments in retrospect.

And this situation is going to stay with us on a regular basis. So we can see that there will be a slight decrease of the effect tax rate for a loss in associated units that came from one-off transactions. And on the level of cooperation that was the only one-off that we see in those results. That was the effect of a revaluation of TSG stake they had their IPO and the effect amounted to about PLN 16 million in contribution.

That is actually the only one-off, which offsets the effect of the shortage coming from Sapiens in first quarter 2026. The fact that we had spectacularly good dynamics on net profit is linked to the fact that the greatest contribution to growth came from Polish segment, we consumed that almost 100%. There was only a very small leakage to foreign shareholders.

From this Polish segment, we had a very good operating results plus this positive result that translated fully into our net profit. We illustrate here what I have just talked about. A second holding company improvement of profitability. Operating profit almost PLN 170 million compared to PLN 86 million for the same period last year and doubling on net profit contribution.

As for other companies in Poland, a very good quarter was recorded by Asseco systems. And this good quarter to a large extent, came from services in connection with this invoicing systems reforms, we managed to increase the sales of our products in connection with electronic seal, hence or among others, while we had such good results.

Also on Formula Systems, again, an excellent quarter and matrix. Let me remind you that we had a merger in the first quarter and it was completed. Now the companies are being transformed. And I think the effects of the merger will be visible in the upcoming quarters. As for Asseco International, we are particularly happy about the fact that the Central European market rebounded. And the main drivers were ERPs in Asseco Business Solutions, which is being consolidated in this line and also very good results of ERP company in Germany.

Also, as Marek said, public in the Czech Republic and Slovakia, here, we managed to improve profitability or change the conditions of providing certain services and the contracts where we recorded losses, all those contracts expired and now they entered the maintenance stage. That is why we saw an improvement in the results in Central Europe.

In South Eastern Europe, we have our ace here and particularly good results in core banking and payment. Cash developed in the last 12 months, that is 112%, which is satisfactory in a circle over 119 then 118 and formula 104. If we look at cash in the first quarter, the indicators are worse. And I talked about it during our annual conference, when I said that we had a spectacularly good fourth quarter in cash result.

The fact that the first quarter was worse is linked to those prepayments being made in the fourth quarter last year. So they pushed up the cash flow in the fourth quarter. So we see the same missing in the first one. Obviously, you cannot have a conversion of the result exceeding 100% all the time. I noticed there was also a question about cash flow I think I owe you an explanation on that. Formula Systems had the worst cash flow in the first quarter, but it is nothing to worry about because operating cash flow was worse since Matrix IT had a major factoring transaction on its receivables.

Hence, the cash flow was worse there is no reason for concern here. Also, there were questions about negative operating cash flow overall at the group level. This operating cash flow is negative because we presented in our operating results. Tax that was paid for Sapiens transaction. This tax was paid in the first quarter. And that means that as regards to P&L, the transaction of Sapien sale was fully disclosed -- discontinued activity and the annual results for 2025.

However, we should bear in mind that certain payables will have to be paid this year. So for example, tax was paid previously, and we still have to pay bonuses linked to this transaction. So in cash flow, we will consistently throughout this year, present the development. I think in the second quarter, maybe in the third quarter, we will continue show expenditures related to this transaction, and we will consistently present this in the line of discontinued business.

As for balance sheet, we have very stable liquidity situation. At the end of the first quarter, net cash, PLN 2.9 billion essentially in all segments, relatively high values. And that translated into the result on interest. Now let me remind you that the formula segment, we obtained money from sales of Sapiens holding hands, the certain excessive liquidity.

Now dividend is to be paid out. On the third of June, we should receive in Asseco Poland, the money coming from this first tranche of dividend payment related to Sapiens sales. And then Asseco Poland, at the end of Q1, -- we also had cash obtained from sale of own shares and that was distributed as dividend that has already been paid out.

As for proportionate presentation, we have 2 slides showing organic results. proportionately, delta plus PLN 128 million, acquisitions plus PLN 19 million on operating profit, PLN 63 million and PLN 6 million from acquisitions, respectively. And we see the same thing that I discussed earlier, namely, when the major contributor to improvement of profitability Asseco Poland, in proportionate presentation, you can see that even more clearly greater dynamics quarter-to-quarter in growth even a greater improvement in profitability, 2.6 percentage points EBITDA non-IFRS, almost 3 percentage points on operating profit.

And proportionately cash, very similar 117% on the group level, 119% from Asseco Poland, basically the same number in Asseco International, 99%; and in Formula Systems 91%. There was also a question about it, PLN 1.4 billion is the cash situation at the end of this quarter in this proportionate presentation. Out of that PLN 160 million from Asseco Poland, PLN 450 million from international and slightly over [indiscernible] coverage for formula.

Portfolio orders here, I also have good news, 14% growth in backlog compared to the same period last year. The most dynamic growth of backlog in Asseco Poland -- and that dynamic comes from public segment, first of all, then secondly, from banking and finance and slightly negative dynamics in corporate segment in Asseco Poland, 7% of Asseco International and 15% Formula Systems.

And the same proportionate presentation of backlog on your request, 13% at the group level, 20% in Poland, 17% in Formula and 6% in Asseco International. That's all for me. Thank you very much.

Thank you very much,Karolina. Thank you very much, Marek. And so the satisfaction and the positive assessment of our results is visible, of course, in the questions. We have a large number of questions. We'll move on to fielding or giving responses to those questions. Let me remind you that we have questions from investors in Poland as well as on the English language. And so we'll pull everything into a single bucket of questions and we'll try to field or respond to all of your questions. Question number one, congrats.

Data proportional basis, is it correct that you built and only the software products that run Poland's national pension platform, National Property Registry court case management for Banco is and architecture around utility billing. You won contracts this quarter in these areas. Can you give us a sense of how you want these contracts?

And also conversely, or not it would be for these entities to take out your software and replace it with something else?

So we respond in Polish. So I'll kick off, and then Marek will add something. How we won these contracts? Well, in fact, in Q1 last year, we were able to sign several contracts primarily -- with respect to the public institutions, and in fact, maybe you can clarify. In most cases, these are tenders that are under the public procurement law, these are public tenders.

And as a result, it seems to me that we have a lot of experience. We're highly seasoned in terms of how we should present price offers in these tenders. We are capable -- very capable of calculating risk, and this gives us a competitive edge experience we have and the understanding of customers' needs. But in every tender, there is competition, of course. And this is something that we should reckon with that the competition does exist.

Most frequently, these tenders are organized every 4 years. And of course, there are some tenders that are held earlier because the supplier selection procedure takes some time. And it does occur. A portion of the tender is the subject matter of discussion before the National appeals chamber. And this is an entity which is somehow responsible for, let's say, educating on doubts about the tender procedures and final decisions in terms of what decisions were made by the customer.

The bottom line is that nothing is given to us forever. And this is something we should remember, this is not our software. Usually, in these tenders, it's the case that at the end of the day, we turn over copyrights to the customer. And that also means that there is a field or there's some room for somebody else would end up providing maintenance services. It does occur that we have certain contracts where the coffee break is not, let's say, seeded or conveyed.

But in the vast majority of cases, -- this is not a matter of licensing, but something we call modification services realistically, we improve, we better, we improve, we enhance. We augment software that's owned by the customer. And if you want me to add, I'll happily add something. Perhaps I could add something of a soft nature in respect to what Karolina said, please remember, if you look at the list of our largest customers in the public sector, usually, these are institutions that have been working with us for many, many years.

And -- as Karolina mentioned, it's not the case that we have to be there because we have tenders. The source codes are owned or held by the customers, and they some -- in theory, some other company could continue the development process. But the fact of the matter is that we have not, of course, broken their trust. We've not -- we enjoy the trust, extensive trust to these customers, and they very much appreciate that.

And we should admit that in many cases, we've heard very nice words from the customer side that we've done something well that better times that was impossible. The law wasn't catching up. There were new requirements legislated or enacted. And so we were able to deliver on a timely basis. And I think this is 1 of the reasons why we went because the customers want to stick with us because we haven't violated the trust or breached anything in the most time urgent cases.

So sometimes the recognitions are exceptional and there might be a non, let's say, public procurement trip, public procurement long trip. And this was the procedure that was the case during the pandemic. So we were the supplier of first stores because of our reputation and the lengthy relationship we had with customers that meant the customer trusted us and those trying times that we are able to, let's say, deliver those contracts. Well, that's a very good response. That's going to the next question.

Flow from operations shows growth of 43% in a free cash flow from continuing activities and 33% growth in cash flow from operations from continuing business, yet consolidated free cash flow and cash flow from operations shows a decline. Why are the proportional cash flow growth so much better than consolidated? What is about the parts that you don't own that don't seem to be as good and does not and thus that matter to shareholders much or not?

Okay. is at the pro Well, this is what I was trying to address during the course of my presentation. If we talk about discontinued operations and the tax paid by formula as a result of the transaction with Sapiens in Q1. That means there was a negative cash flow in Formula Systems. So if we look at the consolidated data on a proportional basis, there's only a small fragment, let's say, 25% that was in the professional data.

But in fact, if we look at the full consolidated point, it's negative cash flow. That's one reason. The second reason I mentioned that during the course of my presentation that the formula cash flow in the group -- Formula Group Well, the conversion was the lowest in terms of the operating segments within the group. And this was the result primarily of the fact that the Matrix IT company signed a contract -- a factoring contract for a portion of its receivables. We're talking about talking about PLN 200 million, and that money was credited in Q4 -- so this is not something that we should be worried about. This is something that happens on a regular basis.

But basically, what was booked in Q4 means that it wasn't booked in Q1. That's the difference. Thank you very much.

The breakdown of the proportional data net cash position. It looks like debt of PLN 402.5 million and a cash of PLN 2.846 million is that right? So would be the net cash position, not included leases be about PLN 2.4 billion, taking out some PLN 1 billion for the recent dividends that you have paid -- does this then sounds correct, roughly PLN 1.4 billion in net cash also net of these dividends.

Boca, that's right. I would say that's right. That would be the simplest response. But let me draw your attention to 1 detail, 1 specific matter. If we look at the IFRS standards, if we have deposits in excess of 3 months, then the business are not treated as cash, but they're treated in our balance sheet. -- as other financial assets and roughly PLN 660 million.

As of 31 March, of cash, which was in Asseco Poland, and that's shown in other financial assets. I just wanted to give you that additional detail. But generally speaking, would say that your hypothesis on this question was correct. So we're pleased that we have so many questions from abroad. This shows the interest and we can see how our international investors are asking questions quickly as they learn our results. Next question.

The data proportional EBITDA is having a problem. -- land intra-territernational other IT for MOLAInfra and Formula E. Meanwhile, runs 95% of the EBITDA looks very good. Could you give us a sense of challenges with those 6 segments that are having problems and maybe plans for those segments. They look very different than the rest of the business?

That is true. The hypothesis and the question is quite correct, is sound. It's a totally different business from the software business. So let me start by with the Polish segment, Realistically, we have technical allocations. These are small amounts. So I really wouldn't focus any intention there because we're talking about minor amounts of money.

But if we look at the Asseco International segment, here, in the infrastructure. We have 2 large entities contributors where things were was the first 1 is the company, Asseco Spain. This is a company that has a typical operations for Asseco and basically their handling hardware. And we made -- we actually looked at the -- we wrote down a portion of the inventory some PLN 8 million. So realistically, this contributed to the fact that we have seemed a problem in the question.

So the second cause is the Dedicated Solutions segment from the Asseco Group. Here, we had softer results year-on-year. Some of the projects were not recovered that took place in previous years. So there was an organic backtrack. Now the next question.

Your margin expanded, and now in some cases, margins are incredibly high. appearing as high as over 30%, congrats. Can you give us a sense of how you have been able to do this and whether this is a one-off or the sign of some kind of structural change?

These figures in the question. So anybody in excess 30%, this is an EBITDA non-IFRS B2 result. We -- we rarely use that for profitability as a proper metric. So we look at the profitability of individual projects, we think about the fourth margin, which is EBIT because we believe that this is the best metric of whether or not a contract is profitable, yes or no.

So factually, in this quarter, in some places, if we think about profitability. We had some momentum. That's what I call it. As a group, we're highly diversified. But in Q1, -- this was a distinct period. If we look at infrastructure, which is small compared to the rest of the group, -- we can say that we had a very good moment in a business sense across the board with the exception of infrastructure. Here, we should point out that the improvement in profitability. To some extent, this is a matter of a structural improvement in profitability.

Here, we've been talking about our view when we talk about the effectiveness of our work, so working productivity, utilization of resources. This is the outcome of work that's been done over many months and perhaps over the last 2 years, and so we have talked a lot about gaining or improving efficiency.

The second factor is this momentum that I was talking about is also reflected on the top line side. So we have certain contracts which are nonrecurring to some extent. And I would even say they're above average, their profitability is above average. Evidently, we have a large number of contracts in our group, and it might happen. And of course, we're endeavoring to that to have as many of these contracts as possible.

But as we look at what we have today in the backlog, I would say the following. What we've been able to improve fundamentally on the cost side, this is a result that can be done again. On the revenue side, this is not necessarily the case, especially if we're talking about contracts where the distribution of revenue largely depends on the customer decision.

Let me give you an example. We have a contract where we have a fixed number of people rendering services under a framework agreement for the development of software. And the customer has valued the price, the services under that contract that we're doing in the first phase of the project. So analysis, feasibility studies and things of that nature, and the first stage of implementation have much better prices than at the final stage.

So from our point of view, looking at this as a business, it's a secondary nature because the same people are working on very similar things. But that's how the customer has priced things. That's the valuation the customer has attached to that, and that's how it's reflected in the financial statements. And so this distribution of revenue is follows from that. And so we talked about some sort of regular happening that Q4 is the best quarter for us. And frequently, that is, in fact, true.

But recently, we've seen some changes, some modifications in the first 2 quarters of the year. in our group, especially in Poland, especially in the public institution segment are exceptionally good.

And another question about the formula assistance.

Formula System, which implies that you control it. You are the largest shareholder. Although many formula systems have increasing EBITDA margins. Can you give us a sense of extent to which you are able to control formula and influence them in the ways to improve margins. which are much lower than the rest of your segments. Please give us the sense of the extent to which you are able to influence their core business to improve margins and whether they could get as high as your other businesses.

If you aren't able to control these dynamics, it may be easier if you didn't consolidate the financial statement because it is quite confusing.

Yes indeed the case is that the average profitability of the formula system much lower than of the other 2 systems. And that follows from the fact that -- well, I will focus on Matrix IT because that's a large company. Matrix operates under completely different business models. This business model consists in matrix providing retirement material services in Poland. If we provide services to the public segment we try to avoid term and material contracts. And for sure, we do not participate in any procurement procedures for such solutions.

And the specific nature of Matrix operations as such, they prefer to have time and material-based settlements. And if we talk about time and material segments, the risks for the contract are lower and the profitability of the contracts is automatically also much lower. If I were to answer this question, I would say that when we have influence on the strategic directions of development for formula, but we control formula by -- for our management Board members being directors on the Board of Formula assistants. However, we do not go down to the level of individual contracts nor do we analyze operations MatrixIT this way.

Of course, we can try to talk about how profitability could be improved. And it seems that the time has come for us to talk about it, but as you know, the situation in Israel is changing quite dynamically and that is likely to continue for a while. We are talking about a huge company with an extensive infrastructure. So maybe, Marek, you would like to add something to this?

No, I think you have exhausted the topic and we have a long list of other questions. There was a question of AI assistant. Yes, another question results.

Could you please share information on the collaboration between Texas as a coolant so far. Could you share examples of influence and the best practices that you are currently working on the shortcomings identified in the businesses?

Collaboration between Asseco Poland and TSS is going on very well. In fact, we are getting to know each other. We are talking about 2 very large structures that has to be borne in mind. What we have done in Asseco Group was to take a certain sample of companies, entities where we thought there was a lot to do. And on the occasion of doing those things and using the opportunity of the transformation also linked to the succession. We wanted to discuss the possibilities for our businesses to improve our foundations of how we operate.

So we looked at what constellation, we looked at what Constellation does and what CSL does with their entities. Of course, we do not blindly follow all solutions that are applied in TSS business. Please bear in mind that Asseco Group is a group that has its corporate culture. And secondly, even if you look at Q1 results, were spectacularly good results came from the holding company. In fact, that inspiration was not there yet. We know how to do this business.

We do not want to say that we are the best in the world, but we do plan, we want to be the best in the world, and we are more than willing to accept an inspiration. At the same time, you want to be extremely cautious. So as not to spoil what today functions very well in the Asseco Group. And if we take the perspective of finance on all of that. I would say that there are places which are very well measured. Things that allow us to monitor a variety of indicators. Some are the indicators that TSS is looking at right now.

I wouldn't like to get rid of what we have right now. I wouldn't like to spoil what is functional today. And at the same time, we can draw on an inspiration coming from TSS. And for so there are places where we still need to do some work. And the further we go from the holding company the more of such work must be done because these were companies acquired at a certain point with their pre-existing corporate cultures and all this transformation of the turning point in the history of our group, which is still to come on the occasion of succession, a perfect opportunity to rethink what we have, what is functioning well, what does not work so well. And any inspirations are more than welcome here. Marek, would you like to say something about M&As?

Yes, I will be willing to add some insights on M&A because here, we did a certain exercise. Namely, we had a very close look at how TSS goes about its M&A transactions, what mechanisms they rely on, what they pay attention to. And that was a valuable lesson. I think we took advantage of it to rebuild our own processes, and we paid particular attention to the things that we found very sensible there and what TSS does. However, we are very cautious in our approach to M&A topic. So we in this consideration model when we would like to have partners and we had 100% of shares bought we had majority stakes.

And there are a few significant differences between us and TSS. Nevertheless, I'm happy because we were indeed able to learn some lessons from them. And whatever we found sensible we implemented in our model. And also, it is no secret that this area of M&A is the area where by definition, we wanted to collaborate.

So representatives of TSS also on the investment committee at the Asseco Group level. And together, we consider potential M&A projects. There is 1 more topic that TSS brought and it comes up in the following question.

Could you please share the status on the resolution that was down voted in the first general meeting on the bonus scheme?

Yes, that is a topic on which we are still working. It is relevant to us. That is exactly what you asked about, the experience with -- and TS promoted that very heavily. It also came up with this topic in conversations with other shareholders. We wanted to propose a bonus program for our managers, it was rejected by minimum majority of votes, we prepare feedback. So we will present another proposal. We are now finalizing work on this.

But for sure, we will first talk to shareholders to convince them, to bring them around to our way of thinking. And also, Adam Coral appealed to the shareholders for doing that before he left. And he stressed this was very important in the succession program. We are talking about not just bonuses, but the retention program for key managers, whom we would like to support in this difficult transition period. Succession is not just a change of a single individual. In fact, the company is undergoing a major change, which is to prepare us for further development under different circumstances also taking into account the experiences Marek and Karolina have just described. For

sure, we'll return to you we will also ask our shareholders for assistance in obtaining acceptance of this program. Would you like to add anything? on this topic, not. So we move to the next one.

Congratulations on the spectacular results of Asseco Poland. You report you mentioned in a few places about -- you mentioned integration of for medical companies and ABS companies. What's the first quarter 2026, the strongest quarter of this year as a consequence of involvement in those projects. And to what extent this is a good reference point for the upcoming period?

That's a difficult question. Indeed, this quarter was spectacular. So -- and it is a certain momentum, but the nature of momentum is such that at a certain point, it comes to an end. However, I do hope very much that the diversification that we have in the group. Well, help us to make sure that the things that happened in the first quarter and will not happen later, like recurring revenues. A large part of what we have in ADS is an operational one-off different thing will occur in ABS.

As a result of several invoicing system resulted in a new single product being built, which should generate recurring revenues. And in brief. Not everything is recurring. We won't be able to repeat the things that we had in Q1, but a large portion of that is there. And health, this element of recovery program, which is a major growth factor. This was not very well visible in Q1 results. Probably, it will be noticeable in Q2 results. Yet I wouldn't like to give you any forecast.

We do have ambitions here, but we're sure that will be a major challenge to get spectacular results repeated.

Any idea what Asseco Poland considers as the realistic adjusted EBITDA margin target after implementing all TSS best practices?

We do not have such number. We will not have such target. And I think we do not intend to have one. Our business is very diversified. Without TSS practices, best practices of TSS are applicable, and they are interesting examples of how we can fundamentally structurally improve the business especially where we have product businesses. Please remember, however, that a large portion of our business is project business.

And here, of course, without, of course, the best practices on how to cash receivables or how to organize work around professional services for sure that will come handy. Nevertheless, we cannot say keeping how complex complicated this product mechanics is, how dependent it is on the market in which we operate and so on and so forth. It would be irresponsible if I gave you any single number and said that this is what we are aiming at.

We are striving to improve quarter-by-quarter. And -- now we are doing quite well, I think. There is a lot of inspiration coming from the resources, but let me reiterate. On the one hand, this inspiration comes. But on the other hand, we have our ambition to look at ourselves from a slightly new angle. And we want to improve the things that we believe is our expertise and such an advantage.

So if we look at the results of last year, what is seen very clearly that the Asseco Group is able to very decently last year, that was 10% grow organically. So on the 1 hand, we want draw on those good practices, and we want to be inspired by them in the M&A process. But at the same time, we want to keep -- maintain our focus on organic growth. And something that is our know-how is another area on which we want to focus.

We intend to operate our way within our corporate culture in order to come up with ways of improving the results. Another question.

Current plan for excess cash flow is deployed by the year-end. Specifically, would the company expect to return that cash to shareholders through the dividend or other capital returns retain it in the balance sheet for the future deployment? More broadly, how does TSS think about capital returns versus in reinvestments when access cannot be deployed within the current year?

I can say that, honestly, I don't really understand the question. I don't really understand this question is about TSS. Please remember that TSS is an important shareholder, it's a minority shareholder. When we talk about the dividend in this company, basically, all shareholders make the decision about the level of dividend, but the proposals of paying out dividends are to be given by the management team.

And voting on dividend proposals to a large extent, is dependent upon how the largest shareholder is going to vote. And then, along with TSS is the largest shareholder. That's how, in fact, the shareholders' agreement was construed and that's something that we've reported. So if somebody wants to understand the viewpoints of TSS about what we're going to do with cash, I would ask TSS. Please ask TSS directly. But if this is a question to us, then, of course, we will consider a variety of options. Liquidity position is relatively good or comfortable.

But once again, strategically speaking, we should think about how the Asseco Group should continue growing. We have always shared our results with the shareholders. we've had and run a stable policy -- and so we want to spend money on dividends. And so the first half we've allocated to dividends in terms of the tranche that was paid out a few days ago. And we promised that the second half would be paid out in the form of a dividend and the subsequent dividend. And this is something we're going to stick to.

These are promises that were made to our shareholders, and we will fulfill those promises. But when it comes to the rest of the cash, that's, I think, pretty evident that we're also thinking about growing. And some of these funds will be invested in organic growth, some of it will be invested in M&A activity, and some of it will certainly be paid out in the form of dividends. So we're trying to be very fair, very transparent in everything we do, but I would be grateful if some of the corporate properties would be left to those entities and those persons who are entitled to exercise the progress.

And if you look at the backlog of Asseco Poland is growing faster than what you had communicated in March -- and so if we think about the backlog growth with the project for hospitals, is this year's accumulation of projects. Does that mean that the 2027 in Asseco Poland could be softer because of having a high base effect or some of the projects could they last longer. What's your view on that?

Well, it's very difficult for me to say when will hit the peak on this subject. I can reflect on individual businesses. And when I started to talk about when I mentioned health care, it's actually the fact that the national recovery plan is a major contributing factor to growing income or top line. But this is not something that you can see in the results entirely.

I think it will be much more visible in Q2 -- or even in Q2, I know that this case. And so the backlog is quite strong. Please remember that the backlog that we report is the backlog for the specific year up until the end of 2026. And the backlog is construed, having in mind the contracts from the public sector, but it's also patted because after 4 years of working hard, doing a lot of sales work, we've been able to sign a contract, let's say, in Africa, the contract in Togo, which is co-financed by the BGK, the national development bucket. There's a little bit about in the press.

So that bag color the growth rate in backlog, we have certain contracts where we could say well, this growth rate is being sustained. But -- we have another couple of quarters in the public sector. We have a pipeline that's quite sizable. And there are other projects where we're going to make some attempts. We're going to strive to perform there.

So if we look at the potential upside, well, you can never be calm about what's happening best. And we are worried the least here today and the strong backlog that we hold. So I think -- this is a good -- something -- is a good harbinger for what's going, but this year could deliver.

So with more information about results, the more questions we have. And so was Q1 results supported by nonrecurring events. So settlements of a contract or contracts? Or is it just a matter of reflection of the overall business environment with the support the second type offices.

Generally speaking, the results of operating activity. And of course, of the overall group, the entire segment, but if I were to respond to this question, generally speaking, Yes, the fact that backlog looks the way it looks. There was no distinct one-offs. But if we were to come down to the individual specifics, I mentioned 2 contracts where they were building the results sort of 2 topics they are or not contracts, this is the government invention system. That's not something that will be a recurring factor because we're -- we built a product where we'll recognize the revenue all at once.

And so the effect of PLN 8 million, PLN 9 million in terms of our revenue, that's a one-off, that's something we have booked. The second topic is the context where I said it's in the public sector and the customer values that in atypical fashion that the revenue is spread out in such a way that the first 2 quarters are the most strong. And so those are 2 things or 2 topics, which I could enumerate here, which we could put into a basket of, let's say, less recurring.

But generally, the response is as well as in our results, we don't have anything that would be fully typical of a one-off nature. That doesn't alter the fact that when we speak generally about the results of Asseco Poland over the last 2 years. We've mentioned that there are certain legislative changes. And of course, the government invoicing system is a clear example of a legislative change. And so it's a booster, and that's why the results look toward this.

And this is the national recovery plan changes of legislation, the into invoicing system and also what's happening in the energy sector I could mention a large number of things here, but the logic would suggest that if we had the sense that something else will show up in that industry as well and then also in banking. And then in the public institution sector. And so as long as we're prepped to do or handle those legislative changes in our software. These things will continue to act as boosters for our results.

It's not only legislative changes I would add here to what Claire said, but there are new budgets or new areas where investments are being made, like safe or bigger spending on the defense sector in Poland. This is another area where if more spending is going to take place in the IT sector, we'll be able to benefit from that. And the same is true of European budgets.

And maybe I would add whether or not there's a positive impact by the National cover plan only in this year? Will it be visible also in 2027? I think Karolina has more or less responded to that question.

And it seems like many people work from home. So the office base is not fully utilized. -- is there perhaps an opportunity to perform a sale and leaseback that would unlock some of the capital for shareholders while rental yields are low?

Well, we do have a portion of the real estate, which is own real estate in Poland. That's the office in Warsaw, the office in we analyze a variety of options here. Let me talk about the financing capabilities, no decision has been made to enter into a sale leaseback transaction. Let me say I can say that in the spread rate, this is not something that proves would generate or be accretive. And that's more a matter of the function of the purpose that we have by doing that calculation.

If we look at the operating expense and the financial cost of such an operation, today, it does not seem to me that, that would be a viable option. But that option always does exist. And of course, we keep our finger on the pulse, and we make these type of calculations the fact that people are working from home, pets of course, true, but that doesn't alter the fact that our paradigm, operating priority means that we want to build a company that for many, many years to come, will deliver phenomenal results and will continue to develop.

In our opinion, the opinion of Asseco Poland management team, people who are coming to work to offices -- there are certain things that aren't measurable, but we're able to achieve them because people come to the office and work in the office. And so -- we are highly attached to this idea that this work that we do should be of a hybrid nature. So it's not something that's entirely self-evident that we should -- let's say, dispatch or discard this space because this could be something that would be rather myopic or a femoral in nature.

And so the fact of the matter is that most of our people today come to office in a 3 plus 2 model. Naturally, we could say that, well, in theory, we could put together a model where the same desk would be occupied by -- for 3 days by 1 person, 2 days by somebody else, we like a hot desk solution, but it seems to us that, that would be counter effective -- counterproductive. We want to encourage people to work in the offices because having in mind today what's happening with AI.

The fact that people are sitting together, there's greater creativity. When they're sitting together, we're able to solve problems more quickly this builds genuine value in the Asseco Group. But in terms of the tools that we have, if we have a programmer who's working totally remotely -- and the enticement to the employer is rather limited. Well, we do want to bring people to a level of just being tools because then, in fact, it's very easy to replace those people if you were thinking only about them as tools. This is not where we're building the value of the Asseco group.

So if we take just -- if we look at things on a point basis, I'm not saying that we don't calculate things. We do calculate that we do -- we do, of course, give consideration to various options, but it's very important not to lose from site the overall picture. We are not talking about the results. We're not fighting for the results of Q2 or just the results in 2026. We want for the Esseco Group to build value for the long term.

And the biggest value in this group come from the people who work for this group. And people who are working together hand-in-hand, determine what this group is capable of. So it seems to us that we need those buildings in the model that we have. So it's a great response, Karolina.

I would -- and so the journalist had why us? Why do we have such success and there are other IT companies that are generating such great successes in Poland. And I think this is what Karolina said a moment ago. We have more than just the fact that we're hiring people, we're building value and we're trying to care for our employees because it's our greatest asset.

The next question is about the revenue from the government invoicing system, whether that's a one-off. Carolina already addressed that question in our previous response.

Whether revenue contribution from acquisition on Slide 12 is from those acquisitions made in Q1 2026 only? Or is the total revenue contribution from those acquisitions made over the period Q1 '25,Q1'26 many things.

Yes. when we show acquisitions, these are the results of companies that weren't in the consolidated version of Q1 2025. So they were purchased after 31 March 2025. So you can see them in the results of Q1 2026, but we didn't on a comparable basis in the corresponding period. The next question is basically the put option liabilities under the formulary systems. This has grown over the course of a single quarter by nearly PLN 100 million of PLN 439 million to PLN 530 million.

So based on the tax valuation or the valuation event is based on the companies and certain factors. It's such a major growth mean that the operating results of these acquired companies has improved so greatly -- or was there a revision of forecast for the upcoming years?

This is a very specific question. in formula, we have a large number of puts, there's a purchasing model -- in the Asseco group, in scopoland, usually, we sign contracts with put options, and they're usually on a symmetric basis, and of other calls on the other side, symmetric call and put options. And generally speaking, the increase that we've seen in formula is in part a result of the fact that we have, in fact, changed the valuation, the underlying valuation -- so we put a valuation on a put option.

We try to determine a multiple against results against the earnings. So -- are we saying that the results have improved. Does that mean the annual liabilities? Well, in part, that's true. And that's part of the reason why the growth has taken place to a large extent. This result of the fact that in 2025, an acquisition was made. And there was also a put option.

So basically, we have new liabilities that have appeared. As a result, of new acquisitions and that's that. And there are also some other financial things in terms of reversal of discount rates. And this could also have an impact on the valuation to be paid out or not dividends being paid and something else that's also quite important is the fact put options can be in different currencies. And so we have to translate everything into post wares. So these payables can change also as a result of FX rates. gains and losses.

If somebody wants to have this broken down in great detail, that's something we could do, but I don't think we want to drill down into the details. And you can ask this question through IR, and I'll try to give the response.

Congrats on the results. Given the cash balance and somewhat depressed valuation of software business. Is there any plan to accelerate M&A operations in the coming quarters, Mara?

Well, as you know, M&A activity is something that we've been doing for many, many years. We are not sitting on our laurels. We're talking with new catalysts, new companies. This is something that we want to continue. But the fact of the matter is that this market has changed a bit, and this is something that we've been talking about for several quarters. And I extended this message to convey this Mrs. to you.

And so we have potential investors from across the world in terms of private equity, venture capital, international players who are looking at our pouring over in our markets. So we haven't seen that competition. We're talking about smaller countries in the Balkans and Slovakia, Czech Republic, Poland, where a few years ago, the market to look totally different from what it looks like today.

And this all of this taken together means that we do, in fact, see prices, which are unacceptable to us in terms of the expectations of the sellers. And of course, -- we don't want to do acquisitions at every expense. We want to have a good return on our acquisitions. We want to have suitable returns for us and our shareholders.

And this is something that we take great pains to achieve -- and so in Poland or in some of our markets, we have fewer number of acquisitions -- but generally speaking, we continue to talk. We are doing some analog scrutinies. We have some letters of intent signed in Poland. This doesn't always mean that the transactions will transpire even over a list of intent or a lot of intents been signed sometimes we would retract from that for 1 reason or another.

But responding to the question, we, of course, want to continue this activity. We're looking for interesting companies, competencies and products that would fill out our picture would contribute to us, but we're very selective because we want those valuations at a specific level.

So the next question, Marek.

The 2026 similarly strong in terms of EBITDA and net profit expansion as first quarter 2020 -- do you see PLN 800 million net profit trouble to parent company in financial year 2026 as within your reach?

I would put it this way, a simple multiplication of Q1 results by far is unlikely to get spot number that we will actually deliver this year. But as I have said, our ambitions are high. Yet there are objective factors, which do not allow me to say today that this quarter is going to be repeated in the following 3 quarters we do not share our forecast. We do not provide information on that. But if I were to say whether that is within our limit or not I would say, yes, it seems however, we cannot promise that.

So for sure, the ambitions we budgeted less, but which does not change the back at the situation we are facing today after efficiency improvement many areas drives this optimism and increases our appetite. However, not everything is under our control. So obviously we cannot promise anything, yet we can say that our action -- and the last question, I think an interesting one.

What was in fact of the highest historically speaking, Q1 for Asseco Poland .

Maybe I will help Karolina and Marek and will answer this. We have said so many things so you can guess what that was. But at the end of the day, that was the work of a huge number of our teams build various things. With the situation in the market with increasing key solutions in many segments and also new projects like this governmental invoicing system or new major changes in the system mean that our historical pets let us allows us to deliver those results.

On this note, I would like to thank you for such a big number of questions. And of course, we invite you to the following presentations of the first 6 months of the year results and then investor presentation. Thank you very much, audience. Thank you very much, Marek and Karolina.

Good afternoon, ladies and gentlemen. I'd like to welcome you very cordially to the conference dedicated to the results of the Asseco 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 will invite you for a Q&A session. We have the CEO, Mr. Adam Goral, and we also have Rzonca-Bajorek, who is the CFO of the group; as well as Marek Panek, who is the Vice President of the group.

I'll go ahead and give the floor right now to Adam Goral.

[Interpreted] 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 Artur didn't emphasize that this is a special meeting because in a year, we Rafal Kozlowski will have to be here. 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 Rafal to be a leader with his attributes. He's a little bit different. We're different from 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 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 is 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 bad people heading up some company -- countries. And even though you have wonderful results, people are aware of their responsibilities, their liabilities, and it's a shame that the world is -- has 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 [ son ]. And when we hear that 12 times during the day that you had to go into like 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 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, 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 disappear.

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 Asseco Group. I'm able to come here today in convey wonderful information. And the previous year was a great year. It was a record-breaking year.

And the net profit of PLN 1.139 billion. We have the successful sales. We were able to sell at a good price. And so we had 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 PLN 500 million of that EUR 1.139 billion is due to Sapiens.

The rest, which is also record-breaking is linked to the organic growth that we have achieved. And so I'm pleased 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 Jozef Klein, our leader.

And so for me, the test of his person as a manager is an exceptional year. 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 Jozef's ambitions led to a situation. Well, it was a very difficult point in time for him.

So I'm pleased that they were able to survive and this very difficult period, they were able to draw conclusions, and they were able to perceive the weaknesses of the organization, and they utilize that time in order to eliminate those weaknesses. And 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 interest of the investors, the management and the people working for this company. And if I'm going to be in the [indiscernible] 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 is 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 encourage 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 -- he's going to be the richest person in the world. Of course, I wish 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 some company.

But in our area, there's no bonafide control as a leader, I'm dependent on thousands of people. In terms of how they're operating. And if that later 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 heatings, warnings, but they're going to try to, let's say, maneuver you and somehow do something. We have a wonderful success there.

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 Asseco. And this is not a salary for the history. There is a portion of that is remuneration for -- 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 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.

[Interpreted] Thank you very much. So having in mind what Adam said that we still have the final section of the meeting during which Adam is 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 3 quarters were sustained and nothing happened, nothing extraordinary happened in Q4. And I think this -- so it wouldn't be necessary to talk about. Let's talk about the profits. So Adam mentioned the net profit, which is PLN 1 billion nearly PLN 140 million. But look at some of the other 2 numbers.

So we have revenue at nearly 16.7 -- so it's PLN 16.780 billion, and this is a 12% increase year-on-year. And then we have operating profit, which is in excess of PLN 1.6 billion, 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 3 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 PLN 10 billion watermark. And then we have international, which is some 27% of total revenue in the group. So we have PLN 4.6 billion. And then we have the Polish segment, which is the Asseco Poland segment, and we have nearly PLN 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 1/4 of the total revenue of the group, we have very dynamic growth of some 15%.

We're pleased with what's happening in banking sector from the very outset of our operations as Asseco. This is a very important and significant bulk of products or segment of products that we've been offering. So we have nearly PLN 4.7 billion. So it's more than 8% increase. And so all 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. And so -- 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 PLN 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 #2.

And that is 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 PLN 1.5 billion at 11% growth. Then we have Asseco International, which came in at PLN 1.6 billion, which is 4% growth. And we have Southeastern Europe and PST, which is our company in Portugal, which is operating in the Portuguese market.

And then we have Asseco Central Europe. So all of these businesses are growing well. Then we have on top of that, Asseco Poland. So this segment, Asseco 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 PLN 4.15 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 on this revenue. In Poland, our growth is nearly 20%. So we came in at PLN 1.2 billion in revenue. So in Poland, we are the leader in terms of our solutions for public institutions. We're a major player in terms of 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 PLN 2. billion -- nearly PLN 4 billion.

And the final segment that I would 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 PLN 1 billion.

You might have noticed that another line disappeared Asseco Poland segment. But this is the reason -- the reason is that DahliaMatic 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 made no further sense to show Asseco 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 PLN 6 million.

We continue our acquisitions 2 slides to cover this story. We are showing all the acquisitions completed last year, Asseco Poland segment and Asseco International segment and Formula Systems segment likewise. That was the greatest bunch. Altogether, we had 13 new entries joining the group last year. So we were keeping the pace from the previous years.

Every year, we have a 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 [ content ] 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 entities 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 and Matrix 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, Michpal, 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 M&A projects, and I believe that he will be delivering that step-by- step.

Thank you for your attention. Over to Karolina.

[Interpreted] I will briefly cover the financials. On the first slide, you see the key numbers. Marek mentioned revenue. We are almost at PLN 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 the prior periods.

So over PLN 16 billion of sales. Our own proprietary services PLN 12.6 billion and a nice growth of 7% in both items. And Non-IFRS EBITDA and Non-IFRS EBIT, 8% and 9% up, respectively, and it's PLN 2.5 billion for EBITDA and over PLN 2 billion for Non-IFRS EBIT. And Non-IFRS net profit is PLN 742 million and CAGR, the best of the past 5 years, 9% 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. It is still a negative impact, but not major, PLN 48 million in terms of revenue and PLN 4 million in terms of operating business and Non-IFRS.

We are truly happy about our organic results, PLN 1.3 billion it's ours organic sales. Across the group. And that was translated into PLN 300 additional million operating profit, non-IFRS. And acquisitions is PLN 452 million at the revenue line and PLN 46 million at the 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 Asseco Poland is doing very well. The Marek company is showing exquisite performance, but you may scrutinize in the stand-alone financial statement, minus [ PLN 11 million]. So it's a [ interior ] contribution from Formula Systems segment.

The main reason is that Sapiens was consolidated over the course of 12 months. But in Q4, we had a first restructuring processes and the cost of that charged the result for the Q4. And Asseco International contribution was PLN 49 million more compared to the prior year.

When you look at the entire P&L statement, and we are happy about the dynamics, 11% growth year-to-year revenue and proprietary software and services, over 15% Non-IFRS EBITDA goes up and 20% nonoperating profit, Non-IFRS and 11% the 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 and namely M&A. This is all one-off events. PLN 67 million is the write-off at Formula Systems for ZAP company. Well, they were not doing as well as we were projecting at the moment of the acquisition. So we decided to actually write off that asset. Some costs were generated by the transaction that Marek referred to.

So the merger of Magic and Matrix is PLN 67 million. And then we also have some write-offs from other companies and PLN 15 million was our own project, our own investment, goodwill and assets in Nextbank 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 cost of interest is less year-to-year. And the currency line, it's mostly the formula. Formula is reporting in [indiscernible], but they were paid for the Sapiens deal in US dollars. And the translation of the currency balance, even with a small exchange rate decrease generated major foreign exchange impact.

Well, 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 is the main contributor. We had the indexation of the revaluation of the -- our investment in the company that was doing SPO, 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, PLN 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 the operating revenue and operating profit, well, the Sapiens was a major contributor to these lines. Therefore, for 2026, because of the sale of Sapiens Group, we will be probably PLN 2 billion short in terms of revenue on our operating business and probably around PLN 350 million profit on our operating activities.

So Q4 was really charged with the cost of the sale transactions at the cost of restructuring. Therefore, I would rather look at 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. But 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 a one-off effect. In case of the Sapiens sale, the Marek company had to pay -- or had to show almost PLN 24 million of additional tax, namely CFC. So the effective tax rate for the Marek 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 Marek 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. And in terms of other companies, we have consolidated Michpal 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 Asseco 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 ERPs. So excellent performance of Asseco Business Solutions. We also have major improvement in profitability in Germany.

So that's another reason to be happy. And now the Southeastern Europe -- so great performance in dedicated solutions, major improvement 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 in-sourcing. 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 Asseco Poland this is 124% it's 109% in international and Formula Systems, 128%. So we had specially 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 PLN 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, it's more than $1.5 billion.

Then you have Formula 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 PLN 734 million and then EUR 110 million from acquisitions. And then if we look at the operating profit Non-IFRS and so we have 3 from acquisitions, PLN 216 million 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 Asseco Poland as well. 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 Asseco 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 proportional recognition of cash flow generated, it seems that it's very decent, 27%.

And so we have 124% in Asseco 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 PLN 3.3 billion, then EUR 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, of 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 own proprietary services and software and 19% in Asseco Poland is like 17%. And so it's more or less equally divided on public systems and financial sector.

So hence, we've got 9% for Asseco International and 14% in Formula Systems. And if we look at this on a proportional basis, we have 16% in Asseco Poland and 10% in Asseco 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 PLN 1.051 billion, which translates into PLN 13.05 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 PLN 13 per share as dividend per share. And if we look at the consensus opinion here, it's probably around PLN 11 was, I think, the figure that was stated in the consensus. Why did we make the decision to pay out PLN 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 PLN 1 billion. And so PLN 500 million with plus would be a little bit -- that would be 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 on 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 and cash flow, and that's what fed into this defining the specific figure or calculating the specific figures.

[Interpreted] So thank you very much, Karolina and Marek and my friend who's been listening to us that these are wonderful results, and you guys are 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's the AI battle, which is not easy to monetize in terms of what -- it's not having an easy go at monetizing what is achieved up until 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 Asseco's strategy is unchanging. [ Rafal ] is something that will continue along with my new wonderful partners, and we agreed 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 or prevalent portion of our revenue. And where it's sensible, we won't, of course, resign from integration. We want to make sure there are several regions where we are very strong. 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 my teams responsible for the various sectors and each sector is coming in with its vision for the upcoming 3 years.

Of course, our strength is [ individually ] our knowledge of our customers, our customer knowledge and our customer knowledge is something that's been proving its position, its importance in Asseco 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 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 nonstandard 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 1.5 years with [ Garrick Brown ] who was -- has been running business intelligence for many years in a wonderful way and in our 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 won't 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. 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 health care 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 Asseco Poland, 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 on-boardings, 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 -- they're just quite. So we're bringing on board these young people. So 12, 15 years ago, I delivered a lecture at the Warsaw University where we're 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 COBOL because we have solutions at PKO BP, which is a COBOL solution. And so I'm pleased to see that young people want to learn COBOL.

So you should learn it, but you should make sure that you're diversified in terms of your knowledge business. 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 #1 in Poland and Europe, many countries. We always talk -- say one thing about that, but the other talk -- the other things we talked about in 10 years, we want to 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." 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 [indiscernible].

Let's do it the same way other nations do it. Today when we look at our Diplomatic Corp and our economic diplomacy in different countries. I also noted a 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 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 sell because they show that we were able to grow. And I know for a fact, but if we take good care of all these things that I mentioned, we will not get lost in the new world where the AI becomes a major player.

Now look at [ Adam Goral ] 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. No 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. A we enhance your security or we help you control and curb your costs. So we sell that. 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, but I'm advocating here. Is something that is not appreciated by the evangelist of the new tools. They think that we should take a different approach.

You may have noticed, but 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 the 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 3, 4 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 curb 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 2 things where my ambitions have not been met. One is cybersecurity. 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 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'm really thrilled because we signed a 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 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 a company that would be better than our current capabilities.

Today, we are talking to a 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 in my screen. 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 and -- 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 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 #1 and so has been for us. But they also have other KPIs that really help, but 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 Rafal can claim the greatest contribution here.

Asseco growth. And this is the project that started 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 approach the same thing from a completely different perspective. So I have to say that it was a very informative and educational experience.

And 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 in my generation is still there and is still quite efficient. Rafal 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 this succession. So they came to us and they said, well, 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 the 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 was 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 Rafal is the key man. I am a very open person. I think that Rafal is more restrained. But if he's more restrained make sure that he's more down to earth, because media has never failed us.

And even if I was saying way too much, they didn't publish everything when I said afterwards that, well, perhaps that shouldn't be published. It's not very much shame of that, but we are just humans. And to rank people who are onboarded in the company, I always tell them, look, we don't have a single individual in this company who has never made any mistake. 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 [ side]. We have to be positive. You may say, okay, it's hard, but you 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 have to show it to us, but 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 she's 24 years, and she's addressing me Mr. President. And I say, look, one order that I always give, I'm Adam.

Look, I'm not saying farewell. I'm not really leaving for good, but I'm -- 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 Rafal's way. Rafal 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, but probably you don't find me surprising. I said at the beginning that there are wars out there, and this is not a reason to be happy. But then there is another aspect. It's important to actually speak to people face-to-face. The more the 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 100 that are just watching us online, we were not top performers. If there is anything we need to improve, please let us know.

[Interpreted] 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 ado.

So let's begin with the first question in terms of this year's recommendation for the dividend. 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?

[Interpreted] 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.

So Marek has several potential acquisition targets. We're working on that now. But in Asseco, we always want to buy for organic growth. That's our obsession. One of the very kind journalists, 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 is coming forward and what they've created, which is far away from our standard is pricing that at a multiple of tens over the profit, but they don't want to buy the brand.

And I'm not interested in that because we have -- we can pay a lot for the past, for the history. But the fact that we're going to build the future together, well, 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 Asseco 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 build 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 those 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 KSeF 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 KSeF, this national invoicing system.

I don't think I'm apologize for saying perhaps I don't know the figures. I don't think it was the biggest quarter for us, Q4 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 have done.

What Rafal did on an international basis, that integration of our teams with Germany, and Germany is 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 been 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 the next wave of companies that will utilize the national invoicing system called KSeF.

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 as 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 for it because in 2024, nobody would have lended money to Adam Goral for his -- 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 Polish Stock Exchange.

There would be no Asseco. I'm sorry to say, I regret that we don't have a sufficiently large number of IPOs and business owners have started to stop seeing that there's opportunities linked to being on the exchange. So like PKO BP, baby was waiting for us with a 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 this 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 I would precede 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 results of voting, I was nearly satisfied. We were only missing some 700,000 shares. So that's not very many. So maybe somebody 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% PLN 200 million.

Of course, it's PLN 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 been -- we've received rewards or awards by like, for example, the Parkiet 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 asked and perhaps these words will exert an impression on somebody and they will vote through proposal through. Well, people are for those person, we want to take care of the stock exchange. The people who are taking care of our business interest, we want more and more of these people to think about the interest of the investors for them to buy for the value of the company and the shareholder value.

[Interpreted] The next question, is it possible to think about the sales of the -- remaining 18% shareholder -- share 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.

[Interpreted] 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 in telling, and we surmise that advent because that's a new investor, if it makes the decision in a couple of years to sell Sapiens, then of course, we will, of course, join forces with them in that sale.

[Interpreted] 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.

[Interpreted] But 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'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 he's very cognizant of. He knows it very well, and he talked -- 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 was already announced at $200 million. And so we're also counting on a dividend.

Well, Guy is working how to neutralize this fact, the sale of the majority stake. He has ideas. We won't talk about those ideas because I analyze this is a new topic in terms of building a position in a given area is 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 in 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 Advent 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.

[Interpreted] 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?

[Interpreted] 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 interest.

And so betraying 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 it 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 concept they harbor. This is something we're going to be able to master. Marek, 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 5 cases, we had conflicts of interest. And if this is something that we can live with out of a number under 20.

[Interpreted] The next question is to Marek. 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.

[Interpreted] 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, PLN 1.

[Interpreted] Well, yes, in our concept, I don't know if somebody has noticed, we have 1.5% stake. Those are shares linked to my -- 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 is 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 for 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 PLN 1 because we need these people as investors, but there is a program PLN 0.25. That is a program to change or 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 Rafal Kozlowski is today coming forward to each one of our leaders in 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 [indiscernible] who set up Constellation in that overall concept.

This is a person from the financial market. He himself with his family. I don't want to -- it was a 7% or 9% over 30 years. These were shares. These were these bonuses. That's how he was 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 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 Rafal will be Okay. You can -- so you can take him. I'd like to thank all of you, all those people who are participating remotely, the people here physically in attendance. And so I would like to thank you enormously because we are a very close-nit 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 disappointed me. So I didn't have the 95% share. 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. It's worthwhile to turn over that 1.5% equity stake to 95% [indiscernible]. 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 then. So thank you once again, then Bye-bye.

[Statements in English on this transcript were

spoken by an interpreter present on the live call.]

Good afternoon, ladies and gentlemen, at this conference where we will discuss Asseco's results for the 9 months of 2025. As always, we will present the activity of the group, and we will tell you more about the finances.

In the end, we will make sure that all the questions are answered. So in the meantime, feel free to send questions to us. Again, we would like to welcome Rzonca-Bajorek, CFO; and Marek Panek who is in charge of group's development. Now Marek, I'm sure, will begin with the introduction. He's smiling. So probably he has some good news to share.

So Marek, over to you. Tell us how we've been doing in the last 3 quarters.

Good afternoon, ladies and gentlemen. Well, it should have been my show, but still, yes, we have some positive news. We are summing up a very positive -- another subsequent positive period in Asseco's activity. So now I will tell you more what were the highlights in the first 3 quarters. Let me start by summing up. You see here some key figures that I would like to communicate.

First, results. As you can see, we've observed a very dynamic growth amounting to 11% compared to last year, amounting to PLN 12.3 billion. Our profit -- operating profit was growing even faster, the non-IFRS 1, up by 18% to PLN 1.4 billion. And non-IFRS net profit went up by 29% to as much as PLN 516 million.

Now the profitability also improved. The non-IFRS 1 is close to 12%. So taking all this into account, we have reasons to be happy. And indeed, the first 3 quarters, we believe we're very satisfying. These results are driven by the fact that we've consistently been pursuing our strategy, the strategy that was kind of 30 years ago is based on our own products, our own software and on diversification in terms of sectors and geographies where we operate. We are getting stronger in our core areas, finance, public administration and ERP.

At the same time, we've seen some promising areas looming, we've been talking about them many times, cloud, cybersecurity, defence and recently AI. In all these areas, we are more or less advanced. We take a close look at the market, and we want to make sure that we are present in all of them. And this is kind of an untypical slide because I'd like to mention one such event, which is we signed at Formula Systems, the agreement for the sales of a majority stake in Sapiens International.

So this contributes to our results even though this transaction has not been consumed yet. So in August this year, an agreement was signed to sell the stake in Sapiens by Formula. With that, they will retain 18%. As a result, we are losing control over Sapiens. And that was reflected in financial results. Sapiens as a result was excluded from consolidated revenues and costs as well as income tax. So the data are no longer part of the consolidated revenues.

It is now classified as discontinued operations. The net result of Sapiens is included in the profit and loss statement under net profit from discounted operations. The transaction is expected to be finalized in the end of Q4 or beginning of Q1 next year. And we already announced that previously that it will have a significant positive impact on the result of the whole group.

We will tell you more about this at the next conference. Now coming back to the traditional part of my presentation, I will start with a short summary of activities in individual geographies and segments. I suggest that we focus on the graph that you can see now on the right-hand side. It's the sales revenues broken down by segments. Starting from the upper part, it's Asseco Poland.

This segment was marked by the highest growth of as much as 14% period-to-period, followed by Asseco International, plus 12%. Here, we are close to the amount of PLN 3.3 billion. And the largest part is Formula Systems that observed 11% growth and achieved PLN 7.3 billion. Remember that Sapiens is excluded. So in a nutshell, I would say the following, no big highlights for the Polish segment.

We look at the public one. We have a strong position there, and it grew very dynamically. Also, we would like to stress that we have a strong position in the finance segment. It's mainly banks in Poland. For Asseco International, I'd like to point out ERP solutions and solutions dedicated to banking, especially Eastern Europe, Central Eastern Europe. And then Formula Systems segment.

Here, I'd like to mention record revenues of Matrix IT and some satisfactory growth of this new part, which is Michpal Group. Here, you can see the revenues broken down by product groups. Again, please focus on the graph on the right hand. Let's start from the upper part, plus 8%. It's solutions for finance. And really, it's one of the largest segments with respect to software in our group. The finance one brought us as much as 23% and the largest software based is the public administration segment.

It grew at the most dynamic pace. Exactly, it was plus 16%. So we are very close to the amount of PLN 3 billion. And it's about 25% of the revenue of the whole group solutions for banking institutions. Now ERP solutions, here, we observed an almost 10% rate of growth. And looking at the remaining less software-based IT solutions, it's categorized as other IT solutions.

It's plus 12%. I will then remind you what it includes and infrastructure and third-party solutions. It still generates a considerable part of our revenues, but it contributes to less -- to lower margin rates. Still, we were able to generate 10% of growth here. I'd like to underline once again our diversification. The share of the 10 top customers in our case, is 12% and 2.5% is the share of the largest customer in the group's revenues.

Moving on, let's have a look now at those individual solution groups in detail. I will start with the finance one. As you can see, we have almost PLN 2.8 billion in terms of the revenues. plus 8%. That's the change. And the greatest contributor is no longer formula systems as it used to be the case. Probably now Sapiens is excluded. So right now, #1 is Asseco International. There, we have almost PLN 1.2 billion revenues and a 6% growth rate.

Just to remind you, it involves Asseco Eastern Central Europe solutions for banks and payment solutions. Additionally, it's Asseco Central Europe and Asseco PST. That is the activity in Portuguese-speaking countries. In all those segments, we observed growth. So 6% is the growth of the revenues. Formula Systems takes the second place in terms of the contribution. PLN 1.1 billion is the worth of the sale, 11% growth. And excluding Sapiens, this is now Matrix. That's the main player.

They have a lot of banking projects in Israel and Magic Software. Now Asseco Poland that makes us very proud for many years because we believe that our business of banks in Poland is very mature and very sound. It's a great stream of recurring revenues for the company. So here, we almost have PLN 500 million in revenues and the growth rate is 10%. Please be aware that we not only serve banks, but also brokers, houses and leasing companies.

So all of that together generates almost PLN 500 million. Now solutions for public institutions. As I said before, that part grew at the most dynamic pace. So we have 16% worth of growth. We are close to PLN 3 billion in revenues. The greatest contributor here is Formula Systems. Again, Matrix IT is the main player. It's the largest IT company in Israel. And at the same time, they have a large share in the supply of solutions to the public sector.

Many Israeli public institutions utilize Matrix solutions. Matrix is followed by Asseco Poland in terms of the size, PLN 900 million revenues, again, a very dynamic growth, 21%. In Poland, as you know, we cooperate with many big public institutions. I'm not going to quote them. I'm sure you know what I mean. We also have solutions for local governments, smaller clients and for the health care sector, where we are an important entity offering solutions. That dynamic growth makes us very happy, obviously.

And finally, Asseco International. Here, we welcome an almost 30% growth of revenues, mainly driven by Asseco Central Europe. We were able to restore our position. That makes us very happy. You may recall some fluctuations in Czechia and in Slovakia. Some projects were put on hold in the public sector due to the geopolitical situation. Now we are happy to see a return to these projects.

Also, I'd like to mention Asseco Southeastern Europe. It is coping very well in -- in this area as well as Asseco Lietuva, our Lithuanian company. Now ERP solutions. Here, we have a lot of revenues. You can see that on the screen and the revenue CAGR plus 8.6%. Asseco International here is the most important one. Remember, we consolidate here Asseco Enterprise Solutions. That operates mainly in the ERP sector. And it's observed 4% growth and generated revenues over PLN 700 million.

Number two is Formula Systems segment with 14% of growth. We are close to PLN 450 million. This is mainly the contribution of Michpal. It's a new group, HR and payroll, that's their core activity. And we treat these solutions as part of ERP. Hence, that revenue is classified as this segment. Also Matrix should be emphasized here, a company that also has ERP -- a proprietary ERP system and some third-party companies and Asseco Poland here, it's only PLN 50 million. So you might think it's quite negligible.

But still, it makes us very happy because they have a good growth rate of 22%. It's mainly DahliaMatic. And by the way, DahliaMatic in September was moved to Asseco Enterprise Solutions Group so that all ERP solutions are offered as a one-stop shop. And now this will be moved out to a different table. And now Other IT solutions, let me remind you what this is made up of. So first, these are the solutions that do not -- are not classified in the others.

So this is our trusted services and our software related to trusted services produced by Asseco Data Systems. And this is also about resources outsourcing. This mainly comprises Magic Software in the U.S. and Israel and also platforms for software development that are supplied by Magic and dedicated solutions for different types of companies supplied by Matrix.

So other solutions offered by our company over PLN 2.2 billion and a 12% growth for the whole group. Let me also mention that it also covers our ITC solutions for Poland. So this is a project for the Cyfrowy Polsat Group. In Poland, it's over PLN 150 million revenue, and this group of solutions accounts for an 8% drop in this case in Poland, but don't worry about it. This is because of some seasonal aspect of this project carried out by Cyfrowy Polsat.

Now acquisitions. We are continuing the activity here and 9 new companies have joined us. So 2, both in Poland, 1 in Slovakia, 1 in Czechia, 3 in the Israeli market, 1 in Spain, 1 in Egypt. And we will continue acquiring companies. And in Q4, there will be some new companies joining us in the group. And as you know, this is part of our growth strategy, and we take it very seriously. So much from me.

Now over to Karolina. Thank you.

I will discuss the P&L. Marek has mentioned the revenues, and I would like to add a few points because revenue on software and on proprietary services is growing at a fast rate. And I will also discuss the backlog at the end of the presentation. EBITDA over PLN 1.8 billion and CAGR 8% and EBIT 1.4 plus 7% and the net profit is PLN 516 million, and this amounts to 8% of the CAGR.

Now period-to-period. We can see that there is a negative effect of the currency rate. It's the negative effect is PLN 135 million. And if you have a look at the growth rate, it's around 2 point difference between the currency rates and now the organic revenue has been growing by over PLN 1 billion and the acquisition at PLN 355 million. As a result, we have the result of PLN 12.255 billion, the revenue.

And then let me also mention what Marek has been discussing that this does not include Sapiens, which is recognized in a different place. Now Non-IFRS operating profit, PLN 16 million negative. This is the foreign exchange rate. We have the topic of real property sale, which was positive. This year, it's negative. And this is non-IFRS. Let me remind you -- so some one-offs have been already cleared. They were included in the results of this quarter. PLN 215 million.

This is the of organic results and PLN 33 million. This is the effect of the acquisitions. Now the net profit one-offs, PLN 11 million. This is the real property sale and PLN 128 million. This is the organic result of our companies. Now let's break it down into different segments, non-IFRS net results. For some time, the trend has been quite steady. So Asseco Poland has been the largest contributor here and PLN 4 million Asseco is Formula Systems and PLN 26 million is accounted -- is contributed by Asseco International.

And if you have a look at the revenues and operating profit, we have already mentioned that the growth rate amounts to 11% total services, proprietary services, 12%. And you can see the dynamics on the right, excluding the FX rate effect, and this is the change, 13% if you freeze the currency rate exchanges. 3 quarters, there is 15% and 15.1%. And now Q3 to Q3, there's a drop in profitability, but I wouldn't worry about it because this is the effect of the adjustment because of the activity in India and the acquisition that was taken away from the results of this year.

And without this acquisition, profitability wouldn't be lower. And if you look at it segment by segment, you will see in a moment that there are segments where the profitability is improving. Now the revenue from operating profit, 18%. This is the growth rate. It would be 19% if it weren't for the FX rate. So profitability Q3 to 3 quarters to 3 quarters improves, and there is a significant effect of one-offs because of the M&As. And as a consequence, the growth rate is a bit lower. It's 16% after the 3 quarters. And interest results are quite similar and foreign currency transactions have a bit lower effect. There's a hyperinflation and other adjustments. We have received many questions about the effective tax rate. And as you can see, period-to-period, it goes down by 0.8 percent points. And there is also a significant impact of Asseco Poland. This is a positive tax effect and it's largely due to a one-off. This is because the whole loan time, we couldn't recognize the interest of the loan taken to buy our own shares.

And there was no revenue there where we could match the cost and use it effectively in the tax declaration. But once the transaction took place and we knew that we would be selling our own shares, this option appeared -- and we could use this tax loss in this item. And this is the most important effect here in this quarter. And we've been filing requests with the tax office for interpretation to settle the taxes in the most logical way possible.

And we have also obtained a positive interpretation from the tax office, which is actually contradictory to another one we received a few years ago. So we have already made some adjustments to the tax settlements for the previous years, and we will continue to make adjustments, but this takes time. Hence, the impact on the effective tax rate. Now in Q3 last year, there was a positive effect because some overstating of the TSG investment at the level of Formula Systems. It was a one-off -- there is no such effect now.

That's why this time, it's smaller than what we've been used to because of the one-off last year, which was quite important. Net profit attributable to shareholders, it's PLN 453 million. You can see that the dynamic here is larger because the largest dynamics is always where we are consolidating the highest percent, which is effectively in Poland, Asseco International and lastly Formula. And this is precisely what I've been talking about.

Have a look at the parent company, Asseco Poland, you can see the growth rate of the revenue and the operating profit. Here, we can see a huge improvement period-to-period, PLN 272 million compared to PLN 201 million period-to-period. So we are very proud of our parent company and its results. Now Asseco Data Systems has improved significantly as well. So if you have a look at operating profit, it's PLN 442 million.

And now other companies that are recognized together in a single line. There were companies that were struggling last year like DahliaMatic. And this year, they have recovered their position and the result is positive. Therefore, this line has improved significantly. Now Formula Systems. So another record quarter for Matrix IT. We've been telling you this every quarter, but this is actually the case that every quarter, they've been improving their results, and we are very happy with the dynamics because profitability is also being maintained or improved. Magic is flat.

Let me remind you that we'll have the merger of the company soon. So, once we lose control over Sapiens, it will be different, but Sapiens will be kept as associates and a single line in the P&L and Matrix and Magic will be recognized as a single group. And we think -- we hope that after the merger, there will be some operating benefits in Magic for Magic. And Michpal has had its debut on the stock exchange in Tel Aviv.

And I think that this group can be expected to grow because now it's growing at a nice rate, its effectiveness is growing, and it's going to continue. Now the Asseco International segment, Central European market, Marek has mentioned the fact that the ERP group is the driver of growth here. But the core area is also a good contributor of Slovakia and Czechia. This is a huge part of the Central European market. Now South Eastern European market, an organic improvement in banking.

Payment would have been better, but a write-off has been recognized here for India. Now the Western European market, as we have already told you, the result is very decent Asseco PSP.

Now let's move on. This is cash generated LTM. We are very happy here. Asseco Poland, it's as you can see here, an international 107 -- 114%, Asseco Poland and Formula 104%. Now liquidity situation has been stable. Still, it's negative in 2 segments. But at the same time, I'd like to point out that the debt in 2 segments went down.

For Asseco Poland, we are still paying back in accordance to the schedule, a credit facility, investment credit facility. When it comes to Formula Systems, we are also paying back. So the debt is ever smaller. The cost of debt servicing are also expected to go down considerably. For some time now, we've been presenting to you also proportional recognition. So informing you what our results would be according to the ownership logic if the percentage rates were consolidated in an effective way without -- so non-IFRS results.

This is proportional revenues for 2024. The foreign exchange impact is here not as considerable. It's minus PLN 40 million and at the same time, PLN 560 million, that's the positive impact of organic results. PLN 67 million was generated by acquisitions. And looking at the operating profit, minus PLN 4 million, that's foreign exchange rates, minus PLN 14 million one-offs, PLN 155 million organic results and minus 2 acquisitions.

And again, proportional recognition of the revenues and operating profit. Here, the dynamics changes and efficiency are higher, where the percentage rate is higher, the results show better dynamics and better profitability. So look at proprietary software and services. Here, we generated plus 12% and EBITDA profitability 1.1%. So you can see here in quarter 3, an improvement in terms of profitability. And the same applies to operating profit in an accumulative manner. So accrually, 0.5 percentage points. That's the profitability of the operating profit.

Now let's have a look at the balance sheet in the proportional methodology. As you can see, the debt is not as consolidated in formula. And for Asseco Poland, it's close to 100%. So it seems we are on the safe side. Still, we are looking at the working capital in more detail to make sure that we use it as efficiently as possible. Now cash flows, proportional recognition.

Cash generated, again, a very satisfying picture, much better than in the consolidated recognition, 112%. That's the cash conversion ratio for Asseco Group. Asseco Poland segment accounts for 115%. Let's have a look at the backlog, order backlog. At the proprietary software and services level, we can see the backlog amounts to over PLN 12 billion in fixed foreign exchange rates, 13% is the growth at the level of the group, plus 14% is the segment Asseco Poland.

And the backlog has been growing mainly for the parent company, but it's also the case for Asseco Systems, Asseco International, again, 14% growth. In all of the companies mentioned here, we see great growth rates. Formula Systems, it's plus 12% -- and that's it for me, actually.

Thank you very much, Karolina. And thank you very much, Marek, for presenting our highlights and the most important events. And now we will move on to the questions that you've kindly sent to us. We will hope to answer them all. The first one is how you're going to manage the money that you get from Sapiens transaction and the other one that was mentioned, which of the settlement will be made next year? Higher dividends?

For the first part, TSS, so we already have the money. It actually already came to us. And so now we are trying to allocate the money in such a way that we have a good deposit rate in the interim perspective. But ultimately, we want the money to be allocated to pay out dividends in 2 batches probably. Of course, it's the shareholders' meeting that will take the ultimate decision, but that's our original intention.

So the money will be translated into dividends. Now when it comes to the other transaction, which is the sales of Sapiens, probably the deal will be made at the beginning of December -- sorry, at the end of December or beginning of January. And then the money will be settled -- the money will be paid to Formula Group. And there, a decision will be taken how it will be managed and allocated, whether it will be used for new acquisitions or some alternative forms of capital acquisition or dividends.

At this point, we don't know this yet. We don't know how the money will be allocated. That remains to be seen. But as soon as we know, we will let you know.

Thank you very much. Next question, how much money Asseco will get from the sales of Sapiens?

Actually, it's a question that I've been trying to explain already in the previous one. So the recognition of result is a different story than the ultimate money. The ultimate value will be allocated between shareholders in the form of a dividend. So as I said, once the decision is taken, we will let you know. And again, the loss of control of Sapiens is something that will also impact our results, and we will tell you what money we are exactly talking about as soon as this is calculated.

However, let's remember that it will be driven. Well, we know the worth of the transaction. But remember about the costs that have to be covered and as well as net assets. So these calculations will also be driven by taxes, by foreign exchange rates. So the result will be positive, but its ultimate value is -- remains to be checked, to be calculated.

Thank you very much. What are expectations when it comes to EF or electronic invoice implementation in the next quarter?

Well, it's hard to expect. It's hard to estimate that at this point. CEF is part of a bigger project. For sure, it's something that should increase the demand for our products and services. So I guess in all of the sectors where the implementation of CEF will be an obligation, we will definitely see the result.

I guess the most natural area would be companies that supply ERP and ERP-related solutions, such as Asseco Business Solutions. But I can't give you any exact rates at this point.

Now improved profitability of the parent company, what is it driven by? And is it driven by AI? And I guess it means artificial intelligence and not Asseco International, right?

Well, yes, indeed, improved profitability in the parent company is quite significant. I agree. And the reason behind it is the following. We have a lot on our plate right now. We are trying to use all the opportunities. And I guess, in none of the segments, we have any free capacities because we are really using our capacities to the full.

So I think this effect is what we actually already announced in 2023. Back then, we told you that we feel a lot of pressure on the payroll and on vacancies. Well, these problems are no longer the case that much. We still have some bottlenecks when it comes to people allocation. Of course, it's easier when you have an order backlog for the current year and for the next one, and it's easier to manage and to plan your people in the optimum way.

That's why the efficiency improved. So we made some extraordinary effort in many areas. I'd like to say that very clearly. Another reason is a very special situation, which is in all operating segments, we've seen a very good year. 2025 has been a very positive year. None of our businesses incurred any losses. I think it's a long-term effect of the fact that we've been fighting to diversify our revenue streams and of mastering the planning.

To some extent, it's probably the result of our optimization efforts and using different technologies, including AI, obviously. So these technologies have been helping us to ensure even better quality of the software to our clients. AI is actually at different stages of production. So the products that we offer also include the AI component. Still, at this point, we can't give you any exact rate to express the actual impact of AI on improved efficiency or productivity.

Think about AI in testing automation. In our case, software, thanks to AI, is tested much better. So then also at the service point, we have fewer tickets. So the servicing guys can be more efficient. However, it's really hard to capture that effect in numbers.

Right. I think that would be actually great to introduce the AI team so that they can -- at least the leader, maybe not the whole team, so that they can tell us more about our AI solutions that we've implemented so far.

Next question, could you please give us an additional comment on Asseco International, it's [indiscernible] company that was added to the group recently. And what about the write-off for NextBank?

Marek, would you like to take this one?

Ladies first.

Right. So let me tackle first our activity in India and Dubai, Asseco Southeastern Europe. The acquisition of the company was written off in this year's results. So looking at the balance sheet, you can see the impact in a couple of items. But efficiently -- effectively, if you look at the result -- net result, it's not such a huge impact. It's PLN 3.5 million up to PLN 4 million. That's the impact on Asseco Group's results.

Now this is driven by the following fact. Back then, when we bought the company, a big part of the payment for the controlling package was a conditional obligation. And that obligation was meant to be paid only when some results would be delivered in the future. When that decision was taken, by the management, we came to the conclusion that, that acquisition is not reasonable.

So it would be fair to make a write-off. So the write-off is about such assets as the goodwill and some liabilities. On the other hand, there was room to write off that conditional obligation or liability. So the net result is not as impressive in the end. As to the second part of the question, NextBank, we acquired that group some years ago in 2018, right?

Yes.

And at that time, it was kind of an attempt to try out our operation in a different sector. We invested in a start-up actually. So we patiently waited for a breakthrough, but it never happened. Therefore, we decided that at the point of an individual report or statement, we would write off these investments and the loans that were granted to the company. And then in the consolidated report or statement, we wrote off also the goodwill.

But don't think that there is anything wrong happening in this company because this is not the case. The company is operating. And let me remind you that this is a company registered in Czech, in Poland with a brand with a subsidiary in Philippines and it manufactures a cloud solution subscription based. And over the years, there have been around 50 implementations.

So there is quite a big group of client banks that rely on the software. At a certain point, there was an issue because the company started working together with huge banks. And some -- one of the banks made huge promises about IT projects. So NextBank established a huge team to implement the project. But at the end of the day, the budget got cut off heavily and the demand was much poor, hence, the loss because of this part of the activity. But we -- we still believe that the company will pick up and we'll get new customers. Now the subscription-based revenue covers the cost of activity.

So I think that the cash flow will be positive next year. Yes, but we will see the positives next year. So the scale of the write-off, it's PLN 25 million in the individual and PLN 14 million in the consolidated statement.

Next question. Can we expect an additional dividend because of the sale of shares to TSS this year?

And this was Santa Claus asking, we are waiting. We have until the 2nd of December. this would have to be a down payment, and we are still waiting for the change of the Articles of Association to be registered officially. This has been already decided in the general meeting, but this needs to be processed. And I think that around the usual dividend day, we will break the news to you, but no decisions have been made yet.

So this also depends on our shareholders. It's up to them. But today, it's too early to say because the Articles of Association haven't been amended officially yet.

What do you think about the forecast for Asseco Poland, the outlook in 2026?

So if you have a look at the results in 2025, they are quite or even very positive, and they make us optimistic. And a huge part of current projects will continue next year. Now we are doing the budgeting.

Nothing makes us worry about the Polish segment and next year to the contrary because if you have a look at the backlog, contracts are growing at a very decent rate. So if we succeed in improving the efficiency, the prospects are very good. But it doesn't mean I'm promising you anything right now that I'm promising you the same results because the results are really spectacular in 2025.

And partially, this is because of the momentum. But speaking about the outlook, -- now we have to focus on performing the contracts and improving the effectiveness, the efficiency and not on gaining new contracts that much.

Thank you. There is one question left. Could you please share the recording of this presentation as soon as possible on the website?

Yes, certainly, we'll do it soon in Polish and English. Thank you. Thank you for all the questions. And please stay in touch with our Investor Relations department and follow us on the during the conferences we are going to attend.

We will be attending the conference with [indiscernible] in Prague this week. We will be speaking about our results over there as well. And I would like to invite you for the conference on the results from 2025 next year. And Adam Goral will also attend, he's sending his best wishes right now. Thank you.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]