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Presentation of consolidated results of the Sygnity Group for H1 2009 Warsaw, 1 September 2009.

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Presentation on theme: "Presentation of consolidated results of the Sygnity Group for H1 2009 Warsaw, 1 September 2009."— Presentation transcript:

1 Presentation of consolidated results of the Sygnity Group for H1 2009 Warsaw, 1 September 2009

2 2 Disclaimer This presentation has been prepared solely for information purposes. It is not an advertisement or an offer of securities in public circulation. The information sources used in it are considered by Sygnity reliable and precise, however, there is no guarantee that the information is exhaustive and that it fully reflects the factual circumstances. The presentation may contain future statements which pose an investment risk or a source of uncertainties, and may considerably differ from factual results. Sygnity SA shall not be held liable for the effects of decisions made based on this presentation. All liability is borne by the user of this presentation. The presentation is subject to protection pursuant to the Copyright and Neighbouring Rights Act. Copying, publishing or dissemination of the presentation requires a prior written consent of Sygnity SA.

3 3 Results for Q2 2009/Q2 2008 and H2 2009/H1 2008 [PLN ‘000]Q2 2009Q2 2008H1 2009H1 2008 Revenues141 149272 238281 525481 020 Operating profit (loss)(85 398)(1 016)(101 523)(25 860) Net profit (loss)(75 385)1 629(92 364)(24 666) Factors influencing the results:  Effects of the economic downturn  Slump in revenues from sales of infrastructure and equipment  Write-offs in the amount of PLN 66 300 000  Final stage of execution or settlement of several unprofitable projects concluded in the years 2004-2006

4 4 Revenues in Q2 2009/Q2 2008 and H1 2009/H1 2008 by sectors Sector [PLN ‘000] Q2 2009Q2 2008H1 2009H1 2008 Public 35 448138 61177 125237 902 Banking and finance 35 06460 31478 329115 020 Utilities 33 67416 77454 81928 063 Telco-Industry 38 08856 31469 241100 372 Others and exemptions(1 125)2252 011(337) Total 141 149272 238281 525481 020 Factors influencing the results:  Lack of large infrastructural orders in the public sector (in the previous year, among others, the Police, MEN – result of a savings program in public administration)  In the banking sector: reduction of IT expenses, reduction of the scale of operations of some banking institutions

5 5 Sales structure in H1 2009 vs H1 2008 Revenues [PLN ‘000] 81% 39% 61% 19% Goods and materials Products and services

6 6 Write-off structure in Q2 2009 – PLN 66.3 million  Unprofitable projects (PLN 38.3 million) – provisions for costs related with execution of unprofitable long-term contracts concluded mainly in the years 2004- 2006, legislative changes concerning certain projects and contractual penalties  Overdue receivables (PLN 11.4 million) – write-offs for contested receivables and receivables overdue for over 6 months, payment backlogs observed on the market  Stocks (PLN 10 million) – overestimated and realigned value of stocks, licences and copyrights, resulting partially from contractors’ withdrawal from planned purchases  Provisions for holiday pay and bonuses (PLN 5.7 million) – bonuses and holiday in H1 2009  Others (PLN 0.9 million) – other provisions, mainly costs following the balance sheet date

7 7 Indebtedness [PLN ‘000 000]31.03.200930.06.200931.08.2009 Loans-25 -47 Bonds-64-70-37 Cash cash in an escrow account 363921 Net indebtedness*-53-56-62 * without cash in an escrow account intended for contracts

8 88 Savings program I etap Reducing the number and costs of subcontractors Employee lay-off Freezing temporarily salaries and bonus systems Reducing temporarily the working time and unpaid holiday Simplifying the Group’s structure Closing unprofitable production lines Abandoning some activities II etap Stage I Stage II Launch of a two-stage savings program. Stage I: Q3 - Q4 2009, Stage II: Q4 2009 – Q1 2010 Reducing temporarily fixed monthly salaries

9 9 Backlog 2009 Sector [PLN ‘000] Portfolio of orders 2009 Banking and Finance132 206 Public147 662 Telco-Industry115 251 Utilities88 639 Other sales3 670 Total487 429 Portfolio of orders for the years 2010-2011 amounts at present to over PLN 130 million

10 10 Prospects in 2009  Revenues of approximately PLN 700 million – lower revenues result from the economic downturn (public, banking and telco-industry sectors)  Anticipated operating profit in H2 at the level of PLN 20 million (approximately PLN 17 million following amortization)  New strategy of the Group in Q4 2009  First significant agreements on provision of service activities in western Europe


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