4ig annual report 2015
DESCRIPTION
4iG Nyrt is a dominant and dynamic player in the Hungarian IT market. It is one of the most promising companies among those listed on the Budapest Stock Exchange.TRANSCRIPT
ANNUAL REPORT 2015
THE INFORMATION CONTAINED IN THIS DOCUMENT IS NOT INTENDED TO REPLACE THE OFFICIAL ANNUAL REPORT,
BUT RATHER TO SUPPLEMENT IT.
3CONTENT
CONTENT 1. EXECUTIVE SUMMARY .............................................................................................................................................................................5
2. MESSAGE FROM THE CEO .....................................................................................................................................................................7
3. 4iG PLC. . ...........................................................................................................................................................................................................8
4. SUBSIDIARIES ..............................................................................................................................................................................................11
a. Axis Rendszerház Ltd. .......................................................................................................................................................................11
b. Banksoft Ltd. ........................................................................................................................................................................................ 15
c. Humansoft Electronics Co. Ltd. ................................................................................................................................................. 19
d. Mensor3D Ltd. .................................................................................................................................................................................... 23
5. INTERACTIVE CONTENT ...................................................................................................................................................................... 27
6. OUR INNOVATIONS .................................................................................................................................................................................29
a. 3D scanning and survey .................................................................................................................................................................30
I. 3D laser scanning and 3D digitisation .............................................................................................................................30
II. Quality Control ............................................................................................................................................................................30
III. Reducing design defects using interference checking ...........................................................................................30
IV. BIM (Building Information Management) ....................................................................................................................... 31
V. 3D laser scanning and 3D digitisation in Mechanical Engineering .................................................................. 31
b. Humansoft Repair and Troubleshooting Service .............................................................................................................. 32
I. Servicing room with ESD protection .............................................................................................................................. 32
II. Electronic worksheet .............................................................................................................................................................. 33
III. Developments targeting the end-user market .......................................................................................................... 33
c. PATER railway infrastructure and diagnostic expert system ....................................................................................34
d. Mobile Device Management ......................................................................................................................................................... 35
e. Business Intelligence (BI) ..............................................................................................................................................................36
f. BIG DATA ............................................................................................................................................................................................... 37
7. 4IG FOR SUSTAINABILITY ...................................................................................................................................................................39
a. Ethical behaviour .............................................................................................................................................................................. 40
b. Transparent operations ................................................................................................................................................................ 40
c. Development and operation of environmental information systems ...................................................................... 41
d. Fenntarthatóságot szolgáló projektjeink .............................................................................................................................43
I. AGRON2 project .......................................................................................................................................................................43
II. AGROMAX project ....................................................................................................................................................................44
III. FOODMAX project ....................................................................................................................................................................44
IV. EHEALTH8 project ....................................................................................................................................................................45
8. COMPANY MANAGEMENT ...................................................................................................................................................................46
a. 4iG ownership structure ................................................................................................................................................................. 47
9. CERTIFICATIONS ...................................................................................................................................................................................... 47
10. FINANCIAL REPORT ...............................................................................................................................................................................49
a. Consolidated comprehensive income statement of 4iG PLC. under IFRS, as at 2015. 12. 31. .................... 52
b. Consolidated balance sheet of 4iG PLC. under IFRS, as at 2015. 12. 31. .............................................................. 53
c. Statement of consolidated cash flow ......................................................................................................................................54
5EXECUTIVE SUMMARY
EXECUTIVE SUMMARYAfter a dynamic growth in 2014, our Group embraced a new challenge to further strengthen this trend and keep,
or possibly even increase, its pace of growth. In 2015, our Group had the most successful year of its existence.
The Group’s consolidated sales revenues under IFRS amounted to HUF 16.5 billion, which represents a 26% increase
over the previous year. However, EBITDA, the indicator which best describes the Group’s effectiveness, was in
excess of 927 million forints, which represents a more than 53% increase! An important change is that all of our
member companies are now wholly owned by 4iG Plc.; thus, the parent company can indeed operate as a classic
holding company. This year, in addition to HUMANsoft Electronics Co. Ltd., all of our subsidiaries have contributed
significantly to our results. The after-tax profit of Axis Rendszerház Ltd. increased from HUF 11 million to HUF 175
million, while that of Banksoft Ltd. from HUF 9 million to HUF 27 million.
The continuing growth of our Group has two pillars, namely market penetration in Hungary and internationally.
Market consolidation continues in Hungary, in which we see a significant growth potential. It is also useful to note
that, as a publicly held company, 4iG has filled a market gap. We have developed an international trade strategy which
summarises the foundations of our international expansion and proposes changes both in terms of organisation of
management and resources, to achieve the set targets.
*at the end of the period | ** for the average number of employees
KEY FINANCIAL INFORMATION (in thousand HUF)
Description 2014 2015Net sales revenues 13 049 492 16 486 463
Earnings before interest, taxes, depreciation and amortisation (EBITDA) 604 671 926 984
Earnings before interest and taxes (EBIT) 495 657 486 153
Profit after taxes (PAT) 348 166 313 716
Headcount* (people) 331 362
Net revenue per employee** 42 644 47 104
Shareholder information
Closing stock price* (in HUF) 2010 2050
Average stock price (in HUF) 2016 1833
Market capitalisation of 4iG Plc. (in billion HUF)
3,8 3,9
Net debt 422 827 109 374
Per share
Net earnings (EPS) (in HUF) 185 167
Diluted EPS (in HUF) 185 167
Shareholders’ equity (in HUF) 1888 1913
Sales revenues of HUF 16.5 billion
EBITDA HUF 927 million
”Last year, we reached a milestone. Finally, we can prove ourselves together, as a classic holding company.”
Dr. Gábor Felső
7MESSAGE FROM THE CEO
MESSAGE FROM THE CEOI am delighted to deliver 4iG Plc.’s Annual Report for 2015 and to inform you about the
results achieved by the company group in the previous year. Last year, 4iG had the best
economic performance since its establishment; in 2016, this momentum prompts us to
make further efforts, which are indispensable to increase shareholder value.
A busy year is behind us! We have undergone a major reorganisation with the aim of
transferring the full ownership of every member company of the Group to 4iG Plc. Business
activities have been centralised and cost-effective and centralised operations have been
set up for the Group. By shifting to a classic holding company management structure,
individual member companies are able to realise operational and financial benefits as
a result of which they can increase the quality of their services while maintaining their
independence.
4iG’s Annual Report is intended to present the effectiveness of the strategic cooperation
between members of the Group, presenting, in addition to the Group’s economic
achievements, the subsidiaries’ integrated operations as well as the most important
innovations and cornerstones of the Group’s business sustainability. Similarly, to how a
conductor leads the different sections of an orchestra, 4iG Plc., the parent company,
coordinates member companies to work together towards a common goal and future, so
that they may render great performance individually and be able to solve even the most
complex IT issues jointly, just like when the parts played by individual instruments add up
to musical excellence.
Aligning activities was only the first step. Our objectives include the development of
a medium-term stock exchange strategy, which, building on our solid foundations,
supports the achievement of high sales revenues and EBITDA and that 4iG’s stocks may
become blue chip stocks. Further important tasks are to continuously raise interest in
4iG’s stocks and to increase the free float. These aspirations are supported by the fact
that the Budapest Stock Exchange has foreseen the appearance of a group of investors
who are open to higher-risk but high-yield investment opportunities.
2016 will be the year of building the company! Our objective is to maintain and stabilise
the excellent growth indicators of the recent period.
Trust is our biggest asset. We are grateful to our customers, since the trust they have put
in the Group demonstrates the high quality of our services and proves to all employees of
4iG Group that their extraordinary efforts have contributed to the company’s outstanding
success.
Dr. Gábor Felső
Chairman of the Board, Chief Executive Officer
Yours sincerely,
4IG PLC.
4IG PLC.
4iG Plc.’s predecessor was founded in 1990 by a group of Hungarian developers in order
to make the company, which was initially engaged in software development, a dominant
player in the Hungarian market, which was still an evolving one back then. During
the past more than 25 years, going far beyond the initial target, we have grown into
a holding company, and the business activities of our four subsidiaries, together with
the parent company, cover all segments of the IT market.
After our listing in the stock exchange in 2004, we broadened the scope of our activities
and our product portfolio through several successful acquisitions.
First, Axis Rendszerház Ltd., a supplier of data warehouse, business intelligence and
enterprise solutions, as well as platform independent applications, joined the Group.
Two years later, the Group acquired HUMANsoft Electronics Co. Ltd., an undertaking
with a significant market presence in the areas of hardware and software sales, systems
integration and enterprise IT operations. Subsequently, our portfolio was expanded
through the acquisition of Banksoft Ltd., a company specialising in the development of
banking information systems. Two years ago, bearing in mind our innovation efforts, we
entered the 3D market by means of the foundation of Mensor3D Ltd.
Last year, 4iG Plc. fully acquired all of the Group’s member companies. From that moment
on, operating as a classic holding company, business activities have been centralised and
cost-effective and centralised operations have been set up for the Group.
Last year’s task was to start the implementation of a medium-term plan that aims to
realise the content behind the four I’s contained our name: International, Innovative,
IT and Investment.
94IG PLC.
INTERNATIONALThe penetration of international markets is one of the pillars of 4iG Group’s growth.
Currently, we are working for a number of large international corporations both in
Hungarian and foreign markets.
A medium-term international commercial strategy has been developed, which
summarises the basics of our expansion beyond the borders of Hungary. We have taken
into consideration our currently available products and services and the markets where
they could be successful. In this light, we will improve both organisational and resource
allocation so that we may achieve a similar success at the international markets as in
Hungary.
INNOVATIVEThe fundamental goal of each of our member companies is to provide innovative and
efficient solutions to our customers. We are continuously seeking new technological
solutions; furthermore, we have implemented a great deal of proprietary future-proof
projects throughout the years. HUMANsoft Electronics Co. Ltd. has realised several R&D
projects that aimed at supporting undertakings operating in the agricultural sector to deal
more efficiently with challenges related to the unpredictable weather. With its Business
Intelligence and Big Data services, Axis Rendszerház Ltd. makes it easier for managers
to take responsible decisions. Banksoft provides solutions for customers to resolve IT
problems associated with the transition to reporting under IFRS. Finally, Mensor3D Ltd.
has grown into an independent company from an earlier innovation project, which was
implemented in the framework of a grant program.
ITWe have managed to fulfil our expectations in relation to information technology to the
fullest extent, since we have developed excellent competences in this field, as proven by
our more than 800 active customers. Integrated inter-company operations enable us to
carry out complex major projects.
INVESTMENT4iG is the effective representative of capital. Therefore, we try to exploit any business
opportunities that emerge and grow both within and beyond the borders of Hungary. It
is important for us to add value for owners and shareholders in the long term. In 2015, we
made a big step forward in this area as well; since then, 4iG’s stocks have been more and
more actively traded in the stock exchange. Naturally, there is still room for improvement in
this area, too. Accordingly, we plan to make further investments to achieve our objectives
regarding acquisitions.
”Axis may play a key role in the entry of 4iG to the international markets.”
Attila Merényi
11SUBSIDIARIES
AXIS RENDSZERHÁZ LTD.
For more than 25 years, Axis Rendszerház Ltd. has been a reliable supplier of data
warehouse, business intelligence and enterprise solutions, other specific applications
and related support services, as well as of platform-independent developments both
in the public and the private sectors. By delivering solutions based on leading-edge
IT technologies and products (IBM, Microsoft, Oracle or HP) with short turnaround
times, we have managed to become a dominant player in the Hungarian business intel-
ligence market. Due to our vast professional experience, we are receiving an increasing
number of international engagements.
The traditional function of BI has significantly changed. It is no longer used only
by companies operating in the financial sector, but BI is also capable of providing
information that supports the optimisation of technical and engineering work processes.
Adapting to the needs of the market, our portfolio has been extended to include BIG
DATA technologies and developments that are based on customised multi-platform
technologies. In addition, our services include the complete integration of our solutions,
support and maintenance of major platforms (MS, Oracle, Novell, IBM, HP), as well as
integration of related hardware and software.
Today, our company fully operates at two locations. In addition to the former business
premises in Székesfehérvár, the Board of Directors and experts from all business units
(Development, BI and Infrastructure) work in the Group’s Budapest Headquarters.
The quality of our work is guaranteed by our stable financial and solid professional
background, our software configuration management, project development and testing
methodologies, which are integrated into our development activities, as well as the
Information Technology Infrastructure Library (ITIL) standards introduced in the fields of
operations and support.
Attila Merényi
Managing Director
AXIS RENDSZERHÁZ LTD.
FIELDS OF ACTIVITY: • Data warehouses, business intelligence, planning and controlling solutions.
• Document and records management system compliant with the relevant
statutory requirements (Contentum.Net).
• Expertise in standard and open technologies (relational database
management systems, XML, web Services)
• Development and support of multi-platform software solutions
(Microsoft.Net Framework, Java, Oracle).
• Introduction and support of enterprise solutions (SAP).
• Supporting custom developments and applications,
system integration activities.
13SUBSIDIARIES
OBJECTIVES:• Offering complex, customised
solutions for our customers.
• Continuously providing high-quality
services.
• Expansion and development of
proprietary products (Contentum.
Net, PATER) and integration of new
products into the portfolio.
CERTIFICATIONS: Among others, the quality of our work is guaranteed
by our comprehensive ISO 9001:2008 and ISO 14001:2004 quality
and environmental management systems. In addition, our reputation
is reflected by the fact that for many years, we have been a qualified
supplier in public procurement procedures and an approved supplier of
the NATO. Certifications received from our manufacturer partners: IBM
Premier Business Partner, Hewlett-Packard Enterprise Silver Partner,
Microsoft Silver Partner, Oracle Silver Partner, Novell Silver Partner.
”We are dedicated to delivering services that enable our customers to continue to operate successfully and efficiently, in compliance with the legal regulations.”
Attila Merényi
15SUBSIDIARIES
BANKSOFT LTD.Banksoft Számítástechnikai Rendszerfejlesztő Ltd. was established more than 25 years
ago in order to meet the market demands after the start of a modernisation of the
Hungarian banking system in 1987. The founders intended to leverage the expertise
and many years of professional experience of the company’s staff thought participation
in this financial transformation process.
Owing to the vast experience of the past years, the professionalism of our colleagues as
well as the state-of-the-art customised solutions that we have prepared for our partners,
our Company has been a major player in the Hungarian banking IT market for quarter of
a century. In addition to customised software development, the scope of our activities
covers comprehensive IT consulting, system integration and operation of cross-platform
solutions.
Pursuant to Act CLXXVI of 2015, one of our most important tasks in the coming year is
to assist our customers operating in the financial sector in the smooth transition from
reporting under the Hungarian accounting standards to reporting under IFRS.
Attila Merényi
Managing Director
BANKSOFT LTD.
FIELDS OF ACTIVITY:• Mandatory reporting systems (Hungarian and international).
• Development and/or support of systems used for reporting to public bodies
(State Treasury, Tax and Customs Administration, Central Statistical Office, Ministries).
• Development of management information systems.
• Development of profit calculation systems.
• Calculation of impairment, provisions, contingent liabilities and posting to
the General Ledger.
• Development of a collateral registration system based on various methods used for
collateral allocation.
• Software development and IT consulting for operators of the financial sector.
17SUBSIDIARIES
OBJECTIVES:• Expansion of our customer base in
the financial sector.
• Providing our current and future
customers with cutting-edge
IT solution.
• Successful launch of international
reporting systems (under IFRS).
CERTIFICATIONS: Our main international partner is Wolters Kluwer
Financial Services’ FRSGlobal. In Hungary, Banksoft is exclusively
responsible for marketing and localising their software product.
”We are driven by innovation. We are constantly on the lookout for newer and newer opportunities so that our developments may the serve our customers in the most effective manner possible.”
Gábor Somlyai
19SUBSIDIARIES
HUMANSOFT ELECTRONICS CO. LTD.Founded in 1989, during its more than 25 years of existence, HUMANsoft Electronics
Co. Ltd. has built a comprehensive portfolio of information technology services and
products and become a prominent player in the Hungarian IT market.
Among others, the company is engaged in application development, launch of enterprise
resource planning systems, system integration, IT operations, IT security solutions,
research and development as well as the design of innovative solutions that meet the
requirements of our times. In addition to distribution of the largest IT manufacturers’
products, we provide high-quality repair and troubleshooting services for each brand.
In 2015, we had a very prosperous year, as we successfully implemented every single
business activity that we had planned in advance.
Being a Microsoft LSP (Large Service Provider) Partner, we have been able to significantly
increase our sales revenues derived from the sales of Microsoft licenses. Revenues
originating from the related engineering services have also increased proportionately.
HUMANsoft Electronics Co. Ltd. has also developed an operational methodology, and
Phase II of the framework definition has been completed. This way, similarly to major
outsourcing companies, we are able to operate IT systems on the basis of our own
methodology, which significantly supports our growth.
Gábor Somlyai
Managing Director
HUMANSOFT ELECTRONICS CO. LTD.
Due an increase in the interest in cloud-based solutions, we have successfully completed
a great deal of similar projects, as a result of which customers could obtain scalable,
high-availability, cost-effective data storage, backup and archiving solutions without
having to make significant infrastructure investments.
This year, we have significantly increased our customer base and revenues derived from
IT operations provided to large corporations.
Owing to the availability EU grants, in December 2015, we applied for support for three
research and development projects, in which Humansoft was directly or indirectly
involved.
Our achievements demonstrate that HUMANsoft Electronics Co. Ltd., a prominent, fully
Hungarian-owned IT service provider, is one of the key players in the domestic IT market.
21SUBSIDIARIES
FIELDS OF ACTIVITY: • Information technology services.
• IT infrastructure solutions.
• Business solutions.
• Software products.
• Sectoral integrated enterprise resource planning
systems.
• Application services.
• Repair and troubleshooting services.
• Hardware infrastructure solutions.
OBJECTIVES: • Provision of high-quality services.
• Customer-driven approach.
• International expansion.
CERTIFICATIONS: DELL Preferred Partner, Hewlett-Packard Enter-
prise Silver Partner, Microsoft Gold Competency Partner, Lenovo
Business Partner, HP Inc. Partner First Platinum, EMC Silver Partner,
Cisco Premier Partner, Arcserve Premier Partner, Elo Touch Solution
Authorized Partner, MobileIron Gold Reseller, Veeam Gold Partner,
Veritas Gold Partner, VMware Enterprise Partner, NetApp Gold
Partner, Symantec Gold Partner, Polycom Partner, FUJITSU Select
Partner, Citrix Silver Partner, Intel Gold Technology Provider, Balabit
Gold Partner, Zorp Support Partner, Utimaco Business Partner.
”The foundation of Mensor3D opened a whole new dimension for us – in terms of both innovation and market opportunities.”
Béla Zsolt Tóth
23SUBSIDIARIES
Mensor3D Ltd., which was established in 2014 for the purposes of application and
utilisation of 3D technologies created as a result of an earlier R&Đ project of the Group
relating to 3D technologies.
The know-how developed by us during projects implemented in the previous years and in
the course of our innovation activities is unique in the Hungarian services market. In our
work, we combine a variety of 3D survey technologies, and in this way, we are capable of
digitising and modelling industrial sites of up to several hectares, or designing tools with
micron precision, thus always ensuring a solutions-oriented approach when serving our
customers. During our two years of existence, we have obtained a number of significant
professional references in the fields of architecture, engineering, heritage protection,
BIM and reverse engineering.
MENSOR3D LTD.
Béla Zsolt Tóth
Managing Director
MENSOR3D LTD.
We offer three-dimensional precision survey and related services which enable the preparation of
digital documentation, the development of surface and environment models, as well as post-testing
and analysis with millimetre precision. As a result of our activities, high-resolution and high-precision
images and point clouds may be created, which can be used to:
• prepare virtual 3D walkthroughs,
• create section drawings,
• support accurate and detailed documentation,
• conduct analyses,
• carry out indirect stock-taking,
• carry out any measurements needed for position determination,
• set up and test hypotheses,
• prepare 3D printing,
• create reconstructions and visualisations,
• calculate the volume of landfills with an irregular geometry.
WE ARE OFFERING CUTTING-EDGE SERVICES IN THE FOLLOWING AREAS:• Architecture (documenting, planning, control, monitoring, visualisation).
• Engineering and reverse engineering.
• Industrial applications (e.g. building engineering, quality control).
• Protection of cultural monuments, archaeology, cultural heritage preservation.
• Survey of oil and gas pipelines.
• Disaster prevention.
• Justice (supporting the police, prosecution, court proceedings,
investigations, fire investigations or expert activities).
• Tertiary sector (e.g. tourism development).
25SUBSIDIARIES
FIELDS OF ACTIVITY: Comprehensive point cloud services including consulting, survey, processing,
production of various outputs, among others, the following activities:
• Detailed 3D laser scanning of building complexes, buildings, parts of buildings, interiors.
• Preparation of as-built drawings.
• Digital building reconstruction.
• BIM (Building Information Management, Building Information Modelling).
• Visualisation.
• GNSS-based measurement and property line marking.
• Survey of buildings’ environment.
• Contour mapping, digital elevation modelling.
• Regular 3D scanning for the purpose of monitoring.
• Building engineering survey and documentation.
• Industrial 3D scanning and preparation of 2D technical drawings.
• 3D modelling.
• 3D quality control.
• 3D printing.
• Digital archiving and recording the current status of archaeological sites and artefacts.
• Taking aerial photographs.
• Production of materials for exhibitions (reconstructions, videos and photos,
high-resolution models).
OBJECTIVES:• Keeping our dominant market position in the fields of architecture,
engineering and cultural heritage preservation.
• Searching for additional usage and exploitation options in
the designated segments.
• Researching the applicability of new and existing connectable
technologies.
• Expanding the scope of cooperative partners.
• Further opening towards international markets.
TUNED TO INNOVATION
27INTERACTIVE CONTENT
PLEASE SCAN THE QR CODE AND DOWNLOAD OUR APP. This way, you can view our summary about the past year, prepared using Augmented Reality (AR) technology.
Tamás KoppányDeputy Chief Financial Officer
Dr. Gábor FelsőChairman of the Board, Chief Executive Officer
Gábor SomlyaiChief Sales Officer
”Each member of a group of companies has the potential to add value. Our task is to exploit these opportunities.”
Béla Zsolt Tóth
29OUR INNOVATIONS
OUR INNOVATIONS
Our long-term objective is to become one of the most dynamic Hungarian-owned
companies in the country, operating with local staff. We are building on the experience
gained in the course of implementing more than a dozen of research and development
projects and developing proprietary products with support from the European Union;
furthermore, we are using the most advanced technological solutions to satisfy our
customers’ needs.
In addition, our portfolio features a great deal of technological innovations, which hold
their value and contribute to the efficient operations of our customers in the long run.
Béla Zsolt Tóth
Managing Director
3D SCANNING AND SURVEY
3D SCANNING AND SURVEY
3D LASER SCANNING AND 3D DIGITISATION
During the scanning process, the entire geometric structure of a building in
translated into digital files by the device, without having direct contact with the
object. The thus created data set is processed and prepared for the implementation
of additional tasks (e.g. monitoring, quality control) using special software.
The most advanced ground laser scanners are able to survey up to 1 million points
in a single second. The results of ground laser scanner surveys are connected to the
Unified National Projection (Egységes Országos Vetület, EOV) using a GNSS-based
(Global Navigation Satellite System) technology. Ground scanners used by us are
classified as ‘Class I’; thus, they do not pose a risk to human health.
Point cloud files and high-resolution digital photos produced by means of
3D scanning enable a more complete and accurate documentation of buildings.
QUALITY CONTROL
Standard measurement techniques used in quality control are time-consuming
and expensive. This is why the emergence of 3D scanning is a revolutionary step,
as it supports the comparison and checking of the model generated and the initial
CAD data. A measurable, colour-coded map is part of the measurement report
produced as a result of quality control, which, using visual tools, clearly represents
the divergences of the implemented geometry and the original designs.
REDUCING DESIGN DEFECTS USING INTERFERENCE CHECKING
Coordination of the design tasks of specialist areas is a critical part of the work
process for every contractor. Traditional 2D coordination solutions are slow,
expensive, involve a high risk of failures and their usability largely dependent on
the updatedness of drawings. BIM-based interference checking conducted using
models produced by means of 3D scanning enables the combination of automatic
geometry-based interference checking with rule-based interference analysis.
31OUR INNOVATIONS
BIM (BUILDING INFORMATION MANAGEMENT)
BIM is a digital representation of the physical and functional properties of a facility.
This is the latest generation of object-oriented CAD systems, in which building
designs are the sum of all the intelligent building objects. A Building Information
Model is a single, logical and consistent source of all information relating to the
building. BIM serves as a reliable basis for the adoption of management decisions
during the entire life-cycle of the building or facility, which, according to the standard
definition, lasts from creation of the first concept to demolition of the building.
3D laser scanning can be effectively used in designing restoration works as well as
in the documentation of their implementation.
3D SCANNING AND 3D DIGITISATION IN MECHANICAL ENGINEERING
3D scanning means a high-precision, three-dimensional digitisation of the visible
surface of any components or products, the size of which may range from a few
millimetres even up to several meters. In case of free-form objects with irregular
geometries or large structures, 3D scanning is a fast and cost-effective method
compared to the time-consuming traditional measurement techniques.
ADVANTAGES OF 3D TECHNOLOGY IN MECHANICAL ENGINEERING: • The time and costs of product development may be significantly reduced.
• At an early stage of product development, a model suitable for testing
can be prepared and printed.
• This model immediately allows functional and ergonomic testing.
• Any changes can be implemented faster and incurring less costs.
• The product’s 3D CAD models can be generated subsequently.
• Product quality control can be partially automated.
• Owing to the visualisation using colour maps, failures can be corrected faster.
• It supports traditional manufacturing methods (i.e. moulds, templates) as well.
HUMANSOFT REPAIR AND TROUBLESHOOTING SERVICES
HUMANSOFT REPAIR AND TROUBLESHOOTING SERVICES
Humansoft Repair and Troubleshooting Services provides leading services in the
Hungarian market. We have created innovative solutions which enhance the quality of
our services in a durable manner. In 2015, as a result of the provisions of our own repair
services and the optimisation of our services, we managed to more than double our
revenues derived from direct repair and troubleshooting services and contracts.
Humansoft Repair and Troubleshooting Services aims to provide its customers with
comprehensive services at the highest possible standard. Accordingly, we constantly
keep expanding the range of our partnerships; thus, through our service partners,
we are able to offer both warranty and out-of-warranty repair services to the products of
an increasing number of manufacturers throughout the country.
Our most important manufacturer partners: DELL, HP, Lenovo, Fujitsu, NetApp, Kingston
(exclusive), ELO (exclusive), Zebra, Lexmark.
SERVICING ROOM WITH ESD PROTECTION
An ESD (Electro Static Discharge) protected servicing room has been set up,
which, provides such a level of protection that goes beyond the manufacturers’
requirements in terms of preservation of the products. The entire is room is ESD-
certified, including the flooring, furniture, lighting, instruments as well as mounting
trays. We constantly ensure an adequate level of humidity; furthermore, special
cleaning agents are used to reduce as much as possible the risk of damaging parts
during repair services. In addition, the staff may only enter the room in an attire
compliant with the standards, after a grounding check – otherwise the door cannot
be opened.
The success of this ESD servicing room is demonstrated by the fact that by the use
of this clean-room, the number of failures generated by ESD has declined by 75%,
and thereby we have achieved significant cost reductions. In addition, the system
sends automatic alerts to the employees concerned on the basis of SLAs associated
with the final and current statuses of trouble tickets. It supports the organisation
and supervision of daily work by means of real-time reports, enabling immediate
interventions. In addition, it renders logistics processes more efficient, as it integrates
all logistics processes used in repairs works (procurement from manufacturers
and spare parts).
33OUR INNOVATIONS
ELECTRONIC WORKSHEET
A proprietary electronic worksheet has been created that fully replaces paper-
based administration, eliminating double administration and thereby excluding any
discrepancies between the information entered electronically into the trouble ticket
handling system and the information recorded manually on hard copy worksheets.
All data generated in the system is available in real-time to the managers in charge
of repair services and any colleagues involved in a particular assignment, namely
the following: name of the person who carried out a certain job, its date and time,
description of the task and the relevant geographical coordinates. It contains
information about the entire portfolio; this way, when a failure is reported, employees
will immediately see the pertinent requirements and SLAs.
In addition, the system has a customer-friendly functionality; it notifies customers
about every important stage of individual tasks or repairs by e-mail. Notifications
may be fully customised for each customer and freely configured for each device
covered by contract.
DEVELOPMENTS TARGETING THE END-USER MARKET
In 2015, we began a series of developments targeting the end-user market. We have
started to create an own microsite for the repair services targeting end users, as well
as to design a webshop to meet today’s needs. Their launch is expected at the end
of the second quarter of 2016.
PATER RAILWAY INFRASTRUCTURE AND DIAGNOSTIC EXPERT SYSTEM
PATER RAILWAY INFRASTRUCTUREAND DIAGNOSTIC EXPERT SYSTEM
PATER is a railway track diagnostic and decision support system. The purpose of the
modular, multi-lingual PATER system is to provide support to track maintenance
professionals in the analysis and planning tasks necessary for their daily work. It is
based on detailed records, easy availability as well as high-quality graphic display and
comparability of technical and inspection data. Within the framework of this support,
among others, the system makes recommendations for maintenance plans and/
or even applicable speed limits. Axis developed this web application, which is based
on the Microsoft.Net technology, on the basis of the technical know-how provided
by MÁV Központi Felépítményvizsgáló Ltd. (Hungarian State Railways Central Track
Superstructure Inspection Ltd).
This software program allows the registration and continuous updating of the track
superstructure and technical data in an Infrastructure Database (ID) as well as of
measurement data in a Measurement Database (MD). The Traffic Safety (TS) module
offers a comprehensive assessment of the state of the entire track network in terms of
speed. The additional special modules of this software program, i.e. the Maintenance
Scheduling (MS) and Technology and Cost (TC) modules, allow users to plan the necessary
maintenance work. Through the graphical display of the stored data and the Analysis (A)
service, this program makes the daily performance of track maintenance and operational
tasks as well as the decision-support much easier. It also supports the documentation of
maintenance work and the correction of faults. The program’s registration and analysis
components may be flexibly adapted to the particular technical needs of different railway
companies and other companies engaged in rail transport.
35
MOBILE DEVICE MANAGEMENT
The use of mobile devices is more and more integrated into business processes in almost all
areas of the value chain. The flexibility and speed offered by these devices (smartphones
and tablets) is one of the key drivers of business development. Multinational companies
are spending an increasing portion of their IT budget on digital developments, which
mainly focus on the use of mobile devices. This global megatrend means that, in the near
future, a significant proportion of business processes and activities will be carried out
on these devices. In addition to the benefits offered by mobile devices, more and more
people realise the data security risks inherent in this trend as well as the management
and operational problems related to the mass use of such devices. Mobile Device
Management (MDM) tools offer a solution for these two basic problems. They provide
adequate protection for mobile devices, the use of which is becoming increasingly
widespread, as well as for corporate data assets stored on them or available on the
company’s central servers through such devices. In the future, cybercrimes, i.e. crimes
that use remote mobile access or are committed using lost or stolen mobile devices,
is expected to multiply. The resulting damages of companies are also anticipated to grow
dramatically, thus defence through the use of MDM tools will become more intense than
currently, resulting in an increase in the number of system introductions as well.
MDM tools will gain further importance as the number of mobile devices used for
business purposes and that of corporate mobile applications continues to increase.
IT organisations will only be able to ensure the economical operation and high-availability
of these devices and the centralised distribution and updating of applications as well as
to exercise effective control over these devices with the help of MDM solutions.
OUR INNOVATIONS
BUSINESS INTELLIGENCE (BI)
BUSINESS INTELLIGENCE (BI)
In the course of their daily activities, businesses accumulate vast quantities of date assets,
which are usually stored in isolated systems. In order to be able to access information in
an efficient and secure manner, they need a system that integrates and analyses data. Fast
changes in financial systems and the economic situation requires rapid responses. This
requires business managers to deal with the variety of new decision-making situations.
Business Intelligence (BI), which is a decision-support system expressly devised for
managers and the staff engaged in operational tasks, serves exactly this purpose.
BASIC FUNCTION
PREPARATION OF REPORTS
Every BI measurement is based on a set of information that must be organised in
a single structure. Data warehouse is a typical analytic software supporting this
process. The BI system, which is built on a data warehouse, is capable of running
customised queries and generating reports and visual presentations.
CORPORATE PLANNING
Another way to support decision-making is the development of a corporate
planning system that can be customised to individual needs, thus supporting the
entire business planning process, incorporating goal setting, business planning,
reporting, analysis and forecasting activities. In the course of predictive analysis,
experts analyse the future implications of changes, in an attempt to find out what is
needed to reach the strategic and operational objectives of the company.
COMPREHENSIVE BI
The traditional function of BI has significantly changed. It is not only used by
companies in the financial sector, but these systems are also able to provide
information in the technical and engineering fields, thus enabling the optimisation
of work processes. In the last period, companies operating in the tertiary sector
have also started to explore the potential of social data and that, indeed, it is worth
involving the information derived from such sources in their analyses.
USER-FRIENDLY SOLUTIONS
The majority of our customers expressly require that after their implementation,
systems should not be highly IT dependent. Therefore, in any case, we deliver
systems that do not require special IT knowledge from users, so that the customers
themselves can implement changes and run queries.
37
BIG DATA
With the help of BIG DATA, we derive information from data so that customers may make more efficient business
decisions in the future and get a comprehensive picture of their environment, both in terms of historical information
and the future.
In order to succeed in business, data assets available for the organisations should be fully exploited. This can be
done by analysing the information available to the organisation (BI) and using external digitised data, for which
the use of Big Data is an essential condition.
The growing popularity of BIG DATA in Hungary will bring unpredictable changes, since these new data collection
and processing methods can open up new possibilities, which may radically change the existing business models.
With the development of business intelligence and cognitive systems, BIG DATA solutions are expected to penetrate
the market. The emerge of systems capable of processing large quantities of unstructured data is expected, which,
through their cognitive capabilities, are able to generate more accurate and reliable business information during
their use and, integrating them into the existing BI systems, are able to return such information into the systems
supporting business processes.
ISSUES TO WHICH WE OFFER SOLUTIONS:• Data (in a relational sense) are not structured.
• What information will be used for and in what form cannot be predicted exactly.
• Algorithms can be well parallelised; however, they require robust computing
and processing capacities.
• An increase the data size may result in performance issues.
• It is impossible to estimate in advance the increase in the data size
with the passage of time.
• The speed of data generation is faster than the data storage speed
(in connection with data size).
• Strict time frames limit the querying, analysis and utilisation of data and
the related automated decision-making (in connection with data generation
speed, data size and processing capacities).
OUR MANUFACTURER PARTNERS:
• IBM
• HP
• Oracle
OUR INNOVATIONS
”In our opinion, respect for the human, environmental and social factors is the key to long term success – and the only way we think is worth doing business.”
Judit Hegedűs
394IG FOR SUSTAINABILITY
4IG FOR SUSTAINABILITYFor 4iG, sustainability is a key value that determines all of our actions. It so no secret that
our Group aims to achieve outstanding business performance. However, this goal must
be aligned with the interests of our employees, customers, suppliers and the needs of
our environment and society. Only in this case, success is considered as a real success
and is sustainable in the long term.
4iG Plc. is committed to open, two-way communications and cooperation with our
partners. We agree with and embrace the principles and values of sustainability. We want
to lead by example among IT companies, and manage our member companies in the
light of these principles. In accordance with these corporate principles, in April 2016,
4iG Plc. joined the Business Council for Sustainable Development in Hungary (BCSDH),
which is the Hungarian representative of a global international organization called World
Business Council for Sustainable Development (WBCSD). The more than 200 large
corporations that are members to this organisation make up nearly 30% of the GDP of
Hungary. 4iG Plc. and the other members of BCSDH collectively support one another
in a complex interpretation of sustainability, and wish to actively promote the practical
implementation and application of the three pillars of sustainable development, namely
the principles of economic efficiency, ecological balance and social quality of life, and, this
way, increase their competitiveness and also contribute to the sustainable development
of the Hungarian economy and society through new and innovative solutions.
Judit Hegedűs
Deputy Chief Operating Officer
bcsdh
ETHICAL BEHAVIOUR
ETHICAL BEHAVIOUR
Our company group is very much committed to the principle of equal opportunities,
acknowledging every person’s right to be treated with dignity and respect so that they
may live as people of equal dignity. We respect our employees’ right to privacy and other
freedoms. We refrain from breaching or circumventing human rights’ regulations and
condemn any such behaviour.
Within the 4iG Group, we aim to prevent and counteract any negative discrimination
of our employees. This included cases relating to hiring, employment, training, further
education, benefits and other aspects of employment.
Here at 4iG, we firmly believe that an employee’s age, sex, nationality, marital status or
health condition has zero effect on their value to the society. Propagating solidarity is in
the interest of all members of the society.
TRANSPARENT OPERATIONS
Being a company listed in the stock exchange, 4iG assigns special significance to
transparent operations and providing authentic information to investors. Our annual
results are made public in a transparent manner in order to provide a true and fair view
of the financial and income position, evolution as well as the assets and liabilities of
4iG Plc. In addition, the 4iG group aims, in accordance with its Code of Ethics, to uphold
the principle of partnership within its employment relations by creating transparent
contractual relationships. The 4iG Group is committed to creating jobs where employees
can work in an environment cultivating mutual trust, respect of others and honouring
their dignity. The market competitiveness of the 4iG Group is based on products and
services of high quality and favourable prices. Fair and balanced market competition is
essential, and 4iG Group is committed to getting ahead of its competitors in an ethical and
legal manner. We support fair and open competition in domestic as well as international
markets. 4iG Group rejects corruption and takes decisive action against all of its forms.
This rejection of corruption is not only a legal and ethical obligation, but it is also in
the commercial interest of everyone. Corruption threatens legal security, undermines the
principle of fairness, hinders economic development and distorts market competition.
414IG FOR SUSTAINABILITY
DEVELOPMENT AND OPERATION OF ENVIRONMENTAL INFORMATION SYSTEMS
As a determining factor within the IT market, 4iG Plc. considers efficient energy
consumption and the propagation of environmental awareness as important areas of
improvement. All companies within our Group have introduces the ISO 14001:2005
environmental management system and implemented several successful environmental
projects in the past years. One of these was the AGRON2 Project, a part of the HUMANsoft
Electronics Co. Ltd.’s R&D project which consisted in the development of a prototype
for a decision-support information system based on a sensor network and a complex
pest control database in order to improve the productivity and cost-effectiveness
of agricultural enterprises. Another featured green-project was ENVIROTOX, in which
a unique method was devised for the eco-toxicological testing of environmental samples.
The prototypes developed via the projects described below were also structured in
a modular way in support of sustainability. In the ever-changing economical environment,
it is not viable to build monolithic systems which are difficult to modify or expand.
The modules of our systems, due to the up-to-date documentation and the standardised
methodologies applied, can be quickly and easily, thus more cost-effectively tailored to
the organisational or regulatory changes that may arise. Another important aspect is
that the modules are more susceptible to the requested modifications or suggestions
of optimisation and further development which may arise upon actual implementation
and regular operation. It is a well-known fact in IT that code reuse, pre-developed
standardised code libraries as well as detailed and standardised documentation all play
a role in achieving that later development be done more quickly (modular structure based
on pre-made units and minimal adoption work), cheaply and securely (with the already
tried and tested pre-made units, possible faults are limited to the interlocking parts and
the additional development made) than in previous, monolithic systems. All of this makes
our developments more competitive, and, besides giving young entrant IT professionals
a chance to get into the business, it also makes it possible for more experienced
colleagues to concentrate on more attractive tasks requiring higher qualifications.
During the realisation of our projects, we have also undertaken to adhere to environmental
considerations upon the acquisition of equipment, products, raw materials and services.
During our acquisitions we favour suppliers producing environment-friendly goods using
demonstrably environment-friendly technologies.
DEVELOPMENT AND OPERATION OF ENVIRONMENTAL INFORMATION SYSTEMS
Over the course of the projects, as well as the upkeep period, only an insignificant amount
of waste is generated. Wastes consist of paper used during the project and the occasional
equipment parts that need to be replaced at a later time. Even during the administration
of the projects, we used environment-friendly, recycled paper for printing and copying.
Later, during the upkeep period, paper consumption may even be completely terminated,
depending on the company’s decision. If some amount of paper consumption is needed
after all, environment-friendly, recycled paper is to be preferred – which also have a job-
creating effect. Naturally, we collect paper waste selectively, thus ensuring its reusability.
Waste equipment parts (e.g. batteries) are considered hazardous waste and are stored at
HUMANsoft Electronics Co. Ltd.’s hazardous waste collectors and transported periodically
to our contractual partner specialised in recycling them. Toner cartridges in our printers
and copiers are also recyclable and, upon buying new ones, are given back to the supplier
who will see to their reuse.
During and after the projects we always assign special importance to the notion of
a paper-free office. From the beginning of any project we favour e-mail as the main
channel of communication and will also suggest to later customers to follow this practice
during the upkeep period.
We consider it important that our co-workers taking part in the projects contribute to
our endeavours in an environment-conscious manner as well. To this end, all co-workers
joining the project receive a quick briefing on our expectations: placement of waste,
locations of hazardous waste collectors, guidelines for a paper-free office, mandatory
use of recycled paper. In our experience, each of these quick briefings is a long-term
‘investment’, for the co-worker in question will be able to utilise the learned material in
later projects as well. In addition, the values of waste recycling, economic use of material
and protection of the environment will be internalised by the people, and thus we too can
contribute to global environmental protection.
434IG FOR SUSTAINABILITY
SUSTAINABILITY PROJECTS
AGRON2 PROJECT
The goal of the AGRON2 project was the improvement of the efficiency of agricultural
production by providing up-to-date data for farmers working a given area on the
physical attributes of the soil, the expected weather conditions and several relevant
macro-economical processes, all within the confines of a user-friendly, integrated
system. Farmers were given the opportunity, for example, to make a decision, based
on the amount of soil moisture and expected hours of sunlight, whether it is necessary
to expedite the harvest of a produce or whether it is more beneficial – taking the
global market into account – to hold off on it. Making production management more
calculable will improve the income-generating ability of agricultural plots, making
their utilisation more economical on the long term, and thus making sustainable
agriculture a reality.
The project reformed the planning phase of plant cultivation previously done
manually or using short-range systems with high energy consumption and
high maintenance costs. The equipment used to take measurements is highly
energy efficient (e.g. they use solar cells, which is a renewable energy source).
Data collection, forwarding and processing are all done within a closed, automated
system electronically, which is also highly energy efficient. Electronic processes
also completely eliminate the need for paper use. The results of the processing
are displayed on the monitor, can be formatted as needed and saved as a file.
The materials generated can be stored electronically for the users as long as needed,
and can at any time be reproduced in paper form as well (e.g. in the case of an
examination). Currently, existing technologies do no enable a more energy-efficient
and environment-friendly operational method than this.
For the realisation of the project, we have also undertaken to prepare periodic
environmental health risk evaluations which we have handed in to HUMANsoft
Electronics Co. Ltd. upon the conclusion of the AGRON2 project. This risk evaluation
included the inspection of work equipment, working environment and other
processes, and the measures taken with regards to them. The results of the inspection
are intended to further the sustainable development of HUMANsoft Electronics Co.
Ltd. and the preservation of human resources in terms of health and ergonomics.
SUSTAINABILITY PROJECTS
AGROMAX PROJEKT
The AgroMAX project’s objective was to develop a comprehensive, integrated
system capable of supporting all productive and operative processes of agricultural
production and processing enterprises. Utilising the achievements of modern
agricultural research, the prototype created as the result of the project proved
that comprehensive IT support can be provided for agricultural enterprises within
a single integrated system. Agriculture has specific needs which are not attended
to by other integrated managerial systems currently on the market. Our product
offers to fill this gap.
The end product of the projects may contribute significantly to giving a boost to
Hungarian agriculture as well. Currently, the agriculture of Western-Europe is about
five times more efficient than that of Hungary. Our product also aims to improve on
this rather poor efficiency.
FOODMAX PROJEKT
The FoodMAX project aimed to develop a prototype of a module for a complex,
international company management system supporting its food safety and food
protection processes, capable of supporting the food safety and food protection
processes of primary food processing and producing enterprises. The project
enables enterprises to improve upon their food safety performance related to food
protection, in light of the new, complex practice of food production. To this end,
the prototype’s primary function is regarding food safety process regulation, and its
secondary function is food protection against intentional contamination.
International trends show that the first and foremost element of food safety and
protection is prevention. This can be achieved by applying a food safety system
supplemented with sufficient food protection measures, and one should also strive
to minimise the adverse effects of events already occurred. The most efficient
framework for this is a complex management system which provides data recording,
storage and processing methods throughout the whole food chain, in every area of
production management.
Production management requires the collection and management of data not just
from the direct suppliers but other interested parties as well (suppliers of suppliers,
or their producers). The integrated management of processes (flow of material,
product and information), and the recording and processing of data on a unified
interface are also important. Thus a raw material or a product can be fully identified
and tracked within the food chain. Because of this function this project can easily
be linked to the results of the AGRON and AgroMAX projects, for the base materials
of the food industry mostly come from agriculture, and they often require special
454IG FOR SUSTAINABILITY
storage, transport, etc. conditions (e.g. the closed freezing chain of milk or meat,
which must be trackable in accordance with strict official regulations).
During the project we have taken into account the current and national-level
considerations of the sustainable food processors. These include the favouritism
towards local suppliers in light of sustainability and cost-effectiveness, as well as
the minimisation of food waste. Any of these aspects can only be achieved with
comprehensive, integrated logistics.
EHEALTH8 PROJECT
As a result of the eHealth8 project, comprehensive, integrated and unified methods
and solutions were created which made possible the rationalisation, differentiation
and improvement of the efficiency of the health service system.
The goal of the project was to create a long-distance health service technological
platform which, based on its comprehensive approach, would be able to generate
real business value and social benefit in the field of medicine. The project broke away
from usual practice of isolated development of fields otherwise linked together,
and for the common purpose proceeded with an expansive development of health
services processes, their management, and applicable information and measurement
technologies, and also taking economic considerations into account. In addition,
through the evaluation of the system and the protocols from a cost-effectiveness
and health benefit point of view, it was also ensured that the application of
the developed solutions would be economic.
The integrated approach – based on the cooperation of different disciplines and
fields of science and their mutual effect on each other – makes it possible for
the new products and methods developed by science and technology to merge
organically into the commercial and social structures which will become their
consumers and beneficiaries. That is how integration facilitates the usefulness
and actual value generation of the products created via the process of innovation,
while also contributing to the development of a ‘livable’ health service system
that is cost-effective and nationally sustainable for a longer term.
Since the project devised its principles for Hungarian medicine based on international
experiences, the new protocols could be considered novelties outside of Hungary
as well. This could also prove to be significant export opportunity from a national
point of view – considering the international attention Hungarian medical research
is receiving.
COMPANY MANAGEMENT
COMPANY MANAGEMENT
DR. GÁBOR FELSŐ Chief Executive Officer
JUDIT HEGEDŰS Deputy Chief Operating Officer
BÉLA ZSOLT TÓTH Deputy Chief Strategy Officer
TAMÁS KOPPÁNY Deputy Chief Financial Officer
GÁBOR SOMLYAI Deputy Chief Sales Officer
MANAGEMENT:
DR. GÁBOR FELSŐ Chairman of the Board of Directors
JUDIT HEGEDŰS member of the Board of Directors
BÉLA ZSOLT TÓTH member of the Board of Directors
ISTVÁN FEHÉR member of the Board of Directors
DR. ZSOLT KOVÁCS member of the Board of Directors
BOARD OF DIRECTORS:
DR. CSABA KEREKES Chairman of the Supervisory Board
SUPERVISORY BOARD:
47CERTIFICATIONS
CERTIFICATIONS
4IG OWNERSHIP STRUCTUREShareholders with a stake exceeding 5%, as of 30. 11. 2015.
Dr. Gábor Móricz10,72%
Tief Terra Ltd. 6,21%
Kaptár Plc. 9,40%
Vilmos Vaspál6,27%
István Fehér 12,30%
Edit Vincze6,65%
HS Board Ltd.5,67%
Free Float42,78%
”The key to stable long-term business is transparency. We believe that ethical behaviour pays off economically as well.”
Tamás Koppány
49FINANCIAL REPORT
After a dynamic growth in 2014, our Company embraced a new challenge to further
strengthen this trend and keep, or possibly even increase, its pace of growth.
For enterprises that have survived the financial crisis and thus demonstrated their
adaptability, expectations of dynamic growth should present no hurdle. The rebranding
and reorganisation completed have proven to be a success, and the conditions are
set for our further development.
Our company set dynamic growth, market building and further streamlining of
the company group’s operation as its main objectives for the year in question.
In 2015, our Group had the most successful year of its existence; and performed better
than in any previous year as regards both sales revenues and effectiveness.
The Group’s consolidated sales revenues under IFRS amounted to HUF 16.5 billion,
which represents a 26% increase over the previous year. However, EBITDA, the indicator
which best describes the Group’s effectiveness, was in excess of 927 million forints, which
represents a more than 53% increase!
We also saw a significant increase in terms of headcount. Our staff grew from 350 people
compared to 306 people in 2014.
At the same time, the efficiency of this increased team has also improved significantly,
which is proven by the 30 percent increase in EBITDA per employee.
An important change is that all of our member companies are now wholly owned by
4iG Plc.; thus, the parent company can indeed operate as a classic holding company.
The transformation of the 4iG group started in 2014 and continued into 2015. We devised
a new marketing strategy and proceeded with structural reforms within the group.
A new, unified accounting and information system better suited for its requirements was
introduced to each member company. Redundant parallel activities were ceased and
the centralisation of services activities also proved successful.
FINANCIAL REPORT
Tamás Koppány
Deputy Chief Financial Officer
FINANCIAL SUMMARY
Our company group is adapting well to the technological changes. In order to keep
up with progress and trends, and to retain competitiveness, continuous training and
efficient management of the knowledge accumulating within the company is needed.
Well-grounded and careful selection of applied technologies is critical in order to
keep the Company ahead of its competitors but also to work with tested technologies
applicable well in practice. That is why we consider EU-funded R&D projects, which
facilitate the creation of innovative solutions based on cutting edge infocommunicational
technologies, important. With these developments new market segments (market gaps)
can be targeted which may provide the Company with steady revenue in the future.
These sectors include environmental protection, the food industry, historic preservation
or architecture, to which we have paid special attention throughout the year.
Besides HUMANsoft Electronics Co. Ltd., our subsidiaries, which are enjoying the
beneficial effects of reorganisation and changes in leadership, such as Axis Rendszerház
Ltd. and Banksoft Ltd., have also contributed significantly to the accomplishments of
our company group this year. The after-tax profit of Axis Rendszerház Ltd. increased
from HUF 11 million to HUF 175 million, while that of Banksoft Ltd. from HUF 9 million
to HUF 27 million.
After the centralisation of our back-office activities in 2014, we spent 2015 to prepare for
an upgrade of our recording, accounting, controlling and managerial information system
to Microsoft Dynamics AX-2012. From 2016, the company group works with the more
modern system of AX-2012, with better support for economical analyses.
Our 2014 and 2015 investments into reorganisation, market building and developments
will expectedly come into further fruition in the next years.
Financially, our company’s exposure risk to our customers continues to be significant.
The market experienced a slight improvement in willingness to pay, but has still
not reached an adequate level. Governmental organisations actively supported
IT developments – primarily from EU funds – throughout the year, and the willingness
to invest within the sector of small and medium-sized enterprises (SMEs) also saw
an increase. The technological replacements, investments continued.
Our company follows a conservative currency policy and covers its payment obligations
towards its manufacturers (import), as well as its more significant foreign currency
denominated trade receivables by means of FX futures, which resulted in a minor
exchange loss in 2015.
51FINANCIAL REPORT
Our financial situation continues to be stable and sufficiently supports the achievement
of even higher effectiveness. The additional financial requirements for growth were
supplemented by bank credit.
The average stock price of 4iG shares (1,833 forints) was 9.08% lower than the average
price for the 2014 business year, and the closing price of 31 December 2015 was
2,050 forints, which is 1.99% higher than the closing price of 2014. Market capitalisation
of 4iG on 31 December 2015 amounted to 3.9 billion forints.
The company group’s management seeks to strengthen its position on the growing
IT market, and conquer new market segments while maintaining its existing customer
base. Through the executed reorganisation and the measures taken towards cost-
effectiveness, the objective is a more pronounced increase of performance indices.
The two pillars of the continuing growth of our company group: market penetration
in Hungary and internationally.
Consolidation of the Hungarian market continues, in which we see great potential
for growth. Thanks to this, 4iG, as a public limited company, effectively fills a market gap.
An international commercial strategy has been created which summarises the basics of
our expansion beyond the borders of Hungary. Key areas and services were defined,
as well as countries where their accomplishment may become a reality. To this end,
the management is prepared to institute the necessary changes in an organisational
level as well as with regards to resources.
FINANCIAL REPORT
CONSOLIDATED COMPREHENSIVE INCOME STATEMENT UNDER IFRS, AS AT 31. 12. 2015.
Consolidated comprehensive income statement (unless otherwise indicated, data in thousand HUF)
2015 2014
Net sales revenues 16 486 463 13 049 492
Other operating income 533 725 547 439
Total income 17 020 188 13 596 931Goods and services sold 11 631 905 9 245 080
Operating expenses 1 810 428 1 692 941
Payments to personnel 2 484 635 1 993 575
Other expenditures 166 236 60 664
Operating expenditures 16 093 204 12 992 260Earnings before interest, taxes, depreciation and amortisation (EBITDA) 926 984 604 671Depreciation and impairment 440 831 109 014
Earnings before interest and tax (EBIT) 486 153 495 657 Income from financial transactions 158 495 140 875
Expenditures on financial transactions 192 870 205 975
Profit (or loss) before taxes 451 778 430 557Income taxes 138 062 82 391
Profit (or loss) after taxes 313 716 348 166Other comprehensive income - -Total comprehensive income 313 716 348 166
Earnings per share (in HUF)Basic 167 185
Diluted 167 185
Of the profit (or loss) after taxes:Share of the parent company 237 929 333 397
Share of the external owner 75 787 14 769
Of the total comprehensive income:Share of the parent company 237 929 333 397
Share of the external owner 75 787 14 769
53FINANCIAL REPORT
CONSOLIDATED BALANCE SHEET OF 4IG PLC. UNDER IFRS AS AT 31. 12. 2015.
Consolidated balance sheet (unless otherwise indicated, data in thousand HUF)
ASSETS 2015 12 31 2014 12 31
Long-term assets581 780Tangible assets 418 194
Intangible assets 1 065 234 1 010 368
Deferred tax assets 39 779 16 692
Goodwill 963 146 1 099 206
Other investments 122 193 56 387
Total long-term assets 2 608 546 2 764 433
Current assetsCash and cash equivalents 655 344 518 509
Accounts receivable 3 433 409 3 864 035
Other receivables, prepayments and accrued income 389 008 642 620
Actual income tax assets 64 389 -
Securities 350 222 -
Inventories 422 520 588 366
Total current assets 5 314 892 5 613 530
Total assets 7 923 438 8 377 963 LIABILITIES
Shareholders’ equitySubscribed capital 1 880 000 1 880 000
Capital reserve 1 074 500 1 112 750
Accumulated profit reserve 641 974 556 706
Parent company’s total share of the shareholders’ equity 3 596 474 3 549 456Non-controlling interest - 157,234
Total shareholders’ equity: 3 596 474 3 706 690
Long-term liabilitiesProvisions 119 355 32 382
Finance lease liabilities 34 294 28 530
Total long-term liabilities 153 649 60 912
Short-term liabilitiesAccounts payable 2 097 831 2 702 086
Short-term credits and loans 939 000 1 048 881
Other short-term liabilities, deferred income and accrued expenses 1 121 005 852 580
Finance lease liabilities 15 479 6 814
Total short-term liabilities 4 173 315 4 610 361
Total liabilities and shareholders’ equity 7 923 438 8 377 963
FINANCIAL REPORT
Statement of Consolidated Cash Flows (unless otherwise indicated, data in thousand HUF)
Cash flow from operating activities 2015 2014
Profit (or loss) after taxes 313 716 348 166
CorrectionsDepreciation and impairment for the year 440 831 109 014
Impairment of customer relationships 4 715 -
Provisions 86 973 (19 323)
Deferred taxes (23 087) 11 216
Changes in working capitalChanges in trade and other receivables
Changes in inventory 425 911 (1 636 860)
Changes in trade payables 165 846 428 515
Changes in finance leasing (350 777) 1 560 875
Changes in other liabilities 5 764 (3 830)
Net cash flow from operating activities 204 170 (308 627)
Működési tevékenységből származó nettó cash flow 1 274 062 489 146
Cash flow from investing activities 2015 2014Sale (purchase) of tangible assets (185 148) (418 760)
Purchase of intangible assets (10 903) (616 049)
Purchase of securities (350 222) -
Additional payments to project companies (65 807) -
Acquisition of interests (260 001) (27 466)
Net cash flow from investing activities (872 081) (1 062 275)
Cash flow from financing activities 2015 2014Issuance of long-term debt - 28 530
Extension (repayment) of bank loan (109 881) 613 638
Extension (repayment) of financial lease 8 666 (1 541)
Payment of dividend (163 931) -
Net cash flow from financing activities (265 146) 640 627Net changes in cash and cash equivalents 136 835 67 498
Opening balance of cash and cash equivalents at the beginning of the year 518 509 451 011
Closing balance of cash and cash equivalents at the end of the year 655 344 518 509
STATEMENT OF CONSOLIDATED CASH FLOWS OF 4IG PLC. UNDER IFRS AS AT 31. 12. 2015.
4iG PLC.
H-1037 Budapest, Montevideo u. 8.Telephone: +36 1 371 2910 • Fax: +36 1 371 2911E-mail: [email protected] • www.4iG.hu