presentation of consolidated results of the sygnity group for h1 2009 warsaw, 1 september 2009
TRANSCRIPT
Presentation of consolidated results of the Sygnity Group for H1 2009
Warsaw, 1 September 2009
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
Results for Q2 2009/Q2 2008 and H2 2009/H1 2008
[PLN ‘000] Q2 2009 Q2 2008 H1 2009 H1 2008
Revenues 141 149 272 238 281 525 481 020
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
Revenues in Q2 2009/Q2 2008 and H1 2009/H1 2008 by sectors
Sector
[PLN ‘000]Q2 2009 Q2 2008 H1 2009 H1 2008
Public 35 448 138 611 77 125 237 902
Banking and finance 35 064 60 314 78 329 115 020
Utilities 33 674 16 774 54 819 28 063
Telco-Industry 38 088 56 314 69 241 100 372
Others and exemptions (1 125) 225 2 011 (337)
Total 141 149 272 238 281 525 481 020
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
Sales structure in H1 2009 vs H1 2008
Revenues[PLN ‘000]
81%
39%
61%
19% Goods and materials
Products and services
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
Indebtedness
[PLN ‘000 000] 31.03.2009 30.06.2009 31.08.2009
Loans -25 -25 -47
Bonds -64 -70 -37
Cashcash in an escrow account
36 39 21
Net indebtedness* -53 -56 -62
* without cash in an escrow account intended for contracts
88
Savings program
I etap
Reducing the number and costs of subcontractors
Employee lay-off
Freezing temporarilysalaries and bonus systems
Reducing temporarilythe working time and unpaid holiday
Simplifying the Group’sstructure
Closing unprofitable production lines
Abandoning someactivities
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 temporarilyfixed monthly salaries
9
Backlog 2009
Sector [PLN ‘000]
Portfolio of orders 2009
Banking and Finance 132 206
Public 147 662
Telco-Industry 115 251
Utilities 88 639
Other sales 3 670
Total 487 429
Portfolio of orders for the years 2010-2011 amounts at present to over PLN 130 million
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