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Presentation of consolidated results of the
Sygnity Group for H1 2009
Warsaw, 1 September 2009
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.
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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
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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)
141 149
272 238
281 525
481 020
Total
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
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Sales structure in H1 2009 vs H1 2008
Revenues
[PLN ‘000]
39%
Goods and materials
19%
Products and services
61%
81%
5
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 20042006, 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
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Indebtedness
[PLN ‘000 000]
31.03.2009
30.06.2009
31.08.2009
Loans
-25
-25
-47
Bonds
-64
-70
-37
36
39
21
-53
-56
-62
Cash
cash in an escrow account
Net indebtedness*
* without cash in an escrow account intended for contracts
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Savings program
Launch of a two-stage savings program.
Stage I: Q3 - Q4 2009, Stage II: Q4 2009 – Q1 2010
Reducing the number
and costs of subcontractors
Simplifying the Group’s
structure
Employee lay-off
Freezing temporarily
salaries and bonus systems
Reducing temporarily
the working time and unpaid holiday
Stage I
Stage
II etap II
Closing unprofitable
production lines
Abandoning some
activities
Reducing temporarily
fixed monthly salaries
I etap
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Backlog 2009
Sector
Portfolio of orders 2009
[PLN ‘000]
Banking and Finance
132 206
Public
147 662
Telco-Industry
115 251
Utilities
Other sales
Total
88 639
3 670
487 429
Portfolio of orders for the years 2010-2011 amounts at present to over PLN 130 million
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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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