Asseco Poland

Company Presentation

3

Asseco at a glance

Present in

54countries

Over

22,300highly commited

employees

6th

largest software & services

vendor in Europe

1,813mEUR

sales revenues in 2016

176mEUR

operating profit in 2016

1blnEUR

market capitalization

• Founded in 1991

• The largest IT company in Poland

• Traded on the WSE, included in the WIG20 blue chip index

• International presence

4

Areas of Activity

• Banks

• Insurance companies

• Brokerage houses

• Investment funds

• Leasing companies

• Factoring companies

• Central administration

• Local administration

• Healthcare

• International organizations

• Social services

• Uniformed services

• Education

• Telecommunication

• Energy sector

• Utilities

• Gas sector

• Manufacturing, Trade and Services

• FMCG

• Multimedia

Finance Public Sector Enterprises

InsuranceSapiens International

ERP Asseco Enterprise Solutions

Developing international competence centers

PaymentAsseco South Eastern Europe

6

Track Record of Successful Acquisitions

• More than 60 successfulacquisitions since 2004

• Increased revenues and profitability of acquired companies

• Experience in integrating knowledge of local markets, customer relations and innovative solutions

20122004 2005 2006 2007 2008 2009 2010 2011 2013 2014 2015

2014• Asseco

Kazakhstan acquisition

• Asseco in Nigeria

2004• Asseco acquires Slovak

AssetSoft

2007-2009• Asseco expands in

Poland (Softbank and Prokom acquisitions)

• Expansion into markets in Western Europe

• Expansion in Scandinavia

• Entrance into South Eastern Europe

2010• Asseco Poland

acquires Formula Systems

• Asseco SEE expands in Turkey

• Asseco acquires Necomplus Group

• Asseco Poland merges with ABG SA

2016

2016

• Expansion in Israel – Roshtov Software

• TSG acquisition

2013• Asseco Georgia

acquisition

• R-Style Softlab acquisition in Russia

2015• Exictos

joins Asseco

• Successful bid for Infovide-Matrix

2017• Stoneriver

acquisition in the U.S.

2017

7

Strengthening our position as a leading producer of software in Europe

Top 100 European Software Vendors

Asseco Group

6softwareproducerin Europe

Source: Truffle100 2015 edition

Rank CompanySales revenues 2014

(software + services)[EUR millions]

Sales revenues 2013(software + services)

[EUR millions]

Change

1 SAP 17 243.9 16 512.3 4,4%

2 DASSAULT SYSTEMES 2 078.6 1 887.5 10,1%

3 SAGE 15 39.5 1 522.6 1,1%

4 HEXAGON 1 442.3 1 309.6 10,1%

5 WINCOR NIXDORF 1 367.0 1 257.3 8,7%

6 ASSECO GROUP 1 193.3 1 063.0 12,3%

7 SOFTWARE AG 835.6 856.5 -2,4%

8 DATEV 790.7 752.8 5,0%

9 WOLTERS KLUWER 740.2 720.9 2,7%

10 MISYS 639.2 442.6 44,4%

8

Asseco uniqueness

1. Proprietary software 2. Federation model

3. Diversification 4. Long term growth

Proprietary software

80%

8%

12%

0%

7,932mPLN

Main focus: proprietary software and services

Figures in millions of PLN.

Proprietary software and services 6,351 +10% 5,783

Third-party software and services 627 +18% 533

Hardware and infrastructure 950 +2% 936

Other sales 5 0% 5

Sales revenues 7,932 +9% 7,256

10

2016 %∆ 2015

11

Repeatable solutions and tailored-made software

Dedicated solutions

Comprehensive solutions for various

sectors

Standard software packages

Cloud solutions

• Comprehensive Information System for Social Security Institution (ZUS) in Poland

• Core banking system for PKO BP (Alnova)

• Frontex system for European Union

• Border Clearance System (National Border GuardPoland)

• Central Register of Vehiclesand Drivers (Ministry of the Interior of Poland)

• Asseco def3000 – corebanking solution

• Asseco Customer Banking Platform – e-banking

• Asseco Utility Management Solutions (AUMS) – billing software for Energy industry

• Asseco MedicalManagement Solutions -healthcare

• IDIT, ALIS – comprehensivesolutions for insurancesector

• Magic xpi Integration platform

• Magic xpa Development platform

• Asseco HR

• Asseco ERP solutions

• Def3000 REB/CEB - banking

• Asseco Mobile Touch - salesforce

• CloudSign – digital signature

Federation model

The model comes from unique M&A approach

Federation model of growth

• Asseco Group is a group of quasi-independent subsidiaries

• Asseco usually buys more than 50% of equity but rarely 100%

• In principle we keep the people, managers and products after the acquisition

• Asseco is present in supervisory board or board of directors of acquired companies

• Asseco Poland is the leader of the Group13

14

Advantages of federation

Local expertise and experience

Knowledge of clients, environment, specifics

Locally well-known, trusted products

Local people with local language

Being „fair” to local government (taxes, employer)

Support entrepreneurship

Possiblesynergy effects

within the whole Asseco

Group

15

Geography - our offices worldwide

The Asseco Group

Diversification

Strong top line diversification between businesses

15 years: average customer tenure for our top 5 clients

14%: 10 biggest customers accounts for 14% of revenues

79%

21%

Foreign

Domestic

7,932mPLN

17

2016 %∆ 2015

7,932mPLN

3 062 +14% 2 689

3 128 +11% 2 829

1 742 +0% 1 738

Sales revenues 7 932 +9% 7 256

39%

39%

22%

General Business

Banking and Finance

Public Institutions

1 650

4 399

736

571575

60

7 932mln PLN

+9%

Asseco Group in 2016 – geographical regions

Israelimarket

+20%

Central Europeanmarket

+13%

Western Europeanmarket

-4%

South EasternEuropean market

+17%

Polishmarket

-7%

Eastern Europeanmarket

-44%

*including consolidation eliminations resulting from inter-market sales: -59 mPLN

18

Polish marketCompletion of the Group’s organizational changes (DahliaMatic, Asseco Data Systems). Lack of new public tenders

Israeli marketDynamic expansion of Sapiens and Magic Software achieved through organic growth and acquisitions (Maximum Processing, RoshtovSoftware)

Central European marketStronger demand for the ERP solutions and rebound in the Czech public administration sector. Delisting of Asseco Central Europe and establishment of Asseco Enterprise Solutions

South Eastern European marketImprovement in the payment solutions and banking segments.

Western European marketExictos focus on proprietary software and implementation services. Sales of new solutions in Spain (parcel stations)

Eastern European marketResults influenced by losing one of the key customers. Restructuring process and ownership changes

19

Shareholder structure

AVIVA BZ WBK Pension Fund

11.3%Adam Góral

9.7%

PZU Pension Fund5.2%

NN Pension Fund5.0%

Other shareholders

68.8%

USA+Canada12.2%

Poland74.4%

Europe10.9%

Rest2.5%

Stable and long term shareholders

(including CEO)*

Long term growth

21

Consistently strong financial performance

Revenue (PLN millions)

EBIT (PLN millions)

Source: Company data

1 2822 787 3 050 3 238

4 960 5 529 5 780 6 232 7 256 7 932

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

237494 526 566 645 650 598 637 745 769

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

22

Building long term value – Israeli market example

50.0% 48.9% 47.3%

IT market leader in Israel Second largest provider of software for the insurance industry

in the world

Global producer of application development platforms

* market capitalization as of December 31, 2016

USD 310 million

USD 484million

2010

2016

Mar

ket

cap

USD 51 million

USD 702million

USD 90 million

USD 306million

Formula Systems*

Matrix IT Sapiens Magic Software

46.3%

Increasing market capitalization of subsidiaries

432508

802

0

200

400

600

800

Capitalization of Asseco Business Solutions (m PLN)

2010 2015 2016

310349

484

0

200

400

600

Capitalization of Matrix (m USD)

2010 2015 2016

51

495

702

0

200

400

600

Capitalization of Sapiens (m USD)

2010 2015 2016

90

250

306

0

100

200

300

400

Capitalization of Magic Software (m USD)

2010 2015 2016

23

24

Consistent implementation of our dividend policy

PLN 0.55

PLN 1.03

PLN 1.47

PLN 1.80

PLN 2.19

PLN 2.41PLN 2.60

PLN 2.90PLN 3.01 PLN 3.01

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016*

DPS

Over PLN 1.4 billionpaid dividends

* Management Board's recommendation

250 mPLN

5.6%

Financial information2016

3 909 4 010 4 5505 478

6 282

1 620 1 7701 681

1 7791 650

2012 2013 2014 2015 2016

Revenues from foreign operations Revenues from Poland

26

Rising share of foreign markets in revenues

79%

21%

7,932 mPLN

+ 804 mPLN

350 303 298 278 259

302296 338

467 511

2012 2013 2014 2015 2016

Operating profit in Poland Operating profit from foreign operations

27

Rising share of foreign operations in operating profit

66%

34%

769 mPLN

+ 44 mPLN

Revenue structure – strong diversification into sectors

39%

39%

22%

Revenues

7,932 mPLN

+9%

28

2 364 2 258 2 513 2 829 3 128

1 854 2 0312 214

2 6893 0621 311 1 491

1 5051 738

1 742

2012 2013 2014 2015 2016

General business Banking and finance Public institutions

In comparison to the order backlog presented in March 2016

Consolidated order backlog for 2017

5,0255,512

2016 2017

Revenues

+10%

4,492 5,031

2016 2017

Proprietary software and services

+12%

Figures in millions of PLN.Value of the order backlog for 2017 as at March 13, 2017; value of the order backlog for 2016 as at March 11, 2016. 29

30

Asseco Central Europe

Polish subsidiariesAsseco South

Eastern EuropeWestern Europe Israel Eastern Europe TOTAL

Investment* [mPLN] 361.9 722.0 291.5 377.5 427.0 147.9 2,327.8

Market value(for Asseco Poland)** [mPLN]

642.8 327.4 1,081.7

Return on dividend for 2015 (payout in 2016)

13.3% 5.8% 4.1% 20.8% 4.3% 2.3% 8.9%

Price-to-earnings (2016) 6.9x 16.9x 10.3x 12.1x 10.9x - 12.5x

* As of 31.12.2016, includes cash investments, swaps, loans as well as purchases made and accounted for directly in P&L** FX exchange rates as of 15.03.2017

Return on investments in 2016

Growth in revenues and operating profit

Figures in millions of PLN

Non-IFRS figures including adjustments for: i) income recognized in purchase price allocation, ii) amortization charges on intangible assets recognized in purchase price allocation as well as iii) for the costs of share-based payment transactions with employees

2016 2015 Δ Q4 2016 Q4 2015 Δ

Revenues 7,932.0 7,256.2 +9% 2,259.1 2,196.0 +3%

Proprietary software and services 6,351.0 5,782.6 +10% 1,776.7 1,602.1 +11%

Gross profit/(loss) on sales 1,866.5 1,749.1 +7% 510.2 505.9 +1%

Gross profit margin 23.5% 24.1% -0.6 pp 22.6% 23.0% -0.5 pp

Selling costs -480.8 -451.5 +6% -131.5 -126.8 +4%

General and administrative expenses -620.9 -543.7 +14% -179.8 -166.9 +8%

Other operating activities 4.6 -9.2 - 4. -1.1 -

Operating profit 769.4 744.7 +3% 203.0 211.1 -4%

Operating profit margin 9.7% 10.3% -0.6 pp 9.0% 9.6% -0.6 pp

Operating profit non-IFRS 883.0 848.4 +4% 234.5 242.5 -3%

Operating profit margin non-IFRS 11.1% 11.7% -0.6 pp 10.4% 11.0% -0.7 pp

EBITDA 1,069.5 1,007.7 +6% 283.1 274.0 +3%

EBITDA margin 13.5% 13.9% -0.4 pp 12.5% 12.5% +0.1 pp

31

Growth in revenues and operating profit

2016 / Change 2016 vs. 2015

Sales revenues**Proprietary software and

services**Operating profit

Polish market 1,650.2 -7% 1,324.7 -3% 258.6 -7%

Israeli market 4,399.0 +20% 3,810.7 +18% 343.4 +22%

Central European market 736.1 +13% 555.7 +13% 66.9 +6%

South Eastern European market 570.6 +17% 346.9 +17% 56.4 +7%

Western European market 575.1 -4% 313.1 -10% 55.6 +48%

Eastern European market 59.6 -44% 48.6 -49% -11.2 -148%

Asseco Group* 7,932.0 +9% 6,351.0 +10% 883.0 +4%

* Figures after consolidation eliminations** Revenues generated in individual markets include sales to external customers as well as inter-segment sales

32

Reconciliation of operating profit and net profit2016 2015 Δ Q4 2016 Q4 2015 Δ

Operating profit 769.4 744.7 +3% 203.0 211.1 -4%

Interest expense -37.9 -32.9 -8.4 -9.8

Foreign currency transactions -4.5 -9.2 5.8 -3.0

Other -7.1 37.5 -3.5 36.7

of which: gain/loss on transactions associated with company acquisitions -6.1 -2.3 -3.5 -1.0

gain/loss on transactions associated with company sales 1.9 40.1 1.9 39.8

dividends paid to non-controlling shareholders -6.1 -1.2 -5.8 0.0

Pre-tax profit 719.9 740.1 -3% 196.9 235.0 -16%

Income tax -179.0 -165.8 +8% -51.7 -47.1 +10%

Share of profits /losses of associates 2.7 -1.7 - -0.9 -2.3 -

Profit / loss from discontinued operations

Net profit 543.6 572.6 -5% 144.3 185.6 -22%

Net profit attributable to shareholders of the parent company 301.3 365.0 -17% 76.7 125.5 -39%

Figures in millions of PLN

33

Generated cash flows

Asseco Group Asseco Poland2016 2015 2016 2015

CFO 1,032.0 1,043.6 176.1 324.5

CAPEX* -210.7 -191.7 -24.3 -40.1

Free cash flow** 821.3 851.9 151.8 284.4

Cash conversion*** 93% 100% 75% 156%

Figures in millions of PLN

* Excluding investments in investment property, net of grants received.** CFO+CAPEX.*** Free cash flow / non-IFRS EBIT.Non-IFRS figures including adjustments for: i) income recognized in purchase price allocation, ii) amortization charges on intangible assets recognized in purchase price allocation as well as iii) for the costs of share-based payment transactions with employees.

34

Stable liquidity position (Asseco Poland)As at December 31, 2016

ST LT

Cash and financial assets 25.4 63.9

Debt and finance lease: - 39.5 55.0

Bank loans - 17.1 - 68.7

Assets serving as bank loan collateral* - 190.2

Finance lease liabilities - 22.4 - 66.5

Net cash (KT) - 14.1

Inventories+ ST receivables – ST liabilities** 230.3

Net operating assets (ST) 216.2

Available bank loan facilities 585.0

Figures in millions of PLN* The book value of real estate serving as bank loan collateral** Inventories + short-term receivables + short-term prepayments – short-term liabilities excluding bank loans and finance lease liabilities 35