Asseco Poland

Company Presentation

3

Asseco at a glance

Present in over

50countries

Over

21,500highly commited

employees

6th

largest software & services

vendor in Europe

1,734mEUR

sales revenues in 2015

178mEUR

operating profit in 2015

954mEURmarket

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

5

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

2009

• Investment in companies in Western and Northern European markets

• Danish IT Practice joins Asseco Northern Europe

• Raxon Informatica joins Asseco SW Europe

2010

• Asseco SEE acquires Turkish company ITD

• Asseco Poland acquires Formula Systems

• Asseco SW Europe acquires Necomplus Group

• Asseco Poland merges with ABG SA

2013

• Asseco Georgia acquisition

• R-Style Softlab acquisition in Russia

2014

• Asseco Kazakhstan acquisition

• Asseco in Nigeria

2015

• Exictosjoins Asseco

• Successful bid for Infovide-Matrix

2004• Asseco acquires Slovak

AssetSoft

2007

• Asseco merges with Softbank

• Asseco acquires Prokom Software

• Intensive expansion into the markets of Germany and South Eastern Europe

6

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%

7

Asseco uniqueness

1. Proprietary software 2. Federation model

3. Diversification 4. Long term growth

Proprietary software

81%

8%

11%

0%

5,673mPLN

Main focus: proprietary software and services

Figures in millions of PLN.

Proprietary software and services 4,574

Third-party software and services 462

Hardware and infrastructure 632

Other sales 4

Sales revenues 5,673

9

Q1-Q3 2016

10

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’s 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, managersand products after the acqusition

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

• Asseco Poland is the leader of the Group12

13

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

14

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

5,673mPLN

40%

39%

21%

General Business

Banking and Finance

Public Institutions

16

Q1-Q3 2016 %∆ Q1-Q3 2015

2,216 +16% 1,906

2,238 +8% 2,073

1,219 +13% 1,082

Sales revenues 5,673 +12% 5,060

5,673mPLN

17

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

19

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

2007 2008 2009 2010 2011 2012 2013 2014 2015

237494 526 566 645 650 598 637 745

2007 2008 2009 2010 2011 2012 2013 2014 2015

20

Building long term value – Israeli market example

50.0% 50.0% 45.6%

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 November 22, 2016

USD 310 million

USD 454million

2010

2016

Mar

ket

cap

USD 51 million

USD 727million

USD 90 million

USD 316million

Formula Systems*

Matrix IT Sapiens Magic Software

46.3%

21

Consistent implementation of our dividend policy

0.55 PLN

1.03 PLN

1.47 PLN

1.80 PLN

2.19 PLN

2.41 PLN2.60 PLN

2.90 PLN 3.01 PLN

2007 2008 2009 2010 2011 2012 2013 2014 2015

DPS Stopa dywidendy

5.9%

Over PLN 1.1 billion paid in dividends

PLN 250 million

Company updateQ1-Q3 2016

Polish marketCompletion of the Group’s organizational changes.

Israeli marketDynamic expansion of Sapiens and Magic Software achieved through organic growth and acquisitions.

Central European market Growing revenues owing to company acquisitions as well as recovery in the public sector in the Czech Republic.

South Eastern European marketImprovement in the segments of payment solutions and systems integration, weaker business in the banking sector.

Western European marketRevenues generated by Portugal-based Exictos compensate for the impact from the disposal of Matrix42.

Eastern European marketWeaker results due to losing one of the key customers. Prospects for participation in future tenders in the banking sector.

1,209

3,167

485

391417

46

5,673mPLN+12%

Asseco Group in Q1-Q3 2016 – geographical regions

Israeli market

+18%

Central European market

+24%

Western European market

0%

South Eastern European

market

+13%

Polish market

+4%

Eastern European market

-43%

*including consolidation eliminations resulting from inter-market sales: -43 mPLN

23

24

Separation of competence and specialization

Infrastructure Division Banking

Energy Industry

Telecommunications

SAP

Implementation Center

Enterprises Division (SAP, Oracle, Microsoft)

Commercial Insurance

• Specialization in third-party solutions.

• Focusing on consulting and implementation services.

Changes in the Group’s organizational structure

• Solutions for local administration and entities that are not served by Asseco Poland.

• Focusing on IT infrastructure.

• Expert in software solutions for various sectors.

• Focusing on proprietary software and services.

INTEGRATIONPROPRIETARY SOFTWARECONSULTING AND

IMPLEMENTATIONS

• Solutions for small and medium-sized enterprises and sales force automation (SFA).

• Focusing on own ERP software.

ERP and SFA

46.47% 100% 100%

700 mPLN in revenues*

2,800 people

* Pro-forma revenues for Q1-Q3 2016, i.e. taking into account our new organizational structure

123 mPLN in revenues*

650 people

267 mPLN in revenues*

1,000 people

121 mPLN in revenues*

300 people+ Sigilogic

+ CTPartners 25

Rising share of foreign markets in the Group’s revenues

+ 565 mPLN

37%

63%

218mPLN

79%

21%

5,673mPLN

2005 2016

1,154 1,209 1,200 1,161 1,209

2,841 2,870 3,1993,899

4,464

Q1-Q3 2012 Q1-Q3 2013 Q1-Q3 2014 Q1-Q3 2015 Q1-Q3 2016

Revenues from Poland Revenues from foreign operations

26

Revenue structure – strong diversification into sectors

40%

39%

21%

5,673 mPLN

1,710 1,574 1,762 2,073 2,238

1,332 1,4861,581

1,9062,216954 1,019

1,056

1,0821,219

Q1-Q3 2012 Q1-Q3 2013 Q1-Q3 2014 Q1-Q3 2015 Q1-Q3 2016

General Business Banking and Finance Public InstitutionsQ1-Q3 2016

27

Consolidated order backlog for 2016

In comparison to the order backlog presented in November 2015.

6,742 7,504

2015 2016

Sales revenues

+11%

5,656 6,105

2015 2016

Proprietary software and services

+8%

Figures in millions of PLN.Value of the order backlog for 2016 as at 14 November 2016; value of the order backlog for 2015 as at 12 November 2015 (adjusted by the data of Matrix42). 28

Financial informationQ1-Q3 2016

Robust 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

Q1-Q3 2016 Q1-Q3 2015 Δ Q3 2016 Q3 2015 Δ

Revenues 5,672.9 5,060.2 +12% 1,902.3 1,755.1 +8%

Proprietary software and services 4,574.3 4,180.5 +9% 1,554.5 1,458.2 +7%

Gross profit/(loss) on sales 1,356.3 1,243.2 +9% 468.6 440.2 +6%

Gross profit margin 23.9% 24.6% -0.7 pp 24.6% 25.1% -0.4 pp

Selling costs -349.3 -324.7 +8% -118.1 -111.3 +6%

General and administrative expenses -441.1 -376.8 +17% -146.7 -129.4 +13%

Other operating activities 0.5 -8.1 - 0.2 1.2 -84%

Operating profit 566.4 533.6 +6% 204.0 200.7 +2%

Operating profit margin 10.0% 10.5% -0.6 pp 10.7% 11.4% -0.7 pp

Operating profit non-IFRS 648.5 605.8 +7% 234.0 229.3 +2%

Operating profit margin non-IFRS 11.4% 12.0% -0.5 pp 12.3% 13.1% -0.8 pp

EBITDA 786.4 733.7 +7% 280.7 270.0 +4%

EBITDA margin 13.9% 14.5% -0.6 pp 14.8% 15.4% -0.6 pp

30

Robust growth in revenues and operating profit

Q1-Q3 2016 / Change Q1-Q3 2016 vs. Q1-Q3 2015

Sales revenues**Proprietary software

and services**Operating profit

(non-IFRS)

Polish market 1,209.2 +4% 978.3 -1% 214.8 -6%

Israeli market 3,167.1 +18% 2,756.3 +17% 307.6 +20%

Central European market 485.4 +24% 370.6 +12% 41.8 +7%

South Eastern European market 391.2 +13% 239.1 +14% 34.9 -9%

Western European market 417.3 -0% 228.9 -4% 51.6 +118%

Eastern European market 45.9 -43% 39.2 -48% -2.3 -111%

Asseco Group* 5,672.9 +12% 4,574.3 +9% 648.5 +7%

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

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. 31

Robust growth in revenues and operating profit

Q3 2016 / Change Q3 2016 vs. Q3 2015

Sales revenues**Proprietary software

and services**Operating profit

(non-IFRS)

Polish market 374.0 -5% 313.5 -7% 74.6 -17%

Israeli market 1,113.7 +22% 964.2 +18% 110.3 +35%

Central European market 155.3 -0% 122.3 +2% 14.1 +12%

South Eastern European market 131.2 +3% 81.7 +9% 11.2 -23%

Western European market 127.0 -12% 71.1 -22% 26.3 +109%

Eastern European market 11.6 -69% 9.9 -73% -3.4 -121%

Asseco Group* 1,902.3 +8% 1,554.5 +7% 234.0 +2%

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

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. 32

Reconciliation of operating profit and net profit

Q1-Q3 2016 Q1-Q3 2015 Δ Q3 2016 Q3 2015 Δ

Operating profit 566.4 533.6 +6% 204.0 200.7 +2%

Interest expense -26.1 -23.1 -9.3 -8.8

Foreign currency transactions -10.4 -6.2 -6.6 7.4

Other -7.0 0.8 -2.9 -1.7

of which: gain/loss on transactions associated with company acquisitions -2.6 -1.0 -1.1 -0.3

reversal of write-down on a loan granted to Matrix42 Inc - 5.4 - -

sale/valuation/revaluation of other financial assets carried at fair value through profit or loss

-1.0 -1.6 -0.4 -0.9

unwinding of discount -3.4 -1.3 -1.4 -0.9

Pre-tax profit 523.0 505.1 +4% 185.2 197.6 -6%

Income tax -127.3 -118.7 +7% -39.1 -42.7 -8%

Share of profits/losses of associates 3.6 0.6 +500% 2.1 0.8 +163%

Profit/loss from discontinued operations

Net profit 399.3 387.0 +3% 148.2 155.7 -5%

Net profit attributable to shareholders of the parent company 224.6 239.5 -6% 81.7 102.1 -20%

Figures in millions of PLN 33

Generated cash flows

Asseco Group Asseco PolandQ1-Q3 2016 Q1-Q3 2015 Q1-Q3 2016 Q1-Q3 2015

CFO 657.9 621.0 100.3 183.6

CAPEX* -137.7 -138.6 -17.0 -33.6

Free cash flow** 520.2 482.4 83.3 150.1

Cash conversion*** 80% 80% 56% 88%

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 30 September 2016

ST LT

Cash and financial assets 38.5 65.0

Debt and finance lease: - 61.9 53.3

Bank loans - 40.5 - 67.6

Assets serving as bank loan collateral* - 191.5

Finance lease liabilities - 21.4 - 70.6

Net cash (ST) - 23.4

Inventories + ST receivables – ST liabilities** 234.6

Net operating assets (ST) 211.2

Available bank loan facilities 558.0

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