On behalf of the Management Board of Comarch I am pleased to present the report on the activities of Comarch Group. The Group has achieved development and financial goals established for the year 2016, despite of difficult market conditions in some sectors (public and medicine sectors) and despite of increased operating costs. In the past year, the revenues from sales were slightly lower than those achieved in 2015 (a decrease of PLN 18.8 million, i.e. 1.7%) and amounted to PLN 1,113 million, bearing in mind that revenue from sales of Comarch own solutions grew by PLN 47 million, i.e. 4.7%. Operating profit amounted to PLN 116.9 million and was higher by 3.4% compared to that achieved in 2015, while net profit in 2016 was PLN 75.7 million and was lower by 5.7%. The Group’s profitability reached the satisfactory levels again: the Group’s EBIT margin amounted to 10.5%, while the net margin to 6.6%.
In 2016, the Comarch Group’s expands on development of new and improvement of existing IT products increased. Expenditure on research and development has now exceeded 15% of sales revenue, which has been financed both from Comarch’s own resources and by proactively seeking out European funds. The Comarch Group intensively developed new generation of loyalty systems including personalized content based on location of a user, gamification, advanced big data analysis and solutions related to the Smart City and the Smart Airport, among others. The company continued also R&D works in the field of IT solutions for medical industry (Telemedicine, including the most important project “The City of Health”, Teleradiology) and related to the development of proprietary solutions in the fields of: hardware and services based thereon (Internet of Things). The Group focused on development of service-oriented IT solutions – Comarch is one of the market leaders in this field. Investment in human capital is an essential element for the further development of the Group. The past year was very successful in this regard – the Group has created approximately 300 new work places. The annual student internship program was particularly successful – Comarch is one of the employers of a first choice in the domestic labor market in the IT industry.
In the previous year, the Group successfully continued its strategy based on diversification of operations between different branches, development and sales of proprietary products on the global market. With a wide and comprehensive range of modern solutions and high quality services, Comarch is now regarded as a second of the leading providers of IT products in Poland and one of the top software producer at the international markets. In the previous year, the Group established new subsidiaries: Comarch Colombia S.A.S. in Colombia and Comarch Peru S.A.C. in Peru. Further equity investments both in the domestic market and in foreign markets are planned in 2017. As part of the continuation of infrastructural investment, in 2016 the Comarch Group completed investment in a research laboratory and production facilities dedicated to the business of Internet of Things and construction of a modern office building in Łodź. In the past year, the Group commenced investment in a new office building in Krakow (SSE7) and construction of a Comarch Data Center in Lille in France with a view to further intensive development of activities.
The Group’s Management Board shall make every effort to successfully implement the mission of selling innovative technological ideas of Polish engineers around the world. In addition to its core business, Comarch Group runs many social activities, supports non-governmental organizations and charities, as well as is the patron of culture, arts and sports. I believe that in the near future, Comarch Group will further succeed in strengthening its market position as a global provider of IT solutions, thereby creating value for shareholders, employees and the society as a whole.
Professor Janusz Filipiak
President of the Management Board