Periodical reports

Dear Shareholders,

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 goals established for the year 2015, it was also a very successful period in terms of the financial results. In the past year, the revenues from sales increased by PLN 93.2 million, i.e. 9% reaching PLN 1,131.6 million. Comarch Group has also improved the profitability: operating profit in 2015 amounted to PLN 113 million (compared to PLN 98.5 million in the previous year), while net profit to PLN 79.7 million  (2014: PLN  67.9 million). The operating margin amounted to 10%, while the net margin to 7%.

In 2015, the Group successfully continued its long-term growth strategy based on proprietary products and the development of foreign business. With a wide and comprehensive range of modern solutions and high quality services, Comarch is now regarded as one of the leading providers of IT products in Poland and in international markets. Due to the dynamic development of foreign business the Group expanded to include new subsidiaries: Comarch SRL in Milan, Italy; Comarch Malaysia SDN. BHD. in Kuala Lumpur, Malaysia; Comarch Espace Connecte Inc. (Comarch Smart City) in Montreal, Canada; Comarch AB in Stockholm, Sweden; Comarch Poinsthub, Inc. in Rosemont, the United States of America and Comarch Argentina S.A. in Buenos Aires, Argentina. A new affiliated company, Thanks Again LLC of Tyrone in United States, joined Comarch Group. Further equity investments in foreign markets are planned in 2016. In the domestic market, the Group is the second largest IT enterprise and pursues a large number of projects in all economic sectors.

In view of the long-term and stable development, the Group invests in the development of new and improvement of existing IT products. Expenditure on research and development has now exceeded 12% of sales revenue, which has been financed both from Comarch’s own resources and by proactively seeking out European funds. In 2015, the Group continued R&D works related to the development of proprietary solutions in the fields of: hardware and services based thereon (Internet of Things), in the field of IT solutions for medical industry (Telemedicine, Teleradiology), as well as the range of tools for precision marketing (Smart City). In the past year, the Group tailored its products and internal organization to a rapidly changing business model, in which service-oriented IT solutions begins to play a decisive role – 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 hired 826 people, most of all in Krakow. The annual student internship program was particularly successful – Comarch is one of the employers of a first choice in the domestic labour market in the IT industry.

As part of the development of infrastructure needed to the comprehensive delivery of IT solutions, Comarch Group completed the next stage of investment (SSE6) in the Krakow Special Economic Zone. As a result, 350 comfortable job places were created, a modern Data Center was launched and a research laboratory and production facilities dedicated to the business of Internet of Things is currently under construction. In 2015, the Group has also started to work on the construction of modern offices in Łódź, in the first quarter of 2016 an investment in another office building in Krakow (SSE7) was commenced, 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. The consistent implementation of patriotism-oriented strategy was highly appreciated. In 2015, Comarch S.A. was the winner of the Index of Polish Business Patriotism rank in the category of quoted companies. 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

Comarch S.A.

Financial reports