Dear Shareholders,

The year 2022 presented numerous challenges, such as the war in Ukraine, tense international relations, energy market price shocks, high inflation, and rising financing costs. For many enterprises, these conditions were not conducive to doing business and normalizing the situation after two previous "epidemic" years. However, I am pleased to report that last year the Comarch Group once again demonstrated its resilience to crises, steadily developed its business, and achieved very good financial results. The Group's consolidated sales revenue amounted to PLN 1,859 million, operating profit to PLN 147.6 million, and net profit attributable to Comarch S.A. shareholders was PLN 107.8 million. Net profitability in 2022 amounted to 5.8%.

In 2022, the Comarch Group consistently implemented the key elements of its long-term growth strategy and focused on improving existing IT products while developing new ones. The Group offered these products to many industries and sold them to customers around the world. Over 94% of the Group's revenue came from the sales of its own services, solutions, and finished products, with 58% of sales generated outside Poland. Last year, business on foreign markets developed very quickly, especially in Asia and Western Europe, with an increase of 14.6%. Sales of ERP systems, solutions for the financial and banking, trade and services, industrial, and medical sectors increased, while the demand for IT solutions for customers from the telecommunications and public sector decreased. Thanks to a wide and comprehensive offer of modern IT solutions and high-quality services, the Comarch Group has strengthened its position as a leading Polish software producer and one of the leading IT suppliers in the world. Despite the challenges mentioned at the beginning, the Comarch Group was able to effectively develop the sales of its solutions on existing and new markets, thanks to the global sales network developed over the years.

In 2022, the Comarch Group continued its large-scale R&D activities, spending almost PLN 400 million, which accounted for 21.5% of sales. The Comarch Group intensively developed new generations of the loyalty system and ERP system, systems for telecommunications operators, solutions in the field of e-commerce, telemedicine, and related to financial services. In 2022, the dominant sales model for IT solutions was the services model, and Comarch remains one of the market leaders in this area.

The Comarch Group increased employment by 148 people, and at the end of 2022, employed 6,871 people. As every year, the student summer internship program was very popular, making Comarch the first choice employer on the labor market in the IT industry.

In the past year, the Group paid particular attention to the issue of IT security and took several actions to raise its level. In the second quarter of 2023, a modern server room in Phoenix, United States, will be completed, which, together with similar facilities in Krakow, Dresden, and Lille, will ensure a high degree of diversification of the Comarch Group's ICT infrastructure. Additionally, it will allow the Group to benefit from lower electricity prices than in Europe. The Comarch Group continued to invest in its own renewable energy sources on the campus in Krakow.

Last year, the Management Board of the Comarch Group made every effort to effectively combine the mission of disseminating innovative technical thought created in Poland around the world with the implementation of a responsible policy of corporate social responsibility and sustainable development. The Group was actively involved in helping refugees from Ukraine, was a patron of culture, art and sport, supported local initiatives, local government and non-governmental organizations, health care units, and charity campaigns.

The last three years have proved that the very good geographic and industry diversification of the Group's operations, a wide range of products, financial resources and the ability to efficiently adapt to the rapidly changing environment are crucial for the long-term development of the company. I hope that also in 2023 the Comarch Group will be able to strengthen its market position as a global provider of IT solutions and increase its value for shareholders, customers, employees and all other stakeholders.

Professor Janusz Filipiak, President of the Management Board of Comarch S.A.


All periodical reports are published in Polish and available at Raporty okresowe | COMARCH SA