Dear Shareholders,

I am pleased to announce to you today that the Comarch Group achieved record financial results in the challenging year 2020. Sales revenue significantly exceeded PLN 1.5 billion, operating profit amounted to PLN 191.6 million, while the net profit attributable to the parent company’s shareholders was PLN 120.6 million. The operating margin in 2020 was 12.5%, and the net margin was 7.8%. The achievement of these results was possible thanks to the very good diversification of the Group’s operations, a wide product offer, and the ability to efficiently adapt to a rapidly changing environment, which was particularly important in the conditions of a global pandemic.

In 2020, the Comarch Group successfully continued its growth strategy based on the development of proprietary IT products for many industries and selling them on international markets. Last year there was an increase in revenue from the sales of Comarch's software and related services, but the situation in individual business areas has changed significantly. The Group's business developed steadily both in Poland, and on foreign markets, especially in Asia and Western Europe, it developed much faster than in Poland. Solutions for financial and telecommunications sectors, ERP systems, as well as solutions for public sector enjoyed particular interest from customers. Thanks to the wide and comprehensive offer of modern IT solutions and high-quality services, the Comarch Group strengthened its position in 2020 as a leading Polish software producer and one of the most prominent IT suppliers in the world. Thanks to the global sales network that has been operating for many years, the Comarch Group was able - despite the pandemic and related limitations - to successfully develop the sales of its solutions in new markets. A visible effect of these actions was the signing last year of the largest contract in the history of the Comarch Group, worth over PLN 300 million, with a telecommunications operator from New Zealand.

In 2020, the Comarch Group continued the intensive development and improvement of new and existing IT products. Expenditures for research work exceeded PLN 260 million, which represents over 17% of the Company's sales revenue - these key investments being financed primarily from the Company's own funds. The Comarch Group intensively developed a new generation of telecommunications systems dedicated to 5G technology, e-commerce solutions, ERP systems, IT solutions for the financial sector and the Internet of Things. In 2020, the Comarch Group invariably focused on the development of IT solutions in the service model as one of the market leaders in this field. In order to accelerate the development in the area of e-Health, last year the Comarch Group acquired 2CSI, a French IT company that has been providing solutions for this sector for many years. In addition, 2020 saw the composition of the Group completed by a newly established subsidiary - Comarch New Zealand LTD.

Last year the Comarch Group was a stable employer. In 2020, the number of employees increased by 114, and at the end of the year the Group employed 6,462 people worldwide. As every year, the program of summer student internships was very popular, thanks to which Comarch is perceived as the first-choice employer on the labor market in the IT industry.

The Management Board of the Comarch Group makes efforts to effectively implement the mission of globally disseminating innovative technical thought created in Poland. In addition to its business activities, the Comarch Group implements a corporate social responsibility policy and is involved in activities for environmental protection and the preservation and reconstruction of national heritage, actively supports non-governmental organizations and charity campaigns, and is a patron of culture, art and sport.

The past year has proved that the Comarch Group was and is very well prepared to operate even in conditions of economic slowdown caused by the Covid-19 pandemic. I am convinced that the Comarch Group will, in the coming year as well, be able to strengthen its market position as a global provider of IT solutions, thanks to a very good current financial situation, the significant product, industry and geographical diversification of its offer, and the high commitment of employees.

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

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