Good morning, ladies and gentlemen. We welcome you very warmly to the meeting devoted to the financial results of Asseco Group in the first quarter of 2024. We are very sorry for a slight delay. We've had technical problems. We welcome you to the financial results. In the second part, we are going to answer your questions. Right now, today in the conference, we have traditionally Karolina Rzońca-Bajorek, CFO of the Group, and the Vice President of the Board of Asseco Poland, and Marek Panek, Vice President of the Board. We are going to begin with presentation of Karolina. I'm sorry, we are going to begin with Marek. Excuse me, I am going to begin.
As I always do, I want to welcome you very warmly, and I'm very happy that we are coming here with smiles on our faces, and we have reasons to smile, because the first quarter of 2024 has been a very good time for the whole Asseco Group, both financially and from the business point of view. All the sectors, all the segments where we operate, had a very successful period in the first quarter of 2024. We are very happy, especially in the context of operating in such hard-to-predict business environment. We know what's happening in Ukraine, in the neighboring countries, such as Ukraine, in Slovakia. Here, I also mean war in Israel. It is not helping and brings along business risk. I'm very happy that we've begun the current year in such a good manner.
We can see here the basic parameters of our results, revenue, sales on the level PLN 4,020.25 million. Then comparable non-IFRS as operating profit of PLN 501 million, an increase of non-IFRS profit by 14%, and net profit by 16%, equaling PLN 125 million. Here, I want to draw your attention to the first line, which is a very significant impact of the differences of the exchange. We've shown it after the first quarter. We've been always monitoring our business in the original conditions. Please remember that around 90% of revenue of Asseco Group come from our foreign companies. Those are incomes in different currencies than a Polish currency, so we have to convert it.
In the quarter, just like in the previous quarters lately, the differences in the currencies were very much noticeable. If not this factor, we would have had 8% growth of revenue and EBIT growth of 9%, which is even more dynamic. This all makes us very happy with the financial results. I think this is a consequence of what we've been doing for the last 30 years, that we are very well diversified when it comes to the projects, sector, products, and our business is based on very healthy, stable foundations that we have constructed on our own programs and on our own services. There are certain hopes for maybe not this year, but the next years to come, for sure.
There are hopes of European Union's funds that have arrived to Poland and will be in the institutions which will be applying for the funds in order to implement their projects. Of course, those are processes. There will be tenders, public procurements, and we will be taking part in all of those. Being a company with over 30 years of experience and the history which shows that we are able to efficiently implement projects timely, I believe we are going to be a very important beneficiary of all those funds that have been transferred to Poland. Traditionally, I want to summarize the business activities of our group. Let me begin with what was happening in the geographic segments. Let me begin with Asseco Poland segment. Here, we've noted 11% of growth of sales.
Here, there are no results of currency differences. There were no acquisitions in the segment in the last quarter, so we are happy that we have such a healthy business. I want to pay attention to a very dynamic growth of revenue in finance and in public institutions. I will elaborate on that later on when discussing particular sectors of our operations. Then the Asseco International segment. Here, we can see 3% decrease of sales, but please, let's remember the differences in currencies. If not, the differences between the currencies, and if we would look, be looking at euro, Asseco International was growing by 5%, which is a very good result. We want to underline the very good situation in Asseco Southeastern Europe and in our segment of Asseco Enterprise Solutions.
Formula Systems segment, here, let's remember that we have. This is the biggest contributor to the income of the group. It brings around 66% of income. Here, we can see 4% decrease. In original currencies, it would have been 9% growth. This is something we need to bear in mind when assessing the business of this part of Asseco Group. We are underlining metrics in here, the biggest Israeli company, which had the best quarter ever, of course, in the original currency of reporting, meaning Israeli currency. Here we are very happy with what's happening in Sapiens. It's been a very good quarter for Sapiens, especially in the main markets where it's operating in Europe and in North America.
Here, you can see a slide which will be explained by Karolina, 'cause she is the mother of change in the new approach when it comes to shift to our new approach to sales.
Yes. So we wanted to show you a remapping of our income. On the last year's conference, at the end of the year, we said that we will be changing the way we present our income and also our results. Here, we are showing you what would happen if the income of first quarter 2023 would have been showed in the new manner. So this is a remapping of comparable data. On the next slide, we will have this approach on the right hand of the table. What is the change based on? We've explained it partially on the conference at the end of the year.
Up till now, we've been presenting you with income in the division, looking at the end customer. It was less important what we are selling. What was more important is who we are selling it to. So we've divided the income into the sector of financial, banking and insurance, public institutions, and general business. What we've done right now is that we have separated product groups. And this is how we are looking at what we are selling. It's important. The change of nomenclature is based on the fact that in the income from finance, or public institutions or ERP solutions and other IT solutions, we will not find income from infrastructure. So wherever we have projects which generates income partially on sales of infrastructure, this is the income which is separated to a separate line.
This will, should at least, help you in building models or in tracing profitability, because obviously, we can draw conclusions that the goal of Asseco is to earn and generate margin on sales of own solutions. But the activities in relation to selling certain infrastructure is a complementary activity, so we cannot fully resign on that. In part of the projects, this infrastructure is crucial, but the margin of this stream of income is, of course, different. Another change is that to the public institutions, we've added solutions which we call utilities in the slide. This is mainly energy sector, which is fixed price projects based, and the nature of those projects is very close to what we are selling to other institutions, our public institutions. This is why we've found it logical to change it in such a way.
The ERP solutions, it's pretty obvious what's there. When it comes to other IT solutions, from important things from Polish market, what's important that has not fitted in the other categories is mainly telecommunication or solutions in the scope of, trust services, such as, e-signature.
I understand that this is, it, when it comes to your comment. Thank you very much, Karolina. I think that this was benefit to everyone. We hope that you will be able to understand our business better, that you will be able to build your own models better. Let's get used to this, and we will be learning it jointly together. Should you have any questions related to the new approach, go ahead, we will be at your disposal. Right now, let's continue my part of presentation.
I want to show you a slide which shows the division of revenues by new product groups. Here, a word of comment from me. You can see that the biggest part of revenue are the solutions for finance. Here we have banking, insurance, leasing companies, and everything that is under the finance. It is limited to own software and own services, excluding infrastructure. On the second position, we have the infrastructure and the activities which are not our favorites, to say the least. We are still doing it for different reasons. It constitutes 24% of the whole revenue of our group. On the third place, we have solutions for public institutions. This is around 20% of income. And on the fourth place, we have probably the other solutions, other IT solutions, and ERP, 9%.
We underline our diversification when it comes to the client groups. We are not dependent on a particular client. The top 10 of clients of the whole group constitutes for 11% of our income, and the share of the largest clients, the major of our group, is around 2% of the whole income of the whole group. Let's continue. Right now, the solutions for finance. I will discuss separate product groups that I've mentioned. So let's begin with finance sector. You can see in the whole group, we have PLN 1.32 billion of income. This is a very similar income to the income from the last year. Here, we are showing it in the changing currencies, but in the original currencies, the numbers would be bigger.
In the Asseco Poland segment, we have almost 20% of growth. This is related to our activity in the sector, in the banking sector in Poland, and it's related to the fact that we have a very stable, big group of clients. We have a very healthy, wide stream of income from maintenance, from development, from maintaining our systems, and additionally, we are implementing three big projects of implementing, core systems in banking sector. Additionally, we have leasing, finances, from the systems where our activity is growing even faster. It's around 25%, if I remember, quarter by quarter, but this is a much lower, smaller scale compared to the banking sector. Asseco International. Here, it's flat, but in the original currency, there would be around plus 4, plus 5%.
Here, we have sales at the level of around PLN 340 million. This is, mainly Asseco South Eastern Europe. Here, the growth was most dynamic, both in the payment sector and in the sector of core solutions and omni-channel for banking sector. And then last but not least, Formula Systems, almost PLN 847 million income. Here, the biggest player in the sector is Sapiens. As I said, we are happy because Sapiens is managing very well in all the markets. I want to remind you that Sapiens is a global company, and the income comes in 90% from outside of Israel. 50% is Europe, 40% USA, and those are the markets where Sapiens is mainly developing and operating. The next group of our solutions are solutions for public institutions.
Here we have PLN 820 million of income in the whole of group. So it's similar to the last year. In Poland, we have 9% of growth of sales. This is a very good result. Of course, those are solutions for administration, central, and local government, but also, healthcare sector, where we've had a very good quarter. In public, we've been implementing for years long-term projects. We are tied with contracts with very big institutions. We've mentioned here in the slide, several of them, just to give you examples. We keep on signing new contracts, because, in the current reporting time, we've been signing new contracts. The forecast related to the funds from the KPO, we are very optimistic for the future.
When it comes to Asseco International, we are happy with the 3% growth of sale in the original currencies. It would be even more growth, especially as you probably remembered, we've been registering certain stagnation on the Czech and Slovak markets in the last year. So 3% growth is a very good focus for the future. The Formula Systems, around PLN 486 million of sale in the original currencies. It's several percent of growth, and here, the biggest players in this segment are Matrix and Magic, which are implementing projects for public and for healthcare. That is in this group of products. I'm sorry. Our ERP solutions. Here we have PLN 372 million of sales in the whole of group, 1% growth. Please don't worry about Poland.
You can see 5% decrease, but this is a very small scale. Here in the group, we only have DahliaMatic company, which is operating in Poland and has been implementing ERP solutions of the first party, such as Oracle, Microsoft, and SAP. This is the scale. As you see, in the first quarter was around PLN 16 million. In Asseco International, we have our ERP solutions. So EUR 5 million. Last but not least, Formula Systems, here, smaller scales, ILS 132 million. Here, the biggest player is Matrix. Just to remind you, Matrix has an own system named Tafnit. That's ERP system, and they also have a business unit part to it, which is also in charge of ERP solutions for the third companies. This all equals to this amount of money, and the remaining ERP solutions?
... Other IT solution, we can see that 8% growth in Poland. Poland, as Karolina mentioned, that is mostly the IT sector and telecoms. We are very happy because telecoms, this is a project that we implement for Polsat Plus. Let us not worry about Asseco International, because the scale is very small, PLN 23 million. However, this is the result of a high base at the end of last year, where we concluded a large-scale dedicated product. And then, six hundred and forty million from Formula Systems segments. This is Matrix and Magic. In Matrix, these are dedicated enterprise solutions that are not really typical ERPs, and Magic, that first of all manufactures and sells the developments for mobile application platforms, and then there's outsourcing of resources in the U.S., mostly. That is it from my part. Now, I give the floor to Karolina.
Thank you. Let us have a look at our performance in quarter one. This is the bird's eye view for the time being. As Marek mentioned, PLN 4,250 million sales revenues, and we can see 10% CAGR. 10% proprietary software and services, PLN 3,298 million. Non-IFRS EBITDA, PLN 645 million, and non-IFRS EBIT, PLN 501 million, and non-IFRS net profit, PLN 137 million. That's again, 10% CAGR. Non-IFRS results, quarter one, 2024 versus quarter one, 2023. This is our bridge, so to speak, to what we report this year. We can see the substantial influence, negative influence of currency exchange rate. Quarter to quarter, Polish zloty became stronger, both against euro and dollar, 8% and 10% respectively, if I remember correctly.
However, this strengthening is substantial because that means over -PLN 432 million. Organic growth, that is organically generated, that's PLN 707 million, and then we have a substantial top line profit as well. Non-IFRS operating profit, well, looking at Q1 2023, that's -PLN 36 million, and this is the currency exchange rate negative influence, Forex rates, plus PLN 14 million sales of property in Wrocław. That real estate was classified for sales some time ago. However, from the operations point of view, it generated costs because our employees already provided services from the office in a different building, so there should also be a long-term result regarding savings in sales. The sale also gave us plus PLN 14 million. Nearly PLN 22 million, these are organic results, PLN 8 million from acquisitions, and all of that translates into over PLN 500 million non-IFRS EBIT.
Non-IFRS results, this is net profit, non-IFRS. Looking at 2023, we can see the difference. We had buyback loan. This loan generates about PLN 60 million annually because of the interest rates. We can see that presented here, and nearly -16 million on loan interest. Then we also have sales of property, 11 million and nearly 21 million. This is an organic result in the group, and that translates into 130, nearly 37 million net profit in quarter one, 2024. Profit and loss, P&L. On the right, we can see the growth. This is excluding foreign exchange. We are very happy to see growth in all of the stable results. We can see also the operating profit. We can see the results in also EBITDA, but of course, we have to take into consideration what is happening in Asseco Poland.
However, we can see that the profitability, when we take off that influence, that's 11.5%, and that is a good forecast for the future. What is happening below EBIT then? Of course, we have got the interest rate share. That is more of a burden than in quarter one last year. We have got also good situation in M&A transactions, however, hyperinflation that also has an influence over us. However, we can take it off at some point as well. Gross profit, share tax, we can see that we have taken what can be written off from taxes as well, so tax deductibles and then effective tax rate, share of profit loss of associates.
This is when we look at PLN 125 million for quarter one, 2024 as net profit attributable to shareholders of the parent company. We can see that these numbers are comparable, minus PLN 15 million because of the Forex, and plus PLN 15 million on EBIT, and plus PLN 11 million from the real estate. We could say that the numbers compensate each other, so we can compare this PLN 125 million to 107. Looking at respective companies, what makes us especially happy is that in the companies where we consolidate more percentage-wise on the bottom line, they grow better. So this is when we look Asseco Poland, the parent company. We have got also very good results also very good results in Asseco Data Systems, PLN 5 million EBIT from other companies.
Matrix in Formula Systems segments, a very good quarter, also a very good result, across the board. Magic Software, less of the growth, we lost a major client in the States. We also have fewer employees in the company. This is why the organic results are weaker also in US dollars. However, in general, the company is growing, and we can say that for Sapiens, that was a good build as well. Asseco International segment, a good result in ERP, in Poland and in Germany. The situation in the public sector in the Czech Republic is stabilizing. We are especially happy with a large project that generated losses last year.
So we are happy to be in that moment in time that losses will no longer be generated this year, and we are not going to see them in the financial results for this year. We will see how the situation evolves. Slovakia, well, as Marek mentioned, it seemed that the situation was stable regarding public. However, we need to wait and see how the operations evolve. I would say that there isn't a major issue regarding project delivery. However, we know that the project needs to be accepted by the client. That means that we may have new terms and conditions, and also an unstable political situation also gives us some question marks. Central and Eastern Europe, Asseco, we can see that in payments are very good, mostly driven by e-commerce. Good results in banking, omni-channel solutions being the majority.
However, dedicated solutions, the results are not as good, but, we believe that there is nothing to worry about, and our Balkan companies are growing. So Asseco PST, a very good, result. We can see that Asseco, PST and, Polish banking, this cooperation is growing. The first offers are being submitted. I believe that this is good news as well. Cash generated, cash flow for quarter one, compared with the previous quarter, that means quarter one, 2023, we have got better results, 121%, of cash conversion ratio at the level of the whole group, above 100% in each segment.
If you wanted to look at it in more detail, especially when it comes to the parent company, as those numbers are reported separately, we can see that compared to the end of last year, the result is slightly less favorable. However, this is our natural cycle of cash collection. I presume that Q2 is going to be the moment that where we are going to invoice four subjects that are being now submitted as offers, and the cash will come in quarter three. We have stable liquidity situation. In the parent company alone, we have got over PLN 300 million at this point, the whole segment, PLN 380 million. And, we can see substantial amounts in other segments as well. Asseco International holds the cash as usual, and then the liquidity situation, of course, is influenced by the loans that have been taken.
However, the loans are being serviced appropriately, as I have mentioned, without any disturbances. Our disclosures after the end of the year, this is the proportional approach. This is what we also offer in our report. We can look at the numbers if we were to multiply every level, but the results, by a percentage of ownership, but by respective companies. So we can see that, profitability of the group is even better. This is the result of the fact that, the companies where we have a larger share, they grow faster, so they have a better profitability. Historically, it was Asseco Poland, then Asseco International, and, Formula Systems usually came third. This is where we also excluded, Forex, exchange, so exchange rate differences.
So when that is included, we can see sales revenues growth 9%, non-IFRS operating profits +19%, and operating profits +23%. Liquidity position, proportional view, and Asseco Poland, we can see that the numbers do not really change that much, practically stuck 100% across the board, and Asseco International and Formula Systems are now shown here, multiplied by effective percentage. Now, the group's backlog. This is our portfolio that is being developed. For years now, probably for two or more years, we have been showing our portfolio in two respects: fixed rates and variable rates. We can see what it looks like across the year, and we would say fixed rate and variable rates, variable rates were oscillating around zero.
However, the group's backlog in fixed rates is growing at 7%, so Asseco Poland, 10%, Asseco International, 8%, and Formula Systems, 6%. In Formula Systems, there is a slight change regarding what we consider backlog in Sapiens. Last year, we had this correction in Matrix, now in Sapiens. So if we looked at it like for like, this formula would be slightly higher. This is why, we have nothing to worry about here. However, backlog in Asseco Poland, we can see that respectively, it is the public sector, then banking and finance, and enterprises come third. I believe we had a similar situation at the end of the year, so they are analogous, trends as well. That is from me. Thank you so much.
Thank you very much, Karolina, for presenting such strong results and for such a good outlook to the end of the or maybe the second quarter of the current year. Thank you, Marek, for summarizing the activity. To remind you, we have a panel of chat where you may ask questions. Our conference today is being held in both Polish and English languages. Therefore, we invite you to ask questions in both languages, those of you who are watching us from outside of Poland. We have first question.
Good morning. I congratulate you, such strong hours. On what scale, although we have income and results of the companies on the market in Poland, that you've mentioned on a conference for journalists in the context of acquisition. We have three companies where, on the Polish language, Polish market, where we are negotiating. Marek, this is a question to you.
Well, yes, we've been calling down those moods when discussing with journalists, because right now we are speaking about prices. We are speaking in a very serious way with three companies, but those are not very big subjects. One is around PLN 30 million of income, and two others are much smaller, around under 10. This is interesting from the point of view of products or competencies. But the journalists were informed by us that it has been happening recently, that we've had plenty of conversations ongoing, and usually they end at the stage where we are currently now, which is the stage of discussing prices, because we can see that we are competing for funds that are
that have funds that they need to spend, so there's a pretty big competition. We will, we will see how it goes. We would like the acquisition to happen, but we will be very careful when it comes to the price.
Thank you. Another question: When the company is going to take a decision on the fate of their own assets that were purchased?
Well, as we've said at the end of the year, during the conference, we don't feel that there is any important time pressure. We are watching what's happening when it comes to the Polish markets and, when it comes to the macro scale. But today we have all the scenarios on the table. I don't want to now present you with a date of a decision which is going to be taken, because we are booking the time to take the best possible decision for our investors, and it might take some time more.
...Thank you. Another question, are you able to estimate what value of contracts from the European Union's funds are going to be there in 2025, 2026?
It's hard to specify what will—what contracts will be there. We can only relate to the market chances. We keep on mentioning that this is a very big impact on the whole of the market, not only IT market, but also the economy. When it comes to the recovery and resilience plan, then 25% of the funds are going to be allocated for innovation and new technologies. So this is going to fuel our clients who will be investing in such solutions.
We are looking in a very positive way at the local governments, at SMEs, but also at such projects which are bigger and might be organized by the state in order to increase the digitalization for the citizens. This is to put it shortly, but when it comes to the value, it's hard to tell at the moment. We don't have yet projects that we could name or, we could mention the value of. Should those be showing up, we will be trying to inform you in the future quarters.
Another question, how do you assess the current pressure and the perspective of the next year, the forecast of salaries in the IT sector? With the costs of remuneration have not been growing since last year, at least compared to the Polish market.
Well, generally, the first quarter showed the same trends which we've discussed at the end of the year. Indeed, the situation from the point of view of ours as the employer, it's stabilizing. We've reached an optimum when it comes to the human resources we have at our disposal today, compared to how we've constructed the backlog, and what we have chances for. But when it comes to the costs, it has been noted that there is a trend that is stabilizing. An average salary in the group is growing when it comes to single-digit dynamics, quarter by quarter. That's in all the segments of the group. I think that the trends which are in Poland can be transferred to all the places where we operate. I believe that Poland, the Balkans, Central Europe, those were the places where...
Portugal, too. Those are the places that felt the pressure most. At the same time, it takes them the most time to recover. But from our point of view, quite likely, we've already had the turning point. We can see that there are less applications to the job offers. And because of the fact that we have such a geopolitical situation and a macro situation, people are less willing to look for new jobs. So the challenges here might be in case of the new projects to acquire new human resources. But when it comes to what we have today, as I said, we feel that this is an optimum for the time being. We're waiting for the next questions. For now, there is no more. We encourage you to ask questions.
Should there be any topics you would like us to address, we are at your disposal. Someone is typing, but we don't know yet what it will be. Are there any questions in the room? No, no one wants to ask a question. Okay, we have something.
The next question, on shares, in the light of the forecast for the European Union's first, with such a strong cash flow that you've prepared presented, it might be much more beneficial solution to resign on the own shares.
As I said, we are considering all the options, and we might select this solution because of the point of view of the person who asked this very rational question. But right now, I don't want to exclude any other scenario. The situation is making us comfortable when taking the decision.
We can add that having the opportunity of implementing this whole process, we have decided, as we've said, or as we estimated, we wanted to promote the company amongst investors. So we are participating in bigger number of meetings with investors, both in Poland and abroad. We are meeting with investors who are individual, and we want to promote the new approach, of, the results presentation. It helps to investors that were not familiar with our company until now, and we can see bigger interest in our company, so we are very happy that we may again show the company after 20 years, that we've been present on the stock exchange.
Another question, in which time the company is planning to pay the, loan, that, was used for the purchase of own shares?
As I'm informed, we are going to do it in the planned harmonogram. I want to remind you that the basic plan is the plan to pay monthly the the capital rate, and in 5 years, to pay the half of capital, and at the end, bullet payment for the second part. I have not resigned on the right, and I still want to keep the right to say that, that it is possible, it might happen that a small part of the debt, we might have to roll it. But, it will all depend on how the situation of results and the cash would look like. Today, I would like to say that the basic scenario is as it was, and that at the time when we were taking the loan. How do you assess backlog shaping in 2024?
In May 2024, increase slowed down in all the segments compared to May 2024. Well, here, we of course see the numbers that are and we can see it slowed down. Please remember that sometimes those are the effects in one point. Signing one big contract in public may cause this number to look very well. But today, when looking at dynamics, we feel that there is nothing to worry about, and when looking at the burden of our resources, at how this whole year should look like, we are pretty calm. Let me remind you that the dynamics in the similar period of last year was slower. At the level of group, it was +4%, now it's +7%, sorry. So this seems that it's a satisfying result and number.
Another question: What EBIT margin are you expecting in 2024?
Our EBIT margin is impacted by so many factors that it's hard to formulate any expectations. We are trying to have such a policy of not surprising our investors. Today, the results for quarter one can be a benchmark, but the profitability, how it looks like on the level of the group, is dependent on the share of particular subgroups in the results. So it's very hard to precisely give a value. We have such an ambition to keep on working on the profitability, but to improve operational profitability, which is caused by more efficient use of resources, it's a process. Today, we are not focused on looking at it in a short-term, but long-term way. That's what we are working on. It's for sure, our ambition.
We have the ambition of formulating budgets and working on profitability, and it is our ambition for the next rest of the year. Another question, can you please comment on the assets in Israel, referring to a pretty high program for CEO? And, don't you think that the sale of assets could create, value for, stakeholders? Well, when it comes to the CEO program, this is a topic which, has been ongoing for years. Mr. Guy Bernstein, who is the beneficiary of the program, is co-creating the value of the group. Today, it's 2024, and, as far as I remember, in 2027, the program is going to end. It's been eight years. We are recognizing the cost of program in a linear way.
When it comes to Formula, we've always believed that the key to generate long-term value is to have people on the ground in the company, and those who would have the same interest as us and share stakeholders in Asseco Poland, in order to achieve this goal, Mr. Guy Bernstein has received such a program that aligns his interests with our interests. We believe that up till now, the values and the contribution have been delivered, and we are happy. But here, I don't want to give an absolute number, because we are focusing on creating a long-term value, both in case of Formula Systems and in case of Asseco Group and in case of Asseco Poland.
When it comes to the second part of the question regarding sales, I would say that we always, and in every, and all the time, if you are asking about own shares or acquisition or potential, sales transactions, we are thinking of scenarios and of different, scenarios. Here, there are different, scenarios that we are considering. We are calculating them because this is what, conscious management of such big group requires. As of today, it seems that Formula Systems contributes to the Asseco Group at a level that corresponds to our expectations. There are no indicators that would give a forecast of any other kind. At the moment, we are not going to take any other ad hoc decisions. Whether dynamics-
...that is clean of the real estate part can also be the forecast for the rest of the year? As I have mentioned, those quarter-to-quarter results, taking away the real estate, are organic results. Of course, there are certain question marks. There is also a larger potential in some locations, which at the end of the day, balance each other, surely. I would say that we can look at the first quarter as a quarter that is a benchmark quarter. However, it does not mean that today we promise you the same dynamic after Q. That seem to be of a cyclical nature. They, for example, this is the e-signature, and the first quarter is always the best quarter of the year. So if you look for forecast, long-term forecast, you have to take a longer time frame.
This is when we also look at, for example, we talk about longer time frames. One quarter would not be enough to be able to speak of the following three quarters. The next question, and Karolina has partially responded. Why do we have a decrease in the backlog, regarding... Well, compared to March? We have commented that, as Karolina, we have got a better dynamic when it comes to ERP and Asseco Central Europe. The dynamic has slowed down, and I believe that that was commented during the Asseco show conference. Can we see a better dynamic after the elections? So do we see that in Poland, or do we still see the dynamics that a new party is taking the power over in the country?
Well, we have got certain projects that are ongoing, or there are certain projects that were ordered at the end of last year. However, we do observe such clients in Poland, where there is an operational issue with the acceptance of our works. This is not really a threat to our result; it is just a perturbation in the cash flow. So that may also slow down certain projects or new orders or certain goals. However, it seems that we are at a point where the pressure that IT projects would be implemented in public institutions, that such organizations really make sure that they are operational. So we believe that the situation should improve, even in the places where, at the moment, temporarily, there is a slowdown in, I would call it, in decision-making, and we observe it. Speculations.
Could you please comment on the potential transaction on the five? First of all, I do not want to speculate. That's not my role here. At the moment, we have no information regarding Sapiens. So it's -- as far as I know, well, I have no knowledge that a transaction should take place regarding this company. Let me refer to the interview that Karolina gave on TV today. So, you know, are we looking for a partner? Are we looking for a husband? Yes, of course, it was about selling our shares. We don't look for a partner, but of course, we do look for investors, and we always be active regarding looking for new investors. I believe that this was the last question. Okay, someone is typing at the moment, and we can wait for that last question.
But if there are no further questions, then we would like to thank you for participating in our conference. Of course, contact our investor relationship department if you have got any questions regarding our activity on the stock exchange. I would already like to invite you to join us during the conference, presenting our results for the first two quarters for the first-