Good afternoon. Welcome on behalf of my great team. I am very happy that we can be together. No, I am not so happy as usual because I would prefer to be really together. My team has to play the role of actors now. We are not the best in this, but I hope that we'll manage. I am very happy that I expect my traditional partners in business are with us, but I welcome the new partners. My IR team informed me that a lot of international partners are following us. Thanks a lot for your trust. We are very grateful. I was always complaining that Asseco is not known as well as we should be known. The fact, I mean, the price of our shares today shows that we have much more people who started to believe in us. We deserve it.
I am sure of this because our history is beautiful. We managed to build very strong fundaments, and for many years we proved it, showing the results. Today we are coming in a very good mood because I am proud of this 2024 year. The results are really great. We are not so happy as we should be because we work in difficult conditions. All of us feeling responsibility for the world, we know we do not like these times. We do not understand these wars. We do not understand the war in Ukraine. We do not understand these difficult times in Israel as well. Thanks to God, it does not have any influence on our activities. We are successful in all these places. I am proud of my Israeli friends because one and a half years ago I expected that we will pay a very big price for this war.
My team knows me very well, and they know that net profit is very important for me. This PLN 520 million, taking into account that the cost of the loan is on the level of PLN 60 million, it costs that we achieved the best result in our history. Still, the majority of participants preferred this conference in Polish, so please forgive us that we switched into Polish. We agreed this with my team, so we'll lead this conference in Polish. We'll start from Marek Panek. I know for the new investors, I am Adam Góral, the founder. Artur Wiza is responsible for marketing and IR. Karolina is our fantastic CFO. Marek Panek is responsible for.
She's fantastic.
She's surprised that for the first time I told her that she's fantastic. Okay. Yes, she is. Marek Panek, also a great guy. Marek played for many, many years a great role, responsible for our acquisitions, for controlling the Group. Very successful person. Marek, the floor is yours.
I don't know whether it's better to be fantastic or more successful, but anyway. Okay.
Good morning, ladies and gentlemen. Welcome. Traditionally, I will begin with a business summary of what has been happening in 2024 in the Asseco Group. I will do it faster than usually because of the fact that the trends that we've been observing for the past three quarters that we've told you about during the last conferences are still ongoing. It has been kept, so there were no key events from the business point of view. My part is going to be probably briefer than usually, and Karolina's part also. This is going to leave us more room for questions and answers. We expect to have more questions and answers today, especially as we've had plenty from journalists. Nothing has changed when it comes to our Group. We are still building our business on the basis of our own programming and the services that are related to it.
We believe that this is the main factor which makes our performance on the market very good for years. We have managed very well in 2024 too. We believe that it has been a very good group for Asseco Group. You can see in the slide basic numbers which characterize this period of time. Sales on the level of PLN 17.1 billion. The non-IFRS operating profit up to over PLN 2.1 billion, and the non-IFRS net profit by 8%. The reported net profit that Adam mentioned on the level of PLN 520 million. This is 8% growth compared to the previous year. This makes us very happy, especially as we have reached it with very higher finance costs. We are still serving the pretty big loan that we have taken previously. We still have differences in currencies. A very big part of our business is generated in different currencies.
Therefore, we have to recalculate it. Should we stick to the constant stable courses, we would have 6% growth, but then the non-IFRS operating profit would be 10%. Please take that into account when you will be listening to the further part of our presentation. We continue our acquisition growth. In the last year, we've had 14 new companies joining our Group. Of course, we are going to continue that also this year. What has been happening in the different segments when it comes to geography of our Group? Let me begin with the graph which shows revenues from sales from different segments and from the geographic point of view. There is the Formula Systems segment, Asseco International segment, and Asseco Poland segment. I've been reading it from the lower to the upper part of the slide. We can see growths that are very satisfactory to us.
I am not going to read it out to you, what I've written in here. The trends are very similar. In Poland, we've had very good and very dynamic growth in the sector, in the financial sector, in the banking sector, in the public sector too, Asseco International. Here we want to underline very good activity of our ERP solutions, which are concentrated in Asseco Enterprise Solutions and those operate internationally. What's happening in Asseco South Eastern Europe, where we have noted yet another very good year, especially in the payment sector, which has grown by new companies which operate in new locations. The Formula Systems segment, this is the biggest part of our Group where all the biggest companies, especially the biggest ones, are managing very well in the original currencies. They've noted increase both of income and revenue.
Just to remind you, this is the division of our sales per separate product groups. Here let's begin with the blue color. We've listed here all the businesses that are the closest to us. Those are solutions for finance, solutions for public institutions, ERP solutions, other IT solutions. Those are the closest because of the fact that this is the activity which is based on our own programming. Here we note significant growth in income, but we are indeed having a slight decrease in sales of infrastructure and other activities such as solutions of third companies. We are not worried about that because this is additional activity which we are happy to phase away from. We quite likely are going to keep on contacting that in order to offer complex services to our clients. A word of comment, maybe two actually.
First, regarding the left side graph, the biggest share, we've been observing it for years. We note when it comes to solutions offered for finances, then when it comes to software solutions, solutions for public institutions, and then the other IT solutions. This is 15%. Another comment that underlines our very good diversification of our activities. This is share of 10 biggest clients is not exceeding 10%. The biggest client of our Group consists of 2% of our revenue. About what's happening in the separate groups of products, we are going to begin with solutions for finance. Here we have revenue of all the group on the level of over PLN 5 billion. This is 5% growth compared to the last year. The quickest growth of the business in Poland. Here we have reached almost PLN 6 million income.
We always underline that this is a very mature part of our activity in Poland. We have a very healthy stream of income from maintenance, from upkeeping and developing our systems. We are introducing new systems of implementation of core systems. We are operating not only in the banking sector, but also in the capital market, software and leasing companies. This all makes us very happy about this part. When it comes to Asseco International, over PLN 1.5 billion income. Here we underline dynamic growth in this sector of payments, which is the activity conducted in holding of Asseco South Eastern Europe. In Formula, we have PLN 3.4 billion. The biggest player in the sector from Formula Group is, of course, Sapiens. This is one of the biggest global providers of solutions for insurance. Sapiens operates all over the world.
From the PLN 3.4 billion, over PLN 2 billion is thanks to Sapiens. Solutions for public institutions, PLN 3.4 billion to PLN 600 million. The quickest growing was the Polish market. Here we have over PLN 1 billion of income that we've exceeded in Poland. Besides for traditional public institutions that we've discussed, we've been mentioning always. Here we have several names such as social insurance institutions, agency for restricted actors in indemnization of agriculture and agricultural social insurance. Besides for that, we also have energy sector companies. Those are mostly owned by the state. Here we also have public procurement and the procedures where we are qualified, naturally. In the Asseco International case, we have pretty low sales, PLN 430 million, 6% growth. The main players are Asseco Central Europe.
Here we are very happy because of the fact that after two years of stagnation in Slovakia and in Czech Republic, we've noted a very big improvement, new projects, and we are very happy about that. Of course, in public, we also have Asseco South Eastern Europe, but on a smaller scale. Formula, finally, EUR 2 billion over. The main players from Formula Systems is the biggest Israel company, which is Matrix IT. The ERP solutions, here we have over EUR 1.5 billion of income from all the Group. I suggest not to invest much time into discussing Asseco Poland. Here we have only our company, DahliaMatic , that introduces solutions of the third parties.
I would like to pay attention to the Asseco International segment, where we have our ERP holding that has been managing very well in the previous year, and we are very happy about that. Formula Systems, Matrix IT, here the activities are on two ways. On one hand, it's Tafnit, our own programming, and the third-party systems that Matrix has been introducing. The remaining IT solutions, when it comes to Poland, we've qualified cooperation with telecom sector, mostly digital Polsat Group, so-called Polsat Plus, that's how it's called right now, part of our business of our big company Asseco Data Systems. Formula Systems, which is the biggest contributor to this part of our activity because it is responsible for PLN 2.3 billion out of PLN 2.6 billion. Those are solutions delivered by Matrix and Magic.
Magic are mostly those platforms which are related to development platforms and outsourcing of the resources, especially in the U.S.A. This is part of the activity of our Magic company. The part related to acquisitions, I'm not going to read it all out loud because we have two slides where we've listed acquisitions that we've achieved last year, and we've also marked with a square line. We have also the companies that have been acquired where we have invested already in the first quarter of this year. In total, it was 14 companies that were acquired last year and four additional acquisitions performed in the first quarter of this year. We can see that this Group is growing and we will continue this activity. When it comes to the most active parts, when it comes to acquisition, it's traditionally Formula Systems plus Asseco South Eastern Europe.
This is it from my side. I'm giving the floor to Karolina now.
Thank you. I'll speak briefly about financial information strictly. If we'd like to take a look at something more than just revenues that Marek discussed, it has been PLN 17.1 billion. In the context of income, it's worth to underline that over almost PLN 3.1 billion come from proprietary software and services. When it comes to the level of EBITDA in non-IFRS, we have PLN 6.688 billion, and we have 8% CAGR. When it comes to non-IFRS EBITDA, it's PLN 2.1 billion, and non-IFRS net profit is PLN 577 million with CAGR of 6%. In the previous three quarters, we've mentioned that a significant impact on our financial markets is played by differences in currencies. 60% of our income is generated in different currencies than Polish złoty.
For the sake of reporting, we, of course, have to calculate it to the Polish currency. On the level of income this year, so to speak, it costed us PLN 718 million. It is the negative impact of the currency changes, but what has been added by the companies organically is PLN 694 million. As Marek said, PLN 260 almost million. This all gives us the final result of PLN 17.132 billion. On the level of non-IFRS operating profit, here when we begin with the result for 2023, we can see that it's been around PLN 80 million. This is the negative impact of the rates. Around PLN 10 million, it's an impact of one-offs. Here on the list of one-offs, we wanted to show you what's specific for this particular year. This is a net effect of two untypical operations.
On one hand side, we've had an added value of sales of properties. One was a sale of Asseco Poland property, and another was a sale of immobility in Slovakia from Asseco International. On this transaction, we've also described the results on our financial results. Those are two positive results that summarize to more or less PLN 25 million. On the other hand side, we have also impaired the value of the company with respect to some companies. This is described in our statements. These impairments affected mainly Asseco Poland and Asseco International. For Asseco International, we also introduced impairments of capitalized works in terms of development. The net result right now is +PLN 10 million in operating profit in non-IFRS terms. It won't repeat.
Now, when it comes to organic activity, it's + PLN 35 million in terms of our income, non-IFRS operating profit, and acquisitions account for almost PLN 54 million. Please remember these acquisitions were very profitable and really improved our results. Now, in terms of the net results, again, non-IFRS, it's quite similar reconciliation here, which you can see is the impact of a loan which we took by Asseco Poland. Now, the delta of the costs of this loan, and just let me remind you, it happened in Q4 2024, so the costs account for three quarters. It's a delta of PLN 38 million of additional costs. Now, one-offs that I mentioned before, similar impact here, and almost PLN 74 million account for the results of the Group for 2024. All of it together accounts for PLN 576 million non-IFRS net profit.
Now, if you take a holistic approach to the revenues and operating profit, I'm not going to delve into individual digits, but let me say this. When you look at the growth of sales when it comes to proprietary software and services, it's + 1%, + 2%. That's the delta that we reported. Now, if we could cleanse it, you can see it on the right-hand side of the FX conversion rates, it would actually be respectively + 6% and + 3%. We welcome especially the following: improved profitability rate, and it's visible everywhere, both in terms of EBITDA and non-IFRS and IFRS operating profits. It's 0.4 percentage points, 0.5, and in terms of operating activity, it's 0.9 percentage points year- on- year. Now, this improved profitability is related with different factors.
We mentioned mainly that there was a lot of pressure on remunerations, which disrupted our profitability in the years 2022 and 2023. This year, in 2024, it was smaller. If you look at the indexation of revenues, this profitability improved. The second factor driving better profitability is that in 2023, several contracts were ongoing that were of investment nature, meaning if you look at the deployment or implementation, they generated some losses. There are different reasons behind it. I'm not going to dwell on it right now, but last year, either they ended or we were able to renegotiate them or enter maintenance phase, which naturally improves profitability. You could say that the improved profitability will be kept. Now, what is going on somewhere along the line of operating profit and net profit? Look at the reconciliation here.
Interest rate, because of the loan we had, went up a little bit. At the same time, the loan or indebtedness in two other segments was smaller. The delta is different. It is smaller than in Asseco Poland alone. Similar effects on FX transactions. We generated more losses on M&A transactions, but I think it is not a reason to worry. PLN 32 million, it is mainly because of the conversion of certain conditional obligations. Those conditional obligations must be converted, and some companies then end up with better results. What does that mean, in fact? It means companies that we acquire perform better than we expected. Hence, we have higher conditional obligations or liabilities. Do not worry when you look at this minus. In terms of hyperinflation, this is a Group effect. Asseco South Eastern Europe derived from Turkey, similar year- on- year.
Now, effective tax rate, 21.3%, it's higher by half percentage points than last year. Where does it come from? We have additional burdens related with international taxes that we need to incur. The effective rate will remain higher in the Group. Also, tax relief for R&D activity was smaller. In 2023, we had some conflicting interpretations. In the end, we won, and we could regressively receive tax relief. That's why in 2023, that tax rate was effectively lower. Please pay attention to a higher profit share in subsidiaries. This goes back to two reasons. First of all, in Formula Systems, we introduced TSG Company to the stock exchange, and so we had to recalculate our package in TSG. It's a company which is controlled by Formula Systems and by a non-group entity.
The second result is because of the acquisition that was not reported here in this section because we purchased a minority package in Exon. This is Formula Systems. The contribution is quite important here. We expect it will stay this way in the year to come. Net result of the whole Group, PLN 1.3 billion, and the reported one with a dominant entity, PLN 520 million. Almost, as Adam mentioned before, this is a record result in the history of our Group. Now, let's have a look at individual companies without getting into too much detail. Please have a look at improved result of the dominant parent of the parent company, Asseco Poland, excluding dividends. Have a look here. We recorded here PLN 261 million as compared to PLN 194 million last year, which is a big improvement. Organic one, I would say. All the more, we welcome this.
When you look at other companies, ADS, the year 2024 is the year when we had two big contracts that were not that profitable, investments in international markets. However, we expect this year the company will rebound. When it comes to the remaining companies, the situation is quite stable. Also, in Formula Systems segment, Matrix IT observed record-breaking results in all categories. Calculated to PLN, maybe it is not as impressive, but if you look at these numbers in Israeli currency, it looks really impressive. It is like the best year in Matrix IT's history. Magic and Sapiens also improved their results a little bit, but as I said, we had a big FX rate impact. Both of these companies observed some improvements. Both report their results in US dollars. For Asseco International, we really welcome the improved situation in the Central European market. This is Asseco Central Europe, Slovakia, Czechia.
We see recovery after this difficult 2023. We can speak of a stabilized situation. The contracts right now enter the phase of maintenance. In some cases, special amending agreements need to be signed, so-called CRs, but it looks really well. When it comes to Central Europe, right now, we also consolidate our ERP Group, including Asseco Business Solutions, which also observed very good results last year. Now, when it comes to Asseco South Eastern Europe, here we can also speak of growth, even though ambitions, I guess, are a bit higher. In terms of Asseco International, this is a group which is most active in terms of acquisitions. At least that was the case last year. Hence, I believe the year awaiting us hopefully will show us even higher ambitions. What other segments have we left out so far? Western European market.
The largest contributor here is Asseco PST, which is Portuguese-speaking countries and our operations that we have there. I'd like to stress the following: what we generated in terms of the operating profit could also be cashed back. Looking at the 102% of cash EBIT, the best result in Asseco Poland, cash conversion ratio was a bit smaller in Asseco systems. If you look at the target, it was smaller for Asseco International segment. Why? Because Asseco South Eastern Europe had a lower cash flow last year, but it's only natural. It's a cyclical phenomenon. Free cash flow in 2023 was very good, so there are no reasons to worry here. These indicators are really good. Now, let's have a brief look at the balance sheet. The situation in terms of liquidity is very stable. If you look at individual segments, you will see dropping indebtedness.
We have the loan in Asseco Poland segment, which is being, however, serviced without any bigger problems. It seems that the picture is also quite optimistic here. For some time now, we have started showing you some proportional recognition of financial information. This form of recognition is where we multiply all items by the efficiently held package of shares in individual companies of the Group. We multiply each level of the structure, and it looks like you really welcome that perspective. We decided to keep that form of information on. Here, the trends are quite similar, maybe not as dynamic in terms of growth rates, yet it is not the case everywhere. We had some disruptions related with foreign exchange rates because there was more contribution of Polish złoty. Have a look at this. We see improved profitability in the proportional recognition.
It's much higher than in the standard consolidated one. In terms of EBITDA, non-IFRS one, you can see here relevant percentage rates for EBIT. It's over 1 percentage point. A similar picture is painted here for those that like models in terms of the cash in individual segments of the Group. The final slide that I've prepared for you is the order backlog for the year 2025. You can see here in fixed rates, when it comes to software and proprietary services, where the reference value of this year is PLN 13 billion, we see a growth by 9% in fixed rates and 6% growth in variable rates to the level of almost PLN 11 billion for variable rates. At the same time, please remember that in Q4, these FX impacts actually stopped being that visible. We will be getting close to absolute numbers.
Asseco International segment is mostly active here, including Asseco Central Europe. 10% growth in terms of Asseco Poland segment, mainly the parent company, and 7%. This is the growth accounting for Formula Systems segment, again, fixed rates.
Thank you very much, Karolina, Marek. I believe the presentations that they shared with us were the best evidence that indeed today there are a lot of reasons for us to be in good mood, and this is quite justified. At the same time, you know that I'm not that into history. I'm more interested in the future. In a moment, I'm going to tell you more about this. The good results caused that I thought we would pay PLN 3.85 maximum, and Karolina comes up and says, "Adam, take a look. We are following our investors. We are following PLN 3.94." Immediately, I've agreed to that. This was Karolina's decision.
We all are focused on one thing. Never. When we pay dividend, and here I want to thank my partner in the business very much that they were not making a pressure that you've been expecting our decisions because we have never paid dividend with the cost of our growth. When paying dividend, we still have money for the team that Marek is leading because the acquisitions are very important. It's a very important part of our activities. We've given proof. Pay attention, please, that we've had a very long history. In case of some of our clients, for years, we've had products based on old technologies, and we have managed to phase away from the old technologies in a perfect manner. We have not constructed projects that were somewhere far from the reality. We've done it in cooperation with the market.
We have not paid a price for the risk that sometimes is related to revolutionary changes. Here, I could tell you a lot. I believe that all our investors see PLN 3.94 as a satisfactory result. On Monday, we will announce and invite to the meeting of the Management Board, which has recommended the numbers that I've just mentioned. What's most important to me is the future. What's absolutely most important to our company and will always stay most important is on programming and services related to it. This is something that we've been cultivating very strongly. When you ask us about our strategy, I'm answering that because of our diversification, the strategy is a sum of the strategies of teams who are responsible for separate businesses in our case. We know that we are constructing a very strong position of banking sector.
have constructed and we will be fighting to strengthen it even more. We are a company that is visible when it comes to the world, when it comes to solutions for insurance companies. I am very happy about the improvement related to the telecom sector. Here, a project related to the digital Polsat had an extraordinary meaning. We have the team, which has vast knowledge and is very well prepared to build for digital Polsat the best IT system amongst all the operators. I am happy that we are following this path because the system of sales that we have delivered is on a very high level. Our client says that he appreciates this project very much. I am very happy about it. Healthcare, energy sector, public administration. Here, you know that today I have meetings that, well, I have plenty of meetings overall.
I don't want to list any of the most important, but there are particular meetings that have special meanings to me because I'm meeting tens of people from separate teams where we discuss the three-year-long strategy, and then we continue that. We've been doing it for years. In the strategy, we take care of product strategy. In this strategy, we make sure we maintain our market, and we are reflecting on how to increase the market. Today, I'm having such meetings, and the summary is going to be the meeting of our Management Board in mid-April. This, to me, is the most important. The value of Asseco, and this is what I want to tell to my new shareholders that I'm very happy to have. Those are the people and products.
Here, I think of knowledge of experts that we have because we understand better banks than the employees of banks. We understand better energy companies than the employees. This knowledge is something that we've been learning for years. When we speak about the strategy, when it comes to our long history that we've been creating together, we also take care to make sure that we have succession. I am happy of the level of preparedness of Rafał Kozłowski, who is going to take over from me. He is very good in the international group related to ERP systems. Up till yesterday, the transfer of power by an extraordinary person from my team that's managed by Paweł Piwowar and Tomasz Bendlewski. For many years, they've been a very good team, and Tomasz indeed deserves his new function.
He wanted to take this new position, so he's perfectly well prepared for that. Taking care of succession is a quality of my managers. They have the duty of answering my questions. Who is going to stand in for you when you cannot operate? Here, what helps me a lot is care. I believe that this is our true value. Additionally, wise investments, capital investments. Here, I'm thinking about acquisitions. Why wise? Because of the fact that we are not going to do it no matter what. We have very strong competition because of the investment funds. We try to find the reasonable solutions in the price. Sometimes we give up when we see that the price is too high, but we always will be very active when it comes to acquisitions. We are seeking for partners. We are seeking for people.
Asseco has been built on such a rule that we've managed to integrate ambitious entrepreneurs who have understood that only together we can build an international partner for the biggest players. This is our strategy. This is the sum of our separate strategies of different locations, which lead us to the success. Please believe me that we are not short-sighted. We can show you the proofs. The results are not accidental. The fact that we've had to make it on time to catch up with the world, which is not easy. Here, we've been giving you proof for many years. I also have two tasks that I've listed to myself that are related to my passion. It's further growth of competencies and solutions related to cybersecurity. Here, I am happy about the development that we've achieved as an organization. We have a very high level of care of cybersecurity.
I'm not very happy about our progress when it comes to the companies on the basis of which we build our market position. I mean, ComCERT company. Of course, today, we have plenty of excuses because the truth is, and I've been observing that in Europe too, the truth is that we are still neglecting this topic because the money that we spend on cybersecurity is not big. It's still better. People who sell equipment and foreign licenses under the slogan of cybersecurity, they are better off than the people who really guarantee cybersecurity, meaning analytic team of analytics and the teams who on a daily basis analyze movement in the network and who are first to come up with solutions that could respond to the risky behaviors of the bad guys. We have analyzed the European market.
We've been talking to several companies, which are always small, 40-50 people per company. If you take a look at our Asseco Business Solutions, this is a beautiful example on how from small companies, we've managed to make very well-recognized companies nowadays. They weren't recognized, that has a very good position on the European market internationally. We know how to integrate the smaller businesses. We know how to conduct, how to transfer the entrepreneurs who are in charge of those businesses, how to raise their awareness. I don't want to say that we are better as Asseco because I have huge respect for the entrepreneurs, but I still believe that we will be integrating and that we will find a wonderful leader for this particular domain because I believe that this will be a domain that will be earning decent money.
Yet another passion of mine, and I treat very seriously AI. I do not like to overuse artificial intelligence as a slogan because very often we are pushing it too much. This has been a domain that has been developing for tens of years. We are not going to be the ones who are producing the tools, but our knowledge about clients and their needs will make it already makes because we have plenty of use of AI. Our knowledge is going to make us very efficient. Here, we have decided to transfer the power to the person who all of us who sit here appreciate very much. It is Jaros ł aw Bryl, who is in charge of business intelligence. He has very well integrated the work in different teams of our silo structure.
We have strategies that we've prepared for that, and I know, I'm confident that we'll find a decent position in here. I want to share with you something that is soft maybe to some of you. It's not important, but for me, it's very important. We've had a meeting that was a dream of mine. 1,600 people from Asseco Poland in one place. I'm glad that we have such a place in Warsaw where we were able to fit. This energy, this mix of the people from my generation, the ones who have already grown older with the youth, if you were here, you would know that we are going to keep on succeeding. We are already forgetting about the meeting we've had on the 10th of January. In the very same timeframe, we've started our negotiations with Topicus. Here, we have yet another slide.
To be honest, I've been laughing. We've been writing with Marek Leonard, who is the creator of Constellation. Those were the longest negotiations I've had in my life. Those took a dozen years. Marek visited us many years ago. It was unfortunately before the attack of Russia on Crimea. Back then already we were very close to a deal because I've been looking at it from this position that we've had a very beautiful position of Central, Western Europe, Balkans, Israel, and then in the West, we appreciate very much what we have. We are very efficient, but we are the pretty small Constellation. Topicus together are very strong in Northern Europe, America, and are stronger than us in Western Europe.
What we will try to do is to give an example to Europeans, to keep on giving an example to us Europeans, what to do in order to be partners to the really influential companies. We are now waiting for the consent from the administration, and I hope to see. It's very hard to even plan it because in every single country, we have to get a permission, and we've been functioning in many countries, but we hope that we will manage by September to achieve what we are aiming for. I am quietly hoping that the access to knowledge that is at the disposal of Asseco companies to Topicus companies in the West and the exchange of information in between our companies will educate us, will make us be able to be able to help one another on a certain market.
We don't construct our future on the basis of models because what are the differences in between us? There are two groups that are growing strongly on the basis of acquisitions, but from the very beginning, I've been taking care of the strategy where I wanted to build the sectoral positions. In Asseco Poland, in the federation model, the exchange of information in between companies that create a particular sector, there is a greater exchange, and the attempt to cooperate is greater than in the federation model of Topicus or Constellation or TSS company. I am not going to encourage my friends to do the same thing. We will continue that. Absolutely. We will remain faithful to what we believe in because the information flow in between people is mutual education. Thanks to this, we are indeed becoming partners for the biggest players.
What do we count on when it comes to this Group? I respect our financial management. I expect also our system because it's efficient when it comes to the bonuses. I've always been saying that the richest in Asseco are the ones that have the biggest risk. They have relatively small constant income, but the majority of bonus, the whole bonus is related to their results. Maybe most likely we will implement what is in the other Group. We've been dependent or are dependent on the margin, on the fourth margin when it comes to our businesses. People who are responsible for the whole thing are dependent on net profits. Now, in TSS Constellation, there's a system whereby the bonus depends on the return on investment and on the growth of revenues. I'm talking especially about margin one, which is something that we actually already call the value.
Now, this is a system we would like to implement. At the same time, let's not expect any miracles. I am quite sure that my people go the extra mile. All of us want to make money, of course. Make whatever margin you can, and anyway, you're going to earn a lot. That's how we see this. I guess our people are motivated already. At the same time, I must admit that I never talked to my leaders saying, "Listen, you got the assets from me, and I expect the return on this asset that will be X." This is how they see things. As you know, companies with a long track believe that we are at peace. If you think this is my case, that's not true because my life is all about troubleshooting. Success is great, but I don't shy away from problems.
I believe it's only by solving problems that you can develop the company. You need to know the problems, and only then can you develop. This is the way we learned to operate. We are proud of what we've achieved, and at the same time, we face our weak spots. We don't want to persevere in those weak spots, and I think we've been quite successful in that because all of the people that followed those simple rules also succeeded. We are looking forward to that cooperation. We don't lose anything because we still have the power. If anything goes wrong, we will be the only guilty ones. That said, a new impulse in the form of a new bonus system would be a good idea. This will take some time, though.
If certain managers will be reluctant and they prefer to stick to the legacy system, we will be okay with that. We really appreciate the fact that we have been able to look at it in this way because we really get on well in the company. Leaders in both companies really know where the value of our companies is, and that value are our people. Diverting the attention from people, from what we do right now, would be only wrong. My dear colleagues from TSS told me, "But Adam, maybe we will be more dependent on you." This is the case in every acquisition. We are dependent on the new teams that we are attracting to ourselves. One more important thing. What I also appreciate is the five years that I spent together with Piotr Solorz.
By the way, we never had a written agreement, and I asked him once, "Why actually do you want to enter that deal?" He said, "Well, there was that project, an IT project that never went very well, and there I didn't have any impact, and here, at least, I had a say. I wanted to entrust you with the work on the system." I said, "So what do you expect from me?" "A dividend." I'm quite happy that the rate of shares went up. Cyfrowy Polsat made money, and Cyfrowy Polsat is still involved in the investments related with renewable energy sources. We really keep our fingers crossed, and we are quite certain, and that was one of my goals, really, to come up with a magnificent system. Today, we are working out a concept of an ERP system.
We are developing a new billing concept. Once these are completed, I guess this will be the company that will have the best IT system looking at all telecom operators. Cyfrowy Polsat and the whole bunch of people that I hold very dear there, I'd like to thank you very much. Thank you for those beautiful five years together. I believe that together we had the opportunity to find an investor that we appreciate. I am at peace when I think about our future. This is a well-known figure, the investor that I mean, and this is of huge value right now, I think. The shares that I have won't be sold. I like to look at it from a bigger perspective. I always relied on the dividend, and I think we are going to pursue that strategy, me and my friends.
I really like the fact that we have all that, and it also prolongs our perspectives for the future. I guess we can learn a lot from each other. Right now, unfortunately, we can't do anything together anymore for a very simple reason: the antitrust law, as a result of which we must act separately. I mentioned learning from one each other, but so long as we don't get proper consents, we won't achieve much here, and yet there are some still touchpoints that we definitely will collaborate on. And we will. Thank you very much. Sorry for speaking so long, but it's so rarely the case that I'm invited to these meetings, so thank you for your attention.
Thank you very much. Also, we would like to thank all the attendees for your participation in this meeting. It's the first time that we have 112 people following us, 1/3 of them from the international scene. This is really record-breaking. Please do not hesitate to keep sending in questions. We will try to provide you with answers to all of them. Some of them have already been addressed, in one of the presentations by Karolina, Marek, or the CEO. Another question was already answered by Adam. I think this question has already been answered. Again, Adam answered that one, so let's move on. Another question is on when the decision will be taken on the regulator's consents for the deal.
I think Adam already introduced that concept, and it's really hard to foresee that because we do not talk here about just one consent. Rather, we have to file three different applications. One is anti-trust. This is European Commission plus i n some non-EU countries, this is required. In some of the jurisdictions, there are very different regulations that we need to adhere to. There are some other FDI Investment Regulations, and one more, which is Foreign Subsidies Regulations. Our plate is full. Some of these applications have already been filed, but not the most important ones. I guess the largest antitrust application that will be filed with the European Commission is only being elaborated right now, and I don't presume that that process will end overnight. I'd say it's rather a matter of months.
Right, let's go on. Can you see any potential revenue synergies with Sygnity? After all, you have the same shareholder, and if so, what are they?
We actually are competitors of Sygnity. The fact that we compete doesn't mean we don't like each other.
At the same time, Sygnity is based on the principle that I mentioned before. They are our competitor. We respect each of our competitors, and we hope they will be successful.
We are separate entities. I would like to stress that. There will be no crossing over on Supervisory Board levels because this is required by law. We cannot speak about any synergies here.
Plus, remember, Topicus and the management thereof have such a great understanding of that business that they did not want to interfere. They simply believe in us. They approached a good organization, and they believe we can make money together. We really have impact on everything, me, Rafał, and there will be no external interference with our personal choices. I signed the shareholders' agreement willingly.
After all, it's great to have a partner like that, a partner that has such a great understanding of the fact that we were able to build value on the market and that this is worthwhile pursuing. We appreciate that. That's why we want to join our forces. Otherwise, we wouldn't have gone in that direction. We don't like to politicize, really. I appreciate my people. They have the risk element in their remuneration, so it doesn't make sense whom I like more or less. Those people that make the best contribution earn most. That's our philosophy. That's who we are, and this is how I perceive our value. I'm sure that we will continue the same track with our new friends.
Another question on the transaction. I'm not sure whether we would like to add anything on it. Let me quote.
How important is that the acquisition actually gets approved?
As I said before, we need to wait for the approval. Until that time, we won't implement anything.
How will the M&A approach and strategy change going forward with input from Constellation?
Again, this has been answered. We will try to utilize their experience.
Do you have to wait for approval to begin implementing the Constellation methodology for M&A and capital allocation? It seems that it could start immediately.
Yes, and yet I'd like to add one thing. Please remember, Constellation's investment into Asseco is a very atypical thing of them. It's the first time where they took over a minority package. Once we've received all the improvements, TSS will hold about 25% of our shareholding, which changes their approach.
They won't treat us just like any other company within Constellation's Group, which is something we welcome because we are going to get access to their know-how. We will learn more about their methodology and how they acquire other entities. We definitely are going to use that valuable knowledge, and yet it doesn't mean that we will be yet another element in their ecosystem. This was clarified at the very beginning of our conversation.
Another question, similar one. Can you clarify the responsibilities of the TSS representatives in the Board? Besides the incentive structure, do you consider to work more on cost-cutting and price increases?
Right. In terms of the Supervisory Board, we hold the power together, so we will need to choose the new Supervisory Board. In the shareholders' agreement, we detailed all the activities that we undertake together.
Definitely, we will have more say. We will vote. We find it tough to take some of your questions because legally, we will never publish the shareholders' agreement. I'm very sorry, but I can't share all the details with you. The deal was possible because, as I said, our organization is respected by our partner. Don't think like this. I mean, we are those that will have a say on our costs and on our ideas. This acquisition deal will help us join our forces, and as I said, we don't want to buy at any price. There will be a special investment committee with me and with Marek, and we ask the representatives to be with us because we want to take wise decisions on which company we should acquire, and that's it.
In the case of some large-scale acquisitions, we will be able to say, "This was our joint decision." I'm not sure what I am allowed to say and what not, but I think this is only business logic. Hypothetically, we could compete, right? Think about this. We have a great idea of what company we would like to acquire, but then together it was decided, "No, don't do it." Yet, at the same time, someone from the other G roup purchased the company. No, this is not possible. We have proper safeguards in the agreement. Once we take a joint decision that we are not going to purchase a company, this is, of course, limited by time. We want to reconsider after some time, obviously. Believe me, both parties to that deal prepared the shareholders' agreement with due respect, mutual respect.
We want to be fair, and I am not worried. Even if certain situations occur that we did not foresee, we still want to build the value of the companies, and we will not lose it because it is the long years of work and effort of many people. If we end up in a dispute, I am sure we will be able to settle. After all, together, we will think about our wealth, our company, and our value on the stock exchange and the people. After all, it is the people that are the largest asset.
Now, speaking of acquisitions, M&A, when it comes to the intervention of the Chair, when it comes to cybersecurity, are you taking into account taking over public companies?
Marek, I believe that this is information about a particular company, the public company that would be in charge of cybersecurity. If there is one, then I would be happy to find out about it. Maybe I'm not aware of something.
Of course, we are looking for companies in the scope. We have analyzed it, and Adam has touched upon this topic. We've analyzed the European market when it comes to such companies which are rather providing services and products or integration. We have a certain picture that is related to the talks that we are having with certain companies, so I don't want to go into detail, but indeed, it is interesting to us, and we are seeking. If you have any interesting candidates, then we are very much open, and we are at your disposal.
Should you have any information regarding interesting companies, then the team of Marek would be very happy to reflect on it. A question from a different category.
Where do we have the particularly high income from 2024 when it comes to the services deliveries? Should we expect a continuation in 2025?
When we are thinking of the growth of the receivables, then there are two lines about it in our report. Yearly, we have around PLN 500 million of income, as far as I remember, from those receivables, and this growth comes from different places, but the biggest contributor has been Matrix IT Company. We believe that this is a rule that when we have to deal with a growth that has source in public institutions, overall public segment, so to speak, then we cash it relatively slower. This is because of structural reasons. Here, there is nothing to worry about. Of course, it's making our operational cash flow worse, and it's cyclical. A gentle growth of receivables.
We also have it in the Asseco Poland segment in the mother company, and here the reasons are precisely the same. I believe there is no reason to go into detailed analysis. This is simply how it is. When it comes to receivables and the assets, we've been analyzing them very much in detail. From the beginning of the pandemic, we have made the processes smoother. When it comes to uncashed invoices, this is the marginalized value. This is what we can see from the detailed analysis. The clients from the public sector are the clients who, as per rule, always pay. When it comes to a very specific lesson that we teach to our business, is that when we are bidding a price, we are taking into account the value of money in the time.
It is not only about index, but the value of money in time. This is something that is included in the margin. We take into account, and we are reflecting on it as a business, and I understand perfectly well how the price should be structured depending on the time of payment.
Yet another question to Karolina. A request for details when it comes to the copy of the balance sheet when it comes to the companies.
This year, we've had part of the goodwill value of the company, both when it comes to DahliaMatic and ComCERT. We are trying to be very conservative when it comes to showing our numbers. It is not a mystery, though, that the results of ComCERT company are not the results that are satisfactory to us.
Of course, when we are preparing models and we are estimating the value that we could regain from the investment, we are assuming different scenarios. When testing of goodwill from the point of view of the loss of value, when we were preparing a yearly report, when it comes to assessment impairment, it turned out that the value when it comes to ComCERT was lower than what we've had in the financial report. Those are millions of złotys . It is rather a question of the business perspectives than the numbers of money. When it comes to DahliaMatic , we have once again derived a part of the goodwill from this company. Unfortunately, the results from these companies are not satisfactory to us, and therefore, we are skeptical when it comes to the forecasts.
This doesn't change the fact that we still believe in those businesses, and we will be restructuring them. In order to be fair, the picture that we are showing at the end of the year, this is related to the fact that we have listed and wrote off part of the assets.
Another question for consolidation of Sapiens company. In the yearly report, the threshold of the frequency was 87%, and in the future, such frequency in the past, such a frequency has been noted. In relationship to that, how the company assesses the risk of lack of the basis for the consolidation of Sapiens company?
This is a very detailed question, and I will try to give you a pretty general answer to that.
When we are assessing whether there is existing control or control over a subject where we have assets, we are taking into account many different factors, including certain stats. Please remember that here, significant meaning is of a legal framework and the action stakeholders' structure and the Board structure understanding from both the part of executive and non-executive Board. We are speaking about a company that functions in a different legal framework than Polish. Please remember that all those factors are taken into account, and from that, we are creating an analysis that we are presenting in the financial report. I think we are presenting it in a pretty detailed way, so I'm sending you back to the note. I think there are two key things. This outstanding frequency was one time from looking at the history.
Overall, the frequency on the shareholders' meetings will be increasing because it's more and more often possible that we can participate there remotely. There is quite often one person representing different units, and therefore, the turnout is increasing in a natural way. Where we've had an outstanding turnout, there we've had a vote where the shareholders were voting in line with recommendations. In Israel, we have those bodies which are informing on how the stakeholders should be voting, and there was a recommendation of the subject that was an advisory body to the stakeholders. This was in line with what the Management Board wanted, and this is how the vote took place. The key factor when it comes to decision regarding Sapiens to us, this is the fact that we don't have even a single shareholder that would have more than 5% of shares.
This means that it's fairly dispersed with the holding, with the value of shares that Formula owns in Sapiens. This means precisely that all the stakeholders would have to make a deal against the main shareholders, and this could be charged. Here, it's a multidimensional analysis, legal analysis, which leads us to the conclusion that Control Group controls Sapiens Group, and therefore, Asseco Group controls via Formula Group. We have a control over Sapiens Group.
Another question, a request for a comment related to the details of payment of dividend related to the own shares sale that we spoke about during the transaction. What can be the timeframe, and what can be the scale of it?
You know, for sure, I don't want to speak in detail about it, but for sure, dividend in the year, if this transaction gets finalized, because we are dependent on the permissions of the administration. If this materializes, then for sure, dividend will be there in the next year. It will be much higher, and a big part of the money will be allocated to, we will allocate it to paying the loans. In the next year, we will have again a big amount of money that we will collect. There is a high likelihood of much higher than the current in the next two years.
Karolina, is it okay to put it this way?
Almost.
Add something from yourself.
In the current report, we've informed that the net income from the sale of own shares.
Here, I want to remind you that we didn't say the whole package of own shares. 3% are left on the balance. The impact from the own shares sale will be paid in the form of dividend. We said that quite most likely it will be in two tranches, and this is what we are going to stick to. Of course, here we have to take into account standard questions such as what Adam mentioned, potential loan payments or other management of liquidity. We are sticking to the reports, to what we wrote in the current report. Those are net transfers from what we receive after receiving all the permissions and after calculation of those transactions. We will want to give back to all the shareholders.
I mean the income after taxes, and here we are establishing the approach, how to specifically calculate the impact, the tax on such a transaction.
We will try to give it back within two years. We are not heading with dividend because we know what will be the value after the sale.
This is what we wrote, that in two rates.
Yes, precisely.
Will the collaboration with Constellation have on Asseco South Eastern, where you have a majority stake, and what impact will it have on the Asseco Business Solutions?
We will want to propose to leaders, to Piotr Jeleński, to Jozef Klein, and to the team of ABS. We want to suggest the program, which at a certain point will start implementing. This is the Bonus Program.
I believe that they also will be happy to take part in it once they find out about the details. This is what we think of. We want to give a new incentive to those places with the program.
Those programs and the new conditions of salaries will be on certain levels. Here, it's worth to mention that we will be inspiring on a certain level, but the decisions and the relationship between Asseco Poland and shareholders. We have established that the decisions on the level of separate companies are going to stay in the management of the Group. This does not change the fact that we have to promote the best practices to all the companies, and this is our approach. In certain public companies, we have to establish it, taking into account shareholders of the company.
The next question is this: will it be also visible in those companies where you have minority stakes, especially more Formula Systems?
No. Israel is excluded, meaning Israel is here to learn. We even had the very first visit where we talked. Guy Bernstein is a very wise manager, and initially, he might have been skeptical about this. We talked about this, and he is also a big fan of development through acquisitions. If he can find something that could make a positive contribution for his Group, I'm sure he would go for it. However, we will be very open to it, but the final decision will be taken by him.
Right. Just like I said before, there will be potential inspiration and buy-in in other components of the Group. If that's the case, nothing is excluded.
If you talk about public entities, especially where the shareholders are different, where we have minority packages, for example, even though in Formula we have the controlling one, we will be open to discuss this. What I would like to stress is that the actual modus operandi is quite similar. If you talk about KPIs, the return on investment, acquisition policies, and so on and so forth, we can't speak about any revolution here. Rather, it's inspiration or maybe more discipline. In principle, don't expect any huge revolutionary change. After all, when you look at Formula these days and the number of acquisitions that they've been making and how they fund them, what are the rates of return? In fact, we are so close to each other. It's so similar.
On top of that, the way we think about this is the following. The Polish team with Marek, Karolina, and Rafał Kozłowski right now learns about more details of what has been implemented in TSS, and that Polish team will be the only liaison to what we account for, which is the Group. Our friends definitely won't interfere in what's going on in the Group. Once again, it's just that there was this great shareholder that came up. We want them to be successful. We can learn from them. Anyway, we keep continuing along the lines that we had in the previous years.
One more question. [Foreign language]
The answer is yes. Definitely yes. [Foreign language]. Even though we haven't been able to find many synergies, [Foreign language] , might still be possible. Look at what is going on in the world.
We have a team which is dedicated to the military. I mean, this is not really my world, even though we provided products for Frontex in Poland. At the same time, it's not really my world. However, in terms of the military, Israel is very strong here. We have a company there that has solutions which Europe badly needs. We are this great liaison. We need Israel so much. Israel is so efficient, and we should want to stick to them. There may be some situations that could surprise us, but at the same time, I really give a lot of credit to that Israeli team. I think Israel also learned a lot in the meantime. Karolina keeps teaching them on how to report on time, for example. Please admit it. I guess when it comes to timely reporting, we are the best.
In terms of how to build global companies like Sapiens or Magic, we learned a lot from them. We can speak about a lot of know-how exchange. You know what my dream used to be? It did not come true. I dreamt that the Polish product would then be sold by Israelis in the U.S., but it did not happen, and I think it will not. Meaning we must invest in the U.S. on our own, otherwise Israelis will not help us sell. I get it. They have been very frank, telling me, "Listen, Adam, our margin on services is like 6%-8%." I do not know whether I will be able to sell the product in the U.S., so I cannot risk losing the money. If you want to pay for that, do it. I think it is only fair.
Even though, as I said, initially, I thought that maybe that would be the case. For the last 14-15 years, it did not happen. Look around the world. Everyone respects Israel. Everyone looks at them. Irrespective of who is governing in the U.S., they still respect Israel. We have control over the market in Israel. That is something we need, and that is something that brings us also many other values, which cannot be measured, really.
In the same spirit. Oh, and one more thing. Guy actually agreed that we would have a higher dividend. Oh, sorry. I should not have said that, right? Anyway. Ladies, we did not have the right to reconcile that together, but anyway. Ladies and gentlemen, let us treat it as an inspiration, the fact that we discuss improving also financial KPIs. Talking about Formula, I would like to add one more thing.
That investment made so much sense financially, and it still does, because we do look at the returns on the investment. It is debatable what the rate of dividend would be, but remember that Formula keeps reinvesting through acquisitions. From the viewpoint of pure financials, that investment is still profitable. It was one of the better investments by Asseco so far.
To continue, and that is the final question that we have received online so far about ASEE and ABS, whether the current ownership structure will stay unchanged or whether you think you should increase or decrease your exposure.
We have not considered that, actually, so far. We did have such ideas in the past after all these are thriving companies. Why should we spend money on third-party companies instead of investing more into things that we control?
I do understand where you're coming from by asking that question. So far, we don't think about this. We would rather like to improve our cooperation with our new partner. It's with our new partner that we will come up with some new ideas, I'm sure, in the future. We haven't been thinking about this together yet. I think it's a matter of a couple of years' time.
We still have some attendees here in the room. Do you have any questions? None. There are no more questions online, so that means we would like to end this meeting.
Before we end, let me take the floor one more time. As you know, I loved our annual meetings where we all could meet in person. Of course, it's great to have international shareholders on Board.
It would be hard to require that to come regularly to Warsaw. At the same time, it would be great to see you. What should we do? I asked Artur to meet again, and he said, "We would need to discontinue our online meetings." I asked, "Is it legal?" He said, "It would be legal, but we are a company of that size that we should never do it." If you allowed Arek to do it and instead of an online meeting, have a brick-and-mortar meeting on site, that would be great. Anyway, thank you very much for several people that did join us here so that we could talk to you instead of just being like actors looking into the screen, because that makes things so much more tricky. It is really so much better to talk to real people and see real emotions.
Anyway, I appreciate that meeting. I appreciate your presence here. I thank our IR team. They are still at your disposal. If you have any questions, we will be active in terms of our relations with investors to new investors. Thank you for your trust, and I'm confident we will be successful together. Thank you for this great meeting, and see you.
Oh, we actually got a reaction for some people that, "Yes, we do agree. Let's organize another annual meeting in the center of Warsaw on site, and we will exert pressure on you so that you come and we can meet you face to face to share information about the company with you in person." Thank you for coming to this meeting. See you at the next meeting following the first quarter. As always, our IR team is here for you.
Thank you, and see you at other meetings. Thank you, and have a good day. Bye.