Good afternoon, ladies and gentlemen, at this conference where we will discuss Asseco's results for the nine months of 2025. As always, we will present the activity of the group, and we will tell you more about the finances. In the end, we will make sure that all the questions are answered. In the meantime, feel free to send questions to us. Again, we would like to welcome Karolina Rzońca-Bajorek, CFO, and Marek Panek, who is in charge of group development. Now, Marek, I'm sure, will begin with the introduction. He's smiling, so probably he has some good news to share. Marek, over to you. Tell us how we've been doing in the last three quarters.
Good afternoon, ladies and gentlemen. It should have been my show, but still, yes, we have some positive news. We are summing up a very positive, another subsequent positive period in Asseco's activity. Now I will tell you more what were the highlights in the first three quarters. Let me start by summing up. You see here some key figures that I would like to communicate. First, results. As you can see, we've observed a very dynamic growth amounting to 11% compared to last year, amounting to PLN 12.3 billion. Our profit, operating profit, was growing even faster, the non-IFRS one, up by 18% to PLN 1.4 billion. Non-IFRS net profit went up by 29% to as much as PLN 516 million. Now, the profitability also improved, the non-IFRS one. It's close to 12%. Taking all this into account, we have reasons to be happy. Indeed, the first three quarters we believe were very satisfying.
These results are driven by the fact that we've consistently been pursuing our strategy, the strategy that was coined 30 years ago. It's based on our own products, our own software, and on diversification in terms of sectors and geographies where we operate. We are getting stronger in our core areas: finance, public administration, and ERP. At the same time, we've seen some promising areas looming. We've been talking about them many times: cloud, cybersecurity, defense, and recently AI. In all these areas, we are more or less advanced. We take a close look at the market, and we want to make sure that we are present in all of them. This is kind of an untypical slide because I'd like to mention one such event, which is we signed as Formula Systems the agreement for the sales of a majority stake in Sapiens International.
This contributes to our results, even though this transaction has not been consumed yet. In August this year, an agreement was signed to sell the stake in Sapiens by Formula. With that, they will retain 18%. As a result, we are losing control over Sapiens. That was reflected in financial results. Sapiens, as a result, was excluded from consolidated revenues and costs, as well as income tax. The data are no longer part of the consolidated revenues. It is now classified as discontinued operations. The net results of Sapiens are included in the profit and loss statement under net profit from discontinued operations. The transaction is expected to be finalized at the end of Q4 or beginning of Q1 next year. We already announced previously that it will have a significant positive impact on the result of the whole group.
We will tell you more about this at the next conference. Now, coming back to the traditional part of my presentation, I will start with a short summary of activities in individual geographies and segments. I suggest that we focus on the graph that you can see now on the right-hand side. It's the sales revenues broken down by segments. Starting from the upper part, it's Asseco Poland. This segment was marked by the highest growth of as much as 14% period to period, followed by Asseco International, plus 12%. Here we are close to the amount of PLN 3.3 billion. The largest part is the Formula Systems that observed 11% growth and achieved PLN 7.3 billion. Remember that Sapiens is excluded. In a nutshell, I would say the following no big highlights for the Polish segment. We look at the public one.
We have a strong position there, and it grew very dynamically. Also, we would like to stress that we have a strong position in the finance segment. It's mainly banks in Poland. For Asseco International, I'd like to point out ERP solutions and solutions dedicated to banking, especially Eastern Europe, Central Eastern Europe. Formula Systems segment. Here I'd like to mention record revenues of Matrix IT and some satisfactory growth of this new part, which is Michpal Group. Here you can see the revenues broken down by product groups. Again, please focus on the graph on the right hand. Let's start from the upper part, plus 8%. It's solutions for finance. And really, it's one of the largest segments with respect to software in our group. The finance one brought us as much as 23%, and the largest software-based is the public administration segment.
It grew at the most dynamic pace. Exactly, it was + 16%. We are very close to the amount of PLN 3 billion. It is about 25% of the revenues of the whole group, solutions for banking institutions. Now, ERP solutions, here we observed an almost 10% rate of growth. Looking at the remaining less software-based IT solutions, it is categorized as other IT solutions. It is + 12%. I will then remind you what it includes. Infrastructure and third-party solutions still generate a considerable part of our revenues, but it contributes to lower margin rates. Still, we were able to generate 10% of growth here. I would like to underline once again our diversification. The share of the 10 top customers in our case is 12%, and 2.5% is the share of the largest customer in the group's revenues.
Moving on, let's have a look now at those individual solution groups in detail. I will start with the finance one. As you can see, we have almost PLN 2.8 billion in terms of the revenues, + 8%. That's the change. The greatest contributor is no longer Formula Systems, as it used to be the case. Probably now Sapiens is excluded. Right now, number one is Asseco International. There we have almost PLN 1.2 billion revenues and a 6% growth rate. Just to remind you, it involves Asseco Eastern Central Europe solutions for banks and payment solutions. Additionally, it's Asseco Central Europe and Asseco PST. That is the activity in Portuguese-speaking countries. In all those segments, we observed growth. 6% is the growth of the revenues. Formula Systems takes the second place in terms of the contribution. PLN 1.1 billion is the worth of the sale, 11% growth.
Excluding Sapiens, this is now Matrix. That is the main player. They have a lot of banking projects in Israel and Magic Software. Now, Asseco Poland, that makes us very proud for many years because we believe that our business for banks in Poland is very mature and very sound. It is a great stream of recurring revenues for the company. Here we almost have PLN 500 million revenues, and the growth rate is 10%. Please be aware that we not only serve banks, but also brokers, houses, and leasing companies. All of that together generates almost PLN 500 million. Solutions for public institutions, as I said before, that part grew at the most dynamic pace. We have 16% worth of growth. We are close to PLN 3 billion in revenues. The greatest contributor here is Formula Systems. Again, Matrix IT is the main player.
It's the largest IT company in Israel. At the same time, they have a large share in the supply of solutions to the public sector. Many Israeli public institutions utilize Matrix Solutions. Matrix is followed by Asseco Poland in terms of the size, PLN 900 million revenues. Again, a very dynamic growth, 21%. In Poland, as you know, we cooperate with many big public institutions. I'm not going to quote them. I'm sure you know what I mean. We also have solutions for local governments, smaller clients, and for the healthcare sector, where we are an important entity offering solutions. That dynamic growth makes us very happy, obviously. Finally, Asseco International. Here we welcome an almost 30% growth of revenues, mainly driven by Asseco Central Europe. We were able to restore our position. That makes us very happy. You may recall some fluctuations in Czech and in Slovakia.
Some projects were put on hold in the public sector due to the geopolitical situation. Now we are happy to see a return to these projects. Also, I'd like to mention Asseco South Eastern Europe. It is coping very well in this area, as well as Asseco Lietuva, our Lithuanian company. Now, ERP solutions. Here we have a lot of revenues. You can see that on the screen. And the revenues, CAGR plus 8.6%. Asseco International here is the most important one. Remember, we consolidate here Asseco Enterprise Solutions that operates mainly in the ERP sector. It observed 4% growth and generated revenues over PLN 700 million. Number two is Formula Systems segment with 14% of growth. We are close to PLN 450 million. This is mainly the contribution of Michpal Group. It's a new group, HR and payroll. That's their correctivity. And we treat these solutions as part of ERP.
Hence, that revenue is classified as this segment. Also, Matrix should be emphasized here, a company that also has proprietary ERP system. And some third-party companies. And Asseco Poland here. It's only PLN 50 million, so you might think it's quite negligible. But still, it makes us very happy because they have a good growth rate of 22%. It's mainly DahliaMatic. By the way, DahliaMatic in September was moved to Asseco Enterprise Solutions group so that all ERP solutions are offered as a one-stop shop. Now this will be moved out to a different table. Now other IT solutions. Let me remind you, this is made up of. First, these are the solutions that are not classified in the others. This is our trusted services and our software related to trusted services produced by Asseco Data Systems. This is also about resources outsourcing.
This mainly comprises Magic Software in the U.S. and Israel. Also, platforms for software development that are supplied by Magic and dedicated solutions for different types of companies supplied by Matrix. Other solutions offered by our company offer PLN 2.2 billion and 12% growth for the whole group. Let me also mention that it also covers our ITC solutions for Poland. This is a project for the Polsat Plus Group. In Poland, it is over PLN 150 million revenue. This group of solutions accounts for an 8% drop in this case in Poland. Do not worry about it. This is because of some seasonal aspect of this project carried out by Four Offset. Now, acquisitions. We are continuing the activity here. Nine new companies have joined us. Two bought in Poland, one in Slovakia, one in Czech, three in the Israeli market, one in Spain, one in Egypt.
We will continue acquiring companies. In Q4, there will be some new companies joining us in the group. As you know, this is part of our growth strategy, and we take it very seriously. So much from me now over to Karolina.
Thank you. I will discuss the P&L. Marek has mentioned the revenues, and I would like to add a few points because revenue on software and on proprietary services is growing at a fast rate. I will also discuss the backlog at the end of the presentation. EBITDA over PLN 1.8 billion and CAGR 8%, and EBIT PLN 1.4 billion plus 7%. The net profit is PLN 516 million, and this amounts to 8% of the CAGR. Now, period to period, we can see that there is a negative effect of the currency rate. The negative effect is PLN 135 million.
If you have a look at the growth rate, it's around 2 percentage points of difference between the currency rates. Now the organic revenue has been growing by over PLN 1 billion, and the acquisition adds PLN 355 million. As a result, we have the result of PLN 12, 255 million revenue. Let me also mention what Marek has been discussing, that this does not include Sapiens, which is recognized in a different place. Now, non-IFRS operating profits, PLN -16 million . This is the foreign exchange rate. We have the topic of real property sale, which was positive. This year, it's negative, and this is non-IFRS. Let me remind you, some one-offs have been already cleared. They were included in the results of this quarter. PLN 215 million, this is the delta of organic results, and PLN 33 million, this is the effect of the acquisitions.
Now, the net profit, one-offs, PLN 11 million, this is the real property sale, and PLN 128 million, this is the organic result of our companies. Now, let's break it down into different segments, non-IFRS net results. For some time, the trend has been quite steady. Asseco Poland has been the largest contributor here, and PLN 4 million is Formula Systems, and PLN 26 million is contributed by Asseco International. If you have a look at the revenues and operating profit, we have already mentioned that the growth rate amounts to 11% total services. Proprietary services, 12%. You can see the dynamics on the right, excluding the FX rate effect, and this is the change. 13% if you freeze the currency rate exchanges. Three quarters to quick, three quarters, there is 15% and 15.1%.
Now, Q3 to Q3, there's a drop in profitability, but I wouldn't worry about it because this is the effect of the adjustment because of the activity in India and the acquisition that was taken away from the results this year. Without this acquisition, profitability wouldn't be lower. If you look at it segment by segment, you will see in a moment that there are segments where the profitability is improving. Now, the revenue from operating profit, 18%, this is the growth rate. It would be 19% if it weren't for the FX rates. Profitability Q3 to Q4 improves, and there is a significant effect of one-offs because of the M&As. As a consequence, the growth rate is a bit lower. It's 16% after the three quarters. Interest-bearing results are quite similar, and foreign currency transactions have a bit lower effect.
There is hyperinflation and other adjustments. We have received many questions about the effect of tax rate. As you can see, period to period, it goes down by 0.8% point. There is also a significant impact of Asseco Poland. This is a positive tax effect, and it's largely due to a one-off. This is because the whole loan time, we couldn't recognize the interest of the loan taken to buy our own shares. There was no revenue there where we could match the costs and use it effectively in the tax declaration. Once the transaction took place and we knew that we would be selling our own shares, this option appeared. We could use this tax loss in this item. This is the most important effect here in this quarter.
We have been filing requests with the tax office for interpretation to settle the taxes in the most logical way possible. We have also obtained a positive interpretation from the tax office, which is actually contradictory to another one we received a few years ago. We have already made some adjustments to the tax settlements for the previous years, and we will continue to make adjustments, but this takes time. Hence, the impact on the effective tax rate. Now, Q3 2024, we must say that in Q3 last year, there was a positive effect because some overstating of the TSG investment at the level of Formula Systems, it was a one-off. There is no such effect now. That is why this time it is smaller than what we have been used to because of the one-off last year, which was quite important. Net profit attributable to shareholders, it is PLN 453 million.
You can see that the dynamic here is larger. Because the largest dynamics is always where we are consolidating the highest %, which is effectively in Poland, Asseco International, and lastly, Formula. This is precisely what I've been talking about. Have a look at the parent company, Asseco Poland. You can see the growth rate of the revenue and the operating profit here. We can see a huge improvement, period to period, PLN 272 million compared to PLN 201 million, period to period. We are very proud of our parent company and its results. Now, Asseco Data Systems has improved significantly as well. If you have a look at operating profit, it is PLN 442 million. Now, other companies that are recognized together in a single line, there were companies that were struggling last year, like DahliaMatic. This year, they have recovered their position, and the result is positive.
Therefore, this line has improved significantly. Now, Formula Systems, so another record quarter for Matrix IT. We've been telling you this every quarter, but this is actually the case that every quarter they've been improving their results. We are very happy with this dynamics because profitability is also being maintained or improved. Magic is flat. Let me remind you that we'll have the merger of the companies soon. Once we lose control over Sapiens, it will be different, but Sapiens will be kept as associates and a single line in P&L, and Matrix and Magic will be recognized as a single group. We think, we hope that after the merger, there will be some operating benefits in Magic for Magic. Michpal has had its debut on the stock exchange in Tel Aviv.
I think that this group can be expected to grow because now it's growing at a nice rate. Its effectiveness is growing, and it's going to continue. Now, the Asseco International segment, Central European market, Marek has mentioned the fact that the ERP group is the driver of growth here, but the core area is also a good contributor of Slovakia and Czech. This is a huge part of the Central European market. Now, South Eastern European market, an organic improvement in banking, payment would have been better, but RISOF has been recognized here for India. Now, the Western European market, as we have already told you, the result is very decent, Asseco PST. Now, let's move on. This is cash generated LTM. We are very happy here. Asseco Poland, it's, as you can see here, an international 114 Asseco Poland and Formula 104%. Now, liquidity situation has been stable.
Still, it's negative in two segments, but at the same time, I'd like to point out that the debt in two segments went down. For Asseco Poland, we are still paying back in accordance to the schedule, a credit facility, investment credit facility. When it comes to Formula Systems, we are also paying back, so the debt is ever smaller. The costs of debt servicing are also expected to go down considerably. For some time now, we've been presenting to you also proportional recognition, so informing you what our results would be according to the ownership logic. If the percentage rates were consolidated in an effective way without non-IFRS results, this is proportional revenues for 2024. The foreign exchange impact is here not as considerable. It's - 40 and at the same time 560, that's the positive impact of organic results. PLN 67 million was generated by acquisitions.
Looking at the operating profit, - 4, that's foreign exchange rates, - 14 one-offs, 155 organic results, and - 2 acquisitions. Again, proportional recognition of the revenues and operating profit. Here, the dynamics changes and efficiency are higher. Where the percentage rate is higher, the results show better dynamics and better profitability. Look at proprietary software and services. Here we generated + 12% and EBITDA profitability 1.1. You can see here in quarter three, an improvement in terms of profitability. The same applies to operating profit in an accumulative manner. Accrually, 0.5 percentage points, that's the profitability of the operating profit. Now, let's have a look at the balance sheet in the proportional methodology. As you can see, the debt is not as consolidated in Formula, and for Asseco Poland, it's close to 100%. It seems we are on the safe side.
Still, we are looking at the working capital in more detail to make sure that we use it as efficiently as possible. Now, cash flows, proportional recognition, cash generated, again, a very satisfying picture, much better than in the consolidated recognition. 112%, that's the cash conversion ratio for Asseco Group. Asseco Poland segment accounts for 115%. Let's have a look at the backlog, order backlog. At the proprietary software and services level, we can see the backlog amounts to over PLN 12 billion in fixed foreign exchange rates. 13%, it's the growth at the level of the group, + 14% is the segment Asseco Poland. The backlog has been growing mainly for the parent company, but it's also the case for Asseco Data Systems, Asseco International, again, 14% growth. In all of the companies mentioned here, we see great growth rates. Formula Systems, it's + 12%.
That's it for me, actually.
Thank you very much, Karolina. Thank you very much, Marek, for presenting our highlights and the most important events. Now we will move on to the questions that you've kindly sent to us. We will hope to answer them. The first one is how you're going to manage the money that you get from Sapiens transaction. The other one that was mentioned, which of the settlements will be made next year? Higher dividends?
For the first part, TSS, so we already have the money. It actually already came to us. Now we are trying to allocate the money in such a way that we have a good deposit rate in the interim perspective. Ultimately, we want the money to be allocated to pay out dividends in two batches, probably.
Of course, it's the shareholders' meeting that will take the ultimate decision, but that's our original intention. The money will be translated into dividends. Now, when it comes to the other transaction, which is the sale of Sapiens, probably the deal will be made at the beginning of December, sorry, at the end of December or beginning of January, and then the money will be settled. The money will be paid to Formula Group, and there a decision will be taken how it will be managed and allocated, whether it will be used for new acquisitions or some alternative forms of capital acquisition or dividends. At this point, we don't know this yet. We don't know how the money will be allocated. That remains to be seen, but as soon as we know, we will let you know.
Thank you very much. Next question. How much money Asseco will get from the sales of Sapiens?
Actually, it's a question that I've been trying to explain already in the previous one. The recognition of result is a different story than the ultimate money. The ultimate value will be allocated between shareholders in the form of a dividend. As I said, once the decision is taken, we will let you know. Again, the loss of control of Sapiens is something that will also impact our results, and we will tell you what money we are exactly talking about as soon as this is calculated. However, let's remember that it will be driven. We know the worth of the transaction, but remember about the costs that have to be covered as well as net assets. These calculations will also be driven by taxes, by foreign exchange rates.
The result will be positive, but its ultimate value remains to be checked, to be calculated.
Thank you very much. What are expectations when it comes to ESEF, so electronic invoice implementation in the next quarter?
It is hard to expect. It is hard to estimate that at this point. ESEF is part of a bigger project. For sure, it is something that should increase the demand for our products and services. I guess in all of the sectors where the implementation of ES EF will be an obligation, we will definitely see the result. I guess the most natural area would be companies that supply ERP and ERP-related solutions, such as Asseco Business Solutions, but I cannot give you any exact rates at this point.
Improved profitability of the parent company, what is it driven by? Is it driven by AI? I guess it means artificial intelligence and not Asseco International, right?
Yes, indeed. Improved profitability in the parent company is quite significant, I agree. The reason behind it is the following. We have a lot on our plate right now. We are trying to use all the opportunities, and I guess in none of the segments we have any free capacities because we are really using our capacities to the full. I think this effect is what we actually already announced in 2023. Back then, we told you that we feel a lot of pressure on the payroll and on vacancies. These problems are no longer the case that much. We still have some bottlenecks when it comes to people allocation.
Of course, it's easier when you have an order backlog for the current year and for the next one, and it's easier to manage and to plan your people in the optimum way. That's why the efficiency improved. We made some extraordinary effort in many areas. I'd like to say that very clearly. Another reason is a very special situation, which is in all operating segments. We've seen a very good year. 2025 has been a very positive year. None of our businesses incurred any losses. I think it's a long-term effect of the fact that we've been fighting to diversify our revenue streams and of mastering the planning. To some extent, it's probably the result of our optimization efforts and using different technologies, including AI, obviously. These technologies have been helping us to ensure even better quality of the software to our clients.
AI is actually at different stages of production. The products that we offer also include the AI component. Still, at this point, we can't give you any exact rate to express the actual impact of AI on improved efficiency or productivity. Think about AI in testing automation. In our case, software, thanks to AI, is tested much better. Then, also at the service point, we have fewer tickets, so the servicing guys can be more efficient. However, it's really hard to capture that effect in numbers.
Right, I think that would be actually great to introduce the AI team so that they can, at least the leader, maybe not the whole team, so that they can tell us more about our AI solutions that we've implemented so far.
Next question, could you please give us an additional comment on Asseco International? It's Touras company that was added to the group recently. What about the write-off for Nextbank?
Marek, would you like to take this one?
Oh, ladies first.
Right. Let me tackle first our activity in India and Dubai, Asseco Southeastern Europe. The acquisition of the company was written off in this year's results. Looking at the balance sheet, you can see the impact in a couple of items. Efficiently, effectively, if you look at the result, net result, it's not such a huge impact. It's PLN 3.5 million up to PLN 4 million. That's the impact on Asseco Group's results. This is driven by the following fact. Back then, when we bought the company, a big part of the payment for the controlling package was a conditional obligation. That obligation was meant to be paid only when some results would be delivered in the future.
When that decision was taken by the management, we came to the conclusion that that acquisition is not reasonable. It would be fair to make a write-off. The write-off is about such assets as the goodwill and some liabilities. On the other hand, there was room to write off that conditional obligation or liability. The net result is not as impressive in the end. As to the second part of the question, Nextbank. We acquired that group some years ago in 2018, right? Yes. At that time, it was kind of an attempt to try out our operation in a different sector. We invested in a startup, actually. We patiently waited for a breakthrough, but it never happened.
Therefore, we decided that at the point of an individual report or statement, we would write off these investments and the loans that were granted to the company. In the consolidated report or statement, we wrote off also the goodwill.
Do not think that there is anything wrong happening in this company because this is not the case. The company is operating, and let me remind you that this is a company registered in Krakow, in Poland, with a branch, with a subsidiary in the Philippines. It manufactures a cloud solution or subscription-based. Over the years, there have been around 50 implementations. There is quite a big group of clients, banks that rely on the software. At a certain point, there was an issue because the company started working together with huge banks. One of the banks made huge promises about IT projects.
Nextbank established a huge team to implement the projects, but at the end of the day, the budget got cut off heavily and the demand was much poorer, hence the loss because of this part of the activity. We still believe that the company will pick up and will get new customers. Now, the subscription-based revenue covers the cost of activity, so I think that the cash flow will be positive next year. Yes, and we'll see the positives next year. The scale of the write-off, it's PLN 25 million in the individual and PLN 14 million in the consolidated statement.
Next question. Can we expect an additional dividend because of the sale of shares to TSS this year?
It's not Santa Claus asking. We are waiting. We have until the 2nd of December.
This would have to be a down payment, and we are still waiting for the change of the articles of association to be registered officially. This has been already decided in the general meeting, but this needs to be processed. I think that around the usual dividend day, we will break the news to you, but no decisions have been made yet. This also depends on our shareholders. It's up to them, but today it's too early to say because the articles of association haven't been amended officially yet.
What do you think about the forecasts for Asseco Poland, the outlook in 2026?
If you have a look at the results in 2025, they are quite or even very positive, and they make us optimistic. A huge part of current projects will continue next year. Now we are doing the budgeting.
Nothing makes us worry about the Polish segment next year. To the contrary, because if you have a look at the backlog, contracts are growing at a very decent rate. If we succeed in improving the efficiency, the prospects are very good. It does not mean I'm promising you anything right now that I'm promising you the same results, because the results are really spectacular in 2025. Partially this is because of the momentum. Speaking about the outlook, [Foreign language] . Now we have to focus on performing the contracts and improving the effectiveness, the efficiency, and not on gaining new contracts that much.
[Foreign language] . Thank you. There is one question left. [Foreign language] .
Could you please share the recording of this presentation as soon as possible on the website? Yes, certainly. We'll do it soon in Polish and English. Thank you for all the questions. Please stay in touch with our investors' relation department and follow us during the congresses we are going to attend. We will be attending the conference Woodwinter Tour in Prague this week. We will be speaking about our results over there as well. We would like to invite you for the conference on the results from 2025 next year. Adam Góral will also attend. He is sending his best wishes right now. Thank you.