Dynamic development and growing role of digitization - Asseco summarizes its 2020 results
In 2020, Asseco generated sales revenues of PLN 12.2 billion, up by 14% versus 2019. The sales of proprietary products and IT services increased, compared to the previous year, by 11% and amounted to PLN 9.6 billion. Consolidated operating profit exceeded PLN 1.2 billion, and net profit attributable to shareholders of the parent company stood at PLN 402 million, which in both cases represents an increase of 25%. The Group recorded significant increases of results in all segments and sectors of its operations.
Last year, non-IFRS operating profit totaled PLN 1.5 billion, up by 23% on annual basis, and non-IFRS net profit reached PLN 454 million, which marked an increase of 24% versus 2019.
The Group generated better results across all of its operating segments, owing to its consistently implemented growth strategy and the accelerated digitization process of companies and institutions triggered by the pandemic. In 2020, foreign markets represented by the Formula Systems and Asseco International segments accounted for 88% of the Group's total revenues. The sales of the Formula Systems segment increased by 15% to PLN 7.6 billion, while operating profit improved by 30% to PLN 615 million. The Asseco International segment's sales revenues surged 10% to PLN 3.2 billion while its operating profit improved by 12% to PLN 389 million. The sales of the Asseco Poland segment reached PLN 1.4 billion, up by 18% year-on-year, while its operating profit was 40% higher and amounted to PLN 215 million.
Asseco's revenues, which were very well diversified by sectors in 2020, were distributed as follows: general business - 39%, banking and finance - 36% and public institutions - 25%.
2020 was a very good year for Asseco. Despite high uncertainty on the market, we managed to improve our results and strengthen our position in all segments and business sectors. Accelerated digitization processes in companies and institutions made us focus on how to best support our customers in the face of the pandemic. We consistently pursued the strategy of strong business diversification - at the level of countries, sectors and products. Selling our proprietary software and providing related services remained crucial for us, the same can be said about increasing the scale of our business through further acquisitions. Last year we were joined by 15 new companies which helped reinforce our position on foreign markets, said Adam Góral, President of the Management Board of Asseco Poland.
Asseco's consolidated order book for 2021 in the area of proprietary software and services is now worth PLN 7.6 billion and is 13% higher than in the same period last year.
While thinking about our development prospects we are aware that the economy is in a difficult situation; therefore, we approach the future with moderate optimism. Our goal is to maintain a leading position in the sectors that are strategic to Asseco: banking, insurance, power industry, telecommunications, healthcare and public administration. We focus on further development in the area of proprietary products and services. Apart from sector solutions, our priorities include ERP systems, payments and trust services. We will invest in the development of cloud products and cyber security services. We want to further grow through acquisitions and strengthen our competencies in specific sectors. We are interested in companies similar to Asseco: with their proprietary products, stable financial standing, operating in similar sectors, whose owners would like to stay with the company after the acquisition and develop it together with us, added Adam Góral.
Asseco consistently builds value for shareholders and shares its profits with them. The Company's Management Board has decided to change its dividend policy from the current "10% to 40%" to a new one: “more than 50% of profit”. This year it is recommending a dividend payout of PLN 258 million from 2020 profit, which translates to PLN 3.11 per share and represents 64% of the Group's consolidated net profit.
Non-IFRS figures including adjustments for: the cost of amortization of intangible assets recognized under the combination settlement (PPA), the costs of share-based payment transactions with employees (SBP), the costs and financial revenues resulting from the transactions of purchase and sales of companies (M&A) and tax effects associated with them).