Asseco Poland S.A. (ACP) Earnings Call Transcript & Summary

Good afternoon, ladies and gentlemen, we'd like to welcome you very cordially to the results conference, which is about the results of Asseco in the first half of 2026. As always, we'd like to introduce you or show you the activities of our group and the financial results. And so Karolina Rzonca-Bajorek, the CFO of the group, will talk about the results, and we'll start with the activities of the group, which will be delivered by Marek Panek, the Vice President of the group, and will ask you at the end to send your questions, and we'll try to field all of your questions and you have basically a tab where you can pose your questions during the course of today's conference. We'll go ahead and ask you to pose your questions. We'll try to field all of them, and I'll ask Marek to kick off with our presentation.

Thank you very much, ladies and gentlemen. And as a matter of tradition, I'll begin with a business sort of summary of what's happened in the first half of 2026 in the Asseco Group. I think the best summary is Slide #3, which you now see on your screens. These are figures which illustrate the results of our company in this period that we're discussing. So we have revenue of PLN 9.25 billion which is a 16% increase from half year to half year, our operating profit grew by 38%. It exceeded PLN 1.8 billion and net profit at the end of the day is PLN 430 million and so we have an increase of in excess of 52%. So I think we can all be very satisfied with these results. We're certainly very satisfied with these results and then we'll show you the breakdown of revenue by operating segments. And so for many years, you've been familiar with this breakdown and we'll begin with the Asseco Poland segment. Then we have Asseco International and Formula Systems. And so we have increases in -- we have 70% increase in Poland. So we've exceeded PLN 1.3 billion in revenue, Asseco International has slightly slower growth, about 9%. Here, we have PLN 2.372 billion in revenue and the fastest-growing segment is Formula Systems within 18% increase, so almost PLN 5.6 billion in revenue. Let me remind you of the proportions and so I'll begin with the right side and so Formula Systems is giving us 60% and International is 26%, and the remaining 14% comes from our activities on the Polish market. And so if we look at revenues broken down by our major product groups, you can see on the right side, we have basically a bar graph, which shows you we have double-digit growth in all of our segments. We have solutions for finance. We have nearly PLN 2 billion in revenue with an 11% increase. We see the most -- the fastest growth in Solutions for public institutions at nearly 30%. We're in excess of PLN 2.5 billion. Here, I'd like to emphasize that this is our biggest segment. This is generating some 27% of our total revenue. And then we have the other product groups. We have ERP solutions, other IT solutions, infrastructure plus other solutions. And so we have growth of 17%, 10% and 11%, respectively. So the commentary is here unnecessary. We're pleased with all of our product groups across the board. We've posted very substantial growth. It's important that we have this diversification in terms of customers. So we can say the share of the top 10 gives us 13% of the group's revenue, whereas the largest client in the group represents 2% of our revenue. So the conclusion to be drawn is that we're not dependent on any single question. So our operations are highly diversified. And as a matter of tradition will sum up the 3 product groups where we're operating, and we'll begin with solutions for finance. Here, we have nearly PLN 2 billion in revenue and some 11% growth and the biggest contributor is International. I've been used to Formula Systems, but after we sold Sapiens, that share fell substantially. And so the biggest contributor today is Asseco International, which has delivered some PLN 820 million and has 4% growth and we're pleased here with what's happening. Asseco Southeastern Europe, especially if we look at the pace of growth in core banking systems. Here, we've grown the fastest payment, it's more or less flat year-on-year. And we can say that Asseco European PSD are doing quite well. And this is the financial sector. So in Poland, we have 16% growth, so PLN 360 million exceeded. Let me remind you that in Poland, this is Asseco Poland and our division that does banking solutions and then we have data systems. We also have solutions for leasing and this has grown very dynamically. But if we look at the banking segment, this is basically very important to us from the very beginning of our operations from the very outset. And this segment is characterized by a large stream of large recurring revenue and so maintenance, development of our solutions. And so basically, we're signing new contracts. So we've signed a large contract with National Development Bank, and that was done this year, and this is a contract that we're going to be running over the next several years. And Formula Systems exceeded PLN 800 million in revenue for the financial sector. So that's some 17% growth. If we compare the interim periods of 6 months to 6 months, after selling Sapient to contributor, of course, is the Matrix IT company. And so that's why we look at it as an entity after its merger business combination with the other company. And so as I've mentioned previously, this is a segment, the largest segment, so it's 27% in the total of the group. And it's the most quickly growing. So we have a 30 -- nearly 30% growth in -- we had PLN 2.5 billion in sales, so revenue in the first half of the year is solutions for public institutions. And you can see that Asseco International is growing the fastest. We have PLN 322 million in sales and a 33% increase growth. And here, we're very pleased because we've been able to build our position in terms of delivering solutions in Czech Republic and Slovakia for public sector. And so 1.5 years again, 2 years ago, we had mentioned that there was some stagnation. We've been able to rebuild our position, shore it up, and we're very pleased with that. Having done that, in San Poland, if we look at that 27% growth and sales of nearly PLN 740 million, big contribution was made by the health sector, the health service. We had mentioned that 1 quarter ago that we started to run projects linked to the KP International Development Program. And so this went into the second quarter of the year. And we've been able to see very strong growth, vibrant growth in this segment, I would add here that we had more than 150 hospitals, which were covered by that program [indiscernible]. And in public, we also have large-scale projects for the banks, public institutions in Poland. And so the energy sector. And that's why we believe this growth has taken place and that's why we're satisfied. So in Formula Systems, we have of PLN 1.447 billion. So the growth is some 29%. So we're talking about Matrix, but not only but [indiscernible] has increased revenue for public institutions. If we look at our ERP solutions in turn, we had sales of PLN 934 million, and this was a 17% growth if we compare the 2 interim periods of 6 months each, and so we don't see Asseco Poland here, so we can say, as of the first quarter of this year, it's not here because the company animatic, which is representing Asseco Poland has been moved to the Enterprise Solutions Holding, and it's now consolidated in Asseco International. And in Asseco International, basically, have sales of nearly PLN 570 million with 13% growth, and we're pleased with that in terms of what's happening in Asseco Solutions in Germany and Slovakia because we do have some pretty substantial growth. We're also pleased with the Asseco Business Solutions. Those of you who attended the conference of that company know what that stems from? And the Formula Systems, it's nearly PLN 370 million in revenue with a 25% uptick in terms of growth. And this ensues from a number of different spots within the Formula because different companies are delivering solutions of the ERP grade and so also a third companies. If we look at acquisitions, M&A activity, in 2026, we've been joined by 9 companies. One company from Poland, which is [indiscernible] this acquisition was done after the balance sheet date. We're showing it here, and we've actually described this transaction in our financial statements. And so then we have the Seneca company, it's a small company from Vietnam, that's an outsourcing company and we've talked about that at the previous conference because this is something that was done after the balance sheet date. And then we have Rontec Computing, which is a new purchase, a Portuguese company. And this was from Asseco is a company that's operating in the Portuguese-speaking markets. It's a small acquisition, but quite intriguing. It did software for the [indiscernible]. And so it's working in several companies -- countries and that coincides with PST. And then we have the Formula Systems in different areas. We had 2 acquisitions that were done by Magic, 2 acquisitions that were done by Michpal, and so in terms of software for HR and payroll processes. And then we are continuously strengthening and bolstering the group of Michpal basically was listed in Tel Aviv last year. And then we have 2 other companies that have joined us. And this is -- it's called Formula Infrastructure that's the working name. I think it would be better to just call it Formula Engineering because these are specialist companies that are dealing less with maybe software, but they're doing engineering work and it's a very interesting concept, and we very strongly believe in that. And that would be about it from my side, and I'll give the floor at this time to Karolina.

As far as the financial information is concerned, Marek has covered revenue in a great detail. Therefore, I will focus on 5 years of CAGR on revenue. Revenue in total 6% CAGR, revenue from software and preparatory Services, 7% annual CAGR, EBITDA, PLN 1.5 billion were down non-IFRS treatment, you see vet growth faster than the revenue. in terms of CAGR and non-IFRS EBIT PLN 1.24 billion with the CAGR of 12%. And the net non-IFRS net profit, it's PLN 485 million for the first 6 months of 2026. If you compare to the first half of the year to year, we can tell that this is the first time since 2 years when we were supported by the foreign exchange rates. So we have the positive impact here PLN 284 million for sales and plus PLN 29 million for non-IFRS operating profit. In terms of contribution -- organic contribution, it's PLN 855 million for sales revenue year-to-year. And looking at the non-IFRS operating profit, it's PLN 243 million. And acquisitions after the 30th of June 2025. So this is the delta from the acquisition transactions, PLN 121 million for sales revenue and [ PLN 35 million ] for operating profit. So it just proves that the profitability of the newly acquired companies is very much similar to the organic profitability numbers, which is good news. Now net profit, again, non-IFRS. The greatest contribution or, I should say, the greatest delta to net profit comes from Asseco Poland and here, we are PLN 125 million in positive terms. And Asseco International is the second contributing segment with PLN 34 million followed by intersegmental adjustments, plus PLN 12 million, it's within the group and minus 4% is the adjustment of Formula Systems segment. But let's keep it in mind. But because of the sale of Sapiens, we had a major loss of revenue. So if you look at like-for-like treatment Sapiens would contribute PLN 18 million or they did contribute PLN 18 million during the first 6 months of 2025. So the delta is just minus 4%, which means that we were able, to a large extent, cover the loss of revenue resulting from the sales of Sapiens by our group. Other companies help bridge that gap. So when we look at PLN, so comparing 6 months to 6 months, revenue up by 16% and revenue from software and proprietary services, 17%. Dynamics are even higher for Q2. EBITDA by non-IFRS is up by 27%, 6 months to 6 months. And as much as 33% for Q2 2026, we keep on improving profitability of EBITDA by 1.5 percentage points at the consolidated level. Now when we take a look at the proportional treatment, then we will see that both dynamics and profitability improved even greater. 33% is non-IFRS operating profit and 32% quarter-to-quarter, and profitability is even better 1.7 and 1.8 percentage points, respectively, and the standard operating profit that is reported is 38% 6 months to 6 months. This is the dynamics. Q2 is 43% compared to Q2 2025 and the improvement of profitability is 1.9 and 1.7 percentage points, respectively. Now let me revisit the slide on the right-hand side, we highlighted the dynamics that were cleared of the FX effect. Now moving further below, we see that below EBIT, we see that we are doing quite well with our cost management and cost control of our interest. The debt within the group is up slightly. But because of the cash surplus, we are able to have more revenue from income. So our cost income actually -- cost income is greater than the cost. This is important because it means that we will have cash from the sale of our own cash, but also we have cash from Sapiens sale. So the interest income comes from Polish segment and the Formula Systems. I think that looking down, there is nothing interesting happening. Perhaps I should offer a short commentary on the effective tax rate and the tax due for Q2. Right here, we can see the impact on our performance in Q2 2026. So this is the tax on the dividend paid by Sapiens. At the beginning of June, the company collected $51 million, actually slightly less because there is a withholding tax. But what we see in the P&L is 19% tax on the dividend. To some extent, this is withheld at source. And the other part has to be taxed later within the company. So in the P&L, we have to show 19%, and this is on over PLN 190 million. Therefore, the effective tax rate for Q2 is fairly sizable. In terms of our participation in the loss and profit of the associated companies. This is mostly the effect of the Israel transformations and transactions. And the net result for shareholders is PLN 460 million in 52% in the standard treatment. And for Q2, it's 48% up. Therefore, I think that we would like to see such dynamic every quarter. That would be really nice. However, we have to really keep it in mind, that this is quite a spectacular picture. We will address the underlying reasons for such a spectacular performance. I think that this slide deserves more attention. Asseco Poland, this is the [indiscernible] company. The revenue has been growing, and the operating profit has been growing even faster. Our EBITDA after 6 months is quite sizable, over PLN 800 million. And what Marek has already highlighted. It's important to mention, this is a one-off effect because we were able to take advantage of the recovery program, excellent performance in the health care system that we are showing under the heading of the public institutions. And the other part of the public institutions business has been performing very recently. They had a great year in 2025, and they continue the good trend. We also have excellent performance in banking and financial institution sector, and this is generated by Asseco Poland but let me remind you that we have a lot of banking business with an asset in the South of Europe. And on top of it, we have the Portuguese company that has main business focus on Africa. But in Poland and in the Southeastern Europe, banking sector is taking advantage of the regulatory changes about Elixir and some other formal requirements, but the entire banking sector has to comply with. And therefore, we show very good profitability for this sector. And as a result, it drives our revenue, and it also improves profitability here and there. And we also see excellent situation within the power sector. Again, the past year was very good. and this positive trend continues throughout 2026. Let me draw your attention to the fact that when you look at our operations in Poland, we nearly doubled non-IFRS operating profit, and this is due to the excellent performance of Asseco Data Systems. Here, we are taking advantage of the momentum within the public institution sector, very good performance of the leasing sector, but also the [indiscernible] system and trusted services sales where the main product so far has been the electronic signature right now triggered the new kind of demand for the new type of services, which is the electronic stamp. As a result, we were able to grow our revenue and improve operating profit. Formula Systems segment, another record high quarter for Matrix. Here, we are showing both companies after the merger. Actually, it was not a merger. It was really the consolidation process because we are not going to fully merge 2 companies namely Matrix IT and Magic. But we show them in one line because Matrix is currently consolidating Magic starting from 2026. Excellent results for Israel business and also for the U.S. business and within the European territories. Here is mostly public segment or public institutions is the main driving force and as Marek mentioned, the entire public institution sector across the group looks very well. As far as other companies are concerned, Formula Infrastructure which we prefer to call Formula Engineering is showing strong performance. Michpal is also doing very well. So all these businesses that we continue to build as the new pillars for the formula are performing very well. And we are really happy to see the performance of International segment. In Central and Western Europe, we see major growth. A lot of this growth is generated by the ERP segment. And our ABS is doing great in Poland, but we also see improved profitability in ERP company in Germany. And this is where we have like a core business located within the public institution sector. And this is Asseco Central Europe and also Slovak and Czech companies new contracts and the contracts that gave us some headache over the past few years are now getting on the right -- getting back on the right trajectory and hence improved revenue. So this is the Western Europe. So we are showing the Asseco Spain. Let me say that for Asseco Spain, we had to actually make some impairments for inventory, so we do have a one-off effect over PLN 18 million. So it's inventory impairment. So in this case, we are sort of underperforming a bit, but otherwise, Southeastern European market is also doing well. And so as Asseco group excellent performance within the banking sector, very good payment segment performance, and we are looking forward to renew projects for the segment of the Dedicated Solutions. If we look at cash that's been generated, I think we can be pleased with the ratio if we talk about 105% cash conversion in terms of EBITDA. So it seems to be a pretty decent 113% in the Asseco Poland segment, 133% in Asseco International and a little bit worse around 84% in Formula Systems segment. If we take a look just at this interim period, the cash generated is a little bit softer in the first half of the year than in the second half of the year. And this is a seasonal phenomenon with us. So this LTM is, I think, pretty good accurate [indiscernible]. And so I think the cash generation is quite good. It's especially good in Asseco International. We also have good in the first half in Asseco Central Europe. It's also very good in Southeastern Europe. If we look at Asseco Poland, the cash generation in Q2 is much better than it was in the first quarter of the year. But at the same time, I would continue to say that I would expect the improved cash generation at the end of the year. We have a tradition of invoicing around Q3 and then collecting the cash in Q4 at the beginning of Q4, and that's one of the reasons why these trends look the way they do. But in Formula Systems, we have objectively to say, it was a 6-month period in Matrix IT that had a poor cash generation period. It was negative. And so this was a result of the fact that, first, they had a lot of factoring transactions at the end of last year. And so they collected cash earlier. And now the results were recognized, and there was no cash. And so the ratio basically deteriorated. The second contributing factor was as well as that the major client in the public institution sector pays after contracts are completed and they pay late. And this is a structural program because some of that needs to be managed, so there's no danger in terms of this not being collectible, but basically, the money is flowing in late. And what we have that awareness that that this number, this figure could look a little bit better. And so the cash generation in Matrix will clearly improve. I think in Q4, Q3 in Israel is a more difficult period having in mind various holiday periods and basically, they distort or disrupt those cycles. If we look at proportional recognition and so the FX rates had a much smaller or less pronounced impact because the positive impact for the overall group was a result of FX differences, gains and losses in the shekel dollar, FX payer and in proportional results, where formula has a much lower impact. As a result, the translation is much -- impact is much smaller, and we have better organic results and so PLN 384 million in revenue and PLN 165 million in terms of operating profit of a non-IFRS ilk and then we had PLN 41 million and then PLN 11 million in terms of EBITDA for acquisitions. And so in a proportion of recognition, we have much better growth rate, we have much better growth rates. We've improved profitability much more. And this is a result of the fact that when we do the proportional recognition, we can say Asseco Poland and Asseco International much more important, have greater gravitas and that's why we can see that it's a difference of roughly 3 percentage points. And so I think this is a wonderful result. If we talk about the improvement in the interim periods, from one year to the next and if we look at the cash flow, so again, it's better. It's 121% at the group and 113%, International is 133% and then we have the Formula Systems segment is 93%. This is a result of Matrix, which had a softer quarter is -- has a lesser impact, and that's why the results are much better. So the commentary on these results in terms of cash generation, we can say that we are clearly pleased with cash generation, how it's fleshed out. But as I've said, some things are cyclical in nature, some of the phenomenon. And so we believe that the overall year results will be very good. And in the final slide, in my section of the presentation, is the order backlog. So if you look at fixed exchange rates, for software and services, they're growing by like some 12% year-on-year. If we look at variable exchange rates or floating exchange rates, it's 18%. And so in Asseco Poland, it's up 21%. And I think that's a great growth rate and the best Asseco Data Systems has the best result than Asseco Poland and then you sometimes ask why Asseco Poland? Well, this growth rate is because of backlog growing for public institutions and the second is banking and finance and the backlog in corporates has a slightly negative growth rate. There's no reason to be worried about that because in the corporate sector, we have long-term contracts signed. And even if the growth rate is not in rapturing, then next year, we can say it will deliver results. And now we just have to complete the contracts, perform the contracts as written and -- but I would say that things look very, very decent. If we look at Asseco International, we have 10% growth in fixed exchange rates and 11% in variable exchange rates and in Formula Systems, it's 10% and 20%. On a proportional recognition basis, we can say that the results are better. So it's 14% growth in fixed exchange rates for the whole group. And 16% for variable exchange rates. And so you can see here the growth rate in formula has led to the difference between fixed and variable exchange for 9% to 19%, so of 21% in Asseco Poland, 10% in Asseco International than 19% for Formula systems.

And so I think we can pretty much wrap up. Thank you very much, Karolina. Thank you very much, Marek. As you can see, these results are record-breaking -- in terms of this interim period, there were very good results. We've received a large number of follow-up questions, and I will try to respond to your questions. And so let me ask you what part of your improved operating margin Asseco has been delivered by improving market conditions. And to what extent is it your organizational efficiency and process efficiency gains.

Well, that's a very tough question to respond to because -- it's not something that can be -- you can't do more revenue if you don't improve efficiency of your organization and the processes, especially if we took a look at headcount not growing, and in some cases, headcount is flat and we have more revenue. So I think I can give the following commentary. Well, we do have some effects as a result of regulatory changes. We have a challenge to call up everything a one-off because if we say something is a regulatory change in 1 quarter and then we had regulatory changes in another quarter and another area or that we have some EU funding and things like that. Basically, our business is so highly diversified that we're able to benefit from the good market conditions. And basically, we're trying to match or align our resources to that to improve our efficiency. And so these individual areas of improvement are organized in such a way that we're going to have recurring income in the future. And so I had mentioned this, and I think Marek also referred to that. that we had a respectively good situation in the health sector, health service. And we're utilizing the fact that our customers are spending money from the national recovery program, and then there was an accumulation of that in Q2. But of course, we're trying to sell that we have maintenance or follow-up care, additional services in line with what we're selling. And so we're trying to convert one-off expenditures into a business model for the future. And if everything is taking place in terms of improving your efficiency, then it's somehow upheld. It's sustained because it's possible. That's one of the best reasons that it's good to try to sustain your efficiency, the fact that you've been able to do at least [indiscernible].

Then we have another question. I would happily participate in a second business solution conferences. But unfortunately, that company doesn't organize conferences for investors. Is it a change possible that this could change.

We'll pass on that information to a management team and IR. It's not the case they don't organize conferences they do. You just have to physically walk in and join the conference. So we'd invite you to join us. Well, we have the problem that most of you are online, and we would like for you to join us in person, but we can see that there is interest in visiting us on site. It's less of attractive element. So we would invite you to participate online. Are there signals that the public sector will continue to grow 3.5%, 4%, just like in Q2?

I would rather not comment that directly, but I have already said that the recovery plan effect has mainly been visible in Q2. It will be carried around to Q3 and to a lesser extent to Q4. But the remaining part of the public institution sector, as I have already said, they had excellent 2025, and we believe that 2026 will continue this trend. And I think that I will stop here.

Can you give us a sense of net cash on a proportional basis. as of now, cash minus short- and long-term interest-bearing loans and borrowings, it is disclosed in a few different places, but the figures do not match. Is it fair to say that after paying the dividends in Q2, it is around PLN 1.2 billion, PLN 1.9 billion without the deducting leases.

Look, it's not what the numbers match -- do not much. You just need to take a closer look and we can go through it together. Perhaps some ratios are shown differently perhaps in case of leasing or deposits, we had a different treatment, but the intent is clear how much net cash we have proportionally at the group level. And the answer is PLN 1.3 billion at the group level.

In Poland declined a lot. If that is not a typo, can you give us the sense of what that means?

Let me follow up on the previous question. Please bear in mind that it's not that we have different treatment here than other companies. But if you have a CD for a term longer than 3 months, you have to actually treat that as a loan. And therefore, we may have a confusing definition of net cash. I would rather add deposits to net cash because this is cash that is still available to the company. So altogether, deposits account for PLN 200 million at the group level. And answering your question about ERP, this is not a typo. This is an issue that Marek said that this is actually moving the company from the Polish segment to a central company, DahliaMatic. This is now under the ERP Holding because this is the company that implements third-party ERPs. They also have propriety products, but they focus on third-party products. And we concluded that this is a better place for housing that company under the holding and for that reason, it is shown under Asseco International today. And I think that this really answers your question.

[indiscernible] your public segments performed incredibly well. Can you give us a sense for the key regions, which are areas of public and why this is -- this has been so strong.

So as we said, public health care segment in Poland and the remaining public in Poland has been doing incredibly well, a major improvement within the public sector in Czech Republic and Slovak Republic. So this is Central Europe, and an outstanding momentum for Israel. Again, the public procurement, huge dynamics and a very decent profitability shown by the Israelis.

Why did the ERP International segments grow revenue so rapidly? Karolina, can you give us a sense of the plans for the challenging segments like international infrastructure, non-IT, international and Poland other IT?

Why ERP has been growing the revenue? Well first, Asseco Business Solutions was growing revenue. They have a lot of recurring revenue. So some of that revenue is indexed based and a lot of the improvement comes from the new national invoicing system success and related changes that had to be implemented. I think that IBS was really smart about it. They have a separate product to address the national inviting system. The product sells very well. And I think that it is a very reasonable and actually smart model, but they conceived in terms of collection of revenue. But it depends on various metrics that you may have. This is one reason. Another reason is a very good situation within the ERP companies beyond Poland, mainly in Germany. We have already said that Germany has the ambition to catch up with ABS. And they are actually almost there. They are sharing knowledge with an ERP holding, but there is some level of competing ambitions and aspirations. And the German company is working very hard to improve their profitability. For instance, they take a number of measures that contribute to the revenue. For instance, audit of licenses that they have with their customers. Perhaps none of these measures bring spectacular effects, but if you sum up all these things, overall performance and the revenue of the company is much better. So this is Rafal who can claim the credit for it and the entire Board. Speaking of the other segments. No international infrastructure. This is where we show Asseco Spain. I already mentioned that we had to show impairments. And that was the provision for the inventory. This company is not really within our core business segment and perhaps, ultimately, it will be desirable to actually sell it up, but in a reasonable way, it has to be a reasonable transaction. But at this moment, we are going to work on the improvement of processes within the company, and we really want to improve their margin. The Poland [indiscernible] this is what we show mainly from ADS, our business for trusted services. So this is electronic signature and electronic stamp. I believe that strategically, this is the important spot for our group. I believe that this particular area will benefit from the regulatory changes from the electronic wallets from all the EU-driven initiatives. And although we call it Poland adder 18, perhaps this is still too small to show it as a separate segment and to name it as a separate segment, but there is no doubt that this is an important area, and we believe that they will show growth of revenue and they will improve their profitability. There are a lot of detailed questions from international investors.

[indiscernible] proportional basis have improved tremendously. That is great. At the same time, the financial statement of the Polish only company seemed to show that working capital has not really improved. Is it possible that the Polish company entity working capital is blurred by its various investments. But it doesn't not look that way. Any clarity on the source of this proportional working capital improvements would be helpful as would clarity on the other areas where you could still see more improvements.

I think that I have already covered that to some extent when I was discussing our cash flow position. It all depends on how you calculate free cash flow margin. Well, this blurred picture as we -- so working capital is blurred by investments. That's a quote from the question. Perhaps this is our approach to deposits. This is a highly technical question and a complex one. So let me repeat. Polish segment, I think that cash looks decent. But as I explained, it's a cyclical development, and it's not 100%, and there is room for improvement there and this improvement will come in Q3 and Q4. Very good cash in asset and asset. And in terms of proportional numbers, I believe that care situation and Matrix has to be improved because this is something that really has negative impact on the ratios that we see for the 6 months.

Discussion of the PLN 800 million figure for the full year December 2026 net profit confused a lot of people. Can you please clarify this given that we are now 2 months into Q3, you must have some sense of how Q3 is going? And whether that PLN 800 million figure is unusually conservative or what? Would you perhaps instead give some clarity on expected figures for proportional data?