Dear Shareholders,

The year 2023 was a difficult period for the Comarch Group. In addition to external challenges, such as the tense international situation (in particular the war in Ukraine), high energy prices, high inflation and rising operating costs, the Comarch Group had to face the passing of people who were key to the Company's operations. On December 17, 2023, Prof. Janusz Filipiak, the Company's CEO for many years, one of its founders and major shareholders, passed away. On March 10, 2023, Paweł Prokop, the long-time Vice-President of the Company, one of its first employees and a major shareholder, passed away. Despite these unfavorable conditions, the Comarch Group once again proved its resilience in the face of crises, stably developed its business and achieved very good financial results. The Group's consolidated revenues reached PLN 1,815.8 million, the operating profit PLN 96.3 million and the net profit attributable to the shareholders of Comarch S.A. was PLN 100.6 million. Net profitability was 5.5 percent.

The Comarch Group has consistently implemented the key elements of its long-term growth strategy in 2023, focusing on improving existing and developing new IT products, offering them to a wide range of industries and selling them to customers worldwide. More than 94% of the Group's revenues were generated from the sale of its own services and solutions and finished goods, while 51.6% of revenues were realized outside Poland. Last year, sales on the Polish market increased (+12.5%) mainly due to increased sales of ERP systems in Poland and increased sales to the medical sector. The less dynamic development of foreign sales was related to the temporary decline in sales to the telecommunications sector. Thanks to its broad and comprehensive offer of modern IT solutions and high-quality services, the Comarch Group has strengthened its position as a the leading Polish software producer and one of the leading IT providers in Europe and the world. Thanks to the global sales network developed over many years, the Comarch Group, despite the challenges mentioned in the introduction, was able to successfully develop the sale of its solutions on existing and new markets.

In the year under review, the Comarch Group continued its extensive R&D activities. Expenditure on research reached almost PLN 412 million, which represented 22.7% of sales revenues. Comarch Group specialists worked intensively on the development of new generations of loyalty and ERP systems, systems for telecommunications operators, e-commerce solutions, telemedicine and solutions related to financial services based, among others, on artificial intelligence. In 2023, the dominant sales model for IT solutions was the service model - Comarch is always one of the market leaders in this area.

During the year, the Comarch Group adjusted the size of its workforce to the current level of revenues and employed 6,479 people at the end of the year. As every year, the summer internship program for students was very popular, thanks to which Comarch is perceived as the employer of choice on the IT job market.

In the past year, the Group paid special attention to the issue of IT security and took a number of measures to improve its level. A state-of-the-art data center in Phoenix, USA, was launched in 2023, which, together with similar facilities in Kraków, Dresden and Lille, ensures a very high level of diversification of the Comarch Group's ICT infrastructure and also allows it to benefit from lower electricity prices than in Europe. The Comarch Group also continued to invest in its own renewable energy sources and other sustainable solutions.

In 2023, the Comarch Group received many awards and distinctions, both in Poland and internationally. For example in the “ITwiz BEST 100 2023” report, the Company was ranked among the 100 best companies, taking first place in key categories such as ERP sales, telecommunications sales and retail sales,. In the “Computerworld TOP200” report, it was on the podium in as many as 10 categories. The Company was also recognized in a list of the top 12 providers of technology solutions for loyalty program management, “The Forrester Wave: Loyalty Technology Solutions, Q1 2023”. The FSS product Comarch Open Platform, which enables financial institutions to build their own SME ecosystem, was recognized by experts in prestigious rankings, including the “Best SME ecosystem software” at the CEE23 SME Banking Conference.

Last year, for the first time, a Comarch representative participated in the substantive work of the Digital Transformation Working Group of the B20, the G20’s business advisory body. Its purpose was to prepare recommendations for the G20 leaders, who each year adopt a special communiqué that provides guidance for the actions of economies and governments over the next 12 months.

In the past year, the expanded Management Board of the Comarch Group, with the support of the Supervisory Board, endeavored to effectively combine the mission of disseminating innovative technological ideas created in Poland throughout the world with the implementation of a responsible policy of corporate social responsibility and sustainable development. Last year, the Comarch Group was a constant patron of sports and science, supported local initiatives, local government and non-governmental organizations, health care units and charity actions.

The year 2023, as well as the previous few years, has proven that a very good geographic and industry diversification of the business, high quality employees, a wide range of products and the available financial resources allow the Comarch Group to efficiently adapt to the rapidly changing environment and to continue its long-term corporate development. As the newly appointed President of the Management Board of Comarch S.A., I will make every effort to ensure that the Comarch Group continues to strengthen its market position as a global provider of IT solutions and to increase its value for shareholders, customers, employees and all other stakeholders.  

PhD Anna Pruska, President of the Management Board of Comarch S.A.