Trends and challenges from a regional IT solution provider view

1. Miklós Hoffmann, technical director Trends and challenges from a regional IT solution provider view

2. Content • Synergon group • ICT trends • Regional trends and challenges

3. Synergon Group

4. Evolution of Synergon 1997 -1998 1999- 2001 1990 - 1996 2002 - 2005 System & network integration Solution & businessintegration Platform integration Solutionintegration An active player of the IT and financial markets High Product Content • Value addedreselling • Communications • SW components Increased ServiceContent • Systemintegration • Office automation • ERP systems Complex Projects • Customized SW Solutions • Turnkey SI Projects • Complex ERP projects • Supply Chain Management Regional activity • e-business • Remote management • IT & Business Consult. • Infrastructure management Optotrans and Rolitron established Optotrans- Rolitron merge Capital increase: 8 million USD IPO – BSE+ SEAQ Regional expansion: Span, Infinity, SAO

5. Praha Pardubice Brno Bratislava Budapest Zagreb Rijeka Synergon Group • Four countries: • Croatia • Czech Republic • Hungary • Slovakia • Five companies: • Synergon • Synergon Atos Origin • Fibex • Infinity • Span • 550 qualified employees

6. Ownership structure Financial investorsbelow 5 percent of shares each66,4 % Berenberg Global Opportunity– Magyar Budapest Fund5,31 % Treasury shares2,8% Davon Kft.5,03 % RCX Kft.10 % Deutsche Bank (deposit)0,55 % Curdie TrustCorporation Limited9,94 %

7. Structure of Synergon Group Companies in the group Fibex ~5% Infinity ~20% Span ~6% Synergon + SAO +70% • Equal companies in the Group • Common representation of regional goals BOARD EC Fibex 100% Span 68,1% Infinity66,67% SAO 100% Synergon

8. Planning Building Operation IT cycle and Synergon’s portfolio • Consulting • BPR • ERP • BI • e-business • Support • desktop • back-office • IT management • communication • datacenters • BPO • IT Projects • PM • HWSW • Networks • Application

9. Market segments – sales revenue (Group, 2003) TELEKOMMUNICATION BANK, INSURANCE OTHERS • Invitel • MATÁV Rt. • Hungarian Radio • T-Mobil Telecom Rt. • Communications Authority • County Hospital of Mátészalka • National Library • BAUCONT Building Co. • County Hospital of Tolna • Raiffeisen Bank • Hungarian DevelopmentBank • HVB Bank Hungary • Erste Bank • K&H MANUFACTURING, TRADE, UTILITIES PUBLIC SECTOR • Mol Rt. • DÉMÁSZ • TIGÁZ • Paks Power Plant • Alcoa-Köfém • Skoda Auto a.s. • Ministry of Informatics • MEH (Office of the Prime Minister • Hungarian Post • Hungarian Parliamanet • Český úřad zeměměřický a katastrál. A SYNERGON CSOPORT TAGJA

10. Key financials • Hungarian activity: • Synergon • Synergon Atos Origin • Fibex • Regional activity: • Span, Croatia • Infinity, Czech Republic • Infinity, Slovakia • Employees: • 330 in Hungary • 550 in the region Sales revenue 1997-2003 USD million

11. Mission and Values Innovation Employees Customers Synergon intends to become the most successful IT solution provider in Central Eastern Europe, playing determining role in the development of e-economy of the region. Team-work Socialresponsibility Effectiveness

12. ICT trends

13. Short & longterm customer requirements Value network phase • Focus on: • Transparency • Reduction • ROI • Focus on: • Flexibility • Teamwork • Networking Consolidation Cost sinking phase Time

14. Important IT market trends • IT plays key role in competitiveness • Higher quality with less resources • Outsourcing is a powerful tool to improve profitability • Integration reduces time to market • Within the enterprise • Between the enterprises 1. 2. 3.

15. From PC to e-Commerce

16. Online technologies for internal processes

17. Processes of the extended enterprise

18. Perceived impacts of online selling

19. Planned expenditures on e-business

20. Regional trends and challenges

21. Regional effect Similar tasks and challenges in every NMS Similar IT tasks and projects Presence in several countries

22. Cross border projects in NMS

23. Associated candidate countries Similar road ahead of them Goal Help and support • Get credibility and trust • Remember what we have learned and done • Be there • Support locally, regional and EU level

24. Human capital • Infrastructure development • Services • Life long learning • Content development • Infrastructure/internet • CLBPS (Common List of Basic Public Services) eHealth eLearning ePublicServices

25. SME To increase competitive strength on EU and global market Sector specific solutions • ERP • E-business • BI Goal: Concerns: • Lack of capital • Readiness • Capabilities to use these services

26. Research & Development

27. Tenders and projects The source of funds The sooner – the better • On the learning path • Definition • Announcement • Responding • Decision making • (Project realization) • (Settlement)

28. Public procurement EU conform since May The actual test has to come • Multinational companies • Before May • After May • Regional & EU companies • Interest increases • Presence (not yet) visible Competition:

29. Equal chances to every member of the society Competitive, efficient economy Society Economy State Information Society E-learning, home office Cultural awareness of the society Efficient business communication Legal & public service environment for the citizen IT helps to increase competitive position Quick, mass usage of information in everyday life Wide spread of information products and services Developed, efficient information economy

30. Miklós Hoffmann, miklos.hoffmann@synergon.hu Thank you for your attention!