public offer doradztwo gospodarcze dga s.a. ipo 2003 presentation modern consulting services for the...
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Public OfferDoradztwo Gospodarcze DGA S.A.
IPO 2003 PRESENTATION
Modern consulting services for the Great Ones of tomorrow
page 3
Investment opportunityin a strong Polish consulting firm
© DGA 2003
• Poznań-based consulting firm with 14 years experience
• Unique combination of business consulting services and IT solutions
• Poland’s access to the EU is a unique opportunity for rapid growth
• Turn-key customer services:- business consulting – Doradztwo Gospodarcze DGA S.A.
- audiiting, book-keeping, taxes – Usługi Audytorskie DGA Sp. z o.o.
- legal advice – Kancelaria Prawna Marcin Piszcz i Wspólnicy Spółka
Komandytowa
about uswe’re competent...
page 4
Consulting services market in Europe
© DGA 2003
Consulting services in Europe• EUR 46.5 billion of revenues in 2003 • 57,000 consulting firms• 300,000 management consultants• 0.42% - the share of consulting firms in GDP total
Source: FEACO, 2002 – Survey of European Management Consulting Market
about uswe're competent...
BCbusiness
consulting
CFinvestment
banks
BCin business structures
HRhuman
resources
ITIT companies
page 5
Consulting services market in Europe
© DGA 2003
about uswe're competent...
Structure of the consulting services market in Europe
Source: Kennedy Information, Inc.
Excellent forecasts for the Polish consulting services market
0.10.20.30.40.50.60.70.80.91
0 500 1000 1500 2000 2500 3000
Gross Domestic Product (EUR bln)
GD
P t
o c
onsu
ltin
g f
ees
rati
o
Consulting services market in relation to the economic potential of European countries
Belgium
Hungary
Bulgaria
Slovenia
Denmark
Switzerland
Austria
Portugal
Romania
Germany
France
Italy
Spain
Russia
Greece
Poland
UK
Poland
page 6
Consulting services market in Europe
© DGA 2003
about uswe're competent...
Revenues structure in EuropeProjected growth of the
world market of consulting services
3.1% CAGR
$ 119.1 $ 119.1
$ 123.4
$ 130.6
110
115
125
130
135
2002 2003 2004 2005
Con
su
ltin
g s
erv
ices r
even
ues w
orl
dw
ide (
in U
SD
billion
)
Source: FEACO, 2002 – Survey of EMCM
120
Source: Kennedy Information, Inc.
Operations Management
IT-Consulting / Implementation
Corporate Strategy Services
Outsourcing Services
Humans Resources Consulting
Human Resources
Consulting
10.7 % IT Consulting/
Implementation
28.5 %
Operations Management
28.2 %
Corporate Strategy Services
19.9 %
Outsourcing Services
12.7 %
page 7
© DGA 2003
about uswe're competent...
DGA - a major player on the Polish consulting services market
DGA - the leader of the Polish consulting services market – 2002
1. DGA S.A. PLN 12.0 million2. EVIP GF PLN 11.2 million
3. Doradca Consultans PLN 6.0 million
4. Frąckowiak i Wspólnicy Konsulting Sp. z o.o. PLN 6.0 million
5. Pro-Invest PLN 2.9 million
Dominant position in the Wielkopolska region
1. DGA S.A. PLN 12.0 million
2. Frąckowiak i Wspólnicy Konsulting Sp. z o.o. PLN 6.0 million
3. CEG, Finansista, TEB
page 8
DGA - a major player
© DGA 2003
about uswe're competent...
on the Polish consulting services market
Other players on the consulting services market
IT Sector
• IMG – PLN 44 million – 110 people• Infovide – PLN 14.8 million – 33
people• Plaut – PLN 11.5 million – 30 people
„The Big Four”
• ABC – PLN 65.9 million – 104
people• Accenture – ...... – 159 people• Deloitte & Touche – ..... – 57
people• KPMG – ....... – 50 people
450 companies accredited by PARP (Polish Agency for Enterprise Development)
DGA – we have 75 consultants today and are still growing...
our customers keep coming back
13.2
2.0
1.4page 9
DGA - constant growth
© DGA 2003
about uswe're competent...
taking care of shareholders
Dynamic growth
0
2
4
6
8
10
12
14
16
1990 1995 1996 1997 1998 1999 2000 2001 2002 2003
lata
Proc
eeds
0
0,5
1
1,5
2
2,5
3
Net
pro
fit
proceedsnet profit
*)
952
1333
928
5. No. of- full-time employees- consultants
6. Revenue on sales (in PLN million)
7. Gross profit (in PLN million)
8. Net profit (in PLN million)
4,783,772,334. Equity (PLN million)
2,011,820,54
17.9%11.9%
12.4%10.4%
1,82
3.2%7.5%
29.440.721.3
20022001 2000
Basic ratios
2. Return on sales- gross- net
Ratio
1. Return on Equity (RoE)
*) 2001 - a contract with the World Bank including a major number of subcontractors
6.6
0.7
0.5
11.8
1.9
1.4
3. EBITDA (PLN million)
page 10
Transparent structure
© DGA 2003
about uswe're competent...
organizational and technical potential
Management Board
MarketingDepartament
Business SupportDepartaments
Key personnel
• 7 yearsJacek Musiał
• 6 yearsPaweł Radziłowski
• 10 years
• Management and Finance• 13 years
Area of activityPosition
• Jacek Musiał
• Management Consulting, IT Products
• Paweł Radziłowski
• Business Consulting• Waldemar Przybyła
• European Union Services• Anna Szymańska
• Andrzej Głowacki
Yearsin DGA
• 13Years
• Vice-President of the Board
• Vice-President of the Board
• Vice-President of the Board
• Vice-President of the Board
• President of the Board
• Infra-Structure Projects
NameOur people
75 consultants very low
rotation motivative
wages
scheme high wages regular training
program
Our potential
Knowledgeable in
ISO 9001:2000
management system without a single
sheet of paper ISO 17799 SCALA system to be
implemented soon
Management model
highly independent
departments
accountable for their
profits and revenues
with common working
procedures – info.dga sales unit in every
department
Our strenghts
Business Consulting European Union ServicesManagement Consulting
IT Products
page 11
DGA - our competitive edge
© DGA 2003
about uswe're competent...
First of all, our customers...
Our achievements...
• mergers - PKE, ENEA• ISO implementation – KHW,
CU• training - World Bank
World Bank
page 12
DGA - our competitive edge
© DGA 2003
about uswe're competent...
Competent, vigorous and highly-motivated team
Modern DGA equipment and experienced team of consultants
Constant product developmentNew products in 2003:
• Export loan insurance• BS 7799• Project fiches (UE)• DGA Process v.2
Business consulting supported by IT solutions (DGA QUALITY, DGA PROCESS)
Info.dga vortal , CRM,ISO systems and procedures
page 13
Risk diversification
© DGA 2003
and turn-key customer services
Management Consulting
• Restructuring of business
processes
• Quality management systems
• Support for implementing
software systems
• IT consulting services
• Information security
1997
European Union Services
• Regional development plans and
strategies
• Projects and applications for
assistance and structural funds
• Project management
• Development of human resources
• Public and private partnership
2003
Business Consulting
• Financing export projects
• Corporate Finance
• CRM
• Restructuring and
outsourcing
• Strategy and BSC
• Controlling of operations
1990
IT Products
• DGA Process: business
process modeling tool
• DGA Quality: quality
systems implementation
software
• DGA Workflow: workflow
management system
• DGA Learning
• DGA Project Managment
• DGA Controlling
• DGA BSC
2001
our productswe're efficient...
page 15
Business Consulting
© DGA 2003
Trends/Growth Basis
Growth tendency in the consulting services market worldwide, ca. 3-8% per annum. Consulting services in Poland account for 0.14% of the GDP (Poland ranks 19th among
20 FEACO members). The demand for consulting services in marketing, business strategies, human
resources management and CRM will grow in the near future. UE funds for adaptation to market changes are likely to increase the demand for
consulting services (SME sector).
Competitors: Cap Gemini Ernst & Young, Deloitte & Touche, PricewaterhouseCoopers, KPMG, EVIP, Doradca, Pro Inwest, BRE Corporate Finance, SJOS
our productswe're efficient...
page 16
© DGA 2003
Flagship Business Consulting projects
Establishment of Grupa Energetyczna ENEA in Poznań (merger
of 5 power supply companies). Formation of Południowy Koncern Energetyczny in Katowice
(merger of 8 power plants). Participation in the amicable proceeding of NETIA. Sales transactions of Treasury stock: Wierzynek, Bester, etc. Restructuring the assets of Telewizja Polska S.A. Polska Grupa Farmaceutyczna S.A. – framework of a CRM
system.
our productswe're efficient...
page 18
Business processes and information management
© DGA 2003
Competitors: IDS Scheer, Big4, IBM/PwC, Infovide, info-consulting.
our productswe're efficient...
Trends / Growth basis
Customers are confused; they search for consultants who will guide them through the processes of
requirement definition, negotiations with IT companies and implementation supervision.
Growing awareness of the consequences of implementing badly chosen IT systems creates a need for
pre-implementation analysis.
End of the ownership structure changes in Poland and a shift towards increasing efficiency require
detailed process optimization (e.g. logistics).
Uncontrolled growth of outlays in IT creates the need to restructure this area (IT departments) /
rationalization of expenses.
page 19
Quality management
© DGA 2003
Trends / Growth basis
Constantly updated areas of organization management certification and
standardization (e.g ISO 9001, ISO 14001, OHSAS 18001, ISO 17799). Central and local governments being obliged to implement quality management
standards (EU: UK government). Implementing quality management standards makes Polish organizations compliant
with certain EU standards in this respect. It is estimated that within the next 4 years the employment in the quality
management sector will grow by 100 thousand people.
Competitors: Bureau Veritas, KEMA, TUV konsulting, CIOP, GIG, ZETOM, ENERGOPROJEKTY, ENERGOPOMIAR, Umbrella, Doradca, Simptest
our productswe're efficient...
page 20
© DGA 2003
Flagship Management Consulting projects
Implementation of a quality system in KATOWICKI HOLDING WĘGLOWY S.A. based on DGA’s software tools.
Optimization of business processes aimed at implementing an ERP system in PROVIMI group (ROLIMPEX),
in KŁODAWA SALT MINES, DLS and JELFA S.A.• Implementation of a workflow system in LUBOŃ CHEMICAL WORKS and in the CENTRAL
INSTITUTE OF LABOR PROTECTION.• Ongoing process optimization services for POLKOMTEL.• Implementation of quality systems incorporating DGA’s software tools in KGHM group
companies (PeBeKa i CBJ), SKODA, RHODIA Polyamide Poland, COMMERCIAL UNION, ELEKTROWNIA TURÓW, 3 power&heating plants and in 8 power supply companies.
• Process integration of the quality system in GRUPA ENERGETYCZNA ENEA.• Reconstruction of the quality systems in the POLISH CENTER FOR RESEARCH AND
CERTIFICATION and the TECHNICAL SUPERVISION AUTHORITY based on DGA’s software.• Services for over 40 companies through the „Introduction to Quality” program held by PARP.
our productswe're efficient...
page 22
© DGA 2003
IT Products
Trends / Growth basis
SMEs require IT solutions, thus causing demand for cheap but specialized software.
Only 5% of certificate holders own software supporting system maintenance (EU
average: 40%).
The number of requests for workflow system implementation grew by 20% within the
first six months of 2003.
Planned update of ISO standards indicates BSC as the main tool for measuring the
flexibility of quality systems – growing demand for specialized software.
Competitors: Micrografx, IDS Scheer, T-Komp, DomData, Logotec, MIS, Optix
our productswe're efficient...
page 23
Programming supporting business experience
© DGA 2003
DGA BSC
DGA Project Management
DGA Workflow
DGA Learning
DGA Quality
DGA Process
Controllingof
operations
Data Security
Strategyand BSC
IT Consulting Services
Restructuring and outsourcing
Support for IT system
implementation
Quality management
system
CRMRestructuring
business processes
Product
DGA Controlling
our productswe're efficient...
page 25
Development of human resources
© DGA 2003
Trends / Basis for growth
Competitors: Regional Development Agencies, Local Democracy Development
Foundation, universities, Economic Education Foundation, Doradca, WGK, Uniconsult
It is estimated that in the years 2004-2006 Poland will absorb EUR 11 368.6 million of EU funds allocated for structural purposes. 15% of that sum will be spent on the projects carried out within the Sectoral Program for Human Resources Development.
High unemployment rate, low education levels, mismatched supply and demand of the Polish workforce, necessity to minimize social exclusion and ensuring equal opportunities on the job market - all these factors will result in an influx of EU funds to Poland
our productswe're efficient...
Customers
• Provincial Employment Agencies• Local Employment Agencies• Local Government Units• Non-Profit Organizations
page 26
Assistance in the preparation and management of projects
© DGA 2003
Trends / Basis for growth
financed by EU aid funds
Competitors: Regional Development Agencies, Local Democracy Development
Foundation, universities, Economic Education Foundation.
our productswe're efficient...
It is estimated that in the years 2004-2006
Poland will absorb EUR 11 368.6 million of EU
funds allocated for structural purposes. 40% of
that sum will be spent on the projects carried out
within the Integrated Operational Program for
Regional Development. It is estimated that ca.
EUR 650 million will go to consulting firms.
Customers
• Local Territorial Government Units • Churches• Universities• Employment Agencies• Non-Profit Organizations
page 27
Polish Consulting Leader Stock on the WSE
© DGA 2003
Why should I buy DGA stock?
1. Growing consulting services market in Poland
1. Unique position of DGA on the consulting services market
1. Impressive list of clients
1. Unique reliability of key people in DGA
1. Brilliant ideas for the future
why choose us?we're reliable...