2. ES-SYSTEMLIGHT IMPRESSIONS
2
1. Realization of guidelines assumed for the year 2008
2. Realization of investments
3. Stable financial situation
4. Financial security and cost policy
5. Development strategy – solid foundations
6. Projects 2008
7. Actual situation and projects 2009
3. ES-SYSTEMLIGHT IMPRESSIONS
3
Development and promotion of the ES-SYSTEM brand:
- Three new product programs: 3xS (SAVE ENERGY, SAVE TIME, SAVE MONEY), ES (ENERGY SAVING),
ES-CLASSIC were prepared for launching in 2009
- New, innovative and design-original lighting SYSTEMS (SYSTEM 6000, ES-MULTI, CLOUDS, LED FIXTURES) were
launched
- In the range of street lighting new series of BOYEN luminaires were launched and luminaires from series SL 100 were
modernized
Increase of export sale
- Increase of sale on the EU markets and on markets of other highly developed countries realized
- Strengthening ES-SYSTEM brand by providing lighting for the most prestigious projects - Oslo Opera House, Terminal
III of Changi Airport in Singapore – which are the evidence of a scale and capabilities of ES-SYSTEM
New technologies and automation
- Purchase of production lines, machinery, equipment and modern technologies of which most were activated
(operators finished requested trainings) is completed in full and is being used for realization of current production
- Works regarding production of tools and instrumentation for new machinery and technological line have been initiated
- Second stage of the automation process of existing technologies and production lines have been started; completion
expected in December 2009
- Increase of production output by 25%
Objectives for the year 2008 – realization
4. ES-SYSTEMLIGHT IMPRESSIONS
4
Increase of productivity and effectiveness:
- Quick increase of productivity and effectiveness influenced by realization of the investment plan
- Increase of production capacity and actual improvement of products availability in relatively short time (for the basic
program – up to 24 hours)
Setting in order infrastructure:
- Building of new Logistic Centre on the premises of the production plant in ES-SYSTEM Wilkasy
- Building of new production hall (area of 3 000 m²) in ES-SYSTEM Wilkasy, implementation of new technologies
- Building of a warehouse (area of 1 500 m²) in ES-SYSTEM Wilkasy
- Modernization and renovation of production halls in ES-SYSTEM Wilkasy
- Extension of a production hall in ES-SYSTEM Rzeszow by 500 m²
Changes in work organization:
- Introduction of uniform information platform in the mother Company (in remaining companies of the Capital Group this
process should be finalized by June 30, 2009)
- Change in stock management by activating Logistic Centre in Wilkasy
Objectives for the year 2008 – realization
5. ES-SYSTEMLIGHT IMPRESSIONS
5
1. Realization of guidelines assumed for the year 2008
2. Realization of investments
3. Stable financial situation
4. Financial security and cost policy
5. Development strategy – solid foundations
6. Projects 2008
7. Actual situation and projects 2009
6. ES-SYSTEMLIGHT IMPRESSIONS
6
Total investments (PLN)
New production building, new warehouse and
modernization of existing buildings
7 406 014,22
Laboratory ENEC,EMC 367 518,56
Other civil engineering objects 595 062,08
Machines, equipment and devices for general
purposes
12 755 582,24
Specialist machines, equipment and devices 4 313 898,63
Technical equipment 440 809,55
Means of transportation 319 797,27
Laboratory and warehouse equipment 171 375,55
Intangible and legal values 24 431,16
TOTAL 26 394 489,26
Investments of the funds received from the stock exchange – status on
31.12.2008
8. ES-SYSTEMLIGHT IMPRESSIONS
8
• COSTS OF CENTRE COMPLETION:
Value of costs incurred up to now (own funds)
- PLN 5 424 000
• ASSUMED YEARLY TURNOVER:
PLN 150 mln
• ORGANIZATIONAL BENEFITS:
reduction in delivery time to clients by at least 48 hours
improvement in products availability
reduction in transportation cost by 10 – 15%
Logistic Centre in Wilkasy
9. ES-SYSTEMLIGHT IMPRESSIONS
9
New laboratory ENEC in Wilkasy
Tightness test Thermic chamber
Detail flammability test
Cost of building and equipping the laboratory – PLN 900 000
10. ES-SYSTEMLIGHT IMPRESSIONS
10
1. Realization of guidelines assumed for the year 2008
2. Realization of investments
3. Stable financial situation
3. Financial security and cost policy
5. Development strategy – solid foundations
6. Projects 2008
7. Actual situation and projects 2009
11. ES-SYSTEMLIGHT IMPRESSIONS
11
53 00140 93836 315 36 976
167 230 175 453
48 59346 06043 26537 535
0
20 000
40 000
60 000
80 000
100 000
120 000
140 000
160 000
180 000
I Q II Q III Q IV Q I-IV Q
+
3,36
%
ES-SYSTEM – sale increase despite weakening market
Revenues from sales of products, goods
and materials (in PLN thousand)
+
17,01
%
+
12,51
%
-
8,32
%
+
4,92
%
2007 2007 2007 2007 2007 20082008200820082008
• Maintaining sale growth in 2008 despite weakening investment market
Influenced by high sale base in 2007.
Postponing realization of investments
due to the financial crisis.
12. ES-SYSTEMLIGHT IMPRESSIONS
12
18 13216 064
5 540 4 930
10,33%
9,61%
10,15%
10,45%
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
18 000
20 000
IV Q 2007 IV Q 2008 I-IV Q 2007 I-IV Q 2008
0,00%
2,00%
4,00%
6,00%
8,00%
10,00%
12,00%
ES-SYSTEM – double digit growth of the operating results and
improvement of profitability from operations
Operating profit EBIT
Profitability (in %)
In PLN thousand
-11,01%
+12,87
%
• Maintaining double digit level of profitability in 2008
13. ES-SYSTEMLIGHT IMPRESSIONS
13
14 31612 410
4 431 3 897
8,16%
7,42%
8,02%
8,36%
0
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
IV Q 2007 IV Q 2008 I-IV Q 2007 I-IV Q 2008
0,00%
1,00%
2,00%
3,00%
4,00%
5,00%
6,00%
7,00%
8,00%
9,00%
In PLN thousand
ES-SYSTEM – double digit increase of net profit in 2008 and
improvement of net profitability
2 469
2 421Net profit
Net profit ratio (in %)
-12,05%
+15,36
%
14. ES-SYSTEMLIGHT IMPRESSIONS
14
0
20 000
40 000
60000
80 000
100000
120 000
140000
160 000
180000
200 000
IV Q 2007 IV Q 2008 I-IV Q 2007 I-IV Q 2008
ES-SYSTEM – geographic diversification of sale
Beneficial influence of the exchange rate of
Euro/PLN in the second half of 2008
Share of export sale
Share of domestic sale
175 453
23%
78%
22%
53 001
21%
23%
77%
48 593
167 230
79%81%
19%
23%
In PLN thousand
23%
22%
15. ES-SYSTEMLIGHT IMPRESSIONS
15
2001
•15 FOREIGN PARTNERS
•6 COUNTRIES
•2% OT TOTAL TURNOVER
2008
•117 FOREIGN PARTNERS
•OVER 52 COUNTRIES
•22% OT TOTAL TURNOVER
EXPORT
ES-SYSTEM – increase of the number of export countries and business
partners
Czech Rep.
15%
Great Britain
15%
Sweden
12%
Norway
6%
Netherlands
5%
Spain
5%
Russia
4%
Germany
4%
Denmark
3%
Austria
3%
Other
28%
Export 2008
19. ES-SYSTEMLIGHT IMPRESSIONS
19
2 469
3 120
9,19%
6,58%
0
500
1 000
1 500
2 000
2 500
3 000
3 500
I Q 2008 I Q 2009
0,00%
1,00%
2,00%
3,00%
4,00%
5,00%
6,00%
7,00%
8,00%
9,00%
10,00%
tys. PLN
ES-SYSTEM – net profit IQ09 2 469
2 421
+26,37
%
Net profit
Net profit ratio (in %)
20. ES-SYSTEMLIGHT IMPRESSIONS
20
1. Realization of guidelines assumed for the year 2008
2. Realization of investments
3. Stable financial situation
4. Financial security and cost policy
5. Development strategy – solid foundations
6. Projects 2008
7. Actual situation and projects 2009
21. ES-SYSTEMLIGHT IMPRESSIONS
21
Status on 31.12.2008
in PLN
thousand / %
State of cash and cash equivalents 15 577
Short-term credits and loans 1 296
Long-term credits and loans 302
Contingent liabilities (bank guarantees and securities) 4 539
Equity debt ratio 30,50%
Overall indebtedness ratio 23,37%
Current liquidity ratio 2,98
Quick liquidity ratio 2,10
ES-SYSTEM – high liquidity ratios and accessible cash
22. ES-SYSTEMLIGHT IMPRESSIONS
22
Substantial discretionary cash flow
Inconsiderable credit debt
Liquidity ratios at a level higher than considered safe
Insured all ES-SYSTEM S.A. export receivables
Restrictive and responsible policy in granting trade credits in domestic
turnover
Securities and exact punctual payments from clients
ES-SYSTEM – financial security
23. ES-SYSTEMLIGHT IMPRESSIONS
23
1. Realization of guidelines assumed for the year 2008
2. Realization of investments
3. Stable financial situation
4. Financial security and cost policy
5. Development strategy – solid foundations
6. Projects 2008
7. Actual situation and projects 2009
24. ES-SYSTEMLIGHT IMPRESSIONS
24
excellent
market
knowledge
weak zloty -
chance for
the export
weak zloty -
superiority over
importers our clients –
the biggest
„players”
on the market
knowledge
of employees
-our competitive
factor
competitive
quality of
solutions
low elasticity
of demand
market prices
even though
not the most
important
16,2%-share
in the prof.
lighting
market
ES-SYSTEM – competitive position
25. ES-SYSTEMLIGHT IMPRESSIONS
25
ES-SYSTEM – priorities for 2009
PREPARED FOR SLOWDOWN IN THE SECTOR
• Operational efficiency
• Production flexibility
• Product and geographic diversification
• Stable financial position
• Financial security
• Rational cost policy
• Making use of advantages – weak zloty, decrease in prices
of materials
26. ES-SYSTEMLIGHT IMPRESSIONS
26
Superior target:
Counteracting to climate changes and lowering consumption of non-renewable resources by increasing
energy efficiency
Long-term strategies of the UE:
1. Limiting emission of greenhouse gases by 20% till 2020
2. Decrease of energy consumption by 20% till 2020
3. Increase of renewable energy share in the energy balance up to 20% till 2020
Role of the lighting sector in energy saving activities / directions:
Energy efficiency in lighting is one of the fastest, most practical and cost effective ways of energy
saving
Applications of energy saving lighting may generate savings (in Europe, per year) at the level of 42,5
mln tons of CO2 or EUR 17,5 mld in operating costs
Modern, energy-effective lighting products can lower energy consumption even by 80%, with the life
of modern products 15 times longer than the life of traditional substitutes
ENERGY SAVING idea – Actions to propagate energy effective lighting
technology
27. ES-SYSTEMLIGHT IMPRESSIONS
27
Legal tools:
2005/32/EC – UE Directive regarding eco-design of energy consuming equipment
UE Regulations defining executive means for the Directive 2005/32/EC (publication in the Monitor UE
– 23.03.2009)
- Describes requirements of energy effectiveness for lighting equipment
- On those grounds minimal criteria will be introduced; based on that criteria the least efficient
equipment will be withdrawn from the market
2006/32/EC – UE Directive regarding effectiveness of the end use of energy and energy services.
It is the base for educational actions, introduction of building energy efficiency certificates, „green” public
orders, application of fiscal instruments
2002/91/EC – Directive regarding energy efficiency of buildings
National Action Plans for Rationalization of Energy Consumption
Project of legal regulation regarding lighting plans – New Lighting Design Legislation – it should
describe requirements for designing lighting installations
ENERGY SAVING idea – propagating energy effective lighting technology
28. ES-SYSTEMLIGHT IMPRESSIONS
28
1st stage – till March 2010
withdrawal of halo-fosphorus T8 fluorescent tubes, T5 and T8 fluorescent tubes with coefficient Ra<80,
two-pin plug-in CFL
minimal Energy Effectiveness ratio for ballasts for fluorescent tubes – class B2 and A3
max. stand-by power consumption – for ballasts as well as for luminaires with fluorescent tubes -1W
2nd stage – till March 2012
withdrawal of halo-fosphorus T10 and T12 fluorescent tubes, high pressure sodium and metal-halide (E27,
E40, PGZ12) lamps below specified limits
introduction of minimal Energy Effectiveness criterion for ballasts for HID lamps
max. stand-by power consumption - for ballasts as well as for luminaires with fluorescent tubes - 0,5W
luminaires for fluorescent lamps without build-in ballast and for HID lamps must be compatible with
ballasts required in the 3rd stage
3rd stage – till March 2017
withdrawal of metal-halide lamps ≤ 405W (E27, E40, PGZ12) below given limits and two-pin fluorescent
lamps cooperating with inductive ballasts
withdrawal of ballasts for fluorescent lamps class A1, B1, B2, A3, for CFL and two-pin fluorescent lamps
all luminaires must be compatible with requirements for ballasts
Schedule of coming into force of requirements for products
(according to Regulation to the Directive 2005/32/EC):
29. ES-SYSTEMLIGHT IMPRESSIONS
29
MONEY SAVINGS
- Use less energy – pay less!
ENERGY SAVINGS
-Low power consumption, energy saving lamps and high efficiency!
TIME SAVINGS
- Extremely short mounting time, and… time is money!
ES-SYSTEM – ENERGY SAVING idea – specific actions: new lighting
system…
30. ES-SYSTEMLIGHT IMPRESSIONS
30
OPPORTUNITIES
• Technology development – successive
change of equipment in 5-6 year cycles
• EURO 2012 – extra projects for the years
2009-2011
• ENERGY SAVING – necessity to
economize compelled by the law and
economy
• Weakening of PLN – chance for export
• Decrease in prices of raw materials – better
prices of supplies
• Problems of competitors
- importers – weak PLN limits import
- financial problems of other companies
related to the crisis.
THREATS
• Growing crisis of the world economic system
and its consequences for Poland
• Fierce, difficult to foresee changes of
economic parameters, especially exchange
rates
• Drastic limits of credit availability
• Delays in reforms
• Increase of unemployment and weakening
of internal demand.
ES-SYSTEM – where are we heading?…
BUSINESS ENVIRONMNET
World financial crisis, Poland entering economic slowdown period.
Prognosis of world economic growth - 0%, Polish - 1%.
Unknown remains the limit of decrease of investment demand which in Poland relates mainly to
housing.
31. ES-SYSTEMLIGHT IMPRESSIONS
31
•Solid foundations
•Leading position on the domestic market
•Renowned brand name
•Sound team of experts
ES-SYSTEM TODAY
ES-SYSTEM 2009-2010
Investments’ effects
INCREASE OF
- Production capacity
- Effectiveness
- Products’ quality
Strengthening
leader’s position:
- organic growth in
Poland and abroad
-utilizing all
advantages in the
time of crisis
- constructing the strategy
- analysis of markets and
potential subjects
- actions correlated with
changes in the economic
environment
M&A Strategy
Design
Research and development
Quality
Technological
innovations
The highest level of
products
ES-SYSTEM – where are we heading?
32. ES-SYSTEMLIGHT IMPRESSIONS
32
1. Realization of guidelines assumed for the year 2008
2. Realization of investments
3. Stable financial situation
4. Financial security and cost policy
5. Development strategy – solid foundations
6. Projects 2008
7. Actual situation and projects 2009
33. ES-SYSTEMLIGHT IMPRESSIONS
33
Selected projects completed in Poland in 2008
Number of
systems
Office Building Platinum B Warsaw 22 4 300
Cardinal Stefan Wyszynski University Warsaw 25 3 800
Office Centre GTC Globis Wroclaw 16 4 800
Psychiatric Hospital Milicz 14 1 200
Campus of the Jagiellonian University Cracow 39 8 600
Office Building GTC Edison Cracow 28 3 400
COMARCH Cracow 50 1 900
A. Frycz Modrzewski Krakow University College Cracow 25 1 050
Supermarkets chain Carrefour Express Entire Poland 10 4 000
Hotel Lider Cracow 35 2 600
CERI Lodz 13 1 606
Museum of the Arts Lodz 10 2 512
Malta Office Poznan 4 1 811
Logistic and Investment Centre Clip Swarzedz 60 3 079
Agata Furniture show-room Katowice 9 1 330
District Court Katowice 8 2 400
Project Location
Number of
luminaires
34. ES-SYSTEMLIGHT IMPRESSIONS
34
Selection of foreign projects completed in 2008
Project Location Country
Number of
luminaires
Number of
systems
Aeroflot Office Center Moscow Russia 1 000 1
Msll of Plovidiv Plovdiv Bulgaria 2 500 12
Klinika Prezydencka Moscow Russia 1 000 7
Opera Oslo Norway 11 600 86
WAL-MART 24 cities UK 9 000 1
Hotel Madrid Spain 350 3
City Inspection Dept. Amsterdam The Netherlands 300 2
CFR CLUJ Cluj-Napoca Romania 545 4
Com. Center Andares – Call Center Guadalajara Mexico 5 000 2
Banco de Santander Queretaro Mexico 4 000 2
Aquapark Cestlice Praha Czech Rep. 3 500 5
Nazareth Mall Jerusalem Israel 330 1
AL GHUNAIM HEADQUATER Kuwait Kuwait 700 5
Spiral Office builiding Budapeszt Budapest Hungary 1350 1
Universitaet Wien Wien Austria 450 1
35. ES-SYSTEMLIGHT IMPRESSIONS
35
Project Location Country Number of luminaires
Galeria Bałtycka Gdańsk Poland 2 300
Galeria Espark Eskisehir Turkey 2 400
CH Forum Gliwice Poland 5 680
CH Plaza Rybnik Poland 5 200
CH Plaza Sosnowiec Poland 5 800
Fokus Park Rybnik Poland 3 300
Fokus Park Bydgoszcz Poland 4 800
CH Port Rumia Rumia Poland 750
Pasaż Grunwaldzki Wrocław Poland 8 000
CH Polimeni Słupsk Poland 1 500
CH KLIF Gdynia
Poland
2 150
Shopping Malls 2007 - 2008
40. ES-SYSTEMLIGHT IMPRESSIONS
40
1. Realization of guidelines assumed for the year 2008
2. Realization of investments
3. Stable financial situation
4. Financial security and cost policy
5. Development strategy – solid foundations
6. Projects 2008
7. Actual situation and projects 2009
41. ES-SYSTEMLIGHT IMPRESSIONS
41
Rynek krajowy i eksportowy w I kwartale 2009r.
Rynek budowlany
kryzys gospodarczy - narastające problemy w sektorze budowlanym, szczególnie
w budownictwie mieszkaniowym
sezonowość w branży pogłębiona dodatkowo przedłużającym się okresem zimowym
produkcja budowlano - montażowa:
w styczniu ’09 spadek w stosunku do grudnia ’08 o 62,1% i wzrost w stosunku do stycznia ’08 o 7,4%
w lutym ’09 wzrost w stosunku do stycznia ’09 o 17,2% i wzrost w stosunku do lutego ’08 o 1,9%
w marcu ’09 wzrost w stosunku do lutego ’09 o 15,1% i wzrost w stosunku do marca ’08 o 1,2%
ES-SYSTEM
przegrupowanie sił sprzedażowych, stymulacja sprzedaży w kanale hurtowym
umocnienie pozycji ES-SYSTEM w obszarze sprzedaży do dystrybucji (duże sieci hurtowe)
rozwój oferty energooszczędnych rozwiązań oświetleniowych – ES-CLASSIC
ekspansja na nowe rynki zagraniczne o mniejszej zależności od kryzysu, np. Indie, Urugwaj, Iran
wzrost sprzedaży eksportowej w ujęciu miesiąc do miesiąca w I kw. 2009 r.
42. ES-SYSTEMLIGHT IMPRESSIONS
42
Perspektywy dla rynku krajowego i eksportowego w II kwartale 2009r.
Rynek krajowy:
- wyczekiwanie w obszarze dużych inwestycji w powierzchnie biurowe (niektóre inwestycje wstrzymane
na nieokreślony okres czasu)
- w realizacji inwestycje w obszarze centrów handlowych (mają finansowanie – nawet jeśli są
na bardzo wstępnym etapie)
- w realizacji inwestycje małe i bardzo małe (modernizacje szkół, lokalnych obiektów sportowych,
siedzib urzędów i władz samorządowych)
- presja na cenę i poszukiwanie najtańszych rozwiązań (potencjalny spadek marży sprzedaży)
- dobra współpraca na rynku dystrybucji (utrzymanie poziomu obrotów w IQ z 2008 i dobre prognozy na IIQ)
- na koniec IIQ powinny się pojawić pierwsze symptomy poprawy sytuacji (odrabianie zaległości)
Rynek eksportowy:
- realizacja portfela zamówień (wartości ok 8,5 mln. zł) złożonych w IQ 2009 – znaczący wzrost
w porównaniu do kwartałów poprzednich (o 15% w odniesieniu do IQ 2008)
43. ES-SYSTEMLIGHT IMPRESSIONS
Selected projects planned in Poland in III Q 2009
PROJECT Value in PLN
Galeria Jurajska – Częstochowa (dostawy opraw II – IV kwartał) 3,0 mln
Park Postępu – Warszawa (dostawy opraw II – IV kwartał) 2,5 mln
Kompleks biurowy New City (inwestor ECI) Warszawa ul.
Marynarska, (dostawy III-IV kwartał)
2,3 mln
Wojdyła Business Park - Wrocław 800 tyś.
Sąd Okręgowy - Łódź (dostawy III/IV kw.) 740 tyś.
Malta Office Park - Poznań 700 tyś.
Galeria „Nowy Świat” - Rzeszów 600 tyś.
Galeria „Rumia” - Gdańsk 600 tyś.
Textorial Park kompleks biurowy - Łódź (dostawy II/IV kw.) 410 tyś.
Budynek biurowy ASSECO - Rzeszów 400 tyś.
Hala produkcyjna Phoenix Contact - Nowy Tomyśl 350 tyś.
Kompleksowa modernizacja oświetlenia ulicznego - Wydminy, woj.
warmińsko-mazurskie
250 tyś.
44. ES-SYSTEMLIGHT IMPRESSIONS
44
Planowane realizacje – Aarhus Harbour
• Inwestor: władze lokalneAarhus
• Położenie: Półwysep Jutlandzki, wybrzeże morskie
• Powierzchnia I etapu: 60 000 m2.
• Do oświetlenia I fazy (2010-2014) użyte zostanie 480 szt.
opraw w 6 typach (indywidualnie zaprojektowanych)
– wartość 680 000 Euro.
45. ES-SYSTEMLIGHT IMPRESSIONS
• Inwestor: Giffels Management Russia
• Położenie: 30 km na Południe od Moskwy
• Powierzchnia całości: 530 000 m2; na działce o pow. 104 ha.
• Powierzchnia I fazy (oddanie do użytku II kwartał 2009): 74 000m2.
• Do oświetlenia I fazy użyte zostanie 2000 szt. COSMO4 różnych typów – wartość 70 000 euro EXW.
• Kolejne fazy obiektu mają być realizowane kolejno, po oddaniu I części w maju rozpoczną się prace nad II.
• Szacowana wielkość dostaw dla kolejnych magazynów to 12 000szt. COSMO różnych typów.
Planowane realizacje – Kompleks obiektów magazynowych «Южные
Врата»
47. ES-SYSTEMLIGHT IMPRESSIONS
47
Presentation was prepared by ES-SYSTEM S.A. („Company").
Data and information presented on individual slides do not constitute complete nor coherent
financial analysis or commercial offer of the Company. They serve only publication purposes.
Comprehensive description of operations and financial state of ES-SYSTEM. S.A. is available
from the Company’s web site www.essystem.pl - the chapter Investor Relations.
This presentation was not verified by any outside auditor. All presented facts and information were
based on sources acknowledged by the Company as reliable and verified. The Company reserves
the right to change presented data and information in convenient time without previous notice.
Presentation and used in it slides may contain statements referring to the future, however, they
cannot be recognized as prognosis or guarantees for the future results of the Company.
Expectations of the Board of Directors arise from current knowledge, awareness or opinions of the
ES-SYSTEM S.A. Board of Directors and are determined by series of factors which may cause
the future results to considerably differ from statements presented in this document.
It is suggested to search assistance of a professional financial adviser in case of interest in
investing in any securities issued by ES-SYSTEM S.A.