2. ES-SYSTEMLIGHT IMPRESSIONS
Seasonal slowdown in the lighting industry
The dynamics of the building and construction output yoy at the end of Q1 2013 (-18.5%):
professional lighting industry in Poland - a slight decrease in the evaluation of the
company
wholesale - a clear slowdown, a double-digit decline in the market (11% decrease yoy
- leading wholesalers)
declines in the EU market, stable situation in Russia and Sweden
2
3. ES-SYSTEMLIGHT IMPRESSIONS
ES-SYSTEM Capital Group – key financial data as of 31.03.2013
PLN 34 779 k – increase by 0.85% yoy
PLN -212 k
PLN -429 k
PLN 1 594 k – increase by 18.42% yoy
-1.23% in comparison to -1.78% in the
corresponding period in the previous year
-0.61% in comparison to -2,20% in the
corresponding period in the previous year
period-end balance: PLN 16 707 k
3
NET REVENUE
NET LOSS
EBIT LOSS
Return on profit
EBIT
Return on net sales
Liquid assets
EBITDA
4. ES-SYSTEMLIGHT IMPRESSIONS
ES-SYSTEM – despite market tendencies, stable revenues from sales for
the Capital Group
33 776 34 485 34 779
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
40 000 +
2.10%
+
0.85%
Despite the slowdown in the industry in the first months of this year, the Group’s
revenues in Q1 2013 are stable, reaching about the same level as in 2012
4
IQ11 IQ12 IQ13
5. ES-SYSTEMLIGHT IMPRESSIONS
Increase in domestic sales
The Group’s domestic sales in Q1 2013 amounted to about PLN 27.95 M, which means an
increase by 3.2% yoy
Despite the growing pricing pressure, it was possible to maintain the sales margin level
In spite of deteriorating market conditions, the ES-SYSTEM Group increased its share in
the domestic sales market
Q1 2013 brought growth in the segment of industrial (8.9% yoy) and emergency
lighting (14% yoy)
An increase in LED lighting sales: a 12.8% share in domestic sales compared to 7.7%
in Q1 2012
Sales in the wholesale market accounted for 46% of domestic sales in comparison to 44%
in 2012
5
6. ES-SYSTEMLIGHT IMPRESSIONS
EU export markets under the pressure of recession
In Q1 2013, Group generated export sales of PLN 6.8 M, which denotes a 7.7% decline yoy
• the result of EU investors suspending purchase decisions
UE still constitute the Group’s largest export market with a share of about 59%
A two-fold increase in sales in the Russian market (yoy) (16% of the Group’s export sales)
Sales increase of the Swedish subsidiary by more than 30% (28% of export sales)
6
7. ES-SYSTEMLIGHT IMPRESSIONS
Operating income – under the pressure of the seasonal character of the industry
and the cost of EBITDA provisions – an increase by 18.4% – amortization
1 394
769
8 631
3 616
-615-615
705 649
4 857
-429
-1000
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
9 000
I Q 11/12 II Q 11/12 III Q 11/12 IV Q 11/12 I Q 12/13
-
144,12
% -
8,32%
-
92,48
%
Operating loss in the amount of PLN 429 k:
an improvement in sales results – PLN 13.2 M – a 5.36% increase yoy
a decrease in management and sales costs by 9.8% yoy compared to the 3.8% increase in
2012
EBITDA have grown to reach PLN 1.6 M compared to 1.3M PLN from last year, i.e. an
increase by 18.4% yoy – influence of the amortization of the Dobczyce production plant
7
+
34,32
%
8. ES-SYSTEMLIGHT IMPRESSIONS
Net profit under the pressure of the seasonal character of sales
1 079
263
7 844
2 492
-758-758
581 410
4 085
-212-500
500
1 500
2 500
3 500
4 500
5 500
6 500
7 500
I Q 11/12 II Q11/12 III Q 11/12 IV Q 11/12 I Q 12/13
-
170.25
%
+
63.92
%
-
94.77
%
Negative net result – a derivative of the operating loss
The positive balance in financing activities in the amount of 215 thousand PLN, i.e. positive
foreign exchange rate differences – decreased the Group's loss
8
+
120.91
%
10. ES-SYSTEMLIGHT IMPRESSIONS
ES-SYSTEM – prospects for Q2 2013
First half of 2012 under pressure, with a possible recovery in the second half of
the year
Expectations of an increase in export sales in Q2 2013 (at a higher level than in
Q2 2012 and higher than results generated in Q1 2013)
a derivative of the increase in the value of orders received and the value and
number of offers prepared for clients, mainly in Arab countries and Russia
Expectations of domestic sales in Q2 2013 being comparable to sales in Q2
2012 and higher than Q1 2013.
a derivative of the steadily increasing level of orders received
The Group’s goal for 2013 will be to maintain the results from the preceding year
10
11. ES-SYSTEMLIGHT IMPRESSIONS
ES-SYSTEM – programs and activities carried out in Q1 in support of the
implementation of the strategy„Time for growth”
Preparation of a restructuring program for factories
Reforming the supply chain and reorganizing the purchasing process
A program for the strengthening and consolidation of sales organization and
changing its structure by creating new key positions in the current business (e.g.
Purchasing Manager, Chief Financial Officer of the Capital Group)
Improving marketing communication/intensification of marketing activities
Lowering costs and improving profitability in the entire Capital Group
Negotiating contracts with dozens of warehouses, which represent more than 50%
market subjects
11
12. ES-SYSTEMLIGHT IMPRESSIONS
According to previous statements and the announcement that the ES-SYSTEM, Inc.
Annual Meeting shall be convened on 22 May 2013, the candidates for the Board of
Directors are:
Mr. Bogusław Pilszczek – long-term President and shareholder at ES-SYSTEM, Inc.
Mr. Leszek Ciupiński – Vice President, Chief Financial Officer and shareholder at ES-
SYSTEM, Inc.
12
ES-SYSTEM
13. ES-SYSTEMLIGHT IMPRESSIONS
13
ES-SYSTEM General Meeting – dividend
In thousands PLN
9 548
9 803
10 444
3 866
0.10 PLN /1
share
Management and
the Board of
Directors’
recommendation:
0.05 PLN /1 share
14. ES-SYSTEMLIGHT IMPRESSIONS
Examples of domestic projects completed in Q1 2013
• „Double Tree” Hilton Hotel and office building, Łódź
• Faculty of Philology at the University of Łódź
• Greater Poland Center for Advanced Technologies, Poznań
• Galeria Solna shopping center, Inowrocław
• Autostarter office building and warehouse, Gdańsk
• Port building Polska 15, Gdynia
• Galeria Olimpia shopping center, Kalisz
• Platinum V office building, Warsaw
• Lighting modernization of Galeria Mokotowska shopping center, Warsaw
• Museum of the History of Polish Jews, Warsaw
• Modernization of the illumination of the gardens of the Belweder Palace, Warsaw
• S8 national road segment, Łódź voivodeship
• Street lighting modernization in Szprotawa, Lubusz voivodeship
14
15. ES-SYSTEMLIGHT IMPRESSIONS
Examples of export projects completed in Q1 2013
• Credit Bank of Lombardy, Bergamo, Italy
• ASDA supermarkets, England
• Hotel Brunnmatt, Switzderland
• Cadet school, Tyumen, Russia
• „Juzhnyje Vorota” Logistics Park – next stage, Moscow Oblast/Russia
• Sahdag Summer-Winter Tourism Complex, Baku, Azerbaijan
15