2. ES-SYSTEM Capital Group - the most important financial data as for
30.06.2011
NET REVENUES from sales: PLN 70 238k – increase by 2.63% yoy.
NET PROFIT: PLN 1 342k – decrease by 62.37% yoy.
EBIT: PLN 2 163k – decrease by 40.51% yoy.
Return on operational activities: 3.08%, in comparison with 5.31% in the same period
of the previous year.
ES-SYSTEMLIGHT IMPRESSIONS
of the previous year.
Return on net sale: 1.91%, in comparison with 5.21% in the same period of the
previous year.
Status of CASH at the end of the period: PLN 12 721k
2222
3. Situation on the construction market in Q1 and Q2 of 2011
-15.7
-24.6 -10.2
-6.1
2.3
9.6
0.8
8.5
13.4
9.4
14.2 12.311.2
23 24.2
15.6
23.9
17
I II III IV V VI VII VIII IX X XI XII
Changes in a construction-assembly production (yoy), 2010-2011 (in %)
2010 2011
ES-SYSTEMLIGHT IMPRESSIONS
Increase of the construction-assembly production in H1 by 20.8% yoy
Mainly on the civil engineering market (+40.2% yoy) and specialist works companies
(+22.8% yoy)
Within the main area of ES-SYSTEM operations - a market of construction companies -
decrease by 3.8%
3333
4. 29 571
38 866
45 409 48 457
33 776 36 462
10 000
20 000
30 000
40 000
50 000
60 000
Seasonality
effect
Result of a high
base
ES-SYSTEM – the Capital Group’s quarterly revenues from sales
ES-SYSTEMLIGHT IMPRESSIONS
0
IQ10 IIQ10 IIIQ10 IVQ10 IQ11 IIQ11
Decrease in domestic sales in Q2 by 1.81% yoy – derivative of a sector’s seasonality.
Decrease in export sales by 18.07% yoy – mainly due to the high base effect (in Q2 2010
completion of two large shopping centers with a value about PLN 4.4m).
Increase in domestic sales in H1 by 2.4% yoy, export sales increase by 3.4%.
Margin in % from total sales after H1 slightly lower yoy.
4444
5. ES-SYSTEM Capital Group – significant events and factors which
influenced Q2 financial result
POLAND
Selective growth of the domestic construction-assembly production not giving full
possibilities to build significant increase of revenues
Sustained price pressure, search for the cheapest solutions
New regulations concerning certification of emergency lighting products restricting
market access – sale of emergency lighting below expectations
Limitations in communal investments in a road and park lighting segment do to an
amendment to the Act on the Public Finance and the Regulation of the Minister of
ES-SYSTEMLIGHT IMPRESSIONS
amendment to the Act on the Public Finance and the Regulation of the Minister of
Finance of 23.12.2010 on allowable debt level for communes – recession in road
light sales
Seasonality effect in Q2 2011
ABROAD
More caution in making investment decisions and limiting or introducing savings
to projects accepted earlier (Great Britain, Norway, Denmark)
Limitations in financing public projects in Romania and Bulgaria
5555
6. ES-SYSTEM – export sale
5 211 000
7 635 000
10 462 272
8 571 000
Q 2
Q 1
ES-SYSTEMLIGHT IMPRESSIONS
Increase of the export sale in Q2 2011 by almost PLN 1m to a level PLN 8 571k in comparison
with Q1 2011
By 18% lower than sale in Q2 2010, an effect of the high base in 2010 (completion of 2 shopping
centers)
This year similar projects will be completed on the turn of Q3 and Q4
6666
2010 2011
7. ES-SYSTEM – export markets
50%
100%
150%
200%
250%
ES-SYSTEMLIGHT IMPRESSIONS
TOP 10 export markets in H1 2010 in relation to f H1 2010 – increases and decreases.
7777
-100%
-50%
0%
8. 3 288
4 586 4886
8.46%
10.10%
10.08%
4.13%
2.11%
4,00%
6,00%
8,00%
10,00%
12,00%
2 000
3 000
4 000
5 000
ES-SYSTEM – operating result
ES-SYSTEMLIGHT IMPRESSIONS
348
1 394
769
1.18%
2.11%
0,00%
2,00%
0
1 000
IQ10 IIQ10 IIIQ10 IVQ10 IQ11 IIQ11
Decrease of the operating profit in the Group in Q2 yoy by 76.61% to a level PLN 769k
Scale of the decrease results from a lesser gross profit on sales and an increase of costs in
Q2 with lower sale’s rate
In H1 sales and general administrative costs increased by PLN 1.5m, that is 7.25% yoy (also
a derivative of a depreciation increase by PLN 500k)
Operational costs burdened with a revaluation write-offs on receivables
8888
9. 3 465
3 556
8,92%
7,83% 7,97%
3,19%
3,00%
4,00%
5,00%
6,00%
7,00%
8,00%
9,00%
10,00%
2 000
3 000
4 000
5 000
ES-SYSTEM – net profit
ES-SYSTEMLIGHT IMPRESSIONS
101
3862
1 079
263
0,34% 0,72%
0,00%
1,00%
2,00%
0
1 000
IQ10 IIQ10 IIIQ10 IVQ10 IQ11 IIQ11
9999
Net profit in Q2 2011 was at a level PLN 263k, that is 92.41% decrease yoy
Profit of H1 2011 amounted to PLN 1 342k and was lower by 62.37% yoy
Cumulative net profitability at a level 1.91% in comparison with 5.21% in 2010
• Derivative of a lower operating profit by an amount about PLN 1.5m and a weaker result on a
financial activity by an amount PLN 600k
10. ES-SYSTEM GK – H2 2011 prospects
Good financial standing, stable competitive position, high financial security
Return to a growth path in domestic sales
Level of orders for next months comparable with the last year’s level
Few percent sales increase in basic assortment groups and in LED segment in July
Final phase of completing (including installation of lighting) many EURO 2012 projects
September - finalizing certification procedure for the first two applications for certificates on
sell admission of emergency lighting fixtures
ES-SYSTEMLIGHT IMPRESSIONS
sell admission of emergency lighting fixtures
Expected sales growth on export markets
Increase of a volume of orders with completion time limits in Q3 and Q4
Sales increase in Russia (contracts for the Ministry of Defense) and in Ukraine
Planned completion of shopping centers in Szeged (Hungary) and Szczecin (Poland)
10101010
11. ES-SYSTEM GK – H2 2011 prospects
Despite an unstable situation on the world markets the Management Board hopes to
attain revenues at a level not lower than in 2010 by the end of the year.
The Management Board’s main objective in the current year is also profits’
improvement. Based on a current domestic and export order portfolio as well as on
ES-SYSTEMLIGHT IMPRESSIONS
improvement. Based on a current domestic and export order portfolio as well as on
potential of new projects, following quarters should bring profits increase.
In the Management Board’s opinion September and October will allow for full
evaluation of a sector’s condition and prospects of its further development.
11111111