2. 1. Market environment
2. Financial results
3. The most important events in 2012
ES-SYSTEMLIGHT IMPRESSIONS
4. Prospects for 2013
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3. Lighting sector under pressure, decrease in investments
ES-SYSTEMLIGHT IMPRESSIONS
Estimation of construction and assembly output dynamics yoy (-1%):
Increases in areas: office buildings (+22%), hotels (+30,8%), industrial buildings and
warehouses (+15,4%), public use buildings (+9,9%)
Decreases in areas: hotel / service buildings (-2,3%), sport and recreation buildings (-32,1%),
civil engineering (-15,6%)
Increase in a number of companies which declared bankruptcy by 53% yoy
Increase in construction work permits by 6.7% yoy
Lighting sector at the level of 2011
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4. ES-SYSTEM Capital Group – financial data, status as for December 31, 2012
PLN 169 323 k – decrease by 0.20% yoy
PLN 4 318 k – decrease by 63.02% yoy
PLN 5 596 k – decrease by 61.17% yoy
3.30% in comparison with 8.49% in the same period
NET REVENUES
NET PROFIT
EBIT
Return on operational activities
ES-SYSTEMLIGHT IMPRESSIONS
3.30% in comparison with 8.49% in the same period
of the previous year
2.55% in comparison with 6,88% in the same period
of the previous year
PLN 14 638 k at the end of the period
4444
Return on operational activities
Return on net sale
Status of CASH
5. ES-SYSTEM – the Capital Group’s revenues from the sale in 2012 at the
level of the year 2011
33 776
36 462
49 874 49 549
34 485
38 073
43 769
52 996
20 000
30 000
40 000
50 000
+
2.10%
+
4.42%
-
12.24
%
+
6.96%
ES-SYSTEMLIGHT IMPRESSIONS
33 776 34 485
0
10 000
I Q 11/12 II Q11/12 III Q11/12 IV Q11/12
The Group’s revenues in 2012 were stable, at the level of the year 2011:
At the end of 2012 revenues at a level of PLN 169.3 M (decrease by 0.2% yoy)
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6. Maintaining the share of sales in the country
In Q4 2012 the Group’s sale on the domestic market was at a level of PLN 39.99 M, which
means an increase by 0.95% yoy
Total domestic sale in 2012 increased by 0.16% to a level of PLN 131 907 k:
– despite worsening market conditions the ES-SYSTEM Group maintained its share in the
domestic market
Increases in the outdoor lighting segment (18.8% yoy) and the emergency lighting sector
(8.4%)
ES-SYSTEMLIGHT IMPRESSIONS
(8.4%)
Increase in sale of lighting produced in LED technology: 7.48% share in the domestic market
in comparison with 3.55% in 2011
Wholesale constituted 44.46% of the domestic sale in comparison with 49.5% in the previous
year
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7. The EU export market under the pressure of recession, increase in Russia
ES-SYSTEMLIGHT IMPRESSIONS
In Q4 2012 the Group achieved historically the highest level of the export sale
Dynamics of the export sale in Q4 higher than in case of the domestic sale – 30.93% increase yoy
Decrease of the export sale by 1.46% in total 2012
Export sale with lower margins in comparison with an average domestic sale margin due to EURO
/ PLN exchange rate
The EU countries still the biggest export market of the Group with about 73% share, twofold
increase of sale to Russia (yoy)
7777
8. Operating result influenced by recession and increase of general costs
8 631
3 616
4 857
2 000
3 000
4 000
5 000
6 000
7 000
8 000
9 000
-
144.12
-
8.32%
-
92.48
%
+
34.32
%
ES-SYSTEMLIGHT IMPRESSIONS
1 394 769
3 616
-615
705 649
-1 000
0
1 000
2 000
I Q 11/12 II Q 11/12 III Q 11/12 IV Q 11/12
%
8.32%
The Group’s EBIT at the end of 2012 amounted to PLN 5.6 M, that is 61.2% decrease yoy
Return on profit EBIT at a level of 3.30% in comparison with 8.49% in 2011
8888
9. Costs optimization – reducing the scale of increase in costs:
In Q1 costs increased by 19.3% yoy
In Q2 increase amounted to only 12.9% yoy
In Q3 costs decreased by 4.05% yoy
In Q4 costs decreased by 7.15% yoy
Accumulatively at the end of June 2012 increase in costs by 16%
At the end of September increase in costs by 8.48%
At the end of December increase in costs by only 3.80%
Costs optimization program in 2012
ES-SYSTEMLIGHT IMPRESSIONS
9999
Costs increase – a derivative of:
increase of costs of emergency lighting testing and certification
increase of a transportation cost (increase of gasoline costs and additional fees from
forwarders)
increase of property insurance costs
increase of taxes on property in relation with ending of a tax-free period due to borne new
investments costs
costs of employees’ benefits slightly increased by about 0.63%
10. Net profit in 2012 below 2011
7 844
4 085
2 500
3 500
4 500
5 500
6 500
7 500
-
+
63,92
%
-
94,77
%
+
ES-SYSTEMLIGHT IMPRESSIONS
1 079
263
2 492
-758
581 410
4 085
-500
500
1 500
I Q 11/12 II Q11/12 III Q 11/12 IVQ 11/12
-
170,25
%
Net profit in 2012 amounted to PLN 4 318 k and was lower by 63.02% yoy
Accumulatively the net sale profitability at a level 2.55% in comparison with 6.88% in 2011
10101010
+
120,91
%
11. ES-SYSTEM – important events in 2012:
Fairs
Light&Building: the world’s most important trade fair for lighting
Exposition: more than 100 luminaires from 40 different systems, promotion of 15 totally new
systems based on LED technology
Costs: PLN 693 k
Direct effect of participation: PLN 1 M in orders, future clients - 14% of visitors
The stand and exposition used
during fairs in Poland:
Expopower in Poznan and
ES-SYSTEMLIGHT IMPRESSIONS
11111111
Energetab in Bielsko-Biała
12. ES-SYSTEM – important events in 2012:
New brand 100% LED
Development StrategyDevelopment StrategyDevelopment StrategyDevelopment Strategy
2013201320132013----2015201520152015
ES-SYSTEMLIGHT IMPRESSIONS
12121212
Dynamic application of LED technology in ESDynamic application of LED technology in ESDynamic application of LED technology in ESDynamic application of LED technology in ES----SYSTEM products resulted inSYSTEM products resulted inSYSTEM products resulted inSYSTEM products resulted in
implementation of a special distinction for luminaires with this type of light sources.implementation of a special distinction for luminaires with this type of light sources.implementation of a special distinction for luminaires with this type of light sources.implementation of a special distinction for luminaires with this type of light sources.
100% LED trade mark was registered by ES100% LED trade mark was registered by ES100% LED trade mark was registered by ES100% LED trade mark was registered by ES----SYSTEM in the Community Trade MarkSYSTEM in the Community Trade MarkSYSTEM in the Community Trade MarkSYSTEM in the Community Trade Mark
Registry at the Office for Harmonization in the Internal Market.Registry at the Office for Harmonization in the Internal Market.Registry at the Office for Harmonization in the Internal Market.Registry at the Office for Harmonization in the Internal Market.
13. ES-SYSTEM – important events in 2012:
New brand 100% LED
ES-SYSTEMLIGHT IMPRESSIONS
13131313
14. ES-SYSTEM – important events in 2012:
Changes within the Management Board
9 May 2012 appointing Mr. Jacek Wysocki to the Supervisory Board; previously performed
duties of the Marketing Deputy President of the Management Board
2 August 2012 Mr. Pilszczek’s resignation from performing duties, planned running for the
Supervisory Board at the General Assembly of Shareholders in 2013, currently advisor to the
Management Board
29 August 2012 appointing Mr. Romuald Wojtkowiak to the post of the President of the
ES-SYSTEM S.A. Management Board as of 1 September 2013
ES-SYSTEMLIGHT IMPRESSIONS
14141414
ES-SYSTEM S.A. Management Board as of 1 September 2013
Transfer of key shareholders, the Company’s founders, to the Supervisory Board is supported withTransfer of key shareholders, the Company’s founders, to the Supervisory Board is supported withTransfer of key shareholders, the Company’s founders, to the Supervisory Board is supported withTransfer of key shareholders, the Company’s founders, to the Supervisory Board is supported with
a declaration of factual assistance and further, longa declaration of factual assistance and further, longa declaration of factual assistance and further, longa declaration of factual assistance and further, long----term commitment to the development of ESterm commitment to the development of ESterm commitment to the development of ESterm commitment to the development of ES----
SYSTEM. Stable share ownership and possibility of current cooperation with the Company’sSYSTEM. Stable share ownership and possibility of current cooperation with the Company’sSYSTEM. Stable share ownership and possibility of current cooperation with the Company’sSYSTEM. Stable share ownership and possibility of current cooperation with the Company’s
shareholders constitute great value for the confrontation with strategic tasks for the nearest years.shareholders constitute great value for the confrontation with strategic tasks for the nearest years.shareholders constitute great value for the confrontation with strategic tasks for the nearest years.shareholders constitute great value for the confrontation with strategic tasks for the nearest years.
15. ES-SYSTEM – important events in 2012:
Announcement of the Strategy „Time to grow”
Pillars of the development strategy:
Increase of the share in the domestic market of the professional lighting (from estimated
current 20% to 25% at the end of 2015)
Increase of the export share (to 41% at the end of 2015)
Increase of the share of luminaires produced in LED technology in the total sale (to a level
ES-SYSTEMLIGHT IMPRESSIONS
15151515
Increase of the share of luminaires produced in LED technology in the total sale (to a level
of 30% at the end of 2015)
16. ES-SYSTEM – prospects for 2013
The first half of 2013 will bring worsening of the economic situation in the sector in the country
and abroad and further margin pressure. Signals of market stabilization may appear not until the
second half of 2013.
Development of the product offer and further expansion on the wholesale market, and at the
same time maintaining sales in the investment sector. The second half of 2013 should bring the
first financial results of those sale actions.
The first half of 2013 will be dedicated to building ES-SYSTEM’s position on selected export
markets. Effect of those strategic operations in export should be noticeable by the end of 2013.
ES-SYSTEMLIGHT IMPRESSIONS
ES-SYSTEM enters 2013 with a moderate optimism. Number of pending projects (under
construction with completion date in 2013) authorizes to it – despite awareness of price pressure
and a risk of margin decrease and potential threats resulting from postponing projects due to lack
of financing and payment problems.
The goal of the Group in Q1 2013 will be to maintain results as in the same period of the previous
year.
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17. ES-SYSTEM – the Management Board’s goals for 2013
The Group’s preparation for growth in the sector, growth expected in 2014-2015
Concentration on cooperation with architects and on working out individual solutions
Increase of the market share by increasing share of LED lighting sale
Development of the offer for the wholesale market in the country as well as abroad
Clear impulse of the sale’s growth should take place in 2014-2015
ES-SYSTEMLIGHT IMPRESSIONS
Realization of programs supporting implementation of a strategy accepted in September 2012:
program of production plants restructuring
reforming a supply chain and organizing a purchasing process
program of strengthening and consolidating the commercial organization and changing its
structure by creating new, key positions in the current business
improvement of a marketing communication / intensification of marketing actions
program of cost reduction and profitability improvement within the Capital Group
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