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ES-SYSTEM Presentation of data for Q1 2010
1. ES-SYSTEM S.A.
L i g h t I m p r e s s i o n s
Presentation of the results for Q1 2010
ES-SYSTEMLIGHT IMPRESSIONS
1
2. ES-SYSTEM Capital Group – financial data, status on March 31, 2010
NET REVENUE from sales PLN 29 571 k – decrease by 12.93% yoy
NET PROFIT PLN 101 k – decrease by 96.76% yoy
EBIT PLN 348 k – decrease by 89.57% yoy
Return on operational activities 1.18% in comparison with 9.82% in the same period
of the previous year
ES-SYSTEMLIGHT IMPRESSIONS
of the previous year
Return on net sale 0.34% in comparison with 9.19% in the same period of the
previous year
Status of CASH at the end of period PLN 28 773 k – increase by 52.19% yoy
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3. Evaluation of the market situation
Changes in the construction-assembly production, 2009-2010 yoy
ES-SYSTEMLIGHT IMPRESSIONS
Decreases in the construction – assembly production will determine construction industry results in the whole 2010
Seasonality in the sector deepened by severe winter
Economic crisis – slowdown in construction investments in the world
Construction – assembly production:
• decrease in January ‘10 in comparison with December ’09 by 68.9% and decrease in comparison with
January ‘09 by 15.3%
• increase in February ’10 in comparison with January ‘10 by 4.3% and decrease in comparison with
February ‘09 by 24.6%
• increase in March ’10 in comparison with February ’10 by 36.2% and decrease in comparison with
March ’09 by 10.8%
In the year 2009 9% fewer building permits were issued than in 2008
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4. 48 573
33 962
41 237
29 57120 000
30 000
40 000
50 000
ES-SYSTEM – weakening of sales rate decrease on a difficult investment
market
Revenues from sale of
products, goods and materials
(in PLN k)
175 433
-
15,1%
-
12,93
%
ES-SYSTEMLIGHT IMPRESSIONS
4
0
10 000
IV Q 09 I Q 10
Deep seasonality effect – „prolonged” winter
Remaining stagnation in the construction investment sector
Competitive struggle in the investment area and wholesale sale – price pressure
Sale in Q1 2010 in accordance with expectations, below results of 2009:
Domestic sale – stopping the decrease rate
Export sale lowers the Group’s result
Q4 ‘08 Q4 ‘09 Q1 ‘09 Q1 ‘10
5. ES-SYSTEM – domestic and export sale
-
7.2%
-
13.3
%
-
6.5%
Domestic sale
79.9%79.9%79.9%79.9% 75,3%75,3%75,3%75,3% 86.2%86.2%86.2%86.2%78.9%78.9%78.9%78.9% 76.7%76.7%76.7%76.7% 82.3%82.3%82.3%82.3%
ES-SYSTEMLIGHT IMPRESSIONS
-
34.0
%
-
44.7
%
+
12.8
%
Export sale
20.1%20.1%20.1%20.1% 24.7%24.7%24.7%24.7%
21.1%21.1%21.1%21.1% 13.8%13.8%13.8%13.8% 23.3%23.3%23.3%23.3% 17.6%17.6%17.6%17.6%
6. Sweden
12%
Great Britain
12%
Denmark
Other
33%
10 biggest export markets in Q1 2010
ES-SYSTEM S.A. – structure of export countries and business partners
ES-SYSTEMLIGHT IMPRESSIONS
Denmark
8%
Germany
7%
Spain
6%
Czech
6%
Italy
4%
Norway
4%
Hungary
4%
Bulgaria
4%
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Evening out sale level on key markets in order to minimize the impact of a collapse
of one of them on the Group’s export sale .
7. ES-SYSTEM – stopping the decrease of the sale dynamic in lighting
sectors (analysis for ES-SYSTEM S.A., comparison with the same period yoy)
architecturalindustrialoutdoor
-1%
-1%-12%
-7%-7%
Partially effect of accounting
and sales reorganization:
ES Wilkasy=> Branch Mazury
-8%
-2%
88% 70%
ES-SYSTEMLIGHT IMPRESSIONS
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Q1 ‘09 Q2 ‘09 Q3 ‘09 Q4 ‘09
-2%
88%
Q1 ‘10Q1 ‘10Q1 ’10
70%
Q1 ‘09 Q2 ‘09 Q3 ‘09 Q4 ‘09 Q1 ‘09 Q2 ‘09 Q3 ‘09 Q4 ‘09
8. 4 987
9.82%
11.78%
8.39%
8,00%
10,00%
12,00%
14,00%
3 000
4 000
5 000
ES-SYSTEM – operating result and return on operating profit: Q1 ‘09 – Q1 ‘10
Operating profit EBIT
Return on operating profit (in %)In PLN k
ES-SYSTEMLIGHT IMPRESSIONS
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3 335
4 987
21
348
0.06%
1.18%
0,00%
2,00%
4,00%
6,00%
0
1 000
2 000
IQ09 IIQ09 IIIQ09 IVQ09 IQ10
• Decrease of the operating profit by 89.6% - derivative of sales decrease and price pressure
• Increased share of low margin products in the sales portfolio
• Expenses control – decrease of sales and administrative expenses by almost 12%
3 460
9. 3 120
3 764
2 893
9.19% 8.89%
7,02%
2,00%
4,00%
6,00%
8,00%
10,00%
1 500
2 000
2 500
3 000
3 500
4 000
in PLN k
ES-SYSTEM – net profit
2 469
2 421
Net profit
Return on net profit (in %)
ES-SYSTEMLIGHT IMPRESSIONS
9
-757
101
-2,28%
0,34%
-4,00%
-2,00%
0,00%
2,00%
-1 000
-500
0
500
1 000
IQ09 IIQ09 IIIQ09 IVQ09 IQ10
2 421
• Derivative of the result of operating activities and lower profit from sale
• High comparative basis in Q1 2009 overvalued due to the positive result of financial activity
in the amount about PLN 900 k
10. Domestic and export markets in Q1 2010 and prospects for Q2Domestic and export markets in Q1 2010 and prospects for Q2Domestic and export markets in Q1 2010 and prospects for Q2Domestic and export markets in Q1 2010 and prospects for Q2
reorganization of sale forces, stimulation of sale in the wholesale channel
• consolidation of ES-SYSTEM position in the area of distribution sale (large wholesale chains)
• sale increase by 2,5% qoq, with market decrease 15-20% ⇒ increase of market share
diversification of clients
• reorganization of revenues from areas where stagnation or narrowing of the market occurs into growing segments
development of the offer of energy saving solutions (street lighting)
ES-SYSTEMLIGHT IMPRESSIONS
10101010
13,8%13,8%13,8%13,8%
Domestic market:
- anticipation in the area of large investments - office buildings
- under completion single investments from the are of shopping centers
- under completion small and very small investments (modernizations of school, local sport objects, local government offices)
- price pressure and search for the least expensive solutions (decrease of sale margin)
- good cooperation on the distribution market (increase of turnover in comparison with Q1 2009 and good prognosis for Q2)
- first significant sales in outdoor lighting segment should occur by the end of Q2
Export market:
- Planned increase of export sale based on collected and announced orders
11. ES-SYSTEM S.A. at the fair in Frankfurt
Stand among the largest European
manufacturers
Over 400 new potential clients
Recognizability of ES-SYSTEM brand
among clients from around the world
ES-SYSTEMLIGHT IMPRESSIONS
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among clients from around the world
Presentation of luminaires with LED –
in accordance with the newest trends
in lighting technology
12. Exemplary started investment – Shopping Center AGORA, Bytom
ES-SYSTEMLIGHT IMPRESSIONS
• Investor: Braaten+Pedersen Plus Partners
• Location: Bytom, in the block of Kwietniewskiego, Browarniana, Webera and Jainty streets
• Area: 25 000 m² of commercial area
• Investment value: EURO 90 M
• Value of ES-SYSTEM contract: PLN 1.8 M
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13. Exemplary started investment – Malta Office Park in PoznanMalta Office Park in PoznanMalta Office Park in PoznanMalta Office Park in Poznan
ES-SYSTEMLIGHT IMPRESSIONS
• Investor: Echo Investment
• Location: Poznan
• Object size: 6 class A buildings: four 5-storey and two 6-storey, office area for lease
• Value of the investment: completion by stages, current stage PLN 250 k
• Value of ES-SYSTEM contract: current stage PLN 250 k
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14. Exemplary finished investment – Commercial Cooperative „BAZAR” in Poznan„BAZAR” in Poznan„BAZAR” in Poznan„BAZAR” in Poznan
ES-SYSTEMLIGHT IMPRESSIONS
• Investor: Commercial Cooperative „BAZAR”
• Location: Dziadoszański Street in Poznan
• Range: furniture salons of various manufacturers for lease
• Value of ES-SYSTEM contract: PLN 200 k
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15. Exemplary finished investment – Mediateka „Centrum Start-Meta”, Warsaw
ES-SYSTEMLIGHT IMPRESSIONS
• Investor: District Bielany
• Location: Warsaw, Szegedynska Street
• Range: conversion of existing building into the youth center and municipal guards station
• Value of ES-SYSTEM contract: PLN 250 k
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16. Exemplary finished investment – Mazovia Gallery in PlockPlockPlockPlock
ES-SYSTEMLIGHT IMPRESSIONS
• Investor: Lewandpol Sp. z o.o.”
• Location: Plock, Wyszogrodzka Street
• Total area: 55 000 m²
• Value of ES-SYSTEM contract: PLN 1,4 M
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