2. 2
Light impressions
1. Market environment
2. Financial data
3. Prospects of the next quarters
4. Important events to the date of publication
energyenergy savingsaving
4. Important events to the date of publication
3. 3
Light impressionsThe lighting sector in comparison to the construction market
energyenergy savingsaving
Dynamics of the construction and assembly output – January-March, yoy (+10,6%):
Increases in the areas of: commercial and service buildings (24.5%), public utility buildings (12.0%), office
buildings (7,0%), road construction(5,7%), sports and leisure (7,5%).
An increase in the sales of leading operators in the wholesale market by about. 15%.
The Lighting sector at the level of the year 2013.
4. 4
Light impressionsES-SYSTEM Capital Group – financial data I Q 2014 roku
PLN 33.89 M - decrease 0,8% yoy
PLN -0.126 M v. -0.212 M
PLN -0.233 M v. -0.429 M
PLN 1.8 M – increase by 15.1% yoy
NET REVENUES
NET PROFIT
EBIT
EBITDA
energyenergy savingsaving
PLN 1.8 M – increase by 15.1% yoy
at the end of the period: PLN 25.7 M – increase by 54% yoyStatus of CASH
5. 5
Light impressions
34 485
38 073
43 769
52 996
34 16534 779
36 197
42 010
53 431
33 89715 000
20 000
25 000
30 000
35 000
40 000
45 000
50 000
55 000
Sales as expected, seasonality
-
4,93%+
0,85%
-
4,02%
+
0,8%
-
0,8%
energyenergy savingsaving
36 197
0
5 000
10 000
15 000
I Q 12/13 II Q 12/13 III Q 12/13 IV Q 12/13 I Q 13/14
Revenues at the level PLN 33.9 mln what is a decrease by 0.8% yoy
For comparability of results the value of domestic sales in the first quarter of 2013 was reduced
by the value of cash bonus in the amount of 0.6 million
Gross profit on sale amounted PLN 12.7 M, which is an increase by 1.1% yoy
Margin (in %) on total sale in 2014 r. was higher in comparison to the year 2013 r.:
37.6%, increase by 0.7 p.p. yoy
6. 6
Light impressions
Increase of domestic sales - according to plan
In IQ 2014 the Group’s sale in the domestic market was at the level of PLN 27,9 M, which is a
increase by 2% yoy – comparable market share.
The Group’s domestic sales in segments:
An increase by 12% yoy in the architectural lighting segment, a decrease in the industrial lighting by
2%, a decrease in outdoor lighting by 18% (delays of street lighting modernization projects funded by
the NFOŚ SOWA program).
energyenergy savingsaving
Sales to the wholesale channel constitues 45% of the total sales.
21% increase in the emergency lighting sector – the result of new implementations, mainly LED
products, as well as obtained certificates.
Sales of luminaires with LED technology constitutes 21% of the total sales, in comparison with
13% in 2013 roku.
7. 7
Light impressions
Export sales under the pressure of recession in the EU,
political uncertainty in the East of Europe
energyenergy savingsaving
In Q1, the Group’s export sales came in at the level of PLN 6 M, which presents a decrease by 12% yoy.
Sweden, Russia and Austria remain the Group’s main export markets
More than three-fold increase in revenues in Austria
Lower than expected results in Italy, Germany and Sweden
The share of LED luminaires in export sales denoted an increase by 80%, to 28% in Q1 2014 .
Since the end of the Q1 the quantity and value of offers prepared for customers in Austria, Germany, Israel and
the Arab countries are increasing.
8. 8
Light impressions
Profits under the pressure of seasonality, better prospects
-615
705 649
4 857
-429-429
1 107
2 409
1 592
-233
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
4 500
+
57,02%
+
271,19
%
-
67,2%
energyenergy savingsaving
-615 -429-429
-233
-1 000
-500
I Q 12/13 II Q 12/13 III Q 12/13 IV Q 12/13 I Q 13/14
In QI 2014 r. Group’s operational profit amounted PLN-0,2 M, compared to loss PLN 0,43 M.
This was caused by the following :
seasonality of sales
Increase in operating costs by PLN 0,8 M (cost of sales by PLN 0,2 M, general and administrative
expenses by PLN 0,6 M)
expenses connected with the transfer of production from Rzeszów to Wilkasy
Balance of other incomes and opereting expenses has positive effect on operating profit. The result of the
sale of fixed assets.
Financial activity in Q1 resulted in improvement of gross profit by PLN 0,1 M, compared to PLN 0,2 mln zł
r/r.
9. 9
Light impressions
Net profit – the result of seasonality of sales
581 410
4 085
1 259
2 088
1 323
0
500
1 000
1 500
2 000
2 500
+
116,70
%
+
409,3
%
-
67,6%
energyenergy savingsaving
-758
-212-212 -126
-1000
-500
0
I Q 12/13 II Q12/13 III Q12/13 IV Q12/13 I Q13/14
First quarter of the year the Group has completed with a net loss PLN 0,1 M v. PLN 0,2 M yoy.
10. 10
Light impressionsES-SYSTEM – domestic sale prospect
New implementation of LED solutions:
further sales growth in LED lighting is expacted (including other systems such as downlights, ceiling
fixtures, lighting lines, rail lights)
In accordance with the strategy emphasis on offering technologically advanced solutions will be
increased. (enriched with elements of control systems in internal and external lighting
It is expacted that the rate of LED lighting’s increase in the total domestic sale remain at the current level
Considering the level of orders from the domestic market and sales forecasts, the Management Board
hopes to achieve a single-digit sales growth in Q2 2014 in comparison with the result of Q2 2013 and Q1
energyenergy savingsaving
hopes to achieve a single-digit sales growth in Q2 2014 in comparison with the result of Q2 2013 and Q1
2014
11. 11
Light impressionsES-SYSTEM – prospects of export sale
From the beginning of Q2 of the current year increased the value of contracts, which is a good
forecast for export sales in the coming quarters.
ES-SYSTEM’s participation in the fair Light&Building 2014 in Frankfurt resulted in inquiries, offers and
orders mainly for LED lighting, mainly from the Arab countries, Norway and Portugal. Completion of
majority of these projects is planned for Q3 and Q4 of 2014.
Region EAST: Participation in the next edition of the Office Next contest is planned for May, where will
be presented the latest solutions for office lighting. Also provided are emergency lighting systems and
light lines to the newly opened points of several store chains
o In Q2 and Q3 of the current year will be completed shopping center projects in Kaliningrad and
Kazan, FORD car showroom and Moscow City Telecom.
energyenergy savingsaving
Kazan, FORD car showroom and Moscow City Telecom.
o Intensification the Company’s presence in Belarus, where were delivered lighting systems to the
international airport in Minsk.
o In the Baltic states revival is observed, projects which completion was previously suspended are
being completed.
• Region SOUTH: Carried out are projects of modernization of street lighting in Slovakia and the Czech
Republic. In the Czech Republic and Slovakia three big projects of street and park lighting
modernization have been planned for Q3 of the current year.
12. 12
Light impressionsES-SYSTEM – prospects of export sale
Region Center: Since the end of Q1 2014 has been increasing the quantity and value of tenders
prepared for customers in Austria (where mainly will be completed large industrial projects). In Q2 of
the current year is planned intensification of contacts with new companies with whom contact was
established during the fair in Frankfurt.
Regionie WEST: Luminaires based on LED technology are becoming more and more popular. The
completion of most projects offered in Q1 is likely to be executed in Q4 2014.
Regionie OVEC: A clear improvement in this market was recorded in April of the current year..
• New partners in Saudi Arabia and Israel were co-opted
• An increase in sales in Uruguay took place (0.7% share in Q1 2013 in comparison with 1.3% in Q1
energyenergy savingsaving
• An increase in sales in Uruguay took place (0.7% share in Q1 2013 in comparison with 1.3% in Q1
2014
• The revival is also visible on the Swedish market
• Starting wholesale in Norway and execution of orders from the Turkish market for about PLN 0.5
M, among others, for the illumination of the Hilton Hotel in Trabzon (LED lighting) is planned for
Q2 2014.
13. 13
Light impressionsSignificant events to the date of publication
The end of the process of merger ES-SYSTEM Wilkasy an ES-SYSTEM Rzeszów and relocation
of production to the plant in Wilkasy.
Court ruling on a case claimed by Beghelli SpA.
The decision of the General Meeting of 8 May 2014 on the dividend payment:
• The total amount of the dividend: PLN 2,143,181.85
• Value of the dividend per share PLN 0,05
• Dividend date: 1st Julay 2014
• Dividend payment date: 15th Julay 2014
energyenergy savingsaving
• Dividend payment date: 15th Julay 2014
Selection of the Kancelaria Porad Finansowo-Księgowych Dr Piotr Rojek Sp. z o.o. for the
purpose of auditing financial statements.
Participation in the fairs Light&Building in Frankfurt.
19. 19
Light impressionsES-SYSTEM at the fair Light & Building in Frankfurt
20122012 20142014
196 000
1 000
155 000
800
Number of visitors at the fair
Number of visitors to the stand
Number of established business contacts
energyenergy savingsaving
500 350Number of established business contacts