Presentation of the ES-SYSTEM Capital Group's financial data for 1Q 2019

1. Presentation of the ES-SYSTEM Capital Group’s financial
data for the 1st quarter of the year 2019
Krakow, 23rd of May, 2019
Galeria Forum, Gdańsk

2. 1. MARKET ENVIRONMENT
2. FINANCIAL DATA
3. PROSPECTS
4. IMPORTANT EVENTS
5. SELECTED PROJECTS
6. PRESENTATION OF THE PROJECTS COMPLETED IN THE PREVIUOS QUARTERS

3. GOOD ECONOMIC TREND ON THE MARKET IN Q1 2019
 The dynamics of the construction and assembly market in Q1 of 2019 amounted to 9.4% y/y (in comparison with 26.1% in
Q1 2018)
 In the main segment of the Group’s activities – industrial and warehouse buildings – an increase by 3.9% was
recorded.
3
34,7
31,4
16,2
19,7
20,8
24,7
18,7
20,0
16,4
22,4
17,1
12,2
3,2
15,1
10,8
0
5
10
15
20
25
30
35
40
I 18 II 18 III 18 IV 18 V 18 VI 18 VII 18 VIII 18 IX 18 X 18 XI 18 XII 18 I 19 II 19 III 19
Dynamics of the construction and assembly market 2018-2019

4. A RECORD LEVEL OF REVENUES AND A SHARP RISE IN PROFITS
IN Q1 2019
PRZYCHODY NETTO
EBIT
EBITDA
ŚRODKI PIENIĘŻNE
ZYSK NETTO
51.8 million PLN – an increase by 24.2% y/y
in comparison with 41.7 million PLN in Q1 2018
2.8 million PLN – an increase by 1405.3% y/y
in comparison with 0.19 million PLN in Q1 2018
5.5 million PLN – an increase by 111.4% y/y
in comparison with 2.6 million PLN in Q1 2018
2.7 million PLN – an increase by 640.8% y/y
in comparison with 0.36 million PLN in Q1 2018
Status at the end of the period: 21.6 million PLN – a decrease by 23%
in comparison with 28.2 million PLN at the end od Q1 2018
4

5. A DOUBLE DIGIT INCREASE IN REVENUES ON THE DOMESTIC
AND EXPORT MARKETS
 The Group’s revenues amounted to 51.8 million PLN, which was an increase by 24.2% y/y
 Gross profit on total sales reached the value of 19.9 million PLN, which was an increase by 16.7% y/y
 The value of LED technology solution sales in Q1 2019 amounted to 42 million PLN, which was an increase
by 29% y/y and constituted 81.1% of total revenues from sales (in comparison with 78.1% in Q1 2018)
5
0
10
20
30
40
50
60
IQ17/18 IIQ17/18 IIIQ17/18 IVQ17/18 IQ18/19
41,1
51,1 43,8
53,7
41,7
41,7
49,7 51,1
49,3 51,8
+
24.2%
+
1.5%
-
2.8%
+
16.6%
-
8.3%

6. INCREASES IN THE ALL KEY SALES SEGMENTS ON THE DOMESTIC
MARKET WITH A SUPPORT OF ADVANCED LED SOLUTIONS
 In Q1 2019, the Group’s sales on the domestic market reached 40.4 million PLN, which was an increase
by 21.1% y/y.
 Sales increases in key market segments in Q1 2019:
 emergency lighting – an increase by 21.5% y/y
 industrial lighting – an increase by 34.6% y/y
 lighting control equipment – an increase by 158% y/y
 architectural lighting – an increase by 1% y/y
 outdoor lighting – an increase by 2.2% y/y
 Sales of luminaires with LED technology amounted to 32.2 million PLN, which was an increase by 25%
y/y.
 The Group’s share of LED technology solutions in total sales increased to 79.7% from 77.1% in Q1 2018.
6

7. DOUBLE-DIGIT INCREASE IN EXPORT SALES, SALES INCREASES
IN THE EUROPEAN UNION
 In Q1 2019, the Group’s export sales amounted to 11.4 million PLN, which was an increase by 36.5% y/y.
 Export sales constituted 21.9% of the Group’s sales in comparison with 20% in Q1 2018.
 The European Union, Asia and the Near East remain the key foreign markets.
 ES-SYSTEM denoted an increase of sales in the European Union countries by 46%, reaching 8.1 million PLN.
 Export sales in the key market segments in Q1 2019:
 outdoor lighting – an increase by 299% y/y
 emergency lighting – an increase by 63% y/y
 architectural lighting – a decrease by 10% y/y
 industrial lighting –a decrease by 16% y/y
 Sales of LED technology solutions amounted to 9.8 million PLN, which was an increase by 45% y/y.
 The share of LED product sales in the total export sales constituted 86.7% in comparison with
81.7% in Q1 2018.
8,1
1,8
0,6
0,9
The geographical structure of export sales in Q1 2019
(in million PLN)
Unia Europejska
Azja i Bliski Wschód
Pozostałe kraje
Europy
Pozostałe regiony
7
8.3
11.4
1Q
2018
2019
European Union
Asia and the
Near East
Other European
countries
Other regions

8. OPERATING RESULT INFLUENCED BY AN INCREASE IN REVENUES
AND A DECREASE IN COSTS
 In Q1 2019, the Group’s EBITDA amounted to 5.5 million PLN, which was an increase by 111.4% y/y.
 In Q1 2019, the Group’s EBIT amounted to 2.8 million PLN (in comparison with 0.2 million PLN in Q1 2018), which was an
increase by 1405.3% y/y.
 The profitability amounted to 5.4% (in comparison with 0.4% in Q1 2018).
 There was a decrease in operational costs by 1.2%, reaching 17 million PLN.
 The result on financial activity amounted to -0.05 million PLN, in comparison with 0.4 million PLN in Q1 2018.
 This was caused by the impairment write-off of inventories and costs of liquidation of goods and materials.
8
-2000
-1000
0
1000
2000
3000
4000
IQ18 IIQ18 IIIQ18 IVQ18 IQ19
598
3617
379
3072
187
187
3766
3027
-1392
2 812
2017 2018
EBIT IN 2018-2019 (in thousands of PLN)
+
4.1%
-
68.8%
+
698%
-
145.3
%
+
1405
%

9. IA SHARP INCREASE IN NET PROFIT
 In Q1 2019, the Group denoted a gross profit in the amount of 2.7 million PLN, which was an increase by 1038% y/y.
 In Q1 2019, the Group’s net profit amounted to 2.66 million PLN, in comparison with 0.36 million PLN in the same
period of the year 2018.
 The cash balance at the end of Q1 2019 amounted to 21.6 million PLN, which was a decrease by 23.3% y/y
 Among other factors, this is the result of lower operating cash flows due to an increase in short-term receivables by 8.1
million PLN, compared to the 8.3 million PLN decrease in the corresponding period in 2018 due to delays in the
completion of part of the projects at the turn of the year, and therefore relatively low revenues in the 4th quarter of
2018. 9
-1
-0,5
0
0,5
1
1,5
2
2,5
3
3,5
IQ18 IIQ18 IIIQ18 IVQ18 IQ19
0,7
3,3
0,7
2,2
0,4
0,4
3,5
2,6
-0,8
2,66
2017 2018
+
5%
-
136.4%
+
254.6%
ZYSK NETTO W 2018-2019 r. (w million PLN)
+
641%
-
50.9%
NET PROFIT IN 2018-2019 (in million PLN)

10.  The Group entered 2019 with a solid portfolio of projects awaiting completion in Poland and abroad
 Based on the results in the 1st quarter of 2019, the perspectives in the business, the amount of orders
and sales assumptions, the Management Board expects an increase in domestic sales by several percent
y/y and at least a few percent in export sales increases in the 2nd quarter of 2019.
 The Company is planning on the development of sales in all activity segments, particularly the following:
 in the architectural lighting segment: a modernization of the assortment of luminaires with
CIRCADIAN technology; further versions of the linear systems are currently being introduces, also
with extended emergency functions,
 in the lighting control segment: the development in this segment is the result of the growing
interest of investors in increasing the return on investment rate thanks to the use of these solutions.
PERSPECTIVES FOR SALES INCREASES IN THE NEXT QUARTER
10

11. On May 16th, 2019, the Ordinary General Assembly of Shareholders of ES-SYSTEM S.A. adopted a resolution
regarding the allocation of the profit generated by ES-SYSTEM S.A. in the amount of 4,629,800.69 PLN to the
reserve capital of the company, in accordance with the recommendation of the Management Board and the
opinion of the Supervisory Board of ES-SYSTEM S.A.
The implementation of the dividend payment policy from profits generated by the Company in future years
will be conditioned by the Management Board of ES-SYSTEM S.A. on satisfying the Company’s demand for
financial resources resulting from the implementation of ES-SYSTEM’s investment program.
 The CAPEX for the year 2019 is assumed in the amount of 8 million PLN.
DECISION ON THE ALLOCATION OF THE PROFIT FOR THE YEAR 2018
11

12.  Domestic projects:
 Media Education Center (Centrum Edukacji Medialnej) in Piaseczno
 The Contemporary Theater (Teatr Współczesny) in Wrocław
 Browar Municipal Cultural Center (Miejskie Centrum Kultury Browar) in Krakow
 Ogrodowa office building in Łodz
 Provincial Specialist Hospital (Wojewódzki Szpital Specjalistyczny) in Wrocław
 University Center of the Polish Naval Academy (Centrum Uniwersyteckie Akademii
Marynarki Wojennej) in Gdynia
 Jerry production plant in Nowa Sól
 PORTA logistics warehouse in Bolszewo near Nidzica
 Velux production plants in Namysłów and Gniezno
 Emergency lighting in the following office buildings:
• Police stations in Katowice and Żywiec
• MOGILSKA Office in Krakow
• Orion in Łodz
• Saturn, Sirius and Taurus in Warsaw
• Silesian University of Technology (Politechnika Śląska) in Gliwice
 Outdoor lighting:
• Mennica Legacy Tower office building in Warsaw
• Railway line no. 7 Otwock – Pilawa
• Court in Raciborz
• Waterworld of Poland in Mszczonów
• GAZ-SYSTEM office building in Pogórska Wola
• Plaza shopping center in Poznan
• The city gate (Brama Miasta) in the New Center of Łódź (Nowe Centrum
Łodzi)
SELECTED PROJECTS COMPLETED IN Q1 2019
 Export projects:
 Cemetery in Jerusalem, Israel
 Aljaied Factory, Misurata, Libya
 Next stage of SUN PLAZA shopping center in Bucharest, Romania
 Car park of the Roland Garros tennis complex in Paris, France
 Parking in Freising, Germany
 Emergency lighting in:
• Ministries Car Park, Kuwait
• Oregon Office in Bucharest
• London Empire House in London
• Energetika ČEPS, Brno, Czech Republic
12

13. PRESENTATION OF THE PROJECTS COMPLETED IN THE PREVIOUS QUARTERS

14. www.essystem.pl 14
Gdańsk, Poland
Lighting systems used: S4000 BIS LED, PACO, CAMELEON MAXI, CAMELEON MIDI
Mercedes AMG car showroom

15. www.essystem.pl 15
 Wrocław, Poland
 Lighting system used: 1000 pcs. of the S4000 linear system
Krakowska 29 office building

16. www.essystem.pl 16
 Gdańsk, Poland
Calypso Fitness Club

17. www.essystem.pl 17
 Gdańsk, Poland
Forum shopping center

18. www.essystem.pl 18
 Gdańsk, Poland
10-go lutego street

19. www.essystem.pl 19
 Kościerzyna, Poland
Old Brewery (Stary Browar Kościerzyna)

20. Thank you!