The document provides financial data and analysis for ES-SYSTEM Capital Group for the first half of 2017. It discusses: - Revenues increased 11% to 92.2 million PLN, with net profit reaching 4.1 million PLN compared to a loss last year. - Domestic sales grew with increases in all key market segments, led by architectural, outdoor, and lighting control equipment. - Export sales increased 29.3% to 23.2 million PLN, with the largest growth in the European Union and Asia/Middle East. - Profits increased as expected, with EBIT reaching 4.2 million PLN compared to a loss last year, driven by revenue growth.

1. Financial data for the 1st half of 2017

2. 1. Market environment
2. Financial data
3. Prospects for the next quarters
4. Selected projects

3. A DOMESTIC BULL MARKET, GROWTH IN ALL KEY
MARKET SEGMENTS
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 Dynamics of the construction and assembly output January-June 2017: increase by 7.6% yoy (in comparison with
a decrease by 11.9% yoy)
Increases in all sectors of construction market
 In June 2017 an increase by 11.6% yoy (in comparison with a decrease by 13% in 2016 yoy) and an increase by
11.6% in comparison with May 2017
-8,6
-10,5 -15,8
-14,8 -13,7
-13,0 -18,8
-20,5
-15,3
-20,1
-12,8 -8,0
2,1
-5,4
17,2
4,3
8,4
11,6
-25
-20
-15
-10
-5
0
5
10
15
20
I II III IV V VI VII VIII IX X XI XII
Dynamics of the construction and assembly output (y/y),
2015-2017 (in %)
2016/2015
2017/2016

4. The ES-SYSTEM Capital Group’s financial data for the
1st half of 2017
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NET REVENUES
NET PROFIT
EBIT
CASH BALANCE
EBITDA
92.2 million PLN - increase by 11% yoy
In comparition with 83.1 mln PLN in I half of 2016
4.1 million PLN - increase by 1876.7% yoy
In comparition with loss 0.2 mln PLN in I half of 2016
4.2 million PLN - increase by 612.9% yoy
In comparition with loss 0.8 mln PLN in I half of 2016
8.6 million PLN - increase by 149.8% yoy
In comparition with 3.5 mln PLN in I half of 2016
Cash and cash equivalents at the end of the period:
16.2 million PLN – decrease by 37.8% yoy
In comparition with 26.1 mln PLN at the end of I half of 2016

5. 37 423
44 801
50 184 51 751
40 640 42 424
40 640
42 424
44 662
54 405
41 083
51 114
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
40 000
45 000
50 000
55 000
I Q 15/16 II Q 15/16 III Q 15/16 IV Q 15/16 I Q 16/17 II Q 16/17
A SHARP, DOUBLE-DIGIT INCREASE IN REVENUE
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-
11%
+
8.6%
-
5.3%
 In six months of 2017, there was an increase in revenues by 11% yoy. The result of increases in domestic (by 4 mln
PLN) and export (by 6 mln PLN) sales.
 The margin on total sales expressed in % amounted to 37.7% in the 1st half of 2017 and was higher than in the
corresponding period of 2016 by 0.9 p.p.
 A continued significant increase in LED lighting sales was denoted in the profits compared to last year (a share of
68.7% in the 1st half of 2017 in comparison with a share of 59.7% yoy).
 Gross profit on sales amounted to 34.7 million PLN – an increase by 4.2 mln PLN and 13.6% yoy.
 Margin on LED sales amounted to 19 mln PLN, profitability level 30.3%
+
5,1%
+
1,1%
+
20,5%

6. A DOMESTIC BULL MARKET, GROWTH IN ALL KEY
MARKET SEGMENTS
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 In 2nd quarter of 2017, the Group’s sales on the domestic market were at the level 39 million PLN, which was an
increase by 15.8% yoy. In the 1st half of 2017 increase by 6% to 65 mln PLN
consequence of the good situation in the construction industry and the result of completing some key projects
 Sales in the key segments of the markets in 2nd quarter 2017 (1st half of 2017):
architectural lighting – an increase by 22.7% yoy (an increase by 4.9% yoy )
outdoor lighting – an increase by 40% yoy (an increase by 21.5% yoy )
industrial lighting – a decrease by 1.3% yoy (an increase by 2.2% yoy )
Emergency lighting – an increase by 7.4% yoy (an increase by 7.9% yoy )
Lighting control equipment – an increase by 55.5% yoy (an increase by 18.8% yoy )
 The share of wholesale customers in the 2nd quarter of 2017 amounted to 30% of total sales in the country and is
at 8 pp. lower yoy. Cumulatively the share of wholesale customers amounted 34% - a decrease by 14%.
 Sales of luminaires with LED technology in Q2 of 2017 constituted 69% of the total sales on the domestic market,
in comparison with 57% in Q2 of 2016.
 Cumulatively, the Group denoted an increase in the share of LED products in its domestic sales to 67.7% from 56%
in the corresponding period of the previous year. Increase by 28% yoy.

7. ES-SYSTEM STRENGTHENS ITS POSITION IN EUROPE
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In 2nd quarter of 2017, the Group’s export sales amounted to 12.1 million PLN, which was 38.3% increase yoy.
Cumulatively export sales amounted 23.2 mon PLN – an increase by 29.3% yoy.
Export sales in the 1st half of this year accounted for 25.1% of total sales, whereas in the corresponding period in 2016, it
accounted for 21.6%.
Main export markets:
 Strengthening the position in the European Union – 10% increase in the 1st half of 2017 y/y
 The largest percentage increase- 88% y/y was recorded in sales to Asia and the Middle East (increase by 2.9 million PLN
LED sales increased in the 2nd quarter of the 2017 by 43% yoy and the share of LED luminaires in the export sales slightly
decreased to the level of 71% in comparison with 74% in the analogical period of 2016.
The percentage share of LED product sales in the export department decreased in the 1st half of to 72% from 74% in the
corresponding period in 2016, whereas the value of LED product sales abroad increased by 35% y/y, reaching 16.7 million PLN.
Sales in the key segments of the markets in 2nd quarter 2017 (1st half of 2017):
architectural lighting – an increase by 44% yoy (an increase by 27% yoy )
 outdoor lighting – an increase by 18% yoy (a decrease by 16% yoy )
 industrial lighting – an increase by 14% yoy (an increase by 45% yoy )
 emergency lighting – a decrease by 20% yoy (a decrease by 13% yoy )

8. -767
2 967
4 793
2 905
-1 150
328
-1 150
328
1 773
2 583
598
3 617
-1 000
-500
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
4 500
5 000
I Q 15/16 II Q 15/16 III Q 15/16 IV Q 15/16 I Q 16/17 II Q 16/17
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 In the 1st half of 2017, the Group’s operational profit amounted to PLN 4.2 million, in comparition with PLN 0.8 million
yoy:
 The EBIT margin at the end of Jun 2017 amounted to 4.6%, compared to -1% in H1 of 2016
 Operating costs increased by 4.2%, to the amount of PLN 30.9 million :
 management costs stayed at the level PLN 10.5 million, increase by 2.5%. y/y
 increase: sales costs by PLN 1 mln and payroll costs by PLN 1.4 mln
 decrease: costs of external services by PLN 0.2 million and other costs by PLN 0.2 million
 The loss on financial activity in the discussed period amounted to 0.25 million PLN, in comparition to 0,23 million PLN y/y,
an effect of negative exchange rates.
 Positive result on remaining operating activity in the amount of PLN 0.4 million compared to the PLN 1.7 million loss in the
1st half of 2016,
-
50%
-
89%
PROFITS INCREASE AS EXPECTED
-
63%
-
11%
+
152%
+
1003,8%

9. -514
3 013
4 498
1 417
-473
244
-473
244
1 515
2 003
730
3 323
-1 000
-500
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
4 500
5 000
I Q15/16 II Q15/16 III Q15/16 IV Q15/16 I Q16/17 II Q16/17
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+
8.1%
-
91.9%
PROFITS INCREASE
-
66.3%
+
41,4%
+
254,6 %
+
1760,1 %
 Cumulatively, the Group recorded a net profit in the amount of 4.1 million PLN in the 1st half of this year
compared to the loss in the amount of 0.23 million PLN in the corresponding period in 2016.

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 On April 11, 2017, the subsidiary under the name ES-SYSTEM LIGHTING UK LTD (the Company) with its registered office in
Harrow, London has been registered
 The Company will operate in the field of commercial representation of ES-SYSTEM S.A. with the objective of acquiring
customers for the ES-SYSTEM S.A. on the British market,
 Wherein depending on the dynamics of the development of this market and legal conditions associated with
functioning on it, this business model may be subject to change.
 On May 11, 2017, The Ordinary General Assembly of Shareholders of ES-SYSTEM S.A. with its seat in Krakow resolves to
appropriate the profit for the business year 2016 in the amount of PLN 3 776 884.95 for reserve capital.
 ES-SYSTEM will continue the investment plan launched in 2016
 The total value of planned investments in 2017 amounts to PLN 9 million and mainly concerns outlays for machinery
and equipment in production plants.
 In 2016 the company spent PLN 6 million on investments.
 On May 23 and July 7, 2017 Kancelaria Porad Finansowo-Księgowych dr Piotr Rojek Sp. z o.o., with its seat in Katowice, has
been selected for the purpose of auditing semi-annual and annual financial statements for the years 2017 and 2018 of all
companies of ES-SYSTEM Capital Group and consolidated statement for the year 2017 and 2018.
Important events

11. www.essystem.pl 11
GOOD SITUATION ON THE DOMESTIC MARKET AND
PROSPECTS FOR SALES RESULT IMPROVEMENT
 Based on the results from the 1st half of 2017, the industry outlook, the order portfolio and sales assumptions, the
Management Board hopes to several percent of growth in domestic sales in the 3rd quarter of 2017 compared to the
3rd quarter of 2016.
 After a period of sharp increases in foreign sales in the 1st half of this year, the Management Board is anticipating
stabilization in sales in the 3rd quarter of 2017.
 The 4th quarter of 2017 holds our planned participation in the Light Middle East fair in Dubai and in one of the most
important lighting conferences in the world, i.e. PLDC in Paris. The new company ES-SYSTEM Lighting UK Ltd will be
among the participants of the LUXLIVE 2017 fair in London, which will be attended by key architects and lighting
designers from all over the world.

12. Examples of projects completed in 2nd quarter 2017
Domestic projects:
 Most Śląsko-Dąbrowski – Warszawa
 Budynek biurowy MON – Warszawa
 Modernizacja Galerii Handlowej Targówek –
Warszawa
 Biurowiec Pryzmaty – Warszawa
 CH Arkadia – Warszawa
 Galeria Wroclavia – Wrocław
 Instytut Fizyki UJ – Kraków
 Centrum biurowo-konferencyjnego Nowa Formiernia
– Łódź
 Fabryka mebli Forte, hale produkcyjne i biura, etap II
– Suwałki
 Biurowce A4 Business Park – Katowice
 Oświetlenie uliczne – Szczecin
 Oświetlenie górnicze w kopalni Bogdanka – Łęczna
 Modernizacja LED hali Kronopol – Żary
 Zakłady BMZ – Gliwice
 Zakład produkcyjny Bell - Józefów
 Centrum Symulacji Medycznych UWM – Olsztyn
 Hotel Asystent – Kielce
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Export projects:
 Al Khorayef Tower w Al Khobar - Arabia Saudyjska
 Centrum handlowe Sun Plaza w Bukareszcie –
Rumunia
 Hala lodowa Rumbulas Sporta Centrs w Rydze –
Estonia
 New hospital Chirec Delta w Brukseli – Belgia
 Biurowiec Goncelin w Marsylii – Francja
 Magazyny Gruppo Lillo w Rzymie, Włochy

13. Thank you!