Presentation of the ES-SYSTEM Capital Group s financial data for the year 2017 Krakow, 29th of March, 2018

Transcription

1 Presentation of the ES-SYSTEM Capital Group s financial data for the year 2017 Krakow, 29th of March, 2018

2 1. Market environment 2. Financial data 3. Prospects of the year Selected projects

3 Economic trend on the domestic construction market The dynamics of the construction and assembly market (y/y) (in %) Thedynamicsoftheconstructionandassemblymarketin2017was12.1%highery/y(incomparisonwithadecrease by14.1%inthesameperiodof2016) despiteoftheincreasesonthedomesticconstructionmarketthedecreasesweredenotedinthemainsegments of the Group s activities: industrialbuildings adecreaseby11.9%y/y retailandservicefacilities adecreaseby6.4%y/y officebuildings adecreaseby28.4%y/y 3

4 The ES-SYSTEM Capital Group s financial data for the year 2017 PRZYCHODY NET REVENUES NETTO ZYSK NETTO million PLN an increase by 4.2% y/y In comparison with million PLN in million PLN an increase by 113.5% y/y In comparison with 3.3 million PLN in 2016 EBIT 7.7 million PLN an increase by 116.9% y/y In comparison with 3.5 million PLN in 2016 EBITDA 16.7 million PLN an increase by 39.5% y/y In comparison with 12 million PLN in 2016 ŚRODKI PIENIĘŻNE Cash and cash equivalents at the end of the period: 22.5 million PLN In comparison with 18.6 million PLN in

5 Increase of the Capital Group s revenues from sales - 1.3% 1.1% 20.5% - 2% Q1 2016/2017 Q2 2016/2017 Q3 2016/2017 Q4 2016/2017 Cumulativelyin2017,theGroupachievedrevenuesof189.7millionPLN,whichisanincreaseby4.2%y/y domesticsales 148.1millionPLN(anincreaseby1.5%y/y) exportsales 41.6millionPLN(anincreaseby14.9%y/y) Themarginontotalsalesin2017amountedto37.8%andwas0.8p.p.higherthaninthecorrespondingperiodof2016 The value of LED technology solution sales in 2017 amounted to 72.1% of total revenues from sales (versus 62.3% in 2016) Sales of LED solutions increased by 22% y/y Thegrossprofitonsalesin2017amountedto71.8millionPLNandwas4.5millionPLNhigher 6.6%y/y 5

6 An increase in domestic sales Inthe4 th quarterof2017,thegroup ssalesonthedomesticmarketreachedthelevelof43.2millionpln,whichwas adecreaseby3.2%y/y theresultofprojectsbeingdelayedto2018andahighcomparativebase Anincreaseofsalesby1.5%y/y,reaching148.1millionPLNin2017 Salesinkeymarketsegments: Architectural lighting Q % y/y 0.2% y/y Outdoor lighting -3.8% y/y 8.1% y/y Industrial lighting 19.1% y/y 5.5% y/y Emergency lighting -3.4% y/y -0.5% y/y Lighting control equipment 0.6% y/y 23.9% y/y Theshareofwholesaleinthe4thquarterof2017amounted41%ofthetotalsalesinthecountryandisat2.6p.p.lowery/y. Cumulatively,theshareofwholesalescustomersamounted36% 53.3millionPLN,adecreaseby8%. theresultofconcentrationontheinvestment/designmarket SalesofluminaireswithLEDtechnologyinQ4of2017constituted79%ofthetotalsalesonthedomesticmarket, incomparisonwith62%inq4of2016. Cumulatively,theGroupdenotedin2017anincreaseintheshareofLEDproductsinitsdomesticsalesto72.2%,from59.3% inthecorrespondingperiodof2016 anincreaseby23.4%y/y 6

7 Increase of export sales in the markets of the European Union, Asia and the Near East ,3 28,2 7,3 4,8 4,9 5,1 1,2 1,0 Obszar Unii Europejskiej Azja i Bliski Wschód Pozostałe kraje Europy Inthe4 th quarterof2017,thegroup sexportsalesamountedto10.5millionpln,whichwasanincrease by7.7%y/y Cumulatively,exportsalesamountedto41.6millionPLN anincreaseby14.9%y/y Exportsalesfor2017accountedfor21.9%oftheGroup stotalsales anincreaseby2.1p.p. Mainexportmarkets: StrengtheningthepositioninEuropeanUnion cumulatively,anincreaseby12%y/y Ameryka Południowa, Ameryka Północna, Afryka, Australia i Oceania oraz Daleki Wschód ThelargestcumulativepercentageincreasesdenotedinsalestoAsiaandtheNearEast anincreaseto7.3millionpln -52%y/y TheshareofLEDproductsalesinQ42017amounted67.7%incomparisonwith75.6%inQ42016 Cumulatively,theGroupdenotedadecreaseoftheshareofLEDproductexportsalesto71.6%from74.7%in2016 Byvalue,in2017LEDproductsaleswashigherby16%y/y 4Q Architectural lighting -13.6% y/y 14,9% y/y Outdoor lighting -4.3% y/y -18,1% y/y Industrial lighting -4% y/y 11,5% y/y Emergency lighting 33.5% y/y 10% y/y Lighting control equipment 81.2% y/y 1135% y/y 7 Salesinthekeysegments:

8 EBIT doubled profit and improved margins % 18.9% % 152% Q1 2016/2017 Q2 2016/2017 Q3 2016/2017 Q4 2016/2017 Cumulatively,afterQ4of2017,theGroup soperationalprofitamountedto7.7millionpln anincreaseby116.9%y/y theebitmarginamountedto4% at the end of 2017,incomparisonwith1.9%in2016 Cumulativelytheoperationalprofitincreasedby7.4%to65.3millionPLN employeesalaryandbenefitcostsandcommercialcommissioncostsates-systems.a. anincreaseto60.3millionpln,i.e.7.7%y/y costsofexternalservices anincreaseto17.6millionpln(by0.5millionplny/y) Theresultonotheroperatingactivitiesin2017cumulativelyamountedto1.1millionPLNcomparedtothelossof3.1millionPLN in 2016 creating2.6millionplnlessinprovisionsforreceivables releasingprovisionsforreceivablesates-systems.a.andreleasingactuarialreservesates-systemwilkasy Thelossonfinancialactivityamountedto 0.4millionPLN(0.7millionPLNlowerincomparisonwith2016) theeffect of negative exchange rates 8

9 A sharp rise in net profit % 12 % % 254. % Q1 2016/2017 Q2 2016/2017 Q3 2016/2017 Q4 2016/2017 Cumulatively,theGrouprecordedanetprofitintheamountof7millionPLNin2017comparedto3.3millionPLN in2016(anincreaseby113.5%y/y) Netprofitprofitabilityamountedto3.7%comparedto1.8%inthesameperiodof

10 Prospects for further growth in 2018 Based on the results from Q4 2017, the prospects in the industry and the amount of orders on the domestic market, which was 18% higher y/y, Q should bring an improvement in domestic sales On the domestic market, the Company plans to introduce new office, exhibition, hotel/apartment lighting systems in the architectural lighting segment In the industrial lighting segment, ES-SYSTEM plans to introduce new optical systems and LED modules In the lighting control segment, the Company will begin smart lighting production and sales, the conceptual and implementation work for which had been initiated in 2017 The Company began this year with a 9% y/y order portfolio, which makes a lower sales result in Q likely in comparison to the corresponding period in 2017 At the same time, the number of projects under development on different markets is growing, which bodes well for sales throughout 2018, which may close with a larger value than in 2017 Thanks to the activities of ES-SYSTEM UK Ltd., the first major projects in Great Britain are expected to be completed soon. In 2018, Management plans further sales growth on the existing export markets Strengthening the Company s position on foreign markets will be implemented based on the development of business contacts andthe sales representative network, as well as through participation in selected industry events Investment expenditures planned for 2017 in the amount of 9 million PLN have been carried out The CAPEX for 2018 is assumed at a comparative level to the previous year 10

11 Examples of completed projects Domestic projects: Metropoliashopping mall Gdansk Office buildings PWC IBC, Equator, Wronia Warsaw Integrated Communication Center Bialystok Paged S.A. production halls Pisz Animexfactory Morliny Winkelmann production halls Legnica Whirpoolproduction facility Wroclaw OBI logistics center Łódź ENA, mbank iceri office buildings Łódź MALTA Office Park Poznan Adam Mickiewicz University Poznan Medical Simulation Center (1st stage) and Zembala Collegium Poznan Radwagoffice and production building Radom Żywiecbrewery Hebe store chain YS Poland factory Zabrze Bogdankamine, mining lighting Łęczna The U. Ledóchowskahigh school Warsaw HANKA dormitory Poznan Center of Culture Heritage Pruszkow Export projects: Europa Passage shopping mall Hamburg, Germany CI Tower office building London, Great Britain Canadian Embassy Paris, France Sports center Liepāja, Latvia Allianz OperasyonMerkezi Izmir, Turkey Equestrian Arena tennis courts Athens, Greece Health Care Centers, continuation Nikšić, Andrijevica, Kolašin, Montenegro Frottanawarehouse hall Varnsdorf, Czech Republic Gestampproduction hall Žatec, Czech Republic UPOL Faculty of Physical Culture Olomouc, Czech Republic 11

12 ES-SYSTEM among the elite at LIGHT BUILDING 2018 exhibitors as the only company from Poland ES-SYSTEM took part in Light Building the largest international lighting and construction fair (18 th -23 th March, 2018) in Frankfurt, Germany During the fair, ES-SYSTEM presented: Products equipped with CIRCADIAN technology, in accordance with the idea of Human Centric Lighting Intelligent Lighting Control Systems for active lighting management The Light Building fair gathers the largest international companies in the lighting industry. Participation in the fair should translate into the company s further dynamic growth on foreign markets. 12

13 ES-SYSTEM LIGHTING UK LTD Foreign expansion is an important element for ES-SYSTEM s development On 11 th April, 2017, ES-SYSTEM S.A. registered the subsidiary ES-SYSTEM LIGHTING UK LTD with its seat in Harrow, London The company operates in the field of sales representation with the intention acquire customers from the British market Thanks to the activities of ES-SYSTEM UK Ltd., the first major projects are expected to be completed in Great Britain. 13

14 Thank you for your attention!