ES-SYSTEM Presentation of data for Q1 2017

Information about ES-SYSTEM Presentation of data for Q1 2017

Published on September 13, 2017

Author: ES-SYSTEM

Source: slideshare.net

Content

1. Financial data for the 1st quarter of 2017

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

3. The construction market in the 1st quarter of 2017 www.essystem.pl 3  Dynamics of the construction and assembly output January-March 2017: increase by 3.9% yoy (in comparison with a decrease by 13.3% yoy) Increases in all sectors of construction market  In March 2017 an increase by 17.2% yoy and an increase by 49,4% in comparison with February 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 -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 quarter of 2017 www.essystem.pl 4 NET REVENUES NET PROFIT EBIT CASH BALANCE EBITDA 41.1 million PLN - increase by 1.1% yoy 0.7 million PLN - increase by 254.6% yoy 0.6 million PLN - increase by 152% yoy 2.8 million PLN - increase by 182.1% yoy Cash and cash equivalents at the end of the period: 21 million PLN – decrease by 21% yoy

5. 37 423 44 801 50 184 51 751 40 64040 640 42 424 44 662 54 405 41 083 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 The beginning of the year with increased revenue www.essystem.pl 5 - 11% + 8.6% - 5.3%  In the three months of 2017, there was an increase in revenues by 1.1% yoy. The result of increases in export sales.  The margin on total sales expressed in % amounted to 37.9% in the 1st quarter of 2017 and was higher than in the corresponding period of 2016 by 1.5 p.p. An increase by 0.8 mln PLN.  A continued significant increase in LED lighting sales was denoted in the profits compared to last year (a share of 67.5% in the first quarter in comparison with a share of 59% yoy).  Gross profit on sales amounted to 0.4 million PLN – an increase by 133.6% yoy. (In the 1st quarter of 2016 loss in the amount of 1.1 million PLN  Mmargin on LED sales higher by 1.3 mln PLN (an increase by 20% yoy) and amounted to 8.2 mln PLN + 5,1% + 1,1%

6. Domestic sales influenced by seasonality on the market, LEDs increase www.essystem.pl 6  In 1st quarter of 2017, the Group’s sales on the domestic market were at the level 30 million PLN, which was a decrease by 4.6% yoy.  This is the result of the the seasonal character of the beginning of the year as well as the acceleration of a part of the investments to the 4th quarter of 2016  Sales in the key segments of the markets in 1st quarter 2017:  Industrial lighting – an increase by 6% yoy  Emergency lighting - an increase by 8.6% yoy  Architectural lighting – a decrease by 13.3% yoy  Outdoor lighting – a decrease by 0.9% yoy  The change in the classification of products influences the results in the architectural and industrial lighting sectors  The share of wholesale customers in the 1st quarter of 2017 amounted to 38.5% of total sales in the country and is at 5.4 pp. lower yoy  Sales of luminaires with LED technology constituted 65.5% of the total sales on the domestic market, in comparison with 54.9% in Q1 of 2016. Dynamics of LED sales growth in Poland amounted to 14% yoy

7. Trend of increase in export sales www.essystem.pl 7 In 1st quarter of 2017, the Group’s export sales amounted to 11 million PLN, which was 20.7% increase yoy. main export increases occurred on the following markets: UAE (by 1.7 million PLN, 3539% increase yoy), Croatia (by 0.9 million PLN, 1393% increase yoy), Switzerland (by 0.5 million PLN, 144% increase yoy and Austria (0.5 million PLN, 94% increase yoy). LED sales increased in the 1st quarter of the year by 27% yoy and the share of LED luminaires in the export sales slightly decreased to the level of 72,9% in comparison with 74.3% in the analogical period of 2016. 9,1 11,0 1Q 2016 2017 Zjednoczone Emiraty Arabskie 16,6% Austria 8,9% Chorwacja 8,8% Szwajcaria 7,9% Francja 6,4% Niemcy 6,0% Belgia 5,7% Rumunia 4,0% Republika Indii 4,0% Portugalia 2,8% Pozostali 28,8%

8. -767 2 967 4 793 2 905 -1 150-1 150 328 1 773 2 583 598 -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 www.essystem.pl 8  In the 1st quarter of 2017, the Group’s operational profit amounted to 0.6 million PLN, which was 152% increase yoy:  The EBIT margin at the end of March 2017 amounted to 1.5%, compared to -2.8% in Q1 of 2016  This was a result of the positive result on remaining operating activity in the amount of 92,000 PLN compared to the 1.04 million PLN loss in the 1st quarter of 2016, which was the result of one-off events.  Operating costs increased to the amount of 15.1 million PLN:  Management costs stayed at the same level y/y, i.e. 5.2 million PLN.  Sales costs amounted to 9.9 million PLN, i.e. a 2% increase y/y, a result of increased employment at ES-SYSTEM S.A.  The loss on financial activity in the discussed period amounted to 0.23 million PLN, i.e. 661% less y/y, an effect of negative exchange rates. - 50% - 89% Profits influanced by higher margin and no one-off events - 63% - 11% + 152%

9. -514 3 013 4 498 1 417 -473-473 244 1 515 2 003 730 -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 www.essystem.pl 9 + 8.1% - 91.9% Net profit - 66.3% + 41,4% + 254,6 %

10. www.essystem.pl 10  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. Important events

11. www.essystem.pl 11 Further growth and diversification of exports  Taking into account the current market situation in Poland and abroad and the current portfolio of orders, the Management Board views positively the level of sales realized in the 1st quarter of this year, as a good prognosis for the coming months of 2017  Based on the results from the 1st quarter of 2017, the order portfolio and sales assumptions, the Management Board hopes to repeat the domestic sales result in the 1st half of 2017 compared to that of the 1st half of 2016.  The domestic sales order portfolio is at a similar level as in the corresponding period of the previous year  Based on the order portfolio, the Group expects international sales to continue to grow in the coming quarters of 2017, primarily on the European markets and in key financial and trading centers.  It is planned to participate in fairs in Dubai and Paris in 2017

12. Examples of projects completed in 1st quarter 2017 Domestic projects: • Wroclavia, kompleks handlowo- biurowy – Wrocław • Biurowiec, III etap – ul. Francuska, Katowice • Ryanair, hala magazynowa – Wrocław • Centrum Dziedzictwa Kulturowego – Pruszków • Centrum Mikrochirurgii Oka – Warszawa • Fabryka Wawel – Dobczyce • Modernizacja CH KAROLINKA – Opole www.essystem.pl 12 Export projects: • Admiral Arena Prater, bar sportowy – Wiedeń, Austria • Osiedle Willowe – Zjednoczone Emiraty Arabskie • Admiral Casino – Zagrzeb, Chorwacja • Siedziba telewizji WTVision – Lizbona, Portugalia • Velodrome, stadion – Marsylia, Francja

13. Thank you!

Related presentations


Other presentations created by ES-SYSTEM