ES-SYSTEM

ES-SYSTEM
Warsaw, May 14, 2012
Press Release
FINANCIAL RESULTS OF THE ES-SYSTEM GROUP FOR Q1 2012
STABILIZATION OF SALES DESPITE WORSENING OF ECONOMIC SITUATION IN THE SECTOR
Item Item description (values in PLN k)
Q1 2012
1.
Revenues from sales of products, goods and materials
2.
Operating profit (EBIT)
3.
Return on profit EBIT
4.
5.
6.
Return on net sales (profit)
Q1 2011
Change 2012
to 2011
34 485
33 776
2.1%
-615
1 394
-144.12%
-
4.13%
EBITDA
1 346
3 060
-56.01%
Net profit
-758
1079
-170.25%
-
3.19%
Revenues from sales of the ES-SYSTEM Capital Group after Q1 2012 amounted to PLN 34.5M and were
higher by 2.1% than revenues in the same period of the previous year, mainly due to stable domestic sale.
Gross profit amounted to PLN 12.6M and remained at a level of Q1 2011.
STABLE DOMESTIC SALE
In Q1 of the current year the domestic sales increased by 3.6% yoy to a level PLN 27.1M. For comparison,
according to the Company’s estimations the lighting market in the discussed period showed slight increase up
to 2% yoy. Good cooperation with wholesale recipients and intensification of activities in the area of promoting
energy saving lighting solutions strengthen the Group’s position on the market. However, sustaining price
pressure limits the potential of the sale’s increase.
More important projects in Poland of the ES-SYSTEM Capital Group in Q1 2012:
•
•
•
•
•
•
Exposition and congress center of the Gdansk International Fair Centrum – Amber Expo
Railway stations Warszawa Wschodnia and Warszawa Stadion
Promenade EPSILON – Wroclaw
Wojdyła Busines Park – Wroclaw
National Road S8, I stage
Center of New Technologies of the Silesian University of Technology Politechniki
EXPORT IN ACCORDANCE WITH EXPECTATIONS, PROSPECTS OF GROWTH IN NEXT QUARTERS
In Q1 of the current year the Group’s export sale decreased by 3% yoy to a level PLN 7.4M due to temporary
collapse of demand around the turn-of-the years 2011 and 2012. In Q1 a value of collected orders was by
about 30% higher than in Q1 2011. In Q1 2012 were completed or continued many lighting projects, among
others:
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Great Britain – next shops of ASDA chain
Bulgaria – Mall Sofia in Sophia, shopping center (continuation in Q2 and Q3 of the current year)
Christian Agriculture University – Dronten, Netherlands
FCC – seat of the company - Madrid
The European Union remains the main market of the Group. In Q1 of the current year the biggest sales
increase was recorded on the following markets: Norwegian (200% yoy), Dutch (60% yoy) and Russian (46%
yoy). For the whole year 2012 it is planned to sustain a high growth level in Russia and the Netherlands where
the Company continues projects from 2011 (officers’ schools in Russia). There are also other projects at the
planning stage, for instance office building Spectrus in Deventer in the Netherlands and logistics center “South
Gate” near Moscow.
www.essystem.pl
[email protected]
ES-SYSTEM S.A. z siedzibą w Krakowie, ul. Przemysłowa 2, 30-701 Kraków wpisaną przez Sąd Rejonowy dla Krakowa – Śródmieścia w Krakowie Wydział XI Gospodarczy KRS do Rejestru
Przedsiębiorców Krajowego Rejestru Sądowego pod numerem 0000113760, o numerze NIP 679-25-51-640 i numerze REGON 351610904, o kapitale akcyjnym 14.145.000, 21 zł (w całości
wpłaconym), o zarządzie w składzie: Prezes Zarządu – Bogusław Pilszczek, Wiceprezes Zarządu – Leszek Ciupiński,
Członek Zarządu - Tomasz Budzyński, Członek Zarządu – Mirosław Butryn
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ES-SYSTEM
PROFITS UNDER THE COSTS’ PRESSURE
In Q1 2012 the Group recorded an operating loss in an amount PLN 615k. The main reason was an increase
of general and administrative costs by PLN 2.1M, that is 19.3% increase in comparison with the same period
of the year 2011. The biggest influence on the increase had remuneration and employee benefits costs in an
amount PLN 1.5M, that is 13.4% which is a result, among others, of creating new work positions (increase of
the composition of the Management Board and leading personnel) in ES-SYSTEM, a derivative of actions with
the main objective to optimize production processes and to improve operational efficiency. Additionally in 2012
took place changes of a bonus system for employees in the subsidiary ES-SYSTEM Wilkasy. The change of
the bonus system consists in a change of time of a bonus payment and its proportional division into quarters
with maintaining the bonus amount throughout the whole year at a level maintained up to now. Increase of a
pension rate by 2 percentage points from February of the current year was a factor also influencing the
increase of costs. Additionally in Q1 of the current year took place an increase of amortization costs by 19.8%
yoy (releasing for use and beginning of amortization of buildings and machines in the company ES-SYSTEM
NT took place in Q2 of 2011). The Group’s EBITDA in Q1 was positive and amounted to PLN 1.4M. In the first
three months of 2012 the Group recorded net loss in an amount PLN 758k.
PROSPECTS OF THE GROUP’S DEVELOPMENT IN 2012
In 2012 ES-SYSTEM will concentrate on developing sales in segments ensuring stable income. Foreign
markets remain a strategic area of activity. The Management Board plans to strengthen the Company’s
position on the current export markets, especially on prospect EU markets. Participation of ES-SYSTEM in the
world’s biggest trade fair Light&Building 2012 in April of the current year was an occasion to present the offer
to potential clients and to contact new foreign partners. After Q1 2012 ES-SYSTEM S.A. sustained an upward
bias within a limit of 30% (mainly in export) in a portfolio of active orders in comparison with the same quarter
of 2011. In the opinion of the Management Board sale’s increase could be expected mainly on export markets,
especially in Russia, Great Britain, Austria, Denmark and France. At the end of Q1 2012 export sale
constituted 21.5% of the revenue. The domestic market for the professional lighting should retain at the
current level or decrease by few percent. Evaluation of the market potential in 2012 at the current stage is
difficult due to constantly changing economic situation.
Uncertainty on domestic and foreign investment markets with maintained pressure on margins does not
prognosticate revival of the sector in the current year. In the opinion of the Management Board increase of the
Group’s revenues in 2012 will significantly depend on results achieved in export and on maintaining dominant
position on the domestic market.
Additional information:
Anna Przyczyna
Administrative Office of ES-SYSTEM S.A.
Tel. +48 (12) 295 80 39
e-mail: [email protected]
ES-SYSTEM S.A. is the largest Polish company in the lighting sector in the section of professional lighting technology for constructions: general, architectural,
residential, industrial, specialist and exterior. The Company forms specialized Capital Group with its own three production plants. The Group determines
direction of the branch’s development in the areas of innovatory technological solutions, energy saving and design. For the last few years ES-SYSTEM has
been recording a double digit increase in income along with distinct improvement of profitability ratios at the same time. Development strategy of the Group
assumes strengthening the position of the national leader in the sector and dynamic increase in export sales on the EU market and other highly developed
countries.
www.essystem.pl
[email protected]
ES-SYSTEM S.A. z siedzibą w Krakowie, ul. Przemysłowa 2, 30-701 Kraków wpisaną przez Sąd Rejonowy dla Krakowa – Śródmieścia w Krakowie Wydział XI Gospodarczy KRS do Rejestru
Przedsiębiorców Krajowego Rejestru Sądowego pod numerem 0000113760, o numerze NIP 679-25-51-640 i numerze REGON 351610904, o kapitale akcyjnym 14.145.000, 21 zł (w całości
wpłaconym), o zarządzie w składzie: Prezes Zarządu – Bogusław Pilszczek, Wiceprezes Zarządu – Leszek Ciupiński,
Członek Zarządu - Tomasz Budzyński, Członek Zarządu – Mirosław Butryn
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