Presentation of the ES-SYSTEM Capital Group's financial data for 3Q 2019

1. Presentation of the ES-SYSTEM Capital Group’s financial
data for 1st-3rd quarter of the year 2019
Krakow, 19th of November 2019
ABB Corporate office, Helsinki, Finland

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

3. SKILLFUL USE OF THE PREVAILING SITUATION IN THE INDUSTRY
➢ The dynamics of the construction and assembly market in Q1-Q3 2019 amounted to 5.3% y/y (in comparison with 19.8% in
Q1-3 2018)
➢ in the segment of non-residential buildings – an increase by 9.2% y/y
➢ The past three quarters were particularly successful for commercial and service buildings (an increase by 18% y/y) and
industrial and warehouse buildings, which are responsible for the largest part of the non-residential building sector (an
increase by 14% y/y).
➢ Hotel buildings (8.2% y/y) and office buildings (2.5% y/y) recorded increases at a single-digit rate. On the other hand,
decreases were recorded in the non-residential building segments, where the main investor is a public party, i.e. in public
buildings (-4.2% y/y) and transport and communication buildings (-17.1% y/y)
Source: Spectis, The construction market in Poland, November 2019
3
34,7
31,3
16,2
19,7
20,8
24,7
18,7
2.0
16,4
22,4
17,1
12,2
3,2
15,1
10,8
17,4
9,6
-0,7
6,6
2,7
7,6
-5
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 IV 19 V 19 VI 19 VII 19 VIII 19 IX 19
Dynamics of the construction and assembly market 2018-2019

4. A CUMULATIVE INCREASE OF REVENUES AND PROFITS
PRZYCHODY NETTO
EBIT
EBITDA
ŚRODKI PIENIĘŻNE
ZYSK NETTO
161.1 million PLN – an increase by 13.1% y/y
in comparison with 142.5 million PLN in Q1-Q3 2018
6.6 million PLN – a decrease by 5.9% y/y
in comparison with 6.98 million PLN in Q1-Q3 2018
14.8 million PLN – an increase by 3.8% y/y
in comparison with 14.2 million PLN in Q1-Q3 2018
6.5 million PLN – an increase by 0.8% y/y
in comparison with 6.4 million PLN in Q1-Q3 2018
Status at the end of the period: 27.01 million PLN – an increase by 190.2% y/y
in comparison with 9.3 million PLN at the end of Q1-Q3 2018
4

5. INCREASE OF REVENUES IN DOMESTIC AND EXPORT SALES
➢ In Q1-Q3 2019, the Group’s revenues amounted to 161.1 million PLN, which was an increase by 13.1% y/y
➢ In Q1-Q3 2019, the gross profit from sales amounted to 63.9 million PLN, which was an increase
by 11.7% y/y
➢ The value of LED technology solution sales in three quarters of 2019 amounted to 131.4 million PLN, which
was an increase by 17% y/y and constituted 81.2% of total revenues from sales (versus 78.7%
in Q1-Q3 2018)
➢ The margin on total sales in Q1-Q3 2019 amounted to 39.6% (in comparison with 40.1% in Q1-Q3 2018,
which was a decrease by 0.5 p.p.)
5
0
10
20
30
40
50
60
IQ18/19 IIQ18/19 IIIQ18/19
41,7 49,7
51,1
51,8
53,3
56
+
24.2%
+
7.2%
+
9.7%

6. INCREASES IN THE KEY SALES SEGMENTS ON THE DOMESTIC
MARKET
➢ In Q3 2019, the Group’s sales on the domestic market reached 44.6 million PLN, which was an increase by 6.6%
y/y; in Q1-Q3 2019, the Group’s sales on the domestic market amounted to 128.2 million PLN, which was an
increase by 10.3% y/y.
➢ Cumulative sales increases in the key market segments:
➢ emergency lighting – an increase by 26.4% y/y (an increase by 32% y/y in Q3)
➢ industrial lighting – an increase by 9.2% y/y (a decrease by 2.3% y/y in Q3 )
➢ architectural lighting – an increase by 3.9% y/y (an increase by 5.5% y/y in Q3)
➢ lighting control equipment – an increase by 1.4% y/y (a decrease by 62.4% y/y in Q3)
➢ outdoor lighting – a decrease by 6.1% y/y (an increase by 4.5% y/y in Q3)
➢ Sales of luminaires with LED technology amounted to 102.77 million PLN in Q1-Q3 2019, which was an increase
by 14% y/y.
➢ The Group’s share of LED technology solutions in the total sales denoted an increase to 80.1% in Q1-Q3 2019
(in comparison with 77.6% in Q1-Q3 2018).
6

7. EXPORT SALES CONTINUE TO INCREASE, SALES INCREASES
IN THE EUROPEAN UNION
➢ In Q1-Q3 2019, the Group’s export sales amounted to 32.8 million PLN, which was an increase by 25.5% y/y.
➢ Export sales constituted 20.4% of the Group’s sales, in comparison with 18.4% in Q1-Q3 2018
➢ The European Union remains the key foreign market.
➢ ES-SYSTEM denoted an increase of sales in the European Union countries by 51%, reaching 26.8 million PLN.
➢ Cumulative export sales in the key market segments:
➢ emergency lighting – an increase by 29.8% y/y (an increase by 18.7% in Q3)
➢ architectural lighting – an increase by 12.1% y/y (an increase by 25.5% in Q3)
➢ outdoor lighting – a decrease by 8.8% y/y (a decrease by 36.4% in Q3)
➢ industrial lighting – a decrease by 7.2% y/y (an increase by 14% in Q3)
➢ Sales of LED technology solutions in Q1-Q3 2019 amounted to 28 million PLN, which was an increase by 28% y/y.
➢ The share of LED product sales in the total export sales constituted 85.4%, in comparison with 83.5% in Q1-
Q3 2018
26,8
2,5
2,3
1,3
The geographic structure of export sales in Q1-Q3 2019
(in million PLN)
Unia Europejska
Azja i Bliski
Wschód
Pozostałe kraje
Europy
Pozostałe regiony
7

8. OPERATING RESULT UNDER THE INFLUENCE OF AN INCREASE IN COSTS
➢ In Q1-Q3 2019, the Group’s EBITDA amounted to 14.8 million PLN, which was an increase by 3.8% y/y.
➢ In Q1-Q3 2019, the Group’s EBIT amounted to 6.6 million PLN, which was a decrease by 5.9% y/y (in comparison with 6.97
million PLN in Q1-Q3 2018).
➢ the profitability amounted to 4.1%, in comparison with 4.9% in Q1-Q3 2018
➢ Cumulatively, an increase of operational costs by 9.1% y/y, reaching 55.3 million PLN
➢ The result on other operating activities amounted to -2 million PLN, in comparison with 0.54 million PLN in Q1-Q3 2018
➢ this is due to higher write-downs on inventories and higher costs of liquidation of goods and materials at lower
revenues from other operating activity 8
0
500
1000
1500
2000
2500
3000
3500
4000
IQ19 IIQ19 IIIQ19
187
3766
3027
2812
2800
956
EBIT in 2018-2019 (in k PLN)
-
68.4
%
+
1405
%
-
25.7
%

9. STABLE NET PROFIT
➢ In Q1-Q3 2019, the Group denoted a gross profit in the amount of 63.9 million PLN, which was an increase
by 11.7% y/y
➢ Cumulatively, the Group’s net profit amounted to 6.5 million PLN, in comparison with 6.4 million PLN in Q1-Q3 2018.
9
0
0,5
1
1,5
2
2,5
3
3,5
IQ19 IIQ19 IIIQ19
0,4
3,5 2,6
2,66
2,4
1,4
NET PROFIT in 2018-2019 (in million PLN)
+
641%
-
30.4%
-
46%

10. ➢ The Group is maintaining a stable portfolio of projects awaiting completion in Poland and abroad in
2019
➢ Based on the results in the 3rd quarter of 2019 and the amount of orders and sales assumptions, the
Management Board expects that the upward trend in sales will be maintained in the 4th quarter of 2019.
In annual terms, the Management Board at least a one-digit percentage sales increase is expected
to be maintained.
➢ On the foreign market, considering the current status of orders, the Management Board expects that the
upward trend in sales will be maintained and will exceed the results from the previous year.
PERSPECTIVES FOR SALES INCREASES
10

11. END OF REVIEWING STRATEGIC OPTIONS
11
➢On 28th May 2019, the Management Board of ES-SYSTEM S.A. received information from the Company’s Group
of Shareholders about the Shareholders’ decision on implementing the process of reviewing strategic options.
The considered potential strategic options included, but were not limited to, acquiring a strategic or financial
investor interested in the purchase of shares, concluding strategic alliances, as well as other options that could
appear during the process, also including the Company’s withdrawal from trading on the regulated market.
➢The review of strategic options was completed on 13th October 2019 as a result of the Group of Shareholders
concluding a contract regarding the sale of ES-SYSTEM S.A. shares with an industry strategic investor: the
Norwegian company Glamox AS with its registered seat in Molde.
➢On 14th October 2019, Glamox AS with its registered seat in Molde, Norway announced the Tender Offer to
subscribe for the sale of ES-SYSTEM S.A. shares in the period from 04.11-04.12.2019. The price announced in
the tender offer amounted to 3.50 PLN per share.
➢On 29th October 2019, the Management Board of ES-SYSTEM S.A. published the Position of the ES-SYSTEM S.A.
Management Board regarding the tender offer to subscribe to the sale of the Company’s shares announced by
Glamox AS. The Management Board assesses that the strategic plans towards the Company presented in the
Offeror’s Communication are in line with the interests of the Company and will serve its further development.
finds that the Share Price in the Tender Offer complies with the minimum price requirements set out in art. 79
of the Act on Public Offering and corresponds to the fair value of the Company.
➢On 14th November 2019, the Management Board of ES-SYSTEM S.A. convened an Extraordinary General
Assembly of the Company, which was held on 11th December 2019 at 1:00 PM in Krakow at the registered
office of ES-SYSTEM S.A. on Przemysłowa Street 2. The EGA was convened based on a request from the
shareholder Augusta Investment sp. z o.o. The considered changes in the composition of the Supervisory
Board constitute the justification for the proposed agenda and resolution drafts.

12. ➢ Domestic projects:
▪ Production building and office lighting for MTI-Furninowa – Kętrzyn
▪ PT Mazury Logistics Center, hall and office lighting – Ełk
▪ LW Bogdanka mine, mining luminaires – Lublin
▪ Modernization of emergency luminaires in Orion, Saturn, Taurus and Cirrus
office buildings – Warsaw
▪ Expansion of the LG CHEM plant – Biskupice Podgórne
▪ Construction of 7R Park hall (logistics center) – Sosnowiec, Bronisze
▪ Sport Center – Błonie near Warsaw
▪ Modernization of three halls for NB Polska and NM Polska – Gniezno,
Namysłów
▪ Exalus production plant – Kuchary near Kalisz
▪ Railway station PKP Gdańsk Główny, platforms and tunnels – Gdańsk
▪ Port Zachodni High Bay Warehouse– Gdynia
▪ Tetra Pak production halls with an office area – Tomaszkowo
▪ Johnson Matthey production plant – Gliwice
▪ Modernization of the Cuprum Arena shopping center – Lubin
▪ Uniwersyteckie Centrum Stomatologiczne – Warsaw
▪ Łańcut Castle Museum – Łańcut
▪ Modernization of Factory Outlet – Wrocław
▪ Office lighting arrangement at Fabryczna office – Kraków
▪ LIVINN Romanowicza dormitory – Kraków
▪ Air Traffic Control Center – Poznań
▪ Modernization of Mama i Ja shops – Gdańsk, Gdynia, Łódź
▪ Park of Poland water park – Wręcza near Mszczonów
SELECTED PROJECTS COMPLETED IN Q3 2019
➢ Export projects:
▪ Cuachy offices - Namur, Belgium
▪ L'Oreal offices – Clichy, France
▪ NRH rehabilitation center – Dublin, Ireland
▪ Berlin Chemie logistics halls – Berlin, Germany
▪ Tres Cruces shopping center – Montevideo, Uruguay
▪ Confindustria office building – Bergamo, Italy
▪ Cannon Park offices – London, Great Britain
▪ Emergency luminaires in MVM Building offices – Budapest, Hungary
▪ MB – IJsselstein, the Netherlands
▪ street luminaires in Teplička nad Váhom and Žilina in Slovakia
▪ outdoor luminaires by the NRH hospital – Dún Laoghaire in Dublin, Ireland
▪ Sony Car Park – London, Great Britain
12

13. PRESENTATION OF PROJECTS COMPLETED IN THE PREVIOUS QUARTERS

14. Litworowy Staw Hotel
www.essystem.pl 14
Poland, Białka Tatrzańska

15. Centrum Edukacyjno-Multimedialne (Media & Education Center)
www.essystem.pl 15
Poland, Piaseczno

16. Lubella warehouse
www.essystem.pl 16
Poland, Lublin

17. Carrefour logistics centre
www.essystem.pl 17
Poland, Będzin

18. Thank you!