Presentation of results of Grupa Apator

Grupa ApatorStructure of Grupa Apator

Segmenty rynkuSegments

Employment

Grupa Apator in 2009 –

1 643 employees

Grupa Apator in 2010 –

1 743 employees

Increase by 100 employees

Dynamics 106,09%

329 persons employed for specified term

1,14

1,591,511,541,40 1,421,091,20

4,13

4,86

4,254,293,93

4,85

4,10 4,23

0%

100%

200%

300%

400%

500%

600%

2003 r. 2004 r. 2005 r. 2006 r. 2007 r. 2008 r. 2009 r. 2010 r.

Wskaźnik produktywności aktywów ogółem (Przychody ze sprzedaży ogółem / Aktywa ogółem)Wskaźnik wydajności płac (Przychody ze sprzedaży ogółem / Świadczenia na rzecz pracowników)

Productivity and efficiency

Ratio of productivity of assets in total (Revenues on sales in total/Total assets

Ratio of efficiency of earnings (Revenues on sales in total/Employee benefits

Revenues on sales per employee

106 000

200 946

288 820 292 606311 349

356 191

409 778

367 557

183

235

224

186

201

184

164

124

0

50 000

100 000

150 000

200 000

250 000

300 000

350 000

400 000

450 000

2003 2004 2005 2006 2007 2008 2009 2010100

150

200

250

Revenues on sales in total Revenues per employee

Takeover of

FAP Pafal,

Apator Kfap

Takeover

of Apator

Metrix

Takeover

of Apator Rector,

Apator Powogaz

Dynamics of sales in total

[%] 189,6 143,7 101,3 106,4 114,4 103,2 111,5

Revenues per employee according to segments

Metering segment

251 209278 054

40 000

80 000

120 000

160 000

200 000

240 000

280 000

320 000

2009 2010

Revenues - metering segment

Switchgear segment

113 151 124 238

40 00080 000

120 000160 000200 000240 000280 000320 000

2009 2010Revenues - switchgear segment

196

203 312333

Dynamics of revenues

♦Metering segment –

110,69%

♦ Switchgear segment –

109,80%

000’PLN 000’PLN

Share of export in revenues

88 224

56 265

25 85913 349

52 161

71 684

102 916110 311

25%

18%

13%13%

23%19%

28%27%

0

20 000

40 000

60 000

80 000

100 000

120 000

2003 2004 2005 2006 2007 2008 2009 20100%

5%

10%

15%

20%

25%

30%

Export Share of export in revenues

000’PLN

Main areas of export

734

423

5 14

6

5 79

2

6 10

29 08

811 9

36

33 0

12

3 76

2

3 39

6

3 05

9

613

678

739

990

1 22

1

1 43

7

1 91

7

1 92

6

1 96

0

1 99

1

2 27

0

2 43

8

2 79

8

2 87

5

1 36

6

1 19

6

1 95

3

1 51

4

1

4 63

1

1 11

6

2 48

9

2 89

5

2 27

2

5132

239

3 74

3

749

1 05

4

4 63

2

4 85

9

12 9

61

8 79

1

8 97

7

18 8

25

02 0004 0006 0008 000

10 00012 00014 00016 00018 00020 00022 00024 00026 00028 00030 00032 00034 00036 000

RussiaGerm

any

Hungary

DenmarkUkrai

neByelo

russia

SpainEgyp

tRoman

iaBulgari

aGeo

rgia

Italy

Lithuan

iaGrea

t Brit

ain

Czech

Repub

licAustri

aEthiopia

France

Turkey

ColombiaSerb

iaBelgium

Croatia

1-4Q2010 1-4Q2009

Sales in value over 500 000 PLN in 2010000’PLN

Export according to product

000’PLN

0

2 500

5 000

7 500

10 000

12 500

15 000

17 500

20 000

22 500

25 000

27 500

30 000

32 500

35 000

Russia

German

yHun

garyDen

markUkra

ineBye

loruss

iaSpa

inEgy

ptRom

ania

Bulgari

aGeo

rgiaIta

lyLit

huania

Great B

ritain

Czech

Repu

blicAus

triaEthiop

iaFranc

eTurke

yColo

mbiaSerb

iaBelg

iumCroa

tiaSale in value over 500 000 PLN in 2010

Metering equipment Switchgear

Cost level of Grupa Apator

6,7% 6,9%

14,9% 14,8%

6,1%

7,7%

6,5% 6,2% 5,8% 6,2%

12,5%13,5%

14,0%

12,3%12,7%

13,5%

5%

7%

9%

11%

13%

15%

17%

2003 2004 2005 2006 2007 2008 2009 2010

Share of sales costs in total revenues Share of overheads in total revenues

63,1%64,0%

66,8%67,1%

69,4%

59,9%

64,9%65,6%

56%

58%

60%

62%

64%

66%

68%

70%

72%

74%

2003 2004 2005 2006 2007 2008 2009 2010

Share of manufacturing costs of products sold in revenues on sales of products

Cost level –

cost by nature

Structure of costs by nature in 2010

Other costs; 6%

Material and energy

consumption44%

Amortization5%

Emploee benefits30%

Outsourcing15%

000’PLN

Outsourcing

Amortization 14 787

49 003

Material and energy consumption 142 948

1-4Q 2010

15 226

42 923

127 327

1-4Q 2009

97,12%

114,16%

112,27%

DynamicsCosts by nature

Outsourcing 20 016

Material and energy consumption 96 862

18 095

89 723

110,62%

107,96%

Total 323 616293 294 110,34%

44,49%

39,52%38,00%

36,96%39,11%

43,87%

39,56%38,54%

35%37%38%40%41%43%44%46%

2003 r. 2004 r. 2005 r. 2006 r. 2007 r. 2008 r. 2009 r. 2010 r.Udział zużycia materiałów i energii w przychodach ze sprzedaży produktówShare of material and energy consumption in revenues on sales of

products

Financial results of Grupa Apator

49 202

43 841 42 71941 034

48 213 48 996

30 210

18 246

15 000

20 000

25 000

30 000

35 000

40 000

45 000

50 000

55 000

60 000

2003 2004 2005 2006 2007 2008 2009 2010

Profit on sales

Dynamics

165,6

145,1

97,4

96,1

117,5

101,6

100,4

Financial results of Grupa Apator

40 59737 739

46 591

34 682

45 776

35 680

28 783

22 507

13 934

56 513

40 52644 049 42 817

50 120

17 202

44 505

10 000

20 000

30 000

40 000

50 000

60 000

2003 2004 2005 2006 2007 2008 2009 2010

NOPAT EBIT

61 378

22 028

38 124

49 167

56 775 55 623

70 45965 346

11 368

31 305

23 057

34 67337 645

45 557

34 958

51 392

10 000

20 000

30 000

40 000

50 000

60 000

70 000

80 000

2003 2004 2005 2006 2007 2008 2009 2010EBITDA Net profit

Profit margins

13,3%

12,0%

15,0%

17,2%

15,2%

14,6%

13,2% 13,5%

12,5%

8,5%

11,1%

17,4%

10,7%

15,8%

12,9%

6,5%

4%

6%

8%

10%

12%

14%

16%

18%

2003 2004 2005 2006 2007 2008 2009 2010Profit margin on sales Net profit margin

19,8%

17,9%

19,4%

17,0%

20,8%

19,0%

15,0%

17,8%

10%

15%

20%

25%

30%

2003 2004 2005 2006 2007 2008 2009 2010 EBITDA margin

Profitability of Grupa Apator vs sector

Net profitability on sales in 210

12,0%

6,8% 6,4%

0%

2%

4%

6%

8%

10%

12%

14%

Grupa Apator: data f or I-IV quarters of 2010 Other data: f or I-III quarters of 2010

Grupa Apator Industry in total Manufacturing of electrical equipment

Net profitability in 2010

9,2%

12,5%

5,9% 5,2%

0%

2%

4%

6%

8%

10%

12%

14%

Grupa Apator: data f or I-IV quarters of 2010 . Other data: f or I-III quarters of 2010

Grupa Apator Grupa Apator with share transactions excludedIndustry in total Manufacturing of electrical equipment

Profitability of Grupa Apator vs. economy

Profitability on sales

9,7% 7,8% 6,8% 6,4% 6,3% 5,5% 5,3% 4,9% 4,9% 2,4% 1,9%

19,8%

12,4% 12,0%

0%5%

10%15%20%25%

Mining

Information and communication

Grupa Apator*)

Manufacturing and provision with utility s...

Accomodation and restaurants

Industry in total

manufacturing of electrical equipment

Water supply and sewage management

Industrial processing

POLAND

Building industry

Service for properties

trade and repair of vehicles

Transport and storage

*) Grupa Apator: data f or I-IV quarters of 2010 . Other data: f or I-III quarters of 2010

,

Net profitability9,9%

6,7% 5,9% 5,8% 5,2% 4,7% 4,6% 4,0% 3,9%2,9% 1,9%

9,2%

13,1%

10,0%

12,5%

1%3%5%7%9%

11%13%15%

Mining

Grupa Apator*)

Information and communication

Manufacturing and provision with utility services

Grupa Apator**)

Accomodation and restaurants

Industry in total

Water supply and sewage management

manufacturing of electrical equipment

Industrial processing

POLAND

Service for properties

Budownictwo

Building industry

Trade and repair of vehicles

*) Grupa Apator: data f or I-IV quarters of 2010 . Other data: f or I-III quarters of 2010 **) Grupa Apator with the sales of 1 m shares excluded

Foreign trade balance and exchange rate differences

Eur exchange rate in 2009-2010

3,82 zł

3,92 zł

4,02 zł

4,12 zł

4,22 zł

4,32 zł

4,42 zł

4,52 zł

4,62 zł

4,72 zł

4,82 zł

4,92 zł

2 sty 2 lu

t2 m

ar2 kw

i2 m

a j2 c

ze 2 lip 2 sie2 wrz2 pa

ź2 l

is2 gr

u2 st

y2 lu

t2 m

ar2 kwi2 m

a j2 cz

e 2 lip

2 sie2 wrz2 p

aź 2 lis2 g

ru

EUR expressed in 000’PLN

USD expressed in 000’PLN

Currencies in total in 000’PLN

Foreign

trade balance

Import 43 213

58 420

Export 101 633

29 213

-23 129

6 084

74 247

36 064

110 311

1 821

773

2 594

Other currencies expressed in 000’PLN

Description (000’PLN)

Positive exchange rates differences

Negative exchange rates

8 644

11 210

I-IV quarters of 2010

Balance -2 566

Description

Derivatives

Performance date in 2011 3,8000

Total at 23.02.2011

Performance date in 2012 3,7000

3,7321

Performance date in 2013 3,7000

Average exchange

rate [PLN]

31 108

31 111

96 837

34 618

Value [000’EUR]

4,1033

4,1673

4,1376

4,2288

Average exchange

rate [PLN]

18 000

11 550

32 550

3 000

Value [EUR]

Exposure Hedging

Reversing entry of the positive evaluation of derivatives at th31st December 2009

The influence of derivatives on the results of Grupa Apator in 2010

Positive evaluation of derivatives at the 31st December 2010

-

815

2 012

000’PLN

Positive result of the performance of derivatives for 2010

Positive influence of derivatives on the result of 2010

4 007

5 204

Performance of the forecast

000’PLN

Revenues on net sales in total 400 000

Net profit

Forecast for 2010

from 50 000

Performance in 2010

51 392

102,4%

Performance ratio

102,8%

to 54 000 95,2%

409 778

Cele strategiczne do 2013 rokuStrategic objectives till 2013

Performance of the vision –

foreign markets

Grupa Apator exported to 60

countries

in 2010

Development of foreign markets

Germany and Western Europe markets

♦

The contract was concluded with THÜGA -

the company that performs collective orders of many local Stadtwerke

♦

Three year contract concluded for the delivery of gas meters for RWE

♦

Talks are held with E.ON

Development of foreign markets

Russia and Eastern Europe markets

Water meters

Heat meters

Electricity meters

Gas meters

Switchgear

♦

Legislation requirement of complete metering of water

♦

Legislation requirement of complete metering of heat

♦

Reduction of thefts and losses caused by consumers of electricity –

smart electricity meters

Legal base: „Federal law on saving of energy and the increase of power efficiency and introduction of changes in separate legislative acts of Russian

Federation”

dated 23.11.2009 No 261-FZ

In point 13 261-Ф3 in part „

metering of utility services”

it is said that all utility services being manufactured,sold or consumed are subject to obligatory metering.

Grupa Apator –

leader on the market

Electricity meters and systems, including: 104

TOTAL

49

190

24

Value in m PLNCustomer

2010 –

2012

2010 –

2013

Period of the contract

The most important commercial contracts concluded by the companies in Grupa Apator in 2010

Subject

Energa-Operator SA

RWE Stoen Operator Sp. z o.o.

15 2010 Cechtar Sp. z o.o.

13 2010 –

2011 Linter Sp. z o.o. (target Marocco)

3 2010 –

2011 AB Rytu Skirstomieji Tinklai in Lithuania

Water meters,

including: 38

36

2

2011

2010

Teplovodomer SA

The Regional Government of Oromia Water Resources Bureau in Ethiopia

Gas meters, including: 33

33 2010 –

2012 Mazowiecka Spółka Gazownictwa Sp. z o.o.

Switchgear, including: 15

12

3

2010

2010

Apator Elektro SA

Kompania Węglowa SA

News in the offer

Metering equipment

Electricity meters Gas meters with remote read out system

Nubis -Industrial water meter

(high accuracy class)

Billing system for water supply systems

News in the offer

Switchgear

Group of products designed for power engineering

-

Higher category of utility

-

Products manufactured of flame retardant plastics

-

Wide range of accessories and designs

↓

RBK 00 / RBK 1 –

type compact fuse switch dissconnectors

ARS 00/100 → type vertical fuse switch disconnectors

Extension of the offer by services

Era of modern energy management in enterprises

Inventory –

construction and updating of IT data bases of the network property that is the recording of information about every element of the network taking into account its technical data and hierarchy in its structure

Prepayment system

Energa -

Power Supplier

introduces the service „Energy without risk”

into Smart Eco project

The service covers also the possibility of payable installation of prepayment metering-billing system on request of a consumer.

Since the moment of the introduction of the service „Energy without risk”

by Energa we

have delivered 4150 electricity meters

New products -

acquisition

Heat cost allocators Thermostats and capillariesTemperature sensors and

manometers

Metra Šumperk s.r.o.

?20112009

Acquisitions

Purchase by Powogaz SA of 100% of sharesfor the amount of 10 m PLN

Strategic rule concerning take over:The firms that can be in the area of interest must have significant advantage over competition on its area

activity in respect of share in the market or they are in possession of know-

how regarding niche or modern technologies or they have complementary offer to our one in respect of products being in the course of growth of the market.

20082008200520042004

+

?

Investments of the Company in 2004-2011

Total: FAP Pafal SA, Apator Metrix SA i Apator Kfap Sp. z o. o. (000'PLN)

40 670

51 401

30 000 32 000 34 000 36 000 38 000 40 000 42 000 44 000 46 000 48 000 50 000 52 000

Total expenditures

Receipts upto 2010

Total: Apator Powogaz SA i Apator Rector Sp. z o. o. (000'PLN)

27 713

93 490

0 10 000 20 000 30 000 40 000 50 000 60 000 70 000 80 000 90 000 100 000

Total expenditures

Receipts upto 2010

Total: Apator TelemetriaSp. z o. o. i Apator Metra s.r.o. (000'PLN)

11 915

0 2 000 4 000 6 000 8 000 10 000 12 000 14 000

Total expenditures

Anticipation of trends

Activity in organizations

♦

Performance of „the first follower”

strategy

♦

Implementation of advance technologies that have been processed and they are currently implemented in high developed countries

♦

Establishment of co-operation with partners in respect of technology

Associations Of The Polish Firms That Settle Utility Services

Modern Centre of Manufacturing and Development of Apator S.A.

♦

Total area of the new structure will be about 16.000 m2, including manufacturing area about 12.000 m2

♦

Expected increase of employment at new location –

minimum 100 persons including mainly in manufacturing area

♦

Expected reserve for new investment is 5.700 m2

Optimization of processes

♦

Manufacturing of meters in one centre in Apator SA

♦

Reorganization of FAP PAFAL

♦

Processing of plastics in one centre

♦

Automation of manufacturing processes

♦

Implementation of CRM system common for entire Grupa

Apator

Forecast of consolidated financial results for 2011

Net profitod 51 000

Revenues on net sales in total

do 55 000

480 000

Forecast for 2011

51 392

409 778

Performance in 2010

99,2%

107,0%

117,1%

Dynamics

Revenues and export planned

Export of Grupa Apator planned for 2011

45 340

16 860 12 793 11 321 11 289 9 283 5 076 5 040 4 140 2 934 2 749 2 708 2 197 2 161 1 515 1 2500

5 00010 00015 00020 00025 00030 00035 00040 00045 00050 000

Russia

Fran

ce,D

enmark

,Ben

elux

Africa

German

y,Aus

triaUkra

ine,B

yelor

ussia

Czech

Rep

ublic

,Slov

akia,

Hunga

ryMidd

le Ea

st an

d Asia

Spain,

Portug

al

Baltic

Countr

ies

Bulgari

a

Roman

iaStat

es of

form

er Yu

gosla

via Italy

Turke

yGre

at Brita

in, Ire

land

Mexico

,Sou

th Ameri

ca

110 311

409 778

480 000

142 000

0

50 000

100 000

150 000

200 000

250 000

300 000

350 000

400 000

450 000

500 000

2010 Forecast 2011Revenues on net sales in total Export

Share of export in total sales

27%

30%

000’PLN

000’PLN

Revenues and export planned according to segments

Metering segment

89 213

346 000

278 054

119 000

0

50 000

100 000

150 000

200 000

250 000

300 000

350 000

400 000

2010 Forecast for 2011 Revenues on net sales in total Export

Share of export

Switchgear segment

21 098

124 238 129 000

23 000

0

20 000

40 000

60 000

80 000

100 000

120 000

140 000

2010 Forecast for 2011 Revenues on net sales in total Export

Share of export

17%18%

32%

34%

000’PLN

000’PLN

Udział

w kapitale spółki Apator

Share price of Apator SA

Since 2011 Apator is quoted in WIGdiv

dividend index

Share price of Apator S.A. since the first quotation till 31.12.2010 versus sWIG80 index

0 PLN

5 PLN

10 PLN

15 PLN

20 PLN

25 PLN

30 PLN

Apr

-97

Sep

-97

Feb

-98

Jul-9

8

Dec

-98

Apr

-99

Sep

-99

Feb

-00

Jul-0

0

Nov

-00

Apr

-01

Sep

-01

Feb

-02

Jul-0

2

Dec

-02

May

-03

Oct

-03

Mar

-04

Jul-0

4

Dec

-04

May

-05

Oct

-05

Feb

-06

Jul-0

6

Dec

-06

May

-07

Oct

-07

Feb

-08

Jul-0

8

Dec

-08

May

-09

Oct

-09

Mar

-10

Jul-1

0

Dec

-10

1 100

5 100

9 100

13 100

17 100

21 100

Share price of Apator SA sWIG 80

Dividend policy

1 003 1 607 3 554

9 765

31 633

23 229

36 088 35 618 34 607

21 333

41 555

980 1 5003 509 5 454

12 834

22 460

28 235

17 64712 275

17 553 21 064

05 000

10 00015 00020 00025 00030 00035 00040 00045 000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Forecastfor 2010

Dividend Net profit of Apator SA

♦ annual payment of dividend in value of

75% net profit of

Apator SA

♦ declared dividend changes in case of the performance of the investment

♦ annual payment of advance payment

Declared payment of dividend from the profit in 2010

♦

Advance payment towards dividend from the profit in

2010 was paid in gross amount of

0,25 PLN per share in December

2010

♦

Declaration of payment of the second part of dividend in gross amount of

0,35 PLN per share (July 2011)

♦

Ultimate decision on the amount and the date of payment of the second part of dividend from the profit in 2010 will be made at General Shareholders Meeting on the 20th June 2011

Responsible business

Ethics

Employees Society

Ecology

Strategy of the sponsor – „YoungTalent”

„CSR - ground for knowledge transfer and creation of

common ventures socially responsible”” – project being

performed with Nicolaus Copernicus University

Thank you for your attention

Revenues on sales 367 557 111,49%

1-4Q2010 Dynamics1-4Q2009

Prime costs 239 129 113,59%

Gross profit on sales 128 428 107,57%

Sales costs 24 584 114,29%

409 778

271 628

138 150

28 098

Overheads 54 848 110,94%60 850

Profit on sales 48 996 100,42%49 202

Result on

other operating activities 960 -333,65%-3 203

Share in profits of entities consolidated by equity method 164 360,98%592

Profit on operating activities -

EBIT 50 120 92,96%46 591

000’PLN

Results of Grupa Apator Profit and loss account (1/2)

1-4Q2010 Dynamics1-4Q2009

Profit before tax 38 673 164,68%

Net profit per shareholders of parent entity 30 094 160,60%

Net profit per minority shareholders 1 211 252,77%

EBITDA

Income tax 7 368 166,84%

Net profit 31 305 164,17%

65 346 93,93%

63 685

48 331

3 061

12 293

51 392

61 378

Result on financing activities, including: -11 447 249,33%17 094

000’PLN

-

result on derivatives -5 794 189,82%5 204

Results of Grupa Apator Profit and loss account (2/2)

1-4Q2010 1-4Q2009

306 347

-

tangible fixed assets 97 620

-

goodwill of subsidiaries

Fixed assets, including: 161 671

-

intangibles 3 209

49 446

376 231

99 318

175 504

3 723

60 043

-

inventories 54 789

-

short term receivables

-

assets due to deferred income tax 8 089

144 676

72 470

63 286

8 180

200 727

113 304

-

cash and its equivalents 10 23417 147

Long term liabilities 54 202

Short term liabilities

306 347

Equity 179 571

72 574

58 980

376 231

212 940

104 311

Current assets, including:

TOTAL ASSETS

TOTAL LIABILITIES

000’PLN

Results of Grupa Apator Balance sheet

1-4Q2009

Income tax paid -6 020

Net cash from operating activities

10 375

45 928

Receivables from investing activities 2 090

Profit before tax 38 673

Expenditures from financing activities -39 123

Cash from financing activities

Cash from investing activities -32 493

Receivables from financing activities 15 791

-23 332

Expenditures from investing activities -34 583

Adjustments to

operating activities

Increase/decrease of cash -9 897

Cash at the beginning of the period 20 335

Cash at the end of the period 10 438

000,PLN 1-4Q2010

-11 488

-4 033

33 129

3 524

63 731

-46 067

-23 619

43 154

-2 913

-27 143

6 597

10 438

17 035

Amendments to working capital 2 900-15 081

Results of Grupa Apator Cash flow account

1-4Q2009

gross profit on sales / revenues on net sales in total 34,94%

profit on sales / revenues on net sales in total 13,33%

Gross profit on sales margin

net profit / revenues on net sales in total

net profit / equity

net profit / assets

operating profit after tax (NOPAT) / capital employed

operating profit EBIT + amortization / revenues on net sales in total

8,52%

17,43%

10,22%

16,21%

17,78%

Profit on sales margin

Net profit margin

ROE

ROA

ROIC ( ROCE )

EBITDA margin

1-4Q2010

33,71%

12,01%

12,54%

24,13%

13,66%

12,98%

14,98%

Results of Grupa Apator Profitability ratios

1-4Q2010 1-4Q2009

current assets -

inventories / short term liabilities 1,24

total liabilities / balance sum 41,38%

1,32

43,40%

Quick fluidity ratio

equity / outside capital 141,64%130,41%

Debt rate

Outside capital / equity ratio

Results of Grupa Apator Fluidity and debt ratios

1-4Q2010 1-4Q2009

12 month net profit / weighted

average number of shares 1,10

equity / number of shares 6,30

1,74

7,22

Net profit per share (PLN)

market price of a share at the end of the period / 12 month net profit per share in the period

market price of a share at the end of the period * number of shares

equity

average market price of a share / book value per share

price share at the end of the period

14,49

558 553

11,02

674 055

179 571

3,11

212 940

3,17

15,9119,20

Book value per share (PLN)

P/E ratio

Market value (000’PLN)

Book value (000’PLN)

Market value/book value ( P / BV )

Price share at the end of the period (PLN)

Results of Grupa Apator Market ratios