Slide 1: Presentation of results for the third quarter of 2018
Presentation of results for the third quarter of 2018 December 5, 2018
Slide 2: Representatives
2 Representatives Daniel Janusz Piotr Wielesik president of the Board Member of the Board
Slide 3: Presentation plan
Presentation plan The most important events of the third quarter of 2018 Sales development trends FEERUM in Ukraine Project Tanzania Financial results for the third quarter of 2018 Foreign markets Strategy Summary 3
Slide 4: The most important events of the third quarter of 2018
The most important events of the third quarter of 2018 The most important events of the third quarter of 2018 After three quarters of 2018, sales revenues increased by nearly 49% (y/y). In addition, prospects for potential future contracts allow you to assess future periods with optimism. The port
Slide 5: FEERUM in Ukraine
FEERUM in Ukraine
Slide 6: Ukrainian contracts
6 Ukrainian contracts Client Epicentr K LLC Condition for the implementation of contracts The contracts are conditional. According to the agreement, from March to October 2019, 100% of the first large contract (35.6 million euros) is to be completed. In turn, from August to December 2019, 80% of the
Slide 7: One of the objects to be built in Ukraine
7 One of the objects to be built in Ukraine The concept of the object in force on November 27, 2018.
Slide 8: KUKE letter of intent
8 KUKE letter of intent We are very advanced in conversations with KUKE regarding the insurance of receivables. On the day of signing the contracts, we “ received a letter of intent confirming the intention of KUKE to insure our receivables in the dates provided for in the contracts Daniel Janusz, F
Slide 9: KUKE maintains an insurance policy towards Ukraine
9 KUKE maintains an insurance policy towards Ukraine https://www.kuke.com.pl/aktualnosci/kuke-utrzymuje- dotychczasowa-polityke-ubezpieczeniowa-wobec- ukrainy,95.html 27.11.2018 „KUKE ensures the security of trade and the possibility of granting bank loans for investment projects. We constantly adju
Slide 10: Project Tanzania
Project Tanzania The most important events of the third quarter of 2018 Sales development trends FEERUM in Ukraine Project Tanzania Financial results for the third quarter of 2018 Foreign markets Strategy Summary 10
Slide 11: FEERUM in Africa
FEERUM in Africa We obtained a VAT exemption for suppliers So far, we have received payments in the amount of 13 485 thousand USD, of which PLN 4,971 thousand USD is an advance payment 11
Slide 12: 33.1 million USD - the total value of the contract with NFRA
33.1 million USD - the total value of the contract with NFRA we will build complexes with a total capacity of 190,000 m3 of grain at the moment, about 80% was produced, and about 60% of the entire installation was sent to Tanzania for all locations the goods were sent in 230 containers by se
Slide 13: Works carried out in the third quarter of the year in Tanzania
Works carried out in the third quarter of the year in Tanzania In the third quarter of 2018 preparatory work was completed in all five locations. As soon as possible, earthworks and construction works were also started for silos and storage halls consisting in leveling the ground and making excava
Slide 14: Construction of silos
Construction of silos Foundations with a base taking into account the conditions of the seismic zone
Slide 15: Own concrete production
Own concrete production We pour concrete of our own production on every construction site. We purchased mobile concrete mixing plants with efficiency 20m3 concrete per hour
Slide 16: Construction sites are regularly controlled by representatives of the Tanzanian government and NFRA
Construction sites are regularly controlled by representatives of the Tanzanian government and NFRA 16 BRONZ KIDS 535 WOLF KIDS 535 Illustration Design Illustration general director of NFRA secretary general for agricultural engineering
Slide 17: A visit of farmers from the Songea region and journalists from Tanzania at FEERUM
17 A visit of farmers from the Songea region and journalists from Tanzania at FEERUM
Slide 18: Financial results for the third quarter of 2018
Financial results for the third quarter of 2018 The most important events of the third quarter of 2018 Sales development trends FEERUM in Ukraine Project Tanzania Financial results for the third quarter of 2018 Foreign markets Strategy Summary 18
Slide 19: Sales revenues (thous. PLN)
19 Sales revenues (thous. PLN) The result for the year 2017 - 96 134 thous. PLN III quarter of 2018 100 657 sales revenues III quarter of 2017 67 515 sales revenues Source: Consolidated quarterly report for the period from January 1, 2018 to September 30, 2018
Slide 20: The revenue structure by sales directions
The revenue structure by sales directions From 01.01 to 30.09.2018 From 01.01 to 30.09.2017 2017 Country 30 234 43 027 55 075 Export 70 423 24 488 41 059 Ukraine 8 498 9 141 11 912 Lithuania 13 499 14 050 14 660 Romania 410 305 305 Germany 249 46 Tanzania 47 083 13 412 Others 684 993 723 Total 100 6
Slide 21: Basic financial results for the third quarter of 2018
Podstawowe wyniki finansowe za III kwartał 2018 roku thous. PLN I-III Q 2018 I-III Q 2017 Change 2017 year Sales revenues 100 657 67 515 49% 96 134 Gross profit from sales 15 770 14 039 12,3% 16 832 Profit from operating activities 6 372 7 322 - 13% 6 462 (EBIT) EBITDA 12 661 14 071 - 10% 15 440 Gro
Slide 22: The structure of the balance sheet as at September 30, 2018
The structure of the balance sheet as at September 30, 2018 Assets Liabilities Main items: Main items: Short – term liabilities due Rotary Commitment to deliveries and service– Financial stocks – 48,3 mln PLN Receivables – 49 mln PLN 101,8 mln PLN 91,5 mln PLN 23,4 mln PLN Cash flow – 2,6 ml
Slide 23: Procurement area
Obszar Zakupów Developing a procurement and logistics strategy Successfully implemented pneumatic powered related to the implementation of contracts in devices for current production and offer Tanzania along with the selection of the main Technological changes in the area of butyl seals for ensure a
Slide 24: Foreign markets
Foreign markets The most important events of the third quarter of 2018 Sales development trends FEERUM in Ukraine Project Tanzania Financial results for the third quarter of 2018 Foreign markets Strategy Summary 24
Slide 25: Foreign markets
Foreign markets The company is observing constant demand for elevators, both on the domestic market and abroad. The current order portfolio includes 34 contracts with a value of approximately PLN 351.9 million with a maturity date of 2018-2020. The Company showed the highest activity abroad on
Slide 26: Foreign markets - cont.
Foreign markets - cont. The company maintains and develops commercial activities in the Russian Federation and Kazakhstan, where it intensified marketing through participation in exhibitions, agricultural fairs and thematic conferences organized by the governments of both countries. The efforts ma
Slide 27: Strategy
Strategy The most important events of the third quarter of 2018 Sales development trends FEERUM in Ukraine Project Tanzania Financial results for the third quarter of 2018 Foreign markets Strategy Summary 27
Slide 28: Strategy
Strategy Obtaining an important player position on the international arena Dynamic increase in the scale of operations Modern technologies and Sales to the domestic expansion of the market and foreign markets production base Strenghtening sales Intensification of Investments in Expansion of the netw
Slide 29: Summary
Summary The most important events of the third quarter of 2018 Sales development trends FEERUM in Ukraine Project Tanzania Financial results for the third quarter of 2018 Foreign markets Strategy Summary 29
Slide 30: FEERUM after the three quarters of 2018
30 FEERUM after the three quarters of 2018 High contracted and potential order book for 2018-2020; Good market prospects Realization of over 60% of supplies of machinery and equipment to Tanzania Innovative on a global scale products in the Company's offer; significantly strengthened Nearly 49% incr
Slide 31: FEERUM JSC. contact details
FEERUM JSC. 6 Okrzei Street 59-225 Chojnów Polska +48 76 81 96 738 +48 76 81 88 485 sekretariat@feerum.pl www.feerum.pl
Slide 32: Reservation
Reservation This study has been prepared solely for information purposes. It does not constitute advertising or offering securities in public trading. The study uses information sources that FEERUM S.A. considers it credible and accurate, but there is no guarantee that it is comprehensive and fully