Q Financial Performance May 15th 2006 IMPEL S.A. Management’s presentation
2 Consolidated financial results Financial statements according to IFRS PLN 4,507 thousand PLN (1,800) thousand one-off event PLN’ Q1 2005Q Sales revenue624,994148,647169,426 Subsidies54,07213,48312,923 Depreciation/amortization16,2114,5954,293 EBIT21,7675,0803,833 EBIT net of subsidies(32,305)(8,403)(9,090) EBITDA37,9789,6758,126 EBITDA net of subsidies(16,094)(3,808)(4,797) Net profit20,3644,3842,920 Assets350,996338,440359,228 Cash71,88474,54068,243 Equity and reserves222,345206,009225,644 Non-current liabilities4,9896,8213,989 Current liabilities111,263108,380118,802 Interest-bearing debt2,4584,9892,163 Balance-sheet data at end of periods
3 Comparison of Consolidated Quarterly Results Q result in line with expectations PLN (7,290) thousand no one-off events PLN 4,507 thousand PLN’000 Q Q Q Q Q Sales revenue148,647150,456157,807168,084169,426 Subsidies13,48313,99513,26213,33212,923 Depreciation/amortization4,5953,4624,1124,0424,293 EBIT5,0804,9978,4723,2183,833 EBITnet of subsidies(8,403)(8,998)(4,790)(10,114)(9,090) EBITDA9,6758,45912,5847,2608,126 EBITDA net of subsidies(3,808)(5,536)( 678)(6,072)(4 797) Net profit4,3844,4847,3974,0992,920
4 Sales Revenue of the Impel Group PLN million 14% rise compared with Q Organic sales growth in Q compared with Q1 2005, totalling 8.6 % (PLN 12.8 million) Acquisitions – sales increase by 5.4% (8,0 mln PLN) –Security (BD Faktor, North Ochrona) – PLN 4.8 million –Cleaning (DC System) – PLN 3.2 million
5 EBIT and Subsidies in Q Steady decrease in the subsidies’ contribution to total revenue PLN million Subsidies EBIT 9.1% 9.3% 8.4%7.9%7.6% 21.6% 11.8% 8.7% Subsidies expressed as a percentage of sales revenue
6 Q EBIT – Discussion and Analysis Material factors with a bearing on the profit –Handover of land for easement appurtenant – allotted for road construction (PLN -1.0 million) –Spin-off of Cleaning Services (PLN -0.8 million) Impact of one-off events on Q performance
7 Q Performance by Business Segments Business segments according to IFRS (IAS 14) 1) Revenue on sales outside the Group 2) Relative to sales revenue Q1' 05Q1' 06Q1' 05Q1' 06Q1' 05Q1' 06Q1' 05Q1' 06Q1' 05Q1' 06 Sales revenue 1) Subsidies Segment’s result (1 075)1 903 EBIT margin 2) 5,9%6,3% 10,4%8,7%5,7%4,4%3,3%1,2%-5,6%6,7% Unallocated Group’s overhead (2 843)(6 108) Eliminations(784)(744) EBIT Total PLN ‘000 CLEANING SECURITYCATERING OTHER (1 800) PLN’000 one-off event
8 Impel Group Workforce Gradual reduction of the disabled workforce results in decreased subsidies [ full-time equivalents] Average employment in the quarter – under employment contracts * Net of DC System Group companies and North Ochrona Total workforce Disabled workforce Participation of employees remunerated at minimum wage in the total workforce is below 20%.
9 Acquisitions DC System – cleaning services (Class A office buildings) - February 2006 North Ochrona – security services - February 2006 Toal revenue from acquisitions executed in Q amounts to PLN 3.7 million (approx. PLN 17 million in 2006) Acquisitions planned for the future. Projects executed in Q1 2006
10 Impel Group’s new business area The first project – housing construction Attractive land owned by the Gropu companies and a related undertaking – over 15 ha with development plan, in the city centre of Wrocław Selection of an experienced partner underway Property development business launched
11 Subsidies: Group Policy andRegulatory Environment No legislative changes coming into force in 2006 – Act on Occupational Rehabilitation and Employment of the Disabled and Regulation of May 18th 2005, as amended (lump-sum subsidies) Percentage share of subsidies in total sales revenue falling : 21.6% in % in % in 2005 Management’s policy – reduce subsidies to 7.5% in 2006 Subsidies account for a stable and predictable share of revenues
12 Dividend for 2005 Recommended dividend of PLN 0.68 per share 50% of the Impel Group’s consolidated profit, and close to maximum dividend available Final decision at GM on May 29th 2006 Dividend higher than intended
13 Financial Forecast for 2006 Forecast year-on-year in crease in percent(%) PLN million Forecast upheld Sales revenue PLN 720 million 10.6% 26.7% 10.3% 15.2% Net profit PLN 20 million Performance Forecast PerformanceForecast