Strategy of the Apator Group

Warsaw 2018

APATOR GROUP - LEADERS

Mirosław Klepacki President of the Management Board of the Apator SA

Małgorzata Mazurek Finance Director Apator SA

Arkadiusz Chmielewski President of the Management Board Apator Metrix SA

Jacek Kryszkiewicz President of the Management Board Apator Powogaz SA

Tomasz Łątka President of the Management Board Apator Elkomtech SA

Artur Bratkowski Director of the Department for Metering Equipment & Systems

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APATOR - closer

Closter to client                                 Closer to innovation 

Closer to technology                 Closer to employee 

We follow the trends Maintenance of smart grid infrastructure as a service 

Automation of grid infrastructure as a service 

Metering as a service 

Solutions, applications, implementations, maintenance (SLA) 2025 

Solutions, applications, implementations 2020 

Devices and systems 2015 

Devices 2010 

*Cleanetech Group,Green, Navigant, Strategy Analytics, IHS 

Growing markets

IT – OT predictive analytics 50%

Smart City, energy/media networks

15%

40% 10%

13% 13% 5%

30% 0%

49% MDM Local micronetworks

20% Smart metering & sensors

10% 26%

10% 5%

0%

1% 1%

9%

0% IoT devices Predictive

analytics

-5% Traditional meters of

electric energy

Smart meter of electric energy

Gasometer mechanical EMEA

Watermeters electronic

Source: Cleanetech Group,Green, Navigant, Strategy Analytics, IHS

Enabling environment

CLEAN ENERGY AND ENERGY EFFICIENCY 

Infrastructure for e‐mobility Energy clusters Industry 4.0 

Renewable energy sources  

LEGAL REGULATIONS 

Energy market (PL) 

Environment protection 

The Paris Agreement (CO2) 

The EU winter package 

 

INFRASTRUCTURE  

Demand management Energy adaptability 

Systems for  operational control of 

Networks Cyber security 

Network automation Metering as a service 

Intelligent grid as a service   

TECHNOLOGY 

Smart Gas Smart Metering Smart W&H Smart Home Smart Grid 

 

MARKETS AND RESOURCES 

New markets/ opportunities  

Limited availability of specialists (distribution networks) 

Limited availability of electronic components 

End of SMART roll‐outs in Western Europe 

Instability of Eastern markets (Russia) 

Geographical range

Product distribution in over 70 countries all over the world 

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Strong competitive position

LEADER ON THE POLISH MARKET 

  Poland energy meters  electric energy 

  Poland  switchgear   

 Poland 

watermeters 

 

STRONG POSITION ON EMEA MARKET 

   Poland 

gasometer 

  Poland automatization of  networks 

  EMEA energy meters  electric energy 

  EMEA  switchgear   

 EMEA 

gasometer 

   1        1       1    EMEA watermeters 

 2        2  4        4         4 

  7 

POSITION ON POLISH MARKET POSITION ON EMEA MARKET 

Source: Own estimates, IHS, industry reports 2016‐18 

The largest entity on the WSE in the electrical engineering sector

Apator  35.0% 

 

Electro‐construction 9.2% 

TIM 7.2% 

ZPUE  6.5% 

Others 22.3% 

Aplisens  6.1% 

 

ES‐System  4.1% 

 

Introl  4.2% 

 Grodno  5.4% 

Source: Share of the value of companies in the total capitalization of the industry (electrical engineering) on the WSE (Elektrosystemy 09.2018) 

Background to the Strategy

PROFITABLE INCREAS EBITDA 220 mln PLN

in 2023

• More than 100 year experience in the production sector of metering and connecting devices in the Group • Dynamic growth of sales scale supported by successful acquisitions in years after 2003

• Decrease in the Group's profitability after 2014

HISTORY

• Benefits of the cooperation in the Group

• Product management structures

• Best sales teams on strategic markets;

• Automated mass production

• Optimized production capacity

• Honouring commitments (credibility)

ORGANISATION IMPORTANT ISSUES

• Ability to offer and deliver products to markets during technological changes

(TIME TO MARKET) • Strenthening / forming of

product teams and R&D • Capital and management

readiness for aquisitions on strategic markets

SMART METERING

ULTRASOUND WATERMETERS

SLAT DISCONNECTORS

SIGNIFICANTLY INCREAS SCALE OF ACTIVITY

OF THE GROUP

MAINTAIN DOMINANT POSITION ON PL MARKET

• High product and technological competencies (the highest in the sector)

• In-depth knowledge of the needs of clients of the utilities distribution sector

• Organisational efficiency (effective and efficient)

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CORE

ACHIEV SIGNIFICANT POSITION ON STRATEGIC MARKETS DE, CEE

SOLUTIONS SMART GRID

INTERNET OF THINGS

GASOMETER METERING ELECTRONIC GASOMETER SMART

Elements of the strategy

LOCAL SMART GRID (CLUSTERS, EE COMMUNITIES)

ENERGY EFFICIENCY

SYSTEMS AND SOLUTIONS

DEVELOPMENT PROJECTS (LTE, CAT.-M1, NB-IOT, G3)

BUILDING STRONG SALES STRUCTURES ON STRATEGIC MARKETS

SMART METERING, POMIAR ELEKTRONICZNY- GAS

SMART METERING, ELECTRONIC METERING- , BILLING - W&H

ACTIVE MANAGEMENT OF ENERGY UTILITIES NETWORKS

SMART METERING – EE

PROFITABLE INCREAS EBITDA 220 mln PLN

SMART METERING

ULTRASOUND WATERMETERS

GASOMETER METERING ELECTRONIC

GASOMETER SMART

SOLUTIONS SMART GRID

INTERNET OF THINGS

SLAT DISCONNECTORS

SIGNIFICANTLY INCREAS SCALE OF ACTIVITY

OF THE GROUP

ACHIEV SIGNIFICANT POSITION ON STRATEGIC MARKETS DE, CEE

MAINTAIN DOMINANT POSITION ON PL MARKET

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Mission, vision MISSION

The mission of the Apator Group is to provide customers with easy to use and intuitive solutions in the scope of effective management of all kinds of energy media.

VISION The Visionof the Apator Group in long-term is to maintain position of the industry leader and expert in Poland, to beat the forefront of suppliers in Germany and Central and Eastern Europe and to buildrecognition of Apator brand on selected, other markets.

F1. SIGNIFICANT INCREAS OF BUISNESS SCALE (EBITDA 220 mln PLN)

F2. BUILD PROFITABILITY OF THE COMPANY THROUGH A GROWING SHARE OF NEW, MORE PROFITABLE PRODUCTS

P1. PRODUCT MANAGEMENT

P2. RESEARCH AND

DEVELOPMENT

P4. SALES P3. PRODUCTION IMPLEMENTATION

SERVICES, LOGISTICS AND PURCHASING

P5. AFTER SALE SERVICES

FINA

NCES

CL

IEN

T IN

TERN

AL P

ROCE

SSES

LE

ARN

ING

AND

DEVE

LOPM

ENT

OUR SYSTEMS ARE EASY

TO IMPLEMENT AND USE

WE HELP TO SAVE AND MANAGE UTILITIES

AND ENERGY

WE ARE ALWAYS CLOSE TO CLIENT

WE’RE EXPERTS IN WHAT

WE DO

WE’RE RELIABLE PARTNER

Strategies map | four perspectives

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L1. PEOPLE AND COMPETENCIES L2. CULTURE AND COMUNICATION L3. IT SYSTEMS IN THE GROUP

Strategies map | financial perspective

F1. SIGNIFICANT INCREAS OF BUISNESS SCALE

EBITDA PLN 220 mln F2. BUILD PROFITABILITY OF THE COMPANY THROUGH

SHARES OF NEW, MORE PROFITABLE PRODUCTS

F3. Strengthening the position of market leader in EE and W&H on the Polish market

F4. To achieve a significant position on the DE and CEE markets (especially EE and W&H)

F5. Exploit the potential of other European markets for sales development at GAS and W&H

F6. Focus development on SMART solutions

F7. Develop sales of systems for reading and management of measurement data (including IoT)

F8. Focus development on customer segments with high sales or profitability potential F9. Optimise costs by exploiting synergies within the Group

FIN

ANCE

S

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We are always close to our clients Our systems are easy to implement and use

We help to save and manage utilities and energy

We are an expert in our industry

We are a reliable partner

Strategies map | clients perspective

CLIE

NT

15

INTE

RNAL

PRO

CESS

ES

Strategies map | internal processes perspective P1. PRODUCT MANAGEMENT • Product Management as a centre for managing the profitability of the offer • Creating benefits for the customer and user at product level P2. RESEARCH AND DEVELOPMENT • Electronic measurement

• Multienergy solutions • R&D Synergy • Joint competence centres • New approach to innovation P3. PRODUCTION, SERVICES IMPLEMENTATION, LOGISTICS AND PURCHASING • Quality and on-time delivery • Radical automation of production processes • Synergies in production, purchasing and logistics P4. SALES • Best sales teams and relations with clients in the sector • Strong sales structures in strategic markets • Cross-selling in the Group P5. AFTER SALES SERVICE • Quick and efficient warranty and post-warranty service • Professional technical support for customers and distributors

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UCZE

NIE

SIĘ

I RO

ZWÓJ

Strategies map| learning and development perspective

L 1. PEOPLE AND COMPETENCIES

• Develop key competences for the implementation of the strategy

• Attract and retain key personnel effectively

L 2. CULTURE AND COMUNICATION

• Develop a customer-oriented organisational culture

• Build responsibility for internal and external declarations

• Efficiently exchange information within the Group

L 3. IT IN THE GROUP

• Develop IT tools and systems to support changes of business processes

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LEAR

NIN

G AN

D DE

VELO

PMEN

T

F1. SIGNIFICANTLY INCREASE THE SCALE OF BUSINESS (EBITDA 220 MILLION PLN) F2. BUILD PROFITABILITYOF THE COMPANY THROUGH GROWING SHARE OF NEW MORE PROFITABLE PRODUCTS

F3. Strengthen the position of market leader in EE and W&H on the Polish market

F4. Achieve significant position on the DE CEE markets (especially EE and W&H)

F5. Exploit the potential of other European markets for sales development at GAS and W&H

F7. Develop sales of systems for reading and management of measurement data (including IoT)

F9. Optimizing costs through use of synergy effect in the Group

F8. Focus development on customer segments with high sales and profitability potential

F6. Focus development on SMART solutions.

P1. PRODUCT MANAGEMENT P2. RESEARCH AND DEVELOPMENT

P4. SALES P3. PRODUCTION, IMPLEMENTATION, SERVICES, LOGISTICS AND PURCHASING

P5. AFTER SALE SERVICE

FINA

NCES

CL

IEN

T IN

TERN

AL P

ROCE

SSES

LE

ARN

ING

AND

DEVE

LOPM

ENT

OUR SYSTEMS ARE EASY TO IMPLEMENT AND USE

WE HELP TO SAVE AND MANAGE UTILITIES AND ENERGY

WE ARE ALWAYS CLOSE TO CLIENT

WE’RE EXPERTS AT WHAT WE DO

WE’RE RELIABLE PARTNER

Map of the Streategy

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L1. PEOPLE AND COMPETENCIES 1. Develop key competences for the

implementation of the strategy 2. Attract and retain effectively key personnel

L2. CULTURE AND COMUNICATION 1. Develop a customer-oriented organisational culture 2. Build responsibility for internal and external

declarations 3. Efficiently exchange information within the Group

L3. IT SYSTEMS IN THE GROUP 1. Develop IT tools and systems to support

changes of business processes

• PM as a centre of management of profitability of an offer • Creating benefits for the customer and user at product level

• Quality and on-time delivery • Radical automation of production processes. • Synergies in production, purchasing and logistics

• Quick and efficient warranty and post-warranty service • Professional, technical support of clients and distributors

• Best sales teams and relations with customers in the Sector • Strong sales structures in strategic markets • Cross-selling in the Group

• Electronic measurement • Multienergy solutions • R&D Synergy • Joint competence centres • New approach to innovation

Business optimization and integration

• 3 segments ‐ Electricity, Water and heat and Gas 

• functional support from the Group level (HR, IT, Finance, etc.) 

 1

• a progressively defined common area of systems and solutions for all kinds of utilities 

  APATOR GROUP 

 APATOR GROUP 

 APATOR GROUP 

  COMMON FUNCTIONS 

 AND SYSTEMS 

  BU GAS 

 BU  EE 

  BU W&H 

 BU GAS 

 BU  EE 

  BU W&H 

 BU GAS 

 BU  EE 

  BU W&H 

  "business is in BU" 

(we respect business independence of business units) 

 “functional support is an advantage  for everyone” 

(more effective and efficient) 

 "systems should be made TOGETHER" 

(competences and priorities) 

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Financial results forecast.

20

Increase in revenues by PLN 500 million

1400 

 

Revenue 2017‐2023  SMART METERING, ELECTRONIC METERING‐ GAS 

SMART METERING, ELECTRONIC METERING, BILLING ‐ W&H 

1200 

500                          SMART METERING – EE 1000 

 800 

600 

 ACTIVE MANAGEMENT OF ENERGY UTILITIES NETWORKS   

 400 

200 

 

683     725     769  869      907                                                                900   DEVELOPMENT PROJECTS (LTE, 

CAT.‐M1, NB‐IOT, G3) 

SYSTEMS AND SOLUTIONS 0 

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 

Continued and discontinued operations New products and markets                                                              ENERGY EFFICIENCY 

 CAGR revenue ca. 8% LOCAL SMART GRID (CLUSTERS, 

EE COMMUNITIES) 

 

The indicated values are the objective of the Management Board and do not constitute a forecast of financial results 

 BUILDING STRONG SALES STRUCTURES ON STRATEGIC MARKETS 

Doubling EBITDA

EBITDA 2023 [PLN 220 mn] EBITDA 2017 [PLN 108 mn]

Discontinued operations 

PLN 3 million BU GAS 30 mn PLN 

BU EE 26 mn 

BU GAS 

BU EE PLN 

PLN 30 mn 100 mn  PLN 

BU W&H PLN 90 mn 

BU W&H 49 mn  PL NCAGR EBITDA ca. 13%

*EBITDA figures do not include costs not allocated to operating segments. 

**The indicated values are the objective of the Management Board and do not constitute a forecast of financial results 

• New products and markets • Growth of production capacity

(construction of an electronics centre and automation of mechanical production) • IT systems • Others

• Appropriations released from unused assets

• Financial loans • Developed resources

CAPEX total - PLN 380 mln

Inve

stm

ents

Fi

nanc

ing

sour

ce

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Investment increase

MAINTAINING THE DIVIDEND POLICY

Strategy management

The strategy will be reviewed and adapted annually.

STARTING 1st of

JANUARY 2019

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APATOR STRATEGY

 Revenue 1.4 bn PLN 

  EBITDA PLN 220 mn 

  CAPEX PLN 380 mn 

 Dividend policy without any changes 

Leader in Polish market 

Main supplier in DE and CEE 

  Electronic metering 

 Smart metering 

 Automation, robotization 

 Systems and solutions 

ASSET OPTIMISATION, MERGERS 

Legal Disclaimer

This publication has been prepared for information purposes only and is not intended to encourage 

to induce the purchase or sale of any financial instruments. The publication does not constitute an advertisement, 

 offer or proposal to purchase financial instruments. It uses sources of information, 

which APATOR S.A. considers reliable and accurate, but there is no guarantee that they are exhaustive and fully reflect 

the actual state of affairs. The publication may include forward‐looking statements that represent an investment 

risk or source of uncertainty and may differ materially from actual results. 

APATOR S.A. is not responsible for the effects of the decisions taken on the basis of this 

publication. The publication should not be treated as a sufficient source of knowledge to make an 

investment decision. The responsibility for the use of the information contained in the publication 

lies solely with the user of the publication. 

The publication is subject to protection under the Act on Copyright and Related Rights. 

Duplication, publication or its distribution requires written consent of APATOR S.A. 

Contact for investors and financial analysts 

  APATOR S.A. ri@apator.com 

 Katarzyna Mucha katarzyna.mucha@ccgroup.pl +48 697 613 712 +48 22440 1440 

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