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Letter from the President

Home page Introduction Letter from the President

Ladies and Gentlemen,
Dear Shareholders,

It is my great satisfaction to present to you the financial statements and the report of the Management Board on the activity of ELEKTROBUDOWA SA which sum up the results and achievements of the Company in 2016.

I refuse to recognize the existence of impossibilities” – the famous quote of Henry Ford is becoming particularly applicable to the pursuit of accomplishment of the set goals in the present times, when the conditions of business management are becoming more and more demanding while the business environment less and less predictable.

2016 was a remarkable year for ELEKTROBUDOWA SA – on 9 February 2016 it was the 20th anniversary of the Company’s listing on the Warsaw Stock Exchange. Many important events have happened throughout the time that has passed ever since. From the stock exchange debut until now the Company’s share price rose nearly 520 per cent, while the dividend paid in those years totaled over PLN 180 million.

Last year we established long-term goals for ELEKTROBUDOWA SA in the new Strategy for the years 2016 – 2018. The strategy was defined as a strategy of building up a potential for further growth and of strengthening our market position. In our consistent efforts to fulfil the strategic assumptions defined in the document, we have undertaken a number of actions to bring the company closer to the accomplishment of the goals.

Changes we have made in the structure of ELEKTROBUDOWA SA and in the Group, and also the decisions taken in 2016 have had a significant impact on the Company’s results; our revenue from the foreign markets has increased and the performance in the second half of the year allowed us to make up for the drop in demand faced in the beginning of the year.

In 2016 there was successful commissioning of the biggest ever project executed by the Company: construction of a new 65MWe heat generation unit with fluidized bed boiler, heating and condensing turbine and balance of plant in EC Tychy. The project, despite its great complexity, was completed by the deadline. ELEKTROBUDOWA SA had overall responsibility for the whole project. 2016 was also the first year ever in the history of the Company of installation of its own OPTIMA – 24 medium voltage switchgear consisting of two section. The switchgear has been installed in the Śmiłowo HV/MV substation constructed by ELEKTROBUDOWA SA.

Currently the Company is performing works at the biggest electric power construction project in Europe, at the site of Opole Power Plant. The works include installation of cable trays and delivery and installation of MV and LV cables. The Company is also supplying busducts and MV and LV switchgear for the project. Also in 2016, the Company was awarded an order from the fuel sector, for turnkey engineering, procurement and construction of the Metathesis Plant.

Having solid business foundations ELEKTROBUDOWA SA successfully adapted to the market changes and strengthened its position in the market, what finds a proof the last year’s performance results.

Despite the demanding economic environment we were able to generate a healthy financial result. The Company ended the year with net sales revenue on the level PLN 929 million, whereas the earned net profit amounted to PLN 53.1 million.

 I am convinced that it is an important signal for all of us, indicating the Company’s sound position, what finds a proof in the steady value of shares of ELEKTROBUDOWA SA on the Warsaw trading floor. Pursuant to the adopted dividend policy, the Management Board is recommending the payment of 2016 dividend to the Shareholders.

Building a strong and stable company with a brand recognizable all over the world does not release us from the responsibility for our impact on the environment we operate in, what is proved by our long presence in the Global Compact initiative. In 2016, a Sustainable Development Report which follows the GRI methodology was issued for the first time in the history of ELEKTROBUDOWA. The Report has summed up our operation and is our commitment to increasing our efforts relating to implementation of the idea of corporate social responsibility.

ELEKTROBUDOWA SA has been appreciated in the Top Employers of Silesia Voivodship competition and has been included in the group of the best employers in this area as the company which is combining the contribution to the economic development of the region with an important role in the labour market.

I am pleased to inform that in 2016 company’s involvement in environmental ethical, social, employee and corporate governance compliance issues resulted in including the Company in the 10th edition of a prestigious ranking of socially responsible companies, as it was in the previous years. The Company was again highly appreciated by the capital market participants.

All credit for the Company’s achievements in the past year goes to all our employees, as accomplishment of the set goals would not be possible without their creativity and commitment.

On behalf of the Management Board, I would like to thank our Shareholders, Customers, Employees and Business Partners for their support for all actions and initiatives carried out by ELEKTROBUDOWA SA and for their fruitful cooperation, many-year confidence and loyalty they display towards the Company.

Yours truly 

Janusz Juszczyk

President of the Management Board

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