Contact
Monika Bartoszak
Head of Investor Relations
gsm: +48 510 183 993
e-mail: Monika.Bartoszak@lug.com.pl
Operations
LUG in 2015
New factory of the LUG S.A. Capital Group
At the turn of 2015 and 2016 the investment process was completed and the second factory of the LUG S.A. Capital Group was launched. The new factory is entirely devoted to the production of lighting solutions in LED technology.
The new facility, located in the Lubuskie Industrial and Technology Park in Zielona Góra, hosts the research and development centre and a complex of modern electronic production floors. Owing to the grouping of these two units in one place, the solutions developed by the research and development department will be quickly and effectively implemented in the LUG and FLASH DQ brand products.
Ultimately, the new research and production facility of the Company will house approx. 100 employees. The value of the entire investment project, implemented in the “design and build” formula, amounted to PLN 7.2 million. Possible further expenditures on the expansion of the machinery park in the new factory in 2016 are estimated at approx. PLN 4 million, but their implementation is conditional upon a favourable economic situation and satisfying financial results.
Fairs and conferences.pdf PL
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LIGHT 2015 Lighting Equipment Fair(25-27.03.2015)
The biggest lighting fair in Central and Eastern Europe and the only industry event in Poland that combines the presentation of latest products with a training concept
Perfect Home and Interior Conference in Łódź(30.09.2015)
A part of a series of conferences for architects and designers specialising in interior design
LED Lighting Congress Poland 2015(7-8.10.2015)
The first LED lighting congress in Warsaw that combines the formula of thematic lectures with information stands of lighting producers
Events.pdf PL
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Visit by Deputy Prime Minister Janusz Piechociński
On 11 March 2015 Minister of the Economy and Deputy Prime Minister Janusz Piechociński visited the headquarters of the LUG S.A. Capital Group, which is regarded as the region’s most dynamically developing company.More
Janusz Piechociński emphasised the great importance of the Polish lighting industry and expressed his hope that it would be possible to create systemic solutions for the Polish LED lighting sector. He singled out the LUG S.A. Capital Group as an example of a company with only Polish capital which was conquering further markets and achieving success as a result of good management.
Launching of a new communication channel with architects
As a result of close collaboration with Evermotion, a world’s leading portal offering tools for architects, designers and graphic artists, LUG published a collection of 3D models, 2D blocks, visualisations of luminaires in selected architectural spaces, catalogue cards and files containing the light distribution of selected LUG products.More
The publication of the list is part of a comprehensive programme of support for architects, whose purpose is the further development of cooperation between LUG and professionals from the world of architecture and design all over the world.
Lighting solutions for the metro in Sao Paulo
On 11 November 2015, LUG do Brazil Ltda., a subsidiary of the LUG S.A. Capital Group (a subsidiary in which the Issuer holds 65% of shares), signed a contract for the supply of lighting solutions for three modernised metro lines in Sao Paulo, Brasil, as reported by the Issuer in Current Report No. 25/2015.More
Information on the other party to the contract and on the contract value is subject to a confidentiality clause. Under the contract, LUG do Brazil Ltda. will deliver, by 30 November 2016, specialised lighting solutions to be used in the tunnels of the first, second and third metro line in Sao Paulo. The first supply was delivered at the end of November 2015.
In 2015, LUG presented 3 new product catalogues:
LUG brand catalogue - the LED technology forces an increased pace of work on the market which, combined with LUG’s development, resulted in the preparation and issuing of two catalogues in the period of 6 months. The character of the catalogues directly refers to the target group to whom the products are addressed. In addition to technical data, provided in a transparent manner, the LUG catalogue also presents how our products have been developed, from a drawing to a finished product - i.e. the art of creation.More
LUGBOX brand catalogue – this is a catalogue prepared with a view to its practical use by electrical installers and wholesalers. We have optimised the format and ensured that it includes practical elements, such as visualisation of the simplicity of assembly.
Flash&DQ catalogue – presents a design in its format and content. The catalogue has been developed to fully reflect the nature of the brand and the target group for whom it was created. It is a combination of design and excellent technical parameters.
Business environment
International forecasts
International forecasts.pdf PL add to clipboardGlobal lighting market
Segments
2016
1 bln EUR
backlightning
1 bln EUR
18 bln EUR
automotive lighting
18 bln EUR
72 bln EUR
general lighting
83 bln EUR
2020
Forecast value of the global lighting market in 2020
100 bln EUR
LED Market
LED lighting is the most energy-efficient, all-round and fastest in the lighting branch
25,7 bln USD in 2015
- Europe
- China
- North America
- Asia and the Pacific
- Japan
- Latin America
- Middle East and Africa
Global LED lighting market (Source: LED Global LED lighting market to reach US $25.7 billion in 2015” LEDinside, 4.12.2014r.)
Industry development factors
Development factors.pdf PL add to clipboard19%
total electric energy usage for lighting purposes in the world
Goal of the "Europe 2020" strategy 20% better electric efficiency untill 2020
Population growth
Development of new technologies
Urbanisation growth
Increase in the LED market value
Ageing of lighting installations
Climate changes
LUG in the market
LUG in the market.pdf PL add to clipboardIn 2015, the Company sold its products to 67countries
- Algeria
- Saudi Arabia
- Austria
- Belgium
- Belarus
- Brazil
- Germany
- Denmark
- Egypt
- Estonia
- Ethiopia
- Finland
- France
- Greece
- Spain
- Netherlands
- Iraq
- Iran
- Ireland
- Iceland
- Israel
- Jordan
- Qatar
- United Arab Emirates
- Kazakhstan
- Colombia
- Kuwait
- Lebanon
- Liechtenstein
- Lithuania
- Luxembourg
- Latvia
- Macedonia
- Malaysia
- Malta
- Morocco
- Mauritius
- Norway
- New Zealand
- Oman
- Palestine
- Poland
- Portugal
- South Africa
- Russia
- Romania
- Bulgaria
- Croatia
- Slovakia
- Slovenia
- Cyprus
- Czech Republic
- Switzerland
- Sweden
- Tunisia
- Turkey
- Uganda
- Bahrain
- Ukraine
- USA
- Hungary
- Great Britain
- Bosnia and Herzegovina
- Italy
- Curacao Island
- South Korea
Representative offices: Berlin, London, Paris, Dubai, Sao Paulo
Development strategy
Development strategy.pdfadd to clipboardIssuer's development directions for 2013 and consecutive years have been presented in Grupa Kapitałowa LUG S.A. Strategy, published with operational EBI report 15/2013 on April 4th, 2013
The imperative strategic goal of Grupa Kapitałowa LUG S.A. for years 2013-2016 is development in accordance with the ideal of energy eficiency and CO2 emission reduction.
This goal is being fulfilled based on 5 primary areas, that are strategic fundaments.
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Business model
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R&D
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Markets and segments
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Product
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Technology
The aesthetic values of semiconductor lighting (LED and OLED) and a nearly unlimited design freedom contribute to the separation of new business and trade models. The model being developed by the LUG S.A. Capital Group comprises consultation and sales centres functioning on the most promising markets of the Issuer’s operations, in particular: Germany, France, the UK, the Middle East, Brazil, Russia and Poland. Competences developed in the consultation and sales centres will support the trend of departing from simple sales of fixtures and moving towards rendering comprehensive consultation and sales services.
The key role in this strategy will be played by the Development Department, Laboratory, Electronic Department and Flash DQ Department, established on the strong foundations of lighting, electronic and design knowledge. The synergy of youth and experience combined with competences built by the team of employees, together with modern photo-optic and lighting technique tools, determine the competitive advantage of the Issuer.
The strategic markets of the LUG S.A. Capital Group are divided into the following areas: Poland, Europe, Russia and Brazil. Development impulses in the lighting sector, identified by the Management Board of LUG S.A., enabled the following objectives to be adopted: an increase in consolidated revenues from exports at the level of 100 per cent and an increase in consolidated revenues from domestic sales at the level of 30 per cent by 2016. Besides, two additional objectives were set for the Brazilian subsidiary company: development of the sales structure and achieving the profitability threshold in 2014-2016.
The key product in the development of the LUG S.A. Capital Group will be lighting fixtures and systems based on LED technology. Further development of the LED products will be the implementation priority of the R&D Department. Their share in the sales structure in 2016 should reach at least 40 per cent.
Two priorities were established in the “Technology” area, which will determine the development of the Company in 2013-2016. The first pertained to the extension of the existing factory and launching of a new production line for SMD assembly. This investment was completed in 2013 and its total cost was PLN 2.19 million. The second priority is the construction of the new production plant, which is valued at PLN 6 million. The first stage of the investment, namely the construction of the production and warehousing part, commenced in November 2014. This stage was completed according to plan, in mid-2015. The next stage will involve the construction of administrative facilities.
Products
The Company offers a full range of solutions dedicated to lighting the interiors of buildings and external areas for commercial, industrial and architectural use. The assortment currently covers over 600 diverse kinds of luminaires.
The Company’s portfolio comprises 3 product brands.
Light shapes working and living conditions. It influences emotions, moods, perception and productivity. It can stimulate and inspire, and therefore properly selected lighting is a key factor.“
LUG brand
LUG brand products are lighting solutions for each kind of building. They come into being through a synergy of innovativeness, functionality, energy-saving and design. The well developed customisation section enables standard versions of top-class lighting products to be adapted to customers’ unique needs. The Company’s own possibilities of producing LED light sources enable untypical solutions to be created on the basis of this energy-saving technology.
LUG brandlink opens in a new window
FLASH DQ brand
FLASH DQ is a brand of exclusive fixtures presenting a unique and modern approach to luminaires, expressed not only in the exceptional designs but also in the use of untypical materials to realise bold designs. The technology employed in LED fixtures is based on the latest achievements of LUG’s Research and Development Department, where LED light sources produced by LUG are constantly being perfected.
Flash DQ brandlink opens in a new window
LUGBOX product line
LUGBOX is a line of fixtures combining simplicity of assembly, excellent light parameters and an unrivalled price. LUGBOX is the best replacement for traditional lighting systems in various kinds of commercial and industrial buildings.
LUGBOXlink opens in a new window
Outline of luminaires production
Machine parklink opens in a new windowCompletions of the LUG brand
Corporate governance
Corporate governance.pdf PL add to clipboardThe LUG S.A. Capital Group pays great attention to granting free access to information about the Issuer to all shareholders and to respecting their rights, regardless of the size of their block of shares.
In order to prove transparency of the activities and provide the investors and shareholders with access to reliable information necessary, in view of the current situation on financial markets, for making reasonable investment decisions, LUG S.A. observes the rules of corporate governance included in Appendix No. 1 to Resolution No. 795/2008 of the Management Board of the Stock Exchange of 31 October 2008, “Good Practices of Companies Listed on the NewConnect”, amended by Resolution No. 293/2010 of the Management Board of Giełda Papierów Wartościowych w Warszawie S.A. (Warsaw Stock Exchange) of 31 March 2010 on amendment of the document “Good Practices of Companies Listed on the NewConnect”.
The company should apply a transparent and effective information policy, using traditional methods and modern technologies, ensuring quickness, security and extensive access to information.“
Risk factors
Risk factors.pdf PL add to clipboardThe companies functioning within the LUG S.A. Capital Group actively manage operating and financial risks in order to optimise all business processes taking place inside the group and maximise its market value.
Each of the companies is charged only with selected types of risks, comprising together a comprehensive presentation of the risks faced by the LUG S.A. Capital Group, grouped into two categories: risk factors connected with the surroundings and risk factors connected with operations.
Risk management
Risks connected with operations
Risks connected with surroundings