Strategy 2019-2023

Grounds for the new strategy

Decentralisation of the electricity market and the digitalization process, new regulations related to improving energy efficiency, the EU Winter Package and the Power Market, as well as the growing importance of smart solutions and network automation, are changing the existing business models of companies operating in the energy media sector and imply a search for innovation. Apator Group, on the basis of high technical competence, gained experience and knowledge of needs of customers in the energy media distribution sector, wants to fully participate in the technological breakthrough and to perform for its customers the role of advisor and first choice partner.

Strategic objectives

Apator Group aims for:

• wincrease of the EBITDA to PLN 220 million in 2023. (average annual growth rate of about 9%),
• revenues from sales of PLN 1.4 billion in 2023. (average annual growth rate of approx. 10%).
  
  

The financial objectives will be achieved on the basis of maintaining a strong position on the domestic market, growth of shares on strategic markets (Germany, Central and Eastern Europe) and use of sales opportunities on other European markets. Apator will put emphasis on segments of customers with high sales potential and profitability and will develop sales of high-margin products, including intelligent solutions. Achievement of the assumed financial objectives will also be possible thanks to further improvement of operational efficiency and cost optimization through the use of synergy effects in the Group.

Apator Group in the perspective of the next 5 years predicts significant increase in the value of sales to foreign markets and maintenance of high share of export in total sales (over 50%).

The cumulative capital expenditures over the time horizon of the new strategy are assumed at the level of approximately PLN 380 million. The planned investments will be financed from the developed and released funds from unused assets, as well as loans. At the same time Apator Group maintains the implementation of the current dividend policy.

The strategy assumes a new approach to innovation through, among other things, the creation of competence centres for research and development in the Group, strengthening of R&D teams and Product Managers, as well as the creation of an additional fund for the development of innovative ideas.

Market ambitions

Apator Group assumes dynamic development of sales in Germany and gaining significant position on the markets of Central and Eastern Europe. On the Polish market - maintaining the position of the leader in the electrical engineering sector - Apator will focus on deepening the cooperation with key customers in order to develop innovative products, systems and services in the field of intelligent distribution networks for electricity, water, heat and gas. Strengthening of R&D teams will be accompanied by expansion of sales teams, especially in strategic markets. The key to success will be the organisation's ability to develop and deliver innovative technological products to the market (time to market).

Apator - “closer to the client”

According to the assumptions of the new strategy Apator Group wants to be even closer to the market and customers, offering its knowledge and competences, acting as a technological advisor who - in close cooperation with the customer - develops solutions tailored to its present and future needs.

Three specialised business segments (electricity, water and heat, and gas) will ultimately be supported by a gradually singled out common area of systems and solutions for all types of utilities. In times of demographic changes, shortage of specialists and necessity of cost optimization of energy companies, Apator puts emphasis on simplicity and intuitiveness of installation and use of solutions offered to its customers and possibility of remote service and management of energy infrastructure

Growth factors - “closer to the innovation”

In terms of offer building, growth will be driven by, among other things, the following:

• unew generation measuring devices with electronic - static measurement and multienergetic solutions,
• solutions and services for the implementation and maintenance of supervisory and metering systems and predictive management of network assets,
• smart metering, billing services, IoT technologies, systems for reading and management of measurement data based on modern communication technologies.

The objectives of the new strategy will also be achieved by further increasing the operational efficiency, therefore Apator Group adapts internal processes to new market challenges. The most important activities in this area are:

• further broad automation and robotization of production processes,
• expansion of the competence centre in the field of electronics production in Ostaszewo,
• optimisation of the Group (simplification of the capital structure, e.g. mergers, further development of common functions),
• reducing the level of costs through better use of group resources and competences (e.g. coordination of activities in the following areas: purchasing, inventories, logistics).