It means the amount of energy in the system stays the same it just transfers or changes form. As a example, think of a light bulb which when given 100 watts of electrical energy will convert 60 watts to energy in the form of light and 40 watts to energy in the form of heat.
This is a hypothetical scenario, idk the real efficiency of a light bulb is low but not exact numbers.
then you can write equations for energy, Luke this one.
100 watts electric = 60 watts light + 49 watts heat