Budimex Sa · GPW:BDX
Budimex Sa — Budimex S A Shs — Q3 2024 Earnings Presentation
39 slides from Budimex Sa's earnings presentation, Oct 28, 2024
Slide 1: Investor presentation for 3 quarter of 2024
Investor presentation for 3 quarter of 2024
Slide 2: Order backlog and contracting as a key KPI
Order backlog and contracting as a key KPI for the first half of the year Record order Budimex among the Contracting 8,2 bn Signed contracts in backlog of 15,8 bn Group EBIT in Q3 at PLN in 09'24 (vs 4,5 the road segment largest CIT payers in PLN ( 12 bn PLN 7,8% (vs 6,9%) bn PLN in 09'23) worth 4,4
Slide 3: Agenda
Agenda Macroeconomic background Financial results of Budimex Group Backlog & contracting FBSerwis & Mostostal Kraków Market and outlook CSR & ESG
Slide 4: Macroeconomic background
Macroeconomic background GDP dynamics and CPI inflation in Poland (%, y/y) In 2024, GDP growth is expected to exceed 14,4 3%, while keeping inflation below 4%. 11,4 GDP dynamics CPI inflation 4,8 5,4 4,7 5,7 5,1 5,1 3,0 3,8 3,1 3,4 5,2 Domestic inflation, according to the CSO's 2,0 1,6 2,3 0,2 3,7 2
Slide 5: Macroeconomic background
Macroeconomic background PMI Index for Poland In September, the PMI rose to 48,6 points 57,2 from 47,1 points at the beginning of the 52,8 51,9 53,4 52,7 year. This is the 29th consecutive month 47,4 48,3 48,0 48,6 that the index level has remained below 43,0 43,9 50 points. 31,9 I… III V VII IX XI
Slide 6: Situation of the construction industry
Situation of the construction industry Price dynamics of construction and assembly production (%, y/y) Construction output prices rose 5.3% y/y in 15,2 September. In the January-September 10,9 period, the index rose 6.5% y/y, while the 10,4 8,2 various segments were as follows: 7,8 4,9 5,3 construct
Slide 7: Residential market
Residential market Average housing prices per 1m2 (tys. PLN). Warszawa Pozostałe TOP 5 miast 17,5 17,7 17,9 16,8 13,5 13,5 13,6 14,5 14,9 16,1 13,6 14,0 14,3 Uncertainty over housing support programs. The 13,1 12,0 12,7 13,3 government has announced the possibility of 10,4 10,6 10,8 11,2 11,5 transf
Slide 8: Construction company margins by size
Construction company margins by size Margins in the market have been stabilized through the introduction of valorization mechanisms. 11,9% 11,2% 11,4% 10,6% 9,9% 9,8% 11,1% 9,2% 9,4% 8,7% 8,8% 9,6% 8,2% 8,3% 7,2% 7,5% 7,3% 7,4% 7,3% 7,1% 6,7% 6,5% 6,7% 6,3% 5,3% 5,6% 4,9% 5,2% 5,1% 4,1% 4,1% 4,1% 4,
Slide 9: Situation of the construction industry - stabilisation and prospects for improvement
Situation of the construction industry - stabilisation and prospects for improvement Percentage of construction companies considering labour Percentage of construction companies considering shortage as a barrier to business (%) employment costs as a barrier to business (%) 69,6 71,4 70,4 72,8 67,6 7
Slide 10: Prices of selected raw materials
Prices of selected rawmaterials 220 1Q’10 = 100 2Q’20 = 100 215 340 1Q’10 = 100 2Q’20 = 100 200 300 180 260 160 151 220 140 180 166 Concrete 120 140 149 Steel 100 80 100 60 60 3Q10 3Q11 3Q12 3Q13 3Q14 3Q15 3Q16 3Q17 3Q18 3Q19 3Q20 3Q21 3Q22 3Q'233Q24 3Q10 3Q11 3Q12 3Q13 3Q14 3Q15 3Q16 3Q17 3Q18 3Q19
Slide 11: Agenda
Agenda Macroeconomic background Financial results of Budimex Group Backlog & contracting FBSerwis & Mostostal Kraków Market and outlook CSR & ESG
Slide 12: Budimex Group is not only Budimex SA
Budimex Group is not only Budimex SA Renewable Construction Foreign markets Services Others Energy sources
Slide 13: Results from operations (Q1-Q3)
Results from operations (Q1 –Q3) Revenues EBIT Net profit (M PLN) (M PLN) (M PLN) 6 994 -6,9 % 6 510 6,9% 7,8% 6,4% 6,9% + 5,4 % -0,7% 508 482 450 447 YTD'23 YTD'24 YTD'23 YTD'24 YTD'23 YTD'24
Slide 14: Financial results by segment
Financial results by segment Construction segment The decline was due to lower production in rail construction (realization of the old portfolio) Revenues (M PLN) EBIT (M PLN) and the base effect in general construction. In contrast, a record order backlog will support 6,1% 6,7% 7,6% sales in future
Slide 15: Evolution of the net cash position
Evolution of the net cash position Net cash position in Budimex Group (bn PLN) 3,83,9 3,3 3,1 3,0 2,82,82,7 2,9 2,7 2,6 2,4 2,3 2,2 2,1 2,0 1,9 2,0 1,7 1,8 1,7 1,61,6 1,5 1,4 1,41,4 1,4 1,4 1,2 1,2 1,2 1,2 1,1 1,0 0,8 0,50,5 0,5 0,4 0,1 09'14 09'15 09'16 09'17 09'18 09'19 09'20 09'21 09'22 09'23 09'
Slide 16: Budimex Group dividend history
Budimex Group dividend history Budimex has regularly shared profit with shareholders for 16 years PLN/akcje In 2021, Budimex paid a dividend from the 2020 profit and an ∑= 215,5 PLN advance dividend for 2021, which included the profit from the 5 498 MLN = sale of Budimex Nieruchomości shares. /share
Slide 17: Agenda
Agenda Macroeconomic background Financial results of Budimex Group Backlog & contracting FBSerwis & Mostostal Kraków Market and outlook CSR & ESG
Slide 18: Signed contracts (bn PLN)
Signed contracts (bn PLN) 9,0 8,2 0,6 7,9 8,2 0,2 0,6 7,0 0,2 1,7 0,0 1,9 1,4 0,8 2,9 0,2 0,3 2,4 1,8 4,5 1,5 0,2 2,2 0,5 0,7 0,1 0,5 1,2 0,9 0,5 0,7 0,7 4,1 0,4 4,4 2,9 3,1 3,2 1,9 '20 '21 '22 '23 Q1-Q3'23 Q1-Q3'24 Roads Hydrotechnical Railway Industrial General construction Residential
Slide 19: Order backlog (bn PLN)
Order backlog (bn PLN) 15,8 Maturity of backlog (%) 0,8 5% 13,3 12,7 13 13,1 2% 6% 0,2 2% 2,8 18% 0,3 0,3 1% 0,8 22% 0,4 3% 7% 14% 22% 1,8 2,9 3,5 2,9 2,5 13% 13% 6% 2% 16% 1,1 15% 0,8 8% 0,3 0,5 0,6 2,2 3% 4% 32% 2,4 17% 25% 4 3,3 0,9 33% 1,1 6% 7% 0,8 3% 0,4 8,8 27% 7% 55% 39% 6,5 49% 5 5,6 4,7 37
Slide 20: Contracts pending as of 09'24 (bn PLN)
Contracts pending ad of 09’24 (bn PLN) Contracts pending (bn PLN) 13,4 13,3 5,0 4,8 10,1 Rail Baltica Foreign Poland 9,5 9,1 4,8 3,2 2,7 4,8 6,1 4,8 0,5 4,4 4,6 0,5 3,4 0,5 0,5 2,7 5,7 5,2 5,8 5,3 1,6 0,4 4,7 3,9 4,1 4,3 2,9 2,3 1,6 03'22 06'22 09'22 12'22 03'23 06'23 09'23 12'23 03'24 06'24 09'24 T
Slide 21: Agenda
Agenda Macroeconomic background Financial results of Budimex Group Backlog & contracting FBSerwis & Mostostal Kraków Market and outlook CSR & ESG
Slide 22: FBSerwis - financial results
FBSerwis - financial results 9,9% 13,2% 17,4% 19,4% 16,8% 16,7% 15,2% 16,6% 15,9% 903 780 832 675 % EBITDA 131 139 137 610 650 118 108 107 Revenues (M PLN) 498 EBITDA (M PLN) 86 371 261 49 26 '17 '18 '19 '20 '21 '22 '23 09'23 09'24 '17 '18 '19 '20 '21 '22 '23 09'23 09'24 -0,1% 3,9% 8,9% 12,2% 10,8%
Slide 23: New contracts and key offers, order backlog
New contracts and key offers Order backlog Winning bid for two tasks for the management of mixed municipal waste from the City of Łódź with a net value of 52.4 M PLN. 72,0 Signed contracts for maintenance of cleanliness and order in the Wroclaw Municipality: o Old Town: net 35.6 M PLN (with option u
Slide 24: Mostostal Krakow - financial results
Mostostal Krakow - financial results** 610 Cash Debt NTP 544 488 426 94 77 Revenues (M PLN) 323 66 Net cash (M PLN) 275 216 48 46 42 32 94 78 66 52 49 39 36 -7 -5 -2 2019 2020 2021 2022 2023 09'23 09'24 2019 2020 2021 2022 2023 09'23 09'24 37,2 535 531 416 Contracting (M PLN)* 401 407 379 332 19,3 1
Slide 25: Development of Foreign Markets in MK
Development of Foreign Markets in MK Swedish market:: ➢December will see the completion of the Avici Stockholm contract - delivery and installation of 1500 tons of steel structure ➢The profitability achieved and the prospect of development, will result in the systematic expansion of operations, in t
Slide 26: Agenda
Agenda Macroeconomic background Financial results of Budimex Group Backlog & contracting FBSerwis & Mostostal Kraków Market and outlook CSR & ESG
Slide 27: Cohesion Fund & CEF Programme (bn EUR)
Cohesion Fund & CEF Programme ( bn EUR) European Funds for Infrastructure, Climate, Environment 2021-2027 (FENiKS) programme (bn EUR) Poland remains the largest 26,2 24,2 beneficiary of the Cohesion Fund. Infrastucture 7,5 10,2 4,8 Poland met the last three Railway conditions necessary for the full
Slide 28: Recovery Fund (bn EUR)
Recovery Fund (bn EUR) Components and their value (bn EUR) 25,3 bn REPowerEU EUR 59,8 bn EUR: 15,4 bn • 25,3 bn EUR non- Green energy and reduction of energy intensity EUR repayable grants • 34,5 bn EUR loans 6,5 bn Green, smart mobility EUR 4,4 bn Economic resilience and competitiveness EUR 4,4 bn
Slide 29: Energy transition - KPEiK
Energy transition- KPEiK PSE capital expenditures (bn PLN) New KPEiK scenario RES in the electric power industry - installed capacity (GW) Accumulated Average PV 54,9 46,2 onshore poper pl. 4,6 29 25,8 offshore power pl. 1,5 2,0 19 17,9 0,6 0,7 12 10,1 Biomass, biogas and 7,7 10,2 5,9 biomethane pow
Slide 30: Road market
Road market Value of signed contracts in the domestic road market (bn PLN)* 18,7 In Q3 2024, the General Directorate for National Roads and Motorways (GDDKiA) announced 7 tenders for PLN 3,6 15,9 14,6 13,6 billion (vs. 4 tenders in Q3 2023 for PLN 2,3 billion) *. 10,7 10,4 Budimex in 2024 submitted
Slide 31: Rail market
Rail market Value of signed contracts in the domestic rail market (billion PLN)* 14,8 13,1 9,5 10,3 7,4 PKP PLK has begun a cycle of increased tender investments, as announced. The market expects a minimum of PLN 10 billion in 3,4 new tenders announced this year 2,8 0,9 1,3 0,2 '15 '16 '17 '18 '19 '
Slide 32: CPK - plan update (bn PLN)
CPK – plan update (bn PLN) Current status Previous plan from 2019 New plan since 06’24 (without indexation) Decision to increase capacity at Chopin and Modlin airports 8,3 162 million PLN of EU funding (CEF) for the preparation 25,8 30,1 of project documentation for the section Sieradz Airport 42,7
Slide 33: Investment in Renewable Energy Sources (RES)
Investmentin Renewable Energy Sources (RES) Magnolia project (2 turbines up to 7 MW): o o the first kWh was produced in September bxf energia o o current production > 17GWh o o company established by Budimex SA o o sale of energy in a PPA contract to an external (51%) and Ferrovial Energy Infrastruc
Slide 34: Budimex Mobility charging stations
7 5 37 o Budimex Mobility have 28 170 charging stations in 21 12 2024 32 2 POWER TO POWER ABOVE 7 2 o By the end of 2026 > 22 kW 30 kW 1 standard fast 460 stations in major 11 urban centers 6 Total = 170 Running stations divided into voivodeships
Slide 35: Agenda
Agenda Macroeconomic background Financial results of Budimex Group Backlog & contracting FBSerwis & Mostostal Kraków Market and outlook CSR & ESG
Slide 36: Environmental objectives E
Environmental objectives E Striving for: 100% of the Currently 86% of the electricity procured from the market for energy obtained from the Budimex comes from RES market comes from RES Currently 73%* of soil and land recycling and 53%* of non-hazardous waste Recycling and recovery of 70% of soil and
Slide 37: Social responsibility objectives S
Social responsibility objectives S Promotional campaigns (webinars, debates, competitions, articles) Support for diversity Student internships - 24 students from Ukraine HR Development Programmes o Academies: Manager, Engineer, Foreman Contractor, Programs: Master Improving competences Synergies, Mu
Slide 38: Goals in the corporate governance area G
Goals in the corporate governance area G Etics awareness campaignes Ethics in Budimex Group o 1,439 participants were trained as part of the following projects Welcome to the Group, Contract Manager Academy, Young Engineer Academy, Compliance Workshop in the field of managing conflict of interest. C
Slide 39: In 3 quarter of 2024
In 3 quarter of 2024 106 M PLN EBIT +9 bn PLN 12% 16 years In FBSerwis i Mostostal Kraków Contracts pending Gross margin Dividend payments subsidiaries 15,8 80MW 2,4 bn PLN Net cash 7,8% bn PLN RES projects owned EBIT margin Backlog