Budimex Sa · GPW:BDX
Budimex Sa — Budimex S A Shs — FY2023 Earnings Presentation
45 slides from Budimex Sa's earnings presentation, Mar 13, 2024
Slide 1: Investor presentation for 2023
Investor presentation for 2023
Slide 2: Summary of 2023
Implementation of Summary of 2023 strategic plans in 2023 Record financial results from continued operations Increasing scale in neighboring markets Revenues EBIT Net cash 9,8 8,0 % 3,8 Reconstruction of backlog on the railway bn PLN bn PLN market Increased competences in RES (BXF Energia) Contracti
Slide 3: Intense beginning of 2024
Intense beginning of 2024 Five tenders for S10, JV on residential The most 1,5 GW Budimex will be tender for S12 and market advantageous offer of analysed RES promoted to WIG20 DK35 in the Czech in the PSE tender for projects Republic 189 M PLN
Slide 4: Budimex history on WSE
Budimex history on WSE 1000 History of stock quotes on WSE Debut in 1995 - one of the oldest 800 companies on the WSE 600 400 Return to WIG20 after a 20-year break 200 9,49 0 Budimex is also included in the MSCI Poland, FTSE Russell and WisdomTree indices Budimex has regularly shared profit with sha
Slide 5: Agenda
Agenda Macroeconomic background Financial results of Budimex Group Backlog & contracting FBSerwis & Mostostal Kraków Market and outlook CSR & ESG
Slide 6: Macroeconomic background
Macroeconomic background GDP dynamics and CPI inflation in Poland (%, y/y) GDP in Poland according to CSO preliminary 14,4 estimate for 2023 increased by 0.2% compared to 2022, which is lower than expected. 11,4 GDP dynamics Inflation (CPI) 5,4 5,7 5,1 4,8 4,7 4,6 3,1 5,1 2,9 3,5 3,4 3,7 2,0 1,6 2,3
Slide 7: Macroeconomic background
Macroeconomic background PMI indicator for Poland In December, the PMI fell to 47,4 points from 59,4 48,7 points recorded a month earlier. This is the twelfth consecutive month below the base 52,8 53,7 53,8 54,552,7 50,8 51,7 48,5 48,3 level of 50 points. 48,2 47,2 48,5 48,747,4 44,4 45,6 45,1 43,9
Slide 8: Components of construction and assembly production
Components of construction and assembly production Construction and assembly production dynamics (%, y/y, constant prices) Construction of buildings Civil engineering Specialised construction activities 9,3% 11,7% 11,3% 5,4% 2,4% 2,6% 2,9% 1,3% 2,8% 2,8% 2,7% -2,0% -1,2% -1,3% -4,9% '19 '20 '21 '22
Slide 9: Construction companies margin by size
Construction companies margin by size Margins in the market have been stabilised by the introduction of valorisation mechanisms. Data: CSO (December 2023)
Slide 10: Situation of the construction industry at the end of 2023
Situation of the construction industry at the end of 2023 - stabilisation and prospects for improvement Percentage of construction companies considering Percentage of construction companies considering shortage employment costs as a barrier to business (%) of materials as a barrier to business (%) 6
Slide 11: Prices of selected raw materials
Prices of selected raw materials 1Q’10 = 100 2Q’20 = 100 340 220 1Q’10 = 100 2Q’20 = 100 200 300 193 180 260 160 220 140 136 180 171 Concrete 120 100 140 153 Steel 80 100 60 60 4Q10 4Q11 4Q12 4Q13 4Q14 4Q15 4Q16 4Q17 4Q18 4Q19 4Q20 4Q21 4Q22 4Q23 4Q10 4Q11 4Q12 4Q13 4Q14 4Q15 4Q16 4Q17 4Q18 4Q19 4Q2
Slide 12: Agenda
Agenda Macroeconomic background Financial results of Budimex Group Backlog & contracting FBSerwis & Mostostal Kraków Market and outlook CSR & ESG
Slide 13: Budimex Group is not only Budimex SA
Budimex Group is not only Budimex SA Construction Foreign markets Renewable Services Others energy sources
Slide 14: Results from continuing operations – preliminary results for 2023
Results from continuing operations – preliminary results for 2023 Revenues EBIT Net profit (M PLN) (M PLN) (M PLN) +13,7% 9 802 6,5% 8,0% 6,2% 7,5% 8 619 +38% 781 35% 738 562 534 FY'22 FY'23 FY'22 FY'23 YTD'22 YTD'23
Slide 15: Financial results by segments
Financial results by segments Construction segment The high level of the backlog and its diversification, Revenues (M PLN) EBIT (M PLN) combined with favorable weather conditions, 6,1% 6,0% 8,0% allowed for an increase in revenues by over 13.8% 8 902 7 282 7 821 714 446 471 2021 2022 2023 2021 2022
Slide 16: Evolution of the net cash position – preliminary results for 2023
Evolutionof the net cashposition–preliminaryresultsfor 2023 Net cash position in Budimex Group (bn PLN) 3,8 3,3 3,1 3,0 2,82,82,7 2,9 2,7 2,3 2,2 2,1 2,0 1,9 2,0 1,7 1,8 1,7 1,6 1,6 1,5 1,4 1,4 1,4 1,4 1,4 1,2 1,2 1,2 1,2 1,0 1,1 1,0 0,8 0,6 0,50,5 0,5 0,4 0,1 12'14 12'15 12'16 12'17 12'18 12'19 12'
Slide 17: Budimex Group dividend history
Budimex Group dividend history Budimex has regularly shared profit with shareholders for 15 years PLN/akcje In 2021, Budimex paid a dividend from the 2020 profit and an ∑= advance dividend for 2021, which included the profit from the 179,8 PLN 4 587 MLN = sale of Budimex Nieruchomości shares. /share
Slide 18: Agenda
Agenda Macroeconomic background Financial results of Budimex Group Backlog & contracting FBSerwis & Mostostal Kraków Market and outlook CSR & ESG
Slide 19: Contracts signed (bn PLN)
Contracts signed (bn PLN) 9,0 0,6 7,9 8,3 7,5 0,2 7,0 0,2 1,7 0,8 0,0 1,9 0,8 2,9 1,6 0,2 2,4 0,5 1,8 0,2 2,2 0,0 0,5 0,7 0,5 0,9 0,5 3,2 0,7 4,1 2,9 3,1 3,2 0,2 1,2 '19 '20 '21 '22 '23 Roads Hydrotechnical Railway General construction Residential Industrial
Slide 20: Contracts pending with the greatest potential in years
Contracts pending with the greatest potential in years Contracts pending (bn PLN) 13,4 13,3 5,0 4,8 Rail Baltica Foreign Poland 3,2 2,7 6,1 0,5 4,4 4,6 3,5 0,5 3,4 0,5 3,3 0,5 2,7 2,0 5,7 5,2 5,8 1,6 0,4 3,5 1,1 3,9 4,1 3,3 2,9 2,0 2,3 1,1 1,6 03'21 06'21 09'21 12'21 03'22 06'22 09'22 12'22 03'23 06
Slide 21: Contracts pending (bn PLN)
Rail Baltica Contracts pending (bn PLN) 4 825 1% 2% 1% Infrastructure 49% 5 x S10 Railway 47% Mostostal 1% 2 321 S 12 47% 13 313 49% Buildings 2% 368 Industry 1% 965 D11 Trutnow LK 104 Limanowa - 2 077 650 Kłęczany D35 Džbánov - Litomyšl
Slide 22: Summary of offers submitted on the Czech and Slovak markets
Summary of offers submitted on the Czech and Slovak markets Offers submitted on the Czech and Slovak markets (bn PLN) 3,1 3,5 ∑ = 11,5 bn PLN Czechia Slovakia 1,7 1,6 1,1 0,5 I - XII 2021 I - XII 2022 I - XII 2023 Foreign backlog (M PLN) Signed To be signed 650 Rail Baltica (LV) D1 126 Bratysława D1
Slide 23: Backlog (bn PLN)
Backlog (bn PLN) 220 active contracts at the end of 2023 Backlog maturity (%) 13,0 13,3 13,1 12,7 0,2 2% 0,3 2% 10,8 0,8 6% 0,3 2% 2,9 3,5 26% 2,9 47% 1,8 22% 0,7 7% 14% 22% 1,1 0,8 0,5 0,3 1,6 3% 2% 15% 8% 6% 2,2 0,8 2,4 3,3 17% 4% 4,0 32% 18% 25% 0,9 3,6 1,1 7% 23% 33% 0,8 6% 9% 0,4 3% 0,5 7% 6,5
Slide 24: Road market
Road market Value of the lowest bids on the domestic road market (bn PLN) 20,3 18,2 17 In 2023, GDDKiA opened bids in 37 tenders, which amounted to 17 bn PLN. 13,6 13,7 10,7 9,2 Budimex submitted the lowest bid in 10 competitions for a total 3,8 amount of over 3,5 bn PLN 1 '15 '16 '17 '18 '19 '20 '2
Slide 25: Railway market
Railway market Value of the lowest bids on the domestic railway market (bn PLN) 12,5 In 2023, PKP PLK opened bids in 18 tenders amounting to 10 bn 12,1 PLN. 10,9 10 8,9 Budimex submitted the lowest bid in 3 competitions for a total amount of over 2,4 bn PLN. 5,9 4,8 PKP PLK signed 5 contracts out of
Slide 26: Energy segment with good prospects
Energy segment with good prospects PSE's capital expenditure (bn PLN) Capital expenditure PEP2040 (bn PLN) 54,9 241 4,6 224 Accumulated Average annual 204 2,0 1,5 0,6 0,7 10,2 58 7,7 3,1 3,4 2005-2009 2010-2014 2015-2019 2020-2024 2025-2036 2023-2025 2026-2030 2031-2035 2036-2040 PSE – signed contra
Slide 27: Agenda
Agenda Macroeconomic background Financial results of Budimex Group Backlog & contracting FBSerwis & Mostostal Kraków Market and outlook CSR & ESG
Slide 28: FBSerwis – financial results
FBSerwis – financial results* 3,5% 8,0% 9,9% 13,2% 17,4% 19,4% 16,8% 17,0% 14,8% 924 832 139 137 780 131 118 610 Revenues (M PLN) 498 % EBITDA 86 EBITDA (M PLN) 371 261 49 179 26 126 14 4 '15 '16 '17 '18 '19 '20 '21 '22 '23 '15 '16 '17 '18 '19 '20 '21 '22 '23 -1,3% -0,4% -0,1% 3,9% 8,9% 12,2% 10,8%
Slide 29: Key operations in recent months; development directions in waste segment
Key operations in recent months Development directions in waste segment Submitting the lowest offer for two tasks in the GDDKiA tender for FBS intends to invest in strengthening its position by modernizing its year-round road maintenance in Kielce and the surrounding area in assets. 2Q 24 start of t
Slide 30: Mostostal Kraków – financial results
Mostostal Kraków – financial results Cash Debt NTP 544 488 77 Revenues (M PLN) 66 Net cash (M PLN) 323 275 48 46 216 32 78 66 52 49 39 -7 -5 -2 0 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 535 531 Contracting (M PLN)* 401 407 14,5 13,6 332 9,4 EBIT (M PLN) 6,4 -1,8 2019 2020 2021 2022 2023 20
Slide 31: Foreign expansion
Foreign expansion Mostostal Kraków is the contractor and assembler of 6 200 tons of steel structure for the bridge in Kowno A contract was signed for the delivery and assembly of the steel structure of the bridge in Kiejdany, Lithuania. The general contractor of the investment is Autokausta - one of
Slide 32: Konstalex
Konstalex Konstalex investment plan The installation of photovoltaic installations with a capacity of 2x50 kWp has been completed on the roof of the factory hall in Radomsko, which will meet 10% of the energy demand of production. The investment involves the installation of additional 2x450 kWp pane
Slide 33: Agenda
Agenda Macroeconomic background Financial results of Budimex Group Backlog & contracting FBSerwis & Mostostal Kraków Market and outlook CSR & ESG
Slide 34: Summary of investment programmes
Summary of investment programmes Government Programme for National Railway PSE program until 2036 the Construction of National Programme to 2030 Roads to 2033 >100 bn zł 62 bn zł 294 bn zł Programme of 100 Bypasses CPK Nuclear power plants by 2030 28 bn zł ≈160 bn zł ≈200 bn zł Programme for Investm
Slide 35: Cohesion Fund & CEF Programme
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 36: National Recovery Plan
National Recovery Plan (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 Recent actions: Economic resilience and co
Slide 37: Investment in Renewable Energy Sources (RES)
Investment in Renewable Energy Sources (RES) Magnolia project (2 turbines up to 7 MW): o the first kWh was produced in September bxf energia o current production > 2 GWh o company established by Budimex SA o sale of energy in a PPA contract to an external (51%) and Ferrovial Energy Infrastructure cu
Slide 38: JV on residential market
JV on residential market JV Budimex SA and Apricot Capital Group (75/25) involving the implementation of a joint residential project in Poznań The investment concerns approximately 420 apartments with parking spaces in the underground parking lot and storage rooms. Sales are scheduled to start in 20
Slide 39: Budimex Mobility charging stations
8 3 36 o Budimex Mobility in 28 2023 purchased > 14 32 12 160 charging 2 POWER UP stations POWER ABOVE 7 TO 30 kW o Until the end of 2026 22 kW 3 fast > 460 stations in standard 9 4 main urban centers Total = 158 Launched stations divided into voivodeships
Slide 40: Agenda
Agenda Macroeconomic background Financial results of Budimex Group Backlog & contracting FBSerwis & Mostostal Kraków Market and outlook CSR & ESG
Slide 41: Implementation of ESG goals in 2023
Implementation of ESG goals in 2023 OPERATIONAL GOAL IMPLEMENTATION CLIMATE CHANGE o Obtaining, from the market, o Energy consumption amounted to 100% of electricity from 20,678 MWh, all energy came from RES renewable energy sources o 4 diversity campaigns o Promotional campaigns o 14 people went to
Slide 42: Implementation of ESG goals in 2023
Implementation of ESG goals in 2023 OPERATIONAL GOAL IMPLEMENTATION o 576 OHS visits were carried out on BUILDING A SAFETY o Safety visits of top management construction sites CULTURE staff (plan of 364 OHS visits on o 94% of contracts organized construction sites) occupational health and safety o S
Slide 43: Implementation of ESG goals in 2023
Implementation of ESG goals in 2023 OPERATIONAL GOAL IMPLEMENTATION o New Code of Ethics o The scope of the existing Code of o Information Campaigns Ethics was expanded o Procedures have been reviewed o Revision of procedures o New scopes in procedures are o Development of coursebook described with
Slide 44: Operational goals for the years 2024-2025
Operational goals for the years 2024-2025 #1 $ Maintaining the Strenghtening the Entering new areas Entering a new Consistent leader position on foundations of the of activity segment in general expansion of the polish market foreign operations construction renewable energy (+ PPP projects) project
Slide 45: Key figures summary
+13 9,8 bn PLN 11,5% 15 years mld PLN Contracts pending Gross margin of divident payment Revenues 1,5GW 3,8 13 bn PLN Net cash 8,0% mld PLN of RES projects analysed EBIT margin Backlog