Erbud S.a. · GPW:ERB
Erbud — Q3 2024 Earnings Presentation
57 slides from Erbud's earnings presentation, November 2024
Slide 1: Investor Presentation
Investor Presentation 7NERBUD VYNONDE
Slide 2: 9 months of 2024 in figures | EBIT
YX. QOmonths of 2024 in figures | EBIT PLN 33.6 million Robust EBIT growth. EBIT growth driven by higher return on sales. * Compared to the 9-month result adjusted for the impact of the successful outcome of the dispute with Bank Millennium vN ERBUD
Slide 3: 9 months of 2024 in figures | Contracting
YX. QOmonths of 2024 in figures | Contracting PLN 2.7 bition Effective contracting in a demanding market. Contracting increase in the areas of industrial construction, public facilities and residential construction, among others. 7NERBUD
Slide 4: 9 months of 2024 in figures | Backlog
YX Qmonths of 2024 in figures | Backlog PLN 3.9 bition Increasing backlog. 19% increase (y/y) in backlog for external customers, to PLN 2.95 billion. 7NERBUD
Slide 5: 9 months of 2024 in figures | Revenue
YX Qmonths of 2024 in figures | Revenue PLN 2.1 bition Despite lower revenues, profitability is increasing. Selective contract choice and cost discipline result in an increase in the gross margin on sales of 1 percentage point, to 8.3%. 7NERBUD
Slide 6: Agenda
AGENDA ¢ Market Environment ¢ Challenges and Opportunities ¢ Financial Performance * Four Divisions of the ERBUD Group ¢ Selected Financial Figures + ESG ¢ Summary
Slide 7: Macroeconomic Background | GDP and CPI
VN Macroeconomic Background | GDP and CPI GDP dynamics andinflation 3.8 -2.0 2017 2018 2019 2020 2021 2022 2023 2024_fore. 2025 fore. 2026_fore. mm GDP (constant prices, %) =—O-Average annual inflation (%) According to the estimates of the CSO and the NBP, GDP growth will exceed 3% in 2024, inflatio
Slide 8: Macroeconomic Background | Construction and assembly production
YX Macroeconomic Background | Construction and assembly production Dynamics of construction and assembly production in 2024* -2.0% 1.4% 20 -6.1% 4.9% . -6.5% . 8.9% . -9.6Y -99 . e 43.3% 9% 96 Yo 3% 15 e 10 : [] 3 ~ | . a | | l | l -10 -15 -20 I ul uM IV v vi Vil Vill Ix = Building construction _mCi
Slide 9: Macroeconomic Background | Construction business climate
YX. Macroeconomic Background | Construction business climate General business climate index for the construction industry 10 -5.9 X 2024 2020 2021 2022 2023 2024 An increase to -5.9 from -7.1 at the beginning of the year in the general business climate index for construction. vatacso WY ERBUD
Slide 10: Macroeconomic Background | Increasing employment costs
YX Macroeconomic Background | Increasing employment costs Percentage of companies considering employment costs as a barrier to business (%) 71.8 75 X 2024 70 65 60 55 2020 2021 2022 2023 2024 The demographic low, declining interest in engineering studies and wage pressures are the major barriers to
Slide 11: Market Environment | Number of insolvency proceedings
YX Market Environment | Number of insolvency proceedings Number of insolvency and restructuring proceedings in the construction industry 708 638 200 Oo 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 9 months of 2024 The number of insolvencies of Polish companies in H1 2024 amo
Slide 12: Challenges
YN Challenges 1. We are in an interim phase between the 2014-2020 and 2021-2027 EU budgets. 2. The several-month delays in the transfer of NRP funds and the difficulties associated with their efficient distribution are prolonging the waiting period for investment to recover. 3. High interest rates a
Slide 13: Opportunities
yN Opportunities ]. Revision of the National Energy and Climate Plan underway: RES capacity (on shore, off shore, PV) to increase from the current 30 GW to around 56 GW in 2030 and around 88 GW in 2040. 2.0n 14.10.2024 the government adopted a draft amendment to the RES Act. Highlights: shortening o
Slide 14: Financial Performance
yN Financial Performance ERBUD Group 9 months of 2024 7NERBUD
Slide 15: Profits from Operations
YN Profits from Operations EBITDA EBIT [PLN million] [PLN million] 65.1 44.4 *€ ould 33.6 9 months 9 months 9 months 9 months 9 months 9 months 2022 2023 2024 2022 2023 2024 + 59% increase in EBITDA (against a + 145% increase in EBIT (vs. comparable comparable result cleared of one- result cleared o
Slide 16: Revenue
VN Revenue Revenue and gross profit on sales [PLN million] Revenue structure 9 months of 2024 [%] 2,795.5 2,447.2 ut Modular 1 . 2,104.6 construction Residential 3% LS 50% Wwe) 174.1 167.9 engineering 9 months 9 months 9 months construction 2022 2023 2024 27% Revenue mGrossprofitonsales Gross margin
Slide 17: Backlog
yN Backlog Backlog Backlog, segments; [PLN million] as of 30.09.2024 [PLN million] 3,864 3,523 3,437 Domestic * *913 stroctures cee 1,040 *1,040 179 a 1,677 International industry ; | | 2,951 International residential 2,483 2,397 317 construction Domestic B 18 industry 149 —S ONDE - civil engineerin
Slide 18: Debt
VN Debt [PLN million] Safe level of debt + Slight increase in net debt, to PLN 66.4 million at the end of September 136.4 136.0 2024, related, among other things, to 82.7 66.4 investments in the RES area 27.8 + Low debt ratios, significantly below bank and bond covenants * 219.5 million cash in the
Slide 19: Financial Flows
VN Financial Flows Cash flow [PLN million] -84.9 == 267 mm ow +471 -61.0 263.1 207.4 Cash and cash Purchase of (Repayment)/i Cash and cash equivalents Grossresult Amortisation Incometax 4, oper cr sharesin ny eae cr Meurrenceof —interest_—_Dividendpaid Other Gpancial equivalents 11.2024 per companie
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Slide 21: ERBUD Group's Four Robust Business Segments
y\ ERBUD Group’s Four Robust Business Segments RESIDENTIAL & INDUSTRIAL CONSTRUCTION ERBUD, ERBUD INTERNATIONAL = EPC for buildings = EPC for hospitals and specialised facilities = EPC for production, energy and logistics facilities = Construction scope for large- scale industrial and energy project
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Slide 23: Residential Construction
VN Residential Construction 1. Acquisition, by November 5, of orders amounting to PLN 1.66 billion (PLN 1.20 billion in the corresponding period of 2023). 2. Signing of two contracts with Hitachi Energy for onshore work on offshore wind farms for a cumulative net amount of over PLN 180 million. 3. S
Slide 24: Residential Construction
YN Residential Construction Sales revenues Backlog [PLN million] [PLN million] 1,608 1,143 1,044 1,695 1,192 1,353 9 months 9 months 9 months 30.09.2023 31.12.2023 30.09.2024 2022 2023 2024 Q3 Q1-Q3 PLN million Q3 2024 2023 Change 3023 Change Revenue SIEEHS) 329.2 +7.4% 1,143.0 8.7% Including, domes
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Slide 27: RES & Roads
VN RES & Roads 1. Reinforcement of the ONDE management board. Pawet Przybylski as Chairman. 2. The increased capacity of the in-house development projects confirms our ambitions and the implementation of the Group's development strategy. From performance into the energy industry. 3. The 80-megawatt
Slide 28: Slide 28
Slide 29: Services for Industry
yN Services for Industry 1. IKR has signed a contract for a civil works contract in Minden for Siegfried PharmaChemikalien (approx. PLN 127 million net), the largest current industrial project of its kind in the whole of Germany. 2. IVT has achieved ,,Silver” level certification in the prestigious E
Slide 30: Services for Industry
YN Services for Industry Sales revenues Backlog [PLN million] [PLN million] 2466 323 425 412 2317 z 367 317 239 275 78 B 149 9 months 9 months 9 months 30.09.2023 31.12.2023 30.09.2024 2022 2023 2024 mDomestic backlog minternational backlog Total Q3 Q1-Q3 PLN million Q3 2024 2023 Change 3023 Change
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Slide 32: Modular Wooden Construction
YX Modular Wooden Construction 1. Eight educational facilities in Germany (Hanover 5069 m2, Stralsund 1870 m2, Munster 1246 m2, Strausberg 936 m2, RUdersdorf 834 m2, Reutlingen 810 m2, Essen 631 m2, Eisingen 532 m2). 2. Third contract in Munich (in progress) for social facilities for people in refug
Slide 33: Modular Wooden Construction
YN} Modular Wooden Construction Sales revenues [PLN million] Backlog [PLN million] 179 [PI 9 months 9 months 9 months 30.09.2023 31.12.2023 30.09.2024 2022 2023 2024 Q1-Q3 PLN million lesvLeyL) Q32023 Change 3023 Change Revenue 34.9 26.5 +31.9% 37.7 +83.4% PLN +8.2 PLN +8.6 EBIT a 66 million “215 mi
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Slide 35: Statement of Financial Position - some highlights
YN. Statement of Financial Position - some highlights thousand PLN Assets, including: 30.09.2024 1,964,599 Inventories Valuation of construction contracts - assets Trade receivables Receivables from construction contracts - deposits Tangible fixed assets Investments recognised through the equity met
Slide 36: Statement of Comprehensive Income - some highlights
YX Statement of Comprehensive Income - some highlights thousand PLN Revenue from sale of goods and services Cost of goods and services sold Gross profit onsales Sales costs General and administrative costs Result on sale of shares in a jointly controlled entity Other operating revenue Other operatin
Slide 37: ESG
yN ESG 1. Reinforcement of industry leadership. Cooperation with EY and PWC audit. 2. Dual materiality audit and implementation of recommendations in terms of CSRD. 3. [E] Maintenance of the presence of ERBUD and ONDE in the EMAS register 4. [E] Green energy on all ERBUD construction sites through a
Slide 38: Operating and Financial Results for Q3 2024 ONDE Group
OPERATING AND FINANCIAL RESULTS FOR Q3 2024 ONDE GROUP
Slide 39: 9 months of 2024 in figures | Revenue
YX. QOmonths of 2024 in figures | REVENUE PLN 582.4 million -30.6% y/y Lower revenues with increased return on sales 74 million of construction processing for own account of the photovoltaic farm ,,Park Lewatd” not included in revenues at the consolidated level - these are reported in the separate f
Slide 40: 9 months of 2024 in figures | EBITDA
YX Qmonths of 2024 in figures | EBITDA PLN 41.2 million -1.7% y/y Significant increase in operating profitability Despite the decrease in revenue, operating profit (PLN 34 million) and EBITDA (PLN 41.2 million) at similar levels y/y y7NONDE
Slide 41: 9 months of 2024 in figures | Backlog
YX QOmonths of 2024 in figures | BACKLOG PLN 623 million -32.3% y/y Sound backlog despite difficult environment Signing of one of the largest executive contracts in 2024 for the construction of the Miejska Gorka wind power plant (53 turbines). ONDE, as aconsortium partner, accounts for approximately
Slide 42: 9 months of 2024 in figures | Own Projects
¥X Qmonths of 2024 in figures | OWN PROJECTS 1,153 MW +32.4% y/y Significant increase in volume of own development projects Hybridisation enables doubling of nominal capacity of selected projects Wind projects with a capacity of 348 MW Projects with connection conditions with a capacity of 415 MW y7
Slide 43: Revenue - Structure and Operating Profitability of Segments
Revenue - Structure and Operating Profitability of Segments Revenue and gross profit on sales Revenue structure Segment operating result [PLN million] 9 months of 2024 [%] [PLN million] 819.5 838.7 Other = RES construction 1% = Civil engineering and road construction Joop "Other 336 “70 Civil engine
Slide 44: ONDE Profits for Q3 2024
ONDE Profits for 03 2024 EBITDA [mln zt] 19.0 14.0 Q3... Q3... Profit generated entirely from executive activities Increase in EBITDA margin from 5.6%, to 6.1% EBIT [mln zt] 16.7 11.4. Q3 Q3 2023 2024 The operating margin increased from 4.9% to 5.0%; Wynik netto [mln zt] 10.7 Q3 Q3 2023 2024 The dec
Slide 45: ONDE Profits for 9 months of 2024
ONDE Profits for 9 months of 2024 EBITDA [mln zt] 41.9 41.2 9 months 9 months 2023 2024 . Decrease in revenue offset by increase in profitability, large share of development activity in profits generated EBIT [mln zt] 35.1 341 9 months 9 months 2023 2024 The operating margin increased from 4.2% to 5
Slide 46: Cash Flow in 9 months of 2024
Cash Flow in 9 months of 2024 75,1 71 26 i 11,7 93,1 -16,9 >. -19,1 65,3 -16,8 1,8 — -10,5 -39,8 Cash and cash Result from Changein Sale of shares Receipts/expen Expenditure on Cashand cash equivalents Grossresult Amortisation FOS neg Tax working Other inajointly-ditureonloans sharesin Debtincurred
Slide 47: Debt
Debt Net debt Safe level of debt [PLN million] + Negligible net debt - increased slightly due to PLN 60 million of loans incurred, + Lowdebt ratios, 3 . ai / 73.1 233 508 445 93 million cash at end of period. 31.12.2022 31.03.2023 30.06.2023 30.09.2023 31.12.2023 31.03.2024 30.06.2024 30.09.2024 Net
Slide 48: Selected wind and PV construction contracts
Employer: VSB Energie Odnawialne Poland Nominal capacity: 190.8 MW Number of turbines: 53 Remuneration: PLN 164 million net (ONDE share only) Implementation stage: land surveying and inventory work Completion date: Q2 2027 Employer: Luneos GE Nominal capacity: 53.3 MW Number of modules: 90,383 Remun
Slide 49: Backlog
Backlog Backlog [PLN million] 1,966 1,959 1,536 *1,040 *1,040 *913 926 919 623 30.09.2023 31.12.2023 30.09.2024 * Backlog of internal RES projects, including only projects with connectivity conditions Backlog of orders under market pressure RES order book about 1/3 lower y/y due to investment gap in
Slide 50: Progress of RES Development Projects
Progress of RES Development Projects ten de i, d, &, so gE GE ER BE gs G come) 2S oO oO oO 1 Lewatd 32 Vv Vv v v VA $34 2024 —_Underconstruction 1.1 Lewatd wind 30 x4 aY4 2027 _Landrights secured / planning work commenced 2 Serby 88 50% Vv Vv vY Vv Vv 2025 _Negotiated sales 3 Kazimierz Biskupi 150 5
Slide 51: Plans and Prospects
Plans and Prospects Operational activities BWN> au Optimisation and commercialisation of own project backlog Continued development in the wind segment -> over 300 MW in the backlog, Acquisition of further greenfield projects to the backlog -> approx. 1,000 MW in 2024/2025, Analysis of emerging techn
Slide 52: Plans and Prospects
Plans and Prospects Market environment 1. Revision of the National Energy and Climate Plan 2040 underway: RES capacity to increase from 2, the current 30 GW to about 56 GW in 2030 and about 88 GW in 2040, 3, PLN 64 billion budget for investments in transmission networks until 2034 of the Polish Powe
Slide 53: Highlights of the Balance Sheet
Highlights of the Balance Sheet 30.09.2024 thousand PLN ASSETS, including Inventories Valuation of construction contracts - assets Trade receivables Receivables from construction contracts - deposits Tangible fixed assets Investments recognised through the equity method Cash and cash equivalents (in
Slide 54: Highlights of the Income Statement
Highlights of the Income Statement thousand PLN Revenue from sale of goods and services Cost of goods and services sold Gross profit onsales Sales costs General and administrative costs Result on sale of shares in a jointly-owned entity Other operating revenue Other operating costs Operating profit
Slide 55: ERBUD Group
yN 7\ERBUD GROUP
Slide 56: ERBUD Group - Summary
yN ERBUD Group - Summary 1. A 26% increase (y/y) in the value of contracts secured up to November 5 this year (to PLN 3.16 billion). 2. EBIT increase of 145% in 9 months this year, net profit higher by PLN 22 million. (against comparable results cleared of one-off) 3. Increased profitability in the
Slide 57: Investor Relations / Media Relations
INVESTOR RELATIONS MEDIA RELATIONS (ERBUD) (ERBUD) Agnieszka Gtowacka Marcin Kasprzak Vice-President of the marcin.kasprzak@erbud.pl Management Board 792 280 805 INVESTOR RELATIONS MEDIA RELATIONS (ONDE) (ONDE) Pawet Przybylski Daniel Mackiewicz President of the daniel.mackiewicz@onde.pl Management