Budimex Sa · GPW:BDX
Budimex Sa — Q1 2024 Earnings Presentation
41 slides from Budimex Sa's earnings presentation, May 2024
Slide 1: Investor presentation for I quarter of 2024
Investor presentation for I quarter of 2024
Slide 2: Budimex on WSE
Budimex on WSE Budimex shareholders structure (shareholders with stake above 5%) The strategic investor of the Budimex Group is Ferrovial. 31,4% Ferrovial Allianz OFE 50,1% NN OFE Budimex returned to WIG20 after 20-year break. Pozostali 9,6% 8,9% History of stock quotes on WSE (stock price as of May
Slide 3: Ferrovial debuts on Nasdaq
Ferrovial debuts on Nasdaq Ferrovial is already listed on the stock exchanges in Madrid and Amsterdam. Since May 2024 also listed on the Nasdaq . Companies listed in the United States and their subsidiary companies ale obliged to meet the requirements of the SOX Act (internal control procedures and
Slide 4: Key events at the begging of 2024
Key events at the begging of 2024 Five tenders for S10, JV on the real estate Ferrovial (parent Purchase of a Recommendation of tender for S12 and market company of photovoltaic project the Management DK35 in the Czech Budimex) joins the 60 MW Board about record Republic Nasdaq index dividend paymen
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) According to CSO estimate from 2024 GDP in 14,4 Poland in 2023 increased by 0,2% compared to 11,4 2022, which is a lower value than expected. Dynamika PKB Inflacja CPI 4,8 5,4 4,7 5,7 5,1 3,5 4,2 5,1 3,3 3,4 3 3,4 2,0 1,6 2,3
Slide 7: Macroeconomic background
Macroeconomic background PMI index for Poland In March PMI increased to 48 points from 47,1 points at the beggining of the year. However, 59,4 in April index dropped to 45,9 points, which 52,8 53,7 54,5 was an unexpected event by the market and 53,8 52,7 50,8 51,7 analysts (biggest monthly decrease
Slide 8: Components of construction and assembly production
Components of construction and assembly production Dynamics of construction and assembly production (%, y/y, constant prices) Constructions Civil engineering Specialied construction activities 9,3% 11,7% 11,3% 2,9% 1,3% 5,4% 2,4% 2,6% 2,8% 2,8% 2,7% -2,0% -1,2% -1,3% -4,9% -6,9% -8,8% -16,2% '19 '20
Slide 9: Components of construction and assembly production
Components of construction and assembly production Construction and assembly production (nominal value bn PLN) 162 165 Buildings Civil engineering 140 Civil engineering 109 117 108 87,6 Roads 102 70,6 84 75 61,1 Railway 54,5 55,2 52,3 42,3 37,9 Buildings 69,7 74,3 49,6 53,6 53,3 56 36,7 41,8 2016 Q1
Slide 10: Macroeconomic background
Macroeconomic background 12,0% Average monthly salaries in Poland* 8409 In March wages increased by 12,0% y/y, which is higher 8033 than inflation. The construction industry is characterised by 7330 7508 6644 an above-average salary increase (14,4% y/y). Individual 5604 5974 construction segments we
Slide 11: 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 (%) 50,6 49,2 44,1 42,9 41,9 6
Slide 12: Prices of selected raw materials
Prices of selected raw materials 220 340 1Q’10 = 100 2Q’20 = 100 200 203 1Q’10 = 100 2Q’20 = 100 300 180 260 160 143 220 140 171 Concrete 120 180 100 140 154 80 Steel 100 60 60 1Q11 1Q12 1Q13 1Q14 1Q15 1Q16 1Q17 1Q18 1Q19 1Q20 1Q21 1Q22 1Q23 1Q24 1Q10 1Q11 1Q12 1Q13 1Q14 1Q15 1Q16 1Q17 1Q18 1Q19 1Q2
Slide 13: Agenda
Agenda Macroeconomic background Financial results of Budimex Group Backlog & contracting FBSerwis & Mostostal Kraków Market and outlook CSR & ESG
Slide 14: Budimex Group is not only Budimex SA
Budimex Group is not only Budimex SA Renewable Construction Foreign markets Services Others Energy souces
Slide 15: Financial results for first quarter of 2024
Financial results for first quarter of 2024 Revenues EBIT Net profit* (M PLN) (M PLN) (M PLN) 5,3% 7,0% 5,5% 7,2% 1 939 -15,2% 1 645 +12,4% 115 12,1% 119 106 102 Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24
Slide 16: Financial results by segment
Financial results by segment The scale of sales revenues in Q1’24 in the Construction segment construction segment was noticeably lower than in Revenues (M PLN) EBIT (M PLN) the same period last year. The decline in sales resulted mainly from the negative weather 3,0% 4,7% 6,7% 1 724 conditions and
Slide 17: 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 2,3 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 1,41,4 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 03'14 03'15 03'16 03'17 03'18 03'19 03'20 03'21 03'22 03'23 03'2
Slide 18: 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 sale of Budimex Nieruchomościshares. 4 587 MLN = /share
Slide 19: Agenda
Agenda Macroeconomic background Financial results of Budimex Group Backlog & contracting FBSerwis & Mostostal Kraków Market and outlook CSR & ESG
Slide 20: Signed contracts (bn PLN)
Signed contracts (bn PLN) 9,0 0,6 8,3 7,9 7,5 0,2 0,2 1,7 7,0 0,8 0,0 1,9 0,8 2,9 1,6 2,4 0,2 0,5 1,8 0,2 2,1 0,5 0,7 0,0 0,5 0,9 0,4 0,7 2,7 3,2 0,1 0,4 4,1 0,1 2,9 3,1 3,2 1,1 0,2 0,6 1,2 0,4 1,1 0,2 12'19 12'20 12'21 12'22 12'23 03'23 03'24 Roads Hydrotechnical Railway General construction Reside
Slide 21: Backlog (bn PLN)
Backlog (bn PLN) 220 active contracts at the end of 2023 Maturity of backlog (%)* 14,6 2% 2% 12,7 2% 13,0 0,4 2% 6% 13,0 13,1 0,3 26% 2,8 19% 0,8 14% 22% 0,3 0,3 22% 46% 1,8 2,9 2,9 2,9 0,4 3% 3% 2% 8% 6% 37% 1,1 0,8 0,8 0,3 3,1 17% 21% 32% 25% 18% 2,2 3,3 3,3 0,9 4,0 0,9 7% 6% 6% 9% 3% 0,8 0,8 0,4
Slide 22: 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 10,1 Rail Baltica Foreign Poland 4,8 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 5,3 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 1
Slide 23: Road market
Road market Value of signed contracts on domestic road market (bn PLN)** In the first quarter of 2024, GDDKiA announced 6 tenders worth 1,1 bn PLN (vs 2 tenders in the first quarter of 2023 worth 0,3 bn 18,7 PLN) 15,9 14,6 13,6 Budimex submitted the lowest offer in 10 competitions for a total 10,7 a
Slide 24: Railway market
Railway market Value of signed contracts on domestic railway market (bn PLN)* 14,8 13,1 In 2023, PKP PLK announced an amount of around 10 bn PLN 10,8 and signed contracts worth 10,8 bn PLN.* 9,5 In first quarter of 2024 PKP PLK signed contracts worth 2,8 bn . * 3,4 2,8 2,8 0,9 1,3 0,2 '15 '16 '17 '1
Slide 25: Energy segment with good prospects
Energy segment with good prospects Capital expenditures PSE (bn PLN) Capital expenditures 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 26: Agenda
Agenda Macroeconomic background Financial results of Budimex Group Backlog & contracting FBSerwis & Mostostal Kraków Market and outlook CSR & ESG
Slide 27: FBSerwis – financial results
FBSerwis – financial results 9,9% 13,2% 17,4% 19,4% 16,8% 17,9% 14,8% 16,6% 14,6% 903 146 818 131 137 780 118 610 Revenues (M PLN) 498 % EBITDA 86 EBITDA (M PLN) 371 261 49 217 230 36 34 26 '17 '18 '19 '20 '21 '22 '23 Q1'23 Q1'24 '17 '18 '19 '20 '21 '22 '23 Q1'23 Q1'24 -0,1% 3,9% 8,9% 12,2% 10,8% 11
Slide 28: Key activities in recent months; Development directions in the waste segment
Key activities in recent months Development directions in the waste segment Submitting the lowest offer for two tasks in the GDDKiA tender for year- round road maintenance in Kielce and the surrounding area in 2024- FBS intends to invest in strengthening its position by modernizing its 2028: assets.
Slide 29: Mostostal Kraków – financial results
Mostostal Kraków – financial results** Cash Debt NTP 544 124 488 Revenues (M PLN) 323 77 Net cash (M PLN) 275 66 216 48 124 181 32 46 137 78 66 20 52 49 39 20 2019 2020 2021 2022 2023 Q123 Q124 -7 -5 -2 2019 2020 2021 2022 2023 Q1'23 Q1'24 535 531 17,6 14,5 13,6 Contracting (M PLN)* 401 407 332 9,4
Slide 30: Polish nuclear power
Polish nuclear power Westinghouse Electric Company announced the selection of seven Polish suppliers to produce large structural modules and a shield building for the country's first nuclear power plant project - among them Mostostal Kraków. Participation in the supply chain for the construction of
Slide 31: Agenda
Agenda Macroeconomic background Financial results of Budimex Group Backlog & contracting FBSerwis & Mostostal Kraków Market and outlook CSR & ESG
Slide 32: 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 Infrastructure 7,5 10,2 4,8 Railway Poland met the last three 4,8 conditions necessary for the fu
Slide 33: 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 consumption EUR repayable grants • 34,5 bn EUR loans 6,5 bn Green, smart mobility EUR 4,4 bn Recent actions: Economic resilience and competiti
Slide 34: Purchase of a 60 MW project – Azalia project
Purchase of a 60 MW project– Azalia project The Azalia project provides the construction of a photovoltaic farm with a total capacity of up to 60 MW in the Podkarpackie Voivodeship, near Rzeszów. The company plans to issue a permit to start the contractor's work in May 2024 in order to launch the po
Slide 35: 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 > 17GWh o sale of energy in a PPA contract to an external o company established by Budimex SA (51%) customer and Ferrovial Energy Infrastr
Slide 36: Budimex Mobility have > 160 charging stations in 2024
8 4 36 o Budimex Mobility 30 have > 160 charging 14 12 32 stations in 2024 2 POWER TO POWER ABOVE o By the end of 2026 > 7 1 22 kW 30 kW 460 stations in 4 standard fast 10 major urban centers 4 Total = 165 Running stations divided into voivodeships
Slide 37: Agenda
Agenda Macroeconomic background Financial results of Budimex Group Backlog & contracting FBSerwis & Mostostal Kraków Market and outlook CSR & ESG
Slide 38: ESG goals in 2024 E
ESG goals in 2024 E Quarterly discussion of the review of ESG goals with the Management Board Expansion of the management and and the Supervisory Board supervision system for ESG issues in the organization Start of the project to implement a tool for reporting ESG indexes Recycling and recovery of 7
Slide 39: ESG goals in 2024 S
ESG goals in 2024 S Striving to reduce the Gender Pay Gap 1% of the raise budget intended only for alignment of the wage gap Women's and Men's Week at Budimex Support for diversity Internships for students from Ukraine Increasing employee competences, Contract Manager Academy KER Academy Implementat
Slide 40: ESG goals in 2024 G
ESG goals in 2024 G Publication of the "Code of Ethics", Ethics in the Budimex Group Ethics information campaigns, Publication of the coursebook "Conflict of interests - the Budimex Group Conflict of interest coursebook, Training on conflict of interest issues and procedures Implementation of the Co
Slide 41: in 1 quarter of 2024
in 1 quarter of 2024 911 +10 bn PLN 12,0% 15 years M PLN of proposed Contracts pending Gross margin of divident payment dividend 80MW 3,9 14,6 bn PLN Net cash 7,0% bn PLN of renewable energy projects owned EBIT margin Backlog