Budimex Sa · GPW:BDX
Budimex Sa — Budimex S A Shs — Q3 2022 Earnings Presentation
32 slides from Budimex Sa's earnings presentation, Nov 8, 2022
Slide 1: Investor presentation for 3Q of year 2022
Investor presentation for 3Q of year 2022
Slide 2: Agenda
Agenda 1 Macroeconomic data & construction market 2 Budimex Group financial results 3 FBSerwis & Mostostal Kraków 4 Market outlook 5 CSR
Slide 3: Macroeconomic environment
Macroeconomic environment PKB dynamics and CPI inflation in Poland (%, y/y) PKB dynamics Inflation (CPI) 13,8 14,3 GDP and inflation forecasts are deteriorating over time. The IMF forecasts inflation to remain at double-digit levels on a sustained basis and GDP 4,8 5,4 5,7 growth to weaken significa
Slide 4: Macroeconomic environment
Macroeconomic environment PMI indicator for Poland 59,4 56,1 53,7 53,8 The PMI for domestic manufacturing was 42.0 points in 52,8 52,7 51,7 October, which is another negative reading suggesting an 48,2 48,5 economic recession. The data prompts the MPC to take a 47,2 44,4 cautious approach to tighten
Slide 5: Macroeconomic environment
Macroeconomic environment 14,5% Average monthly wages in Poland* 6688 In September, wages grew by 14.5% y/y (vs. 12.7% y/y in 5663 5841 August), which is a lower reading than inflation. According 4918 5167 to the Central Statistical Office (GUS), wage growth is 4585 uneven and industry-dependent. At
Slide 6: Situation of the construction industry - as of Q3'22
Situation of the construction industry - as of Q3’22 Percentage of construction companies considering Percentage of construction companies considering costs shortage of materials as a barrier to business (%) 16,9 of materials as a barrier to business (%) 14,8 77,3 75,9 69,1 11,2 60,4 53,1 7,1 7,4 38
Slide 7: Prices of selected raw materials
Prices of selected raw materials 340 200 196 1Q’10 = 100 1Q’16 = 100 1Q’10 = 100 1Q’16 = 100 300 286 180 181 260 160 249 140 220 120 180 100 140 Concrete 80 100 Steel 60 60 1Q'10 1Q'11 1Q'12 1Q'13 1Q'14 1Q'15 1Q'16 1Q'17 1Q'18 1Q'19 1Q'20 1Q'21 3Q'22 1Q'10 1Q'11 1Q'12 1Q'13 1Q'14 1Q'15 1Q'16 1Q'17 1
Slide 8: Margins of construction companies by their size
Margins of construction companies by their size 11,9% 11,2% 10,6% 9,2% 8,7% 8,8% 8,6% 8,2% 9,9% 7,9% 7,2% 7,5% 7,3% 7,1% 6,0% 7,4% 7,1% 4,9% 5,2% 5,1% 6,7% 4,1% 5,3% 5,3% 4,9% 4,1% 4,1% 2,6% 2,4% 2,4% 1,5% 1,2% -0,5% '13 '14 '15 '16 '17 '18 '19 '20 '21 1H'21 1H'22 10-49 employees 50-249 empoloyees >
Slide 9: Agenda
Agenda 1 Macroeconomic data & construction market 2 Budimex Group financial results 3 FBSerwis & Mostostal Kraków 4 Market outlook 5 CSR
Slide 10: Results from continued operations (Q1-Q3)
Results from continued operations (Q1-Q3) Revenues EBIT* Net profit* (M PLN) (M PLN) (M PLN) 6,3% 6,5% 4,8% 5,8% 6 368 5 534 416 417 368 Net profit 313 EBIT Profit related to Bx Profit related to Bx Nieruchomości Nieruchomości 65 47 YTD '21 YTD '22 YTD '21 YTD '22 YTD '21 YTD '22 *Margin (%) of Q1-Q
Slide 11: Revenues by segment
Revenues by segment Construction segment (M PLN) In the third quarter of 2022, revenues in the construction segment increased by 86 M PLN y/y 2 198 2 130 2 089 2 175 2 164 1 955 2 028 (+4.1% y/y). A high backlog at the beginning of 1 849 2022, a well-thought-out purchasing policy and 1 426 1 436 1 1
Slide 12: EBIT margin by segment
EBIT margin by segment Construction segment (M PLN) 300 2,3% 4,1% 3,0% 2,6% 6,1% 7,0% 5,9% 5,6% 7,1% 8,7% 7,7% 250 200 177 167 Third quarter profitability is supported by contracts 154 155 signed before 2022. 150 112 127 117 Budgets for all Budimex's projects are updated on 100 49 43 51 an ongoing b
Slide 13: Evolution of net cash position
Evolution of net cash position Net cash position in the Budimex Group (bn PLN) 3,0 2,8 2,8 2,7 2,3 2,2 2,1 2,0 1,9 2,0 1,8 1,7 1,7 1,6 1,6 1,5 1,4 1,4 1,4 600 M PLN 1,3 1,4 1,4 dividend 1,2 1,2 1,2 1,2 1,0 1,1 payment in 1,0 June 2022 and 0,8 0,7 seasonal effect 0,6 0,50,5 0,5 0,4 0,1 12'13 12'14 12
Slide 14: Budimex's Group dividend history
Budimex’s Group dividend history Budimex has been regularly distributing profit to shareholders for 13 years = 4 128 = 161,7 M PLN PLN/share PLN/share 5,8 6,8 9,1 11,0 4,4 11,9 6,1 8,1 15,0 17,6 6,3 4,6 31,6 23,5 807 599 450 383 280 303 232 208 149 174 156 161 112 116 '09 '10 '11 '12 '13 '14 '15 '
Slide 15: Backlog (bn PLN)
Backlog (bn PLN) 14,0 12,7 13,0 6% 12,5 3% 8% 0,8 0,4 10 000,0 12,0 10,8 1,1 0,3 2% 0,8 0,2 2% 6% 4% 0,8 2,9 22% 2,8 22% 1,8 8 000,0 10,0 0,7 7% 14% 0,4 0,8 6% 8,0 1,6 15% 3% 1,3 11% 0,5 6 000,0 7% 4,0 32% 3,3 6,0 25% 2,9 23% 3,6 33% 4 000,0 4,0 2,0 4,7 37% 5,0 39% 4,8 39% 2 000,0 3,6 33% 0,0 0,0 12
Slide 16: Contracts signed (bn PLN)
Contracts signed (bn PLN) 9,0 0,8 7,5 0,6 7,0 0,5 0,8 1,7 0,5 0,0 1,6 2,4 4,6 1,8 0,2 0,1 0,7 1,5 0,5 3,2 0,9 4,1 2,9 0,6 >3 bn PLN in 1,3 „pending room” 1,2 12'19 12'20 12'21 09'22 Roads Railways Hydro General construction Residential Industrial
Slide 17: Agenda
Agenda 1 Macroeconomic data & construction market 2 Budimex Group financial results 3 FBSerwis & Mostostal Kraków 4 Market outlook 5 CSR
Slide 18: FBSerwis - financial results
FBSerwis – financialresults -1,3% -0,4% -0,1% 3,9% 8,9% 12,2% 10,8% 13,8% 11,2% 780 84 610 75 78 561 573 % EBIT 64 Revenues (M PLN) 498 371 44 EBIT (M PLN) 261 179 126 14 '15 '16 '17 '18 '19 '20 '21 1-3Q'21 1Q-3Q'22 -2 -1 0 '15 '16 '17 '18 '19 '20 '21 1-3Q'21 1Q-3Q'22 Fixed assets 3,5% 8,0% 9,9% 13,
Slide 19: Waste segment had negative growth rate in 2022
WM BL Waste segment had negative growth rate in 2022 562 410 424 402 FBSerwis Group revenue 2020 - Q3 2022 [M PLN]. FBS Group 780 2020 2021 2021 - Q1-Q3 2022 - Q1-Q3 610 561 573 IM roads 138 143 126 90 2020 2021 2021 - Q1-Q3 2022 - Q1-Q3 2020 2021 2021 - Q1-Q3 2022 - Q1-Q3 FM/SL 63 75 47 45 2020 202
Slide 20: Road salt - new business opportunity
Road salt - new business opportunity The necessity to replace Ukrainian supplies of Average prices of road salt in the years '15 - '22 [PLN/t] about 350 000 tonnes/season. 500-700 Embargo on salt imported from Belarus 210 218 230 implemented in June 2022. 192 198 195 200 Season Season Season Season
Slide 21: Mostostal Kraków - financial results
Mostostal Kraków – financial results Cash Debt NTP 69 362 Revenues (M PLN) 44 220 202 69 18 NTP (M PLN) 154 12 49 19 21 -7 -5 -3 3Q 2019 3Q 2020 3Q 2021 3Q 2022 3Q 2019 3Q 2020 3Q 2021 3Q 2022 429 Gross margin (M PLN) 322 302 286 Contracting (M PLN) 21 13 14 8 3Q 2019 3Q 2020 3Q 2021 3Q 2022 3Q 2019
Slide 22: Mostostal Kraków - steel price index
Mostostal Kraków Steel price index according to PUDS 12 000,00 zł 11 500,00 zł With the outbreak of war in 2022, steel 11 000,00 zł shipments from Ukraine, Belarus have been 10 500,00 zł curtailed, and from Russia completely closed 10 000,00 zł due to sanctions, and that is a total of about 9 500,00
Slide 23: Mostostal Kraków - Development of the Kleszczów Plant
Mostostal Kraków Development of the Kleszczów Plant 1. Installation of photovoltaic installations with a 1. total capacity of 200 kWp on the premises of the Steel Structures Plant in Kleszczów and on the roof of the Plant's hall in Cracow. Another 1,290 kWp planned by Q1 2023. 2. Implementation of a
Slide 24: Agenda
Agenda 1 Macroeconomic data & construction market 2 Budimex Group financial results 3 FBSerwis & Mostostal Kraków 4 Market outlook 5 CSR
Slide 25: PKP & GDDKiA - status
PKP & GDDKiA - status Bids submitted in significant GDDKiA tenders (bn PLN) ∑ '15-'22 = 90,4 mld bn PLN 20,3 18,2 13,6 13,5 10,7 9,3 3,8 1,0 '15 '16 '17 '18 '19 '20 '21 1-3Q'22 Bids submitted in significant PKP PLK tenders (bn PLN) ∑ '15-'22 = 57,0 mld bn PLN 12,5 11,2 10,9 8,9 5,9 4,8 0,5 2,3 '15 '
Slide 26: Bids on the Czech and Slovak markets
Bids on the Czech and Slovak markets Value of bids submitted in the Czech and Slovak markets (bn PLN) Bids made since 01'21 (bn PLN) Czechy Czech Rep. Słowacja Slovakia 1,8 1,7 Czech Rep. Slovakia 0,3 1,1 0,5 0,6 0,8 0,3 2,6 I - XII 2021 I - IX 2022 Infrastruktura Kolejowe Infrastructure Railways Bu
Slide 27: EU funds
EU funds Program European Funds for Infrastructure, Climate, Connecting Europe Facility (CEF) Environment 2021-2027 (FEnIKS)) (bn EUR) – funds for all countries (bn EUR) 26,2 24,1 28,8 32,3 ≈ 10% of the total amount Infrastructure 7,6 allocated to 7,5 Other 5,8 Poland 10,1 Rail 4,8 Infrastructure +
Slide 28: Trends in the construction industry
Trends in the construction industry Hydrotechnical market Military market Backlog (M PLN) Market (bn PLN) Developing competence in the military segment: 1330 ▪ Budimex on the list of companies of strategic importance for national 1400 defense 1200 908 1000 ▪ BX's acquisition of contracts for ≈ 1.5 b
Slide 29: Agenda
Agenda 1 Macroeconomic data & construction market 2 Budimex Group financial results 3 FBSerwis & Mostostal Kraków 4 Market outlook 5 CSR
Slide 30: Prizes and awards
Prizes and awards 7 awards in the „Budowa roku Award of the Year of the In the final of the Modernizacja Roku: 2 awards 2021" contest, commonly Federation of Polish international contest known as the construction Entrepreneurs European Women In Oscars. Sustainable Development Leader Construction & E
Slide 31: Home from the Heart
Home from the Heart The second edition of the "Home from the Heart" program has come to an end. On July 26, 2022, the grand finale of the action took place, during which the construction of a house for a family of 8 was completed to the "turnkey" condition. Thanks to the support of all the Partners
Slide 32: 41st Parent Zone - Bydgoszcz and 42nd Parent Zone - Ełk
41st Parent's Zone - we are creating from scratch an outdoor space 41st Parent Zone - for the J.Brudzinski Provincial Children's Hospital in Bydgoszcz. Bydgoszcz and 42nd We are creating the 42nd Parent Zone (under construction) at the Parent Zone - Ełk Pro-Medica Hospital in Ełk. This is a unique p