46 slides from Poznanska Korporacja Budowlana Pekabex Sa's earnings presentation, June 2022
Slide 1: Investor Presentation, Poznan, June 2022
= Pekabex Investor Presentation Poznan, June 2022
Slide 2: Safe Development: Mission and Vision
= Pekabex SAFE DEVELOPMENT MISSION We believe that prefabrication is the technology of the future in construction VISION We want to be top 5 in Europe to create new trends and build ecological, effective and beautiful buildings
Slide 3: Key numbers in 1Q22
Key numbers in 1Q22 Solid fundamentals create basis for dynamic development PLN 27 m PLN 1 347 m PLN 412 m 68,362 m3 PLN 13 m Value of backlog as Revenues prefabricated Net profit of 31.03.2022* elements produced** *Concerns prefabrication contracts, construction services, development project on the
Slide 4: Backlog
Backlog Backlog (thous. PLN) trong, well-diversified backlog contracts to be realized in following year 11 465 › Pekabex Group systematically builds significant and well-diversified contracts to be (2%) realized in next year backlog, which will fill the production in following years. It contains 231
Slide 5: Prefabrication production
Prefabrication production Volume of production in 2003-1Q 2022* (000 m3) 266 table growth of production 204 › Increased production in prefabrication segment results mainly from the 182 175 volume of realized contracts; in the first quarter of 2022; production amounted to 68.362 m3 while in the prior
Slide 6: Strong Balance Sheet & Financial Stability
Strong Balance Sheet & Financial Stability Steady and continuous growth Volume of production in 2003-2021 (000 m3) 8% EBITDA (mPLN) 9 a P| 2011 2012 «2013 «2014. «2015-2016 «2017-2018» 2019 2020-«-2021:1Q. 2022 SEBITDA BEBITDAx 18} + adjusted for a gain from a bargain purchase ++ CAGRis calculated t
Slide 7: Revenue
› 1Q 2022 was a record period in terms of achieved revenues. › Revenue from sales in 1Q 2022 amounted to PLN 412,452 thous. and were higher by PLN 166.288 thous., i.e. by 67.6%, than the revenue achieved in 1Q 2021, and at the same time higher by PLN 164.410 thous., i.e. by 66.3%, as compared to the
Slide 8: Operating results by segment
› In 1Q 2022 highest operating results were achieved in prefabrication contracts and constuction services segments. Those segments represented respectively 89% and 5% of total operating result. › Significant increase in profitability of prefabrication contracts is a result of economies of scale and
Slide 9: Well diversified revenue sources
Strong Balance Sheet & Financial Stability Well diversified revenue sources yy Ru 76%; 314 Foreign sales of prefabrication segment (in mPLN) 202 125 90 2» 39 4 Lil 35 a | 2012-2013, 2014S 2015 2016 = 2017.-—«2018_= 2019-2020» 2021: 19.2022 + ssalesin mPLN + Foreign sales does not include production
Slide 10: Stable and safe level of financial leverage
Strong Balance Sheet & Financial Stability Inthous. PLN 31.03.2022 31.03.2071 Change 31.12.2021 Stable and safe level of financial leverage Fixedassets 455571 426308, 46,9% 452810 Currentassets, including: 899857 545545 +64,9% 767529 Fixed assets 452810 455571 Inventories 182084 171907 459% 176146 4
Slide 11: Working capital
Working capital › Positive working capital is a sort of "financial security" that facilitates liquidity. › At the same time, as a rule, the first quarter is a period of high demand for working capital for the Group due to seasonality of the construction market. Inventory › Group inventory significan
Slide 12: Net Debt
› Net Debt is the difference between financial liabilities (loans, borrowings and other external sources of financing, financial leasing and cash and cash equivalents. › Net Debt to EBITDA ratio remains at a higher level due to new investments resulting in an increasing demand for working capital.
Slide 13: Net debt change chart
160000,0 +6 712 +4 219 +16 627 -123 442 140000,0 114 648 -2 551 -6 101 120000,0 78 513 100000,0 +6 050 +75 832 -10 834 -2 647 80000,0 60000,0 40000,0 20000,0 0,0
Slide 14: CAPEX policy
CAPEX policy: Investments that are related to automation and computerization Improving production capacity and efficiency (new investments with the required rate of return of 20% - target: 30%) Improving the quality of products Improving health and safety at work Ensuring the operational b
Slide 15: Stock market and ratios
Strong balance sheet & financial stability = Pekabex Stock market and ratios * Dividend payout corresponds to the generated profit and the Group’s financial situation and capital needs Dividends Financial year 2015 2016 2017 2018 2019 2020 © 2021* Dividend date 2016 2017 2018 2019 2020 2021 2022 ivi
Slide 16: Key drivers of the result and assumptions for the future
= Pekabex Key drivers of the result: War, destabilization of prices andnon availability of construction services and materials, High demand in the construction market and significant increase in the company's revenues, Renewed need to renegotiate with clients, introduction of steel price indexation.
Slide 17: Safe development
Safe development Learning and Internal processes Client Finance development Healthy organisation Market expansion Technical excellence Growth and diversification of sales - open communication and cooperation between - Foreign expansion in Scandinavia and Western departments in processes and projects
Slide 18: Pekabex values
= Pekabex Respect Honesty : Responsibilty Self-improvement Open communication Pekabex values
Slide 19: Appendix
Pekabex Appendix ®
Slide 20: Selected Development Projects in 1Q 2022
= Pekabex Selected Development Projects in 1Q 2022
Slide 21: Development Projects
Development Projects Development projects gaining momentum as of 31.03.2022 apartments number _reservationnumbers ed omits Caer Apartamenty Origin Mechelinki 106 66 0 0 38% Apartamenty55 + Mechelinki (SMS) 58 6 0 0 90% Casa Fiore (Hafciarska) 40 2 24 0 35% Casa Baia (Hel) 69 8 0 0 88% Jasielska Phas
Slide 22: Hafciarska St. | Warsaw
= Pekabex Hafciarska St. | Warsaw Development project Casa Fiore On June 3, 2020, the Group acquired a plot of land for another development investment in Warsaw. Design works and preparation of the investment for sale are currently in progress. The Group estimates that as part of the investment, 40
Slide 23: Mechelinki | Gdynia
= Pekabex Mechelinki | Gdynia Development project Mechelinki On June 29, 2020, Pekabex S.A. and Pekabex Development Sp. z 0.0. concluded with Origin Investments Sp. z 0.0. and Origin Gdynia 1 Sp. z 0.0. ("Origin") an investment agreement for the joint implementation of the investment in Mechelinki c
Slide 24: Casa Baia | Hel
= Pekabex Casa Baia | Hel Development project Hel On 30 April 2021, the Group acquired a plot of land located in Hel, at Zeromskiego Street. As part of the planned modern building will be constructed, which will comprise an estimated 51 holiday flats and 1 commercial unit commercial premises. The us
Slide 25: Katedralna | Czestochowa
= Pekabex Katedralna | Czestochowa Development project Katedralna For the purpose of realizing the investment, an investment agreement was signed on 15 March 2021 between Pekabex Development Sp. z 0.0. (Investor 1) and Investor 2, which is the owner of land properties located in Czestochowa at Kated
Slide 26: Jasielska | Poznan
= Pekabex Jasielska 3 | Poznan Development project Jasielska 3 JA_SIELSKA is an intimate housing estate designed for people aware of their needs and the surrounding world. Three five-story buildings with mezzanine floors will be constructed in the 3rd stage of the investment at Jasielska Street, com
Slide 27: Selected realized contracts: Prefabrication contracts
= Pekabex Selected realized contracts Prefabrication contracts
Slide 28: Lodz Tubings
= Pekabex Lodz Tubings Contract contains production and delivery of 29.900 pcs. of tubings for 2 railroad tunnels in Lodz.
Slide 29: Dabrowa Gornicza, SK Innovation
= Pekabex Dabrowa Gornicza SK Innovation Construction contains warehouse buildings ca. 40 thous. m?. Prefabrication contains 4 500 elements (columns, beams, solid walls).
Slide 30: Goteborg and Malmo, Skanska
= Pekabex = Pekabex Goteborg Malmo Skanska Skanska Construction contains 6 residential buildings. Construction contains assembly of residential building. Prefabrication of parking hall contains ca. 3 834 elements (3-layer walls, solid - Prefabrication contains ca. 3 286 elements (19 045 m2 of HC sla
Slide 31: Goteborg, Prefabsystem Syd AB
= Pekabex Goteborg Prefabsystem Syd AB Construction contains 3 buildings: residential building, parking hall and kindergarten. Prefabrication of parking hall contains ca. 502 elements (3-layer walls, solid brick walls, columns, beams). si
Slide 32: Poznan, Echo Investment
= Pekabex Poznan Echo Investment Construction contains 2 residential buildings: 5 800 m? floor useablearea. Prefabrication contains 1 856 elements (3-layer walls, 2-layer walls, filigrees, solid walls, stairs, solid slabs, landings).
Slide 33: Selected realized contracts: Construction services
= Pekabex Selected realized contracts Construction services
Slide 34: Jaryszki and Bielsko-Biala, Panattoni
= Pekabex Jaryszki Panattoni - warehouse and office Construction contains warehouse and office building. Total floor area - almost 26,6 thous. m2. Prefabrication includes delivery and assembly of 850 elements (columns, beams, stairs, HC slabs, filgree slabs). The contract is realized by general cont
Slide 35: Bytow and Lublewo
= Pekabex Bytow Drutex - warehouse and office Construction contains warehouse and office building. Total floor area - almost 12 thous. m2. Prefabrication includes deliveryand assembly of 1200 elements (columns, beams, stairs, HC slabs, filgree slabs). The contract is realized by general contracting
Slide 36: Przyszowice and Poznan
= Pekabex = Pekabex Przyszowice Poznan BIMS Prologis Construction contains warehouse and office facility. Total floor Construction contains warehouse with walefare and office area - almost 10 600 m2. facility. Total floor area - almost 47 286 m2. Prefabrication contains 694 elements (columns, girder
Slide 37: Housing projects: Torun and Wloclawek
PFR Nieruchomosci | Torun UM | Wloclawek Housing project Housing project
Slide 38: Housing project: Sianow
PFR Nieruchomosci | Sianów Housing project
Slide 39: Housing and parking hall projects: Lublin, Poznan
TTS Development | Lublin MTP | Poznań Housing project Parking hall project
Slide 40: New key projects
= Pekabex New key projects + Contractvalue compared to revenues or 2021 tin PLN) Date Contractor Description «Contract value (%) Contract currency March 18, 2022 March 18, 2022 April, 2022 CTP Invest Poland Ltd CTP Invest Poland Anton Réhr Ltd Transport International Poznan The subject of the contra
Slide 41: Assets
ASSETS 31.03.2022 31.03.2021 31.12.2021 Non-current assets Goodwill 25 239 17 331 25 239 Intangible assets 2 648 2 358 3 067 Property, plant and equipment 391 614 392 037 392 129 Investment properties 25 333 8 081 25 304 Investments in related parties 2 171 505 569 Receivables and loans 895 2 756 1
Slide 42: Equity and liabilities
EQUITY AND LIABILITIES 31.03.2022 31.03.2021 31.12.2021 Equity Shareholders’ equity attributable to the Shareholders of the Parent Company: Share Capital 24 826 24 826 24 826 Own shares (-) - - - Share premium 25 245 25 245 25 245 Other reserves 2 485 (3 893) 26 Retained earnings 343 111 314 918 330
Slide 43: Income statement
01.01.2022 01.01.2021 01.01.2021 - 31.03.2022 - 31.03.2021 - 31.12.2021 Net sales 412 452 246 164 1 504 862 Costs of sales 353 173 199 629 1 310 733 Gross profit (loss) on sales 59 278 46 535 194 129 Selling expenses 25 063 16 726 84 723 Administrative expenses 14 331 11 429 52 657 Other operating r
Slide 44: Cash-flow from operating activities
01.01.2022 01.01.2021 01.01.2021 Cash-flow from operating activities - 31.03.2022 - 31.03.2021 - 31.12.2021 Net profit (loss) before tax 16 627 17 354 49 277 Adjustments for: Depreciation and impairment allowances of property, land and equipment 6 713 6 729 26 725 Change in fair value of investment
Slide 45: Cash flow from investing and financing activities
Cash flow from investing activities 01.01.2022 01.01.2021 01.01.2021 - - 31.03.2022 - 31.03.2021 31.12.2021 Purchase of intangible assets (175) (162) (2 079) Sale of intangible assets - - - Purchase of property, plant and equipment (3 199) (5 208) (17 518) Sale of property, plant and equipment 13 64
Slide 46: Thank You
= Pekabex THANK YOU