Slide 1: Financial Results FY 2021, Perspectives 2022+
FINANCIAL RESULTS FY 2021 PERSPECTIVES 2022+ INVESTOR PRESENTATION MAY 2022 2022-06-07
Slide 2: Legal Notice
LEGAL NOTICE This presentation does not constitute an offer to sell any securities of Dekpol S.A. (The "Company"), in particular, it does not contain information about the securities and the terms of their purchase, and does not constitute an invitation to sell securities, submit offers for their pu
Slide 3: Dekpol Group
specialization in construction of logistics, DEKPOL GROUP • industrial and cubature facilities • short- and medium-term contracts (execution time 6 - 9 months) • flexibility provided by unique resources: machinery park, own prefabricated products, construction teams Michał Skowron, Chairman of the B
Slide 4: Record Financial Result
RECORD FINANCIAL RESULT Revenues Operating profit Net profit (million of (million of PLN) (million of PLN) PLN) 1256 76 113 1055 +20,3 +20,0 one-off One-off 51 53 81 772 56 71 +24 +27,6 one-off one-off 93 81 43 27 2019 2020 2021 2019 2020 2021 2019 2020 2021 • in 2021, dynamic growth in terms of rev
Slide 5: Agenda
AGENDA 1. CONSTRUCTION ACTIVITIES 2. DEVELOPER 3. STEEL 4. Financial results FY 2021 5. Summary 5
Slide 6: Construction Activities
© dekool. BoA BUDOWNICTWO
Slide 7: Construction Activities
CONSTRUCTION ACTIVITIES • specialization in construction of >40 Projects in progress (2021) logistics, industrial and other cubature facilities • construction process control - access >100 Contract Managers, Site Managers, Industry Managers to own human resources, equipment and prefabricated materia
Slide 8: Complex Market Environment in 2021 and 2022
COMPLEX MARKET ENVIRONMENT in 2021 and 2022 • high demand for industrial constructions • disrupted supply chains due to the COVID-19 pandemic - sharp price • record year in logistics construction (3.1 increases and disrupted material million m2 delivered) availability in 2021 • intensification of PR
Slide 9: Financial Results
FINANCIAL RESULTS Revenues * (million of PLN) Operating result 850 EBIT (million) +52% 49,6 margin (%) 45,3 654 7,5% 7,2% 6,7% 6,9% 6,9% 6,8% 7,0% 6,4% 5,7% 5,7% 29,7 487 6,9% 5,0% 5,0% 6,1% 5,8% 351 17,1 17,5 249 13,6 194 190 11,7 10,6 10,8 177 166 9,2 8,4 7,7 122 117 122 115 6 7 101 87 5 1Q19 2Q19
Slide 10: Supply / Demand L&I
SUPPLY / DEMAND L&I • a record year 2021 in the industrial and Warehouse market logistics space sector; Supply and vacancy rate 4Q21 Net demand in 1-3Q21 (m2) • 3.9% (0.93 million m2) record low vacancy rate in the warehouse market; • crisis in Ukraine without impact (so far) on the number of valuat
Slide 11: Creating a Competitive Advantage
CREATING A COMPETITIVE ADVANTAGE GO LIVE HUMAN CAPITAL: 01.06.2022 • local implementation teams (25) - team recomposition focused on competences, values and leadership of leaders; OFFER: • Expanding sales forces and local valuations - better market recognition and faster response to the needs of pot
Slide 12: Perspective 2022+: Strong Order Wallet
PERSPECTIVE 2022+ Contracting (mio PLN) Net value of contracts (PLN million) STRONG ORDER WALLET Left to implementation (PLN million) restriction of bidding during the largest price increases 1300 1250 Structure of GC projects 1034 (as of 31.12.2021) 875 910 910 Other 800 12% 750 621 575 574 500 432
Slide 13: Perspective 2022+
PERSPECTIVE 2022+ Dekpol Budownictwo is the general contractor of the first choice • proactivity and orientation to customer needs; • available and competitive service offer; FOCUS • technical expertise Operational goals of Dekpol BUDOWNICTWO • expansion towards a committed and competent organizatio
Slide 14: Slide 14
Slide 15: Deweloper
DEWELOPER • stable diversified business in the residential and apartment segment • substantial bank of land at the level of approx. 198 thousand m2, of which approx. 65 thousand m2 in premium projects • multi-dimensional and specialized competences in segments : • popular • high-standard • premium •
Slide 16: Deweloper - Financial Results
DEWELOPER - FINANCIAL RESULTS Revenue, recognition of the result Operating result Value (PLN million) Quantity EBIT (million) margin (%) 450 800 44,9% 400 700 49,3 350 622 22,0% 591 600 17,3% 17,5% 13,6% 41,4 573 14,0% 300 287 540 12,3% 254 500 6,9% 19,4% 490 250 14,4% 250 10,5% 200 406 400 200 22,7
Slide 17: Sales Dynamics
SALES DYNAMICS Contracting and offer Offer (number of premises offered for sale) Contracting high offer and contracting Sales target 2021 For 2022 high offer and sales target raised from 350 to 480 units set at 460 units 569 713 738 713 715 185 490 460 565 480 141 Dynamic expansion of the 143 382 44
Slide 18: Diversified Offer
DIVERSIFIED OFFER % of sales of premises on offer - as of 31.03.2022 715 lokali w ofercie lokale zakontraktowane lokale w ofercie Trimare etap I 14% 27 162 189 Villa Neptun 93% 37 40 Baltic Line 65% 39 21 60 Puck Bay Baltic Porto 26% 19 53 72 Sol Marina etap II 42% 53 74 127 Sol Marina etap I 99% 91
Slide 19: Investment Pipeline 2021-2025
INVESTMENT PIPELINE 2021-2025 favorable timing of planned implementation 2022 2023 2024 2025 2026 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Neo Jasień etap I w budowie 104 Osiedle Pastelowe etap IIa w budowie 225 Baltic Porto w budowie 72 Trimare etap I w budowie 189 Osiedle Kociew
Slide 20: Dekpol Steel
dekpol.
Slide 21: Backhoe Bucket Production Leader
BACKHOE BUCKET 95% of total sales are exported PRODUCTION LEADER ~1000t steel processing per month 33tys.m2 area of production halls 500+ qualified staff 21
Slide 22: Financial Results
FINANCIAL RESULTS Revenues * (PLN million) Operating result (PLN million) EBIT (million) margin (%) 120,4 12,6 The best quarterly 11,4 result in the company's history 90,7 14,4% 11,0% 14,0% 7,4% 10,0% 12,7% 80,2 10,5% 7,3% 10,5% 1,5% 4,2% 5,8 36,1 4,2 30,0 29,0 3,5 23,6 25,2 2,4 2,8 20,0 16,7 19,9 2
Slide 23: Market Environment
MARKET ENVIRONMENT • high level of orders •COVID-19 absenteeism •steel prices soaring MACRO DEMAND EMPLOYEES RAW MATERIALS • favorable since 3Q21 • less staff availability conditions for New customers: Hitachi, exports (PLN / •no steel available SMP, Steelwirst EUR) / 90% of •inflation of wages and
Slide 24: The Variable Steel Market
THE VARIABLE STEEL MARKET • reduction of steel production capacity in the EU Transaction Price Data Sheet – MEPS EUROPE by approx. 50 million tonnes (2009-2019) in favor Hot Rolled Coil Hot Rolled Plate of imports - through non-competitive +97% EUR /t environmental costs 2000 a price surge of hot-ro
Slide 25: Pipeline: Order Trend
PIPELINE Order trend (PLN million) Maintaining high dynamics of • Significant increase in orders from Q3 2020 : orders in Q1'22 16 • acquiring new customers (Hitachi, CNH, +35% Steelwirst) • development of cooperation with new (e.g. growth in Q4 2021 14 CASE) and existing partners (e.g. rising wave
Slide 26: Overscaling 2023+
OVERSCALING 2023+ The INTEK plant in Lubawa was taken over in November 2021 26
Slide 27: Overscaling 2023+
OVERSCALING 2023+ The INTEK plant in Lubawa was taken over in November 2021 27
Slide 28: Overscaling 2023+ Pinczyn Lubawa
OVERSCALING 2023+ Full Pinczyn processing Revenues (PLN million) capacity +50% r/r COVID effect .PINCZYN. .LUBAWA. 15 27 52 73 91 80 120 150 2015 2016 2017 2018 2019 2020 2021 capacity'21 Plan to increase production capacity revenues (PLN million) Full processing capacity of the plant in Pinczyn 150
Slide 29: Financial Results of the Dekpol Group
FINANCIAL RESULTS OF THE DEKPOL GROUP
Slide 30: Dekpol Group Consistent Scale Construction
DEKPOL GROUP CONSISTENT SCALE CONSTRUCTION Revenues (PLN million) Operating profit (PLN million) +19,0% +40% Other STEEL GC Deweloper 1256 1055 113 254 837 81 772 287 71 49 161 579 155 48 42 52 850 200 654 12 13 552 22 30 259 487 50 36 4 36 30 45 293 21 23 203 73 120 52 91 80 6 8 11 6 13 27 3 2016 2
Slide 31: Selected Effects of the 2021 Results Account vs. 2020
SELECTED EFFECTS OF THE 2021 RESULTS ACCOUNT vs. 2020 (PLN million) 75,8 VALUE +VALUE VALUE +VALUE 52,8 55,5 VALUE increase in gross higher fixed costs - the effect of larger scale and bargain purchase profit on sales + inflation recognition effect 21% y / y 71,9 (INTEK) 62,5 52,8 55,5 Net profit 20
Slide 32: Consolidated Net Result
CONSOLIDATED NET RESULT Net profit (PLN million) Net profit (PLN million) 76 net profit normalized one-off events and balance sheet effects 39,5 +VALUE one-off 51 53 26,6 16,3 normalize 20 56 25,2 d net profit +24 19,4 one-off 11,6 24,9 11,1 -VALUE 8,1 8,3 5,9 6,7 7,5 19,5 27 9,3 1Q19 2Q19 3Q19 4Q19
Slide 33: Stable Financial Situation
STABLE FINANCIAL SITUATION Net debt (PLN million) at the end of the period and ND / 300 EBITDA ttm 6 200 6 Net debt (PLN million) Net debt / EBITDA 182 180 250 250 242 5 5 160 217 219 141 209 140 200 182 180 4 4 4,1 173 120 106 150 3,4 3,4 141 3 100 3 130 119 106 2,8 80 100 2,4 2 2 2,2 2,1 60 2,2 1,
Slide 34: Improvement of Term Bonds Structure
IMPROVEMENT OF TERM BONDS STRUCTURE Bonds - term structure (PLN million) Bonds - term structure (PLN million) CEL: STRUKTURA FINANSOWANIA (as of 31.12.2020) (as of 31.03.2022) Deweleper Budownictwo 97,7 DSA 82,1 65,8 10,0 62,5 50,0 12,5 15,7 35,0 50,0 50,2 11,0 9,0 37,1 9,0 2022 2023 2024 2025 2021
Slide 35: Cash Flow
CASH FLOW Cash Flow Account FY 2021 - selected items (PLN million) Operating flows - increased demand for Cash 1.01.21 157,5 working capital, incl.: Gross profit +VALUE - trade receivables PLN 406 million (including PLN 256 million not overdue - PLN 208 million Change in receivables -317 due within
Slide 36: Summary and Perspectives for 2022+
SUMMARY AND PERSPECTIVES FOR 2022+
Slide 37: Financial Ratios
FINANCIAL RATIOS Ttm revenues EBITDA ttm Net profit ttm Market valuation (PLN million) (PLN million) (PLN million) (2.05.2022) 1255 Share price 24,8 PLN VAL 76 1055 UE Number of 8,4 mln shares 92 53 Capitalization 208 mln Net debt 141 mln C/Z 2,7 (normalized C/Z) (3,7) EV/EBITDA 2,5 (normalized (3,0
Slide 38: Outlook for 2022+
OUTLOOK FOR 2022 + BUDOWNICTWO • short project life cycle (6-8 months), • Q4 2021 pipeline - PLN 1.3bn, approx. PLN 0,57bn to be realized careful bidding, short offer deadline (14 • taking advantage of the strong demand from industrial construction days> 7 days)) - to attract new customers, develop
Slide 39: Environmental
• Analysis of environmental and spatial impacts of investments • Checking the Development Plan for other investments that have an Goal 2022 ENVIRONMENTAL impact on the environment in the area • Undertaking remediation (cleansing) activities • Use of redundant factors in design • Considering the poss
Slide 40: Thank you for your attention
Thank you for your attention INVESTOR RELATIONS : FINANCIAL COMMUNICATION : Agata.Dzieciolowska@ccgroup.pl Katarzyna.Sadowska@ccgroup.pl