Budimex Sa · GPW:BDX
Budimex Sa — Investor Presentation (July 2024)
33 slides from Budimex Sa's investor presentation, July 2024
Slide 1: Investor presentation 1H'2024
Investor presentation 1H’2024
Slide 2: Backlog and contracting as a key KPI for the first half of the year
Backlog and contracting as a key KPI for the first half of the year Purchase of the Azalia 5,7 bn PLN of Group EBIT in first project– 60 MW Record level of 9,6 bn PLN of contracting in H1’24 half of the year at PV farm backlog 15,3 bn PLN pending contracts (vs 2,5 bn in H1’23) 7,3% (vs 6,3%) (CAPEX
Slide 3: Agenda
Agenda Macroeconomic background Financial results of Budimex Group Backlog & contracting FBSerwis & Mostostal Kraków Market and outlook CSR & ESG
Slide 4: Macroeconomic background
Macroeconomic background GDP dynamics and CPI inflation in Poland (%, y/y) According to CSO estimate from 2024 GDP 14,4 in Poland in 2023 increased by 0,2% 11,4 compared to 2022, which is lower than GDP dynamics CPI infation expected. 4,8 5,4 4,7 5,7 5,1 5,1 3,0 3,8 3,1 3,4 5,2 Domestic inflation in
Slide 5: Macroeconomic background
Macroeconomic background PMI indicator for Poland In July, the PMI dropped to 45 points from 47,1 points recorded at the beggining of 59,4 the year. This is the 26th consecutive 52,8 53,7 53,8 54,5 52,7 50,8 51,7 48,0 month below the base level of 50 points. 48,2 47,2 48,5 48,5 48,3 48,7 45,6 45,1 4
Slide 6: Components of construction and assembly production
Components of construction and assembly production Construction and assembly production dynamics (%, y/y, constant prices) Construction of buildings Civil engineering Specialised construction activities 9,3% 11,7% 11,3% 2,4% 2,6% 2,9% 1,3% 2,8% 2,8%5,4% 2,7% -4,9% -2,0% -1,2% -1,3% -8,5%-7,6%-10,6%
Slide 7: Real estate market
Real estate market Mortage loans applications (data in k) 141 148 128 109 112 119 128 The „Bezpieczny Kredyt 2%" program significantly 72 79 87 54 65 increased demand for mortage loans in the 40 40 second half of 2023, which resulted in a larger number of apartments sold by developers. 1Q'21 2Q'21 3
Slide 8: The situation of construction companies
The situation of construction companies Construction comapnies margin by size 11,9% 11,40% 11,2% 10,6% 9,9% 9,8% 11,10% 8,7% 8,8% 9,2% 8,2% 9,6% 7,1% 7,2% 7,5% 7,3% 7,4% 6,7% 6,5% 5,2% 5,1% 5,3% 5,60% 4,9% 4,1% 4,1% 4,1% 2,6% 2,4% 2,4% 1,5% 1,2% -0,5% 10-49 employees 50-249 employees >=250 employees
Slide 9: The situation of construction segment
The situation of construction segment Construction and assembly production prices dynamics (%, y/y) Prices of construction and assebly 15,2 porduction increased by 6% y/y in June. In 13,2 12,9 the January-June period the indicator 10,4 10,9 9,8 7,6 7,8 decreased by 7% y/y, while the individual 4,9 6
Slide 10: Situation of the construction market – stabilisation and prospects for improvement
Situation of the construction market – 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(%) 69,6 71,4 70,4 72,8 67,6 70,2
Slide 11: Prices of selected raw materials
Prices of selected raw materials 220 1Q’10 = 100 2Q’20 = 100 208 340 200 1Q’10 = 100 2Q’20 = 100 300 180 160 260 140 147 220 120 180 168 Concrete 100 140 151 80 Steel 100 60 2Q10 2Q11 2Q12 2Q13 2Q14 2Q15 2Q16 2Q17 2Q18 2Q19 2Q20 2Q21 2Q22 2Q23 2Q24 60 2Q10 2Q11 2Q12 2Q13 2Q14 2Q15 2Q16 2Q17 2Q18 2Q1
Slide 12: Agenda
Agenda Macroeconomic background Financial results of Budimex Group Backlog & contracting FBSerwis & Mostostal Kraków Market and outlook CSR & ESG
Slide 13: Budimex Group is not only Budimex SA
Budimex Group is not only Budimex SA Foreign Renewable Construction Services Other markets energy sources
Slide 14: Financial results for 1st half of 2024
Financial results for 1st half of 2024 Revenues EBIT Net profit (M PLN) (M PLN) (M PLN) -6,4 % 4 318 4 040 6,3% 7,3% 6,4% 6,9% + 8,5 % 296 +0,7% 273 275 277 H1'23 H1'24 H1'23 H1'24 H1'23 H1'24
Slide 15: Financial results by segments
Financial results by segments Construction segment The scale of revenues in the first half of 2024 in the construction segment was noticeably lower Revenues (M PLN) EBIT (M PLN) than in the same period of the previous year. The decline in sales resulted mainly from the 3634 3885 3590 5,4% 5,9% 7,2%
Slide 16: 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 2,6 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 06'14 06'15 06'16 06'17 06'18 06'19 06'20 06'21 06'22 06'23
Slide 17: Budimex Group dividend history
Budimex Group dividend history Budimex has regularly shared profit with shareholders for 16 years PLN/akcje In 2021, Budimex paid a dividend from the 2020 profit and an ∑= 215,5 PLN advance dividend for 2021, which included the profit from the 5 498 M = sale of Budimex Nieruchomości shares /share PL
Slide 18: Agenda
Agenda Macroeconomic background Financial results of Budimex Group Backlog & contracting FBSerwis & Mostostal Kraków Market and outlook CSR & ESG
Slide 19: Signed contracts (M PLN)
Signed contracts (M 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 5,7 1,6 2,4 0,2 0,3 0,5 1,8 0,9 0,2 2,1 0,5 0,7 0,3 0,0 0,5 0,9 0,4 1,5 0,7 2,5 3,2 0,1 4,1 0,7 2,9 3,1 3,2 0,2 0,2 2,7 0,6 0,1 1,2 0,8 12'19 12'20 12'21 12'22 12'23 06'23 06'24 Roads Hydrotechnical Railway General cons
Slide 20: Backlog (bn PLN)
Backlog (bn PLN) 226 active contracts at the end of H1’24 +16,7 % 15,3 Maturity of backlog (%)* 0,6 2% +27% in 12,7 13,0 13,0 2% 13,1 6% 2% 2% 2,8 railway 0,3 19% 0,8 0,3 26% 0,3 segment % 40% 22% 2,9 22% 0,5 3% 1,8 14% 2,9 2,9 0,3 2,8 1,1 8% 0,8 6% 0,8 3% 2% 21% 31% 2,2 0,7 3,3 3,3 6% 4,0 32% 25% 1
Slide 21: Contracts pending as of 06'24 (bn PLN)
Contracts pending as of 06’24 (bn PLN) Rail Baltica Contracts pending (bn PLN) 4 794 1% 5% 439 Infrastructure 38% Breakwater in Hydrotechnical 6% Port Gdynia 38% Railway 50% S16 Olsztyn- 50% 9,6 mld * Mostostal 1% Biskupiec Buildings 5% 3 x S10 413 6% 1 390 9,6 S17 Krasnystaw Północ-Izbica Rail Balt
Slide 22: Agenda
Agenda Macroeconomic background Financial results of Budimex Group Backlog & contracting FBSerwis & Mostostal Kraków Market and outlook CSR & ESG
Slide 23: FBSerwis – financial results
FBSerwis – financial results 9,9% 13,2% 17,4% 19,4% 16,8% 17,9% 14,8% 16,4% 14,8% 903 780 818 % EBITDA 146 131 137 610 118 Revenues (M PLN) 498 EBITDA (M PLN) 437 456 86 371 72 67 261 49 26 '17 '18 '19 '20 '21 '22 '23 H1'23 H1'24 '17 '18 '19 '20 '21 '22 '23 H1'23 H1'24 -0,1% 3,9% 8,9% 12,2% 10,8% 11
Slide 24: New contracts and key offers, Backlog
New contracts and key offers Backlog Signed contracts for two tasks in the GDDKiA tender for year-round road 85,1 maintenance in the Świętokrzyskie region in 2024-2028 with a total net value of 165,2 M PLN: o Task 1: 85,5 M PLN net (Busko-Zdrój) o Task 2: 79,7 M PLN net (Kielce) 937,3 310,8 Signed c
Slide 25: Mostostal Kraków – financial results
Mostostal Kraków – financial results** Cash Debt NTP 544 488 383 77 72 Revenues (M PLN) 323 66 Net cash (M PLN) 275 261 216 48 46 32 78 72 52 66 21 39 49 22 -7 -5 -2 2019 2020 2021 2022 2023 H1'23 H1'24 2019 2020 2021 2022 2023 H1'23 H1'24 535 531 33,6 Contracting (M PLN)* 401 407 332 271 14,5 13,6
Slide 26: Agenda
Agenda Macroeconomic background Financial results of Budimex Group Backlog & contracting FBSerwis & Mostostal Kraków Market and outlook CSR & ESG
Slide 27: Road and rail market waiting for growing volumes
Road and rail market waiting for growing volumes Expenditures of GDDKiA & PLK according to announced programs (bn PLN) 53 54 49 GDDKiA PKP PLK 39 41 41 15 19 14 33 32 27 15 14 25 24 18 15 12 9 9 12 38 34 35 26 26 18 21 20 15 15 15 2020 2021 2022 2023e 2024p 2025p 2026p 2027p 2028p 2029p 2030p Finans
Slide 28: CPK – plan update (bn PLN)
CPK – plan update (bn PLN) Old plan from 2019 New plan from 06’24 Updated status (w/o indexation) Decision to expand capacity of Chopin and Modlin 8,3 airports 25,8 30,1 Airport 42,7 162 M PLN of EU funding (CEF) for the preparation of design ∑ = 154,8 Railway ∑ = 131 documentation for the Sieradz P
Slide 29: Energy transformation – boost for construction market
Energy transformation – boost for construction market Power of the installed power plants in Poland (GW) 46 38 The market is waiting for the update of the NECP (National Coal 29 26 Energy and Climate Plan), which is to be presented to the 25 23 23 Lignite 18 19 18 Onshore wind European Union by the
Slide 30: Investment in Renewable Energy Sources (RES)
Investmentin 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 Company established by Budimex SA (51%) o sale of energy in a PPA contract to an external and Ferrovial Energy Infrastructure (49
Slide 31: Budimex Mobility charging stations
7 5 37 o Budimex Mobility in 28 2023 purchased > 160 19 11 32 charging stations 2 POWER UP POWER ABOVE o Until the end of 2026 > 7 2 TO 30 kW 460 stations in main 22 kW 1 fast standard urban centers 5 10 Total = 166 Launched statins divided into voivodeships
Slide 32: Agenda
Agenda Macroeconomic background Financial results of Budimex Group Backlog & contracting FBSerwis & Mostostal Kraków Market and outlook CSR & ESG
Slide 33: in 1st half of 2024
in 1st half of 2024 76 M PLN EBIT +9 bn PLN 9,1% 16 lat In subsidiary companies FBSerwis Contracts pending Gross margin of dividend payment and Mostostal Kraków 2,6 15,3 80MW bn PLN Net cash 7,3% bn PLN of renewable energy porjects owned EBIT margin Backlog