Budimex Sa · GPW:BDX
Budimex Sa — H1 2023 Earnings Presentation
33 slides from Budimex Sa's earnings presentation, March 2024
Slide 1: Investor presentation 1H'2023
Investor presentation 1H'2023
Slide 2: Agenda
Agenda Macroeconomic background Financial results of Budimex Group FBSerwis & Mostostal Kraków Market and outlook ESG
Slide 3: Macroeconomic background
Macroeconomic background GDP dynamics and CPI inflation in Poland (%, y/y) The IMF forecasts sustained inflation at double-digit levels and a significant weakening of GDP growth to 0.3% y/y in 2023. 14,4 Inflation in 2024 should be featured by single-digit growth at GDP dynamics Inflation (CPI) 11,9
Slide 4: Macroeconomic background
Macroeconomic background PMI indicator for Poland In June, the PMI fell sharply from May's 47.0 to 45.1, 59,4 signalling a deterioration in the health of Poland's 53,7 54,5 manufacturing sector for the fourteenth consecutive 52,8 53,8 52,7 50,8 51,7 48,5 48,5 48,3 month. The lower PMI readings in th
Slide 5: 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 24,6% 11,7% 9,3% 10,8% 5,9% 5,9% 6,6% 2,9% 5,4% 2,4% 2,6% 1,3% 2,8% 2,8% -2,0% -1,2% w -5,3% -4,9
Slide 6: 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 shortage Percentage of construction companies considering material of materials as a barrier to business (%) costs as a barrier to business (%) Percentage of construc
Slide 7: Prices of selected raw materials
Prices of selected raw materials 220 208 340 200 300 1Q’10 = 100 1Q’16 = 100 192 1Q’10 = 100 1Q’16 = 100 180 260 160 220 140 209 180 183 120 Steel Concrete 140 100 80 100 60 60 2Q'10 2Q'11 2Q'12 2Q'13 2Q'14 2Q'15 2Q'16 2Q'17 2Q'18 2Q'19 2Q'20 2Q'21 2Q'23 2Q'23 2Q'10 2Q'11 2Q'12 2Q'13 2Q'14 2Q'15 2Q'
Slide 8: Construction companies' margins by size
Construction companies' margins by size Margins are levelling out in the market between GW Number of bankruptcy and restructuring proceedings in and smaller players the construction sector 331 280 11,9% 10,6% 10,6% 218 213 9,8% 205 9,2% 8,7% 8,8% 8,2% 9,6% 168 7,5% 160 7,1% 7,2% 7,3% 143 8,5% 135 13
Slide 9: Agenda
Agenda Macroeconomic background Financial results of Budimex Group FBSerwis & Mostostal Kraków Market and outlook ESG
Slide 10: Results from continuing operations
Results from continuing operations Revenues EBIT Net profit (mln PLN) (mln PLN) (mln PLN) +7,9% 4 318 5,9% 6,3% 5,0% 6,4% 3 998 273 275 +16,3% +33% 235 201 H1'22 H1'23 H1'22 H1'23 H1'22 H1'23
Slide 11: Financial results by division
Financial results by division Construction In H1 2023, revenues in the construction segment increased by PLN 251 million year-on-year Revenues (mln PLN) EBIT (mln PLN) 3 885 (+6.8% year-on-year). 3 634 5,3% 5,4% 5,9% 3 029 229 197 161 The profitability of the construction segment amounted to 5.9%, h
Slide 12: Contracts signed (bn PLN)
Contracts signed (bn PLN) Contracts pending Contracts pending (bn PLN) – as of (bn PLN) – as of 9,0 06’2022 06’2022 0,6 7,9 7,5 0,4 7,0 0,2 1,7 0,8 0,9 0,0 1,9 0,8 2,9 Σ4,6 2,2 Σ4,6 1,6 2,4 3,3 1,8 0,2 0,5 0,2 0,3 0,5 0,7 0,0 0,5 0,9 3,2 0,7 2,5 2,1 0,1 4,1 0,1 0,7 3,1 0,5 0,2 0,2 2,9 0,7 0,6 1,2 0,
Slide 13: Backlog (bn PLN)
Backlog (bn PLN) 13,0 13,3 12,7 12,2 2% 0,2 2% 0,3 10 000,0 0,8 6% 2% 0,3 10,8 1,8 2,9 22% 3,5 26% 14% 25% 0,7 7% 3,0 8 000,0 1,1 8% 0,8 6% 0,5 3% 1,6 15% 4% 0,5 0,8 4% 2,4 18% 3,3 2,0 6 000,0 25% 17% 4,0 32% 1,1 0,9 3,6 33% 9% 7% 0,8 6% 4 000,0 0,4 3% 0,5 7% 5,0 5,6 5,5 4,7 39% 42% 2 000,0 37% 45%
Slide 14: Evolution of the net cash position
Evolution of the net cash position Net cash position in Budimex Group (bn PLN) 3,3 3,1 3,0 2,8 2,8 2,7 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 1,3 1,4 1,4 1,2 1,2 1,2 1,2 1,1 1,0 1,0 0,8 0,7 0,6 0,5 0,5 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 15: 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 4 587 MLN = sale of Budimex Nieruchomości shares. /share
Slide 16: Agenda
Agenda Macroeconomic background Financial results of Budimex Group FBSerwis & Mostostal Kraków Market and outlook ESG
Slide 17: FBSerwis – financial results
FBSerwis – financial results 3,5% 8,0% 9,9% 13,2% 17,4% 19,4% 16,8% 17,9% 17,0% 16,4% 780 818 146 131 610 118 Revenues (mln PLN) EBITDA (mln PLN) 498 % EBITDA 437 86 371 369 72 63 261 49 179 126 26 14 4 '15 '16 '17 '18 '19 '20 '21 '22 06'22 06'23 '15 '16 '17 '18 '19 '20 '21 '22 H1'22 H1'23 -1,3% -0,
Slide 18: FBSerwis – Future plans
FBSerwis – Future plans Investments on existing plants - modernisation and adaptation to requirements. Focus on greenfield investments. Selective approach to investment projects (biogas plants, composting plants and building products projects) M&A - further acquisition plans.
Slide 19: Mostostal Kraków – financial results
Mostostal Kraków – financial results 261 Cash Debt NTP 219 42 Revenues (mln PLN) Net cash (mln PLN) 139 136 30 31 101 48 21 9 34 32 17 22 -6 -3 -1 -8 H1'19 H1'20 H1'21 H1'22 H1'23 H1'19 H1'20 H1'21 H1'22 H1'23 320 4,9 Contracts signed (mln PLN) 2,7 245 1,5 0,1 EBIT (mln PLN) 128 100 106 -13,2 H1'19
Slide 20: Mostostal Krakow - M&A of Konstalex
Mostostal Krakow - M&A of Konstalex Mostostal Kraków production capacity (thousand tonnes) In May 2023, Mostostal Kraków completed the purchase of its third steel 17 000 construction plant, the Konstalex company located in Radomsko. Type of steel construction Mostostal Krakow’s production capacity i
Slide 21: Budimex - key events in H1 2023
Budimex - key events in H1 2023 Budimex pays a dividend of PLN 459 M (PLN 17.99 per share) - the 15th year in a row (total of PLN 179.8 per share). Mostostal Krakow acquires Konstalex and becomes a leader in the domestic steel construction market. Budimex publishes ESG strategy for 2023 - 2026. Sign
Slide 22: Agenda
Agenda Macroeconomics background Fiancial results of Budimex Group FBSerwis & Mostostal Kraków Market and outlook ESG
Slide 23: Summary of investment programmes
Summary of investment programmes Government Programme for National Railway PSE until 2036 the Construction of National Programme to 2030 Roads to 2033 294 bn PLN >100 bn PLN 62 bn PLN Programme of 100 Bypasses CPK Nuclear power plants by 2030 28 bn PLN ≈140 bn PLN ≈200 bn PLN Programme for Investmen
Slide 24: National investment programmes - rail
National investment programmes - rail The Ministry of Infrastructure is launching consultations on the National Railway Programme worth. PLN 80 billion. National Railway Programme - planned outlays of PLK SA The programme is a direct continuation of the National Railway Programme until 2023. The doc
Slide 25: Investment programmes - infrastructure
Investment programmes - infrastructure PBDK - programme update (data in bn PLN ) 85,2 Main features of the updated PBDK o Largest road programme in history o Total investment value of PLN 294.4 billion 25,1 25,5 25,7 22,5 22,6 22,6 22,6 o Implementation of investments of over 6,100 km. 16,4 o Implem
Slide 26: Investment programmes - infrastructure
Investment programmes - infrastructure Programme of 100 Bypasses (data in bn PLN ) The cost of implementing the Programme for the 5,7 5,6 Construction of 100 bypasses has been estimated at 4,9 PLN 28 billion. Funding will be provided by the National 3,1 Road Fund. 3,0 2,0 2,2 1,3 The scope of the pr
Slide 27: EU funds
EU funds European Funds for Infrastructure, Climate, Environment 2021-2027 (FENiKS) In December 2022, the European Commission (EC) programme (bn EUR) approved all Polish Cohesion Policy programmes for 26,2 24,1 2021-2027, agreed on the basis of the developed Infrastructure 7,5 Partnership Agreement.
Slide 28: Agenda
Agenda Macroeconomic background Financial results of Budimex Group FBSerwis & Mostostal Kraków Market and outlook ESG
Slide 29: E Targets
E Targets 01 02 03 04 05 06 Striving for : 100% Striving for: 100% Aiming for: 20% Towards net Closing the raw Protection of of energy obtained of the energy reduction in Scope zero by 2050 material cycle water resources from the market produced by 1 and 2 2030 CO2 and biodiversity comes from RES Bu
Slide 30: S Targets
S Targets 01 02 03 Integration of generations, aiming for: Safe and decent work: Good neighbour and strengthening relationships: < 8.5% Maintain voluntary turnover Safety visits to contracts and meetings with rate 2026 employees and business partners Educational programmes in schools and technical c
Slide 31: G Targets
G Targets 01 02 03 04 We are an ethical Anti-corruption Risk management Cyber security company Cyclical anti- Integration of ESG Improving Revision and expansion of corruption training risks into the risk protection ethics issues 2023 among employees. management mechanisms against system. cyber thre
Slide 32: Agenda 2030
Agenda 2030 We have joined the Partnership for the Implementation of the Sustainable Development Goals The 2030 Agenda is a strategy for world development up to 2030, contains 17 Sustainable Development Goals divided into 5 areas : people, planet, prosperity, peace and partnership Budimex Sustainabl
Slide 33: Investor presentation 1H'2023
Investor presentation 1H'2023