Poznanska Korporacja Budowlana Pekabex Sa · GPW:PBX
Poznanska Korporacja Budowlana Pekabex Sa — Pekabex — Q3 2019 Earnings Presentation
66 slides from Poznanska Korporacja Budowlana Pekabex Sa's earnings presentation, January 2020
Slide 1: January 2020
January 2020
Slide 2: Agenda
Agenda Group Overview Market Environ Financial Overview Appendix = Pekabex
Slide 3: Pekabex in numbers
Pekabex in numbers Solid fundamentals create basis for dynamic development No.1 Leading Polish manufacturer 1,947 People working in Pekabex Group 182,000 (m3) prefabricated elements produced PLN 308 m Value of backlog as of 31,12.2018* PLN 886 m Revenues PLN 82 m EBITDA** S PLN 51m Net income -PLN4m
Slide 4: Why Pekabex?
Why Pekabex? High quality of products and service efficiency Product, market and geographical diversification Well qualified and experienced staff Strong financial position and conservative financial policy
Slide 5: Why Prefabrication?
Why Prefabrication? High quality - increased control of production circumstances Durability - outsdanding performance in terms of accoustic and thermal insulation Cost savings Eco-Friendly Short assembly time - production automation
Slide 6: History
History Powerful transformation into the market leader 2019 1972 @ = Pekabex New, 5th plant under construction in Gdansk, Poland Realization of first pilot development project - housing estate in prefabricated technology Strategical automation and robotization aimed to improve efficiency Production
Slide 7: Prefabrication technology
Prefabrication technology Largest experience in Poland = In 2011-2019 Prefabex Group has delivered prefabricated structures to over 1200 objects in Poland and abroad = Pekabex Group is experienced and leading entity on Polish market Panattoni halls (2 272921k 44932 k PLN — ao (16 780 KPLN - Group) 4
Slide 8: Market Consolidation
Market Consolidation Organic growth supported by acquisitions Pane EaG Centrum Nowoczesnej Prefabrykacji Kokoszki Prefabrykacia S.A Organized part of enterprise of 0.0 Ergon Sp. 2.0.0. April 19, 2012 Date November 17, 2014 Date March31, 2015 January 15, 2016 Price PLN 12,51 million Price PLN 17,05 m
Slide 9: Well located plants strategically located plants guaranteeing customer satisfaction
Well located plants 5 strategically located plants guaranteeing customer satisfaction = Optimal location of prefabrication plants (in the west, north, central and south of Poland) facilitate acces to the clients and to the raw material = Group plants are modernly equipped and are being gradually exp
Slide 10: Development strategy
Development strategy Leading Polish construction Group with strong appetite to develop on EU markets Complex offer and innovative solutions Creation of “Pekabex System” / entering residential market In Poland Ongoing improvement of operational efficiency Automation and digitization Foreign expansion
Slide 11: Comprehensive offer
Comprehensive offer Special emphasis on meeting clients’ expectations Pekabex Group combines competences in Designing Production Transport Assembly Site work Complex offer Y Customisation of provided offers Y Ability to realize more complex projects with potentially higher margins Y Ability to reali
Slide 12: Products
Products = Prefabrication is the practice of assembling components of a structure in a factory and transporting all assemblies to the construction site = Pekabex produces traditional reinforced elements, as well as modern prestressed parts = Reinforced and prestressed elements are applicable in prac
Slide 13: Products
Products Modern solutions for housing Advantages of prefabricated elements in housing: No scaffolding at the construction site (ready-made facade out of factory) = Noneed for cutting into walls (fixtures installed before pouring concrete) = Noneed for plastering (high surface accuracy) Immediate fin
Slide 14: Products
Products Environmental aspects = Pekabex is aware of a huge role of natural environment for every human being and future generations = Managementis involved into environmental protection, and undertakes actions to implement greener solutions = Pekabex has implemented the Enviroment Protection Policy
Slide 15: Prefabrication compared to other technologies
Prefabrication compared to other technologies Many advantages over other technologies available =z) A Quick assembly (possibility of A High fire resistance (lower insurance carrying out work at low cost) temperatures) ‘A Durability Prefabricated reinforced Aa Quality (built in the factory vs at the
Slide 16: Product scope
Product scope Increasing value added = Scope of work differs depending on the decision made by investor = Group offers wide range of services including both delivery only and complex realization @ @ © @ @ rer Gres iinet = Pekabex 7 i Oo088688080
Slide 17: Production volume and financial performance
Production volume and financial performance Strong and continous growth Volume of production in 2003-2019 (’000 m3) Revenues (mn. PLN) EBITDA =EBITDA+ Net Income = Net Incomes 886 505 529 318 328 351 219 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2011 2012 2
Slide 18: * company's estimates
▪ ▪ ▪ ▪ ▪ * company’s estimates ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Slide 19: Agenda
Group Overview Market Environment Agenda Financial Overview Summary Appendix = Pekabex 18
Slide 20: Market Environment
Market Environment Growth of construction market boosts Pekabex development = Many of planned investments or those already being realized, involves the prefabrication technology = Optimistic scenario of constant industry development rate will support growth of prefabricated structures market Value o
Slide 21: Entrepreneurs are looking with more optimism at the construction market
▪ ▪ ▪ Enterpreneurs are looking with more optimism at the construction market… … and backlog has been growing steadily over the past five years 30 10 -10 -30 -50 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19
Slide 22: Source: PMR – construction sector in Poland H2 2019
▪ Source: PMR – construction sector in Poland H2 2019, p. 30, 2019
Slide 23: Agenda
Agenda Market Environm Appendix = Pekabex 22
Slide 24: Selected financial data
Selected financial data Revenue growth and stable margins Revenues (in PLN ’000), gross margin 20,5% EBITDA (in PLN ’000), EBITDA margin* 10,3% 9.9% 18,6% 3 17,6% 162% a Tl 36 a8 2016 2017 2018 2017Q1-Q3_2018Q1-Q3__2019Q1-Q3 2016 2017 2018 2017Q1-Q3_2018Q1-Q3_2019Q1-Q3 EBIT (in PLN ’000), EBIT margi
Slide 25: Selected financial data
Selected financial data Well diversified revenue sources Revenue structure in 2018 by segments Revenue structure in 2018 by geographical area Production.___ ____ Others Germany __ services - 0.6% 3.6% 3.6% Scandinavia __ 18.0% Ce \_Prefabrication ue come Revenue structure by segments Profit by segme
Slide 26: Selected financial data by segments
Selected financial data by segments Stable margins in most important segments Prefabrication contracts* - segment profit (in PLN ’000) and margin Lal rl vs : a Construction services* - segment profit (in PLN ’000) and margin 88% 3% 1.4% 3,6% 0,9% aa 4,206 4315 3 1,845, Ga a — 2017 2018 2017Q1-Q3 _20
Slide 27: Selected financial data
Selected financial data Stable and safe level of financial leverage Long term and current financial liabilities* long-term financial liabilities = current financial liabilities 107,735 86,006 ‘ => Be Cash and cash equivalents 99,288 7,820 201793 201893 201993 201703 20183 201993 Net Debt —™-Net Debt
Slide 28: DPS (PLN) % of EPS
▪ ▪ 0,31 0,16 0,09 0,11 0,08 DPS (PLN) % of EPS % of EPS***
Slide 29: ▪ ▪ ▪ 1,5 0,5 100 00 0 0 -10000 -0,5 -20000 -30000 -1
▪ ▪ ▪ 700 00 2 600 00 1,5 500 00 400 00 1 300 00 200 00 0,5 100 00 0 0 -10000 -0,5 -20000 -30000 -1
Slide 30: Backlog
Backlog Strong, well-diversified backlog Backlog (thous. PLN) 647,956 427,432 "=contracts to be realized in following years 340,626 307,704 s=contracts to be realized in next year 14,280 contracts to be realized in current year 30.09.2017 30.09.2018 31.12.2018 30.09.2019 = Pekabex Group systematical
Slide 31: Agenda
Agenda Market Environment Appendix = Pekabex 30
Slide 32: Summary
Summary Growth drivers Gs) a) Prefabricated constructions as a response to the shortage of qualified employees and rising costs of materials A) Time and speed pressure of conducted contracts A) Balanced strategy of acquisitions and organic growth Eco-Friendly - less concrete, less steel, increased d
Slide 33: Agenda
Agenda Market Environment Appendix = Pekabex 32
Slide 34: Group and shareholder structure
Group and shareholder structure High transparency of the company’s structure Group structure Pekabex S.A. (Holding) - 1 Centrum Kokoszki ») TM Pekabex Projekt Pekabex Pekabex Pekabex Projekt Urabe Ela S.A. Pekabex Pref S.A. Nowoczesnej Prefabrykacja Inwestycje II S.A. Development ene ted "A sp. 20.0
Slide 35: Management
Management Experience, knowledge and reliability Robert Jedrzejowski President of the Board of Pekabex S.A. He is a graduate of University of Maria Sktodowska-Curie in Lublin as a M.Sc. of law. Since 1994 he has a licence of stockbroker and since 2011 a licence of syndic. He has many years of experi
Slide 36: Management
Management Experience, knowledge and reliability Przemystaw Borek Vice-President of the Board of Pekabex S.A. Graduate of the Gdansk University of Technology, Civil Engineering Department in 1995, gained his M. Sc. degree in Building and Engineering Structures. He was using his practical skills of d
Slide 37: Management
Management Experience, knowledge and reliability t 8 ° Tomasz Seremet Member of the Board of Pekabex Bet S.A. Graduate of Technical University in Poznan, Building Engineering, Architecture and Environment Engineering Department, obtained M. Sc. title in range of building and engineering structures.
Slide 38: Key events - 3Q 2019
Key events - 3Q 2019 Growing experience in Poland and abroad F » 1. Extension of an F New markets We love beauty 5th plant in Gdansk existing plant in Construction phase ll Mszczonow - “a Building a new hall Further exepansion in Scandinavia Phase |: Highest — One of the most standard, all modern an
Slide 39: 5th plant
5th plant Building a new, modern plant in Gdansk Building area consist of a6 713 m? hall, 446 m2 welfare and office facilities, 3 136 m? entresol (10 296 m2 in total). Production capacity - 500k m? of finished product per year In January 2018 Kokoszki Prefabrykacja obtained authorisation to operate
Slide 40: Construction phase II
Construction phase Il Estate Ja_Sielska Residential complex consist of 110 apartments (total usable area 5912 m2). In October Pekabex has obtained a building permit for phase II of Ja_Sielska estate. As of 5 December 2019, 22 contracts for an apartment were signed and 12 apartments were reserved. As
Slide 41: New markets
New markets In August 2019 Pekabex signed a construction contract regarding designing, production, transport and assembly of precast structures fot the hospital in Odense (DP03 building). In mid-October 2019 Pekabex initiate the assembly of prefabricated structure (14 000 m3 in total) with and end d
Slide 42: We love beauty
We love beauty Tetris Berlin, HABL AM Tacheles Berlin, Germany In June 2019 Pekabex started realization of contract in Germany. Scope of work: production and delivery of prefabricated elements (692 elements). End date: April 2021. = Pekabex
Slide 43: Selected realized contracts
Selected realized contracts Diversity = Pekabex
Slide 44: Panattoni hall
Panattoni hall Bielsko-Biata = Construction contains production and storage hall - total area c.a. 27 000 m2. = Contract was finished and protocol was signed in June 2019. = Pekabex 43
Slide 45: Panattoni hall
Panattoni hall Sekocin = Construction contains 2 production and storage hall - total area c.a. 38 000 m2. = Pekabex
Slide 46: Panattoni hall
Panattoni hall Biatystok = The scope of work includes the construction of 3 warehouse and logistics buildings with a total area of approx. 38 thousand. m2. including associated infrastructure. = Pekabex 45
Slide 47: Prologis Park
Prologis Park Poznan = Construction contains 2 production and storage hall - total area c.a. 13 100 m2. x o 2 cf 2 v 6 / = Pekabex 46
Slide 48: Prologis hall
Prologis hall Ruda Slaska = Construction contains warehouse - total area c.a. 51 200 m (hall 48 600 m/, office building 2 500 m2). = Prefabrication contains 1 200 elements (docsk, columns, griders). = Pekabex 47
Slide 49: MLP
MLP Pruszkow = Construction contains warehouse with walefare and office facility. = Total area - almost 11 400 m?. = Pekabex
Slide 50: Olivia Business Center
Olivia Business Center Gdarisk = The contracts concern the construction of a complex of 8 office buildings (c.a. 150,000 m2). = Complex include the highest (180m) prefabricated office building in Poland. = Pekabex 49
Slide 51: Wrzesnia
VW Wrzesnia = Contract contains the construction of 2 production and storage warehouse - total area c.a. 13 100 m2. = Pekabex 50
Slide 52: Raben
Raben Wojanowo = Construction contains 3 warehouses with walefare and office facilities (11 700 m2) and other necessary technical infrastructure (total area 42 000 m2) = Expected end date: March 2020 = Pekabex
Slide 53: New market
New market Poznan = Contract contains construction of 2 office buildings in the city center of Poznan. Pekabex provided with, a. 25.5 thousand m? of usable space area. = Pekabex 52
Slide 54: Office Building
Office Building Zielona Gora Construction contains: = An office building - total floor area 2 800 m2 = Total number of elements - 600 pieces = End date: August 2019 = Pekabex
Slide 55: Business Garden
Business Garden = Contract include construction of a complex of office buildings. As part of the project, Pekabex carried out assembly on five 6-story buildings and one 14-story building, providingc.a. 14 thousand prefabricated elements.
Slide 56: Business Garden
Business Garden Poznan = Contract contains construction of 5 office buildings and a car park in the Business Garden Poznan complex. = Pekabex
Slide 57: IKEA
IKEA Lublin = The contract includes two independent investment tasks: a storege halland a two-level parking. Total building area approx. 38 thousand m2. = Pekabex
Slide 58: Wroctaw
LG Wroctaw = The contract included 2 production buildings of a car battery factory with a total floor area of 57,3 thous. m?. = Pekabex
Slide 59: Metrix Metal
Metrix Metal The construction includes a production and warehouse facility with a social and office building, a security building with an internal toad system, a car park and the necessary technical infrastructure. The area of the hall being built is almost 7.3 thousand. m4, office building 1.2 thou
Slide 60: Trollhattan-Malmo
Trollhattan-Malmo Sweden = Itis a 6-floor office building located in the city center of Malmo. = Pekabex 59
Slide 61: Linaberg-19
Linaberg-19 Stockholm = Largest contract realized in Sweden started in June 2017. = Housing area consisting of 19 buildings involving 370 apartaments (41 200 m2). = Over 8 500 elements to be installed. = Pekabex
Slide 62: Cementen kvA
Cementen kvA Malm6 = Construction contains apartament complex - area 13 000 m2. = Over 2 394 elements to be installed ff 1 So = Pekabex , _ -_ 61
Slide 63: Kaj
Kaj 306 Malm6 = Construction contains apartament complex - area 10 400 m2. = Over 2 449 elements to be installed. = Pekabex
Slide 64: Nytt Barnsjukhus
Nytt Barnsjukhus = Construction contains building F ——= of hospital in Ostra. pe «
Slide 65: BrF Fyrhusen
BrF Fyrhusen Stockholm = Construction contains residential complex (66 apartaments) - area 5 200 m2. = 2266 prefabricated elements to be installed. = Pekabex
Slide 66: THANK YOU
THANK YOU = Pekabex 65