Budimex Sa · GPW:BDX
Budimex Sa — Budimex S A Shs — FY 2022 Earnings Presentation
39 slides from Budimex Sa's earnings presentation, Mar 1, 2023
Slide 1: Investor presentation FY 2022
Investor presentation FY 2022 1
Slide 2: Agenda
Agenda 1 Macroeconomic background 2 Financial results of Budimex Group 3 FBSerwis & Mostostal Kraków 4 Market and outlook 5 CSR 2
Slide 3: Macroeconomic background
Macroeconomic background GDP dynamics and CPI inflation in Poland (%, y/y) GDP Dynamic Inflation (CPI) 13,8 14,3 The IMF forecasts sustained inflation at double-digit levels and a significant weakening of GDP growth to 0,5% y/y in 2023. 5,4 5,7 4,8 4,7 3,1 3,8 5,1 3,4 2,0 1,6 2,3 0,5 -0,6 -2,5 '16 '
Slide 4: Macroeconomic background: PMI and construction output
Macroeconomic background PMI indicator for Poland 59,4 54,5 The PMI of the Polish industrial sector recorded its highest 52,8 53,7 53,8 52,7 50,8 51,7 level since May, rising to 45,6 points in December (vs. 43,4 48,2 47,2 48,5 points in November). 45,6 44,4 42,4 40,6 40,9 42,0 31,9 I 2020 II III IV
Slide 5: Macroeconomic background: wages and residential sales
Macroeconomic background 10,3% Average monthly salaries in Poland* 7330 6644 Wages increased by 10,3% y/y in December, a lower 5663 reading than inflation. Construction is characterized by 4918 5167 wage growth slightly above average (10,4% y/y) 4585 *Data refers to companies with more than 10 emplo
Slide 6: Construction situation FY 2022 - stabilisation and prospects for improvement
Construction situation FY 2022 - 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 (%) 16,9 15,5 77,3 75,9 74,9 73,5
Slide 7: Prices of selected raw materials
Prices of selected raw materials 200 196 340 1Q’10 = 100 1Q’16 = 100 1Q’10 = 100 1Q’16 = 100 180 300 181 249 160 260 140 220 218 120 180 100 140 Concrete 80 100 Steel 60 60 4Q'10 4Q'11 4Q'12 4Q'13 4Q'14 4Q'15 4Q'16 4Q'17 4Q'18 4Q'19 4Q'20 4Q'21 4Q'22 4Q'10 4Q'11 4Q'12 4Q'13 4Q'14 4Q'15 4Q'16 4Q'17 4
Slide 8: EBIT margins of construction companies by size
EBIT margins of construction companies by size Margins are levelling out in the market between GC and subcontractors 11,9% 11,2% 10,6% 9,2% 8,7% 8,8% 8,6% 8,2% 9,9% 7,9% 7,2% 7,5% 7,3% 7,1% 6,0% 7,4% 7,1% 4,9% 5,2% 5,1% 6,7% 4,1% 5,3% 5,3% 4,9% 4,1% 4,1% 2,6% 2,4% 2,4% 1,5% 1,2% -0,5% '13 '14 '15 '1
Slide 9: Agenda
Agenda 1 Macroeconomic background 2 Financial results of Budimex Group 3 FBSerwis & Mostostal Kraków 4 Market and outlook 5 CSR 9
Slide 10: Results from continuing operations
Results from continuing operations Revenues EBIT* Net profit* (m PLN) (m PLN) (m PLN) 6,6% LFL 6,5% 5,1% LFL 6,2% 8 619 7,4% 5,7% 7 911 +8,9% 587 562 65 534 +7,6% 451 +32,1% Related to Bx 47 Nieruchomości Related to Bx EBIT 562 Nieruchomości 522 534 Net profit 404 '21 '22 '21 '22 '21 '22 10 *The 202
Slide 11: Financial results by division
Financial results by division Construction For the full year 2022, revenues in the construction Revenues (m PLN) EBIT (m PLN) segment increased by PLN 539 million y/y (+7,4% y/y). 7 539 7 821 7 282 5,1% 6,1% 6,0% The profitability of the construction segment was 446 471 388 6,0%, similar to the resu
Slide 12: Contracts signed (bn PLN)
Contracts signed (bn PLN) 9,0 0,6 7,9 7,5 1,7 7,0 0,2 0,8 0,0 0,8 2,9 1,6 2,4 1,8 Contracts pending 0,5 0,2 0,5 0,7 (bn PLN) 0,0 0,5 0,9 3,2 0,7 1,6 2,6 4,1 Σ5,8 2,9 3,1 0,3 0,2 0,3 1,2 1,0 12'19 12'20 12'21 12'22 Roads Railways Hydrotechnical General construction Residential Industrial 12
Slide 13: Backlog (bn PLN)
Backlog (bn PLN) 14,0 12,7 13,0 13,3 2% 2% 6% 0,3 0,2 10 000,0 12,0 10,8 0,8 26% 1,8 14% 2,9 22% 3,5 7% 10,0 0,7 3% 8 000,0 1,6 15% 1,1 8% 0,8 6% 0,5 18% 8,0 0,8 4% 2,4 3,3 25% 6 000,0 32% 4,0 9% 6,0 3,6 33% 1,1 0,8 6% 0,4 3% 4 000,0 4,0 0,5 7% 5,0 5,6 4,7 2 000,0 2,0 3,6 33% 37% 39% 42% 0,0 0,0 12'
Slide 14: Evolution of the net cash position
Evolution of the net cash position Net cash position in Budimex Group (bn PLN) 3,1 3,0 2,8 2,8 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 1,0 1,1 1,0 0,8 0,7 0,6 0,5 0,5 0,5 0,4 0,1 12'13 12'14 12'15 12'16 12'17 12'18 12'19 12'20 12'21 12'22 14
Slide 15: Infrastructure division (hydro + roads)
Infrastructure division (hydro + roads) Revenues (m PLN) Backlog (m PLN) 7 335 5 847 6 079 5 461 5 135 3 163 3 091 3 347 3 034 4 205 2 967 2 674 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 Contracts signed (m PLN) Key contracts in the pipeline 4 494 DCT Gdańsk Terminal T3 824 4 175 3
Slide 16: Railway division
Railway division Revenues (m PLN) Backlog (m PLN) 3 948 3 410 1 979 1 888 3 051 1 577 1 190 1 803 1 079 1 239 634 237 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 Contracts signed (m PLN) Key contracts in the pipeline 3 188 Przebudowa stacji Warszawa Zachodnia 894 1 763 Przebudowa sta
Slide 17: General construction division
General construction division Revenues (m PLN) Backlog (m PLN) 2 406 3 153 2 146 2 206 2 721 1 939 2 459 2 289 1 663 2 152 1 482 1 956 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 Contracts signed (m PLN) Key contracts in the pipeline 2 241 2 237 2 353 2 065 Wojskowy szpital kliniczny
Slide 18: Budimex Group's dividend history
Budimex Group's dividend history Budimex has regularly shared profit with shareholders for 13 Dividend policy - payment of 100% dividend, subject to: years • significant capital expenditure; 161,7 = 4 128 MLN • the amount of profit generated; = • the non-recovery of previous years' losses; PLN/sha
Slide 19: Agenda
Agenda 1 Macroeconimic background 2 Financial results of Budimex Group 3 FBSerwis & Mostostal Kraków 4 Market and outlook 5 CSR 19
Slide 20: FBSerwis – financial results
FBSerwis – financial results 780 818 3,5% 8,0% 9,9% 13,2% 17,4% 19,4% 16,8% 17,9% 610 Revenues (m PLN) 146 498 % EBITDA 131 EBITDA (m PLN) 118 371 86 261 179 49 126 26 4 14 '15 '16 '17 '18 '19 '20 '21 '22 '15 '16 '17 '18 '19 '20 '21 '22 Środki trwałe -1,3% -0,4% -0,1% 3,9% 8,9% 12,2% 10,8% 11,4% War
Slide 21: Investment in new processing assets for alternative fuels and waste recovery
Investment in new processing assets will include fuel production for alternative energy sources and waste recovery. An important niche will be the neutralization of hazardous waste Types of waste treatment assets that will generate the most value Neutralisation of Material recovery Energy recovery h
Slide 22: Mostostal Kraków – financial results
Mostostal Kraków – financial results Cash Dług Net cash 66 488 48 46 Revenues (M PLN) Net cash (m PLN) 32 323 275 66 216 52 49 39 -7 -5 -2 2019 2020 2021 2022 2019 2020 2021 2022 535 Contracts signed (m PLN) 401 407 Gross margin (m PLN) 332 34 24 17 12 2019 2020 2021 2022 2019 2020 2021 2022 22
Slide 23: Mostostal Kraków
Mostostal Kraków Steel prices index (PUDS) 12 000,00 zł With the outbreak of war in 2022, steel supplies 11 500,00 zł from Ukraine, Belarus have been curtailed and 11 000,00 zł from Russia completely closed due to sanctions, 10 500,00 zł a total of around 25% of Polish steel imports in 10 000,00 zł
Slide 24: Agenda
Agenda 1 Macroeconomic background 2 Financial results of Budimex group 3 FBSerwis & Mostostal Kraków 4 Market and outlook 5 CSR 24
Slide 25: Analysis of the road market in 2022
Analysis of the road market in 2022 Bids submitted in significant GDDKiA tenders (bn PLN) ∑ '15-'22 = 91,7 bn PLN In 2022, the General Directorate for National Roads and Motorways (GDDKiA) has issued tenders for 20 sections with 20,3 a length of over 226,8 km worth PLN 10,3 bn PLN. 18,2 13,6 13,7 10
Slide 26: Foreign expansion of the infrastructure division
Foreign expansion of the infrastructure division Value of bids submitted (bn PLN) and number of tenders Value of bids submitted Number of tenders Actions taken between 2020 and 2022: 40 ➢ Building organizational structures ➢ Building relationships with subcontractors 3,7 1,8 ➢ Development of compete
Slide 27: Investment programmes - infrastructure
Investment programmes - infrastructure PBDK - programme update (data in bn PLN) ∑ = 85,2 Main features of the updated PBDK: ➢ The largest road programme ever 25,1 25,5 25,7 ➢ Total value of investments amounts to 294,4 bn PLN 22,5 22,6 22,6 22,6 ➢ Implementation of investments of over 6 100 km ➢ Imp
Slide 28: Investment programmes - infrastructure
Investment programmes - infrastructure 100 Bypasses Programme (bn PLN) 5,7 5,6 The cost of implementing the Programme for the 4,9 Construction of 100 bypasses has been estimated at 28 bn PLN. Funding will be provided by the National Roads Fund. 3,1 3,0 2,0 2,2 1,3 0,1 0,3 The scope of the programme
Slide 29: Analysis of the rail market in 2022
Analysis of the rail market in 2022 Bids submitted in significant PKP PLK tenders (bn PLN) In 2022, PKP PLK has announced tenders worth more than 14,2 bn PLN, most of which have not been awarded due to a lack of secured funding. Railway investments are heavily ∑ '15-'22 = 60,0 bn PLN dependent on EU
Slide 30: Foreign expansion of the railway division
Foreign expansion of the railway division Value of bids submitted (bn PLN) and number of tenders Value of bids submitted (bn PLN) Number of tenders Actions taken between 2020 and 2022: ➢ Fulfilment of formal requirements for bidding in foreign markets 1,4 ➢ Structure building in the German market -
Slide 31: National investment programmes - rail
National investment programmes - rail National Railway Programme The core investment programme in the rail market, the New NRP in the process of being agreed (likely range of PLN 10 - 15 bn per year) National Rail Programme (NRP), is updated and extended annually (most recently in December 2022). Wo
Slide 32: Development of electromobility
Development of electromobility Szczecin Number of chargers: 35 Bydgoszcz Number of chargers : 31 Gorzów Wlk. Number of chargers : 14 Poznań Number of chargers : 29 Budimex Mobility has acquired 109 charging stations for electrics from Enea Operator Development of >200 stations in major urban centres
Slide 33: First wind farm in Budimex Group
First wind farm in Budimex Group Location in Drachów, Wielkopolskie Voivodship Drachowo Provides average wind strength of >7m/s. Planned commissioning 1H2023 r. Productivity 20-25 GWh/pa Funding secured in the amount of 45,3 M PLN PPA agreement Installed capacity up to 7 MW 33 Data: Budimex
Slide 34: First photovoltaic farm in Budimex Group
First photovoltaic farm in Budimex Group Location in Mszczonów, Mazowieckie Voivodship Mszczonów Productivity >1000MWh/MWp Planned launch inQ1 2024 Capacity under 15 GWh/PA Planning project finance Planned acquisition of a PPA Projected installed capacity 14 MW 34 Dane: Analiza Budimex, Zdjęcie pogl
Slide 35: Summary of investment programmes
Summary of investment programmes Government Programme for the National Railway Programme to 2030 PSE until 2032 Construction of National Roads to 2033 >100 bn PLN 32 bn PLN 294 bn PLN Programme of 100 Bypasses by 2030 CPK Nuclear power plants ≈ ≈ 200 bn PLN 28 bn PLN 140 bn PLN Programme for Strengt
Slide 36: EU funds
EU funds Program European Funds for Infrastructure, Climate, Connecting Europe Facility (CEF) Environment 2021-2027 (FEnIKS)) (bn EUR) – funds for all countries (bn EUR) 26,2 24,1 28,8 32,3 ≈ 10% of the total amount Infrastructure 7,6 allocated to 7,5 Other 5,8 Poland 10,1 Rail 4,8 Infrastructure +
Slide 37: Agenda
Agenda 1 Macroeconomic background 2 Financial results of Budimex group 3 FBSerwis & Mostostal Kraków 4 Market and outlook 5 CSR 37
Slide 38: Dom z Serca
Dom z Serca • this is the second edition of the "Home from the Heart" programme • the construction of a house for a family of eight was • 2 open Parent Zones completed to turnkey condition. • (Pisz and Bydgoszcz)more than 1,000 people • The project was supported by 14 partners benefited from the two
Slide 39: Budimex – goals for 2023
Budimex – goals for 2023 Stable construction segment supported by European funds. Margins under control Expansion of business activities abroad (Germany, Czech Republic, Slovakia) FBSerwis - Expansion of competences by new business lines Development in the renewable energy segment 39