Budimex Sa · GPW:BDX

Budimex Sa — H1 2010 Earnings Presentation

39 slides from Budimex Sa's earnings presentation, 2010

  1. Slide 1: Presentation for investors: Financial results 6M 2010

    ethics teamwork responsibility ambition Presentation for investors Financial results 6M 2010

  2. Slide 2: Agenda

    Agenda I. Budimex historical outline 3 II. Market features 10 III. Budimex achievements and important events 6M 2010 15 IV. Financial results 6M 2010 17 1. Budimex Group 18 2. Construction segment 22 3. Real Estate segment 28 4. Other activities 34 5. Internal eliminations 37 © Controlling Office 2

  3. Slide 3: Budimex historical outline

    Budimex historical outline budimex

  4. Slide 4: Budimex over a decade

    Budimex over a decade 9 1968 - Budimex established 9 1995 - listed on Warsaw Stock Exchange (9,50 PLN/share) 9 2000 - acquired by Ferrovial (59,06% of shares) 9 2000 => 2009 - consolidation process No of companies Employees Backlog (M PLN) 7 589 64 8 974 -51% +264% 4 386 2 084 4 12'00 06'10 12'00 06

  5. Slide 5: Shareholders and Group structure today

    Shareholders and Group structure today 9 Shareholders 5,66% Ferrovial Group PZU OFE "Złota Jesień" Other 35,28% 59,06% 9 Budimex Group structure Construction Real Estate Other activities turnover 2009 as % of Group 88% 8% 4% Budimex SA (inc.) Budimex Nieruchomości Ltd. Budimex DanWood Ltd. Mostostal

  6. Slide 6: Group sales evolution (M PLN)

    Group sales evolution (M PLN) 0,2% 25,7% 12,6% -1,2% 9,0% 0,5% dynamics YoY 3 274 3 290 3 043 3 005 2 703 2 151 '04 '05 '06 '07 '08 '09 © Controlling Office 6

  7. Slide 7: Result before tax evolution (M PLN)

    Result before tax evolution (M PLN) 0,1% 0,2% 0,3% 0,3% 3,8% 6,8% as % of sales 223 123 3 6 10 10 '04 '05 '06 '07 '08 '09 © Controlling Office 7

  8. Slide 8: Budimex versus competitors (M PLN)

    Budimex versus competitors (M PLN) % share in Main players on Revenues Polish construction market 2009 construction Polimex Mostostal 4 837 6,0% Budimex 3 290 4,1% Strabag 3 143 3,9% Skanska Polska 3 006 3,8% Mostostal Warszawa 2 712 3,4% PBG Group 2 578 3,2% Polish construction * 79 972 Capitalizat

  9. Slide 9: Budimex on Warsaw Stock Exchange

    Budimex on Warsaw Stock Exchange Budimex* WIG construction* Budimex share value performance vs market 01'10 - 06'2010 WIG* (cumulative % changes, 31.12'09=100%) 150% 140% 130% 120% 110% 100% 90% 09-12-31 10-01-15 10-01-29 10-02-12 10-02-26 10-03-12 10-03-26 10-04-13 10-04-27 10-05-12 10-05-26 10-06-

  10. Slide 10: Market features

    Market features budimex

  11. Slide 11: Construction production in Poland (M PLN)

    Construction production in Poland* (M PLN) dynamics YoY infrastructure non residential 10,3% 21,2% 31,2% 15,7% 3,6% residential 79 972 -6,6% 77 188 31 517 29 439 66 715 50 843 39 597 46 623 16 137 15 514 41 958 34 825 27 811 22 489 24 160 9 896 21 149 21 832 9 332 16 219 13 636 10 741 13 431 11 516

  12. Slide 12: GDDKiA (main road investor) expenses

    GDDKiA (main road investor) expenses GDDKiA budget 2002-2012 (M PLN) expenses postponement is speculated due to 31 300 delays in 2009-2010 23 221 18 458 15 821 13 225 13 618 11 865 9 244 20 500 7 027 6 026 3 705 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 bn. PLN Original 6M expenses Revised Final e

  13. Slide 13: Material prices evolution

    Material prices evolution* General price index (12’07 = 100) Styrofoam price index (12’09 = 100) – 4 types average 105 highways and 140 104,0 134 104 expressways 119 103 103,3 residential 120 construction 110 102 102,1 non 100 residential 101 100 80 06 '08 12 '08 06 '09 12 '09 06 '10 01 '10 02 '10 0

  14. Slide 14: Real Estate market trends

    Real Estate market trends 9 Most developers start new investments Started flats by developers (number of flats, thousands) 79 67 67% 44 31 19 '07 '08 '09 6M '09 6M '10 9 Decrease of flats completed as an effect of ceasing new investments in 2009 Completed flats by developers (number of flats, thousa

  15. Slide 15: Budimex achievements and important events 6M 2010

    Budimex achievements and important events 6M 2010

  16. Slide 16: Important events 1H 2010

    Important events 1H 2010 9 Dividend payment 174 M PLN (21 June) 9 6M 2010 sales and result above market consensus 9 Value of contracts signed 3,6 bn. PLN => historical backlog 7,6 bn. PLN 9 Repayment of banks loans for developer projects 9 Strong cash position at the end of June 9 Member of Global C

  17. Slide 17: Financial results 6M 2010

    Financial results 6M 2010 budimex

  18. Slide 18: Group information

    1. Group information © Controlling Office 18

  19. Slide 19: Financial highlights 6M 2010 (M PLN)

    Financial highlights 6M 2010 (M PLN) Budimex Group 6M YTD 6M YTD REAL '10 1Q 2Q REAL '09 1Q 2Q variance variance Sales 1 723,4 577,2 1 146,2 1 516,8 681,4 835,4 206,6 13,6% dynamics 13,6% -15,3% 37,2% Gross margin 209,6 85,5 124,1 292,5 148,1 144,4 -82,9 -28,4% as % of sales 12,2% 14,8% 10,8% 19,3%

  20. Slide 20: Results by segments 6M 2010 (M PLN)

    Results by segments 6M 2010 (M PLN) Budimex Internal Construction Real Estate Non core Group '10 eliminations Sales 1 723,4 1 358,3 328,2 50,5 -13,6 Gross margin 209,6 121,9 69,0 1,2 17,6 as % of sales 12,2% 9,0% 21,0% 2,3% -129,6% Overheads -66,7 -56,1 -13,0 -4,8 7,2 as % of sales -3,9% -4,1% -4,0%

  21. Slide 21: Net treasury position: cash less debts (M PLN)

    Net treasury position: cash less debts (M PLN) 1 076 net treasury position 764 784 692 cash 366 530 504 debt 434 -26 -292 -257 -398 06'09 12 '09 03'10 06 '10 NTP change by segments i.a. dividend payment: -171* tax payment: -90 -429 3 149 784 504 12 '09 constrruction developer other 06 '10 * dividend

  22. Slide 22: Construction segment

    2. Construction segment © Controlling Office 22

  23. Slide 23: Financial highlights 6M 2010 (M PLN) - Construction

    Financial highlights 6M 2010 (M PLN) Construction 6M YTD 6M YTD REAL '10 1Q 2Q REAL '09 1Q 2Q variance variance Sales 1 358,3 365,0 993,4 1 366,6 580,6 786,0 -8,3 -0,6% dynamics -0,6% -37,1% 26,4% Gross margin 121,9 27,6 94,2 247,6 112,9 134,7 -125,7 -50,8% as % of sales 9,0% 7,6% 9,5% 18,1% 19,4% 1

  24. Slide 24: Sales structure (M PLN)

    Sales structure (M PLN) Residential Non-Residential Infrastructure 6M '09 6M '10 10% 6% 26% 36% 64% 58% 1 367 M PLN 1 358 M PLN © Controlling Office 24

  25. Slide 25: Contracts signed (M PLN)

    Contracts signed (M PLN) largest contracts singed in the period: Residential - A4 Dębica - Rzeszów: 1 418 Non-Residential - modernization railway station Wrocław: 265 - A1 junction Stryków: 252 3 638 Infrastructure - extension of junction Karczemki: 153 237 - A1 Pyrzowice - Piekary Śląskie: 150 - ri

  26. Slide 26: Backlog (M PLN)

    Backlog (M PLN) Residential Non-Residential 7 589 Infrastructure 376 1 904 138% 3 098 3 181 221 712 5 310 1 150 760 1 627 1 810 06'08 06'09 06'10 © Controlling Office 26

  27. Slide 27: Backlog highlights (M PLN)

    Backlog highlights (M PLN) 9 Expected time of backlog realization 5 248 General Construction 28% Infrastructure 2 341 c 34% 72% 66% '10 '11+ 9 Average period of contract realization: 27 months 9 Contracts realized with the value of backlog > 1 M PLN: 06'08 06'09 06'10 Number of contracts 69 66 106 A

  28. Slide 28: Real Estate segment

    3. Real Estate segment © Controlling Office 28

  29. Slide 29: Financial highlights 6M 2010 (M PLN) - Real Estate

    Financial highlights 6M 2010 (M PLN) Real Estate 6M YTD 6M YTD REAL '10 1Q 2Q REAL '09 1Q 2Q variance variance Sales 328,2 199,0 129,2 161,0 108,3 52,7 167,2 103,8% dynamics 103,8% 83,8% 145,0% Gross margin 69,0 47,7 21,3 44,2 29,7 14,6 24,7 55,9% as % of sales 21,0% 23,9% 16,5% 27,5% 27,4% 27,6% Ov

  30. Slide 30: Notary sales

    Notary sales Notary sales by cities (number of flats) 400 372 327 350 300 263 239 250 160 200 165 371 150 91 262 94 72 226 72 69 100 53 30 50 37 83 61 64 Warsaw 0 1Q '08 2Q '08 3Q '08 4Q '08 1Q '09 2Q '09 3Q '09 4Q '09 1Q '10 2Q '10 Cracow Poznan 492 330 635 Notary sales by cities (value M PLN) 6M 2

  31. Slide 31: Presales

    Presales* Presales by cities (number of flats) 350 311 300 253 250 181 200 308 245 150 111 68 81 181 100 83 31 72 106 50 68 20 60 69 78 16 - Warsaw 1Q '08 2Q '08 3Q '08 4Q '08 1Q '09 2Q '09 3Q '09 4Q '09 1Q '10 2Q '10 Cracow 364 99 492** Poznan Presales by cities (value M PLN) 6M 2009 6M 2010 47 M P

  32. Slide 32: Developer backlog (number of flats)

    Developer backlog (number of flats) 9 At the end of June 2010 Budimex has 697 flats on stock, including 299 already presold 1 332 Presold: 635 629 697 Presold: 299 Not presold: 703 Not presold: 398 Stock at 12'09 Notary sales Stock at 06'10 Człuchowska (Olbrachta II) 185 Mołdawska (Berb. Ogrody) 144

  33. Slide 33: New projects and land bank

    New projects and land bank 9 New projects already started in 2010 notary sales projects area planned flats starts Cracow Łagiewniki 72 1Q'12 Myśliwska I 162 1Q'12 9 To be started in 2010 projects area planned flats works starts Poznan Old Town 178 3Q'10 Warsaw Bogusławskiego 320 4Q'10 Warsaw Inflanc

  34. Slide 34: Other activities

    4. Other activities © Controlling Office 34

  35. Slide 35: Financial highlights 6M 2010 (M PLN) - Other activities

    Financial highlights 6M 2010 (M PLN) Other activities compose of the following: Budimex consolidation share method DanWood Ltd. 100,00% full Elektromontaż Poznań Ltd. 30,78% equity method Promos Ltd. 25,53% equity method 6M YTD 6M YTD REAL '10 1Q 2Q REAL '09 1Q 2Q variance variance Sales 50,5 21,2 2

  36. Slide 36: Budimex DanWood activity

    Budimex DanWood activity 9 Main activity: timber frame houses production 9 Main market: Germany (85% of value sales), foreign currency exposure hedged 9 New contracts signed during 6M 2010: 343 houses, backlog increased to 586 houses Backlog, sales and contracts signed details (number of houses) 586

  37. Slide 37: Internal eliminations

    5. Internal eliminations © Controlling Office 37

  38. Slide 38: Financial highlights 6M 2010 (M PLN) - Internal eliminations

    Financial highlights 6M 2010 (M PLN) Internal eliminations* 6M YTD 6M YTD REAL '10 1Q 2Q REAL '09 1Q 2Q variance variance Sales -13,6 -8,0 -5,6 -66,7 -35,5 -31,1 53,1 -79,6% dynamics -79,6% -77,6% -81,9% -0,8 Gross margin 17,6 10,6 7,0 -4,3 3,1 -7,4 21,9 -506,4% as % of sales -129,6% -133,5% -124,0%

  39. Slide 39: For further information, please contact

    For further information, please contact: relacje.inwestorskie@budimex.pl www.budimex.com.pl

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