Budimex Sa · GPW:BDX
Budimex Sa — Q3 2023 Earnings Presentation
36 slides from Budimex Sa's earnings presentation, March 2024
Slide 1: Investor presentation 3Q'2023
Investor presentation 3Q’2023
Slide 2: Key events in Q3 and further development
Key events in Q3 Further development Backlog diversification Signing a contract with PKP PLK with a value of and maintaining profitability Backlog 909 M PLN EBIT Net cash E65 Tychy – Most Wisła 12 6,9 % 2,9 bn PLN bn PLN Budimex in the index MSCI Record-breaking potential Poland of contracts pending
Slide 3: Agenda
Agenda Macroeconomics 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) The IMF forecasts inflation to remain at double- 14,4 digit levels and GDP growth to weaken significantly to 0.6% y/y in 2023. 12 GDP dynamics Inflation (CPI) 5,4 5,7 5,1 6,4 4,8 4,7 3,1 5,1 3,4 2,3 2,0 1,6 2,3 0,6 -0,6 Domes
Slide 5: Macroeconomic background
Macroeconomic background PMI indicator for Poland In September, the PMI increased to 43.9 points 59,4 from 43.1 points recorded a month earlier. 53,7 53,8 54,5 52,8 52,7 50,8 51,7 48,5 48,3 48,2 47,2 48,5 44,4 45,6 45,1 43,9 42,4 40,6 40,9 42,0 31,9 I 2020 II III IV V VI VII VIII IX X XI XII I 2021
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 (%) 77,3 75,9 73,5 16,9 15
Slide 7: Prices of selected raw materials
Prices of selected raw materials 220 340 1Q’10 = 100 2Q’20 = 100 200 1Q’10 = 100 2Q’20 = 100 196 300 180 260 160 140 220 138 120 180 161 Concrete 100 140 80 144 Steel 100 60 3Q10 3Q11 3Q12 3Q13 3Q14 3Q15 3Q16 3Q17 3Q18 3Q19 3Q20 3Q21 3Q22 3Q'23 60 3Q10 3Q11 3Q12 3Q13 3Q14 3Q15 3Q16 3Q17 3Q18 3Q19 3Q
Slide 8: Agenda
Agenda Macroeconomics background Financial results of Budimex Group Backlog & contracting FBSerwis & Mostostal Kraków Market and outlook CSR & ESG
Slide 9: Budimex Group is not only Budimex SA
Budimex Group is not only Budimex SA Renewable Construction Foreign markets Services Others energy sources
Slide 10: Results from continuing operations (Q1-Q3)
Results from continuing operations (Q1-Q3) Revenues EBIT Net profit (mln PLN) (mln PLN) (mln PLN) +9,8% 6 994 6 368 6,5% 6,9% 5,6% 6,4% +15,6% 25,6% 482 450 417 359 YTD'22 YTD'23 YTD'22 YTD'23 YTD'22 YTD'23
Slide 11: Financial results by segment
Financial results by segment Construction The high level of backlog and its diversification, Revenues (mln PLN) EBIT (mln PLN) combined with favourable weather conditions, 6 346 5,4% 6,1% 6,7% allowed revenues to increase by more than 9.2%. 5 809 5 118 422 353 278 Sales growth was recorded in most o
Slide 12: 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 2,82,8 2,9 2,7 2,7 2,3 2,2 2,1 2,0 1,9 2,0 1,8 1,7 1,7 1,61,6 1,5 1,4 1,41,4 1,3 1,41,4 1,2 1,2 1,2 1,2 1,0 1,1 1,0 0,8 0,7 0,6 0,50,5 0,5 0,4 0,1 09'13 09'14 09'15 09'16 09'17 09'18 09'19 09'20 09'21 09'22 09
Slide 13: 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 14: Agenda
Agenda Macroeconomics background Financial results of Budimex Group Backlog & contracting FBSerwis & Mostostal Kraków Market and outlook CSR & ESG
Slide 15: Contracts signed (bn PLN)
Contracts signed (bn PLN) Contracts pending as of 9,0 09’23 ( bn PLN) 0,6 7,9 7,5 In October Budimex signed a contract with PKP PLK worth 909.5 7,0 0,2 M PLN net (E65 Tychy - Vistula Bridge) 1,7 0,8 0,0 0,1 0,8 2,9 1,6 0,1 2,4 1,8 4,6 4,5 4,5 0,5 0,2 0,1 0,1 0,0 0,5 0,7 0,5 1,5 1,2 Σ 13,4 bn PLN 0,9
Slide 16: Contracts pending with the greatest potential in years
Contracts pending with the greatest potential in years Contracts pending (bn PLN) Estimated maturity of a backlog including contracts pending (PLN billion)) 13,4 Contracts pending (estimated) Rail Baltica Estimated maturity of a backlog 5,0 Foregin countries Poland 6,1 3,2 0,5 4,4 4,6 3,5 0,5 3,4 0,
Slide 17: Summary of offers submitted on the Czech and Slovak markets
Summary of offers submitted on the Czech and Slovak markets Offers made on the Czech and Slovak markets (bn PLN) 3,1 3,5 ∑ = 11,5 bn PLN Czechia Slovakia 1,7 1,6 1,1 0,5 I - XII 2021 I - XII 2022 I - IX 2023 Offers made by division (bn PLN) Czechia Slovakia 1,0 Roads 3,2 bn PLN of the most Railway 1
Slide 18: Backlog (bn PLN)
Backlog (bn PLN) Backlog maturity (bn PLN) 13,0 13,3 12,7 2% 12,0 2% 0,3 2% 0,2 10,8 0,8 6% 0,3 1,8 2,9 3,5 26% 24% 0,7 1,8 7% 14% 22% 0,7 2,9 1,1 0,8 0,5 3% 3% 1,6 15% 8% 6% 2,8 0,4 0,8 2,4 1,6 21% 4% 32% 3,3 18% 4,0 25% 1,1 1,0 8% 3,6 33% 6% 9% 0,8 0,4 3% 0,5 7% 49% 6,7 39% 5,6 42% 5,9 4,7 37% 5,0
Slide 19: Road market
Road market Value of the lowest offers on the domestic road market (billion Budimex contracting - road segment* (PLN billion) PLN) In addition, 4,5 bilion PLN of contracts pending 20,3 18,2 4,6 4,1 13,6 13,7 3,4 3,1 10,7 2,9 9,2 9,7 2,4 2,5 1,9 1,2 3,8 1 '15 '16 '17 '18 '19 '20 '21 '22 10'23 '15 '16
Slide 20: Investment programmes - infrastructure
Investment programmes - infrastructure PBDK – programme update (data in bn PLN) 85,2 Main features of the updated PBDK: o The largest road programme in history 25,5 25,7 o Total value of investments amounts to 294.4 bilion 25,1 22,5 22,6 22,6 22,6 PLN 16,4 o Implementation of investments of over 6,1
Slide 21: Investment programmes - infrastructure
Investment programmes - infrastructure 100 bypasses programme (data in bn PLN) 5,7 5,6 4,9 The cost of implementing the Programme for the Construction of 100 bypasses has been estimated at 3,1 3,0 PLN 28 billion. Funding will be provided by the National 2,0 2,2 Road Fund. 1,3 0,1 0,3 2021 2022 2023
Slide 22: Rail market
Rail market Value of the lowest offers on the domestic rail market (PLN billion) Budimex contracting - railway (PLN billion ) Additionally, 8,8 bilion PLN of contracts pending 12,5 12,1 10,9 3,2 8,9 8,5 5,9 1,8 1,6 4,8 1,3 2,2 0,7 0,5 0,5 0,5 0,2 0,1 '15 '16 '17 '18 '19 '20 '21 '22 10'23 '15 '16 '17
Slide 23: National investment programmes - rail
National investment programmes - rail National Railway Programme - planned outlays of PLK SA Update of the National Railway Programme (NCP) forecasts expenditure of PLN 80 billion. 20,5 16,9 17,8 14,4 12,8 9,5 10,0 11,2 10,3 10,5 8,1 8,1 7,1 3,6 4,8 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Slide 24: Agenda
Agenda Macroeconomics background Financial results of Budimex Group Backlog & contracting FBSerwis & Mostostal Kraków Market and outlook CSR & ESG
Slide 25: FBSerwis - financial results
FBSerwis – financial results 3,5% 8,0% 9,9% 13,2% 17,4% 19,4% 16,8% 17,0% 17,7% 15,2% 832 780 139 131 666 118 610 Revenues (mln PLN) 573 101 108 EBITDA (mln PLN) 498 % EBITDA 86 371 261 49 179 126 26 14 4 '15 '16 '17 '18 '19 '20 '21 '22 09'22 09'23 '15 '16 '17 '18 '19 '20 '21 '22 09'22 09'23 -1,3% -
Slide 26: Mostostal Kraków - financial results
Mostostal Kraków - wyniki finansowe Cash Debt NTP 488 426 66 69 362 Revenues (mln PLN) 48 323 Net cash (mln PLN) 46 274 42 66 70 52 49 43 -5 -2 0 -1 2020 2021 2022 09'22 09'23 2020 2021 2022 09'22 09'23 266 253 19 Contracting (mln PLN) 14 14 156 147 134 EBIT (mln PLN) 0 -2 2020 2021 2022 09'22 09'23
Slide 27: New offerings in the portfolio
New offerings in the portfolio Multi-storey steel car parks The modular steel car parks are the result of a continuous search for market solutions in cooperation with our western partners. The modular configuration means that the system can be duplicated and extended to suit all types of land and pl
Slide 28: Agenda
Agenda Macroeconomics background Financial results of Budimex Group Backlog & contracting FBSerwis & Mostostal Kraków Market and outlook CSR & ESG
Slide 29: 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 30: Cohesion Fund & CEF Programme (bn EUR)
Cohesion Fund & CEF Programme ( bn EUR) European Funds for Infrastructure, Climate, Environment 2021-2027 (FENiKS) programme (bn EUR) 26,2 24,1 Infrastucture 7,5 10,1 Poland remains the largest 4,8 beneficiary of the Cohesion Fund. Railway 4,8 Others (mainly energy/environment) 14,0 9,2 '14-'20 '21-
Slide 31: National Enclosure Fund (bn EUR)
National Enclosure Fund (bn EUR) NEF components and their value (EUR billion) 14,3 mld Green energy and reduction of energy intensity EUR 7,5 mld Green, smart mobility EUR 35,9 bn EUR: 4,9 mld • 23,9 bn EUR non- Digital transformation EUR repayable grants • 12 mld EUR loans 4,7 mld Economic resilien
Slide 32: Investment in Renewable Energy Sources (RES)
Investment in 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 > 2 GWh o company established by Budimex SA (51%) o sale of energy in a PPA contract to an external and Ferrovial Energy Infrastructure (4
Slide 33: Agenda
Agenda Macroeconomics background Financial results of Budimex Group Backlog & contracting FBSerwis & Mostostal Kraków Market and outlook CSR & ESG
Slide 34: We are a good neighbor
We are a good neighbor 3 EDYCJA Students of the Technical School of Power Engineering in Bełchatów used the skills acquired Hero: 70-year-old Mrs. Tereska at school and renovated an apartment for a What happened: An electrical short circuit in Mrs. Teresa's family in need from Ukraine. house caused
Slide 35: We are a good neighbor
We are a good neighbor Innowacyjny Budimex We build the awareness of our employees: 1. ESG training – 5 modules: • ESG regulations in the context of the construction sector • Discussion of Budimex's ESG strategy • Taxonomy • Preparing for non-financial reporting for 2023 • Q&A session 1. Tests of th
Slide 36: Key figures summary
+9,8% +13 Bn PLN 10,3% 15 years Revenue dynamics Contracts pending Gross margin Divident payment 800MW 2,9 12 mld PLN Net cash 6,9% mld PLN RES projects under analysis EBIT margin Backlog