Slide 1: Record Results 1Q-3Q 2020 Investor Presentation
RECORD RESULTS 1Q-3Q 2020 OPTIMISTIC PERSPECTIVES for 2020 + inwestorska prezentacja Investor presentation December 2020
Slide 2: Agenda
AGENDA 1. FINANCIAL RESULTS 1-3Q 2020 2. DEKPOL GENERALNE WYKONAWSTWO 3. DEKPOL DEWELOPER 4. DEKPOL STEEL 5. SUMMARY AND PERSPECTIVES DEWELOPER GENERALNE STEEL WYKONAWSTO
Slide 3: Financial Results of the Dekpol Group
FINANCIAL RESULTS OF THE DEKPOL GROUP
Slide 4: The Dekpol Group
The Dekpol Group Results (in million of PLN) Revenues (%) Other STEEL GW Deweloper Other STEEL GW Deweloper +22% 837 4% 8% 772 746 5% 161 18% 12% 155 34% 612 579 257 113 1-3Q’19 1-3Q’20 200 552 487 259 400 65% 405 54% 36 293 203 73 91 72 52 57 27 2016 2017 2018 2019 1-3Q'19 1-3Q'20 DEWELOPER GENERAL
Slide 5: Excellent financial situation despite demanding market conditions
Excellent financial EBITDA (million of PLN) and EBITDA situation despite margin (%) 13,4% 9,2% 10,5% 7,3% 9,9% demanding market 7,2% 7,2% 81,2 74,0 conditions Increase of revenues in 1-3Q`20: 53,0 60,2 44,7 34,7 ✓ PLN 746 million (+22% y/y) 22,3 ✓ 3Q, PLN 218 million (+16% y/y) ✓ solid result in 1-3
Slide 6: Positive cash flow and favourable debt ratios
Positive cash flow and favourable debt ratios Net debt (million of PLN) / TTM Operating cash flows (million of PLN) EBITDA 73,5 Net debt (million of PLN)+D147 242,2 Net debt/EBITDA 58,8 224,6 56 217,1 218,5 204,0 181,8 38,1 173,4 33,5 29 24 130,3 4,1 119,2 3,7 3,7 13 3,4 3,4 4,5 2,2 2,1 -6,2 -8,2 1,
Slide 7: 2020+ perspective
2020+ perspective Bonds – term structure (million of PLN) (as at December 2020) GOAL: financing structure – tailored PLN 31,5 million at the end of 3Q’20 to the specificity of segments 4Q’20 2020 redemption of PLN New bonds 29,2 million 4Q’20 4Q 2020: ✓ Issue of PLN 50,0 million of I- series bonds ✓
Slide 8: Generalne Wykonawstwo
GENERALNE
Slide 9: Specialization in construction of logistics, industrial and cubature objects
✓ specialization in construction of logistics, industrial and cubature objects ✓ implementation of projects mainly for private investors ✓ reliability, quality and speed of performance as the trademark of Dekpol, providing a base of returning customers ✓ Short- and medium-term contracts (implementat
Slide 10: General Contracting: satisfactory results despite pandemic
General Contracting: satisfactory results despite pandemic Revenues* EBIT (million of PLN) and EBIT margin (%) (million of PLN) EBIT margin 400 405 7,5% 7,2% 6,9% 7,0% 6,7% 6,4% 6,2% 5,8% 28,2 5,0% 24,9 177 166 122 117 122 11,8 10,6 101 9,2 87 8,5 6,1 7,0 5,0 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 1-3Q1
Slide 11: 2020+ perspective strong ordering portfolio
2020+ perspective strong ordering Value of ordering portfolio (million of PLN) portfolio 762 637 650 621 Structure of GC projects 600 574 543 (as at 30.09.2020) 500 424 432 Other 380 372 350 350 17% 309 287 281 280 270 Industrial- 230 208 logistics projects 100 83% 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q
Slide 12: Dekpol Deweloper
dekopol DEWELOPER
Slide 13: 13 years of experience, stable business in residential segment
✓ 13 years of experience on the market ✓ Stable business in residential segment (about 60%) ✓ 3 thousands+ of constructed apartments ✓ substantial bank of land at the level of approx. 200 thousands of m2, of which over 75,000 m2 in premium projects ✓ multidimensional and specialized competences in t
Slide 14: Dekpol Deweloper: another strong quarter
Dekpol Deweloper: another strong quarter Revenues EBIT(million of PLN) and EBIT margin (%) (million of PLN) EBIT EBIT margin 131,0 17,3% 14,7% 14,8% 15,5% 12,3% 7,2% 6,5% 40,1 5,7% 3,4% 70,2 53,6 57,0 22,7 42,5 33,4 25,6 10,4 6,3 7,0 6,4 1,9 3,5 1,1 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 1Q19 2Q19 3Q19
Slide 15: Operating indicators
Operating indicators % of sales of apartments from the offer – Recognition in results for 2016 – 1- as at 30.09.2020 3Q2020 quantitatively and in 194 apartments in sales offer terms of value (million of PLN) Villa Neptun 5% Value (million of PLN) Quantity Sol Marina 35% 573 591 571 Osiedle Zielone I
Slide 16: Selected projects in preparation
Selected projects in preparation 2020+ perspective interesting pipeline of investments unique bank of land 2020-2025+ ~5,5 thousands Number of apartments in investments in preparation* Warsaw Business Hotel, Grano Resort, ~230thousands Warszawa Wyspa Sobieszewska Number of m2 of usable floor area in
Slide 17: ort
oO . ort mir @Q |» oO
Slide 18: Perfect Shape: when steel meets art
PERFECT SHAPE when steel meets art a) = © SS dekpol. STEEL CATERPILLAR’ (G LiuGonc 0 \(@ DRESSTA
Slide 19: Perfect Shape
Perfect Shape https://www.youtube.com/watch?v=MVvkMVNYxzM 19
Slide 20: Growth path
Growth path systematic development of the segment as a result of foreign expansion Number of produced accessories Revenues (million of PLN) Plan pre-COVID 90,7 23 500 Short-term effect 22 000 73,2 of COVID 72,1 17 545 56,7 16 500 51,6 11 500 11 300 7 500 27,4 5 000 15,1 3 000 2015 2016 2017 2018 201
Slide 21: History
History 2020 DEKPOL Steel Sp. z o.o. 2020 Certified supplier of OEM Sandvik Mining 2019 Certified supplier of OEM KOMATSU Mining 2018 Certified supplier of OEM JCB 2017 Certified supplier of OEM LiuGong Dressta Machinery 2015 Certified supplier of OEM Doosan Bobcat EMEA s.r.o. 2015 Debut on Giełda P
Slide 22: Sales structure
Sales structure – counterparties worldwide 90% of export sales Sales structure 2019 OEM 24% Dealer 8% Aftermarket 68% Lider eksportu 2020 22
Slide 23: Largest producer of buckets and accessories for construction machines
83 045 buckets produced 10 700 m² area of production halls 3 500 m² additional storage area the largest producer of buckets and accessories for construction machines in Poland 1 700 m² covered warehouse and major producer and supplier in 750 ton steel processed monthly Europe (50% S355, 50% Hardox/Q
Slide 24: Buckets and equipment
Buckets and equipment for machines for the construction and mining industries types of buckets: ✓ excavating (European and Scandinavian profile) ✓ backhoe (open pit mining buckets) ✓ hydraulic ditch cleaning and quick couplers ✓ shovel buckets (for light construction materials, high discharge) ładow
Slide 25: Zrealizowany projekt
© | DEKPOL STEEL Zrealizowany projekt
Slide 26: Zrealizowany projekt
© | DEKPOL STEEL Zrealizowany projekt
Slide 27: Zrealizowany projekt
© | DEKPOL STEEL Zrealizowany projekt
Slide 28: Zrealizowany projekt
© | DEKPOL STEEL Zrealizowany projekt
Slide 29: Dekpol Steel: Zrealizowany projekt
DEKPOL STEEL Zrealizowany projekt
Slide 30: Dekpol Steel: Zrealizowany projekt
DEKPOL STEEL Zrealizowany projekt 30
Slide 31: Zrealizowany projekt
© | DEKPOL STEEL Zrealizowany projekt
Slide 32: Dekpol Steel: Zrealizowany projekt
@ dekpol. STEEL DEKPOL STEEL OO” Zrealizowany projekt
Slide 33: Dekpol Steel: Zrealizowany projekt
= © | DEKPoL STEEL = Zrealizowany projekt
Slide 34: Badania i rozwój
14 Design Office specialists Badania i rozwój 9 specialists of the Technology Department academic cooperation optimized bucket profiles materials adapted to the type of raw material extraction selection of accessories for machine kinematics Individual projects 34
Slide 35: Patent protection
Patent protection Multifunctional bucket Patent no. – P.403142 35
Slide 36: Research and development
Research and development excavator tilt head fully hydraulic excavator quick coupler 36
Slide 37: Financial results of the production segment
Financial results of the production segment REVENUES EBIT (milion of PLN) (million of PLN) EBIT (million of PLN) EBIT margin (%) 25,2 23,9 22,9 14,0% 14,7% 12,3% 11,9% 12,7% 19,4 20,1 19,9 11,9% 10,2% 19,1 18,6 10,2% 17,9 9,2 16,8 16,6 6,6% 5,8 3,0 3,4 2,8 2,4 2,2 2,1 1,3 1Q19 2Q19 3Q19 4Q19 1Q20 2Q
Slide 38: Sales dynamics in 2020 vs. 2019
Sales dynamics in 2020 vs. 2019 significant increase in sales in October - gradual rebuilding of orders after the period May-September 2020 Revenues of department of production of machine accessories (in million of PLN) • quick response to market conditions 2019 2020 (COVID 19) 8,6 8,5 8,5 8,6 ✓ the
Slide 39: Leaders of machine production on the global market
Turnover / billion of Average number of Value of accessories / 2019 USD machines/ pieces billion of USD Caterpillar 32,9* 329 000 2,63 Liderzy produkcji Komatsu 21** 210 000 1,68 maszyn na rynku Deere 11 110 000 0,88 globalnym Sany 10,7 107 000 0,86 Volvo 9,4 94 000 0,75 Hitachi 9 90 000 0,72 XCMG 7
Slide 40: Expansion of the production plant
Expansion of the production plant continuation of organic development, possibility of abrupt growth together with a partner (business talks in progress) machine park warehouses expansion of warehouses 2018-2020 2020+ 2020+ ✓ enlarging of machines park ✓ creation your own brand, plan ✓ possibility of
Slide 41: Machine park
Machine park robotic synchronous welding station 41
Slide 42: Expansion of the plant
Expansion of the plant possibility of expansion supported by construction permits - possibility of expansion of production area by 4,7 thousand m² - possibility of adoption of the hall to production of large- size buckets (for machines over 100 tons) currently: ✓ 26,000 m2 plot ✓ 10,2 thousand m2 pr
Slide 43: 2020+ perspectives
2020+ perspectives possible rescaling of production - business talks with one of the largest machine manufacturers ATTRACTIVE MARKET: increase in infrastructural investments; growing importance of the location of production – continuation of foreign expansion in the global supply chain (consignment
Slide 44: Summary and Perspectives 2020+
SUMMARY AND 2020+ PERSPECTIVES
Slide 45: Summary
Summary ✓ record result in 1-3Q 2020 PLN 44.5 million of net profit ✓ comfortable financial position - a solid base for further development of the Group ✓ continuation of Group's reorganization activities, both in operational and financial terms ✓ new strategic initiatives ensuring very good prospec
Slide 46: 2021 perspective
2021 perspective General Contracting Segment ✓ strong ordering portfolio for a comfortable entry in 2021. ✓ strong demand from warehouse and industrial construction market ✓ works on improvement of cost controlling and increasing of profitability Dekpol Deweloper ✓ significant increase in the offer
Slide 47: Disclaimer
Disclaimer This presentation does not constitute an offer to sell any securities of Dekpol SA (the "Company"), in particular, it does not contain information about securities and the terms of their purchase and it does not constitute an invitation to sell securities, submit offers for their purchase
Slide 48: Thank you for your attention.
Thank you for your attention. INVESTOR RELATIONS : FINANCIAL COMMUNICATION : Agata.Dzieciolowska@ccgroup.pl Katarzyna.Sadowska@ccgroup.pl