Budimex Sa · GPW:BDX

Budimex Sa — H1 2011 Earnings Presentation

34 slides from Budimex Sa's earnings presentation, 2011

  1. Slide 1: Presentation for investors: Financial results 1H 2011

    ethics teamwork responsibility ambition Presentation for investors Financial results 1H 2011

  2. Slide 2: Agenda

    Agenda I. Important events of the period 3 Successes of 1H’11 3 Challenges for the future 11 II. Financial results 1H’11 14 Construction segment 17 Developer segment 23 Other activities 29 Internal eliminations 32 © Controlling Office 2

  3. Slide 3: Important events of the period

    Important events of the period Successes Construction sales dynamic over market Record sales and results in construction segment Top backlog level: 7,9 bn. PLN Third year of dividend payment High net treasury position Plots purchasing process initiation & new projects started Budimex the most valuab

  4. Slide 4: Dynamics of construction sales (bn. PLN)

    Dynamics of construction sales (bn. PLN) Budimex construction sales in Poland Polish construction production* infrastructure non residential residential 52,7% 21,4% 1,99 35,7 29,4 1,31 20,3 1,34 15,5 0,79 9,3 10,6 0,50 0,43 0,08 0,16 4,6 4,9 1H'10 1H'11 1H'10 1H'11 * construction production in Polan

  5. Slide 5: Construction segment: record sales and results

    Construction segment: record sales and results construction sales (M PLN) construction EBIT (M PLN) 200 1 391 1 276 1 180 150 993 786 851 749 73 669 80 100 70 58 52 39 38 365 37 50 15 0 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 © Controlling Office 5

  6. Slide 6: Top backlog level (bn. PLN)

    Top backlog level (bn. PLN) 7,9 7,6 6,9 5,3 3,6 3,1 3,3 3,2 3,0 3,1 2,6 2,1 12'05 06'06 12'06 06'07 12'07 06'08 12'08 06'09 12'09 06'10 12'10 06'11 © Controlling Office 6

  7. Slide 7: Sharing profits with owners… (M PLN)

    Sharing profits with owners… (M PLN) total value of dividend dividend per share 231,8 173,6 149,1 5,84 6,80 9,08 '08 '09 '10 © Controlling Office 7

  8. Slide 8: High net treasury position (M PLN)

    High net treasury position (M PLN) +27,8% as of 30.06’10 as of 30.06’11 Total 505 645 Construction 504 463 Developer -1 Dividend payment* Dividend payment* 161 in June’10: -171 in June’11: -228 Non-core 1 21 * dividend payment from construction segment cash © Controlling Office 8

  9. Slide 9: Plots purchasing & developer projects

    Plots purchasing & developer projects Purchasing of new plots in 2011 Project Flats Status 3,87 ha Warsaw (Bemowo) ≈550 Purchased in 07'11 Poznan (Wilda) ≈350 Purchased in 08'11 2,14 ha 550 323 Bemowo Goclawska 350 WARSAW Wilda POZNAN 164 162 New projects in 2011 Czyzyny Mysliwska II Project Flats C

  10. Slide 10: Budimex: most valuable construction company

    Budimex: most valuable construction company as of 30.06'11 (M PLN) -8,04% -34,98% -19,50% -48,42% 3,10% -5,71% -50,00% % change vs 31. 12'10 2 336 1 980 1 678 631 503 394 372 Budimex PBG Polimex Mostostal Erbud Mostostal Polaqua Mostostal Warszawa Zabrze © Controlling Office 10

  11. Slide 11: Events of the period challenging the future

    Events of the period challenging the future Challenges European and Polish macroeconomic situation in 1H’11 influencing construction as well as real – estate market Alternative for shrinking roads investments market Finalization of PNI privatization process, then implementation of Budimex management

  12. Slide 12: Macroeconomic situation impacted Budimex

    Macroeconomic situation impacted Budimex Construction market End of Euro 2012 investments national roads outlays drop Public finances deficit: 34 bn. PLN in ’11 12 bn. PLN in ‘13 reduction to 3,0% of GDP in ‘12 from 7,9% in ’10 local roads outlays decrease (schetynowki) local governments investments

  13. Slide 13: Alternative for shrinking roads market

    Alternative for shrinking roads market Steps already undertaken Railway market: PNI Ltd. under process of purchasing. Conditional act of commercialization signed. The date for completion conditions: 31 October’11. First railway contract won: 698 M PLN Budimex on industrial market: Passed prequalific

  14. Slide 14: Financial results 1H 2011

    Financial results 1H 2011 budimex

  15. Slide 15: Budimex Group 1H'11 (M PLN)

    Budimex Group 1H’11 (M PLN) dynamics ’11 vs.… as % of sales 2 249 Sales Gross margin 293 1 723 1 517 204 210 30,5% 48,3% 9,1% 19,3% 12,2% '11 '10 '09 '11 '10 '09 EBIT Net profit 163 120 127 145 87 75 6,5% 9,5% 5,8% 5,3% 7,3% 5,0% '11 '10 '09 '11 '10 '09 © Controlling Office 15

  16. Slide 16: Results by segments 1H'11 (M PLN)

    Results by segments 1H’11 (M PLN) Budimex Internal Construction Developer Other activities Group 1H'11 eliminations Sales 2 248,9 2 059,5 180,0 99,0 -89,5 Gross margin 204,3 166,8 32,9 7,0 -2,4 as % of sales 9,1% 8,1% 18,3% 7,1% 0,0% Overheads -79,4 -68,8 -10,6 -5,8 5,8 as % of sales -3,5% -3,3% -5,

  17. Slide 17: Construction segment

    Construction segment © Controlling Office 17

  18. Slide 18: Construction segment 1H'11 (M PLN)

    Construction segment 1H’11 (M PLN) dynamics ’11 vs.… as % of sales 2 059 Sales Gross margin 248 1 358 1 367 167 122 8,1% 9,0% 18,1% 51,6% 50,7% '11 '10 '09 '11 '10 '09 EBIT 98 Net profit 117 72 74 62 73 5,7% 5,3% 5,4% 4,8% 4,5% 5,2% '11 '10 '09 '11 '10 '09 © Controlling Office 18

  19. Slide 19: Construction sales structure (M PLN)

    Construction sales structure (M PLN) Residential Non-Residential 1H'10 1H'11 Infrastructure 6% 8% 27% 36% 58% 65% 1 358 M PLN 2 059 M PLN © Controlling Office 19

  20. Slide 20: Construction backlog (M PLN)

    Construction backlog (M PLN) Contracts realized with backlog value > 1 M PLN: Residential 06'09 06'10 06'11 Number of contracts 66 106 101 4,4% Non-Residential Average value 47 71 78 7 922 Infrastructure 7 589 342 376 1 757 1 904 3 181 221 5 823* 5 310 1 150 1 810 06'09 06'10 06'11 * railway contrac

  21. Slide 21: Construction contracts signed (M PLN)

    Construction contracts signed (M PLN) Residential Non-Residential 3 638 Infrastructure 237 2 919 1 082 113 894 1 001 2 319 1 912* 609 375 1H'09 1H'10 1H'11 * included railway contract f or 698 M PLN signed in May ’11 © Controlling Office 21

  22. Slide 22: Infrastructure contracts signed (M PLN)

    Infrastructure contracts signed (M PLN) Contracts signed Offers identified Offering effectiveness 1H'11 1 214 8 346 22% 1H'10 2 319 22 259 10% 1H'09 375 15 949 2% Despite of shrinking market, value of contracts signed in 1H’11 comparable to 1H’10 © Controlling Office 22

  23. Slide 23: Developer segment

    Developer segment © Controlling Office 23

  24. Slide 24: Developer segment 1H'11 (M PLN)

    Developer segment 1H’11 (M PLN) dynamics ’11 vs.… as % of sales Sales Gross margin 328 69 180 44 161 33 -45,2% 11,8% 18,3% 21,0% 27,5% '11 '10 '09 '11 '10 '09 EBIT Net profit 68 49 21 23 19 9 13,0% 20,6% 11,8% 11,4% 14,8% 5,5% '11 '10 '09 '11 '10 '09 © Controlling Office 24

  25. Slide 25: Notary sales in 2011 (number of flats)

    Notary sales in 2011 (number of flats) Notary sales in 2011 come from projects finished before 2010 386 267 233 198 119 69 153 31 already presold 88 not yet presold Stock (from Notary sales Notary sales Stock (from Potential notary finished projects) 1Q'11 2Q'11 finished projects) sales in 2H’11 at

  26. Slide 26: Presales in 2011

    Presales* in 2011 Number of flats Warsaw 1Q'11 2Q'11 Cracow 229 flats 176 flats Poznan 10% 14% 19% 55% 71% 31% Value (M PLN) 1Q'11 2Q'11 115 M PLN 67 M PLN 5% 11% 12% 24% 65% 84% * net presales of flats © Controlling Office 26

  27. Slide 27: New projects: presales as of 30.06'11

    New projects: presales as of 30.06’11 Projects with presales already started as of 30.06’11 1 143 320 Flats 554 presold 249 120 178 162 162 119 17 Not 74 presold 200 72 589 156 145 130 104 68 6 4 Wolczynska Inflancka III Smolna 13A Mysliwska I Mysliwska II Nad Wilga III Total Warsaw Poznan Cracow ne

  28. Slide 28: Budimex land bank

    Budimex land bank Warsaw: 28,6 ha Cracow: 16,6 ha Poznan: 5,3 ha TOTAL: 50,5 ha Budimex owns land for c.a. 7 600 flats. © Controlling Office 28

  29. Slide 29: Other activities

    Other activities © Controlling Office 29

  30. Slide 30: Other activities 1H'11 (M PLN)

    Other activities 1H’11 (M PLN) dynamics ’11 vs.… as % of sales 99 Sales Gross margin 7 56 5 50 1 96,0% 77,3% 7,1% 8,9% 2,3% '11 '10 '09 '11 '10 '09 EBIT Net profit* 2 -1,5% -9,5% -9,2% 1,7% -6,4% -12,1% -1 -3 -5 -5 -7 '11 '10 '09 '11 '10 '09 * including Budimex Danwood result and companies consolida

  31. Slide 31: Budimex Danwood activity

    Budimex Danwood activity Main activity: timber frame houses production Main market: Germany (86% of sales value), foreign currency exposure hedged Backlog, sales and contracts signed (number of houses) 751 359 597 192 -13 backlog 12'10 sales cancellations signed backlog 06'11 165 -13 341 667 21 15 7

  32. Slide 32: Internal eliminations

    Internal eliminations © Controlling Office 32

  33. Slide 33: Internal eliminations 1H'11 (M PLN)

    Internal eliminations* 1H’11 (M PLN) 1H'11 1H'10 1H'09 Sales -89,5 -13,6 -66,7 Gross margin -2,4 17,6 -4,3 Overheads 5,8 7,2 0,8 EBIT 3,4 26,0 0,7 Gross result 3,4 26,0 0,3 Net result 2,7 21,1 0,2 * mainly construction segment to developer segment © Controlling Office 33

  34. Slide 34: For further information, please contact

    For further information, please contact: Magdalena Boruszewska [email protected] www.budimex.com.pl

Budimex — H1 2011 Earnings Presentation on 6ix