Presentation for investors

Transcription

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

2 Agenda I. Important events of the period Successes of 1H 11 Challenges for the future II. Financial results 1H 11 Construction segment Developer segment Other activities Internal eliminations

3 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 valuable construction company 3

4 Dynamics of construction sales (bn. PLN) Budimex construction sales in Poland Polish construction production* infrastructure non residential residential 1,31 0,79 0,43 0,08 1H'10 52,7% 21,4% 1,99 35,7 29,4 1,34 20,3 15,5 0,50 9,3 10,6 0,16 4,6 4,9 1H'11 1H'10 1H'11 * construction production in Poland as the production of the companies with more than 9 employees registered in Central Statistic Office as construction ones 4

5 Construction segment: record sales and results construction sales (M PLN) construction EBIT (M PLN) Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 0 5

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

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

8 High net treasury position (M PLN) as of ,8% as of Total Construction Developer -1 Dividend payment* in June 10: Dividend payment* in June 11: -228 Non-core 1 21 * dividend payment from construction segment cash 8

9 Plots purchasing & developer projects Purchasing of new plots in 2011 Project Flats Status Warsaw (Bemowo) 550 Purchased in 07'11 Poznan (Wilda) 350 Purchased in 08'11 2,14 ha 350 Wilda POZNAN 3,87 ha Bemowo Goclawska WARSAW New projects in 2011 Project Flats Construction status Mysliwska II Cracow 162 Started in 04'11 Goclawska W arsaw 323 Started in 07'11 Czyzyny I W arsaw 164 To be started in Czyzyny Mysliwska II CRACOW 9

10 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' Budimex PBG Polimex Mostostal Mostostal Warszawa Erbud Mostostal Zabrze Polaqua 10

11 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 procedures and increase PNI profitability Budimex position on industrial market 11

12 Macroeconomic situation impacted Budimex Construction market End of Euro 2012 investments Public finances deficit: reduction to 3,0% of GDP in 12 from 7,9% in 10 local governments investments cuts Unstable European market situation national roads outlays drop 34 bn. PLN in bn. PLN in 13 local roads outlays decrease (schetynowki) 1 bn. PLN annually 0,2 bn. PLN in 12 size of EU co-financed investments under question Real estate market Polish Zloty depreciation vs. CHF min.(07 08) 1,96 PLN (06 11) 3,30 PLN S Recommendation implementation growing CPI forces NBP to rise interest rates CPI peak (05 11):5,0% ca. 4,0% in FY 11 Rodzina na Swoim expiration dropping creditworthiness historical number of flats available for sale on the market 12

13 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 prequalification on Turow power plant (550 MW) Waste incinerator: Offer placed for prequalification tender in Cracow in consortium with Cespa PPP contracts: Underground parking in Wroclaw: under process of negotiations 13

14 Financial results 1H 2011

15 Budimex Group 1H 11 (M PLN) dynamics 11 vs. as % of sales Sales Gross margin ,5% 48,3% 9,1% 12,2% 19,3% '11 '10 '09 '11 '10 '09 EBIT Net profit ,5% 9,5% 5,8% 5,3% 7,3% 5,0% '11 '10 '09 '11 '10 '09 15

16 Results by segments 1H 11 (M PLN) Budimex Group 1H'11 Construction Developer Other activities Internal eliminations Sales 2 248, ,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, 9% -5,9% 0,0% EBIT 145,4 116,9 23,5 1,7 3,4 as % of sales 6,5% 5,7% 13,0% 1,7% 0,0% Gross result 148,2 120,3 25,1-0,6 3,4 as % of sales 6,6% 5,8% 13,9% 0,0% 0,0% Net result 119,8 98,0 20,6-1,5 2,7 as % of sales 5,3% 4,8% 11,4% -1,5% -3,1% details on slides:

17 Construction segment 17

18 Construction segment 1H 11 (M PLN) dynamics 11 vs. as % of sales Sales Gross margin ,6% 50,7% '11 '10 '09 8,1% 9,0% 18,1% '11 '10 ' EBIT Net profit ,7% 5,3% 5,4% 4,8% 4,5% 5,2% '11 '10 '09 '11 '10 '09 18

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

20 Construction backlog (M PLN) Contracts realized with backlog value > 1 M PLN: 06'09 06'10 06'11 Number of contracts Average value ,4% Residential Non-Residential Infrastructure * * railway contract f or 698 M PLN included 06'09 06'10 06'11 20

21 Construction contracts signed (M PLN) Residential Non-Residential Infrastructure * 375 1H'09 1H'10 1H'11 * included railway contract f or 698 M PLN signed in May 11 21

22 Infrastructure contracts signed (M PLN) Contracts signed Offers identified Offering effectiveness 1H' % 1H' % 1H' % Despite of shrinking market, value of contracts signed in 1H 11 comparable to 1H 10 22

23 Developer segment 23

24 Developer segment 1H 11 (M PLN) dynamics 11 vs. as % of sales Sales 328 Gross margin ,2% 11,8% '11 '10 '09 EBIT 68 18,3% 21,0% 27,5% '11 '10 '09 Net profit ,0% 20,6% 11,8% '11 '10 ' ,4% 14,8% 5,5% '11 '10 '

25 Notary sales in 2011 (number of flats) Notary sales in 2011 come from projects finished before already presold not yet presold Stock (from finished projects) at 12'10 Notary sales 1Q'11 Notary sales 2Q'11 Stock (from finished projects) at 06'11 Potential notary sales in 2H 11 25

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

27 New projects: presales as of Projects with presales already started as of Flats presold Wolczynska Inflancka III Smolna 13A Mysliwska I Mysliwska II Nad Wilga III Total Warsaw Poznan Cracow new projects 589 Not presold 27

28 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 flats. 28

29 Other activities 29

30 Other activities 1H 11 (M PLN) dynamics 11 vs. as % of sales 99 Sales Gross margin 5 96,0% 77,3% '11 '10 '09 1 7,1% 2,3% 8,9% '11 '10 '09 2 1,7% EBIT -6,4% -12,1% ,5% Net profit* -9,5% -9,2% '11 '10 '09 '11 '10 '09 * including Budimex Danwood result and companies consolidated with equity method (Promos Ltd. and Elektromontaz Poznan SA) 30

31 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) backlog 12'10 sales cancellations signed backlog 06'

32 Internal eliminations 32

33 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 33

34 For further information, please contact: Magdalena Boruszewska