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Comments from Dariusz Blocher, President of the Management Board of Budimex SA, on selected financial data from the consolidated Financial Statements of the Budimex Group for the first half 2013

News date: July 24, 2013
Comments from Dariusz Blocher, President of the Management Board of Budimex SA, on selected financial data from the consolidated Financial Statements of the Budimex Group for the first half 2013

In the first half of the year the Budimex Group reported operating profit at a level higher than in the same period last year, increasing profitability from 2.0% to 4.2%. The Group has also improved profitability at all other levels.
In the first half of 2013 the Group generated savings in management costs and maintained a very good net cash position, especially against the competition. At the end of the first half of 2013 years the Group's net cash position amounted Budimex 640 million zł in relation to zł 305 million at the end of the corresponding period of the previous year.
In the first half of 2013, gross margin of building segment amounted to 7.2% compared to 7.4% the previous year. At the same time, this segment improved at operating level at 50.8 million profit noting the profitability of 2.9% compared to 39.2 million zł profit margin and 1.4% for the corresponding period last year.
In the first half of this year the Budimex Group has signed contracts worth 2.2 billion zł net. This value is more than double the value of contracts signed in the same period last year (0.9 billion zł). As a result, the Group's order backlog at the end of June amounted 5.4 billion zł and rising comparing to the value of the portfolio at the end of 2012 (4.9 billion zł).
The first half of 2013 year was also a good period for the development segment. Budimex Nieruchomości pre-sold about 33% more flats (excluding reservations) compared to the same period last year (respectively 280 flats in relation to the pre-sold 210 apartments in Q1 2012).
Development segment recorded a 17 million zł net profit compared to 10 million zł net profit in Q1 2012. The profitability of the segment at the net level is maintained at 12%. It is gratifying also the net cash position at the end of the development segment of the first half of 2013. It remains at a positive level, and compared to the corresponding period of the previous year was significantly improved.
Throughout the first half of the year Budimex Nieruchomości notarized sold 299 apartments, while
in the same period of 2012 years has sold 243 flats. Please note that the notarized sale of housing depends on the deadlines for the completion of construction projects and the transfer of completed units to customers, and it's not a seasonal phenomenon and the comparable year-to-year.
In the second quarter of 2013, Budimex Nieruchomości launched three new residential projects: Mokotów Vistula in Warsaw, the third phase of the project Fighter in Krakow, and the draft CAP in Poznan. Currently Budimex Nieruchomości offers a more than 800 apartments in different locations in / in cities, of which only 9% are apartments completed and ready for use.
At the end of June 2013 The Group's net cash position, including their own cash and short-term securities, net of external financing was very good and amounted to 640 million zł, while at the end of the first half of 2012 years was 305 million zł. In May this year Budimex SA, continuing the policy of profit sharing with shareholders, paid a dividend in the amount of 112 million zł, allocating almost all the profit earned by the Company in 2012.
A slight decrease in prices and a favorable budget of EU funds for 2014-2020 allows positive look at the near future. Budimex Group expects a recovery in the calls for tenders at the turn of the year. Currently preparing for the new situation by gathering resources and adjusting the structure of the Group in order to remain competitive while maintaining a good level of profitability and cash.


 
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