Commentary on results for 3 quarters of 2011

In the 9-month period ended 30 September 2011, the Budimex Group earned sales revenue of PLN 3,822.6 million, which represents an increase by 21% compared with the revenue earned in the same period of 2010.

This increase results from a significant increase (by nearly 36%) in sales in the construction segment of the Budimex Group, which offset the decline in sales (by 54%) in the real estate development segment resulting for the sales of the stock of finished flats held by Budimex Nieruchomości already in the previous year. The Company recognises sales revenue only upon signing the notarial deed of sale.

After three quarters of the current year, Budimex earned consolidated net profit at a level similar to the one recorded in the same period of 2010, despite significantly lower profit generated by the real estate development segment in this period.

After three quarters of the current year, the net margin on construction activities increased to 4.85%, as compared to 4.64% in the three quarters of 2010. In turn, the real estate development segment, due to the continuation of the policy of selling the stocks of finished flats, recorded a decrease in net profitability from 12.2% after three quarters of 2010 to 11.6% after three quarters of the current year.

During three quarters of 2011, Budimex Nieruchomości pre-sold 550 flats (excluding reservations), which ranks the company as one of the largest housing real estate development companies in Poland. At present, Budimex Nieruchomości is implementing 7 projects in Warsaw, Kraków and Poznań, with the total number of flats amounting to 1460. The sales of these flats will be reflected in financial results of subsequent years.

In three quarters of the current year, the total value of construction contracts signed by Budimex amounted to more than PLN 4.2 billion which, taking into account a significant decrease in the number and value of infrastructural contracts announced in that period, as compared to the previous year, must be recognised as a major achievement.

As at 30 September 2011, the net cash position of the Budimex Group amounted to PLN 889 million, as compared to PLN 644.8 million as at 30 June 2011 and PLN 815 million in the same period of the previous year.

As at the end of September 2011, the Budimex Group’s order book amounted to nearly PLN 7.7 billion.

Results of reporting segments for the 9-month period ended 30 September 2011 are as follows:

In the 9-month period ended 30 September 2010, individual segments recorded the following results: