Budimex S A Shs

Softly as a gentle breeze, flowing through my I don't know. I'm lucky to live without a love

Dzień dobry Państwu. Witam Państwa bardzo serdecznie i bardzo Państwu dziękuję, że zaszczyciliście nas na wynikach i na naszej prezentacji inwestorskiej, która dotyczy wyników całej grupy Budimex za rok 2023. Jak zwykle tradycyjnie chcielibyśmy Państwa zaprosić na krótką prezentację filmową, która podsumuje i pokaże, powie o naszych osiągnięciach w roku 2023. Zapraszam serdecznie. . . Thank you. So, Oh, so so so Thank you. so so Thank you. Good morning once again, I would like to welcome you warmly. I would like to introduce the people who are with me in our team. Anna Karyś is with us, Director of Human Resources Management, a member of the Board. On the left, Alvaro Garcia, President of the FBS Service Company. Jacek Lech, President of the Mostostal Kraków Company. Maciek Olek, a member of the board, a person responsible for railway and energy construction. On my right, Marcin Węgłowski, CFO of our group. And finally, Czarek Łysenko, a person responsible for general construction and infrastructure in our company. Ladies and gentlemen, from conference to conference, our films are getting longer and longer. Because now we have more to show, to say. Not everything is going to be recorded, but we try to show as much as possible. The year 2023 brought a lot of satisfaction to the Budimex group and in difficult times we still decided to diversify our portfolio, both in Poland and abroad, but also to enter new segments. And it was an exceptional year for us. An exceptional year in every respect, both in terms of development and in terms of achieved numbers. And let me tell you that at the beginning I will present these key numbers that we would like to present to you. So, record financial results of our company. We achieved revenues worth PLN 9.8 billion. This is an increase of over 14% year-on-year. Our EBIT raised by 8%. and cash at the end of the year reached a level of PLN 3.8 billion. What we are very happy and satisfied with is, of course, the contract. The contract at the end of the year was PLN 8.2 billion. We signed contracts of this value. but the key number is PLN 13 billion at the end of 2023. In our waiting room we had contracts worth PLN 13 billion, so these contracts where we took first place and we expected to sign or include unions. We will talk about it in a moment, because some of these contracts are already in the implementation phase, so some of them have been signed. What is also an important element to PLN 8 billion, this is already the scale and the value that applies to contracts made abroad and in Poland. but it is also a year where we achieved strategic plans, which I would like to tell you about, so we have increased the scale on the coastal markets. As I said, in 2022 we actually operated on two markets, we were currently on the German market and the Slovak market, while in 2023 It was already the year when our offers were selected on the Czech market and it was about the Kutlin polder tank worth PLN 113 million, but also the end of the year, exactly December 22, the contract signed by the Baltic countries, the largest railway contract in Europe on the Łotewski market. The reconstruction of the portfolio on the railway market and we will talk about it in the next part of the presentation. A więc też duży sukces. Ostatnie dwa lata mieliśmy duże wyzwanie, żeby odbudować ten portfel i rok 2023 powróciliśmy do tendencji odbudowy tego portfela. Wzrost kompetencji w segmencie OZE. Here we can boast of the already functioning first wind power plant, which has been operating since September. At the moment, we are already selling electricity. We are in the process of carrying out two more projects. The purchase of the Constalex company is a very successful acquisition of our company Mostostal Kraków, which we will talk about in a moment. Thanks to this acquisition, we became the leader in the steel construction industry in Poland and it gives us a lot of advantage and possibility of development. But it is also a year where we can already boast 160 chargers called Budimex Mobility throughout the country, you have the opportunity to load your vehicles in our loading points. Ladies and gentlemen, due to the fact that we are already in the month of March, we have allowed ourselves to present our achievements after the first two months. We will not be discussing the first quarter today, but we wanted to present to you five key elements that already apply to this year, 2024, which we would like to present to you and boast about them. Five S10 fairs. This is an element that, I mean, a very important element and achievement that was carried out in December. In the month of December, it is worth emphasizing that due to this aggressive offer, we had a very big problem to obtain contracts in the road segment. In December, the General Directorate, our main applicant, announced within one day eight market proceedings concerning the S10 section. Of these eight proceedings, five we managed to win in our company. I'm talking about it because it's an unprofitable contract. In total, the value of these trades is over PLN 2.3 billion and in total it is 73 km long. Another important element is that we entered, we started working together with development companies. So far, we have been a developer contractor. At the moment, we want to co-finance, design and implement development investments. It is the first contract in the city of Poznań, the construction of over 400 apartments in the development segment. Another important element is the entry into a new segment, completely our activities in the investment of power networks. one of our strategies. We want to develop ourselves in this segment. We know how important it is, how big the funds will be for the development of this segment. The energy network in our country, the average age is over 35 years, so from here our decision that we will develop this part of our company and we can already boast of the choice of one of our complex offers worth PLN 190 million. but it is also the work on projects in the OZE segment. At the moment, we are analyzing more than 1.5 GW in projects of green energy in various areas. And finally, for us the most prestigious and the most, I would say, the biggest distinction we have received after more than 20 years At the end of February, we received information that our company will enter the WIG-20 on March 15. We are proud of this. I would like to thank our employees. For a very long time, 7,500 people were involved and so that we could present ourselves as a company and join WIG-20. Thank you from this place to everyone, the whole team, but also thank you, thank you to our clients, shareholders for the trust you have shown us. I would like to remind you that we are a company that is over 55 years old. We started our debut on the value paper stock exchange in 1995. We are one of the oldest companies on the value paper stock exchange. In 2023, we entered the Morgan Stanley Capital International Index, as well as the next indexes, Narasela and Wisdom Tree. This is a huge distinction for us. As you know, we are a dividend company, we have been paying dividends for 15 years and we have it set in our strategy, but we are also a company since 2007, which regularly notes profitability and improves its profitability on its contracts. This is such a short introduction. I will allow Marcin to speak. Marcin will tell us about macroeconomic data.

Yes, we start traditionally from inflation, from GDP. In 2023, high inflation. In the first quarter of 2023, it even went up by 20%. At the end of the year, it looks like it's starting to fall. In 2023, we achieved 11.4 on average. Next year looks much better. Inflation probably because the base was high. I will start to get closer to the goal. We have January 3 and 9 in February 3 and 7. It also looks like this 4 and 6 is a very safe medium-term inflation level, which is planned for the year 2024. And of course, we are getting closer to the goal in the coming years. PKB at almost zero in 2023. We hope that the year 2024 and the following years it will be an increase of more than 3%. When it comes to the reference rate, so far it has remained at an unchanged level of 5.75, so it seems that with time, as this inflation will stabilize, the interest rates will also be correctly corrected in Poland. Moving on to the PMI indicator for Poland, unfortunately, we are still below 50, we cannot break this 50 after difficult times. that we were approaching 60%, at the end of the year it is 47.4%, even slightly less than in the third quarter of 2023. Construction and assembly production is very nice in December, because 14% has increased, but when we look at the whole year, it is only 5%. Unfortunately, these 5% on average, it is different in different segments, because the main factor and the main market, the construction market, Of course, there is road infrastructure, i.e. 11.3% of railways, 27% of general construction. Unfortunately, there is a decline and it looks like this decline in 2024 will be continued. Also, these construction companies that are in general construction and do not have other legs, such as Budimex, will have a very difficult time. Looking at the forecast for the construction market for 2024, It seems that there will still be a decline in the entire market. The general construction will continue mainly. I hope that the infrastructure may defend itself and will be within the limits of zero, but there is also a risk that this part of the infrastructure production will also be below zero. However, very good prospects, inflow of European Union funds, open and open KPO, also the perspective of the year 2025-2028. Of course, we show here on the slide more how we see it as a trend, because at the moment it is difficult to try to get a specific amount, but it seems to me that the next year after the year which will be in 2024 looks very optimistic. I'm showing this slide here, I'm trying to explain it a little, I don't know if I've already shown it. Some of you know it, but here we show what EBIT's profitability looks like in individual construction companies, depending on the size, i.e. the smallest to 50 employees, marked in yellow. I hope the same colors are there. Kolor Czerwony to taka firma średnia do 250 pracowników, no i ta firmy duże, które są generalnymi wykonawcami, które zatrudniają powyżej 250 pracowników. Ja wiem, że my mamy 7 tysięcy pracowników, ale tutaj nie ma takiej skali statystycznej. Natomiast popatrzmy sobie na rok 2018, tutaj było to największe rozwarstwienie, czyli bardzo, bardzo niska marża generalnych wykonawców i bardzo silni podwykonawcy, którzy generowali swoje marże. 2023, but also in turn 2021, 2022, 2022 shows that this market is stabilizing, i.e. the current situation, of course, we have data so far only the first half of the year 2023, but it looks like that here on this construction market all companies are doing well. Of course, this is also the statistics, so we always say that it is different in the company which works in infrastructure, otherwise in general construction, because general construction is completely 2023 and 2024 will have a completely different characteristic. Now we look at the choice, not the choice of materials, i.e. such a question is how much building materials and how much human resources are a barrier to the development of construction companies. It seems that this stabilization, which I showed in the previous slide, and also this dynamics of production, construction, assembly and assembly, this lack of materials is also correctly corrected, i.e. it is easier for construction companies, and this also applies to both this part of costs, which potentially constitute barriers and availability. When it comes to costs, they are still high. Let's remember that inflation is still with us. When it comes to about people, this availability has improved very much. However, in the long run, construction companies believe that the human cost is a very big barrier. And this is probably mainly due to the fact that the growing minimum wage causes this to have an adverse impact on the profitability of construction companies in general, especially those smaller companies. Once again, these are the companies that are in general construction. Here, after a big jump in previous years, we have stabilized the situation on the asphalt-beton market, as well as here. So, if this market is closed in 2024, i.e. there will be no big growth, I do not predict large growth in construction materials prices here. So, rather, stabilization once again. So, it can be said that, to sum up, the growing long-term production of the construction site, i.e. very good prospects, the inflow of the European Union Fund, a more difficult year 2024, but above all the stabilization of the macroeconomic situation, i.e. a return to the growth of GDP in 2024-2025 and rather inflation, which will be close to the inflationary goal set by the NPP. Thank you very much.

Ladies and gentlemen, when it comes to the financial results of the Group, we also allowed ourselves to prepare a slide describing our company, actually the whole Group, because the Budimex Group is not only Budimex S.A. I would like to remind you a little bit about our structure. Year after year, we are developing very much. The last two years, actually the last year, are seven new companies that I would like to briefly tell you about. As you can see, the construction segment, maybe I'll start with the construction segment, This is Budimex S.A. company and here we have four main pillars. These four pillars are of course general construction, road, railway and energy infrastructure, but also Budimex railway, Budimex construction, Kraków steel bridge and here we have not yet added, but the new Constalex company. So what I mentioned, what we will tell you about in a moment. Foreign markets. We would like to praise the new RailBX company. It is a company that was founded two years ago on the German market. It mainly deals with work in the railway segment for Deutsche Bahn. We achieved great success as the first Polish company. We received a certificate that allows us to work on the German railway market. A huge success, but it required a lot of dedication from us and a lot of time. What are we doing here on the Polish market, but we will talk about it in a moment. These are also three new departments on the Czech, Slovak and Latvian markets. So we established three departments that supervise contracts on individual markets. Renewable energy sources, Budimex Energia, Budimex Ferowial Energia, a company that was founded in April of last year. Budimex has 51% of its members, 49% is our shareholder Ferowial. As I said, we can boast of the company Magnolya, which is already functioning today. and in the phase of the Camelia company. Under the other segment, we have the Budimex Mobility company, which deals with chargers. A great success, because with very big progress year after year, as I mentioned, 160 already active chargers, but the Budimex Parking company as well. We have, of course, many more companies, but these are the key companies that we will see the effects in financial results. Ladies and gentlemen, when it comes to key results, our revenues increased by over 14% year-on-year. If we analyze the last five years, the average growth was between 5 and 7%. This year we doubled these revenues significantly, so the growth is over 14%. We have almost reached PLN 10 billion. but it has also led to an improvement in profitability of almost 40% and here from 6.5% EBITDA increased to 8%. The net profit is from 6.2% to 7.5%. I will not describe this at the moment, I will go to the next segments and here I will describe to you what exactly was the effect. So if we look at the construction segment, In the construction segment, year-on-year growth is exactly 13.8%. This is due mainly to the high level of the portfolio we have, but also to the favorable weather conditions that allowed us to work. And the end of the year is definitely very good, also due to the fact that we signed annexes concerning additional works, but also concerning the valuation of our contracts. A very good EBIT, which I mentioned, in the construction segment of 6% to 8%. This is an effect, above all, of effective cost management, but also of using the synergy effect in the group, because a lot of contracts that we carry out, we carry out together with the participation of our various companies. So, for example, looking at Western Warsaw, you can see that the entire steel construction is supplied by Mostostal Kraków. We do the traction networks with our own efforts, but we also cooperate between different divisions, the general construction and the railway construction. This allows us to do a very large range of work with our own efforts. This allows us to achieve and improve the effect of the margin, but also think about the strategy regarding the purchasing policy, which has supported us very much in the last period, i.e. these key materials related to asphalt and gravel. Service segment. It's a bit of a coincidence, but the sales growth has also increased by 14%, so a very good year when it comes to income growth. It looks a bit worse when we look at the EBIT, but in a moment the president of the company will describe the results and explain it exactly. This is mainly due to the portfolio on road maintenance. Here we have a much more difficult situation when it comes to the valuation of these contracts. These are long-term contracts, five-year contracts, so the valuation that we are currently getting from the client does not cover the costs that are caused by the implementation of these contracts. Moving on to the cash position. At the end of the year, the historical value when it comes to the cash position is PLN 3.8 billion at the end of the year. As you remember, in June we paid more than PLN 460 million in dividends, despite this dividend payment, a very good level of cash at the end of the year. If we look at our dividend history, ladies and gentlemen, over the past 15 years, we have paid more than PLN 4,587,000,000 in dividends, which is almost 180 PLN per share. And, as I mentioned at the beginning, our strategy involves 100% of the earned profit for dividend payments and we will continue to recommend it as a company and as a board for the Supervisory Board and for the local community. Moving on to our order portfolio, ladies and gentlemen, and the contract, this is our key challenge year to year, we are a company construction, but also service, but of course very strongly dependent on the portfolio, so it is a key element. It was a very difficult year for us. A year full of challenges and these two elements were very important. First of all, high inflation has greatly influenced the reduction in the number of orders in the private sector and we felt it strongly as a whole industry. But the second element is, of course, the lack of funds and EU funds and it mainly concerned the railway segment. The end of the year was definitely better because the government launched bridge funds through PFR. 10 billion zloty allowed us to include contracts, especially in this railway part. As you can see, the year 2021 and 2022, this segment in green is a railway segment. and we can compare it to 2019, where in our portfolio the orderly contracts were over 3.2 billion, 3.2 billion in 2021-2022, we practically did not sign contracts, most of these works are small works or annexes to existing contracts. However, In 2023, despite this difficult situation, we have already signed contracts and the key contract on the railway line was the Tychy-Most Wisła contract, which we are very happy about, i.e. the launch of aid funds through the PFR, but also the end of the year, as we all know well, the launch of the first deposits from the KPO of PLN 5 billion already gave the opportunity to include contracts by the main customers. but you can see how strongly the construction industry is conditioned by EU funds. Looking at the contracts included in our portfolio, I will mention the key ones that were found in this portfolio. This is a very large contract, contract A1, a contract of over PLN 700 million, a converted concession highway, Amber One. and we are very happy about it. We will rebuild this highway this year and next year, Zabierzowa Obwodnica along the national road 79, but also S8 Wrocław-Płock, plus other contracts and a very well diversified portfolio. What was also worth emphasizing was that it was a year when We were very busy with aggressive offers on the Polish market. We felt very strong competition, especially competition outside of Poland, where these offers were much lower, in our opinion, lower than the costs that should be foreseen for the implementation of a given investment. Contracts in the waiting room, which I mentioned at the beginning, ladies and gentlemen, We have a very comfortable situation. As you can see, the last two bars are over 13 billion at the end of 2023. We purposefully showed here the year 2021-2022. Looking at the previous years, the value of the waiting room contracts was between 3 and 4 billion zloty. Also, as we sum up, the effectiveness of these contracts signed from the waiting room was between 90 and 95 percent. So we expect that of these 13 billion, a significant part will be signed. It gives us a lot of comfort and what I mentioned earlier, over 5 billion PLN are contracts in the railway segment and over 5 billion, or actually 6 billion in the road segment. In a moment my colleagues will tell you about it, because a large part of these contracts has already been signed. A slide that makes us especially happy, ladies and gentlemen, because it can be said that it has brought our company to a different level, or to a different league, as we say, so it shows what it looked like, what it looked like to break these 13 billion zloty, both in Poland and outside the Polish borders. I would like to describe the Baltic Sea contract. As you can see, it is in green, over PLN 5 billion. This is a contract where we are in a consortium with the French company IFAS and the Italian company RISANI. This is a contract that was signed in December, December 22. We have been working since this year. The opening ceremony is to take place in May, so due to the fact that we do not expect large revenues yet this year, we have shown it and we show it in the further part in the so-called waiting room, but it is a contract already signed and included. The entire value of the contract is over 3.7 billion euros, and our part, when it comes to our group, is 30%. Later, contracts in the Czech Republic. We have two large contracts here, the D11 Trutnov contract worth over PLN 2 billion. This is the contract where we took first place. The client has already chosen us twice as our offer, as the best offer and the company to be implemented. However, our competition is withdrawing from this choice. At the moment, the case is before the court decision, but Cezary Złysenko will describe it to us in detail in a moment. The D35 contract is a highway contract, it has already been signed in the last two weeks, so it can be said that it is no longer a contract in the so-called waiting room, it is already a contract. And the contract, if we go to the Polish territory, the LK-104 contract, 965 million zlotys, a very important contract for us, it is a railway contract, where we are in a consortium with the company Gulermag. It is a tunnel contract worth a total of 2 billion zlotys, of which our part is a billion zlotys. It has already been signed on Friday last week. Ladies and gentlemen, first of all, these are so important contracts for us that both the Baltic Sea contract is an eight-year contract, as well as contracts in the Czech Republic or a tunnel contract. These are long-term contracts, four to six years of implementation, so it gives us a lot of comfort when it comes to our backlog. and such comfort that these contracts are included, that we do not have to start aggressively and get contracts, so we have work provided at least until the year 2026. All of these contracts, because of course the question arises, okay, and what will be the prices on these contracts, it is worth emphasizing that all contracts that are included both in the Czech Republic and in the Łódź region, these are valued contracts without any valuation limit, so it is a very big plus for us when it comes to setting a risk. These are contracts that are much more friendly for the contractor than those included in Poland, because as you remember, contracts in Poland have a limit. Although we increase it from year to year, but in the road segment it is 15%, in the railway segment it is 10%. Coming to the Czech and Slovak market, I will ask Czarek. Czarek, how can you tell us about these markets?

Good morning, ladies and gentlemen. On the slide, you can see the history of our offer. It is worth emphasizing here that Budimex, when offering on the Czech and Slovak market, did not use the adoption of any company, nor did it use the external agencies offering. We did everything ourselves, building the competencies of our own teams. So to sum up, our people have to learn not only the conditions of the game on the Czech market, but also the language. And a lot of them already speak both Slovak and Czech. Ladies and gentlemen, the story is practically three years old. You can see how much value we have made on the Czech market. This is the gray field, these gray bars on the Slovak market, green bars. In total, the value of the offered offers is close to 11.5 billion Polish zlotys, and today We have contracts signed only on the Czech and Slovak markets at a level of nearly 1.3 billion. Here on this slide, where there is a circle, you have the contracts signed on the left side, signed in 2023. It is worth adding that the D35 Zbanov-Litomyśl contract on the right side moved to the left a week ago. On Wednesday, we received information that the applicant signed an agreement with us for D35 in Zwanów, Litomyśl, and thus this contract is already visible in our portfolio, hence my summary that we have these road contracts worth PLN 1.3 billion. You also see that we are currently on the German market, 126 million of our portfolio, these are German contracts, 5 permanent contracts. We have already completed one with success. Regarding the Czech market, we have Polder Kutryn in the implementation. Here, the president mentioned earlier that this contract is worth 113 million, here it is written as 102, but this is a matter of counting between the Czech crown and the złotówka, it just changes all the time. The D1-D4 contract is the most important for us at the moment, because it builds our staff force on the Czech and Slovak market. We are talking about it together, because the conditions of the game, both the construction law and the conditions of financing and cooperation in this market are very important. and we treat this market as a common one. And today D1, D4 is our flagship investment with a fairly high level of development, close to 30%. We already have a stabilized team there, Slovak-Polish, because at the moment we have more Slovaks in this team than Poles. We do it with the satisfaction of the client. We are waiting for D11 Trutnów, please, a contract of over PLN 2 billion, 21 km, 28 bridge facilities, 2 tunnels. Here, competition does not let us forget about ourselves and the choice of our offer as the most profitable one is trying to protest. However, the arguments that I use are the same all the time and the orderer confirms that that both our references and their preparation meet the conditions of the order. At the moment, we are waiting for the next decision of the equivalent of the Polish KIO, to be able to be called to sign the contract. About the contract in Łotwa, maybe it's better for Maciej Olek, I would like to ask him.

Good morning, I welcome you. As the President said, in December we managed to successfully sign this contract, which we have been working on for almost two years. What is characteristic is that it is a long-term contract, where this production, which we expect here to exceed 4 billion, which falls on our participation in the consortium, will be extended for a few years. At the moment, we are waiting for the start of the first works. These first works will be the preparation of such logistics sites, because it is worth noting that the strategic materials for railway work on this contract are provided by the orderers, i.e. these works, the value of these works is devoid of materials, because if we added materials to it, the amount of these works that we will carry out there would probably be even greater. So this year, as the boss said, we do not expect any significant, here from the point of view of the income group from this project. However, in the long term, it will be a stable basis for functioning in Baltic countries. The department that we launched in Rydz also has a task of looking at the next railway projects that will be announced as part of Rail Baltic, this project that we are already implementing in Poland at the Ełk station. We are currently in Latvia, however, in the coming months or years, large projects are also planned in Lithuania, Estonia, also related to the construction of a railway surface, where our company Budimex Kolejnictwo, which the boss also mentioned here, which this year will already carry out all the surface work on its own, using the equipment that we bought earlier, but now also using our own resources, because this is the direction, maybe I will say a little more about the railway construction division we will be heading to. But these projects are still in the orbit of our interests and we hope that the next years will bring further successes here, that this project in Łotwa will not be the last success here when it comes to the countries of the Baltic Sea.

Thank you very much. To add to the comments of colleagues, it is worth emphasizing that, ladies and gentlemen, we focus on infrastructural contracts outside the Polish borders, i.e. contracts where we are able to carry them out on our own. and on contracts that are of significant value, that's why you see these big contracts, so we focus on these, in our opinion, the best contracts, hence what Czarek said, competition does not let you forget about yourself, but as you can see, with great success, we are acquiring these contracts. What I would also like to emphasize, ladies and gentlemen, you can picture the situation, what the eastern markets look like, the Czech Republic, Slovakia or Łotwa, to function on these contracts, it took us almost three years, so we have been working on these offers for three years, we have been building these teams for three years and we have gained knowledge about cooperation, prices and offers to acquire these contracts, so it was hard work from the basics to submit and sign these contracts. Moving on, ladies and gentlemen, to our portfolio. As you can see, by the end of 2023, more than PLN 13 billion, very good diversification and return to a similar scale as in the years 2021-2022, so similar values when it comes to individual segments. However, I would like to emphasize one thing here, If we look at the last three years, of course, it would seem that we have achieved nothing extraordinary, because in the last three years 13 billion is actually the same level, but these figures are a bit exaggerated, because we have to keep in mind that the previous year the production was made by 2 billion or more, so if we did not make 2 billion more in this production by the end of 2023, this portfolio would already amount to over 15 billion zlotys. A więc bardzo dobra, bardzo dobry portfel, ponad 13 miliardów złotych. Po prawej stronie Państwo widzicie zapadalność portfela, ale tutaj ta zapadalność dotyczy tylko tych kontraktów, które były podpisane na koniec roku 2023, a więc nie obejmują tych kontraktów, które są w tak zwanej naszej poczekalni. Stąd to, co wspomniałem wcześniej, mamy bardzo komfortowo sytuację i zapewniono to pracę dla całego naszego zespołu, co najmniej do końca 2026 roku. Ladies and gentlemen, moving smoothly to the road segment, Czarek.

Ladies and gentlemen, the history of the general offer of budgets on the Polish road market since 2015 is different on this slide, as you can see. In 2023, 17 billion of announced procedures, 37 large contracts, from which Bugimex, as the most profitable offer, made on 10 fairs. Quite a lot of efficiency when it comes to our offers. However, it should be emphasized here again that 5 offers of the best for S10 at the turn of November-December of last year. From the opened one day, where 8 of our offers were opened, there were 5 most profitable offers for a sum of over 2.3 billion zlotys. Ladies and gentlemen, the plans of the General Directorate for today will certainly have to be updated. As you know, since yesterday, Minister Dariusz Klimczak has called on the position of the director of the General Directorate of Railways and Motorways, Paweł Woźniak, and we are waiting for this first meeting with the new director to be able to ask about the update of investment plans in the road segment of the largest client, i.e. the General Directorate. However, Budimex is in a very comfortable situation here, that it has a large road portfolio of 6.5 billion. In addition, there is a hydrotechnical portfolio of 0.9 billion. And these portfolios, the portfolio of these contracts is very healthy. Therefore, we look with optimism, in fact, at the next two years.

Thank you very much. I'm sorry, thank you very much, Czarek. Moving on to the railway segment.

Yes, when it comes to the railway market and summing up the year twenty-third, it was a difficult year for us, the main challenge was the reconstruction of the portfolio, what the president mentioned earlier, because the year twenty-first, twenty-second practically in terms of the contract, it must be said that they were not very fruitful for us, and we gathered a very large potential enabling us to implement these projects, also entering the year twenty-third, One of our main goals was to rebuild this portfolio. It partially succeeded. Thanks to the circumstances that we were talking about here, the end of the year brought the signing of a contract with CPK for the construction of starting chambers, as well as for the construction of the Tychy Most Wisła section. Previously, the signing of a contract on line 104, also when it comes to the hub, so here the end of this year allowed this goal to be realized. The second such challenge was to introduce annexes with the main orderer of PKP PLK when it comes to the valuation of the contract. As we remember, road contracts were valued first up to 10%, then up to 15%, but in turn, this process was running a little slower. We had intensive conversations with our client throughout the year and at the end of the year we managed to lead to a situation in which all the contracts that we have implemented or are implementing have increased this value limit to 10%. It was a year in which we implemented very large projects. One of them was completed, the Czechowice-Dziedzice station. Port of Gdynia is practically functional, it is already at the very end. We are conducting finishing work. And of course, the West Warsaw, the most popular contract I have ever met in the media. Here we continue to work. I think that the track and platform infrastructure will be given to the travel authorities soon. I think not later than with the new school year. We do everything to make it as soon as possible, because it is known that every day of extended implementation is also not a favorable situation for our company. We always try to implement these projects very quickly and easily, so sometimes we take all these disappointing, accompanied by some delays. It must be understood that these are very difficult projects. 700-800 trains, passengers, a lot of un-invented elements. Even now, when we are implementing Segment 7, which is already the last, I would say, difficult underground element on the way to the Jerozolimsk Alley, we discover previously un-invented foundations, building elements. Unfortunately, we have to put it all into the frame of the project we are implementing. We ask for patience here, because both we and the main orderer, or two orderers, because here the investor is PLK and Tramwaje Warszawskie, we really make every effort to finish this project and I think we are closer than further. The other projects are going at their own pace. Ełk station will also be finished this year. So here we focus on further rebuilding of this portfolio and diversification of orderers, because history has shown us that the dependence on European funds in railway trade fairs is so great that it can lead to such an extreme situation that for two years we have only signed a billion contracts, where we have more or less two billion productions a year, and I think we can do more. with these resources that we have, but here we also have our successes. We signed an agreement with CPK to implement the chambers. We hope that the railway component of this project will be a solid foundation for the activities of the Railway Construction Division in the coming years. We are waiting for the announcement of the project in Łódź for the tunnel. It was also possible to win a contract for PKP PLK, but not so strictly related to the modernization of the railway line, but with the construction of power supply. This is a bit of the direction that Mr. President was also talking about here, that this energy, electricity, broadly understood, is an important element of our strategy and an important element that we will focus on in the coming months, combining the competencies of the Railway and Energy Division, which I will also have the pleasure to talk about in a moment. What is also important, last year we did a lot of work on our own. Especially when it comes to rail energy, we practically currently have the necessary resources to perform 100% of the work related to rail energy with our own forces. Both when it comes to the traction network and power supply, lighting, heating of departures, the reconstruction of the collision. We will continue to develop these competencies. Our goal is to build such resources that will help us or allow us to carry out of the entire cross-section of projects related to widely understood energy, power and electricity or transmission. We made over PLN 100 million with our own forces when it comes to electric and rail energy, which is a very big milestone and a step forward when it comes to the development of the railway building division. And as the boss said, the first months of this year have brought positive signals. We signed two contracts, LK148, LK 104, we are still waiting for the signing of a contract related to powering the Ełk-Korsze line, also worth almost PLN 200 million, so we hope that here the unification of EU funds and the release of this money will increase the pace of signing, announcing these negotiations and that we will be able to rebuild this portfolio in the coming months. When it comes to the railway construction division, when it comes to energy, i.e. my second division, it may be there today in these posts compared to infrastructure or in turn so a little bit dies. However, what I said before, I think it's the future and this division and all these actions that we are taking as a company will bring effects in the coming years. Anyway, what the boss also said, we look at all topics in the medium to long term. Today we are already thinking about what will happen in two or three years and taking into account planned investments in infrastructure or in the modernization of infrastructure related to energy transmission, or nuclear energy, or the reconstruction of the heating and heating system in general. These will be the elements that we will be working on in the coming months. We are already building structures related to the construction or modernization of transmission lines. We won the first contract whether we were chosen by PESA. We hope that in March or April we will sign this contract. However, here we also hope that due to these very ambitious plans, the investor will also systematize his investment plans a bit, because the market needs it a bit. The challenges are gigantic. However, so far there has not been such a custom as, for example, in General or PLC, that we had a clear investment plans, with projects, with amounts, with approximate terms. We are here in a dialogue with the PSE. We hope that such a calendar of projects will appear. The first positive step is the information that the PSE has provided as far as this year is concerned. Maybe this information is not as super precise as we would have expected, but 19, if I remember correctly, tenders of various kinds, both when it comes to the construction of transport lines and the modernization of existing stations. It also shows that this market in the next months and years will be a very promising market and we are going to get very, very involved here. And not only as a general contractor, but as I said, we are interested in building resources that allow us to carry out these jobs on our own, so that we have full control over the timeliness and quality of these jobs, because it is known that these are already areas of construction that require a very large, I would say, quality and taking care of processes, both management and implementation of work, because these are very sensitive topics and can cause various complicated repercussions. So this will be the direction in which the Department of Energy and Industrial Development will, I hope, develop in the coming months.

Thank you. Thank you very much. We will say a few words about general construction. Czarek.

Ladies and gentlemen, as you know, Budimex has a very grounded position in the general construction industry on the Polish market. Production in 2023 amounted to almost PLN 2.3 billion. This is also a historical result in Budimex. So far, we have never had such a production. And what is important in the portfolio, including the housing market, we have almost PLN 3.2 billion. The housing market, generally the general construction market, is not easy, it has not been easy for the last two years, it will not be easy also in 2024, but the difficult contracts that we had are already behind us, we are talking here, among other things, about the Museum of the History of Poland. And it must also be said that today Budimex is looking at other areas of its involvement when it comes to general construction, i.e. the previously mentioned JV contracts, where Budimex will also be a co-investor in this segment. And at the moment we are looking for more partners, because as we will talk about it in a moment, we already have one Jaskółka in our portfolio. Thank you.

Thank you very much. Let's go to the FB Service company.

Good morning. Good morning. The year 2020 was a very good year for the FB Service company. In terms of income, we achieved a value of PLN 924 million, which is almost PLN 100 million more than in 2022. above all due to an economic growth of 19% on the division that takes care of both road and building infrastructure. The division that takes care of agricultural services achieved an economic growth of 8%. As for EBITDA, we achieved a value similar to the year 2022 at the level of PLN 137 million. This percentage is 2% less than in 2022. And as the former president Popko said, this is mainly due to a lot of emphasis on the cost side, which we had while carrying out these maintenance contracts, maintenance of roads, which mostly were four-year and even five-year. So, despite the fact that we collected the appropriate annexes from the General Directorate, it was not able to completely mitigate the increase in costs that we raised. Also for this division of road infrastructure maintenance in 2023, we completed the implementation of a few small construction contracts that brought losses. A few months ago, the company made such a decision that we would focus solely on strictly maintenance contracts. As for the EBIT result, the value of 81 million was achieved and we see here the effect of amortization of the permanent return that we invested throughout this year 2023. And for the last part of the improvement at the bottom of the slide, we see the result when it comes to NTP. It is necessary to clarify here that the value that we ended the year at the level of 194 million zlotys in relation to the dividend payment that took place for the first time in the history of FB Service to the main shareholder at the level of 55 million, so this value of NTP, considering this fact, is very satisfactory for the company. As for the important facts that we would like to share with you for this first month of 2024, We are currently in the first place for two pre-trial proceedings for the General Directorate for Road Protection. In the vicinity of Kielce, the value of these two offers is 86.8 million PLN and we are now waiting for these bids to be cancelled. In the Department of Rural Services, we also have the first place for one fair for the reception and management of waste in the city of Poznań. The value of this offer is PLN 36 million. Ladies and gentlemen, when it comes to the development direction of the FB Service company, which has already been mentioned at previous meetings, the FB Service company wants to invest in the changing asset that is currently in possession. And a very good example of this is the development of the installation that we have in Tarnów, the FBS Service Karpatia company. We have already carried out the procurement process and we had a general manager. In this case, the general manager will be the Stalkraków bridge company, so it was possible, as part of such a good synergy in the group, to send such a task to the Stalkraków bridge company. At the moment, we are waiting for a change of choice in this facility, which we are waiting for from Małopolski University Marszałkowski, which allows us to continue working on this facility, as long as there will be built robots there. And we expect to start these projects in the second half of this year, in 2024. We also have a key asset as part of the logistics service work, the logistics base that we have. We are now working intensively on three locations, on two we are already in possession of real real estate, I mean Poznań and Łódź and in Czesłów we are at the initial stage, because this is also the area that is the object of our interest and we are now in the process of using real estate for these logistics bases. When it comes to development ideas, which we have defined as priorities so far, and we have already talked about them at previous meetings, the next step is the pre-processing of bio-waste in terms of the production of fertilizers and achieving relevant recycling indicators. and the production of RDF fuel, which we are already carrying out today for two of our companies, but we want to professionalize this production even more, based on dangerous waste and other industrial waste that we do not use today for this purpose. At the moment, within these two directions, plus the direction related to the sorting of waste and the segregation of construction waste, we are analyzing or working on three Greenfield projects that we want to develop from the beginning on the real estate that we are in possession of, plus one project that we are analyzing as a Merchant Acquisition, as M&A. Thank you very much. Alvaro, thank you very much.

We will move on to the Most Hostel Kraków company, Jacek.

Good morning, I welcome everyone warmly. Ladies and gentlemen, the year 2023 for Mostostal was a historic year, almost exceptional in many aspects, starting with financial aspects, which I will talk about shortly. As for revenues, we ended the year 2023 at a level of PLN 544 million. because it was 12% more than in 2022, and 2022 was also very exceptional for us, as you can see on the slide. As for the contract, we achieved a level of PLN 531 million. This is a healthy contract and I can say today that thanks to this, we have a portfolio of PLN 600 million. As for cash, In 2023, we ended up at a very high level of cash, despite two factors that had an impact on our cash flow, namely the purchase of Konstalex, which we mentioned earlier. We made this acquisition from our own funds and a very large investment program, which takes place at the factory in Kraków. Thanks to this investment, we will significantly increase our potential, but we will also reduce the costs of functioning of this plant. When it comes to the margin after the difficult year 2022, we have returned to the path of the margin years and in 2023 we finished the EBITDA at a level of 9.4%. Ladies and gentlemen, a few words about Constalex. The President mentioned that on May 15 we bought 100% of the shares in the Constalex company. Thanks to this, I can say today that we are the leader when it comes to production and delivery of steel constructions on the Polish market. Thanks to this, we remodeled our idea a bit, or our trade policy. We focused on large contracts. We are looking forward to our chances and after a few months, I can say that the first effects have already come. At the turn of the year, we signed a large contract in Lithuania. We will supply 6,200 tons of steel construction there. for one of the local customers. It will be the delivery and assembly of the construction. The company Konstalex will deal with the delivery, we will deal with the coordination of the entire project and the assembly. A few more words about Konstalex. Ladies and gentlemen, after six months of consolidation of results, but also after six months of operational management of this company, I must say that the reality that we are left with today is much higher than the assumptions we had at the M&A stage, that is, at the stage of building the model. The revenues of this company and the contract are much higher than the historical numbers generated by the company in recent years. When it comes to EBIT, In 2023, we want to finish at a level of 6.2%. We have rebuilt the backlog and a stable level of cash, but we have also started an investment program. In the same way as at the factory in Kraków, we want to optimize this factory in terms of costs, but also prepare it or increase its production potential so that it can produce more in the future and thus generate more revenue. Everything I said in 2023, which we achieved thanks to this, I think we have built a solid foundation so that the company can develop in 2024 and with great optimism we look forward to the next quarter. Thank you. Thank you very much, Jacek.

Maybe to complete my colleague's statement. It is also worth emphasizing that, of course, the company cooperates very closely with our group, but 70% of the company's revenue is from external clients, so It is also worth emphasizing that a very large part of the elements goes outside the Polish border. We deliver steel to the German market, last year we delivered a very large and we implemented a very large contract in England, so every year this development is really dynamic and practically almost two-digit. Ladies and gentlemen, moving on to the market and prospects. My team and I are big optimists, as always. Our strategy, our goal is always to look long-term and we rather look long-term, so we look long-term at what will happen in our country, but also abroad in Poland, we see a lot of optimism in it. We are showing a slide that you have already seen in the previous presentation, because at the moment we do not have current plans for the new government, so we are focusing on what was announced by the previous government. In short, I would like to tell you, and of course we expect, as my colleague Czarek said, what the General Directorate will show and what the new plans of PKP PLK will show, those mainly orderers, but I believe that these plans will be implemented, planned, so we know that we are a country that is developing very much, needs further investments and is moving smoothly into the road segment. It is worth emphasizing that at the end of 2023, our road network was over 5,000 km, 5,000 exactly 200 km of road traffic. So, in the goals of the government, in the long term, until 2033, there will be the construction of 3,000 rapid traffic routes. So, we still have gigantic work ahead of us. The value of these works is over PLN 294 billion. As you can see, the construction of bypasses has been continuing all the time. There was a momentary halt, because there was information that the budget would be lost somewhere. but after talking here with the orderers, we see that this budget is somehow blocked. We are currently implementing, as far as I remember, Czarek, how many? Two, three, three floodplains, right? When it comes to floodplains at the moment from this program, so We look at it with great optimism. If we look at the railway segment, you can see here in this column CPK, I know that it arouses a lot of emotions and questions. Of course, we are waiting for an analysis carried out by the government concerning especially the airport board and actually the entire cubature when it comes to the airport. But as we know, CPK is, there are three components and here we mainly count on this railway component and we believe that this railway component will be implemented. It actually probably does not arouse any emotions when it comes to and doubts when it comes to the government, but also the citizens of our country. And the next energy segment is what Maciej mentioned. Ladies and gentlemen, this is a strategic element of our country, something that we should focus on from the first day, so we believe in this segment. We believe that it will be one of the key divisions in the near future, if we look at the long-term perspective of our activities, when it comes to the Budimex Group, both the transmission network and the nuclear power plant. We want to take part in it, we want to take part actively in these works and we have actually already started these works, but also in the field of green energy. If we look at offshore, it is worth emphasizing that last year we signed an agreement and we are realizing the port on the coast in Świnoujście for the company Orlen. So to sum up, these investments are over PLN 1 billion by 2030. Of course, moving on to the EU funds, because it is impossible to make these investments without support from EU funds, we have the main cohesion fund, i.e. the Phoenix Fund, which has already been launched, so we are very happy about it. This is very good information that we have received from the government, so these works have already begun. these contracts began to be announced, which are co-financed by these funds, or we also started to include contracts. But it is also, as we see and look at the infrastructure, looking at the Phoenix Fund, comparing the previous program from 2014-20 to the current program 21-27, when we summarize the infrastructure and the order, plus CEF funds, this level is very close, so we believe that the part intended for the investments in which we take part is very comparable to the program from 2014-2020. The national development plan, I would not like to focus on individual segments, because everyone We have heard a lot about the national KPO. We have already launched these funds, over 60 billion euros. If we look at the whole We as a group see here for ourselves a field for action in the range of PLN 30 billion and this is a range on which we will focus very much. Usually 25% of this range is our share, so looking at all these segments, PLN 30 billion is the part in which we will be very actively involved in our implementation phase. Coming to investments related to OZE, here I have already mentioned some of you, I would not like to repeat myself, a new company Budimex Ferrovial Energia. At the moment, in the implementation phase, we have a Camellia project, it is 14 MW, a rather significant project when it comes to us. But also what we said, we are already making applications for connection conditions. At the moment, we are in the process of submitting applications for power over almost 150 megawatts. But I would also like to mention that, as you remember, our strategy in the next four years is to have over 500 megawatts in our portfolio. We will not reach this goal if we do not take over companies. At the moment, we are in the process of analyzing one of the companies. It is a photovoltaic farm with a capacity of 60 megawatts. I think that at the turn of the next few months, it will be possible to enter this transaction. Moving on to the housing market.

Marcin. This is how we did the first step back to the sales of real estate, back to the developer part, to the housing market. We signed the first project, which is a joint venture with Apricot company. 75% for Budimex, 25% for Apricot. We want to build 420 apartments in Poznań. We have already made investments with Apricot, but we also had other real estate transactions. But also on this occasion, this transaction, I would like to say that Budimex in general is open to a potential landowner who does not really know what to do with it. It can come to us. Of course, in large cities, we can restructure it, minimize the building risk, because we are simply approaching this risk on our own. We are able to commercialize and offer much better value than just selling this land. That is why Apricot also took advantage of it, that is, it received a very good offer, but thanks to that we also have a job, we enter the residential market with a return, we also earn quite a lot of our money, we have a good margin in the part of general construction, general, so it is such a win-win situation, so I invite you if you know someone, who has a piece of land in a good place, we invite you here to us, we are very happy to commercialize it, so that all parties will be happy. And to say more, we do not limit ourselves only to the apartment complex, so that in our area of ​​interest there is also land in good places for a data center, i.e. a center for information processing, as well as maybe a logistics center, but really in a very good place.

Thank you very much. It would sound very good. Moving on to Budimex Mobility, Czarek.

Budimex Mobility, ladies and gentlemen, our company, which has been operating for two years. As you know, in the area of green energy, we have used our competencies in building roads and places of travel to be able to power electric vehicles. Ladies and gentlemen, the goal for 2023 was 150 started goods. It has been achieved with an increase, because we have launched practically 158. In the last days of 2023, 8 were still in the reception phase. As a result, we are doing so well, we have raised the goal for 2026, we had 450, today it is 460. do osiągnięcia, no chcemy być w pierwszej piątce tych firm, które będą dysponowały ładowarkami na terenie Polski. Widzimy, że nasza pozycja na rynku jest bardzo dobrze czytana przez konkurentów, którzy zwracają się do nas o współpracę, także z uśmiechem i zielono przed nami.

Bardzo dziękuję. Szanowni Państwo, przechodząc do ESG, jak Państwo We announced the strategy in June 2023 on the subject of ESG. Today we would like to separate ourselves from the declaration that we have already submitted to you. Ania.

Good morning, I welcome you warmly. Just to remind you, I will just say that since September 2019, Budimax has been part of the WIK-ESG index. And as the president has already said, in the middle of last year we announced the ESG strategy, and today I will briefly summarize the goals we set for 2023. We have a strategy announced for the year 2026, today a summary of last year. In the area of the balanced environment, we planned to get 100% of electricity from renewable energy sources from the market. Energy consumption last year was at the level of 20,678 MWh and the entire energy came from renewable energy sources. Regarding the part of the ESG strategy concerning social, a very important goal for us is to support diversity. And here, in this area, we have carried out a number of various promotional actions promoting diversity. We have carried out four campaigns regarding diversity of gender, age, as well as intercultural differences, as well as disability. We organized international exchanges and last year 14 people went for an internship to Great Britain, Australia or Spain. We also cooperated with students and invited students, among others from Ukraine, to the internship. People are very important to us. We emphasize at every step that people are the most important to us. And it is precisely in the human aspect that the development of employees is a very important thing for us. We assumed to keep the expenses for the development and training of employees at the level of PLN 7 million. In the previous year, we allocated PLN 8.5 million for development and training. We have implemented a number of development programs. Our key, standard programs supporting development are, among others, the Super Leader program, the Academy of Engineers, the Academy of Contract Managers, or the Academy of Economic Managers of the Region. These are our internal positions. to which we promote people from within the organization, prepare them for these roles and develop them in these roles. And a very important project for us, intended for women, is the walled success. Safety is always an important goal for us, and we have already talked a bit about it today, in terms of safety and building a safe work culture. Last year, we planned 364 visits of the highest managerial staff to our contracts. There were 576 visits. Our May tradition is the Security Week on our buildings. Last year, such a week also took place. 94% of contracts, we carried out various activities that expanded the security culture in the workplace. We also assumed an increase in potential accident reports and in this aspect we also achieved an increase of up to 50%. An important issue for us has been supporting the education system for many, many years. And here we have been cooperating very closely for many years with higher universities in the area of basically the whole of Poland. We have established cooperation with 18, at least 18 universities and secondary schools, because last year we also cooperated with secondary and technical schools a little more strongly. We managed to cooperate with 40 secondary schools and 19 higher schools. We carried out a number of various activities there and 142 events are the events that we organized at the universities and technical schools, secondary schools. We were participants in 48 job fairs, we organized 27 lectures at the universities. and we invited them to our buildings, showing our students' and students' achievements on 29 of our contracts. In addition, we organize various types of competitions at the universities, we invite them to internships and also fund scholarships. In terms of the purpose associated with corporate law, here we were setting up an update of the Code of Ethics. In fact, it was done, we expanded the scope of the Code of Ethics. In the context of the conflict of interests, we also planned a review of the procedures. It was done, we described new areas in these procedures. There was also a textbook with guidelines on how to behave in such situations of conflict of interests. Corruption risk counteraction is very important for us and here, in this regard, last year we developed a compliance communication strategy. We trained a significant number of our employees. Last year, 1200 people. This year, we continue these trainings and plan to train the rest of our employees in this area this year. Cybersecurity is also important for us and in this area we have implemented various types of projects aimed at protecting personal data not only ours, but also our subcontractors. We have also developed a list of risks and chances of ESG and we have introduced reporting in the area of cybersecurity. And, ladies and gentlemen, this year we continue, of course, these activities, we introduce a number of new activities so that the next goals of this ESG strategy are realized in the following years. We want to develop intensively, we want to be a company that is completely balanced, modern and supporting the development of our economy, but this is under the assumption, of course, of caring for the environment and this will be our, of course, goal in terms of this strategy, which will continue in the years to come. Thank you.

Thank you very much. I think it is worth mentioning that, in addition to the fact that our priority was and will certainly be safety. Ladies and gentlemen, it is an exceptional year in our company in terms of safety. We have not had a single fatal accident in over a decade. We have been analyzing these accidents since 2011. in the same way very, very strongly. And just to remind you of such calculations, I don't have this chart with me, but in 2011 we were half the smaller company, our revenues exceeded PLN 5 billion, and we had over 60 serious cases and 7 fatal cases. This year, in 2023, our revenues are PLN 10 billion, 220 active contracts, And we had only 20 serious accidents and no fatal ones, so we reduced the number of serious accidents by almost three times, and every employee who worked on our building returned home safely. More than 14,000 people worked on our construction sites every day and there are more than 14,000 people working to this day. So it is a huge challenge for us and a huge goal that we set for the whole team, for which I thank our employees very much. Ladies and gentlemen, to sum up the whole 23rd year, but also going over and discussing these short-term strategic goals, ladies and gentlemen, We have five short-term goals that we would like to present to you. The first goal is, of course, in the long run, we want to maintain the position of a leader in the Polish market. We want to enter contracts, and in every segment, i.e. in the cubature segment, in the road, railway and energy segment. We want to enter PPP projects. This is one of the elements that we do not have. There are very few of these contracts in Poland, so we are looking with great optimism at the eastern markets. And here we pay a lot of attention to the Czech market. There will be a big progress announced this year on the D35 highway contract, a contract worth over PLN 4 billion. We want to enter the PPP formula contracts and we see a lot of opportunities here for ourselves. to be both a financial investor and later, of course, a company that will design, implement, but also maintain this investment. We want to strengthen our foundations in foreign activity. We do not plan to enter any new areas, so we do not want to go to other countries in the next two years. Here is what Maciek said, we will continue to think about the Baltic Sea. Of course, we will focus on large projects. So I said about the Baltic Sea, because at the moment, when we look at the entire range of the Baltic Sea, it is of course a line that will connect Estonia, Latvia and Lithuania. In Estonia and Lithuania, these proceedings have not yet been resolved, so due to the fact that we are already participating in the area of ​​Latvia, we are very interested. Of course, we are looking at Estonia and Lithuania, but we do not plan to go to other countries. We want to enter new areas of activity. In fact, we are already in them, but we want to strengthen our competencies in transport lines and in ATOM. We want to enter, as we said, in JV contracts in order to increase our margin in the field of general construction and consistently expand the portfolio in the OZE segment. Ladies and gentlemen, for us, summing up, excuse me, summing up the year 2023, it was a very good year. We are finishing it with a feeling of well-done work. I would like to thank my employees once again from this place, who implemented these contracts and thanks to which we achieved these results. I believe that the next year will be even better. We always say that it will be difficult to cross the line, but we always say so, we lift ourselves up, so Thank you very much. We are at your disposal. If you have any questions, of course, we will answer all the questions directly in the room. If there are people who have connected with us online, of course, we are also at your disposal to answer all the questions that you would like to ask us. Thank you very much. Really a very good year. And thank you for your trust, thank you to the shareholders for your trust and for the fact that we were able to enter this GIG, the GIG20 index, which is a really huge distinction and prestige for us. And of course, we will try not to disappoint you with this. Thank you very much.

Good morning, Michał Wrzosek from the Budimex press office. I will join this part of the conference here. I will have the pleasure of moderating questions and answers. The questions come from three places, three sources, i.e. from you, guests, our participants who are here with us online and we also answer the questions that were sent earlier by analysts or investors. We also invite our guests here directly. Do zadawania pytań na sali są koleżanki i koledzy z mikrofonami, także pomożemy.

Zapraszamy.

Dzień dobry, Elżbieta Pałys, Rynek Infrastruktury. I would like to ask about the validation of maintenance contracts. Is it still a subject of discussions with the orderers, or are we just waiting for them to end? And when will they end? Yes, of course, I am asking about when these contracts will end, the most problematic in this regard.

This conversation took place in 2023. The maximum amount that we managed to achieve in the case of maintenance contracts is at the level of 10% and, as I said, for most of the contracts we have just completed the annexations that regulate the valuation issue. So now, for the new pre-sale that we are putting in this year, these conditions are already known to us and we have to consider this from the very beginning when we carry out our calculations, when we start but we do not expect these changes in this year.

Any other questions?

Katarzyna Kapczyńska, Puls Biznesu. I wanted to ask about the T3 contract for Baltic Hub. What is the progress of work in relation to the schedule and is there a risk that there will be a delay in this implementation? But I also wanted to ask about the FB service, Since January, there is a calcium system for packaging after drinks. And what will change in this situation when it comes to FB Service? For example, do you want to be an operator of such a system or invest in some recycling centers and, for example, collect plastic bottles and cans from stores for further processing? What will be your role in this system?

Thank you. If I may ask, we will start with the coast.

Baltic Hap, terminal T3, the largest container terminal in the Baltic, which we are proud of. 52% of progress according to the harmonogram. No term risks as of today. We are in the phase of complete landing and strengthening. At the moment, we are making the main concrete wall on the outskirts of the artificial land. We have already arranged most of the underground power networks. At the moment, we are focusing on the kubatur part. Two buildings are in the implementation phase, the rest is in the process of foundation. And as I said at the beginning, we are proud of this implementation, that as a Polish company we can participate in such powerful work as such a container terminal.

Thank you very much, it also gives us very good references and the possibility of starting outside the Polish borders and here we are looking at the German market.

Alvaro? Yes, when it comes to the rubber system that Mavis has been developing in Poland since the beginning of last year, of course, we are monitoring this topic because I will have will have a direct impact on our activities, because some of the waste streams that are being collected today in a segregated way, i.e. I mean glass waste and fossil waste, may no longer be available as part of the stream that we collect. So it's getting harder and harder to achieve the recycling guidelines that the European Union expects from each member country. In fact, answering your question, we do not treat this as a direction that is attractive to us today. The model that will most likely be implemented in Poland is assumed to have several operators, so at the moment, according to us, only the unknown are known, which means that this system will generate more According to us, there is more risk than chance. So, as I said, our three directions are already defined and we are observing this topic, but we do not intend to directly start this process.

Thank you. Good morning, Rafał Zasuń, portal wysokienapięcie.pl. I have two questions regarding investments in the energy sector and these performance agreements. The first question on the slide, we have a goal for Budimex, a billion zlotys in the performance portfolio. The question is, for which year is this goal and whether you expect it to be only as a result of contracts with PSE, or also contracts with OSD, some 110 buildings. What does it look like and do you have at the moment, are you participating in any fairs also organized by OSD? And the second question concerns investments in renewable energy sources. And the question is what business model do you want to implement here? Are these investments that will start in auctions, or maybe they already have auction contracts, or rather farms prepared for PPAs? And do you foresee any slowdown in these investments due to what is happening on the market? This drop in the prices of electricity, or does it have any impact on your plans? Thank you very much.

Thank you. We will start with the energy topics.

Thank you for the question. We would like to have this one billion zlotys in the transfer. Broadly speaking, it must be said that our company is very good or the best in the implementation of large, complicated contracts. And that's what we're counting on when it comes to energy transmission, modernization of the entire transmission infrastructure, because the construction of many kilometers of the line or also the modernization or the construction of new stations will be large, multi-million projects. And here we are able to use our competencies. As for the OSD, we are looking into it. We started in individual fairs. However, two things are needed here to clearly answer this question. what the investment strategy will be, what the money will be and how the companies that deal with distribution are going to invest this money in the coming years. After solving, I would say, the dilemma of carbon assets, because somewhere here the last months or years brought some doubts about how the money will be, what the sources of financing will be, because the fact that financing this part of the distribution is necessary and modernization, there are no doubts here. Well, these facts related to carbon assets and investments remain. So, our goal is, as I said, the implementation of all electro-energy jobs, whether in railway or professional electro-energy. Today we already have full competencies when it comes to modernization or building up to 110 kV. All higher voltages are a matter of the future and building our potential in the coming months.

Thank you very much, Marcin, when it comes to green energy.

Adam, let me start by saying that we are looking at a very long-term renewable energy source, so we can't just look at the fluctuations that are neutral today. Of course, the price of electricity was very, very high, which caused, I would say, such a big a large range of all companies that suddenly want to invest in OZE. We are not together in those companies that look at it very structurally. We want to be in this sector, we want to invest 500 megawatts in wind and photovoltaics. However, we do not limit the formula. I mean, we definitely want our investments to be secured in terms of revenue. That is, the contract formula with a potential long-term recipient would be the most preferred for us. and in this direction we will go, but we do not limit ourselves to projects that are currently available on the market, or after the auction system, or before. We are interested in the investments of these projects that are ready to be built, i.e. we are able to deposit money right away, but we are also working on projects that are very need a long time to prepare so that it is possible to build a given farm on them, or a wind farm, or a photovoltaic farm. We also count on the fact that these problems that are with the lack of legal investment possibilities, the possibilities of investing in wind will soon be solved. I don't know if I answered the question, because the question was very different. Where do we want to be? We want to be practically everywhere where we are able to have the appropriate return on capital and rather we want to invest in projects that will be secured by long-term energy consumption from our potential customers.

We have one more question from the room.

Adam Rogowski, Rzeczpospolita Parkiet. I have a question. How do you assess the prospects of the housing market, if you want to go back to it? Times are interesting, as always. And possibly, is there any scale you want to build? Because here we were talking about the first JV and 400 apartments.

This is the first step. Yes, I said it is not only in the housing part, but I also said that not only in the housing part. For now, I don't want to talk about this scale. It will not be a repetition of the construction of a large organization, as it was the building with real estate. We are currently approaching this very opportunistically, i.e. we want to use the situation, we have an excess of funding, we offer the potential to the existing departments that we limit the building risk, we know each other on commercialization, i.e. on the sale of apartments, because we have this experience. So I don't want to say at the moment how big this scale will be, but I don't want to limit myself. If today this market is, as you asked, how we assess it, we assess it, of course, very well, because the prices are high. Also, if there is a possibility of building the next projects, what we are counting on. So we are financially prepared on a large scale, but we want to do it in such a way that not to build a large organization as it was in the past.

And I think it's worth saying that we want to be very flexible. We want to be very flexible in our actions, so we will rather adapt to the situation that will be on the market and we are going in this direction. Rather, we are going in the direction of buying ready-made projects, i.e. places and districts that Marcik mentioned, which already have construction permits, because there the whole process is much faster.

There was also talk about the fact that the prospects are well drawn for the years 2025-2028 when it comes to construction and assembly production. Is there also a risk of the so-called failure of origin, as it happens in Poland?

I mean, we are always such a nation that there will always be companies that will complain. I will put it this way. We do not see such an obstacle for ourselves. Therefore, more and more of what we have told you, we carry out work with our own forces. We are building more and more teams when it comes to both equipment and staff potential. And we do not see such a risk when it comes to our group. Knowing life, there must have been such a situation that probably some companies that will win contracts without any potential will complain that this potential is missing somewhere. I do not have such, we do not see such fears.

I would just like to add that the difference between today and yesterday is that we have a valuation system that is used in our contracts, which has never been before. So, indeed, companies have taken large contracts, contracts did not have a valuation formula, the price of building materials went up and the costs of maintenance, so a big problem has been created. So today this problem is somehow mitigated by this valuation process. Of course, we encourage this limit not to exist, so that it is the same as in the land market, that these limits that it is not limited to 100% of the contract value.

But also maybe to add, because that's how we start to think that These contracts, we had such a gap in the proceedings, especially in the PLC, so here the 26th, 25th, 26th is rather not visible in this accumulation. When it comes to road contracts, yes, last year it was the historical value of the announced proceedings over 500 km, but we must bear in mind that 40 of these proceedings have not yet been resolved, so I think it will spread evenly across the entire market, and when it comes to the topic of general construction, I think inflation will still effectively block private investment, so I would not expect such a large accumulation in 2025-2026.

Marcin Wróblewski, Exito Broker. I have a question, as you mentioned during the presentation, about the certification that you had to go through to get approval in foreign markets. In Poland, there has been a discussion on this topic for many, many years. You are a participant in this discussion quite significantly. Could you comment on which direction it is heading, when we expect changes and whether we will expect them, or not, and what is your opinion on this certification working in the Polish construction market?

In fact, the certification, seeing, I think we probably looked two years ago, we have to hit each other in the chest, we did not know exactly this situation, how hard it is to get contracts outside of Poland, because we did not have this experience. Today, seeing, going outside of Poland, we see how the eastern countries defend their hand and how, however, favor or maybe they better assess local companies, or they do not take into account only prices. So we are trying to convince the orderers, and this will be our goal this year as a whole industry, because I am not talking only as Budimex, that seeing what is happening on the German, Czech or Latvian market, we would like to take care of it as a whole industry, to go very seriously to certification, to not only the price criterion was the condition of the choice of the performer, because Poland is, as we look at the scale of Europe, the largest construction site, but also the most open country for all companies. And this means that this openness has led to the fact that many companies that come here from markets, from various markets, really from Asian markets, do not quite know Polish regulations, but also does not know exactly the realities that are related to the implementation of these contracts. And I think that this certification or such a process that we are going through at the moment on the German-Czech market, this is the time when this company has the opportunity to verify and familiarize with these requirements that the orderer has, so it also improves the situation for the orderer, as well as for the performer, I would say to a certain extent, it reduces the scale of risk, because it gives such time for us to be able to implement. I will only say what is happening on the German market. On the German market, we obtained this certificate for two years. The cost of this certificate, Maciek, if you can tell me precisely.

Maybe the cost of the certificate itself is not so big, because you have to prove the procedure precisely. However, there is no way for the company to be allowed to be implemented without its own resources. So we had to invest in equipment, so it wasn't maybe a cost of mediocrity. And educating people with appropriate language skills, Summa summarum on such a start-up package, let's call it, we will spend almost PLN 6 million, not counting the equipment, right? And this certification, which the president was talking about, is to lead to a situation in which projects will be implemented by companies that have resources to implement this project here and now, right? Just like we have machines, we invest in a machine park, well, later we compete with a company that comes, there is nothing in Poland except, I don't know, a wheelbarrow, right? but it has references from some Asian markets and only the price decides somewhere, i.e. not what we have here, what competencies, history, quality that we guarantee the implementation, only this price. And this is problematic. And in fact, certification is widely understood with regard to the resources that the company has on a given market and dedicated to this market and to the implementation of these specific projects. Well, it can change the situation a bit here, which we will, as the boss said, take care of for sure.

In addition, it is worth emphasizing what it looks like on the German market. Our employees must be employed in our company, they must pass an exam that decides whether they know the German language. But what's interesting, we received this certificate in the middle of the year and for half a year we did not dare to submit any offer, because the moment we started this work and the applicant would say that we are not prepared for it, then of course the certificate is immediately returned to us. And so it shows some scale, what is the responsibility of this offer, that before we submit this offer, we really have to be very responsible and we have to rethink it. Because at the moment of starting work, without the appropriate equipment and human potential, this certificate will be immediately withdrawn. Thank you. I hope I answered the question.

Do we have any more questions from the room? If not at the moment, then maybe we will move on to questions asked online, because we are also available here. There are not many of these questions at the moment. The first of them is the following. In the fourth quarter of last year, Budimec reported a high turnover on sales. How much is it to be retained in 2024? and whether it can be treated as a reference. In the last quarter of last year, were there any significant contractual comparisons with the General Directorate of National Trades and Autostrad, which raised the margin?

The fourth quarter is never representative of a construction company. It can be very good, it can be very bad, but of course in this case the fourth quarter was good. It is not true that we had a few annexes signed in the General Directorate, annexing as part of the valuation formula from 10 to 15% and a few other annexes, which caused the profitability of the fourth quarter to be good, but the fourth quarter may be different. because it is very dependent on the atmospheric conditions, so how we do it has an impact on sales, it has an impact on profitability, so let's never look at the fourth quarter as a quarter that may be a continuation or not a continuation of the next year, so let's look at the profitability of 2023 and it should be some starting point for what we want to achieve in 2024.

Thank you. Another question concerning the value of contracts from foreign markets. The request is for clarification, i.e. PLN 8 billion in foreign markets. Does it contain in these PLN 13 billion of the portfolio of contracts in the waiting room? Is Rail Baltica in these PLN 8 billion? What is the value of the Lodewski contract here?

We showed it in the presentation, the contract for Lotte is 4.8 billion zlotys.

Thank you. Another question about the costs of general management. General management costs in the fourth quarter have grown at the level of sales dynamics. It would be better to expect the effect of an operational lever with such a large sales growth. what is the effect of foreign expansion here, and what is the effect of inflationary pressure, remuneration, etc.

So, of course, the effect of the leverage should not be that the costs of the General Administration in 2024 should be under control. However, there is an effect of inflation. There is, of course, our entry into new markets, both in Poland and abroad, i.e. we pay additional costs of the general government, which are associated with building an organization in the Czech Republic and Slovakia on the German market, but also in all these other companies that are in the initial phase, such as Mobility, we also have to invest in people who will carry out a development project. So it all affects the cost of our general administration. I do not have information at the moment, so that I can tell you in an easy way how much of it is expansion, how much of it is the national line. We do not have such data at the moment with us. However, answering this question, it all has an impact with inflation pressure and the increase in salaries, but also the cost of maintaining practically everything that is related to inflation. So I don't know if I answered the question, because the question was also very general and the answer is also general.

Thank you very much. Another question asked online about FB Service. What is the portfolio of FB Service Group contracts for the year 2024 compared to last year? Looking at the value and division, if there are any significant changes year to year, what do they result from?

First of all, I think it is very clear here that the concept of a portfolio of contracts for the industry in which we work, for the business sector, is a bit different from the definition that depends on the development segment, because, for example, when it comes to business services, part of our capital generated during the year is the remaining waste that we take over to our departments, which we have two locations, and this does not happen as some portfolio that is It is 100% predictable, we are monitoring it during the year. But when it comes to the portfolio that is easier to monitor, at the moment we expect that we will have such a portfolio at the end of the year 2020, which will amount to 800 million zlotys. And it gives us a rather comfortable situation when it comes to the 24th year. because, for example, the two largest contracts that we had for the management of waste in two or three cities in Poland, we have already received information for the first two months of the year 2020 that they will be overdue for the next six months. So now we have a rather dangerous situation and we are convinced that we will have our installations are saturated at a very high level, almost comparable to what we achieved last year.

Thank you very much. In the meantime, any questions from the room? New ones have appeared. I don't see. Okay, then let's move on to the questions that were submitted to us earlier from the market. The question that came to us is as follows. From the press release after the results, it turns out that Budimex is setting a stable margin in the next two or three years. What are the main chances of an upside for such a scenario? Is there a chance of a higher margin in 2024? The first half of last year was quite low in this regard.

What Marcin said, you should look and look all year, not taking into account individual quarters, because in the construction industry, however, this is very important due to the weather conditions. When it comes to the entire margin and the improvement of the margin, or also upside, then of course we can say that the contracts that have been signed at the turn of the last two years are all healthy contracts, as you remember. After the outbreak of the war in Ukraine, we did not sign contracts worth over PLN 3 billion. We think it was a very good decision. Today our portfolio is very healthy. Will we improve this margin? I can't answer, because of course the situation, as we know, is always very dynamic. Old problems disappear, but new challenges always appear. So our goal will definitely be to maintain this margin level, which is really high, because the 8% EBITDA that we showed, I think it's a pretty good margin. This will be our main goal, but of course we will be very keen on improving the margin.

Thank you very much. Another question from those sent to us earlier. What was the value of the impact of events that can be defined as one-offs on revenues and gross profit from sales?

I mean, in a construction company, it is difficult to define what a one-off is, because we have to start with the definition. Whether the case won in court with the client, and we have a lot of these cases, is one-off, or whether we are just always winning something in some case. But looking at it seriously, it seems to me that, from the point of view of the whole, if we look at the result, I do not see such a one-off, which would be something spectacular only and exclusively for this year. i.e. we had to get predetermined ownership from customers, we also established reserves, we signed annexes related to valuation, but it is part of the business, it is not a one-off. But it depends on this definition, we can decide. I believe that such a one-off event was not. However, one thing is worth mentioning, which concerns this year, and as for income from next year, we have a very good result in the remaining operational activity on the valuation of forward, which de facto concerns sales in the coming years, and this is about thirty-odd million zlotys. This is the valuation of the contract related to the implementation of contracts for the construction of the DTC port. So, in my definition, which I define as a construction company, there were no such events.

Thank you very much. Another question concerns foreign markets. What is the level of income from foreign markets in 2024 and 2025? Does the margin of this area, understood as gross from sales, may range from the Polish market when it comes to dynamics up and down in this period.

Mr. Czarek? Ladies and gentlemen, it should be added that Contracts that we have on wholesale markets are newly signed contracts, so let's not expect that in 2024 there will be large revenues. They are estimated today at a level between 150 and 200 million zlotys, while the year 2025 should already be at the level of 300-350 million zlotys, if we are talking about revenues. If we are talking about gross margin and its correlation to the Polish market, then since it is an organizing market, then indeed this impact is correlated, perhaps this gross margin is lower than comparable to the Polish market.

Thank you very much. Another question about renewable energy sources. The question is very short. What is the pipeline of projects to be completed and started this year in megawatts?

In megawatts, we will complete projects with a value of about 17 megawatts, because that's what I'm counting in my head, and we will probably start projects with a power of about 70 megawatts.

Specifically at this point. Okay, thank you very much. Another question, also sent here by analysts and investors. What should be the main engine for maintaining the march on a high last year level in the coming years? Last year, the annexes signed with the General Directorate helped a lot at the end of the year, and what will be the main support for the march this year and next year?

I mean, it should be emphasized that each of our divisions has a positive margin, so there is no such engine here that is actually some kind of a lever in our whole company. As I said, actually, each contract should be considered individually and at the scale that we are implementing, there are 220 contracts. There are contracts on a larger margin, there are contracts on a smaller margin, but what is important is that we do not have any contracts that burden our implementation somewhere, so they are all on positive margins.

Thank you very much. In the meantime, any expectations or requests for questions from the guests who appeared directly with us. Sometimes questions ask for more questions. If not, we encourage you, and I will read another question from the list. Looking at the current level of order portfolios and contracts in the post office, what income growth is Budimex expecting this year? What part of the current order portfolio is to be implemented this year?

This year we estimate that our revenues will reach a very similar level to the previous year. They may probably be a little lower and a lot will be dependent on decisions and administrative permits. Due to the fact that many of the contracts that we currently have in our portfolio are self-contracts of the are in the design phase and the situation related to the elections does not help us here, so many of the implementations have already been planned that we will start them and we will implement them, and they are still waiting for permission from RID, so we have the opportunity to start, so this question is very difficult and difficult for me to specify exactly at the beginning of the year and tell you what the exact results will be when it comes to sales. As I mentioned to you, year to year in recent years we have increased between 5 and 7%. We would like to continue this strategy, so year to year to grow. However, it will be an exceptional year when it comes to such a situation. We also see that these administrative permissions are quite important for our production.

Thank you very much. The last question we have here in the queue and such a question can be said and the answer summarizes the request for evaluation of the market and prospects for this year, both when it comes to the competitive environment and the efficiency on the part of the main customers in the area of ​​designation and decision-making, especially in the context of the last changes in the government administration. and the impact of the EU funds on the market.

I would like to focus on our company, as you will allow. We have very good prospects. Thanks to the analysis we conduct and the strategy we have chosen, you can see that our portfolio is on a historical level. We expect by the end of the year that we will achieve a contract at a level of over 15 billion, which was our, which will be a huge success and it was our goal. So we are evaluating this year very well and we have no fear when it comes to the next two years. So short-term and long-term I assess it very positively. If I look, if we look at the entire industry, I think it will be a very difficult year for the construction industry. In the previous year, as we said, it can be estimated that there was a much lower number of bids due to inflation and lack of funds from the KPO. This year is not at all easier due to the fact that we still see that audits are carried out, so there are far fewer bids. If we look at these key applicants, the general directorate, at the turn of the first three months, no tender proceedings were announced. And as my colleague Czarek said here, at the moment, the general directorate's announcements are 215 km in tender proceedings versus 500 last year. from which, as far as I remember, 90 km are the roads of fast traffic, the remaining part is the waterways, so this portfolio will be smaller, when it comes to the number of bids will be smaller than in the previous year. We hope that the process of bids in PKP.pl will accelerate significantly, and here we have a lot of room. And on the other hand, when it comes to general construction, we expect, however, a smaller number of market progress further due to inflation and we know that the KPO funds will certainly help in this phase of implementation, but still the whole process of progress, i.e. the beginning of the procedure plus the closure of the contract signing, we must be aware that it is at least half a year, so I expect that this year it will be a very large and aggressive competition or price war of construction companies on the Polish market, in which we do not want to participate, so the situation will probably not be easy in the short term.

Thank you very much. We have drawn up a list of questions asked earlier, so I hand over the floor to the president to summarize.

Szanowni Państwo, bardzo dziękujemy jeszcze raz, ogromnie dziękuję. Przepraszam, że tak długo nam zajęło, dwie godziny, ale podsumowanie roku to bardzo dużo pozytywnych informacji. Zapraszam wszystkich serdecznie na przerwę i na lunch. I oczywiście jesteśmy wszyscy, całym Zarządem, do Państwa dyspozycji. Jeżeli ktoś chciałby z nami porozmawiać i poruszyć jakiś temat, to oczywiście jesteśmy do Państwa dyspozycji. Bardzo dziękuję jeszcze raz. Dziękujemy.

Ladies and gentlemen, we invite you to lunch on the first floor, on the first floor, so we cordially invite you, this floor is under us.