Development Perspectives

Budimex Group development perspectives in the forthcoming year

Next year the Budimex Group will continue to operate in all major sectors of the construction market in Poland, as well as on the German market.

Restrictions on infrastructural projects (in particular road projects) require that the Budimex Group diversify its business in order to maintain the scale of operations on a comparable level. Entering the market of municipal services is also contemplated, as well as engaging in new projects on the basis of public-private partnerships. The Group plans to compensate for the expected decrease in the value of road investments with new contracts secured in the power and hydraulic engineering construction segment.

In 2012, as part of carrying out a business diversification strategy, a six-year contract was secured for comprehensive maintenance of the A1 highway with a value of more than PLN 40 million and for the development of a car park in Wrocław as part of public-private partnership (PPP) with a total value of PLN 43 million. Another success was the conclusion of a contract for the development of a waste incineration plant in Białystok with a value of more than PLN 167 million.

In 2012, the Budimex Group companies signed construction contracts for a total value of PLN 2,803 million (without annexes). The value of the order portfolio of the Budimex Group as at 31 December 2012 amounted to PLN 4,877 million and was 43.1% lower in comparison with the end of 2011.

The structure of the order portfolio as at 31 December 2012 is as follows:

Evaluation of investment project feasibility

In 2012, the Budimex Group plans to incur capital expenditure of approx. PLN 19 million. The outlays will be made mainly on construction machines and IT solutions.

Capital expenditure will be financed from own funds and from external sources of finance.