Operating Segments

As at 31 December 2016, the Group conducted business in the following two operating segments:

• construction business,
• development activities and property management.

Construction business covers the rendering of broadly understood construction and assembly services at home and abroad and is carried out by the following Group companies:

• Budimex SA,
• Mostostal Kraków SA,
• Budimex Bau GmbH,
• Budimex Budownictwo Sp. z o.o.,
• Budimex Kolejnictwo SA.

Development and property management services comprise preparation of land for investment, execution of investment projects in the field of residential building, sale of apartments and rental and management of property on own account. Included in this operating segment are the following Group companies:

• Budimex Nieruchomości Sp. z o.o.
• SPV-BN 1 Sp. z o.o.
• Poznańskie Przedsiębiorstwo Inwestycyjne Sp. z o.o. (until the merger with Budimex Nieruchomości Sp. z o.o. on 14 April 2016)
• Przedsiębiorstwo Budownictwa Mieszkaniowego Nadolnik Sp. z o.o. (until merging with Budimex Nieruchomości Sp. z o.o. on 27 May 2015)
• Budimex SA in the part relating to the development business, as a result of a merger with Budimex Inwestycje Sp. z o.o. on 13 August 2009.

As at 31 December 2016, the Parent Company operated the following branches:

•  General Construction North Branch in Poznań, ul. Wołowska 92A,
•  General Construction South Branch in Kraków, ul. Ujastek 7,
•  General Construction East Branch in Warsaw, ul. Stawki 40,
•  Infrastructure North Branch in Warsaw, ul. Stawki 40,
•  Infrastructure South Branch in Kraków, ul. Ujastek 7,
•  Infrastructure West Branch in Wrocław, ul. Mokronoska 2,
•  Industrial and Railway Branch in Warsaw, ul. Stawki 40,
•  Equipment Services Branch in Pruszków, ul. Przejazdowa 24,
•  Branch in Rzeszów, ul. Słowackiego 24,
•  Branch in Poznań, ul. Wołowska 92A,
•  Budimex SA Zweigniederlassung Köln, Pferdmengesstr. 5, Cologne.

Other Group companies conducted activities abroad through the following branch offices:

• Branch in Germany of Mostostal Kraków SA,
• Tax Representative Office in Estonia (Narva) of Mostostal Kraków SA.