Letter from the President of the Board


Dear All,

I have once again the pleasure to present you the Integrated Annual Report of the Budimex Group, which shows the Group's financial results and issues concerning the impact of our business on the social and natural environment.

The year 2018 was special for our company as we celebrated our 50th birthday. Simultaneously,it was a very difficult one, both for us and for the whole construction industry. The high rise in the prices of raw materials reduced the margins of large construction companies to almost zero levels. Nevertheless, in comparison to the results of the whole construction industry, the results of the Budimex Group are optimal and ensure stable development in the following years. We also assess our portfolio of contracts, initiated last year by our group,as stable and guaranteeing profit for the shareholders.

The Budimex Group ended the year 2018 with a 16% increase in revenue to the level of PLN 7 billion 300 million and a net profit of PLN 305 million. The portfolio of orders of the Budimex Group remained at PLN 10.1 billion. Moreover, in 2018 we carried out many business activities, which ordered and strengthened the Group. We completed the sale of 99.8% shares in Elektromontaż-Poznań. Budimex S.A. sold its package of 99% of shares in Biuro Inwestycji "Grunwald" S.A. under the terms of a second agreement. We also acquired an investor for 49% of shares in Budimex Parking Wrocław. We began negotiations regarding the purchase of a controlling share in FBSerwis. The net cash position of the Budimex Group amounted to PLN 1 billion 145 million at the end of 2018.

We are aware that in every business people are the most valuable. Consequently, in 2018, our human resources policy was implemented based on the same solid foundations that have been guiding us for years: investing in human capital and respecting work ethics and safety principles. We have developed "own resources" of construction workers out of concern for the effective fulfilment of our obligations towards investors. We intend to continue the increase in employment and sustainable staff development.

We are a company with a 50-year tradition, valued for its experience, reliability, solidity and high quality of provided services. We also know that what we do has long-term consequences for society and the natural environment. That is why we have been invariably committed to the principles of sustainable development and responsible business for many years, constantly developing our activities for the benefit of local communities. We continue our flagship social projects, such as “Parent Zone”, “ICE Entryphone” and an in-house corporate volunteering programme for our employees, “Grant for Volunteering”. Furthermore, we supported over 100 foundations operating for development and aid in less developed regions. In addition, to celebrate our 50th anniversary, we initiated a special jubilee programme, “Change the World. 50 years of Budimex”. As part of it, an innovative forest primary school “Puszczyk” was established near Białystok.

In 2018, Budimex Group was awarded valuable prizes, including: Construction of the Year 2017, We Change Polish Industry, Build Safely, New Impulse for Innovations, and The Most Attractive Employers. Since 2011, we have unceasingly been included in the prestigious group of companies listed in the RESPECT Index – an index of companies that are managed in a responsible and sustainable manner.

I would like to thank our investors and employees of the Budimex Group for their commitment to the development of our company and all stakeholders for a long-term cooperation based on mutual trust.

I invite to you to read the Integrated Annual Report of the Budimex Group for 2018.

Dariusz Blocher
President of the Management Board, Budimex SA