The business model and its implementation involves business risks that have been defined for each of the six capitals. Risk management, depending on the area concerned, is strictly defined in the policies applicable in the Budimex Group. The policies that are directly related to risk management include: "Integrated Management System Policy" and "Risk Management Control Policy".
GRI:
The business model of the Budimex Group was designed for the purposes of reliable integrated reporting and is intended to present results within six capitals: financial, human, organisational, intellectual, social and natural. No significant changes occurred in the reported period in the Budimex Group's business model.
Financial capital
THE BUSINESS MODEL OF THE BUDIMEX GROUP AND ITS IMPACT ON RESULTS IN THE FINANCIAL, SOCIAL AND ENVIRONMENTAL AREA:
The capital from which we finance our business – funds provided to us by shareholders, lenders and loaners, as well as funds that we earn while creating profits – care about multiplication of entrusted capital and reliability in communication of the actual status of the Budimex Group and its activity
- Total assets: PLN 5,456,351 thousand
- Equity: PLN 750,477 thousand
- Long-term liabilities PLN 788,821 thousand
- Short-term liabilities PLN 3,917,053 thousand
- Sales revenues: PLN 7,387,137 thousand
- Net profit: PLN 305,424 thousand
RISKS IN THE BUDIMEX GROUP:
We finance activities, thanks to which the road and railway infrastructure, as well as public utility facilities are created. We purchase required resourcesand materials. We timely and reliably pay our liabilities to our business partners, and thus we provide them with financial liquidity
- Foreign exchange risk
- Price risk
- Credit risk
- Liquidity risk
Human capital
THE BUSINESS MODEL OF THE BUDIMEX GROUP AND ITS IMPACT ON RESULTS IN THE FINANCIAL, SOCIAL AND ENVIRONMENTAL AREA:
A versatile team of experienced engineers and other specialists involved in creating permanent value – care about safety and health of persons involved in works performed, their development and future
- Number of employees (in all capital group’s companies consolidated in the financial reporting): 6,873
RISKS IN THE BUDIMEX GROUP:
We ensure fair working conditions for our employees and external subcontractors. We support our staff in development. We engage future engineers in the Budimex Academy and our internship and apprenticeship programme.
- Risk of increase in employment costs, risk of lack of a sufficient number of qualified employees
Organisational capital
THE BUSINESS MODEL OF THE BUDIMEX GROUP AND ITS IMPACT ON RESULTS IN THE FINANCIAL, SOCIAL AND ENVIRONMENTAL AREA:
The unique organisational structure, continuously improving operational processes, which allow to act effectively and efficiently, while eliminating technical issues at the same time.
- Tangible fixed assets: PLN 258,123 thousand
- Flexible and effective business model based on the network of 17,229 business partners
- 1,163 pre-qualified subcontractors
- 5,329 completed final assessments
- 361 identified irregularities
RYZYKA W GRUPIE BUDIMEX:
We provide safe workplaces for our employees and contractors.
- Risk of delay in timely performance or insufficient quality of the subcontractors' work
- Risk of delay in obtaining relevant administrative decisions
Intellectual capital
THE BUSINESS MODEL OF THE BUDIMEX GROUP AND ITS IMPACT ON RESULTS IN THE FINANCIAL, SOCIAL AND ENVIRONMENTAL AREA:
Intangible assets, i.e. expertise and solutions produced for years, results of research and development, as well as effects of laboratory tests
- Intangible assets: PLN 28,389 thousands
- Increasing quality performance indicator QC
- Network of 24 laboratories
RISKS IN THE BUDIMEX GROUP:
We develop optimal and effective solutions to ensure safety of our customers and natural environment.
- Risk of change in the scope of works or technologies agreed in agreements
Social capital
THE BUSINESS MODEL OF THE BUDIMEX GROUP AND ITS IMPACT ON RESULTS IN THE FINANCIAL, SOCIAL AND ENVIRONMENTAL AREA:
An ability to build relationships with the broadly-understood environment, including building long-term relationships with suppliers and subcontractors, being a good neighbour for local communities, cooperating with other players, including concentration on common problems for the industry (e.g. within the framework of the “Agreement for Safety in Construction”)
- Taxes and social insurance premiums (ZUS) paid PLN 1095 million
- PLN 1,890 thousand of donations paid for social purposes
- Eliminating social and environmental conflicts – 5 satisfaction surveys for residents in the vicinity of the investment
- Author’s social programmes ICE Card, Parent Zone and other supported social actions
- Cooperation and solutions developed within the framework of the “Agreement for Safety in Construction”
RISKS IN THE BUDIMEX GROUP:
By getting involved in the construction of public and infrastructural facilities, we contribute to the improvement of the social and economic life quality
- Risk of delay in obtaining relevant administrative decisions
Natural capital
THE BUSINESS MODEL OF THE BUDIMEX GROUP AND ITS IMPACT ON RESULTS IN THE FINANCIAL, SOCIAL AND ENVIRONMENTAL AREA:
Direct and indirect environmental impact Respect for used but limited natural resources and care for valuable natural areas in the vicinity of investments implemented by the Budimex Group – their protection and compensating for all environmental losses
- Lack of environmental emergencies
- Optimisation of the consumption of raw materials, materials, energy carriers and emissions
- Recovery of secondary raw materials from waste – in the last year 1,818.44 tonnes of metal, over 274.22 tonnes of plastic, 75.09 tonnes of paper and cardboard
- 1,706.51 tonnes of excess soil and dirt was reused
- Use of raw materials from waste generated by other industries (e.g. mining, steelworks, power engineering) – in the last year almost 6.03 thousand tonnes
RISKS IN THE BUDIMEX GROUP:
We protect the most precious natural areas through adequate planning and protection of construction sites. We monitor our environmental impact and respond to any alarm signals
- Risk of delay in obtaining relevant administrative decisions
- Risk of adverse weather or soil conditions