Letter from the president

Dear All,

I am pleased to provide you with the Integrated Annual Report of the Budimex Group for 2019, which summarised our financial results and social responsibility activities.

2019 was a challenging time for the Budimex Group. We focused on improving the profitability of contracts. We put a lot of effort into working on less profitable contracts, striving to generate positive margins. We focused also on improving cash flow and acquiring new orders from investors. We started the year with less positive assumptions, but in the end we achieved better than expected results.

The Budimex Group ended 2019 with a revenue of PLN 7.57 billion, which was slightly higher than in 2018, partly due to the commencement of consolidation of the FBSerwis Group results in the second half of the year. We generated a net profit of PLN 226 million, which translates into profitability of 3%. At the end of December, the net cash level of the Budimex Group was PLN 1.355 million, an increase by more than PLN 200 million as compared to the previous year, despite the expenditure on the purchase of additional shares in FBSerwis and the payment of dividends.

We are aware that behind every success of the company there are people, so we do our best to ensure that work in the Budimex Group is satisfactory and gives development opportunities. As in previous years, we have built an engaging work environment on two pillars: investing in the development of employees and ensuring their safety in the workplace.

As a company with over 50 years of tradition, valued for its experience, reliability and trustworthiness, we know that the only right course of action is that based on the principles of sustainable development. Due to the specificity of our business, everything we do has long-term consequences for the environment and society. Therefore, we place great emphasis on limiting the impact on the natural environment and climate change, as well as effective management of natural resources. We also constantly develop activities for local communities.

Our flagship social programs last year: Programs Parent’s Zone and Hello ICE reached over 55.000 children. We carried out eight volunteer projects participated by 75 Budimex volunteers. We planted 200 trees as part of the “Tree for Survey” action. We took part in #ideathon together with other companies – an innovative project of competence volunteering, whose aim was to develop solutions leading to the improvement of the situation of disabled people in the labour market. We also supported several dozen organisations working for development and aid in less developed regions.

In 2019, we were awarded many prestigious awards, including: Benefactor of the Year, Well-Seen Company, Best Quality Employer, HR Pearls, Top Brand Press, Company of the Year, Contractor of the Year and Infrastructure and Construction Diamond. We are the employer of choice for students and graduates, as shown by the Universum Global ranking in the “Engineering” category.

I would like to thank our Employees for their involvement in the work and development of the Budimex Group, as well as our Stakeholders and Investors for their long-term cooperation based on mutual respect and trust.

Dariusz Blocher
President of the Management Board of Budimex SA