Characteristics of the basic economic and financial figures of the Budimex Group

Consolidated statement of financial position of the Budimex Group

The main items of the consolidated financial statement of the Budimex Group, as of 31 December 2019, in comparison with the status valid as of 31 December 2018:

As of 31 December 2019, the consolidated value of assets increased by PLN 1,217,608 thousand in relation to the status as of the end of December 2018, as a result of the increase in the value of fixed assets by 45.1% (PLN 445,901 thousand) and increase in the value of current assets by 17.3% (PLN 771,707 thousand).

Non-current (long-term) assets:

The following factors caused the change in the value of fixed assets as of 31 December 2019 in comparison with the value as of 31 December 2018:

• increase in balance of tangible assets by PLN 254,798 thousand mainly due to the purchase and financial lase of fixed assets worth PLN 133,879 thousand, In turn, depreciation decreased the balance of tangible fixed assets by PLN 94,216 thousand. The tangible fixed assets worth PLN 16,317 thousand gross were sold,
• increase in the balance of intangible assets by PLN 140,433 thousand, as a result of taking the control over the company FBSerwis and its subsidiaries,
• increase in the balance of long-term deposits under construction contracts, retained by the recipients of the Group’s companies by PLN 10,109 thousand, mainly as a result of higher sales,
• increase in the balance of deferred income tax assets by PLN 57,038 thousand, as a result of an increase in the balance of negative temporary differences on the position on the part of liabilities.

Current (short-term) assets:

At the same time, current assets increased by PLN 771,707 thousand, which was mainly the result of an increase in the balance of inventories by PLN 401,943 thousand, as a result of taking over the FBSerwis company and its subsidiaries and in connection with the development activity (e.g. the purchase of new plots for the construction of apartments) and the increased state of materials accumulated on railway contracts.

Other significant changes in current assets concerned:

• increase in the balance of other financial assets by PLN 116,483 thousand, mainly involving the purchase of corporate bonds issued by Polish banks with a value of PLN 119,588 thousand,
• increase in the balance of trade and other receivables by PLN 276,857 thousand;
• decrease in the balance of receivables from current income tax by PLN 32,994 thousand and a decrease in the balance of valuation of construction contracts by PLN 117,529 thousand.

Equity and liabilities:

On the equity and liabilities side, changes referred to:

• decrease of “retained earnings” as a result of dividend payment,
• increase in long-term liabilities by PLN 260,571 thousand, primarily due to:
• increase in liabilities due to long-term loans, borrowings and other external sources of financing by PLN 89,148 thousand (new financial lease liabilities), and
• increase in the balance of liabilities due to provisions for long-term liabilities by PLN 131,116 thousand, mainly as a result of an increase in the balance of provisions for guarantee repairs.
• increase in the value of short-term liabilities by PLN 870,874 thousand, where the main changes referred to:
• increase in the valuation of construction contracts in the amount of PLN 376,265 thousand, mainly due to greater involvement of investors in current financing of construction projects in comparison with the previous year,
• increase in the balance of provisions for contract losses in the amount of PLN 82,642 thousand,
• increase in the balance of deferred income by PLN 360,086 thousand, mainly due to receiving advance payments for implemented construction contracts,
• and an increase in the balance of loans, borrowings and other external sources of finance by PLN 122,285 thousand.