Sustainable Development Goal on page:
Capitals
The capital used by the Budimex Group to finance its activities consists of funds entrusted to it by shareholders, borrowers and lenders, as well as funds it generates by creating profit.
The Group conducts activities thanks to which the road and railway infrastructure and public utility facilities are built. It purchases the necessary raw materials and materials, settles its obligations towards business partners in a timely and reliable manner, and thus ensures their financial liquidity.
Capital management in 2021:
- Sales growth in the construction segment in the second half of 2021 (by more than 2% compared to the same period of 2020).
- Significant increase in revenue from the services segment (up 27% compared to 2020).
- Achieving a gross sales margin of 10,5% (vs. 9,1% in 2020). In the conditions of dynamic increase of material prices, the Budimex Group maintained the originally assumed contract margin on most projects.
- Sale of the real estate development activity segment – net profit resulting from the settlement of the sale transaction of Budimex Nieruchomości Sp. z o.o. in the amount of PLN 487.5 million.
- Maintaining cost discipline with a combined SG&A ratio of 3.5%.
- Withdrawal of a dividend from the profit for 2020 and an interim dividend from the profit for the first half of 2021 in the amount of PLN 806.8 million.
- Effective financial management – a net cash position of PLN 2.5 billion at the end of 2021.
Results
| MEASURE | 31.12.2020 | 31.12.2021 | CHANGE |
| Equity capital PLN million | 1,187.3 | 1,361.0 | 14.6% |
| Long-term liabilities in PLN million | 1.1397 | 1,023.8 | -10.2% |
| Short-term liabilities in PLN million | 5,135.2 | 4,478.5 | -12.8% |
| Annual sales revenues in million PLN | 7,709.1 | 7,911.2 | 2.6% |
| Annual net profit in million PLN | 471.4 | 986.5 | 109.3% |
Human capital
The Budimex Group is formed by a diverse team of experienced engineers and other employees of other professions, committed to building its sustainable value.
The Group ensures fair working conditions for its employees and contractors. It supports its employees in skill development. It conducts a number of activities aimed at future engineers, e.g. under the Budimex Academy, internship and apprenticeship programmes. The basic value of its activity is concern for safety and health of all employees. The activities aimed at the improvement of safety on construction sites involve co-workers, contractors, consortium members, suppliers, as well as individual persons participating in the investment implementation.
Capital management in 2021:
- Development of the Human Resources Information System (HRIS).
- Continuation of programmes aimed at developing leadership and interdisciplinary skills.
- New development and training projects, such as: Grow Infinitely, Career Compass.
- Organisation of the Safety Week as well as remote safety training and webinars as part of the Young Engineer Academy and the Contract Manager Academy.
- On-line training for COVID-19 prevention.
- Implementation of employee engagement surveys.
- Update of the General Diversity Policy and adoption of the Board Diversity Policy.
- Active participation in the Agreement for Safety in Construction.
Results
| MEASURE | 2020 | 2021 | CHANGE |
| Number of employees (at the end of the year) in persons | 7.273 | 6.939 | -4.6% |
| Percentage of employees hired for and undetermined time | 62.5 | 65.8 | +3.3 p.p. |
| Turnover indicator in % | 2.8 | 4.7 | +1.9 p.p. |
| Ratio of basic salary of women to men in % | No data available | 83.7 | X |
| Accident frequency rate (accidents at work per 1 000 employees) in units | 18.4 | 16.2 | -2.2 |
Organisational capital
The organisational capital of the Budimex Group is its unique structure, which makes it possible to gather complementary skills, thus offering a wild range of services.
Budimex Group provides a safe workplace for both its employees and contractors, and has a modern stock of machinery and equipment necessary for the completion of contracts.
Capital management in 2021:
- Use of an Integrated Management System consisting of certified quality, occupational health and safety and environmental management systems.
- Work on modifying and updating the Strategy in ESG areas (to be continued in 2022).
- Reduction in the value of property, plant and equipment as a result of the sale of Budimex Nieruchomości Sp. z o.o.
- More than 93% of the Group’s capital expenditure in 2021 in line with the EU Taxonomy of environmentally sustainable activities.
Results
| MEASURE | 2020 | 2021 | CHANGE |
| Value of property, plant and equipment in PLN million | 548.8 | 538.6 | -1.9% |
| Acquisition of intangible and tangible fixed assets in PLN million | 61.3 | 104.5 | 70.6% |
| Number of subcontractors initially assessed | 820 | 722 | -11.9% |
Intellectual capital
The Intellectual capital consists of unique technical solutions developed over the years as a result of research and development of work. It also includes the knowledge and skills of the Budimex Group’s employees who create effective solutions allowing to ensure, among others, the safety of the Group’s undertakings’ recipients and the natural environment.
Capital management in 2021:
- Increase the company’s innovation potential by working with startups.
- Identifaction of innovations through the R&D Tax Credit mechanism.
- Operation of the Innovation Zone, a platform for employees to submit, evaluate and implement ideas for improvement and innovation.
- Possession of 27 laboratory units for ongoing quality control of works and construction products at all stages of the project.
Results
| MEASURE | 2020 | 2021 | CHANGE |
| Intangible assets in PLN million (as of the end of 2021) | 162 | 150.6 | -7.1% |
| Average number of training hours per employee | 8.2 | 15.2 | 85.4% |
| Number of employees involved in innovation projects | 177 | 223 | 20% |
| Quality Conformance indicator | 96.1% | 94.9% | -1,2 p.p. |
Social capital
In the Budimex Group’s understanding, social capital is the ability to build relations with its environment, i.e. with e.g. suppliers, subcontractors and local communities, which it supports e.g. through employee volunteering, sponsorship and donations.
Capital management in 2021:
- Conducting public consultations during the design phase to reduce the risk of social conflicts arising in connection with carrying out an investment.
- Compensation to local communities for inconvenience caused during the execution of contracts.
- Working with other companies, including competitors, to solve common industry problems.
- Development of original social programmes: Parent Zone. Budimex for Children and Hello ICE.
- Running the Grant for Volunteering programme and employee volunteering programme.
- Support for the implementation of educational, social and cultural projects: Discoverers of Diamonds, Slice of Bread Foundation, Great Orchestra of Christmas Aid).
Results
| MEASURE | 2020 | 2021 | CHANGE |
| Number of environmental conflicts that would halt construction work | 0 | 0 | 0% |
| Income tax charged from the budget in PLN thousand | 113.363 | 88.55 | -21.9% |
| Value of donations in PLN thousand | 4.094 | 1.889 | -58.9% |
| Number of Grant for Volunteering share units | 14 | 11 | - 3 units |
Natural capital
For the Budimex Group natural capital is its influence (directly and indirectly) on the environment. The Group aims at reducing its impact on the environment (including climate), increasing the effectiveness of natural resources management and applies the principles of ecological responsibility in the supply chain. It protects the most valuable natural areas by properly planning and securing construction sites. It continuously monitors its impact on the environment, responding to any signals of potential threats.
Capital management in 2021:
- Identification and further analysis of climate change risks, according to AXIS methodology (risk categorisation according to Task Force on Climate-Related Disclosure guidelines and on definitions from ISO 3100)
- Recovery of secondary raw materials, land and soil.
- Implementation of the VE (value engineering) process at Budimex SA, allowing for optimisation of material consumption and reduction of the amount of waste produced.
- Distribution of information within the organisation on responsible purchasing.
- Subjecting all subcontractors to an initial qualification of complying with environment protection rules.
- Successive increase of the proportion of electric and hybrid vehicles in the vehicle fleet.
Results
| Measure | 2020 | 2021 | Change |
| Total electricity consumption in MWh per 1 million PLN of sales revenue | 3.58 | 3.01 | -15.9% |
| Share of energy from renewable sources in total electricity consumption in % | 16 | 29.7 | +13.7 p.p. |
| Scope 1+2 marked GHG emissions in MgCO2e per PLN 1 million of sales revenue | 14.25 | 10.67 | -25.1% |
| Total water consumption in m3 per 1 million PLN of sales revenue | 25.88 | 18.4 | -28.9% |