Capitals

The capital from which the Budimex Group finances its business is the funds entrusted to it by shareholders and lenders, as well as the funds that it generates by creating profits.

The Group conducts activities resulting in the construction of road and railway infrastructure as well as public utility facilities, and it also deals with waste management. It purchases the necessary raw materials and materials, settles its obligations to its business partners in a timely and reliable manner, and therefore ensures their financial liquidity.

Capital management in 2022:

• An increase in sales for the construction segment in 2022 by 7.1% compared to the previous year
• Obtaining a gross margin on sales of 9.6% (compared to 8.6% in 2021). Under the conditions of a dynamic increase in the prices of materials, the Budimex Group has maintained the originally assumed contract margin on most projects.
• Maintaining cost discipline – total cost of sales and general administrative expenses ratio are at the level of 3.6%.
• A net profit of PLN 548.1 million compared to PLN 575.5 million for the previous year’s net profit, excluding the result from the sale of Budimex Nieruchomości Sp. z o. o.
• Payment of dividend from profit for 2021 of PLN 599.2 million.
• Effective financial management – at the end of 2022, the net cash position was PLN 3.2 billion, nearly 20% more than a year ago.

The Budimex Group is made up of experienced engineers and other professionals involved in creating sustainable value.

The Group ensures fair working conditions for its employees and counterparties. It supports its workers in the development of their competences. It conducts a number of activities for future engineers, such as under the Budimex Academy, internship and apprenticeship programmes. The core value of its activities is concern for the health and safety of all employees. Therefore, the operations for the sake of safety improvement on construction sites include everyone: employees, contractors, consortium members, suppliers and individuals involved in the project implementation.

Capital management in 2022:

• The functioning of the occupational health and safety management system is compliant with ISO 45001,
• Creation of the Observation Programme and adaptation and updating of the Accident Procedure as part of the work of the OHS Executive Committee
• Organisation of the Safety Week and the Safety under construction programme
• Development activities carried out for employees: Academy of the Contract Engineer, Academy of the Young Engineer, Academy of the Engineer and Academy of the Contract Manager
• Organisation and implementation of the Super Leader, Managerial Stairs, Ironclad Success and Keep Growing development programmes.

The organisational capital of the Budimex Group is its unique structure, which makes it possible to gather complementary competences, therefore offering a wide range of services.

Budimex Group provides a safe workplace for its employees and contractors, and has a modern stock of the machines and equipment necessary for the completion of contracts.

Capital management in 2022:

• Use of an Integrated Management System consisting of certified quality, occupational health and safety and environmental management systems.
• Work on the Strategy in the ESG areas.
• Development of the Capital Group through the acquisition of Magnolia Energy Sp. z o. o. and Fotowoltaika HIG XIV Sp. z o.o.
• Nearly 78% of the Group’s capital expenditures in 2022 comply with the EU taxonomy of environmentally sustainable activities.

Intellectual capital is the sum of the unique technical solutions developed over the years, resulting from research and development. It also includes the knowledge and competences of the Budimex Group’s employees, who create effective solutions that ensure the safety of the recipients of the Group’s undertakings and the natural environment, etc.

Capital management in 2022:

• Increasing the company’s innovation potential by working with startups.
• Identification of innovations through the use of the R&D tax relief mechanism.
• Functioning of the Innovation Zone – a platform for employees to submit, evaluate and implement ideas for improvements and innovation.
• Possession of 21 laboratory units that exercise ongoing quality control of works and construction products at all stages of project implementation.

According to the Budimex Group, social capital is the ability to build relations with its environment, i.e. with suppliers, subcontractors and local communities, which it supports through employee volunteering, sponsorship and donations.

Capital management in 2022

• Conducting public consultations during the design process in order to reduce the risk of social conflicts related to the implementation of investments.
• Compensation for local communities for nuisance caused during the execution of contracts.
• Collaboration with other companies, including competitors, to solve common industry issues.
• Development of original social programmes: Parent Zone (since 2012), Hello ICE. Budimex for Children (since 2019) and Home from the Heart 2 (Dom z Serca 2) (since 2022). Strefa Rodzica. (od 2012 roku), Hello ICE. Budimex Dzieciom (od 2019 roku), Dom z Serca (od 2020 roku).
• Running a grant programme and employee volunteering programme: Volunteering Grant. Grant na Wolontariat.
• Support for the implementation of educational, social and cultural projects: Diamond Discoverers (Odkrywcy Diamentów), Kromka Chleba Foundation and Great Orchestra of Christmas Charity).

For the Budimex Group, natural capital is its influence exerted (directly and indirectly) on the environment. The Group strives to reduce its impact on the environment (including climate), increase the efficiency of natural resources management and apply the principles of ecological responsibility in the supply chain. It protects the most valuable natural areas, ensuring correct construction site planning and security. It constantly monitors its impact on the surroundings and responds to all potential risks

Capital management in 2022

• Recovery of secondary raw materials as well as soil and earth.
• Implementation at Budimex S.A. of the VE (value engineering) process, which allows the optimisation of material consumption and reduction in the amount of waste produced.
• Spreading information within the organisation on responsible purchasing.
• Subjecting all subcontractors to prequalification in terms of compliance with environmental protection rules.
• Gradually increasing the percentage of electric and hybrid vehicles in the vehicle fleet.