Financial standing of the Budimex Group in 2022 /
Scale of operations – statement on the financial standing

• Increases in the value of tangible fixed assets amounted to PLN 640,734 thousand, i.e. they increased by PLN 102,122 thousand (by 19.0%) compared to the end of 2021. Their value was positively affected by the purchase and leasing of tangible fixed assets in the amount of PLN 198,318 thousand and the acquisition of control over Magnolia Energy Sp. z o.o., Fotowoltaika HIG XIV Sp. z o.o. and Zakładu Przetwarzania Odpadów Zawisty Sp. z o.o. (in total, PLN 43,084 thousand). At the same time, their value was reduced by depreciation in the amount of PLN 132,817 thousand.
• An increase in the value of deferred tax assets, which at the end of 2022 amounted to PLN 685,036 thousand (i.e. 9.3% of the group’s total assets). Their value was PLN 42,663 thousand (6.6%) higher than at the end of 2021 due to an increase in the balance of negative temporary differences in liabilities.

As of 31 December 2022, the current assets of the Budimex Group amounted to PLN 5,569,074 thousand, i.e. they increased by PLN 378,169 thousand (by 7.3%) compared to the end of the previous year.

Significant changes in the value of current assets as of 31 December 2022 compared to the end of the previous year include:

• An increase in the value of cash and cash equivalents – they reached the level of PLN 3,249,369 thousand, i.e. they were higher by PLN 533,574 thousand (19.6%) than the year before.
• A decrease in trade receivables and other receivables amounted to PLN 952,515 thousand. Their amount was 265 347 thousand (21.8%) lower, mainly as a result of the receipt of earlier payments for invoices issued for construction works for companies in the group.
• Lower valuation of construction contracts amounted to PLN 532,484 thousand, i.e. decreased by 196,931 thousand (by 27.0%), which was due to the completion of construction works and invoicing all the works performed on several infrastructure, energy and building contracts carried out by Budimex SA. These contracts showed an increased balance of under-invoicing due to the ongoing acceptance of works and final settlements with developers at the end of 2021.

Structure of Budimex Group assets PLN thousand

As of 31 December 2022, equity amounted to PLN 1,299,455 thousand (i.e. 17.6% of the balance sheet total). Their value was PLN 61,552 thousand (4.5%) lower than the year before. In 2022, the group generated a net profit of PLN 548,129 thousand. At the same time, Budimex SA paid the remaining part of the dividend from the profit for 2021 in the amount of PLN 599,191 thousand.

At the end of 2022, the group’s long-term liabilities amounted to PLN 1,029,009 thousand (or 13.9% of liabilities), i.e. they were PLN 5,168 thousand higher than the year before. The change in their status was due to a lower level of liabilities due to credits, loans and other external sources of financing. They amounted to PLN 148,706 thousand, i.e. they were PLN 6,563 thousand (4.2%) lower than at the end of the previous year. Deposits for construction contracts were also lower than a year ago – at the level of PLN 229,963 thousand, i.e. lower by PLN 6,625 thousand (2.8%) than at the end of 2021. On the other hand, other financial liabilities increased by PLN 10,731 thousand to PLN 12,807 thousand as a result of a deferred payment liability for the purchase of shares in Magnolia Energy and Zakład Przetwarzania Odpadów Zawisty Sp. z o. o. The provision for long-term liabilities and other charges also increased by PLN 9,816 thousand, which mainly includes an additional provision for repair guarantees.

As of 31 December 2022, the group’s short-term liabilities amounted to PLN 5,058,744 thousand (68.5% of liabilities), which means that they were higher by PLN 580,274 thousand (by 13.0%) than at the end of 2021. Most of them were trade liabilities and other liabilities in the amount of PLN 1,516,956 thousand, which was PLN 120,656 thousand (8.6%) higher than the year before.

Other major changes in short-term liabilities concerned:

• Increase in the value of deferred income. They amounted to PLN 578,658 thousand and, mainly as a result of the increase in advance payments received for construction and assembly works due to the execution of contracts, they were PLN 286,798 thousand (98.3%) higher compared to the end of 2021.
• A decrease in the valuation of construction contracts (representing the difference between the revenues invoiced to investors and recognised in the profit and loss account) by PLN 94,970 thousand (by 6.0%) to PLN 1,493,517 thousand at the end of 2022.
• An increase in the provision for losses on construction contracts to PLN 803,263 thousand, that is by PLN 288,476 thousand (by 56.0%), due to the newly identified risk of an increase in the costs of several infrastructure contracts for Budimex SA, showing final losses at the end of 2022, and an increase in the cost of materials and labour recorded from the moment of submitting the tender until the end of 2022.
• An increase in deferred income by PLN 286,798 thousand, i.e. by 98.3%.

Structure of Budimex Group liabilities PLN thousand