Letter from the President

April 26, 2024

- Category : 1. letter from The President, Letter from the President

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Dear Stakeholders, Budimex Group’s Business and Community Partners!

We present the Budimex Group’s integrated report for 2023. In the report, we show how we are turning challenging environmental plans and social goals into measurable results. In these difficult times, we are not afraid to challenge ourselves to meet the expectations of our stakeholders. I would like to thank every employee who has contributed to our sustainability efforts.

In 2023, the construction sector stabilized after the difficulties caused by the pandemic and the war in Ukraine. Poland is now considered the largest construction site in Europe due to its large number of projects, especially in infrastructure. Although local conditions are favorable, we are not a green island – we face the same problems as other European Union countries, such as soaring costs and insufficient availability of workers.

In order to strengthen our potential in the sustainability area and to be even more responsive to the challenges of the future, we announced the ESG Strategy 2023-2026 with an outlook until 2050. The document systematizes our approach and plans in the environmental, social and governance areas. At its core are strategic goals that address key challenges for the construction sector and are consistent with the UN Sustainable Development Goals. They will set the pace for our operations.

As a proactive company, we focus on sustainable development. In 2023, we continued to increase our commitment to green energy. We invested in photovoltaics and in electrifying our vehicle fleet, and all the electricity we obtained from third-party suppliers came from renewable sources, which is confirmed by relevant guarantees.

We are raising the environmental awareness of our employees. Last year, they had the opportunity to take part in a grant program and win funds for grassroots projects in the ESG area, including education or climate change prevention projects. There has been a significant increase in the number of employees involved in research and development projects.

In the environment area, and of particular relevance in the context of the current environmental situation, is our promise to reduce CO₂ emissions from Scopes 1 and 2 by 20% by 2030 compared to 2020, and to aim for climate neutrality by 2050. Because of the focus of our activities, a significant positive impact will come from developing and implementing a circularity policy. In the social and governance area, in turn, one should mention especially, among other things, the annual implementation of training and programs to promote a safety culture on our construction sites, the further equalization of wages between men and women, and the launch of a process of systemic identification and analysis of ESG risks.

I am convinced that by adopting a sustainable development perspective, we will collectively turn the current challenges into success.

I invite you to read the report and reflect on the Budimex Group’s efforts for a better, sustainable future.

Artur Popko
President of the Budimex SA Management Board

2.11. Technologies used, 2.11.1. Implemented innovative projects, About Budimex Group

2.11.1. Implemented innovative projects

By feniksmedia on

April 26, 2024

- Category : 2.11. Technologies used, 2.11.1. Implemented innovative projects, About Budimex Group

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The company’s structure includes an Innovation Department, which manages innovation projects and the implementation of new technologies.

We take steps to strengthen the culture of innovation. Our goal is for everyone employed at the Budimex Group to feel encouraged to propose new solutions and supported in developing them. We are committed to creating an environment where team members have the freedom to experiment, and where management is open to, appreciates and strives to implement ideas that are submitted. In this way, we plan to generate innovations that will not only address the company’s business needs and the challenges facing the construction industry, but also realize the aspirations of employees.

In 2023, 434 Budimex SA employees were involved in 62 carefully selected R&D projects, some of which were a continuation of activities initiated in previous years.

Advanced mobile collaborative robot

The object of the Concert project, funded by the European Commission under Horizon 2020, is to develop robots with high power and strength that can work alongside humans in a variety of often unstructured and dynamically changing environments. The initiative aims not only to increase efficiency and productivity in construction, but also to pave the way for the use of collaborative robotics in the manufacturing sector. The venture is being implemented from 2021 by a consortium involving Budimex SA, combining the experience of experts from Poland, Italy, Austria and Germany.

In 2023, within the framework of the aforementioned project, we began testing a robot that can perform the most physically demanding tasks for construction workers. Powered by an environmentally friendly electric motor and controlled by gestures, among other things, the device is able to work and safely avoid people and obstacles in a variety of conditions, enabled by advanced 360-degree cameras, four steering wheels or a lidar system. The innovative “cobot” (collaborative robot, a robot that works together with a human) can move completely autonomously, for which it can use an uploaded BIM model of the facility. Thanks to its modular design, it can be easily adapted to different applications.

The robot, developed by an international team of engineers in cooperation with the Central Institute for Labor Protection, was tested by us at the construction site of the Military Clinical Hospital in Kraków, where it helped in transporting heavy items and drilling, among other tasks. During the tests, we presented the “cobot” to students from Kraków universities, with the aim of introducing them to the practical aspects of using robots on construction sites, inspiring them to further innovation in the industry, but also drawing their attention to the need for ethical and safe implementation of the technology.

A short video about our tests can be viewed at: https://www.youtube.com/watch?v=9IGeOyLkgOw, and additional information about the entire Concert project can be found on its website: https://concertproject.eu/.

3D printing from concrete

The use of 3D printing technology for the design and construction of concrete stairs at the Ełk railroad station being modernized by Budimex was the first application of this technology in Poland in construction practice. With a length of 7 meters, a width of 80 cm and a height of about 4.5 meters, the staircase, made up of three elements weighing a total of nearly 2 tons, is a perfect example of the efficiency and flexibility that 3D printing offers in our industry.

The goal of the project was to better understand 3D printing technology from concrete and assess its practicality. The results of the implementation indicate that 3D printing can offer significant environmental benefits, such as reduced waste, reduced carbon footprint and more efficient use of materials.

2.11. Technologies used, About Budimex Group

2.11. Technologies used

By feniksmedia on

April 26, 2024

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Budimex SA has for many years maintained its position as a leader in the construction industry thanks to, among other things, reaching for modern technologies to support the company’s activities in many areas, and in particular, by constantly expanding the scope of application of the Building Information Modeling (BIM) methodology. We also pay a lot of attention to pilot implementations of technologies not previously used in the Polish construction industry.

Building Information Modeling

We use the BIM methodology to optimize all stages of the construction process, from design through construction to maintenance of buildings, as well as to optimize internal processes and improve operational efficiency. In 2023, we continued these activities and sought new areas for applying the aforementioned methodology in our organization. It is applied in the company in two key areas, which are:

modern technologies/tools,
efficient processes.

One of the basic assumptions of the methodology in question is the use of the CDE (Common Data Environment) platform during the construction process as a central system for managing documentation and BIM models and for streamlining processes, such as work acceptance.

In 2023, we used the BIM methodology in a number of projects, among which the reconstruction of the Warsaw West railroad station, the construction of the PepsiCo factory in Środa Śląska, and the construction of the Military Clinical Hospital building in Kraków deserve special mention.

BIM-based design

State-of-the-art design software based on the BIM methodology allows us to develop designs in the form of 3D models with the necessary material and quantitative information early in the process. This type of design involves making a digital prototype of the planned project and continuing the work in the virtual world, so we are able, among other things, to find errors in the design before they occur on the construction site.

3D scanning

Another key BIM-based solution that we commonly use in our company is 3D scanning. This technology enables efficient inventory-taking of building and infrastructure facilities. We are able to acquire data from the area of the planned project in a very short time or take measurements during the ongoing work to verify the original design assumptions. 3D scanning is a surveying measurement, but the result is a set of points that can be reflected in 3D.

2.10. Research and development activities, About Budimex Group

2.10. Research and development activities

By feniksmedia on

April 26, 2024

- Category : 2.10. Research and development activities, About Budimex Group

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[GRI 3-3] [Own indicator 1]

Budimex SA as a modern company enterprise participates in the development of technologies. They make it possible to optimize the cost of execution work and reduce its environmental impact, as well as to make finished facilities more sustainable.

One of our primary areas of focus is the recycling of building materials, which reduces the industry’s need for natural resources. We focus on the reuse of materials resulting from the milling of pavements made of mineral-asphalt mixtures and cement concrete.

Recyclobeton

Recyclobeton is a project based on the idea of processing crushed concrete directly on the construction site for local use of this raw material in a closed system. The project conducted a series of concrete mix tests in 2023, using both crushed stone and fresh mix, experimenting with different proportions and methods of adding and mixing components. Working on the recycling of construction materials is a key area of focus for Budimex following from the assumptions of its ESG strategy. An industry article on this issue can be found at: https://inzynierbudownictwa.pl/transformacja-budownictwa-do-obiegu-zamknietego-zastosowanie-materialow-z-recyklingu/

Mineral and asphalt mixtures with asphalt granules

For years Budimex has been successfully developing a circular materials and production economy through the use of asphalt granules in the production of mineral and asphalt mixtures. These activities use the latest technologies in the extraction, processing and remarketing of recycled materials. Control over the process is exercised by employees of Budimex laboratories and employees of the Directorate of Equipment and Production Services [1].

Self-healing asphalt pavements

The SeHePa (Self-Healing Pavement) project, subsidized by the National Center for Research and Development and implemented by Budimex SA in cooperation with the Warsaw University of Technology, involves the development and real-world testing of mineral and asphalt mixtures with special microcapsules. A key feature of such mixtures is self-healing properties. They make it possible to increase the service life of road surfaces, which brings tangible economic benefits and reduces the negative impact on the environment by reducing the frequency of maintenance and repair interventions and reducing the consumption of raw materials.

^[1]Until 1 February 2024, under the name Equipment Services Division.

2.9. Quality of service, About Budimex Group

2.9. Quality of service

By feniksmedia on

April 26, 2024

- Category : 2.9. Quality of service, About Budimex Group

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[GRI 3-3] [Own indicator 3]

Caring for the highest quality of provided services is one of Budimex SA’s core values, and meeting the principle of due diligence in this area is guaranteed by the certified Integrated Management System operating in the company. It includes both a quality management system that complies with the requirements of ISO 9001 and a quality assurance system for design, development and production based on the AQAP 2110 standard, which specifies NATO requirements.

Uniform quality procedures apply during the company’s performance of all contracts. They regulate in detail the conduct of quality control at construction sites and the management of the quality of mineral and asphalt mixtures, concrete mixtures and aggregates. The relevant procedures also specify the rules for the procurement and use of individual raw materials at various stages of the construction process, and indicate the actions to be taken if deviations from the standard are found. The highest quality of contract performance is confirmed by numerous certificates and accreditations.

In 2023, day-to-day control of the quality of work performed and materials used, including in the context of the safety of building structures, was carried out by the Central Laboratory and 25 field laboratories owned by the company.

The Central Laboratory operates in accordance with ISO/IEC 17025 and has been accredited by the Polish Accreditation Center since 2013, with accreditation extended to the field laboratory in Szczecin in 2024 [1]. Accreditation ensures transparency and is objective proof that the organization operates in accordance with the best practices. The laboratory regularly participates in comparative inter-laboratory studies and proficiency tests, with the aim of constantly improving its testing methods and raising the level of its services. As part of its activities, it constantly cooperates with recognized testing bodies.

Budimex SA’s Quality Department conducts research and development activities and shares knowledge and experience, taking an active part in scientific conferences and publishing articles in industry journals. In addition, it provides technology consulting.

Budimex SA’s laboratories provide, among other services, the following:

testing of asphalts and asphalt emulsions,
testing and design of mineral and asphalt mixtures,
testing of soil-binder and mineral-cement-emulsion (MCE) mixtures,
soil testing,
aggregate testing,
testing of cements and cement mortars,
testing of concrete mixtures and hardened concrete,
diagnostics of asphalt and concrete pavements,
field acceptance testing of road construction layers,
geological exploration of the subsoil.

Tests and measurements are carried out by qualified personnel, using proven equipment and premises that meet environmental standards. Competent and experienced personnel and specialized equipment make it possible to provide laboratory services in accordance with the terms of contracts and technical specifications for the execution of individual work ranges.

An important part of the laboratories’ work is to strive to optimize the use of natural resources, in particular to analyze the feasibility of using recycled and waste materials in construction. To this end, among other things, new testing methods are being developed and implemented, an example of which is the Study of Crack Propagation (SCB), which is important for the possibility of using asphalt granules in asphalt mixtures. Care for the environment is also manifested by the laboratories’ use of energy from renewable sources. There are photovoltaic panels on the roof of the laboratory building, which, combined with a system for monitoring electricity consumption, significantly reduces the carbon footprint.

Achievement of the goal of continuous improvement of service quality is monitored by the quality conformance index, which in 2023 reached 96.3%.

^[1]Its scope can be viewed at: https://www.pca.gov.pl/akredytowane-podmioty/akredytacje-aktywne/laboratoria-badawcze/AB%201414,plik.html.

2.8. Awards and distinctions, About Budimex Group

2.8. Awards and distinctions

By feniksmedia on

April 26, 2024

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The effectiveness of the Budimex Group’s activities for the sustainable socio-economic development of Poland is confirmed by the awards and titles received in 2023.

Construction of the Year 2022 – Budimex SA received awards from the Polish Association of Civil Engineers and Technicians for the modernization of the Institute of Thermal Engineering at Warsaw University of Technology and the construction of the Łagiewnicka Route in Kraków.

Modernization of the Year 2023 – in the 27th edition of the Modernization of the Year & Construction of the 21st Century competition, Budimex SA’s modernization of the century-old Silesian Planetarium in Chorzów was awarded.

POLITYKA’S 2023 CSR White Leaf – Polityka weekly awarded Budimex SA with a prestigious distinction for improving the company’s social and environmental impact management activities.

WNP Award 2023 – Budimex SA received an award from the WNP.PL portal and the Economic Magazine “New Industry”. The award was given for contributions to the development of the Polish economy.

General contractor friendly to construction companies – Budimex SA once again received the title from construction industry experts in a ranking conducted by ASM Center for Analysis and Market Research. The company took first place in three subcategories:

general contractor that ensures the highest safety standards on construction sites,
general contractor with whom cooperation is rated the best,
general contractor offering the most favorable financial terms and timely payments.
In addition, the company ranked second in the subcategory of general contractor recommended as the best partner to work with.

Diversity Leader 2024 – Budimex SA was ranked among the top ten construction companies in the world in a ranking based on a global survey organized by the Financial Times on companies’ support for diversity and women’s professional development (see subsection 5.3. for more information).

List of 500 – Budimex SA made it to the list of the largest Polish companies, compiled by the Rzeczpospolita daily and the Coface financial group on the basis of sales revenue for 2022. Ranked 66th overall, the company was well ahead of all competitors in the construction industry.

Rzeczpospolita’s Employer – Budimex SA received an honorable mention in the aforementioned competition in the category of best remuneration solutions. The Rzeczpospolita daily pointed to companies compensating employees for the decline in the value of their salaries due to inflation as these exemplary initiatives.

Construction Company of the Year 2022 – the title in the general contractor category was awarded to Budimex SA by “Builder” magazine as part of the 20th edition of the Builder Awards.

Best solution from the area of circular economy – in a competition organized by the Polish Agency for Enterprise Development in the category of best implemented products, Budimex SA received an honorable mention for its innovative technology for the production of mineral-asphalt mixtures using recycled asphalt pavement material.

TopBuilder 2023 – the prestigious award honored the reconstruction of track systems along with accompanying infrastructure on the E-59 railroad line between Rokietnica and Wronki, completed by Budimex SA.

Lower Silesian Construction of the Year 2022 – for the construction of the PepsiCo plant Budimex SA was honored with an award in the competition of the Polish Association of Construction Engineers and Technicians in the industrial construction category.

Dividend Company of the Year 2022 – Budimex SA won the title in a poll honoring companies contributing to investor awareness and building products and services of the highest quality, accompanying the Invest Cuffs conference.

Golden Hundred of Łódzkie Voivodship – FBSerwis Kamieńsk was ranked 3rd in the ranking of “Dziennik Łódzki” in the category of the largest companies by net sales profitability in 2022.

TOP Brand 2023 – Budimex SA is the undisputed leader in terms of recognition among Polish construction and development companies. It won first place in the Top Brand 2023 ranking in its industry, and was thus among the 50 strongest brands in Poland.

The Budimex Group’s staff was also recognized in 2023 for its contribution in the sustainability area, among other aspects.

President of the Budimex SA Management Board Artur Popko has been awarded in the Builder Awards in the Industry Personality 2022 category.

Representatives of Budimex SA have been nominated for the European Women In Construction & Engineering Award 2023, an award for women working in the European engineering and construction industry who have outstanding achievements and are an inspiration to others. Among them are:

Natalia Wierzbicka, works manager – nominated in the civil engineer category,
Małgorzata Witkiewicz, sectional works manager – nominated in the structural engineer category,
Kinga Grzegorczyk, OHS Manager – nominated in the occupational health and safety category,
Anna Pukowiec, Head of the Technical Department – nominated in the railroad engineering category,
Kamila Goławska-Feduniak, chief contractual conditions specialist – nominated in the quantity surveyor category.

In the competition organized for all OHS areas of Ferrovial Group companies, one of the awards went to Maja Zielińska, OHS manager of District 9 of the General Construction Directorate at Budimex SA.

Already after the end of the period covered by the report, in February 2024, Budimex SA Management Board Member, Chief Operating Officer of Railway, Energy and Industrial Construction Maciej Olek, Budimex SA Management Board Member, Chief Operating Officer of Infrastructure Cezary Łysenko, and President of the Management Board, Managing Director of Mostostal Kraków Jacek Lech received the Builder Awards in the 2023 Industry Personality category.

Information on the awards and distinctions received by the Budimex Group is published on an ongoing basis at: https://media.budimex.pl/category/3193.

2.7. Membership associations, About Budimex Group

2.7. Membership associations

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April 26, 2024

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[GRI 2-28]

Budimex Group companies are members of numerous industry organizations. As such, they actively participate in meetings, conferences and gatherings of program councils and other statutory bodies. Leading Budimex Group companies belong to the following organizations:

BUDIMEX SA

Business Centre Club
Federation of Polish Entrepreneurs
ITS Polska
Polish Chamber of Power Industry and Environmental Protection
Economic Chamber of Land Transport
Luxtorpeda 2.0 Cluster
Polish Economic Chamber of Road Construction
Polish Chamber of Railway Equipment Producers and Railway Service Providers
Polish Cluster of Construction Exporters
Polish Association of Construction Industry Employers in which a representative of Budimex SA serves as a member of the council
Polish Wind Energy Association, whose activities are influenced by a representative of BXF Energia, which belongs to Budimex SA – this influence stems from its status as an ordinary supporting member
Polish Alternative Fuels Association
Polish Association of Asphalt Pavement Contractors, in which the director of the ESG, Quality and Environmental Protection Department1F1F[1] serves as President of the Management Board
Polish-Spanish Chamber of Commerce
Polish-German Chamber of Commerce
Railway Business Forum
Polish Association of Listed Companies
Zväz stavebných podnikateľov Slovenska
Polish Union of Designers and Engineers

MOSTOSTAL KRAKÓW SA

Polish Chamber of Power Industry and Environmental Protection
Polish Chamber of Steelwork
Polish-German Chamber of Industry and Commerce
Scandinavian-Polish Chamber of Commerce

FBSERWIS GROUP

Federation of Polish Entrepreneurs
Polish Economic Chamber of Road Construction
Polish Chamber of Waste Management
Polish Facility Management Council
Polish Human Resources Management Association
Polish-Spanish Chamber of Commerce
Employers of Poland
Association of Producers of Fuels from Waste and Biomass (through FBSerwis Kamieńsk)

^[1]Until February 2024 under the name of Procurement, Quality and Environmental Protection Department.

2.6. Key performance indicators in the ESG, About Budimex Group

2.6. Key performance indicators in the ESG area

By feniksmedia on

April 26, 2024

- Category : 2.6. Key performance indicators in the ESG, About Budimex Group

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Table: Key performance indicators in the ESG area: Budimex SA

Table: Key performance indicators in the ESG area: Budimex Group

* Data revised from those published in the 2022 integrated report

2.5. Capital of the Budimex Group, About Budimex Group

2.5. Capital of the Budimex Group

By feniksmedia on

April 26, 2024

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[ESRS SBM-1]

FINANCIAL CAPITAL

The capital from which the Budimex Group finances its operations is the funds entrusted to it by shareholders and lenders, and generated by the company through its profits. The Group allocates these resources to purchase necessary raw materials and supplies, and pays its obligations to its business partners in a timely manner, which contributes to their liquidity.

In 2023, the management of financial capital was in line with the set targets. There was a 13.8% increase in sales in the construction segment compared to the previous year. The segment’s gross sales margin reached 10.9%, up from 9.6% in 2022, despite a sharp increase in material prices. The company maintained its contract margin target for most projects. Cost discipline was maintained, with a combined SG&A expense ratio of 3.9% (3.8% in 2022). Net profit stood at PLN 746.1 million, compared with PLN 548.1 million the previous year. Paid a dividend of PLN 459.3 million from the 2022 profit. Effectively managed finances, increasing the net cash position at the end of 2023 to PLN 3.8 billion, an increase of 22.6% over the previous year.

Table: Achieved results – financial capital

More information on financial capital can be found in the 2023 Report on the Activities of the Budimex Group and Budimex SA, available at: https://inwestor.budimex.pl/raporty-okresowe.

HUMAN CAPITAL

The Budimex Group is made up of a diverse team of experienced engineers and employees from other professions committed to building its lasting value. The company consistently provides its team and business partners with decent working conditions, and supports the development of their competence. The priority value is concern for the health and life of all participants in the construction process, so not only the employees of the Budimex Group, but also the staff of its consortium members or suppliers, among others.

In 2023, human capital management included, in particular, thoroughly analyzing the most serious occupational health and safety incidents, organizing safety visits to construction sites and Safety Week, organizing employee development programs (including Young Engineer Academy, Contract Manager Academy, Super Leader, Brick Success), and conducting another engagement survey, through which areas for improvement or enhancement were identified.

Table: Achieved results – human capital

For more information on the Budimex Group’s human capital, see the section of this report entitled Corporate Social Responsibility.

ORGANIZATIONAL CAPITAL

The organizational capital of the Budimex Group is its unique structure, enabling it to offer a wide range of complementary services, as well as its implemented management systems. These assets also include a modern fleet of machinery and equipment necessary for the performance of contracts.

In 2023, organizational capital management primarily included the establishment of BXF Energia Sp. z o.o., the acquisition of PPUH Konstalex Sp. z o.o., and the opening of a Budimex SA branch in Riga, Latvia.

Table: Achieved results – organizational capital

For more information on the Budimex Group’s organizational capital, see Sections 2.1., 2.2. and 2.3., among others.

INTELLECTUAL CAPITAL

The intellectual capital of the Budimex Group is the knowledge and competence of its employees, as well as the unique technical solutions developed by the company, enabling it to, among other things, ensure the safety of the recipients of the Group’s projects and the environment.

In 2023, intellectual capital management included the operation of the Innovation Department and a network of specialized laboratories, as well as the Group’s involvement in 62 carefully selected R&D projects.

Table: Achieved results – intellectual capital

For more information on intellectual capital, see Sections 2.9., 2.10., 2.11. and 5.6.

SOCIAL CAPITAL

A company’s social capital is the relationships it has built with its surroundings, including suppliers, subcontractors, local communities, other companies in the construction sector or public administration.

In 2023, the Budimex Group’s social capital management included, among other things: organizing consultations and information campaigns related to ongoing contracts, compensating local communities for nuisances caused during works, working with other companies to solve common problems of the industry, developing original social programs, running the employee volunteer program Grant for Volunteers, implementing educational projects for pupils and students, and supporting the common good through donations.

Table: Achieved results – social capital

* Data revised from those published in the 2022 integrated report.

For more information on social capital, see Section 5.8.

NATURAL CAPITAL

The Budimex Group uses natural capital, consuming raw materials and potentially contributing to their depletion through negative impacts on ecosystems and the climate.

In 2023, natural capital management consisted of minimizing direct and indirect environmental impacts and included, among other things, increasingly efficient management of raw material consumption (including activities in line with the idea of a circular economy), appropriate planning and securing of construction sites, application of environmental responsibility principles in the supply chain, and a systematic increase in the percentage of electric and hybrid vehicles in the Budimex Group’s fleet.

Table: Effects achieved

[GRI 302-3] [GRI 305-4] [ESRS E1-5] [ESRS E1-6]

* Data revised from that presented in the 2022 report.

For more information on the Budimex Group’s natural capital, see the Environmental Responsibility section of this report.

2.4. Budimex Group’s governing bodies, About Budimex Group

2.4. Budimex Group’s governing bodies

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April 26, 2024

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[GRI 2-9] [GRI 2-11] [ESRS GOV-1]

Management Board composition

As at 31 December 2023, the Management Board of Budimex SA consisted of the following members:

Artur Popko – President of the Management Board, Director General,
Jacek Daniewski – Management Board Member, Director of the Legal and Organizational Division,
Anna Karyś-Sosińska – Management Board Member, Director of the Human Resources Division,
Maciej Olek – Management Board Member, Chief Operating Officer of Railway, Power and Industrial Construction,
Cezary Łysenko – Management Board Member, Chief Operating Officer of Infrastructure,
Marcin Węgłowski – Management Board Member, Director of the Economic and Financial Division.

On 6 February 2023, the Supervisory Board suspended Mr. Artur Pielech from the Management Board of Budimex SA. On 30 March 2023, the Supervisory Board dismissed Mr. Artur Pielech from the company’s Management Board.

The members of the management body do not hold any positions within the company outside the area of responsibility defined in the aforementioned job title.

Composition of the Supervisory Board

As at 31 December 2023, the Supervisory Board of Budimex SA consisted of the following members:

Marek Michałowski – Chairman of the Supervisory Board,
Juan Ignacio Gaston Najarro – Deputy Chairman of the Supervisory Board,
Igor Adam Chalupec – Secretary of the Supervisory Board,
Janusz Dedo – member of the Supervisory Board,
Artur Kucharski – member of the Supervisory Board,
Danuta Dąbrowska – member of the Supervisory Board,
Silvia Rodríguez Hueso – member of the Supervisory Board,
Ignacio Aitor Garcia Bilbao – member of the Supervisory Board,
Mario Manuel Menendez Montoya – member of the Supervisory Board.

On 30 March 2023, the Supervisory Board was enlarged with a new member Mr. Silvia Rodríguez Hueso with effect from 1 April 2023. As of 27 April 2023, Mr. Dariusz Blocher resigned as a member of the Supervisory Board.

Members of the Supervisory Board do not perform operational functions in the company. Some members of the Supervisory Board serve on Supervisory Board committees. The compositions of the Supervisory Board Committees are presented in Section 6.

Neither the Management Board nor the Supervisory Board includes representatives of stakeholders, such as a trade union delegate, yet both these corporate bodies take into account the results of dialogue with the social environment in their decisions. The scope and mechanisms of this dialogue are described subsections 6.1.1. and 5.8.1.

The Supervisory Board is made up of experienced managers, engineers and academics (law, economics, banking, auditing), which is a significant advantage for the company in terms of potentially complementing the competence of the Management Board and being able to provide it with information and guidance in specialized areas.

Full information about the education and career paths of the members of the Management Board and Supervisory Board is published by the company on the website https://www.budimex.pl/pl/o-budimex/wladze.

2.3. Group structure, 2.3.2. Shareholding structure, About Budimex Group

2.3.2. Shareholding structure

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April 26, 2024

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The shareholding of Budimex SA, to the company’s knowledge as of 31 December 2023, was as follows:

Figure: Share of Budimex SA’s share capital to the company’s knowledge as of 31 December 2023

In January 2023, the company received information from Powszechne Towarzystwo Emerytalne Allianz Polska SA about the merger of this entity with Aviva Powszechne Towarzystwo Emerytalne Aviva Santander SA, pursuant to Art. 492 sec. 1 item 1 CCC and Article 67 of the Act on Organization and Operation of Pension Funds, as a result of which the share in the share capital and the total number of votes in Budimex SA in the accounts of the funds managed by PTE Allianz Polska SA increased to 2,689,466 shares representing 10.53% of the share capital. In June 2023, the company received information from PTE Allianz Polska S.A. that, as a result of the sale of its shares, the company’s share in Budimex SA’s share capital and total number of votes in the Allianz OFE account was 2,551,331 shares, representing a total of 9.99%.

Budimex SA has been listed on the Warsaw Stock Exchange since 1995. As of September 2019, the company has been a member of the WIG-ESG index, which brings together the most responsible listed companies, and prior to joining it, from 2011 to 2019, it was part of its predecessor, the Respect Index.

On 31 August 2023, Budimex SA was included in the MSCI Poland index, run by New York investment bank Morgan Stanley for investment funds and aggregating Polish companies with the greatest growth prospects and a stable financial position. The selection of companies included in MSCI Poland index is based on several variables, the most important of which are the value (market capitalization) and how often and willingly market participants buy or sell shares of a given company. Only 14 entities have so far qualified for the main index for Poland.

On 29 February 2024, the results of the annual revision of stock market indices were announced by WSE Benchmark, as a result of which Budimex SA joined the prestigious WIG20 index. It groups together the largest companies listed on the WSE, which are reference points for domestic and foreign investors. Budimex will be listed as the 10th largest share of the WIG20. The company returns to the index after a 20- year hiatus – it was part of the index between 1995 and 2004.

2.3. Group structure, 2.3.1. Major changes in the structure of the Budimex Group in 2023, About Budimex Group

2.3.1. Major changes in the structure of the Budimex Group in 2023

By feniksmedia on

April 26, 2024

- Category : 2.3. Group structure, 2.3.1. Major changes in the structure of the Budimex Group in 2023, About Budimex Group

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Consolidation of Budimex F Sp. z o.o. and Budimex Slovakia s.r.o.

The above companies were consolidated due to the start of significant operations.

Establishment of civil partnerships under German law

Budimex SA and Budimex Bau GmbH, a wholly owned subsidiary of Budimex SA, have jointly established 4 civil companies under German law: ARGE Brücke Oderberg, ARGE Brücke Wittstock, ARGE Oberkrämmer and ARGE Campus Düppel. They are treated as joint entities and were established to perform construction contracts.

Establishment of BXF Energia Sp. z o.o.

The articles of incorporation of BXF Energia Sp. z o.o. were signed on 17 May 2023. The company was entered in the National Court Register on 25 September 2023.

Establishment of WMSerwis SA

On 22 May 2023, Budimex SA established WMSerwis SA. The company was registered with the National Court Register on 12 July 2023. It was not consolidated due to the absence of significant operating activities.

Establishment of Green Waste Management 1, 2, 3, 4, 5, 6 Sp. z o.o.

In June and July 2023, FBSerwis SA established 6 limited liability companies. They were registered with the National Court Register in June, July and August 2023. They have not been consolidated due to the lack of significant operating activities.

Dissolution of Budimex SA Ferrovial Construcción SA Sp.j.

On 13 January 2023, the company was deleted from the National Court Register, according to an application filed on 29 December 2022.

Dissolution of Budimex SA Ferrovial Agroman SA 2 S.c.

On 17 May 2023, the company’s shareholders – Budimex SA (95% of the contributions) and Ferrovial Agroman SA (5% of the contributions) – adopted a resolution to dissolve the company due to its inability to achieve the economic purpose for which it was established.

Acquisition of PPUH Konstalex Sp. z o.o.

On 15 May 2023, Mostostal Kraków SA, a wholly owned subsidiary of Budimex SA, concluded an agreement with two individuals for the acquisition of 80 shares in Przedsiębiorstwo Produkcyjno-Usługowo-Handlowe Konstalex Sp. z o.o., representing 100% of the company’s share capital and entitling to 100% of votes at the company’s shareholder meeting.

2.3. Group structure, About Budimex Group

2.3. Group structure

By feniksmedia on

April 26, 2024

- Category : 2.3. Group structure, About Budimex Group

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The Group’s structure as of 31 December 2023 is as follows:

Budimex SA – parent company

Consolidated companies:

Budimex SA
Mostostal Kraków SA – 100% shares
Mostostal Kraków Energetyka Sp. z o.o. – 100% of shares (indirectly through Mostostal Kraków SA)
Budimex Bau GmbH – 100% shares
Budimex Budownictwo Sp. z o.o. – 100% shares
Budimex Kolejnictwo SA – 100% shares
Budimex Parking Wrocław Sp. z o.o. – 51% shares
Budimex Most Wschodni SA (special purpose vehicle) – 100% shares
FBSerwis SA – 100% shares
FBSerwis A Sp. z o.o. – 100% shares (indirectly through FBSerwis SA)
FBSerwis B Sp. z o.o. – 100% shares (indirectly through FBSerwis SA)
FBSerwis Karpatia Sp. z o.o. – 100% shares (indirectly through FBSerwis SA)
FBSerwis Wrocław Sp. z o.o. – 100% shares (indirectly through FBSerwis SA)
FBSerwis Dolny Śląsk Sp. z o.o. – 100% shares (indirectly through FBSerwis SA)
FBSerwis Odbiór Sp. z o.o. – 100% shares (indirectly through FBSerwis SA)
FBSerwis Kamieńsk Sp. z o.o. – 80% shares (indirectly through FBSerwis SA)
FBSerwis Paliwa Alternatywne Sp. z o.o. – 100% shares (indirectly through FBSerwis SA)
JZE Sp. z o.o. – 100% shares (indirectly through FBSerwis SA)
Circular Construction SA – 100% shares (indirectly through Budimex Most Wschodni SA)
Magnolia Energy Sp. z o.o. – 100% shares
Zakład Przetwarzania Odpadów Zawisty Sp. z o.o. – 100% shares (indirectly through FBSerwis SA i JZE Sp. z o.o.)
RailBX GmbH – 100% shares
Budimex Slovakia s.r.o. – 100% shares
Budimex Mobility SA (before 2023 under the name Budimex PPP SA) – 100% shares
Fotowoltaika HIG XIV Sp. z o.o. – 100% shares
Budimex F Sp. z o.o. – 100% shares (special purpose vehicle)
PPUH “Konstalex” Sp. z o.o. – 100% shares (indirectly through Mostostal Kraków SA)

Other companies with Budimex SA’s shareholding:

Budimex A Sp. z o.o. – 100% shares (special purpose vehicle)
Budimex C Sp. z o.o. – 100% shares (special purpose vehicle)
Budimex D Sp. z o.o. – 100% shares (special purpose vehicle)
Budimex H Sp. z o.o. – 100% shares (special purpose vehicle)
Budimex I Sp. z o.o. – 100% shares (special purpose vehicle)
Budimex J Sp. z o.o. – 100% shares (special purpose vehicle)
Budimex K Sp. z o.o. – 100% shares (special purpose vehicle)
Budimex M Sp. z o.o. – 100% shares (special purpose vehicle)
Budimex N Sp. z o.o. – 100% shares (special purpose vehicle)
Budimex O Sp. z o.o. – 100% shares (special purpose vehicle)
Budimex P Sp. z o.o. – 100% shares (special purpose vehicle)
Budimex R Sp. z o.o. – 100% shares (special purpose vehicle)
ConVentures Sp. z o.o. – 100% shares (special purpose vehicle)
Przedsiębiorstwo Napraw Infrastruktury Sp. z o.o. in liquidation bankruptcy – 100% shares (indirectly through Budimex Kolejnictwo SA)
Budimex SA Cadagua SA III S.c. – 99.9% contributions
Budimex SA Cadagua SA IV S.c. – 99.9% contributions
Budimex SA Cadagua SA V S.c. – 99.9% contributions
Budimex SA Sygnity SA Sp.j. – 67% contributions
Budimex SA Técnicas Reunidas SA Turów S.c. – 50% contributions
ASI 1 ConVentures sp. z o.o. SKA – 100% shares
Budimex Construction Prague s.r.o. – 100% shares
BXF Energia Sp. z o.o. – 51% shares (the remaining 49% shares are held by Ferrovial EG SE)
WMSerwis SA – 100% shares
ARGE Brücke Oderberg – 5% shares (the remaining 95% shares are held by Budimex Bau GmbH)
ARGE Brücke Wittstock – 5% shares (the remaining 95% shares are held by Budimex Bau GmbH)
ARGE Oberkrämmer – 5% shares (the remaining 95% shares are held by Budimex Bau GmbH)
ARGE Campus Düppel – 5% shares (the remaining 95% shares are held by Budimex Bau GmbH)
Green Waste Management 1 Sp. z o.o. – 100% shares (indirectly through FBSerwis SA)
Green Waste Management 2 Sp. z o.o. – 100% shares (indirectly through FBSerwis SA)
Green Waste Management 3 Sp. z o.o. – 100% shares (indirectly through FBSerwis SA)
Green Waste Management 4 Sp. z o.o. – 100% shares (indirectly through FBSerwis SA)
Green Waste Management 5 Sp. z o.o. – 100% shares (indirectly through FBSerwis SA)
Green Waste Management 6 Sp. z o.o. – 100% shares (indirectly through FBSerwis SA)

2.2. Managment systems, About Budimex Group

2.2. Management systems

By feniksmedia on

April 26, 2024

- Category : 2.2. Managment systems, About Budimex Group

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Budimex Group companies have Integrated Management Systems (IMS) in place, which includes all the organizational units and functions of the entity and is characterized by:

clear division of responsibilities and powers related to official positions,
involving all employees in achieving the goals of the IMS,
conducting all activities in accordance with the Integrated Management System Book and relevant procedures and instructions,
documenting all required activities,
periodic evaluation and continuous improvement.

The framework for the policies governing IMS in the companies is provided by the Budimex Group Policy. Some IMS documents are managed centrally and apply in unchanged form and content to all Group companies. A common system makes it possible to deepen the integration and systematization of the activities of all entities to ensure stable development and the achievement of ever higher levels of organization.

The said policy is discussed with the companies’ employees during training sessions. It is subject to regular reviews, the results of which are the basis for corrective and preventive actions and other activities aimed at continuous improvement of the systems.

BUDIMEX SA

In the organization and implementation of investment projects, Budimex SA applies an Integrated Management System that includes:

quality management system in accordance with the requirements of ISO 9001,
ISO 14001-compliant environmental management system,
ISO 45001-compliant occupational health and safety management system,
ISO 50001-compliant energy management system,
welding quality management system in accordance with ISO 3834-2,
quality assurance system based on the requirements of the NATO AQAP 2110 standard,
ISO/IEC 27001-compliant information security system,
ISO/IEC 20000-1-compliant IT service quality management system.

The Integrated Management System is coordinated jointly with associated systems, including:

supervision of the fulfillment of the relevant organizational and technical requirements to maintain the authorizations granted by the Office of Technical Inspection, and concerning the manufacture, repair and modernization of technical equipment, as well as materials and components used in their manufacture,
Company Production Control (ZKP), which is a permanent internal control following from the laws ensuring repeatability of production and providing evidence of compliance with the technical specifications adopted for individual construction products used in EU countries. At Budimex SA, the ZKP includes in particular the production of mineral and asphalt mixtures and aggregates used in road construction, as well as projects in the area of railroad construction.

Supervision of the functioning of the IMS and associated systems at Budimex SA is exercised by the Corporate Systems Department and the Management Board Systems Representative. Internal audits in this area are carried out by the Management Systems Audit Department, a unit of the Internal Audit Department.

Figure: Diagram of the operation of the Integrated Management System

Figure: Defined processes in IMS

MOSTOSTAL KRAKÓW SA

At Mostostal Kraków SA, the Integrated Management System (IMS) consists of:

ISO 9001-compliant quality management system,
ISO 14001-compliant environmental management system,
ISO 45001-compliant occupational health and safety management system.

They are supervised by the Management Board’s Integrated Management System representative.

The scope of the IMS described above includes the organization and management of comprehensive project implementation, construction, supply and installation of general, industrial and communications construction facilities, as well as the implementation of industrial pipelines. Scope of the IMS applies to construction contracts performed in the Republic of Poland and abroad.

Associated systems, which are consistent with the IMS and use part of its procedures and instructions, include:

Company Production Control (CPC) system – based on the requirements of the harmonized standard PN-EN 1090-1, which is part of the group of European standards for the design and manufacture of steel or aluminum supporting structure elements,
welding quality management system – based on the requirements of ISO 3834-2,
quality system for the competence of the plant laboratory – based on the requirements of ISO/IEC 17025.

FBSERWIS GROUP

The environmental management system at the FBSerwis Group is based on policies grounded in the requirements of Commission Implementing Decision (EU) 2018/1147 of 10 August 2018 establishing best available techniques (BAT) conclusions for waste treatment. BAT conclusions have been implemented at FBSerwis Dolny Śląsk, FBSerwis Karpatia, FBSerwis Kamieńsk and FBSerwis Wrocław based on operating procedures.

FBSerwis Wrocław has implemented an Integrated Management System compliant with ISO 9001 and ISO 14001. Its scope includes pick-up, collection and transportation of solid waste (municipal and industrial), collection and transportation of liquid waste, mechanical-biological processing of municipal waste, trading in recyclables, cleaning of outdoor and indoor areas, and summer and winter maintenance of roads and sidewalks.

Management systems certificates

The effectiveness of the implemented management systems is guaranteed by the constant supervision of external independent certification bodies. In 2023, the systems discussed above underwent adequate external supervision audits, which resulted in the maintenance of certificates of compliance with the relevant ISO standards.