The Company's presentation Warsaw, March 2016 Key figures 227,541 - - PowerPoint PPT Presentation

The Company's presentation

Warsaw, March 2016

Key figures

#1

Leader of the market of reinforced concrete prefabricated elements in Poland

• 13,100 K PLN

net debt in 20156

about 1000

people working in the Capital Group1

4

plants manufacturing reinforced concrete prefabricated elements (Poznań, Bielsko Biała, Gdańsk, Mszczonów)

227,541 K PLN

value of the order portfolio2 as on 31 Dec 2015

29,853 K PLN

adjusted3

EBITDA in 2015

35,759 K PLN

EBITDA in 20154

(1) Including cooperating ones, as on 31 Dec 2015 (2) It refers to contract orders for prefabricated elements and construction services (3) EBITDA - operating profit increased by depreciation and reduced by profit from an occasional purchase in the amount of 5,906 K PLN (4) EBITDA - operating profit increased by depreciation (5) Net profit reduced by net profit from an occasional purchase (6) Net debt means a difference between interest-bearing debt (loans and leasing) and cash and cash equivalents

17,747 K PLN

adjusted5 net profit in 2015 22,531 K PLN

net profit in 2015

350,396 K PLN

sales revenues in 2015

Very good results in 2015

(1) Gross sales profitability defined as gross profit from sales divided by sales revenues (2) EBITDA profitability as the sum of operating profit and depreciation divided by sales revenues (3) Operating profitability as the quotient of operating profit and sales revenues (4) Net sales profitability as net profit divided by sales revenues

328 233 350 396 15,9% 17,7% 2014 2015

Sales revenues, gross sales profitability(1)

(thousand PLN, %)

15 850 17 747 22 531 4,8% 5,1% 2014 2015 adjusted 2015

Net profit, net sales profitability(4)

(thousand PLN, %)

23 838 29 853 35 759 7,3% 8,5% 2014 2015 adjusted 2015

EBITDA, EBITDA profitability(2)

(thousand PLN, %)

19 751 23 057 28 963 6,0% 6,6% 2014 2015 adjusted 2015

Operating profit,

• perating profitability(3)

(thousand PLN, %)

• A visible increase in revenues, EBIT, EBITDA and profit after taxation

Very good results in 2015

(1) Net debt is a difference between the total debt ratio and cash and its equivalents (2) EBITDA adjusted - operating profit increased by depreciation and reduced by profit from an occasional purchase

• Maintaining the net debt ratio below zero and further improvement of the balance sheet position of the Group
• 27 229
• 13 100

2014 2015

Net debt(1)

(thousand PLN)

14 560 9 821 23 838 29 853 2014 2015 Net cash from operations EBITDA adjusted

Cash flow from operations(2)

(thousand PLN)

Fixed assets

(thousand PLN)

110 869 174 426 2014 2015 128 137 177 330 2014 2015

Equity

(thousand PLN)

Sales revenues

Sales revenues per segment*

(thousand PLN)

• Manufacturing prefabricated elements as a leading segment (‘contracts – prefabricated elements’), generating a large part of revenues

* In 2014, revenues not assigned to the segments were not taken into consideration. 2014 – 2015

190 763 67 779 43 467 19 560 321 570 237 558 77 943 32 929 5 822 354 251

Contracts - prefab elements Contracts - construction services Manufacturing services The other Total

A considerable decrease in ‘The other’ segment results mainly from transactions excluded from consolidation due to incorporating CNP into the Group. In 2014, the sales of raw materials and materials to CNP was a significant element of this segment.

2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 + 10.2%

• 70.2%
• 24.2%

+ 14.9% + 24.5%

Operating results per segment

27 803 37 137 5 628 2 552 1 154 Contracts - prefab elements Contracts - construction services Manufacturing services The other Total

Segment operating result, segment operating result profitability(1)

(thousand PLN, %)

2015

11,7% 7,2% 7,7% 19,8% 10,5%

(1) Segment operating result profitability calculated as the quotient of the segment operating result and the segment sales revenue

20 515 31 505 1 572 4 295 5 124 Contracts - prefab elements Contracts - construction services Manufacturing services The other Total 10,8% 2,3% 9,9% 26,2% 9,8%

2014

• Maintaining the profitability ratio of the segment operating result in total with nominal growth by 18%

Sales revenues

• Poland as a leading sales market, with a high dynamics of growth, stable revenues from the German market and growing sales in the Scandinavian market

2014 – 2015 Sales revenues per geographic area*

(thousand PLN)

245 319 40 806 35 445 321 570 264 331 56 767 33 153 Poland Scandinavia Germany Total + 7.7 % + 39.1%

• 6.5 %

+ 10.2% 354 251 2014 2015 2014 2015 2014 2015 2014 2015

* In 2014, revenues not assigned to the segments were not taken into consideration.

Selected stock exchange indices

12,36% 12,70% 2014 2015 6,20% 7,07% 2014 2015

ROE index(1)

(%)

ROA index(2)

(%)

(1) The index calculated as the ratio of net profit to equity (2) The index calculated as the ratio of net profit to the sum of assets

• Maintaining the ROE index at the desired level, a noticeable improvement in the ROA index

A consistent production growth

• Since the moment when the current shareholders took control, the Pekabex Group has been systematically increasing its manufacturing capacities and production.
• The purchase of Kokoszek Prefabrykacja (a plant in Gdańsku) has increased its manufacturing capacities since May 2015.

40,5 44,9 45,2 57,6 55,6 4,6 7,4 13,7 12,3 8,8 0,0 20,0 40,0 60,0 80,0 100,0 2011 2012 2013 2014 2015

Production (thousand m3) – the Pekabex Group

Poznań Bielsko-Biała Gdańsk

• Production in total

(thousand m3)

52.6 76.7 71.3 49.5 40.5

* Until 2014 – production for the Pekabex Group together with CNP

Selected essential contracts completed in 2016

‘Nytt Barnsjukhus- Göteborg-Sweden’

The contract value:

32,200 K PLN ‘Lech Świątek’

The contract value:

13,920 K PLN ‘Branddörren- Stockholm-Sweden’

The contract value:

15,770 K PLN ‘Twardogóra Production and Assembly Hall’

The contract value:

11,435 K PLN ‘Garnison Helikopterhangar Ronneby-Sweden’

The contract value:

15,770 K PLN ‘Furiren- Stockholm-Sweden’

The contract value:

16,112 K PLN

The large order portfolio

• The Group systematically builds a strong and diversified order portfolio, which is going to occupy the production department in the next periods.
• In 2015, the Grupa Pekabex for the first time obtained contracts with delivery time longer than one year.

108 93 140

179 49

31.12.2012 31.12.2013 31.12.2014 31.12.2015

Contract sales to be carried out next year Contract sales to be carried out in 2017-2018

228

Value of the order portfolio – including solely contract sales1

(million PLN)

1 – It takes into account contract sales: segments: contract execution – prefabricated elements and contract execution – construction services

• Backlog – the aggregate value of the contracts signed for the Pekabex Group, which were concluded with a specific date; it doesn’t take into account any contracts planned but not concluded yet;
• The final contract revenues depend on many factors out of control of the Group;
• The value of the order portfolio divided into individual periods/years, which results from the payment schedules mentioned in the contracts, assumes timely contract execution, including the lack of delays and other

unforeseeable events that could affect the execution of this contract.

Selected essential contracts signed in 2016

The Framework Agreement with Veidekke Entreprenab AB

The estimated value of future orders to be executed in 2016–2018

118,000 K PLN ‘Olivia 5 – annex’

The contract value:

69,627 K PLN

(increasing the contract value by 52,478 K PLN)

‘Kv Kvarnbacken Norrköping- Sweden’

The contract value:

54,236 K PLN

Purchasing a plant in Mszczonów

ERGON – purchase of an enterprise

(15 Jan 2016)

Subject of purchase:

Manufacturing plant in the Mszczonów district near Warsaw

Net selling price:

45,100 K PLN

(increased by the net value of stocks: 4,429,119.16 PLN)

• Taking over a modern plant
• Strengthening the leader’s position in the domestic market
• Increasing the total production capacities by about 50 thousand m3 a year
• Intensification of sales in the central and eastern part of Poland
• Optimizing the costs, e.g. transport costs
• Taking over specialized personnel – about 170 people
• The value of the taken-over order portfolio: 21,951 K PLN

Thank you for your attention