Questions asked to the company and answers provided

1.Do you see higher interest rates globally as a challenge for your business?

October 25 2022

Interest rate rises are not a threat to Budimex’s business. The company is characterised by a strong net cash position (nearly 2 billion at the end of the first half of the year), thanks to which, at the level of financial income, Budimex is a beneficiary of the current  market situation. In the first half of the year, the company generated 48.5 million in financial income (vs. 5.2 a year earlier), mainly due to a strong balance sheet structure and an increase in available deposit levels.

2.Is the strong US dollar positive or negative for your business?

October 25 2022

The US dollar is neutral for Budimex. The company does not earn in US dollars nor does it incur costs.
On the other hand, Budimex has little exposure to the euro exchange rate. Both on the revenue and cost side, albeit it is limited to single contracts (revenue) and single assortments (cost), but we try to hedge this risk as early as we possibly can.

3.Do you see the European energy crisis as a challenge for your business?

October 25 2022

The energy crisis may have an indirect impact on the situation of the construction industry. Rising costs of selected raw materials may affect both the demand and supply side of investment. The PMI for domestic manufacturing fell to 42.1 points in July, suggesting that the recession in the economic sector has already begun.
Nevertheless, in the current situation, strong and secured companies stand to gain in the long term. The company has a healthy and balanced order backlog, a strong cash position and, moreover, is regarded by the state as one of the key players from a national strategic perspective. In addition, it is worth noting the valorisation of public contracts by the main contracting authorities that also mitigates the risk for roads and railways business lines.

4.Do you expect your company’s earnings in July-December 2022 (calendar Q3 & Q4) to be lower or higher than in July-December 2021? By how much?

October 25 2022

Budimex does not publish forecasts and it is not possible to provide information on financial plans to individual entities so that each shareholder and potential shareholders have the same access to information. We encourage participation in investor conferences during which all stakeholders can learn about the expectations of the company’s management and ask this type of question.