Comments for the 1st half of 2012

This increase is mainly the result of the construction segment, whose sales increased in the comparable period of nearly 34%.
In the first half of this year the Group generated a profit at the operating level of over 101 million zł, while in the same period of 2011, more than 145 million zł. The main reason for the decline in operating profit are one-off costs and provisions related to the restructuring of PNI (about 30 million zł) and lower profit development activity resulting from lower sales of apartments. The decline in profitability has also been a significant increase in the cost of implementation of road contracts (impossible to predict when signing contracts rise in prices of construction materials by 40%).
In the first half of 2012, due to the cautious approach regarding the possibility of settlement of differences that reduce the income tax base in PNI Sp. with o.o in subsequent years, the Group managed assets not recognized deferred tax assets in the amount of 12 million zł, which contributed to the deterioration of the Group's net result in the same amount.
In the first half of this year development segment reported a nearly 54% drop in sales compared to the same period in 2011, despite the fact that in the first half of this year Budimex Nieruchomości has sold 243 flats, while in the same period of 2011 267. Reducing the level of sales due to the large share of sales of the first half of this year markets of Krakow and Poznan, characterized by much lower prices of flats, compared to the Warsaw market, whose share in the first half of 2011 sales amounted to 100%.
In the first half of this year. Budimex Nieruchomości pre-sold 210 apartments (without reservation), while in the same period last year, 405 units. For the full year 2012 will not rule out pre-sale at up to 20% less than in 2011, but I expect more revenule from sales than last year.
In the first half of this year Budimex SA has signed contracts worth 921 million zł, while in the same period of 2011, about 2.9 billion zł, which stems from our concern for "healthy" portfolio and a very selective approach to contracts and bidding. Order portfolio at the end of June amounted to 6.9 billion zł. Today, however, we are waiting to sign new contracts with a value of 1.3 billion zł (on the basis of tenders, which offers Budimex Group companies have obtained the first place).
The Budimex Group's net cash position, including their own cash and short-term securities, less the external sources of funding at the end of June 2012 decreased by 340 million zł in relation to the level at the end of June 2011, but it must be remembered that in May this year Budimex paid a dividend in the amount of 280 million zł.