Comments on the financial data for the first half of 2014

Year 2014 is the first year of the new EU budget for 2014-2020. Building a portfolio of orders for future years by obtaining the biggest number possible of road contracts and entry into new business segments is now the main task of the Budimex Group.
The Budimex' portfolio of orders at the end of June 2014 is worth of 3.93 billion and this is lower value than at the end of 2013 by 9.4%. The value of contracts signed in the first half of 2014 years was 1.41 billion, is about 746 million zlotys less than in the corresponding period of the previous year.
The relatively low value of the portfolio of orders and contracts signed in the first half of 2014 is temporary and the reason of this situation is the slower than expected pace of signing contracts from a new perspective. The total value of contracts currently awaiting signature by Budimex Group or signed after June 30, 2014 is 2.8 billion dollars.
The essential part of this amount are road tenders announced by GDDKiA, including projects financed from a new perspective of the EU. To this date, 25 contracts were settled, with seven of them Budimex SA submitted the most cost-effective deal. Their total value - for Budimex SA - 1.7 billion dollars.
In addition, on the 10th of July 2014 an agreement was signed for the construction of a new power unit in the Turow power station, which Budimex SA share in the consortium is 22.31% (725 million zlotys). This is the first such contract in the history of the Budimex Group. Budimex is interested in the implementation of the next energy contracts. Budimex carefully examines the planned investments (including the steam-gas blocks in Zeran Power Plant and Power Plant Łagisza) and participates in several tenders in the field of energy (for the construction of CCGT Power Station Grudziadz, to build a desulphurisation plant in Ostroleka CHP).
Therefore, the Group reported plans to increase employment of professionals in the energy industry.

In the first half of 2014 the Group improved sales and profitability at every level. Maintained a high level of cash, despite the payment of a dividend in May of historically high value of 303 million, respectively, and received the highest level for years pre-sale.
In the analyzed half of 2014 the Group reported consolidated sales higher by 13.4% compared to the same period of 2013 - taking into account the comparative data, it is without taking into account the income of Budimex Danwood sold in December 2013. In the same period, the construction/building production increased by 9.8% year on year.

Budimex Group's operating profit earned in the first half of the year increased by 42.4% compared to the previous year, compared to the data does not contain the results of Budimex Danwood. Profitability at all other levels result was also significantly higher.
Improving the profitability of the Group is a consequence of the increase in margins in the construction segment due to lower prices of building materials and subcontractors.

The Group managed to remain a very high level of net cash positioning the first half of a year, which at the end of June amounted to almost 913 million zlotys. This represents an increase of 43% compared to June of 2013. A good cash position is mainly attributed to the Group's property development business.

During the first half of 2014, the improving economic situation in the housing market has contributed to the achievement of the highest level of pre-sale for several years. During this period the Budimex Real Estate pre-sold 553 apartments, which is almost twice more than in the same period last year.

In the first half of 2014 years Budimex Real Estate introduced a nearly 900 apartments in six new projects. In the second half of 2014 the company plans to offer another 1,600 homes, including more than 1,000 in the next four phases of the project New Czyzyny in Krakow. This project is a response to the demand of our market in Krakow. Meets program criteria Apartment for Young, which in this city so far can be used only to a small extent. By creating an attractive offer Budimex Real Estate may pre-sell 1500 flats throughout 2014 year.

The other activities of the Group include companies Budimex Elektromontaż Poznan and Wroclaw Budimex Parking. Adopted at the beginning of the year the company's sales plan of the Elektromontaż Poznan has not been changed.
Budimex Parking Wroclaw, established to implement the project of building and managing the parking in Wroclaw in the form of a public-private partnership, has closed the construction works in accordance with the approved schedule. When planning the development of this type of business, the Group is watching closely a few projects with a value of 30-50 million each.