PRELIMINARY FINANCIAL RESULTS FOR 2023 OF THE DEKPOL GROUP: EFFECTIVE UTILIZATION OF MARKET OPPORTUNITIES AND SYNERGY WITHIN THE GROUP IN A CHALLENGING ENVIRONMENT

The DEKPOL, Group conducting its business activities in general contracting, property development, and production of buckets and accessories for construction machines industries, has released its preliminary financial results for the year 2023. The Group's revenues for the period amounted approximately PLN 1.56 billion, representing a year-on-year increase of 12%. The Group achieved an EBITDA result in the amount of approximately PLN 130 million (compared to PLN 136 million in 2022). In 2023, the Group concluded the year with a net profit of approximately PLN 80 million (compared to PLN 78.9 million in 2022).

As of December 2023, the net debt/EBITDA ratio stood at a secure level of approximately 0.4.

Commentary of Management to the preliminary results for the year 2023

We are very pleased with the results achieved by the Group in 2023. The second half of the year proved to be particularly strong in both - General Contracting and Property Development segments. Dekpol Budownictwo is strengthening its position in the industrial-logistics investment market, gaining new references, and developing new competencies, such as building hall systems from prefabricated elements and offering 'design and build' services. In the property development segment, the strategy of having a diversified portfolio allows flexible response to market changes, including significant revival in the popular sector following introduction of the "2% Safe Mortgage" program. Additionally, Dekpol Deweloper effectively leverages its strong brand in the premium segment - 'second home' type apartments delivered by us in attractive coastal locations are gaining popularity among customers. Despite market challenges, the situation at Dekpol Steel is gradually stabilizing, and the implemented changes give reason to expect a gradual return to expected results for this segment in the medium term. It is also worth noting the steadily growing contribution to the Group's results from the prefabrication segment. In summary, thanks to strategic diversification, effective utilization of market opportunities in various segments, synergy within the Group, and a solid financial situation, DEKPOL successfully achieves its goals and attains very satisfactory financial results, even though the market in which we operate remains demanding and highly variable." - says Mariusz Tuchlin, President of Management Board of DEKPOL S.A.

In recent years, the entire DEKPOL team has worked hard to ensure that the Group can proudly be recognized as a reliable partner, highly regarded by customers, contractors, investors, and financial institutions. We maintain operational stability and consistently execute business plans, as reflected in the published preliminary results for 2023 and undoubtedly contributed to the success of our bond issuances last year. Our priority remains to uphold the safety and financial stability of DEKPOL, serving as the foundation for further strengthening the Group's market position, especially considering the continually growing scale of our business. - adds Katarzyna Szymczak-Dampc, Vice-President of Management Board, Financial Director of DEKPOL S.A.

As of December 31, 2023, it is estimated that the General Contracting segment of the Dekpol Group had contracts in its portfolio for external entities with a total contractual value of over PLN 1,532 million net (as of the end of 2022: PLN 1,315 million), with projects yet to be completed amounting to approximately PLN 535 million net (as of the end of 2022: approximately PLN 454 million). Additionally, the estimated value of General Contracting segment contracts carried out as a part of intra-group business activities for the Property Development segment, based on the contractual value, totaled over PLN 318 million net (as of the end of 2022: over PLN 420 million), with projects yet to be completed amounting to approximately PLN 94 million (as of the end of 2022: PLN 139 million net).