ulma construccion polska s.a. this presentation has been prepared by, and is the sole responsibility...

1

Ulma Construccion Polska S.A.

Roadshowpresentation

Warsaw, April2007

2

This

pre

senta

tion h

as b

een p

repare

d b

y, and is the s

ole

responsib

ility

of U

lma C

onstruccio

n P

ols

ka

S.A

. (the “C

om

pany”, “U

CP”)

. This

pre

senta

tion m

ay n

ot be d

istrib

ute

d in o

r in

to the U

nited S

tate

s o

f

Am

erica.

This

pre

senta

tion does not

constitu

te or

form

any part of

any offer

or

invitation or

inducem

ent

to sell

or

issue,

or

any solic

itation of

any offer

topurc

hase or

subscribe fo

r, any

securities o

f th

e C

om

pany, nor shall

it o

r any p

art o

f it o

r th

efa

ct of its d

istrib

ution form

the b

asis

of,

or

be r

elie

d o

n in c

onnection w

ith,

any c

ontract

there

fore

. Securities o

f th

e C

om

pany m

ay n

ot

be

offere

d o

r sold

in the U

nited S

tate

s o

f Am

erica a

bsent re

gis

tration o

r an e

xem

ption fro

m regis

tration.

Info

rmation in this

pre

senta

tion is s

ubje

ct to

change w

ithout notice, its a

ccura

cy is n

ot guara

nte

ed

and it does n

ot conta

in a

llm

ate

rial in

form

ation c

oncern

ing the C

om

pany. The fore

casts

and forw

ard

-

lookin

g

sta

tem

ents

conta

ined

in

this

pre

senta

tion

are

necessarily

based

upon

a

num

ber

of

assum

ptions and estim

ate

s th

at, w

hile

consid

ere

d re

asonable

by th

e C

om

pany,

are

inhere

ntly

subje

ct

to

sig

nific

ant

busin

ess,

opera

tional,

econom

ic

and

com

petitive

uncertain

ties

and

contingencie

s,

many of

whic

h are

beyond th

e C

om

pany’s

control, and upon assum

ptions w

ith

respect to

futu

re b

usin

ess d

ecis

ions that are

subje

ct to

change.Actu

al re

sults m

ay d

iffe

r m

ate

rially

from

those p

roje

cte

d. C

ertain

num

erical in

form

ation a

nd o

ther am

ounts

and p

erc

enta

ges s

et fo

rth in

this

pre

senta

tion m

ay not

sum

due to

ro

undin

g.

In additio

n,

certain

figure

s here

in have been

rounded to the n

eare

st w

hole

num

ber.

Legal restrictions

3

1.Speakers

2.Ulma Group

3.Why UCP

4.UCP business description

5.Financial results

6.Strategy

7.Secondary Offering

4

Andrzej Kozłowski

President of theManagement Board

Founder and father of success of Poland’s

leading manufacturer and supplier of formwork,

shoring systems.

Expert in construction and engineering.

For 18 years with the businessofUlma

Construccion Polska S.A.

EñautEguidazuAldalur

Vicepresident of theManagamentBoard

Vice-President of the Management Board,

CFO in UlmaConstruccion

PolskaS.A.

1998 -1999 Quality Engineer in NCR (Holland)

1999 –2000 Financial analyst in NCR (Holland)

2000 –2002 Accounting ManagerinNCR

(Holland)

2002 –2006 Financial auditor in ULMA

Construccion

Cristóbal Álvarez

General Director of ULMA Construcción

For 14 years with the business of ULMA

Construcción,inthebeginning as a Spanish

Market Director and later as anInternational

Market Director.

Speakers

Jose Ramon AnduagaAguirre

1996 –2002 CFOin UlmaGroup

From 2003 r. CFO in ULMA C y E, S. Coop.

Member of theManagement Board In ULMA

Construccion Poland.

JoséIrizar

DirectorofULMA ConstruccióninEurope.

For 11 yearswiththebusiness ofULMA

Construcción, since2005 responsiblefor

EuropeanoperationsoftheGroup.

Before2005 DirectorofUlmaHormigónPolímero,

andDirectorofUlmaAgrícola.

ULMA Group

UCP

5

1.Speakers

2.Ulma Group

3.Why UCP


5.Financial results

6.Strategy


6

Ulma Group

Ulma Group

�one of the largest business groups in northern Spain,

�over 40 years of experience in the business,

�business model comprising 4 cooperative companies and its

activity pivots around 7 strategic Business units

�more than 3,300 people employed in the Group, generating total

sales superior to EUR 600 m,

�part of Mondragón Corporación Cooperativa (MCC) -turnover of

EUR 11,000 m and a total workforce of 72,500.

GlobalPresence

�dating from 90s global expansion strategy,

�27 subsidiaries in nearly all continents,

�forecasted foreign sales ofEUR 250 m.

Focuson CEE Region

�2004 purchase of Bauma S.A.(„UCP”) in Poland

�strong CEE region presence through assets of UCP:

�UCP –Poland

�UlmaUkraina –UCP subsidiary

�Kazakhstan –UCP sales office

�Bauma Russia–Salesoffice

7

Ulma Group

Ulma’sBusiness Model

ULMA Agrícola

ULMA Construcción

ULMA Forklift Trucks

ULMA Handling Systems

ULMA Polymer Concrete

ULMA Packaging

Designand production of packaging equipment,

differentiated and all-encompassing offer

Business units

Design and manufacturing of products, including the service of

application and assembly engineeringin the technological areas of

Scaffolding,Formworks,Shoring, Bracing and Shuttering.

Logisticalsolutions, range of forklift trucks, thermal and electric,

counterweighted and indoor.

Specializationsin Prefabricated Systems for Construction, Conduits

for the collection of fluids by means of drainage systems and Building.

ULMA C y E, S. Coop

ULMA Manutención

ULMA HormigónPolímero

ULMA Forging

ULMA Forja

Legal Entities

Solutionsfor agricultural producers, integral projects of productive

systems in sheltered crops.

Areas of expertise

Manufacturerof forged accessories for Piping, Flanges and Fittings,

destined for the Petroleum and Energy Industry.

Engineeringfor the development of innovative solutions through the

design, assembly and maintenance of Automatic Logistics Systems.

Strongly diversified business model focused on providing services for construction sector

8

Ulma Group–financialresults

263,7

311

345

356

430

508

2000

2001

2002

2003

2004

2005

85,3

103

109

122

130

211

2000

2001

2002

2003

2004

2005

TotalSales(EUR m)

International Sales(EUR m)

CAGR 16%

+62%

Increasing sales strength...

generated in diversified geography …

1%2%

7%

15%

12%

63%

Africa

Oceania

Asia

North America

Latin America

Europe

14,4

26

2004

2005

86

106

2004

2005

backed by EBITDA and earnings growth.

EBITDA (EUR m)

Net profit (EUR m)

Source: TheIssuer

9

1.Speakers

2.Ulma Group

3.Why UCP


5.Financial results

6.Strategy


10

Why UCP

Facts

�UCP today -2nd largest distributor of formwork systemsin Poland

�Exploiting inter-group product transfer opportunities to strengthen UCP’sposition in all market segments

�Strong outlook for the future –projected vast infrastructure development in Eastern Europe

Strategy

�To become the no.1 player in distribution of formwork systemssector in Poland -till 2010

�Fundamental pillars of competitive advantage:

–Comprehensive product offer/high quality/technology

–Focus on providing highest quality of service

–Reliability among clients -supervision and management of contract throughout all project phases

�Dynamic organic growth in the home market thanks to:

–Expected secured long term growth in construction output in Poland

–Strong position of UCP in core growth markets –engineering, civil engineering, residential

�Potential additional value creation through presence in other growth markets: Ukraine, Kazakhstan, Russia

SPO

�SPO proceeds aligned with the strategy

�Value creation potential resulting from SPO evident already in 2007

�Post SPO shareholding structure/free float attractive to investors

11

1.Speakers

2.Ulma Group

3.Why UCP


5.Financial results

6.Strategy


12

Acceleratedpace ofchange

Founding ofBauma

Sp. z o.o.

1989

1996

1997-2004

2004 -2006

Change of legal status

into S.A.

Presence ofEI

Acquiring strategic

investor

2007 -……

Prospectspost SPO

�Reorganization of capital

Group

�Changes in the

Management Board

�Focus on rental as the core

competence of UCP

�Larger product portfolio

�Financial support from

Spain, granting Corporate

guarantees to the loans

signed in 2004 by Bauma

�Reorganization of some

production processes

�Reorganization of sales

force and warehouses in

Poland

�Rebranding Bauma to Ulma

�Acquiring funds from the

equity market + bank loans

�Investments in material and

warehouses

�Increasing export sales

�Increase of production

capacity

�New product development

�Improvements in IT systems

�Improvement in staff

management

�In the beginning

production of concrete

sett„Bauma sett”has

become synonym of

this product for years

�In 1991 also distribution

of formwork systems,

progressive

specialization in the

area of monolithic

technology

�IPO on WSE

�Activity in the area of road

construction

�Expansion beyond

Mazowieckie Province –first

subsidiary in Łódź

�Purchase of majority stake by

enterprise investors

�Slogan -100 products for

construction

�Developing of trade network in

Poland –15 subsidiaries planned

�1998 –Beginning of steel shores

production

�1999 –2000 Building of production

plant in Starachowice

�2000 –beginning production of

PRIMO

�2001 –starting export activity -

Ukraine

�2002 –beginning of DSD

production –bridge construction

system

13

Core

AssestsofUCP

UCP S.A.

UlmaSystem

UlmaUkraine

Russia

100%

100%

Rep. office

Production of formwork for UCP

Group

Distribution and selling of formwork systems

in Ukraine

UCP Capital Group

Sales network :

�11 sales offices

�8 warehouses

�40 dedicated salesmen

Regional division adjusted to

construction market output:

East

South

West

Distribution model in Poland

Kazakhstan

Asset mix fitted for further expansion in local and foreign markets

Rep. office

Sellingof formwork systemsin

Kazakhstan

Selling of formwork systemsin

Russia

14

Key components of UCP’s competitive advantage

�Highly skilled and experienced Management team,

�Expert sales/ project manager team,

�Ability to retain, employ and train new experts.

�Product offer of 24 framework/shoring systems

�Diversified sources of new products: (i) UlmaSystem (ii) Ulma Group

�Comprehensive product proposal for all market segments

–tech/civil engineering, residential

�Development of new products -R&D cooperation with Ulma Group

�Logistics/sales tailored to maximise market reach

�8warehouses in Poland/11 sales offices

�Limited operational risk –international businesses operating on salvaged

assets of UCP

�Ukraine –distribution of formwork systems, 2006 sales–PLN 8.14 m

�BaumaRussia –distribution of formwork systems, 2006 sales –PLN 4.28 m

�Kazakhstan –distribution/rental of formwork systems in Kazakhstan, 3rd marketposition,

2006 PLN 11,35 m.

Management

Know-how

Product mix

Distribution/Logistics

International presence

15

UCP’sbusiness model

Design and Planning

Project Engineering

Highest Quality

Rental Equipment

On-site Safety

Management

On-site Project

Management

Value Added for the Client

�Formwork Designing on

building-site

�Various Formwork selection

in construction

�Formwork systems designing

�Non standard formworks

designing

�Calculating of non typical

structures

�Non typical shoring

systems

�The largest comprehensive

product proposal of formwork

systems

�Possibility of designing non

typical wooden and steel

elements of formworks

�Supervision over formworks

assembly

�Possible formwork assembly

service

�Formworks are part of

safe pass system

�Designing protection

systems and wind

protection

�Providing formwork project

service of realized

investments

UCP’sapproach -Construction partner present on-site through all project phases

16

�PartiaHousing Estate in Warsaw

�EkoPark Housing Estate in Warsaw

�Eco Tower in Warsaw

�Villa Marina Housing Estate in Warsaw

�ZielonaGalicjaHousing Estate in Karkow

�JagodnoHousing Estate in Wrocław

Residential construction:

�StaryBrowarShopping Centre in Poznań

�The Polish Theatre in Warsaw

�Plaza Shopping centre in Lublin

�PasażGrunwaldzki Shopping Centre in Wroclaw

�New HQ of Polish Energy Network in Warsaw

�Terminal II in Warsaw Airport

�GaleriaCopernicus in Toruń

�ThePiramidaHotel in Tychy

�Cinema City in Toruń

�ZieloneTarasyShopping Centre in Elbląg

�RedutaShopping Centre in Warsaw

�GaleriaKazimierzin Krakow

�PromenadaIII Shopping Centre in Warsaw

�ArkadiaShopping Centre in Warsaw

�KrzywyDom in Sopot

�The Metropolitan Hotel in Warsaw

Civilengineering:

UCP –clients, references

Over 2000 projects realised during the year

�Budimex-Dromex

�STRABAG

�WARBUD

�Skanska

Selected projects:

�Bridge over the CzarnaPrzemszaRiver

�Highway bridge over The KwisaRiver

�Overpass in the SiekierkowskaRoute

�Buildings constructed down the A2 motorway

�Ringroadin PiotrkówTrybunalski

�Route 18 from Olsztyn to Golnice

�Overpass in Płowieckastreet in Warsaw

�Railway overpass WK2 & WK3 in Olsztyn

�Overpass junction in WołoskaStreet in Warsaw

�Berlin-Kaliningrad Route in Elbląg

�Route S-69, WD-23 overpass in Milówka

�The HulankaTunnel in BielskoBiała

�CzerniakowskaRoad Junction

Engineering

Bridges:

Sewage treatment plants:

�Katowice

�Koziegłowy

�Częstochowa

�Bolesławiec

�Płaszów

�Erbud

�Mostostal

Warszawa

�HOCHTIEF

Selected clients:

17

Market characteristics:

�Estimated value of Polish formwork/shoring market: PLN 350m –2006 estimate

�Market dominated by 4 major players: PERI, Ulma, Hunnebeckand Doka(88% market

share)

�Market entry barriers due to intensive capexrequirements –product portfolio/logistic network

�Bargaining power of clients (investors/general contractors) depending on project value

–the larger the project the higher the bargaining power of the client

�Apart from pricing Clients’decision on the supplier of services based on reliability and

possibility to deliver solutions in the envisaged project timetable

�Ulmaand Periperceived as market leaders in terms of product offering and quality of service

UCP’smarket share / competition

Distribution of formwork systemsmarket in Poland

Highly concentrated market dominated by 4major players

PERI

36%

Ulma

28%

Hunnebeck

15%

Doka

9%

Noe

5%

Others

7%

Source: The Issuer

18

1.Speakers

2.Ulma Group

3.Why UCP


5.Financial results

6.Strategy


19

Sales revenue 2003-2006

62 946

82 481

98 593

154 255

0

20 000

40 000

60 000

80 000

100 000

120 000

140 000

160 000

180 000

2003

2004

2005

2006

Net profit and EBITDA 2003-2006

7 846

24 021

44 856

75 854

-15 605

9 290

18 183

32 928

-40 000

-20 0000

20 000

40 000

60 000

80 000

100 000

2003

2004

2005

2006

EBITDA

Net profit

UCP’sfinancialperform

ance

CAGR 25%

CAGR 46,7%

CAGR 52,5%

Source: TheIssuer

20


ance

Revenue structure –market segments

Revenue Structure

47,75%

46,90%

33,85%

18,00%

15,04%

22,96%

34,25%

38,06%

43,19%

2004

2005

2006

Ukraine

Russia

Kazakhstan

International sales[ths. PLN]

Source: The Issuer

Cost structure

17 252

15 004

25 766

21

153 866

85 759

12 390

38 940

40 858

44 901

68 107

9 781

153 866

39 212

114 654

2005

243 319

142 551

17 227

86 420

52453

90 098

100768

9.781

243 319

61725

181594

2006

Assets

1. Non-current assets

2. Current assets

Total assets

Equity and liabilities

1. Share premium account

Total equity

Liabilities

1. Long-term liabilities

2. Short-term liabilities

Long-term loans and borrowings

Short-term loans and borrowings

Total liabilities

Total equity and liabilities

Balance sheet–[thsPLN]


ance

Source: TheIssuer

22

18 181

11,81%

26,69%

4 110

22 291

3 675

583

44856

25 383

384

7 768

5 078

38 613

59 980

98 593

2005

32928

13,53%

32,67%

8 134

41 062

4 987

428

75 854

45621

355

9 795

7 925

63 706

90 549

154 255

2006

Sales revenue

Cost of sales

I. Gross profit on sales

Cost of Sales and marketing

General administrative expenses

Other operating expenses

II. EBIT/Gross operating profit/loss

EBITDA

Financial income

Financial expenses

III. Profit before tax

Current corporate income tax

ROE

ROA

IV. Net profit

Consolidated

profit andlossaccount[thsPLN]


ance

Source: TheIssuer

23

1.Speakers

2.Ulma Group

3.Why UCP


5.Financial results

6.Strategy


24

UCP Strategy

Main Sources of

competitive advantage

�Product mix

Polish market

Become market leader in Poland through:

�Investment in products:

(i) increasing rental stock to fit the market potential

(ii) higher value rental equipment which generates

stronger margins

�Focus on sectors, which value engineered solutions

�Maximising utilisation rate and market reach through :

(i) reorganising logistics/distribution network –target

structure 3large service hubs + 6warehouses

(ii) optimising distance to construction projects

Leveraging growth potential in international markets

�Kazakhstan –further strenghteningof market position

�Russia, Ukraine –opportunistic approach with low

degree of operational risk

Current status

�24 complex formwork systems

�Use of Ulma Group in R&D to

design new products

�Presence in new

markets

Current international presence:

�Ukraine –Sales dynamics

2004-2006 –23,5 %

�Kazakhstan –3rd position

�Russia –Sales dynamics 2005-

2006 –22%

�Focus on

maximising

utilisation rate

�Warehouses in 8cities

�Project management throughout

all phases of construction

process

UCP Strategy

25

UCP’starget –logistics/distribution model

8 Warehouses:

�Warsaw

�Łódź

�Kraków

�Wrocław

3Service Hubs:

�Warsaw

�Poznań

�South Region

Value creation through maxim

ising utilisation rate

6 Warehouses:

�Gdańsk

�Bydgoszcz

�NowaSól

�NowaSól

�Poznań

�Bydgoszcz

�Gdańsk

�Improved rotation of products

�Consolidating larger product potential in a single location

�Decrease of fixed costs associated with maintenance of warehouses e.g. forklifts, transporting costs, level of employment

�Higher product safety

Current

Planned

�Warszawa

�Łódź

�Wrocław

26

UCP–Opportunities Outw

eigh Threats

Threats

�High operating leverage

�Risk of retaining key employees

Opportunities:

�Leveraging know-how and global presence of UlmaGroup

�Secured long-term demand for distribution of formwork systems

in Poland

�Reorganisation of logistic network creating opportunity to

maximise utilization rate

�International presence in high growth markets.

27

Sources of financing in 2007/2008:

�Issuance of shares

�Bank loans

�Retained earnings

UCP–Investm

ent programme

Construction of 3 service hubs:

�Poznań(2007) –recently purchasedrealestateassets

�South region (2007)

�Warsaw (2007/2008)

2007-2008

PLN 60 m

Investment in products/materials

PLN110 m

PLN100 m

2008

2007

2007/2008

∑PLN 270 m

Source: The Issuer

28

1.Speakers

2.Ulma Group

3.Why UCP


5.Financial results

6.Strategy


29

Secondary

Public Offering

Shareholding structure preSPO

Shares offered

Shareholding structure post SPO

Capital increase

upto365,000

Shares offeredfor sale by Ulma Cy ES

upto 800,000

Total

upto 1165,000

Free float 2.53%

Ulma 97.47 %

Free float

24.51%

Ulma 75.49 %

Source: TheIssuer

LOCK-UP: 12 monthsfor UlmaCy ES

30

Timetable of the offering

Publication of offering memorandum research report

Roadshow

Bookbuilding

Pricing

Subscription

27March 2007

11-18 April2007

17-18 April2007

18 April2007

19-24 April2007

30 April2007

Listing of new shares on WSE

ulma construccion polska s.a. this presentation has been prepared by, and is the sole responsibility...

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