Dear Shareholders,

In 2023, Mostostal Warszawa Group steadily achieved its goals, implementing projects in all construction segments and deepening the diversification of its activities. This was possible thanks to the commitment of employees and a consistently implemented strategy.

Thanks to the effective cooperation of the companies forming the Capital Group and to using the synergy effect, Mostostal Warszawa Group as a whole structure remains in solid condition and takes advantage of development opportunities. This is evidenced by the indicators given below.

The Consolidated Sales Revenue of Mostostal Warszawa Group in 2023 amounted to PLN 1.7 billion (a 3,8% increase compared to 2022), with a gross profit of PLN 25,6 million. The Group's cash position at the end of 2023 stood at PLN 282 million. Cash generated from operating activities reached PLN 184 million. The order book value of Mostostal Warszawa Group at the end of 2023 reached PLN 3,3 billion, and in 2023, the Group's companies signed contracts worth PLN 842 million. Employment within Mostostal Warszawa Group totaled 1,520 employees.

In 2023, Mostostal Warszawa Group reinforced its position among construction market entities, efficiently addressing challenges stemming from external factors. These included a difficult macroeconomic situation characterized by persistently high inflation and labor costs throughout most of the year, as well as direct and indirect consequences of the political situation in Poland and the Eastern European region. A significant challenge was the uncertainty regarding the timing of the European Union's financial resources activation, including those from the National Recovery Plan and the associated slowdown in investment plans, as well as the impact of the ongoing war in Ukraine, such as restricted availability and price fluctuations of basic construction materials.

Despite these challenges, Mostostal Warszawa Group smoothly carried out its core activities and supporting functions. We successfully fulfilled our commitments to Investors, Contractors, and Employees. This was made possible by well-planned processes and procedures, as well as appropriate infrastructure investments, including equipment and clean energy sources, such as the photovoltaic farm established in the opened in recent years equipment and transport base in Urzut near Warsaw, and mobile photovoltaic installations utilized in ongoing construction sites.

Mostostal Warszawa Group's effective response to current market challenges includes efficient contract management, active and prudent bidding policies, as well as diversification of activities and mutual support among companies within the Group.

Our order portfolio, supplemented by contracts signed in 2023, is stable, diversified, and ensures further development of Mostostal Warszawa Group. Additionally, our production potential, associated with the construction of specialized engineering teams and investments in equipment, including for bituminous mass production, creates prospects for further growth in the coming years. We have demonstrated the validity of our strategy, which focuses on delivering services at the highest level and maintaining proper cooperation with our Clients and Contractors. The composition of the Capital Group, along with the resulting close collaboration and exchange of knowledge and experience, is a significant asset contributing to organizational and financial success.

In 2024, we intend to maintain active, but selective and secure bidding taking into account the rise in material prices and labor costs. We also aim to be an active participant in the transformation of the Polish energy sector and leverage our knowledge and experience to support the reduction of environmental burdens in energy and industry.

Miguel Angel Herras Llorente
President of the Management Board
Mostostal Warszawa