2019 Investor Presentation May 2020
Table 01 04 Snapshot Final Remarks and Outlook of Contents Page 03 Page 27 02 05 Results Overview Appendix Page 07 Page 30 03 Regional Segments Page 17 3.1 Europe 3.2 Africa 3.3 Latin America 2
1 Earnings Release Snapshot
Snapshot Mota & Cia was founded in 1946 by Mr. Manuel António da Mota Incorporated in Portugal but with operations only in Angola The company won its first contract in Portugal in 1975 In 1987 Mota & Cia become listed in the Portuguese stock exchange In 2000, the Mota Family acquired Engil, merged Mota & Cia and Engil and became leader in Portugal not only in construction but also in waste management In the last 15 years Mota-Engil has grown more than nine times outside Portugal with Africa and Latam being the main focus on the internationalisation strategy Leader in Portugal | European Top 25 | World Top 100 Market Cap: €309 mn (08 April 2020) Main Shareholders: Mota Family (65%) / Mutima Capital (3.15%) / Norges Bank (2.31%) / Cobas (1.99%)/ Az Valor (1.97%) 4
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The Mota-Engil Europe Main Indicators Portugal World TURNOVER EBITDA Spain United Kingdom (million euros) (million euros) Poland Ireland 2,827 417 2,802 407 405 3 Continents 2,597 3000 450 2700 400 2400 22 Countries 350 2100 300 1800 250 1500 200 1200 150 900 100 50 600 0 300 Latin America Africa 2019 2018 2019 2017 2018 2018 Angola Mozambique Malawi 2019 ORDER BOOK South Africa TURNOVER 2019 Zimbabwe Mexico (million euros) (million euros) Uganda Peru Rwanda Brazil Guinea Conakry Colombia 27% 31% Cameroon Dominican Republic 1,448 22% 885 Ivory Coast Aruba 1,206 TOTAL: TOTAL: Kenya Panama 2,827 M€ 5,365 M€ 34% 51% 949 35% 2,711 1,007 Europe Africa Latin America La 6
2 Results Overview
Key BACKLOG RECORD TURNOVER EBITDA Highlights € 5.4 bn € 2,827 mn (+1% YoY) € 417 mn (margin 15%) 2 848 2 802 420 5,5 407 5,4 Europe Africa Latin America 2018 2019 Dec.18 Dec.19 2018 2019 NET INCOME NET DEBT CAPEX € 27 mn (+15% YoY) € 1,213 mn € 262 mn (Net debt / EBITDA 2.9x) 8
Net income up 15% YoY to € 27 mn Turnover of € 2,827 mn, Resilient EBITDA margin balanced between the at 15% with profitability regions and with the Non increasing in all the 2019 2018 YoY 2H19 YoY E&C businesses regions and with the accounting for 21% of Non-E&C businesses the total accounting for 26% of P&L (€ mn) the total Turnover 2,827 2,802 1% 1,482 (4%) EBITDA 417 407 2% 223 (3%) Margin 15% 15% 0 p.p. 15% 0 p.p. EBIT 188 200 (6%) 97 (12%) Margin 7% 7% (1 p.p.) 7% (1 p.p.) IFRS 16 impact in Net financial results Net financial results (72) (56) (29%) (21) 55% EBITDA was c. €18 positively impacted by Associates (5) 3 n.m. (7) n.m. mn forex gains, whereas Net monetary position 1 2 (12) n.m. 2 n.m. interest costs remained EBT 112 135 (17%) 71 14% broadly stable Net income 70 93 (25%) 45 (15%) Attributable to: Non-controlling interests 43 70 (38%) 26 (24%) Group 27 23 15% 19 4% Effective tax rate of Decrease of non- 37% controlling interests 1 The caption “Net monetary position” reflects the accounting, as hyperinflationary economies YoY (IAS 29), of Angola and Zimbabwe in 2018 and 2019, respectively. 9
EBITDA margin of 15% Turnover evolution in EBITDA increased 32% Europe reflected: (i) a YoY in Europe benefiting stronger activity in the from improved profitability 2019 2018 YoY 2H19 YoY E&C business in Portugal in the E&C in the 2H19 and (ii) a P&L breakdown (€ mn) stable E&S activity Turnover 2,827 2,802 1% 1,482 (4%) Europe 885 859 3% 479 6% Africa 1,007 905 11% 554 2% Latin America 949 1,069 (11%) 491 (16%) EBITDA margin in Africa Africa’s turnover was 1 Other and intercompany (14) (30) 54% (41) 51% up 11% YoY to €1 bn reached 21% with EBITDA 417 407 2% 223 (3%) resilient contributions Margin 15% 15% 0 p.p. 15% 0 p.p. from the main markets Europe 93 71 32% 52 121% Margin 11% 8% 2 p.p. 11% 6 p.p. Africa 214 192 11% 122 12% Margin 21% 21% 1 p.p. 22% 2 p.p. Latin America 118 140 (16%) 59 (40%) In Latin America, Brazil EBITDA margin in Latin Margin 12% 13% (1 p.p.) 12% (5 p.p.) Other and intercompany (8) 4 n.m. (10) n.m. and Peru project America was stable at execution showed a 12% double digit growth 1 Of which €57 mn related to companies that in 2018 were accounted in Europe’s region. 10
Significant growth in Mining, Oil & Gas and Power TOTAL BACKLOG EVOLUTION (€ mn) BACKLOG BY REGION E&C BACKLOG BY SEGMENT (2019) Total Backlog (2019) Latin E&C Backlog Mining Africa America 5,465 19% 5,365 51% 27% 5,138 €5.4 bn €4.6 bn 16% 4,422 4,777 4,598 Oil & Gas and 4,305 Power 22% 49% 16% 3,779 Europe Roads, Civil 2016 2017 2018 2019 Infrastructures Construction E&C represents 86% of the total backlog with a backlog to sales ratio of 2.3x and Others Significant growth in segments with Long-Term Contracts: Mining, Oil&Gas and Energy (35% of the total vs. 21% in FY2018) Important project awards YTD: - Mexico: First stretch of Tren Maya worth €636 mn (58% stake through Mota-Engil Mexico); - Mozambique: Construction of a pier bridge and an offloading facility (US$365 mn in a 50/50 JV with Besix for the LNG project); - Colombia: Construction of a Dam (Talasa ) in a €270 mn contract. 11
Major construction projects Exp. Year in backlog at December 31 1 Range of Segment Country (€ mn) Completion Project > 250 Mozambique Mining 2022 Vale Mining Moatize > 250 Mexico Roads 2020 Gran Canal highway > 250 Angola Ports 2021 Requalification of the Soyo Naval Base > 250 Brazil Roads 2020 BR-381 highway dualisation (section 3.1 and section 7) > 250 Peru Power 2020 Las Bambas dam (phase 4 under execution) [200;250] Mexico Roads 2020 Cardel-Poza Rica highway [200;250] Mexico Roads 2020 Tuxpan-Tampico highway [150;200[ Guinea Conakry Mining 2027 Mandiana gold mine [150;200[ Guinea Conakry Mining 2022 Siguiri gold mine [150;200[ Honduras Power 2023 El Tornillito hydroelectric facility [100;150[ Mexico Roads 2022 Cuapiaxtla-Cuacnopalan road [100;150[ Angola Power 2023 Calueque Dam - lifting system, irrigated perimeter and hybrid generation plant [100;150[ Angola Civil Construction 2020 General Hospital of Cabinda [100;150[ Uganda Roads 2021 Capacity Improvement Kampala Northern Bypass [100;150[ Brazil Oil&Gas 2022 Offshore platform - operational unit Rio Section B [100;150[ Mexico Urban infrastruct. 2022 Bordo Poniente landfill [100;150[ Mexico Civil Construction 2022 Fairmont Hotel 1 Selection of E&C projects above €100 mn. 12
Growth and long-term capex accounted for 54% NET CAPEX CAPEX BY REGION (2019) (€ mn) (€ mn) 120 287 Capex of € 262 mn 262 49 E&S capex of € 129 mn was mainly channelled to EGF (€ 89 104 71 69 mn) in order to comply with the regulators’ approved 129 investment for the current regulatory period 22 101 43 E&C CAPEX ( € 68mn) < 3% E&C Turnover 16 65 71 10 33 Maintenance capex c.4% of turnover due to the 2 82 68 17 optimization of planning, procurement and logistics Europe Africa Latin America Others 2019 2018 E&C Capex Maintenance Capex – long term contracts 1 Growth E&S Capex Capex – Long term contracts 1 1 Includes mining contracts in Africa and the Energy business in Latin America. 13
Working capital to Turnover ratio of 4% Working capital/Turnover For 2020, focus on ratio decreased to 4% structuring the contracts with the aim of minimizing Working capital the receivables payment evolution period and credit risk 25% 500 20% exposure 450 20% 400 17% Downward trend follows (i) reinforcement of cooperation 350 with multilaterals, ECA ´ s, 15% 300 (ii) higher exposure to private 250 475 clients, namely in mining and 7% 7% 10% 200 oil&gas sectors and to projects 367 4% financed by the client and 150 (iii) settlement of receivables 199 5% 100 177 mainly from Angola’s 115 50 Government 0% 0 Dec.15 Dec.16 Dec.17 Dec.18 Dec.19 1 Working capital (€ mn) Working capital/Turnover 1 Turnover of the last twelve months. 14
Solid CFFO of €459 mn FREE CASH-FLOW ( € mn) (+33% YoY: FY18 was €346 mn) CFFO €459 mn 200 118 Of which: €117 mn forex 35 €37 mn revaluation of 30 417 investment properties 262 €14 mn impairments 1 1,213 72 84 1 955 41 Net debt Dec.18 EBITDA Changes in working Corporate tax Net Capex Dividends Financial Capex Changes in Others Net debt Dec.19 capital financials paid perimeter 1 Net debt considers Angola’s sovereign bonds denominated in US$, US$ linked and kwanzas as “cash and cash equivalents ” which amounted to €210 mn (€224 mn nominal value) in December 2019 (€ 152 mn in December 2018) and Ivory Coast’s sovereign bonds that amounted to €13 mn in December 2019. 15
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