Investor Presentation A World of Inspiration May 2019 2 Index 01 - PowerPoint PPT Presentation

Investor Presentation A World of Inspiration May 2019

2 Index 01 04 Snapshot Appendix Page 3 02 Page 30 Results Overview Page 7 03 Regional Segments Page 18 Europe Africa Latin America

Snapshot  Mota & Cia was founded in 1946 by Mr. Manuel António da Mota 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 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 as the main focus on the internationalisation strategy  Leader in Portugal | European Top 30  Market Cap: €564 mn (30 April 2019)  Main Shareholders: Mota Family (65%) / Norges Bank (3.78%) / Mutima Capital (3.0%) / Az Valor (2.54%)/Cobas (1.99%) 3

6 Index 02 Results Overview Page 7

7 Key Highlights Europe Africa Latin America  Record backlog  Record Turnover  Resilient EBITDA €5.5 bn €2,802 mn €407 mn (margin 15%) 5.5 5.1 4.4 Dec.16 Dec.17 Dec.18 Net profit Net debt  Capex   €287 mn €24 mn €955 mn (gearing 2.3x)

8 Net income up to €24 mn P&L (€ mn)  Turnover reached €2,802 mn with all regions presenting a positive trend YoY 2H18 YoY 2018 2017 Turnover 8% 11%  2,802 2,597 1,551 Strong EBITDA margin of 15%, mainly driven EBITDA 1% 4% 407 405 231 by Africa an Latin America Margin (1 p.p.) (1 p.p.) 15% 16% 15% EBIT 8% 20% 200 186 110  Margin 7% 7% (0 p.p.) 7% (0 p.p.) Net financial results reflect positive forex Net financial results 46% 11% (55) (102) (49) impact Associates 21% (4%) 3 3 2 Net monetary position 1 n.m. n.m. (14) 3 (14)  Effective tax rate of 31% EBT 135 90 50% 63 (62%) Net income 52% (139%) 93 61 52 Attributable to:  Net income improvement was mainly driven Non-controlling interests 70 60 17% 34 38% by businesses without minorities Group 24 2 n.m. 18 n.m.  IAS 29 had a negative impact of €7 mn in EBITDA and €15 mn in net income 8 1 The caption “Net monetary position” reflects partially the accounting of Angola as a hyperinflationary economy (IAS 29).

9 EBITDA with continued growth reaching €407 mn P&L breakdown (€ mn)  Europe turnover reflects stable activity, 2018 2017 YoY 2H18 YoY notwithstanding lower profitability 8% 11% Turnover 2,802 2,597 1,551  Africa 2H18 activity showed a strong Europe 859 828 4% 453 1% acceleration, a trend that is expected to Africa 905 860 5% 543 6% 11% 19% Latin America 1,069 960 582 continue in 2019 Other and intercompany (30) (51) 41% (27) 43%  1% 4% EBITDA 407 405 231 Africa EBITDA margin increased to 21% (up Margin 15% 16% (1 p.p.) 15% (1 p.p.) 2p.p. YoY) with a balanced contribution from Europe 71 141 (50%) 24 (76%) the main markets Margin (9 p.p.) (17 p.p.) 8% 17% 5% Africa 192 164 17% 110 28% Margin 21% 19% 2 p.p. 20% 2 p.p.  Turnover in Latin America benefited from good 28% 19% Latin America 140 109 98 project execution pace which led to a double Margin 2 p.p. 0 p.p. 13% 11% 17% Other and intercompany 4 (10) n.m. (1) 91% digit growth (11% YoY) with increase in EBITDA margin 9

10 Record backlog of €5.5 bn Backlog by region E&C backlog by segment Total backlog evolution (€ mn) Total Backlog E&C Backlog 5,465 Mining E&C Turnover Latin 5,138 15% Oil&Gas America Roads, and Power 27% 4,422 infrastructures 6% 4,777 and others 4,305 58% Africa 3,779 50% Civil Construction 21% Europe 23% 2,299 2,046 1,768 2016 2017 2018  Backlog up €327 mn in 2018 to €5.5 bn, of which 87% relates to the construction activity E&C backlog to sales 1 ratio of 2.1x   Strong commercial perspectives for 2019. 10 1 Ratio calculated as follows: E&C Backlog/E&C Turnover.

11 Major construction projects currently in backlog Exp. Year of Project 1 Range (€ mn) Country Segment Completion Vale Mining Moatize > 250 Mozambique Mining 2022 Gran Canal highway > 250 Mexico Roads 2019 Classes: G1 Caribbean; G2 Eje Cafetero - Pacific; G3 Antioquia - Eje Cafetero - Pacific > 250 Colombia Civil Construction 2020 Las Bambas dam (phase 4 under execution) [200;250] Peru Power 2020 Cardel-Poza Rica highway [200;250] Mexico Roads 2019 Tuxpan-Tampico highway [200;250] Mexico Roads 2019 BR-381 highway dualisation (section 3.1 and section 7) [200;250] Brazil Roads 2020 Siguiri gold mine [150;200[ Guinea Conakry Mining 2022 General Hospital of Cabinda [100;150[ Angola Civil Construction 2020 Capacity Improvement Kampala Northern Bypass [100;150[ Uganda Roads 2021 Fourways Mall Extensions [100;150[ South Africa Civil Construction 2019 Urban Bordo Poniente [100;150[ Mexico 2020 Infrastructures Offshore platform - operational unit Rio Section B [100;150[ Brazil Oil&Gas 2022 11 1 Selection of E&C projects above €100 mn.

Committed to decrease net debt/EBITDA Committed to decrease net debt Net debt 1 and EBITDA evolution (€ Mn) Working capital evolution 525 25% 20% 17% 20% 15% 425 7% 7% 10% 5% 325 475 0% -5% 367 225 -10% -15% 199 177 125 -20% Dec.15 Dec.16 Dec.17 Dec.18 Working capital (€ mn) Working capital/Sales Net debt/EBITDA Total net debt EBITDA  Despite the increase of activity, net debt and gearing showed a decreasing trend  Working capital/Turnover ratio at a very comfortable level (7%)  Focus on structuring the contracts with the aim of minimising the receivables payment period and credit risk exposure  Establishment of agreements and cooperation with multilaterals, ECAs and pre-payments (for large contracts) are key to reach that goal 12 1 Excludes leasing and factoring. Sovereign Angolan bonds considered as “cash and cash equivalents”.

13 Total capex of €287 mn  Africa accounted for 65% of the total capex, including c.€101 mn of equipment related with long-term mining projects  E&S capex of €104 mn was mainly channelled to EGF, Vista Waste (Angola) and the waste activity in Ivory Coast  Relevant part of the capex was financed through leasing, which accounted for c.€140 mn  Maintenance capex stood at 4% of turnover Capex in 2018 by region (€ mn) Net capex (€ mn) 186 45 78 101 21 22 57 40 9 1 13 Europe Africa Latin America Others E&C Capex E&C Capex – long term E&S Capex 1 Maintenance Growth E&C Capex – long term contracts contracts 13 1 E&S includes the energy business.

14 Solid CFFO of €344 mn Free cash flow (€ mn) Mainly non-cash forex items CFFO €344 mn (included in net financials) 1 1 1 Net debt considers Angola’s sovereign bonds denominated in US$ and US$ linked as “cash and cash equivalents” which amounted to €152 mn in December 2018 and €156 mn in December 2017 and 14 Malawi’s sovereign bonds amounting to €14 mn in December 2018.

15 Stable gearing at 2.3x Net debt 1 of €955 mn   Leasing amounted to €266 mn, up €101 mn in 2018, of which €97 mn related to long-term mining contracts  Cost of debt of 5.0%, down from 5.6% in December 2017  Average debt life of 2.3 years, impacted by the successful €110 mn bond issue in November 2018  The net debt increase amounted to c.40% of the capex not financed through leasing Gross debt maturity 2 , December 2018 (€ mn) Cost of debt and gearing 3 807 766 Undrawn Already refinanced or to credit be refinanced shortly lines Cash & Cash equiv. Non-revolving Revolving 1 Excluding leasing and factoring amounting to €266 mn and €120 mn, respectively, and including €152 mn of Angolan sovereign bonds and €14 mn of Malawi’s sovereign bonds; 2 Excluding leasing and 15 factoring; 3 Net debt/EBITDA.

16 Delivering our commitments Achievements 2018 Guidance and strategic targets Turnover up 8% YoY Top line growth EBITDA margin at 15% Resilient EBITDA margin Backlog > €5 bn Record backlog of €5.5 bn Working capital management focus Working capital/sales at 7% Capital structure optimisation Net debt/EBITDA of 2.3 x 16

17 Index 03 Regional Segments Page 18 Europe Africa Latin America

Europe Portugal Czech Republic Spain Ireland Poland United Kingdom Highlights 2018 06 859 M€ 1,226 M€ Countries Turnover Backlog