Presentation A World of Inspiration March 2019 2 Index 01 04 - PowerPoint PPT Presentation

Investor Presentation A World of Inspiration March 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: €533 mn (5th March 2019)  Main Shareholders: Mota Family (65%) / Norges Bank (3,6%) / Mutima Capital (3%) / Cobas (2,08%) / Az Valor (2,04%) 3

6 Index 02 Results Overview Page 7

7 Key Highlights Europe Latin America Africa  Record backlog Record Turnover Resilient EBITDA   €5.5 bn €2,818 mn €409 mn (margin 15%) 2,818 409 405 5.5 2,597 5.1 338 2,210 4.4 Dec.16 Dec.17 Dec.18 2016 2017 2018 2016 2017 2018 Capex Net profit Net debt    €287 mn €24 mn €953 mn (gearing 2.3x)

8 Net income up to €24 mn P&L (€ mn)  Turnover reached € 2,818 mn with all regions YoY 2H18 YoY 2018 2017 presenting a positive trend Turnover 8% 12% 2,818 2,597 1,567 EBITDA 409 405 1% 246 11%  Strong EBITDA margin of 15%, mainly driven Margin 15% 16% (1 p.p.) 16% (0 p.p.) by Africa an Latin America EBIT 9% 22% 202 186 112 Margin 7% 7% 0 p.p. 7% 1 p.p.  Net financial results 44% 6% (57) (102) (52) Net financial results reflect positive forex Associates 6% (28%) 3 3 1 impact Net monetary position 1 n.m. n.m. (14) 3 (14) EBT 50% (61%) 135 90 62  Effective tax rate of 31% Net income 52% (139%) 93 61 52 Attributable to:  Net income improvement was mainly driven Non-controlling interests 70 60 17% 35 38% Group n.m. n.m. 24 2 18 by businesses without minorities  IAS 29 had a negative impact of € 7 mn in EBITDA and € 15 mn in net income 1 The caption “Net monetary position” reflects partially the accounting of Angola as a hyperinflationary economy (IAS 29). 8

9 EBITDA with continued growth reaching €409 mn P&L breakdown (€ mn)  Europe turnover reflects stable activity, 2018 2017 YoY 2H18 YoY notwithstanding lower profitability Turnover 2,818 2,597 8% 1,567 12% Europe 856 828 3% 450 1%  Africa 2H18 activity showed a strong Africa 908 860 5% 546 7% Latin America 1,084 960 13% 597 22% acceleration, a trend that is expected to Other and intercompany (29) (51) 42% (27) 44% continue in 2019 EBITDA 409 405 1% 246 11% Margin 15% 16% (1 p.p.) 16% (0 p.p.)  Africa EBITDA margin increased to 21% (up Europe 72 141 (49%) 25 (74%) 2p.p. YoY) with a balanced contribution from Margin 8% 17% (9 p.p.) 6% (16 p.p.) the main markets Africa 194 164 18% 111 30% Margin 21% 19% 2 p.p. 20% 3 p.p. Latin America 140 109 28% 98 19%  Turnover in Latin America benefited from good Margin 13% 11% 2 p.p. 16% (0 p.p.) project execution pace which led to a double Other and intercompany 3 (10) n.m. (2) 77% digit growth (13% 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% 2300 4,5x 17% 20% 4.0x 4,x 15% 3,4x 1800 425 3,5x 7% 7% 10% 1 455 3,x 5% 1300 1 159 2,5x 325 2,2x 2,3x 475 0% 953 877 2,x 800 -5% 367 1,5x 225 405 409 -10% 367 338 1,x 300 -15% 199 177 ,5x 125 -20% 2015 2016 2017 2018 -200 ,x 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) 186 287 45 104 147 78 101 101 50 21 47 22 57 82 40 50 9 1 13 2018 2017 Europe Africa Latin America Others E&C Capex – long term E&C Capex 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 €346 mn Free cash flow (€ mn) Mainly non-cash forex items CFFO €346 mn 1200 (included in net financials) 1000 178 800 76 409 110 600 57 41 1 953 1 877 22 400 200 0 Net debt Dec.17 EBITDA Changes in Corporate tax Net financials Maintenance Growth capex Changes in m/l Net debt Dec.18 working capital capex (excludes leasing) term & perim. 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 € 953 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 3 809 5.8% 762 5.6% Undrawn 5.6% Already refinanced or to credit 5.1% 5.0% be refinanced shortly 190 lines 373 2.5x 2.5x 2.4x 2.3x 2.1x Cash & 619 199 Cash equiv. 283 190 186 169 112 60 Dec15 Dec16 Dec17 Jun18 Dec18 Liquidity 1 year 2 years 3 years 4 years 5 years > 5 years position 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 06 856 M€ 1,226 M€ Countries Turnover Backlog