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Mota-Engil

Interim / Quarterly Report Aug 27, 2020

1905_ir_2020-08-27_90dc0cd1-706f-4eb9-88f7-3cb81c825cf3.pdf

Interim / Quarterly Report

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2020 Management Report

Interim Consolidated Financial Information

A World of Inspiration

Building Today,

Imagining Tomorrow.

Building Today, Imagining Tomorrow.

For a multinational company like Mota-Engil growth starts today, molded by future ambitions. A long term mission that reflects on the operation, expanding to new territories and new business areas.

Energy Turnover 56M€

Others, eliminations and intra-group Turnover 11M€

Environment Turnover 242M€ Backlog

760M€

1H20

Construction Turnover 848M€ Backlog 4,731M€

Highlights

€5.5 bn

Record backlog of €5.5 bn

€1.2 bn

Turnover of €1.2 bn, with a 14% decrease YoY

€144 mn

EBITDA of €144 mn, with a margin of 12%

Consolidated Net loss of €5 mn

€1,248 mn

Net debt of €1,248 mn, with a net debt / EBITDA ratio of 3.4x

€94 mn

Capex of €94 mn, a decrease of €13 mn YoY

(*) Includes the Europe region and others, eliminations and intra-group (**) Includes the Africa and Latin America regions

INCOME STATEMENT

THOUSAND EUROS

1H20 % T 1H19 % T
Sales and services rendered (Turnover - T) 1,156,677 (14.0%) 1,344,329
EBITDA(*) 144,075 12.5% (25.7%) 194,016 14.4%
Amortizations and depreciations, provisions and impairment losses -111,373 (9.6%) (7.8%) -103,279 (7.7%)
EBIT(**) 32,702 2.8% (64.0%) 90,737 6.7%
Net financial results (***) -42,262 (3.7%) 18.5% -51,860 (3.9%)
Gains / (losses) in associates and jointly controlled companies 3,181 0.3% 145.2% 1,297 0.1%
Gains / (losses) on the disposal of subsidiaries, jointly controlled and
associated companies
3,655 0.3% - - -
Net monetary position 7,359 0.6% - - -
Income before taxes 4,635 0.4% (88.5%) 40,175 3.0%
Consolidated net profit of the year 10,051 0.9% (60.6%) 25,521 1.9%
Attributable to:
Non-controlling interests 15,092 1.3% (13.2%) 17,395 1.3%
Group -5,041 (0.4%) - 8,126 0.6%

(*) EBITDA corresponds to the algebraic sum of the following captions of the consolidated income statement: "Sales and services rendered"; "Cost of goods sold, mat. cons., changes in production and Subcontractors"; "Third-party suppliers and services"; "Wages and salaries"; "Other operating income / (expenses)"

(**) EBIT corresponds to the algebraic sum of EBITDA with the following captions of the consolidated income statement: "Amortizations and depreciations", "Provisions and impairment losses"

(***) Net financial results corresponds to the algebraic sum of the following captions of the consolidated income statement: "Financial income and gains" and "Financial cost and losses"

The accounts included in this Interim Report have not been audited.

Interim Consolidated Management Report 01

1.1

Economical and financial environment 10

1.2 Analysis of economic and financial performance

1.3

11

Analyses by business areas 16

1.4

Impacts and measures adopted by the GROUP in response to the pandemic 19

1.5

Sustainability and social responsibility 20

1.6 Future prospects 21

1.7 Subsequent events 21

1.8 Mota-Engil in Stock Market 22

Consolidated Financial Information 02

2.1 Consolidated Income Statements 27

2.2

Consolidated Statements of Other Comprehensive Income 28

2.3

Consolidated Statements of Financial Position 29

2.4

Consolidated Statements of Changes in Equity 30

2.5

Consolidated Statements of Cash-Flows 32

2.6 Notes to the Consolidated Financial Statements 33

2.7 Appendix A 47

Mandatory Information

03

57

01

Interim Consolidated Management Report

Construction

Brazil. Offshore platforms of Petrobrás

1.1 Economical and financial environment

The first half of 2020 will be remembered without any doubt by the appearance and spread of a virus, until that date unknown, denominated "SARS-CoV-2", which rapidly originated a worldwide pandemic (Covid - 19) that nowadays is responsible for approximately 24 million people infected and approximately 820,000 deaths.

As a result of the several measures adopted by the different States to contain the pandemic, from the mandatory confinement of populations, the closure of borders, the imposition of several barriers to the movement of goods and equipment's and the implementation of restrictive public health measures, with the consequent negative impact on the economy, it is foreseen that almost all developed countries will experience a significant contraction in their Gross Domestic Product (GDP) in 2020, being part of that already been confirmed with the data released for the first half of the year. Thus, in most of the countries where the GROUP operates, according to the latest forecasts made by the IMF, the European Commission and the OECD, on average, it is estimated that Portugal and the Eurozone may see their GDP in 2020 decrease circa of 10 %, Mexico 9%, Brazil 9%, Colombia 5%, Mozambique 2% and Angola 1%. However, according to the same source of information, it is estimated that in 2021 those countries will evidence a growth in their GDP although lower than the decrease expected for 2020.

In addition, as a result of the expansionist monetary policies jointly implemented by the main world central banks, beside other macroeconomic factors, interest rates have remained at stable levels, namely in Europe and in the United States of America. However, in terms of commodities, namely oil, and the exchange rates of the currencies of the main countries in Africa and in Latin America where the GROUP operates, a high volatility and a fall in the respective prices occur.

Taking in consideration the environment described above, the GROUP's activity in the first half of 2020 was not unaffected by the impacts caused by the pandemic, being essentially the Engineering and Construction (E&C) business who was the most affected due to the production interruptions / stoppages, sometimes caused by the restrictive public health measures implemented in the different countries where the GROUP operates, sometimes caused by the logistical constraints faced to move people, equipment's and goods. Regarding the Environment and Services (E&S) business, which comprises the collection, treatment and recovery of waste, as well as, the production and sale of energy, the impact caused by the pandemic was lower since those activities correspond to essential and strategic services for the normal functioning of the communities and so they continue to be provided with some normality.

1.2 Analysis of economic and financial performance

As a result, essentially, of the constraints caused by the pandemic, the turnover (**) in the first half of 2020 amounted to 1,157 million euros, a decrease of circa of 14% when compared with the first half of 2019. However, it should be highlighted the asymmetric behaviour of that indicator between regions, with Europe contributing with an increase of circa of 12% and Africa and Latin America contributing with decreases of 15% and 33%, respectively.

Following the above referred, Europe was the region that most contributed to the GROUP's turnover in the first half of 2020 with a 40% contribution (30% in the first half of 2019), much at the expense of Latin America which on that period contributed only with 26% (34% in the first half of 2019). Furthermore, in the first half of 2020, in the Europe region, the E&C business contributed with 29% to the GROUP 's turnover (23% in the first half of 2019) and the E&S business with 12% (9% in the first half of 2019).

(**) Turnover corresponds to the consolidated income statement caption of "Sales and services rendered"

(***) Includes the EBITDA generated in the Europe region and others, eliminations and intra-group (****) Includes the EBITDA generated in the Africa and Latin America regions

In the first half of 2020, as a result of a lower productivity and dilution of fixed costs arising from the negative impacts caused by the pandemic, the GROUP's EBITDA decrease 26% to 144 million euros, having this one been positively influenced by the Europe's performance (increase of 16%), which however was not enough to offset the less positive performance of Africa (24% decrease) and Latin America (55% decrease). As a result of the aforementioned, the EBITDA margin (EBITDA / Turnover) in the first half of 2020 reached 12.5%, a decrease of 1.9pp when compared with the first half of 2019.

Regarding EBIT, this one amounted in the first half of 2020 to 33 million euros, an amount lower than the one recorded in the first half of 2019 (91 million euros), having it been negatively influenced by the reduction occurred in EBITDA, positively influenced by a small reduction in terms of amortisations, due to the fact that some equipment's have reached the end of its useful life, and negatively influenced by the recording of provisions and impairment losses (16 million euros) to deal with the potential negative effects caused by the Covid – 19 pandemic in the future collection of some accounts receivable and in the realization of some non-current assets.

In the first half of 2020, the GROUP invested circa of 94 million euros, of which it is worth to highlight 26 million euros assigned to a new medium and long term mining contract in Guinea-Conakry, circa of 26 million euros assign to the execution of the investment plan established for the EGF concessionary companies and circa of 5 million euros assign to the execution of a relevant project in the segment of E&S in Côte d'Ivoire.

(*) Capex corresponds to the algebraic sum of the increases and disposals of tangible assets, intangible assets and rights of use assets occurred in the period.

(* *) Long-term contracts correspond to the mining contracts in Africa and to the energy business in Latin America.

As at June 30, 2020, net debt (**) amounted to 1,248 million euros, an increase of circa of 34 million euros when compared with December 31, 2019, justified, essentially, by the investment performed in the period.

As at June 30, 2020, net debt plus factoring (***) and leasing (****) operations amounted to 1,651 million euros, a decrease of 45 million euros when compared with December 31, 2019.

As a result of the debt evolution and the operating performance at the semester, significantly influenced by the pandemic, the ratio that compares the total net debt with the EBITDA in the last 12 months reached 3.4x (2.5x at June 30, 2019).

Gross debt (*****) at June 30, 2020 amounted to 1,869 million euros, being 43% contracted at a variable rate with an average cost of 5.1% (5.2% at December 31, 2019). On the other hand, at June 30, 2020, 84% of the total gross debt was denominated in euros and this one had an average maturity of 2.6 years (2.5 years at December 31, 2019).

Additionally, at June 30, 2020, the GROUP maintained available unused credit lines of circa of 196 million euros resulting in a total amount of effective liquidity (******) of 817 million euros, corresponding to approximately 44% of the total gross debt.

In this chapter, it is also worth to highlight, in the first half of 2020, the GROUP's adherence to the moratorium mechanisms established by the Portuguese State / financial system within the scope of the support measures established to combat the pandemic, which allowed the postponement of approximately 340 million euros of reimbursements of principal and interest.

(*) 1-year net debt includes all Angolan public debt securities (from Angola and Côte d'Ivoire at December 31, 2019) recorded under the captions "Other financial investments recorded at amortized cost" of the consolidated statement of financial position.

(**) Net debt corresponds to the algebraic sum of the following captions of the consolidated statement of financial position: "Cash and cash equivalents without recourse – Demand deposits", "Cash and cash equivalents with recourse – Demand deposits", "Cash and cash equivalents with recourse – Term deposits", "Other financial investments recorded at amortized cost"; "Loans without recourse" and "Loans with recourse". It should be noted that the leasing and factoring operations established by the Group are not accounted under the aforementioned captions.

(***) Factoring operations are recorded in the consolidated statement of financial position under the captions "Other financial liabilities".

(****) Leasing operations are recorded in the consolidated statement of financial position under the captions "Lease liabilities".

(*****) Gross debt corresponds to the algebraic sum of net debt with the balances of the following captions of the consolidated statement of financial position "Cash and cash equivalents without recourse – Demand deposits", "Cash and cash equivalents with recourse – Demand deposits", "Cash and cash equivalents with recourse – Term deposits"; "Other financial investments recorded at amortized cost".

(******) Effective liquidity corresponds to the algebraic sum of the following captions of the consolidated statement of financial position "Cash and cash equivalents without recourse – Demand deposits", "Cash and cash equivalents with recourse – Demand deposits", "Cash and cash equivalents with recourse – Term deposits"; "Other financial investments recorded at amortized cost" with the amount of available unused credit lines by the Group.

In the first half of 2020, the financial results amounted to -42 million euros, an improvement of 10 million euros when compared with the first half of 2019, largely justified by the increase of the positive exchange differences generated in the period, due, essentially, to the appreciation of the euro against the kwanza.

Regarding the net financial charges (interest expenses - interest income), these amounted to 47 million euros in the first half of 2020, a slightly higher amount than the one verified in the first half of 2019 (44 million euros).

(*) Includes circa of 7 million euros associated with part of the effect arising from the consideration of Zimbabwe as a hyperinflationary economy (IAS 29)

In the first half of 2020, the caption "Gains / (losses) in associates and jointly controlled companies" (EM) contributed positively with 3.1 million euros to the net profit, a slightly higher amount than the one reached in the first half of 2019 (1.3 million euros), justified in part by the performance of SEM.

Regarding income tax (Tax), in the first half of 2020 it amounted to 5 million euros (-15 million euros in the first half of 2019), due essentially to a much lower income before taxes and a positive effect not recorded in 2019 arising from some tax investment benefits granted to the GROUP.

Finally, regarding non-controlling interests (NCI), those amounted in the first half of 2020 to 15 million euros, having them been generated, essentially, by the GROUP's subsidiaries in Mexico and Angola.

Thus, as a result of the operational and financial performance described above, significantly influenced by the impacts of the pandemic, the net profit (NP) attributable to the GROUP at June 30, 2020 amounted to -5.0 million euros (8.1 million euros in the first half of 2019).

Backlog (*) at June 30, 2020 reached 5.5 billion euros, a new record, with the regions of Africa and Latin America contributing with approximately 79% of the total amount, corresponding to a "backlog – to - sales and services rendered in the E&C business" ratio of 2.3x.

On the other hand, at June 30, 2020, the E&S business contributed with 760 million euros to the GROUP's backlog, even excluding the foreseeable revenues arising from the waste treatment and recovery contracts from EGF concessionary companies.

Lastly, it is worth to highlight, in a turbulent period, the backlog increase of approximately 126 million euros, when compared with December 31, 2019, to which, among others, the Mexican market contributed with the award, in partnership with China Communications Construction Company, of a contract for the construction of the first stretch of the new Mexican railway infrastructure called "Trem Maya" worthing more than 500 million euros.

1.3 Analysis by business area

EUROPE

The Europe region manages the E&C and the E&S activities and companies that the GROUP has in Portugal, Poland, Ireland and in the United Kingdom, or which are managed by the management structure of this region. In the E&S area, waste collection activities (whose vehicle is SUMA) and waste treatment and recovery activities (whose vehicle is EGF) are developed.

In Europe, specifically in the E&C area, as a result of the pandemic, there were some interruptions in the projects arising from the measures enacted by the local authorities, as well as, the decisions taken by some of our customers, namely in some projects in progress in Portugal and in Ireland. Additionally, in Portugal, there were also some difficulties in the performance of some subcontractors which together with the implemented security measures allow to continue operating even at levels below normal. Finally, in this region, there were no significant constraints in the supply chain having been reduced the number of projects whose production was suspended for that reason.

However, despite the negative effects caused by the pandemic, the turnover in Europe in the first half of 2020 amounted to 455 million euros, an increase of 12% when compared with the first half of 2019 (407 million euros), helped both by the E&C area and by the E&S area.

In this chapter, it is worth noting the 14% increase in the E&C area turnover, influenced, essentially, by the strong activity in Poland (62% growth when compared with the first half of 2019), as well as, by the increase in the E&S area turnover, justified, essentially, by the waste collection business.

Additionally, in the first half of 2020, Portugal contributed with almost 50% to the E&C area turnover (circa of 60% in the first half of 2019).

In terms of operating profitability, the EBITDA in Europe in the first half of 2020 amounted to 48 million euros, an increase of 16% when compared with the first half of 2019 (41 million euros), being that increase justified, essentially, by the positive performance of the E&C area (+2.4 million euros), namely in Portugal and in Poland, but essentially by the performance of the E&S area (+5.6 million euros), namely in the waste collection business.

AFRICA

In Africa, as a result of the pandemic, there were also negative impacts arising from the measures enacted by the local authorities, as well as, by the decisions taken by some customers which led to interruptions in the majority of projects the in progress in Angola and in Uganda, having also justified some interruptions in the works performed in the Mozambique. On the other hand, in the remaining markets of the region, there was a production decrease justified, essentially, by the logistical constraints that turn more difficult the movement of people, goods and equipment's.

Thus, in the first half of 2020, a 15% decrease in the turnover of Africa occurred, when compared with the first half of 2019, having that indicator amounted to 385 million euros. In this chapter, it should be noted that the main markets of the region were hit in a similar way (Angola - 19% decrease and Mozambique - 14% decrease).

In terms of operating profitability, the EBITDA in Africa in the first half of 2020 amounted to 69 million euros, a decrease of 24% when compared with the first half of 2019, with the EBITDA margin decreasing to 18% (20% in the first half of 2019) with a balanced contribution from the several markets in the region.

LATIN AMERICA

In Latin America, the GROUP'S region more affected by the pandemic, there were also negative impacts arising from the measures enacted by the local authorities, as well as, by the decisions taken by some of our customers, with a special impact in Peru and Mexico, which led to the interruption / suspension of some projects. In this region, the market that felt earlier the effects of this situation was precisely Peru, with the decree of the State of Emergency and the Partial Compulsory Recollection. On the other hand, given the increasing number of infected people in the main countries where the GROUP operates in this region, the came back to normal activity levels is still difficult to predict.

Thus, taking in consideration the above referred, the turnover of Latin America in the first half of 2020 amounted to 305 million euros, a decrease of 33%, when compared with the first half of 2019, being the markets of Mexico and Peru the ones that contributed more to that performance.

Additionally, in the first half of 2020, Mexico contributed with 43% to the region's turnover (46% in the first half of 2019).

In terms of operating profitability, the EBITDA in Latin America in the first half of 2020 decreased 55%, when compared with the first half of 2019, amounting to 27 million euros, having been impacted, essentially, by the less good performance of the Mexican market.

1.4 Impacts and measures adopted by the Group in response to the pandemic

Since the beginning of the pandemic, and more specifically from the second week of March 2020, the GROUP is monitoring the evolution of this theme, in a first phase on a daily basis and currently with a lower frequency, fulfilling and disseminating the recommendations of the World Health Organization and the local authorities and acting in order to minimize the effects of that virus on its employees, on the communities where it operates and in its equity.

Specifically, in order to provide a coordinated and organized response to this crisis, the GROUP created a permanent monitoring committee ("Covid Committee") based on a support network with several capacities, which include the market managers and a dedicated central team. That network is centrally coordinated by the Executive Committee, which in a first phase met at least two times per week, and which have been briefed during that period about the impact of that crisis: (1) on people, (2) on current activity (on the economic and financial sides), (3) in the business plan for 2020 and (4) in the mediumterm strategy.

As far the impact on people, the first decisions taken even anticipated the restrictions enacted by the several local authorities and were materialized in the definition of contingency plans to be applied in all places where the GROUP operates, whether in the different central offices or whether in shipyards, work fronts, industrial units, etc. In general, the GROUP implemented the teleworking for all functions where it proved to be feasible and in the operations it implemented reinforced safety and health policies, reinforcing individual protection means and monitoring the compliance of those policies by all people, whether they were employees of GROUP companies, subcontractors, suppliers, customers, inspectors, etc.. Additionally, in relation to the expatriates, the GROUP ensured a reinforcement of its security by hiring a "global rescue" company with support capacity both in terms of access to local healthcare's, as well as, providing return trips to its respective countries.

As far the impact in the current activity, there was a decrease in the turnover in 2020, when compared with the same period of 2019, and it is likely that new impacts may arise, namely due to the replanning of production in some markets while the outbreak and spread of the virus is not neutralized. Specifically in the E&C activity, there were some negative impacts arising from the restrictive measures of public health enacted by the local authorities, from the decisions taken by some of our customers to suspend / interrupt the ongoing projects, from having found some difficulties in the performance of some subcontractors, and from having found some logistical constraints that turn more difficult the movement of goods, equipment's and people. In the remaining activities, whether in the collection, recovery and treatment of waste, whether in the production and sale of energy, the activity has maintained a relatively normal level. In addition, despite the production levels verified and the stability in the collection and treatment of domestic waste, it was noticed a reduction in the industrial waste as a result of the strong slowdown verified in the economic activity.

Following the above mentioned, it is worth to highlight that in most of the projects, even in those in which there was an interruption by indication of the local authorities or from our customers, has been a constant dialogue with the latter ones in order to safeguard the financial balance of the contracts.

On the other hand, in order to ensure the liquidity management of the business, the GROUP, namely in Portugal, adhere to the moratorium regime established by the Portuguese State / financial system, which allowed it to postpone circa of 340 million euros of reimbursements of capital and interest. At the same time, the GROUP negotiated and has been negotiating additional liquidity lines with the Portuguese banks (COVID lines - in the amount of circa of 23 million euros) and with local banks in the main countries where it operates in Africa and in Latin America. Likewise, and taking in consideration the goal above referred, the GROUP accelerated a set of efficiency measures that were already underway and postponed some investments planned for 2020.

Thus, at June 30, 2020, the repayment of the gross debt with a maturity lower than 1 year, in the amount of 636 million euros, is fully assured through the available cash, through the available but unused credit lines, and / or through the operations refinanced or in progress of being refinanced after June 30, 2020 (314 million euros).

Regarding the accomplishment of the business plan for 2020, the GROUP has been periodically monitoring its evolution, as well as, taking some mitigating actions in order to minimize the deviations observed in the meantime. However, due to the fact that the uncertainties underlying the pandemic continue to persist, namely the duration of the public health restriction measures implemented, the duration of the restrictions in the movement of people, equipment's and goods, the possibility of a second wave and the possibility of discovering a new vaccine, any estimate performed has a limited degree of reliability.

Finally, regarding the medium-term strategy, the GROUP proceeded to a reflection over the "new normal" through a methodology based on 5 steps: (1) assessment and understanding of the situation in all its aspects and in all businesses / companies; (2) strengthening the resilience, ensuring the protection of its assets; (3) case by case planning of the necessary recovery; (4) simulation of new scenarios for the future; and (5) adapting the organization to the new regulatory and competitive environment (the "new normal"). Following that reflection, new action plans have already been developed with an expected positive impact on the GROUP's future performance. In this regard, in the first half of 2020, it is also important to highlight the commercial resilience shown by the GROUP which, in a troubled period, even so, managed to strengthen its backlog, which allows it to face the future with a moderate optimism.

1.5 Sustainability and social responsibility

Sustainability and social responsibility are fundamental vectors of the MOTA-ENGIL GROUP's conduct and its commitment to all countries where it operates.

Therefore, and reinforced in this pandemic period, the MOTA-ENGIL GROUP supports its decisions in a matrix that includes the environmental and social perspective alongside the economical one. The visibility of the maxim "A more sustainable GROUP, in a more sustainable world" is evident in the selection of recent actions that the GROUP has developed, and which are listed below:

  • i. Donation of high-tech medical equipment to hospital establishments and support centres for COVID-19;
  • ii. Creation of the AJUDA @ ME platform by the Fundação Manuel António da Mota ("FMAM");
  • iii. Launch of the 11th edition of the Manuel António da Mota Prize under the theme "Portugal Vence a Covid-19";
  • iv. Campaigns to promote the health and safety of MOTA-ENGIL employees;
  • v. Attribution by FMAM of support under the "Mobilidade Integrada" program donation of equipment's and interventions in the housing sphere for people with reduced mobility;
  • vi. Maintenance by FMAM of support programs for MOTA-ENGIL employees (Scholarships, "Primeira infância" Program, Financial Office, Social Support Fund, Fund 1 + 2);
  • vii. Proceed with the "Cantinho do Estudo" project with the Municipality of Vila Nova de Gaia (POCH, Partnership for Impact, Portugal Social Innovation);
  • viii. Support provided by FMAM in the reconstruction / rehabilitation of degraded houses of families in situations of social and economic vulnerability;
  • ix. Development of environmental awareness campaigns and actions with local communities and schools;
  • x. Realization of the 8th edition of the "Jovens Empreendedores" project;
  • xi. Donation of books, schoolbooks and sports equipment to a school in Malawi and creation of a permanent relationship with this educational institution;
  • xii. Within the scope of the construction of the Cabinda General Hospital, and with the support and guidance of FMAM, MOTA-ENGIL ANGOLA has been carrying out several activities of social nature with the surrounding communities, of which it is worth to highlight, the delivery of school kits and toys to schools and orphanages, the rehabilitation of classrooms at the Simindele primary school and the creation of a library, the rehabilitation of the Chibodo police station, the cleaning / rehabilitation of the local community's playground and the valorisation of the construction waste generated; and
  • xiii. As part of the construction of the Pediatric Hematological Institute, and with the support and guidance of FMAM, MOTA-ENGIL ANGOLA has also been carrying out several activities of social nature with the surrounding communities, of which it is worth to highlight, the rehabilitation of the buildings of the leper community stands of Funda - Luanda, the rehabilitation of the neonatology area and the waterproofing of the roof of the Pediatric Hospital David Bernardino, as well as, the supply and installation of air conditioning units for the Ministry of Health headquarters building.

Furthermore, it should be highlighted the historical milestone reached by the GROUP of 1,000 days and 4,500,000 hours worked without accidents in the mining project located in Moatize, Mozambique, which reinforces that safety work is a reality, the MOTA-ENGIL reality.

1.6 Future prospects

The prospects of MOTA-ENGIL GROUP for the year 2020, strongly conditioned by the uncertainty regarding the evolution of the pandemic, are as follows:

  • Total turnover is expected to decrease due to Africa and Latin America, notwithstanding an expected increase in activity in Europe;
  • EBITDA margin to remain below 2019;
  • Backlog to stand above 5,000 million euros;
  • Capex below 200 million euros (partially financed by down payments), down from an initial estimate of 200 250 million euros; and
  • Focus on organic cash-flow generation in order to help strengthening the capital structure.

1.7 Subsequent events

Strategic partnership and investment agreement

MOTA-ENGIL S.G.P.S., S.A. informs that it is in the last stages of negotiation of a partnership and investment agreement (the "Agreement") with one of the largest infrastructures groups in the world (top five), with significant activity worldwide, aiming at such group (the "New Partner") becoming a relevant shareholder and a long-term partner of the GROUP MOTA-ENGIL.

In the context of the envisaged Agreement, MOTA GESTÃO E PARTICIPAÇÕES, SGPS, SA (MGP), the controlling shareholder of MOTA-ENGIL, has accepted to sell a relevant stake in the share capital of MOTA-ENGIL at a price that reflects a valuation which is high above the current market price.

Also pursuant to the Agreement, if concluded successfully — which is expected to occur shortly —, and assuming that the regulatory clearances and several other conditions precedent will be met, the New Partner:

  • will enter into a partnership and investment understanding with GROUP MOTA-ENGIL to jointly develop commercial opportunities and
  • will be committed to subscribe a relevant stake in a share capital increase of up to 100 million new shares that will be submitted for deliberation in a General Meeting, to be called shortly.

Following such share capital increase:

  • a stake of around 40% of the share capital will be attributable to MGP, showing a fully commitment and alignment with its historical position in MOTA-ENGIL,
  • the New Partner will reach a stake slightly above 30%.

This new configuration and the framework of this partnership, which is based on a Group´s valuation of circa 750 million euros, will enhance the financial, technical and commercial capabilities of GROUP MOTA-ENGIL in order to upscale its activities in all markets and will open new opportunities for further developments.

MOTA-ENGIL, as the leading Portuguese infrastructure multinational group, will strengthen its commitment, based on its 75 year culture and corporate values, towards its clients, employees, communities, environment and all other stakeholders.

1.8 Mota-Engil in Stock Market

The evolution of the performance of the MOTA-ENGIL share price in the first half of 2020 is shown in the following charts:

As at June 30, 2020 MOTA-ENGIL's share capital was comprised by of 237,505,141 shares, with a nominal value of one euro each, with all shares being listed on Euronext Lisbon. On that same date, MOTA-ENGIL held 6,091,581 own shares, corresponding to 2.565% of its share capital.

MOTA-ENGIL's share closed the first half of 2020 at a price of 1.142 euros corresponding to a market capitalization of circa of 271 million euros. The first half of the year was characterized by an increase of volatility in the financial markets, as well as, by an increase in the uncertainty and risk aversion by the investors following the Covid-19 pandemic that had its major impact between the months of March and May. This context led to a significant sell-off in the stock market, to which the performance of MOTA-ENGIL's share was not immune, having depreciated 39% during the first half of 2020. Also, the Portuguese stock index, PSI20, presented a negative performance in the first half, having depreciated 16%. Regarding the European sectorial index, SXOP, it closed the semester with a 14% devaluation.

During the first half of 2020, MOTA-ENGIL's share reached a maximum of 1.900 euros, recorded in early January, and a minimum of 1.012 euros, which was recorded in mid-May. In that period, a total of 156 million MOTA-ENGIL shares were traded in Euronext Lisbon corresponding to an average daily volume of 1,237 thousand shares.

The MOTA-ENGIL Annual Shareholders' Meeting of 2020 took place on June 18, having been approved all the points considered therein.

Porto, 25 August 2020

Gonçalo Moura Martins Chief Executive Officer

José Pedro Freitas Chief Financial Officer

From civil construction to energy, concessions and environment, Mota-Engil Group invested in new business sectors. Conquering new markets with the strength of a united Group, where team spirit is the main motor for building a future of continuous growth.

CONSOLIDATED INCOME STATEMENTS FOR THE SIX-MONTH PERIODS ENDED AT JUNE 30, 2020 AND 2019

st Half
1
Notes 2020
€ '000
2019
€ '000
(non audited) (non audited)
2 1 156 677 1 344 329
(502 249) (613 338)
(244 269) (267 777)
(268 139) (286 689)
3 2 055 17 491
2 (95 798) (102 043)
2 (15 575) (1 236)
4 126 941 43 933
4 (169 203) (95 793)
3 181 1 297
3 655 -
7 359 -
4 635 40 175
5 416 (14 653)
10 051 25 521
15 092 17 395
5 (5 041) 8 126
0.035 €
0.035 €
5
5
To be read with the Notes to the consolidated financial statements
-0.022 €
-0.022 €

CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME FOR THE SIX-MONTH PERIODS ENDED AT JUNE 30, 2020 AND 2019

1st Half
2020 2019
€ '000 € '000
(non audited) (non audited)
Consolidated net profit of the period 10 051 25 521
Items of other comprehensive income that may be reclassified to the income statement
Companies consolidated by the full consolidation method
Exchange differences arising from the conversion of financial statements expressed in foreign currencies:
Associated with the impact of hyperinflation in previous years (5 765) (2 687)
Others (68 012) (21 271)
Variation, net of tax, of the fair value of derivative financial instruments 109 (500)
Impact of hyperinflation in Zimbabwe (18 244) -
Companies consolidated by the equity method
Exchange differences arising from the conversion of financial statements expressed in foreign currencies (2 852) 8
Variation, net of tax, of the fair value of derivative financial instruments (497) (1 099)
Other comprehensive income in companies consolidated by the equity method - 317
Items of other comprehensive income that will not be reclassified to the income statement
Companies consolidated by the full consolidation method
Variation, net of tax, of the fair value of tangible assets 7 980 (62)
Variation, net of tax, of the fair value of other financial investments recorded at fair value through other comprehensive income 12 245 -
Actuarial deviations, net of tax (2 325) -
Total of other comprehensive income of the period (77 362) (25 294)
Total consolidated comprehensive income for the period (67 311) 227
Attributable:
to non-controlling interests (25 176) 6 934
to the Group (42 135) (6 707)
To be read with the Notes to the consolidated financial statements

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS AT JUNE 30, 2020 AND DECEMBER, 31 2019

(non audited)
(audited)
Assets
Non-current
23 430
22 233
Goodwill
6
613 894
629 811
Intangible assets
454 333
460 028
Tangible assets
Rights of use assets
264 420
246 411
Financial investments in associates
2 and 7
85 479
103 908
23 972
19 902
Financial investments in jointly controlled companies
2
184 728
212 078
Other financial investments recorded at amortised cost
8
Other financial investments recorded at fair value through other comprehensive income
69 384
54 088
8
167 905
161 753
Investment properties
9
Customers and other debtors
155 275
184 433
Other non-current assets
5 592
5 427
100
4
Derivative financial instruments
189 629
186 296
Deferred tax assets
Total non-current assets
2 238 142
2 286 371
Current
290 482
332 599
Inventories
979 167
1 059 462
Customers and other debtors
619 024
568 360
Contract assets
99 119
54 799
Other current assets
Corporate income tax
39 901
35 146
1 743
10 568
Other financial investments recorded at amortised cost
8
78 346
98 303
Cash and cash equivalents with recourse - Term deposits
10
43 799
34 593
Cash and cash equivalents without recourse - Demand deposits
10
312 637
299 957
Cash and cash equivalents with recourse - Demand deposits
10
126 507
274 407
Non-current assets held for sale
11
Total current assets
2 590 724
2 768 193
Total Assets
2
4 828 866
5 054 564
Liabilities
Non-current
126 827
110 425
Loans without recourse
12
1 106 003
866 760
Loans with recourse
12
213 518
203 883
Lease liabilities
13
684
688
Derivative financial instruments
97 640
93 943
Suppliers and sundry creditors
47 183
44 247
Liabilities associated with customers contracts
153 170
157 746
Other non-current liabilities
Provisions
110 179
106 587
159 025
161 984
Deferred tax liabilities
Total non-current liabilities
2 014 229
1 746 263
Current
47 035
50 148
Loans without recourse
12
589 028
841 592
Loans with recourse
12
111 237
208 156
Other financial liabilities
13
78 349
69 999
Lease liabilities
13
-
9
Derivative financial instruments
Suppliers and sundry creditors
776 197
885 832
333 386
233 639
Liabilities associated with customers contracts
595 007
530 905
Other current liabilities
23 722
30 395
Corporate income tax
25 540
129 600
Non-current liabilities held for sale
11
Total current liabilities
2 579 502
2 980 272
Total Liabilities
2
4 593 731
4 726 535
Shareholders' equity
Share capital
237 505
237 505
(10 232)
(10 232)
Own shares
Reserves, retained earnings and share premiums
(196 702)
(177 674)
Consolidated net profit of the period/year
(5 041)
26 728
Own funds attributable to the Group
25 530
76 327
Non-controlling interests
209 605
251 703
Total shareholders' equity
235 135
328 030
Total shareholders' equity and liabilities
4 828 866
5 054 564
Notes 30/06/2020
€ '000
31/12/2019
€ '000

To be read with the Notes to the consolidated financial statements

CONSOLIDATED STATEMENTS OF FOR THE SIX-MONTH PERIODS ENDED (AMOUNTS IN

Fair value reserves
Share capital Own shares Share premiums Financial
investments
Properties Derivatives
Balance as at December 31, 2018 (audited) 237 505 (10 232) 92 584 27 702 690 65
Consolidated net profit of the period - - - - - -
Total of other comprehensive income of the period - - - - - (1 599)
Dividend distribution - - - - - -
Transfers to other reserves - - - - - -
Other movements - - - - - -
Balance as at June 30, 2019 (non audited) 237 505 (10 232) 92 584 27 702 690 (1 533)
Balance as at December 31, 2019 (audited) 237 505 (10 232) 92 584 27 702 17 261 (649)
Consolidated net profit of the period - - - - - -
Total of other comprehensive income of the period - - - 12 245 5 202 (389)
Dividend distribution - - - - - -
Transfers to other reserves - - - - - -
Other movements - - - - - -
Balance as at June 30, 2020 (non audited) 237 505 (10 232) 92 584 39 947 22 462 (1 038)
To be read with the Notes to the consolidated financial statements

CHANGES IN EQUITY AT JUNE 30, 2020 AND 2019 THOUSANDS OF EUROS)

Currency
translation
reserves
Legal reserves Other reserves
and retained
earnings
Net profit of the
period
Own funds
attributable to the
Group
Own funds
attributable to non
controlling
interests
Shareholders'
equity
(212 093) 55 166 (37 491) 23 612 177 509 269 037 446 546
- - - 8 126 8 126 17 395 25 521
(13 488) - 254 - (14 833) (10 462) (25 294)
- - (17 125) - (17 125) (9 328) (26 452)
- - 23 612 (23 612) - - -
- - (5 448) - (5 448) 3 033 (2 415)
(225 581) 55 166 (36 197) 8 126 148 231 269 676 417 906
(292 752) 57 733 (79 555) 26 728 76 327 251 703 328 030
- - - (5 041) (5 041) 15 092 10 051
(51 827) - (2 325) - (37 094) (40 268) (77 362)
- - - - - (1 850) (1 850)
- - 26 728 (26 728) - - -
- - (8 662) - (8 662) (15 072) (23 734)
(344 579) 57 733 (63 813) (5 041) 25 530 209 605 235 135

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX-MONTH PERIODS ENDED AT JUNE 30, 2020 AND 2019

Notes 2020 2019
€ '000 € '000
Operating activities (non audited) (non audited)
Cash receipts from customers 1 040 403 1 122 921
Cash paid to suppliers (663 615)
(263 537)
(835 228)
(194 609)
Cash paid to employees
Cash generated from operating activities 113 251 93 084
Income tax (paid)/received (13 293) (12 809)
Other receipts/(payments) generated by operating activities 428 514
Net cash from operating activities (1) 100 386 80 789
Investing activities
Cash receipts from:
Financial investments 53 347 14 641
Tangible, intangible and rights of use assets 14 435 9 302
Investment grants 4 359 -
Interest and similar income 27 494 16 203
Other treasury applications 19 957 30 543
Dividends 2 183 652
121 775 71 341
Cash paid in respect of:
Financial investments (3 597) (11 916)
Loans granted - (11 962)
Tangible, intangible and rights of use assets (108 605) (115 801)
(112 202) (139 678)
Net cash from investing activities (2) 9 573 (68 337)
Financing activities
Cash receipts from:
Loans obtained 103 164 214 605
Lease contracts 74 969 19 822
178 133 234 427
Cash paid in respect of:
Loans obtained (72 460) (86 226)
Lease contracts (52 678) (22 969)
Interest and similar expenses (102 320) (75 975)
Dividends (1 850) (21 441)
(229 307) (206 611)
Net cash from financing activities (3) (51 174) 27 817
Changes in cash and cash equivalents (4)=(1)+(2)+(3) 58 784 40 268
Impact of cash and cash equivalents of the held for sale companies (210) -
Effect of currency exchange differences (37 275) 1 148
Impact of hyperinflation in cash and cash equivalents at the beginning of the period 586 -
Cash and cash equivalents at the beginning of the period 334 550 352 852
10
Cash and cash equivalents at the end of the period
356 436 394 269

To be read with the Notes to the consolidated financial statements

0. Introduction

The core businesses of MOTA-ENGIL, SGPS, SA, with head office at Edifício Mota, Rua do Rego Lameiro, nº 38 4300-454 Porto (MOTA-ENGIL SGPS or COMPANY), and its subsidiaries (GROUP or MOTA-ENGIL GROUP), are public and private construction works and related activities, as well as, waste collection and treatment. The GROUP's activity is essentially developed in three regions: Europe, Africa and Latin America. Lastly, the shares of MOTA-ENGIL, SGPS are listed at Euronext Lisbon.

The detailed description of the GROUP's activity is provided in Note.2 Business segments of these Notes.

All amounts disclosed in these Notes are presented in thousand euros, rounded off to the unit, unless explicitly stated otherwise.

1. Basis of presentation, of consolidation and main accounting policies

1.1. BASIS OF PRESENTATION

The consolidated financial statements of MOTA-ENGIL GROUP were prepared on a going concern basis from the books and accounting records of the companies comprising it adjusted in the consolidation process.

The Board of Directors assessed the ability of the GROUP in terms of going concern, based on all relevant information, facts and circunstances of financial, commercial or other nature, including events occurred after the reference date of the financial statements, available on the future. As a result of the assessement made, the Board of Directors concluded that the GROUP has appropriate resources to keep its business and has no intention to cease it in the short term. Therefore, it found appropriate the use of the going concern assumption in the preparation of the attached consolidated financial statements.

These consolidated financial statements were prepared in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and in accordance with the interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC) or by the former Standards Interpretation Committee (SIC), as adopted by the European Union as at January 1, 2020. Regarding GROUP companies which use different accounting standards, the respective financial statements were subject to conversion adjustments to IFRS.

These consolidated financial statements are presented in Euros since it is the main currency of the GROUP'S operations. The financial statements of the affiliate companies expressed in foreign currencies were converted to Euro in accordance with the described in the Notes 1.3 h) and i) of the basis of consolidation disclosed in the 2019 Consolidated Report and Accounts.

All estimates and assumptions made by the Board of Directors were based on their knowledge of the events and transactions in progress as at the date of approval of these financial statements.

In preparing the consolidated financial statements, in accordance with the IFRS, the GROUP'S Board of Directors adopted certain assumptions and estimates which affected the reported amounts of assets and liabilities, as well as, the income and costs incurred in the the periods disclosed, which are described in subparagraph xxii) of the chapter main accounting policies disclosed in the 2019 Consolidated Report and Accounts.

At last, the consolidated financial statements of MOTA-ENGIL GROUP as at June 30, 2020 were prepared in accordance with the accounting policies and the calculations methods disclosed in the 2019 Consolidated Report and Accounts, taking in consideration the provisions of IAS 34 – Interim financial reporting.

1.2. STANDARDS, INTERPRETATIONS, AMENDMENTS AND REVISIONS WHICH BECAME EFFECTIVE IN THE SEMESTER

The following standards, interpretations, amendments and revisions endorsed by the European Union were adopted for the first time in the six-month period ended at June 30, 2020:

Applicable in the European
Standard / Interpretation Union in the financial years Contents
started in or after
IFRS 3 (amendment) - Definition of a business 1/jan/20 The amendment revises the definition of a business in order to account
for business combinations. The new definition requires that an
acquisition include an input, as well as a substantial process that
jointly generate outputs. Outputs are now defined as goods and
services rendered to customers, that generate investment income and
other income, and exclude returns as lower costs and other economic
benefits for shareholders. Optional 'concentration tests' for the
assessment if one transaction is the acquisition of an asset or a
business combination, are allowed.
IFRS 9, IAS 39 and IFRS 7 (amendment) - Interest rate benchmark
reform
1/jan/20 This amendment is part of the first phase of IASB 'IBOR reform' project
and provide certain reliefs in connection with interest rate benchmark
reform. The relief relate to hedge accounting, in terms of: i) risk
components; ii) 'highly probable' requirement; iii) prospective
assessment; iv) retrospective effectiveness test (for IAS 39 adopters);
and v) recycling of the cash flow hedging reserve, with the objective that
interest rate benchmark reform does not cause hedge accounting to be
discontinued. However, any hedge ineffectiveness should continue to be
recorded in the income statement.
IAS 1 and IAS 8 (amendment) - Definition of material 1/jan/20 This amendment revises the concept of "material". Includes
clarifications as to obscured information, its effect being similar to the
omission or distortion of information; and also, clarifications as to the
term 'primary users of general purpose financial statements', defined
as 'existing or potential investors, lenders and other creditors' that rely
on general purpose financial statements to obtain a significant part of
the information that they need.
Conceptual framework - Amendments to references in other IFRS 1/jan/20 As a result of the publication of the new conceptual framework, the IASB
introduced changes to the text of several standards and interpretations,
in order to clarify the application of the new definitions of asset /
liability and expense / income, in addition to some of the
characteristics of financial information. These amendments are
retrospective, except if impractical.

At June 30, 2020 no material impacts arise in the attached consolidated financial statements from the adoption of the standards, interpretations, amendments and revisions above referred.

1.3. STANDARDS, INTERPRETATIONS, AMENDMENTS AND REVISIONS NOT YET ENDORSED BY THE EUROPEAN UNION

The following standards, interpretations, amendments and revisions, with mandatory application in future years, as at June 30, 2020, were not yet endorsed by the European Union:

Applicable in the European
Standard / Interpretation Union in the financial years Contents
started in or after
IFRS 16 (amendment) - Leases – COVID-19 related rent concessions 1/jun/20 This amendment introduces a practical expedient for lessees (but not for
lessors), which exempts them from assessing whether the rent
concessions granted by lessors under COVID-19 are a modification to the
lease contract, when three criteria are cumulatively met: i) the change in
lease payments results in a revised fee for the lease that is substantially
equal to, or less than, the fee immediately prior to the change; ii) any
reduction in lease payments only affects payments due on or before
June 30, 2021; and iii) there are no substantive changes to other lease
terms and conditions. Lessees that choose to apply this practical
expedient, recognise the change in rent payments, as variable rents in
the period(s) in which the event or condition leading to the payment
reduction occurs. This amendment is applied retrospectively with the
impacts reflected as an adjustment to retained earnings (or another
equity component, as appropriate) at the beginning of the annual
reporting period in which the lessee applies this amendment for the first
time.
IFRS 1 - Subsidiary as an IFRS adoper for the first time 1/jan/22 This improvement clarifies that when the subsidiary chooses to measure
its assets and liabilities at the amounts included in the parent company's
consolidated financial statements, the measurement of the cumulative
translation differences of all foreign operations can be made at the
amounts that would be recorded in the financial statements.
consolidated, based on the transition date of the parent company to
IFRS.
IFRS 9 - Derecognition of liabilities - costs incurred to be included in
the 10% variation test
1/jan/22 This improvement clarifies that in the scope of derecognition tests
carried out on renegotiated liabilities, the borrower must determine the
net amount between fees paid and fees received considering only the
fees paid or received between the borrower and the financier, including
fees paid or received, by any one of the entities on behalf of the other.
IFRS 16 - Leasing incentives 1/jan/22 This improvement refers to the amendment to Illustrative example 13
that accompanies IFRS 16, to eliminate inconsistencies in the accounting
treatment of lease incentives, attributed by the lessor.
IAS 41 - Taxation and measure of fair value 1/jan/22 This improvement eliminates the requirement to exclude tax cash flows
when measuring the fair value of biological assets, ensuring consistency
with the principles of IFRS 13 - 'Fair value'.
IFRS 1 (amendment) – Presentation of financial statements –
classification of liabilities
1/jun/22 This amendment intends to clarify that liabilities are classified as either
current or non-current balances depending on the rights that an entity
has to defer its payment, at the end of each reporting period. The
classification of liabilities is not affected by the entity's expectations (the
assessment should determine whether a right exists, but should not
consider whether or not the entity will exercise that right), or by events
occurring after the reporting date, such as the non-compliance of a given
"covenant". This amendment also introduces a new definition of
"settlement" of a liability. This amendment is applied retrospectively.
Applicable in the European
Standard / Interpretation Union in the financial years Contents
started in or after
IFRS 3 (amendment) - Reference to the Conceptual framework 1/jun/22 This amendment updates the references to the conceptual framework in
the text of IFRS 3, without changing the accounting requirements for
business combinations. This amendment also clarifies the accounting
treatment to be given to contingent liabilities and liabilities under IAS 37
and IFRIC 21, incurred separately versus within a business combination.
This amendment is applied prospectively.
IAS 16 (amendment) - Proceeds before intended use 1/jun/22 This amendment changes the accounting treatment of the proceeds
obtained from the sale of products that resulted from the production
test phase of property, plant and equipment, prohibiting their deduction
to the acquisition cost of assets. This amendment is applied
retrospectively without restating comparatives.
IFSR 37 (amendment) - Onerous contracts 1/jun/22 This amendment specifies that when assessing whether a contract is
onerous or not, only expenses directly related to the performance of the
contract, such as incremental costs related to direct labor and materials
and the allocation of other expenses directly related to the allocation of
depreciation expenses of tangible assets used to carry out the contract,
can be considered. This amendment must be applied to contracts that,
at the beginning of the first annual reporting period to which the
amendment is applied, still include contractual obligations to be
satisfied, without restating comparatives.
IFRS 17 - Insurance contracts 1/jan/23 This new standard replaces IFRS 4 and applies to all entities issuing
insurance contracts, reinsurance contracts and investment contracts
with discretionary participation characteristics. IFRS 17 is based on the
current measurement of technical liabilities at each reporting date. The
current measurement can be based on a complete "building block
approach" or a "premium allocation approach". The recognition of the
technical margin is different if it is positive or negative. IFRS 17 is applied
retrospectively.
IFSR 17 (amendment) - Insurance contracts 1/jan/23 This amendment includes specific changes in eight areas of IFRS 17, such
as: i) scope; ii) level of aggregation of insurance contracts; iii)
recognition; iv) measurement; v) modification and derecognition; vi)
presentation of the statement of financial position; vii) recognition and
measurement of the Income statement; and viii) disclosures. This
amendment also includes clarifications, which aim to simplify some of
the requirements of this standard and ease transition. IFRS 17 is applied
retrospectively.

At the present date, no material impacts are expected from the adoption of the standards, interpretations, amendments and revisions above referred.

2. Business segments

The GROUP uses its internal organization for management purposes as a basis for its reporting of information by business segments.

The GROUP is organized into the following geographical areas: Europe (subdivided in Engineering and Construction and Environment and Services), Africa and Latin America.

The amounts regarding MOTA-ENGIL, SGPS, MOTA-ENGIL CAPITAL and its affiliated companies and other instrumental companies are included in the heading "Others, eliminations and intra-group", which also include the amounts related to balances and transactions maintained between the business segments.

These segments were identified taking in consideration the fact that they correspond to units of the GROUP that develop activities where it is possible to identify separately income and expenses, for which separate financial information is produced, for which the operating results are reviewed by management and over which decisions are taken.

The companies / entities included in the consolidation perimeter and the respective consolidation methods, head offices, effective holding percentage, activity, incorporation date and acquisition date are those disclosed in Appendix A.

In the six-month periods ended at June 30, 2020 and 2019, the financial information by business segment can be analysed as follows:

Sales and services rendered EBITDA
2020 2019 2020 2019
Europe Engineering and Construction 330 652 283 511 12 872 10 480
Europe Environment and Services 137 296 126 840 34 982 29 433
Africa 385 273 452 580 69 441 91 339
Latin America 305 275 457 494 26 506 59 078
Others, eliminations and intra-group (1 819) 23 904 274 3 685
Mota-Engil Group 1 156 677 1 344 329 144 075 194 016

EBITDA corresponds to the algebraic sum of the following headings of the consolidated income statement: "Sales and services rendered" + "Costs of goods sold, mat.cons., Changes in production and Subcontractors" + "Third-party suppliers and services" + "Wages and salaries" + "Other operating income / (expenses)".

In the six-month periods ended at June 30, 2020 and 2019, the information regarding amortisations and depreciations, as well as, regarding provisions and impairment losses can be analysed as follows:

Amortisations and depreciations Provisions and impairments losses
2020 2019 2020 2019
Europe - Engineering and Construction 10 817 9 876 99 (219)
Europe - Environment and Services 31 169 30 365 (795) 263
Africa 43 291 48 678 9 210 (4 183)
Latin America 8 964 11 077 5 095 1 113
Others, eliminations and intra-group 1 557 2 046 1 966 4 262
Mota-Engil Group 95 798 102 043 15 575 1 236

In the six-month period ended at June 30, 2020, the provisions and impairments losses recorded were assign, essentially, to the potencial negative effects caused by the Covid-19 pandemic in the future colection of some accounts receivable and in the realization of some non-current assets.

As at June 30, 2020 and December 31, 2019, the net assets and liabilities of the GROUP by business segment can be analysed as follows:

Assets Liabilities
30/06/2020 31/12/2019 30/06/2020 31/12/2019
Europe Engineering and Construction 996 891 986 933 744 907 761 127
Europe Environment and Services 966 361 953 345 772 058 771 425
Africa 2 042 333 1 989 463 1 678 509 1 620 215
Latin America 1 083 933 1 320 677 1 220 161 1 146 067
Others, eliminations and intra-group (260 651) (195 854) 178 096 427 701
Mota-Engil Group 4 828 866 5 054 564 4 593 731 4 726 535

As at June 30, 2020 and December 31, 2019, the capex and the financial investments in associates and in jointly controlled companies by business segment can be analysed as follows:

Capex (a) Financial investments in associates
and in jointly controlled companies
30/06/2020 31/12/2019 30/06/2020 31/12/2019
Europe - Engineering and Construction 15 355 19 456 - -
Europe - Environment and Services 25 987 100 670 2 891 2 834
Africa 40 711 70 864 2 941 8 739
Latin America 11 284 69 354 98 680 104 153
Others, eliminations and intra-group 832 2 022 4 938 8 084
Mota-Engil Group 94 170 262 366 109 451 123 810

In the six-month period ended at June 30, 2020, there were no changes in the GROUP business segments nor in the methodology of calculation and accounting the amounts included in them.

3. Other operating income / (expenses)

(a) Net increase (increases-disposals) occurred in the captions intangible assets, tangible assets and rights of use assets.

In the six-month periods ended at June 30, 2020 and 2019, this heading included circa of 7,000 thousand Euros and 12,700 thousand Euros, respectively, of positive fair value changes in some investment properties held by the GROUP in Mexico.

4. Financial results

The financial results (financial income and gains - financial costs and losses) for the six-month periods ended at June 30, 2020 and 2019 can be analysed as follows:

2020 2019
Financial income and gains
Assets measured at amortised cost
Interest income 20 872 14 709
Prompt payment discounts received 209 162
Favourable exchange differences 97 888 25 108
Other financial assets
Dividends received - Other financial investments recorded at fair value through the comprehensive income 1 799 -
Other financial income and gains 6 173 3 954
126 941 43 933
Financial costs and losses
Liabilities measured at amortised cost
Interest expenses 67 599 58 403
Prompt payment discounts granted 188 313
Unfavourable exchange differences 52 070 12 503
Other financial liabilities:
Other financial costs and losses 49 346 24 573
169 203 95 793
Financial results (42 262) (51 860)

5. Earnings per share

The COMPANY issued only ordinary shares and therefore there are no special dividends or voting rights.

There are no situations in the GROUP that might lead to a reduction of earnings per share as a result of options, warrants, convertible bonds or other rights associated to ordinary shares. Therefore, there is no dissimilarity between the calculation of basic earnings per share and the calculation of diluted earnings per share.

In the six-month periods ended at June 30, 2020 and 2019 no ordinary shares were issued.

In the six-month periods ended at June 30, 2020 and 2019, the calculation of the earnings per share can be detailed as follows:

2020 2019
Consolidated net profit of the period attributable to the Group: (I) (5 041) 8 126
Average number of ordinary shares (II) 237 505 141 237 505 141
Average number of own shares during the period (III) 6 091 581 6 091 581
Average number of shares outstanding (II - III) 231 413 560 231 413 560
Earnings per share:
basic (I) / (II - III) -€ 0,022 0,035
diluted (I) / (II - III) -€ 0,022 0,035

6. Goodwill

The information regarding Goodwill as at June 30, 2020 and December 31, 2019, can be analysed as follows:

30/06/2020 31/12/2019
Net
Goodwill
Net
Goodwill
Europe Engineering and Construction
Mota-Engil Central Europe Poland 5 648 5 764
5 648 5 764
Europe Environment and Services
Suma Group 9 380 9 380
Others 1 023 1 023
10 403 10 403
Africa
Estradas do Zambeze 2 711 -
Others 1 047 1 166
3 758 1 166
Latin America
Empresa Construtora Brasil 3 273 4 430
Consita 348 470
3 621 4 900
23 430 22 233

The movements occurred in Goodwill during the six-month periods ended at June 30, 2020 and 2019 were as follows:

2020 2019
Goodwill at the beginning of the semester 22 233 36 852
Changes in goodwill due to changes in the perimeter
Sistemas Electricos Metropolitanos - 2 739
Estradas do Zambeze 2 711 -
2 711 2 739
Changes in goodwill due to exchange differences
Mota-Engil Central Europe Poland (116) 37
Empresa Construtora Brasil (1 157) 96
ME Construction South Africa - 230
Others (241) 11
(1 514) 374
Goodwill at the end of the semester 23 430 37 226

In the six-month period ended at June 30, 2020, the GROUP increased its shareholding in 55% in ESTRADAS DO ZAMBEZE, obtaining the control over this entity and helding now 95% of its share capital.

7. Financial investments in associates

As at June 30, 2020 and December 31, 2019, the detail of the financial investments in associates was as follows:

30/06/2020 31/12/2019
Concessionária Autopista Cardel (Latin America segment) 27 514 29 908
Autopista Urbana Siervo de la Nación (Latin America segment) 24 637 27 638
Concessionária Autopista Tuxpan-Tampico (Latin America segment) 21 191 25 046
Associated companies of Suma Group (Europe - Environment and Services segment) 2 891 2 834
SPRI (Africa segment) 2 026 2 480
Estradas do Zambeze and its affiliate (Africa segment) - 5 556
Others 7 220 10 446
85 479 103 908

In the six-month period ended at June 30, 2020, the reduction occurred in this heading arise, essentially, from the negative exchange impact verified in the financial investments held in the Mexican highway concessionaire companies, as well as, the change of the consolidation method of ESTRADAS DO ZAMBEZE, as a result of the obtainance of control during the period.

8. Other financial investments

As at June 30, 2020 and December 31, 2019, the detail of the other financial investments was as follows:

30/06/2020 31/12/2019
Other financial investments recorded at amortised cost (non-current)
Angola sovereign bonds 184 728 201 118
Ivory Coast sovereign bonds -
10 960
184 728 212 078
Other financial investments recorded at amortised cost (current)
Angola sovereign bonds 1 743 8 741
Ivory Coast sovereign bonds -
1 827
1 743 10 568
186 472 222 646
Other financial investments recorded at fair value through other comprehensive income
BAI-Banco Angolano de Investimentos 56 573 40 776
STI 4 577 5 144
Auto - Sueco Angola 2 724 2 724
Concessionária Alternativas Viales 1 299 1 480
Others 4 211 3 964
69 384 54 088

9. Investment properties

In the six-month period ended at June 30, 2020, the movement occurred in this heading was justified, essentially, by the consolidation of LOGZ (following the acquisition of 70% of its share capital), by the positive fair value change occurred in some investment properties held in Mexico and by the negative exchange effect verified in the investment properties held by the GROUP in Latin America.

10. Cash and cash equivalents

The amounts included in the headings "Cash and cash equivalents with recourse" as at June 30, 2020 and December 31, 2019 are as follows:

Demand deposits
Term deposits
Total
30/06/2020 31/12/2019 30/06/2020 31/12/2019 30/06/2020 31/12/2019
Other treasury applications - 525 - - - 525
Bank deposits and cash in hand
Bank deposits 309 554 296 895 78 346 98 303 387 899 395 198
Cash in hand 3 083 2 537 - - 3 083 2 537
312 637 299 957 78 346 98 303 390 982 398 260

The amounts included in the heading "Cash and cash equivalents without recourse" as at June 30, 2020 and December 31, 2019 are as follows:

Demand deposits
30/06/2020 31/12/2019
Bank deposits and cash in hand
Bank deposits 43 773 34 572
Cash in hand 26 21
43 799 34 593

11. Non-current assets / liabilities held for sale

The information regarding the non-current assets and liabilities held for sale as at June 30, 2020 and December 31, 2019, can be analysed as follows:

30/06/2020 31/12/2019
Financial investment in Lineas Group (Others, eliminations and intra-group segment) 89 396 89 396
Takargo assets (Others, eliminations and intra-group segment) 30 754 31 092
APP Coatzacoalcos Villahermosa assets (Latin America segment) - 131 347
Mercado Urbano assets (Others, eliminations and intra-group segment) - 14 577
Others (Others, eliminations and intra-group segment) 6 356 7 995
Non-current assets held for sale 126 507 274 407
30/06/2020 31/12/2019
Takargo liabilities (Others, eliminations and intra-group segment) 25 540 23 804
APP Coatzacoalcos Villahermosa liabilities (Latin America segment) - 97 964
Mercado Urbano liabilities (Others, eliminations and intra-group segment) - 7 832
Non-current liabilities held for sale 25 540 129 600

In the six-month period ended at June 30, 2020, the movement occurred in the headings non-current assets / liabilities held for sale was justified, essentially, by the sale of 100% of MERCADO URBANO – GESTÃO IMOBILIÁRIA, SA. and by the partial sale with loss of control of APP COATZACOALCOS VILLAHERMOSA, SAPI DE CV. Together, those transactions generated a capital gain of circa of 2 million Euros.

12. Loans

The amounts related to loans with recourse as at June 30, 2020 and December 31, 2019 are as follows:

Current
(1 year)
2 years 2 to 5 years over 5 years Non-current Total
30/06/2020
Non-convertible bond loans 67 048 12 533 328 557 - 341 090 408 138
Amounts owed to credit institutions
Bank loans 315 837 243 579 389 562 70 612 703 753 1 019 590
Overdraft facilities 43 342 - - - - 43 342
Revolving facilities 55 217 - - - - 55 217
Other loans obtained
Commercial paper issues 93 307 47 517 7 472 - 54 990 148 297
Other loans 14 278 5 207 964 - 6 171 20 448
589 028 308 836 726 555 70 612 1 106 003 1 695 032
31/12/2019
Non-convertible bond loans 61 059 21 737 331 575 - 353 312 414 371
Amounts owed to credit institutions
Bank loans 560 606 176 790 273 234 10 924 460 948 1 021 554
Overdraft facilities 55 075 - - - - 55 075
Revolving facilities 64 616 - - - - 64 616
Other loans obtained
Commercial paper issues 99 990 24 500 28 000 - 52 500 152 490
Other loans 246 - - - - 246
841 592 223 027 632 809 10 924 866 760 1 708 352

Although the commercial paper issues fall due in one year or less, generally they are covered by medium and long term programmes which ensure their automatic renewal over time. Under these circumstances and since the GROUP'S Board of Directors intends to pursue the use of the aforesaid programmes while they are in force, it recorded those commercial paper issues as liabilities due in the medium and long term.

The amounts related to loans without recourse as at June 30, 2020 and December 31, 2019 are as follows:

Current
(1 year)
2 years 2 to 5 years over 5 years Non-current Total
30/06/2020
Amounts owed to credit institutions
Bank loans 24 447 11 430 86 191 19 268 116 889 141 336
Revolving facilities 20 088 - - - - 20 088
Other loans obtained
Commercial paper issues 2 500 2 500 7 439 - 9 939 12 439
47 035 13 930 93 629 19 268 126 827 173 863
31/12/2019
Amounts owed to credit institutions
Bank loans 27 596 13 228 71 079 14 929 99 236 126 833
Overdraft facilities 2 039 - - - -
2 039
Revolving facilities 18 013 - - - - 18 013
Other loans obtained
Commercial paper issues 2 500 2 500 7 500 1 189 11 189 13 689
50 148 15 728 78 579 16 118 110 425 160 573

13. Other financial liabilities and lease liabilities

The amounts related to other financial liabilities and lease liabilities as at June 30, 2020 and December 31, 2019 are as follows:

Non-current Current
30/06/2020 31/12/2019 30/06/2020 31/12/2019
Lease liabilities 213 518 203 883 78 349 69 999
Other financial liabilities:
Factoring - - 111 237 112 481
Credit sales - - - 95 674
- - 111 237 208 156

14. Changes in the consolidation perimeter

In the six-month period ended at June 30, 2020, the changes occurred in the consolidation perimeter were as follows:

Increase of participation percentage

Business segment - Europe - Environment and services
Logz - Atlantic Hub, S.A. (company in which control was acquired)
Business segment - Africa
Estradas do Zambeze (company in which control was acquired)
Operadora Estradas do Zambeze (company in which control was acquired)

In the six-month period ended at June 30, 2020, the GROUP acquired an additional stake of 70% of LOGZ share capital. The impact of this transaction on the attached consolidated financial statements can be summarized as follows:

2020
Book value of net assets acquired (12 149)
Accounts receivable acquired (loans and supplementary capital) 26 329
Fair value of the investment properties (13 024)
Amount payed (1 157)
Acquisition difference -

In the six-month period ended at June 30, 2020, the GROUP acquired an additional stake of 55% of ESTRADAS DO ZAMBEZE and OPERADORA ESTRADAS DO ZAMBEZE share capital. The impact of this transaction on the attached consolidated financial statements can be summarized as follows:

2020
Acquision of 55% of the share capital of the subsidiaries Estradas do Zambeze and Operadora Estradas do Zambeze
Book value of the net assets acquired 4 333
Amount payed 89
Result generated in the operation recognized in the consolidated income statement - I 4 422
Effect of the revaluation (through gain of control) of the subsidiaries Estradas do Zambeze and Operadora Estradas do Zambeze
Fair value of the financial investment held 5 561
Book value of the net assets held (9 951)
Result generated in the operation recognized in the consolidated income statement - II (4 391)
Gain recognized (recorded in Gains / (losses) in the disposal of subsidiaries, jointly controlled and associated companies") - (I) + (II) 32

In the six-month period ended at June 30, 2020, ESTRADAS DO ZAMBEZE, OPERADORA ESTRADAS DO ZAMBEZE and LOGZ contribution to the consolidated income statement was as follows:

Estradas do Zambeze Operadora Estradas do
Zambeze
LogZ
Sales and services rendered 3 934 2 164 -
Cost of goods sold, mat. cons., Changes in production and Subcontractors (2 090) (25) -
Third-party supplies and services (256) (1 106) (12)
Wages and salaries (294) (295) (29)
Other operating income / (expenses) 508 (78) (5)
Amortisations and depreciations (43) (27) -
Financial results (547) (2) 1 590
Income before taxes 1 211 631 1 544
Income tax (193) (75) (43)
Net profit of the period 1 018 556 1 502

Decrease of participation percentage

Business segment - Latin America
APP Coatzacoalcos Villahermosa (company in which control was lost)

In the six-month period ended at June 30, 2020, the GROUP sold 35% of APP COATZACOALCOS VILLAHERMOSA SAPI DE CV share capital having also lost the control over that company, which became consolidated by the equity method, and proceeded to the revaluation of the financial investment retained in accordance with the sale price established in the above referred operation. The global impact of this transaction on the attached consolidated financial statements can be summarized as follows:

2020
Disposal of 35% of the share capital of the subsidiary APP Coatzacoalcos Villahermosa
Book value of net assets sold (9 106)
Amount received 10 041
Result generated in the operation recognized in the consolidated income statement - I 936
Effect of the revalution (following the loss of control) of the subsidiary APP Coatzacoalcos Villahermosa
Fair value of the financial investment retained 11 477
Book value of net assets held (10 407)
Result generated in the operation recognized in the consolidated income statement - II 1 070
Gain recognized (recorded in Gains / (losses) in the disposal of subsidiaries, jointly controlled and associated companies") - (I) + (II) 2 005

In the six-month period ended at June 30, 2020, APP COATZACOALCOS VILLAHERMOSA contribution to the consolidated income statement was as follows:

Sales and services rendered 9 528
Cost of goods sold, mat. cons., Changes in production and Subcontractors (1 426)
Third-party supplies and services (511)
Other operating income / (expenses) (6 085)
Amortisations and depreciations (1)
Financial results (967)
Income before taxes 537
Income tax (161)
Net profit of the period 376

Companies incorporated

Business segment - Europe Engineering and Construction
Project Development 3 Sp. Z.o.o.
Project Development 4 Sp. Z.o.o.
Project Development 5 Sp. Z.o.o.
Project Development 6 Sp. Z.o.o.
Business segment - Africa
Mota-Engil Guinée Mandiana
Twine, Lda
Business segment- Latin America

Companies consolidated for the first time

Business segment - Africa
Mota-Engil Engenharia e Construção África PTY

Exit of companies

Business segment - Europe - Engineering and Construction
Mercado Urbano - Gestão Imobiliária, SA. (sold)

In the six-month period ended at June 30, 2020, the GROUP sold 100% of MERCADO URBANO – GESTÃO IMOBILIÁRIA, SA share capital. The impact of that transaction on the attached consolidated financial statements can be summarized as follows:

Book value of the net assets sold (6 676)
Amount received 6 686
Gain recognized (recorded in Gains / (losses) in the disposal of subsidiaries,jointly controlled and associated companies") 10

In the six-month period ended at June 30, 2020, MERCADO URBANO – GESTÃO IMOBILIÁRIA, SA contribution to the consolidated income statement was as follows:

Mercado Urbano
698
(336)
(1 751)
(28)
(240)
(1 658)
398
(1 261)

15. Others matters – Covid-19

Following the appearance and spread of the Covid – 19 pandemic, which has plagued the planet since the beginning of the year of 2020, we detailed below some of its impacts in the GROUP's financial report as at June 30, 2020:

In terms of activity and profitability

As shown in the attached consolidated financial statements, the GROUP's activity, namely in the ENGINEERING AND CONSTRUCTION business, suffered a decrease of circa of 14% as a result of the several constraints caused by the pandemic, being worth to highlight the interruptions / stopages of production occurred in several projects on which the GROUP was performing due to the restrictive measures of public health implemented in the different countries where it operates, as well as, the logistical constraints faced in moving people, goods and equipments. That decreased was felt mainly in the Africa and Latin America regions. Furthermore, in the last one, it still exits few visibility about the moment of normalization of the activity.

Regarding the ENVIRONMENT AND SERVICES business, which comprise the collection, treatment and recovery of waste, as well as, the production and sale of energy, the impact caused by the pandemic was still slight since as those activities correspond to essential and strategic services for the normal functioning of the communities the ones continue to be provided with some normality.

In terms of profitability, as a result of the interruptions / stopages occurred in some of the projects performed by the GROUP, with the consequent negative impact in the productivity and in the dilution of fixed costs, the EBITDA also suffered a decrease of circa of 26% once again influenced by the less positive performance of the Africa and Latin America regions. Regarding this matter, it should be highlighted that, when those projects resume their normal activity, the GROUP expects that the profitability levels achieved in the past can be reached. On the other hand, and under the established contracts, several contacts were immediately initiated with the customers in order to recover part of the abnormal costs incurred, as well as, to reschedule the completion deadlines of the projects in order to mitigate the risk of occurrence of future non-compliances.

In terms of financing

Regarding this matter, despite the lower profitability of the operations, the GROUP'S financing needs have not significantly worsened, have it managed to finance its activity through the credit facilities available in Portugal or in the other countries in which it operates. In this regard, we highlight the Covid lines obtained in Portugal and the adherence to the moratorium process established by the Portuguese State / financial system that allowed the GROUP to postpone circa of 340 million euros of capital and interest reimbursements to the financial institutions with which it maintained outstanding financial responsibilities in Portugal. On the other hand, as a result of the massive injections of liquidity performed by the central banks and the measures adopt by several countries to support the economy, there has not been until this date a significant increase in the GROUP's financing costs. Finally, as of this date, no significant increase in the average period of customers collections arise that has affected the GROUP's financing needs.

In terms of investment

In this chapter, as a result of the constraints arising from the pandemic, namely the postponement / interruption of some relevant projects, the GROUP postponed part of the planned investment in order to avoid a higher burden in its treasury. Therefore, the investment performed in the semester was mainly channeled to the waste treatment and collection business in Portugal and in the Ivory Coast, where the GROUP assumed investment commitments in the past, and for some Engineering and Construction projects where the procurement and acquisition processes were already underway (namely for a medium and long-term mining project in Guinea-Conakry).

In terms of liquidity

As shown below, and partly as a result of the moratoriums agreed with the financial institutions operating in Portugal, the GROUP'S liquidity gap at 1 year as at June 30, 2020, amounted to 11 million Euros. In addition, in accordance with the liquidity management policy defined by the GROUP and in order to maintain an adequate liquidity reserve, as at June 30, 2020, it had available and unused credit lines of circa of 196 million euros. On the other hand, after June 30, 2020, the GROUP has already refinanced or is in the process of refinancing circa of 314 million euros of bank debt. Finally, and in the event of an extreme worsening of the economic and financial conditions, the GROUP also has the possibility to dispose of some of its non-current assets, namely part of the sovereign bonds it keeps recorded in its statement of financial position and which totalled circa of 185 million Euros. Consequently, it is the GROUP belief, even in a scenario of huge uncertainty regarding the future, that within a 12 months period it has the appropriate financial resources to fulfill all of its responsibilities when they become due.

As at June 30, 2020, the GROUP´s liquidity position (capital component) can be analysed as follows:

30/06/2020
< 1 year more than 1 year Indeterminate Total
Financial assets recorded at amortised cost
Cash and cash equivalents - demand and term deposits 434 781 - - 434 781
Customers and other debtors 979 167 155 275 - 1 134 442
Other financial investments recorded at amortised cost 1 743 184 728 - 186 472
Financial assets recorded at fair value
Derivative financial instruments -
100
- 100
Other financial investments recorded at fair value through other comprehensive income -
-
69 384 69 384
Total financial assets under the scope of IFRS-9 1 415 691 340 104 69 384 1 825 179
Other non financial assets
Inventories 290 482 - - 290 482
Contract assets 619 024 - - 619 024
Other current and non current assets 99 119 5 592 - 104 711
Corporate income tax 39 901 - - 39 901
Non-current assets held for sale 126 507 - - 126 507
Total non financial assets 1 175 033 5 592 - 1 180 625
Total assets 2 590 724 345 696 69 384 3 005 804
Financial liabilities recorded at amortised cost
Loans with or without recourse 636 064 1 232 831 - 1 868 894
Other financial liabilities 111 237 - - 111 237
Suppliers and sundry creditors 776 197 97 640 - 873 836
1 523 498 1 330 471 - 2 853 968
Financial liabilities recorded at fair value
Derivative financial instruments -
684
- 684
Total financial liabilities under the scope of IFRS-9 1 523 498 1 331 154 - 2 854 652
Financial liabilities out of the scope of IFRS - 9
Lease liabilities 78 349 213 518 - 291 866
Total financial liabilities 1 601 846 1 545 356 - 3 146 518
Other non financial liabilities
Liabilities associated with customers contracts 333 386 47 183 - 380 569
Other current and non current liabilities 595 007 153 170 - 748 177
Corporate income tax 23 722 - - 23 722
Non-current liabilities held for sale 25 540 - - 25 540
Total non financial liabilities 977 655 200 353 - 1 178 009
Total liabilities 2 579 502 1 745 709 - 4 324 527
Liquidity GAP 11 222 (1 400 013) 69 384 (1 318 722)

In terms of main estimates and assumptions used in the preparation of the attached consolidated financial statements

As a result of the uncertainty and the negative impacts triggered up to date by the pandemic, the GROUP proceeded in the preparation of the attached consolidated financial statements to a review of the main estimates and assumptions used with a special focus on performing sensitivity analyzes to the main impairments tests performed at December 31, 2019 to goodwill, tangible assets, intangible assets, deferred tax assets and accounts receivable (in the component of expected losses and time value of money). As a result of the analysis carried out, and taking in consideration several scenarios, all of them more pessimistic than the ones used at December 31, 2019 (with WACC´s worsening up to 1% and with significant reductions in EBITDA and cash flows estimated for 2020 and 2021), they were recorded, in a prudent way, in the first half of 2020 impairment losses and provisions of circa of 16 million Euros.

In terms of going concern

Although a high level of uncertainty remains regarding the normalization of the world economy and the GROUP activity, particularly in some countries in Africa and in the majority of the countries in Latin America, due (1) to the high backlog that the GROUP has to perform, which inclusive increased in the first half of the year, (2) due to the liquidity position it presents for the next 12 months, (3) due to the absence of material losses in the first half of the year and expected in the coming months and (4) due to the internal management measures that have already been adopted (implementation of efficiency programs, postponement of investments, closure of less profitable or small markets, renegotiation of contracts with customers, etc.) it is the GROUP belief that it has the adequate resources to maintain its activities, making no intention to cease them in the short term and so its Board of Directors considers that it is appropriate to use the going concern assumption in the preparation of the attached consolidated financial statements.

In terms of subsequent events

Except for the matter referred in the paragraph below, between June 30, 2020 and the approval date for issuance of the attached consolidated financial statements, no relevant events or additional uncertainties regarding the evolution of the pandemic, as well as, over the future activity of the GROUP occur which produced or which could produce material impacts in the attached consolidated financial statements.

Strategic partnership and investment agreement

Although with no material impact in the attached consolidated financial statements, it is worth to highlight, as described in more detailed in the management report, that it is in the last stages of negotiation a strategic partnership and investment agreement with one of the largest infrastructures groups in the world.

16. Approval of the financial statements

The attached consolidated financial statements were approved and authorized for issue by the Board of Directors at August 25, 2020.

Appendix A. Consolidated companies

COMPANIES INCLUDED IN THE CONSOLIDATION BY THE FULL CONSOLIDATION METHOD

The companies included in the attached consolidated financial statements using the full consolidation method, their head offices, effective holding percentage, activity, incorporation date and acquisition date were as follows:

Designation Head Office Effective holding
percentage
Activity Incorporation date Acquisition date
Parent Company of the Group and related activities
Mota-Engil, SGPS, S.A., Sociedade Aberta ("Mota-Engil SGPS") Portugal
(Porto)
- Management of financial holdings Aug-90 -
Bay-Park Korlátolt Felelősségű Társaság Kft. ("Bay Park") Hungary 76.73 Real Estate development - Dec-08
Through Obol Invest
Corgimobil - Empresa Imobiliária das Corgas, Lda. ("Corgimobil")
(Budapest)
Portugal
76.73
97.25
Construction works, studies and real - Nov-00
Through Mota-Engil Real Estate Portugal
Dmowskiego Project Development, Sp. z.o.o. ("Dmowskiego")
(Cascais)
Poland
97.25
100.00
estate
Real Estate development
Aug-07 -
Through Mota-Engil Real Estate, SGPS
Gesar - Gestão de Águas Residuais do Algarve ("GESAR ACE Manvia")
(Krakow)
Portugal
100.00
54.00
Wastewater treatment Apr-15 -
Through Manvia
Hungária Hotel Ingatlanforgamazó, Kereskedelmi, és Szolgáltató Kft. ("Hotel Achat Hungary")
(Linda-a-Velha)
Hungary
54.00
100.00
Jun-08 -
Through Mota-Engil Real Estate, SGPS (Budapest) 100.00 Real Estate development
Kordylewskiego Project Development W Likwidacji Sp. z o.o. ("Kordylewskiego")
Through Mota-Engil Real Estate, SGPS
Poland
(Krakow)
100.00
100.00
Real Estate development Feb-05 -
Largo do Paço – Investimentos Turísticos e Imobiliários, Lda. ("Largo do Paço")
Through Mota–Engil Capital
Portugal
(Amarante)
100.00
100.00
Real Estate development - Oct-01
Logz - Atlantic Hub, S.A. ("Logz") Portugal 100.00 Real Estate development Jul-08 Feb-20
Through Mota–Engil Ambiente e Serviços
Manvia - Manutenção e Exploração de Instalações e Construção, S.A. ("Manvia")
(Linda-a-Velha)
Portugal
100.00
90.00
Maintenance and operation of facilities Jul-94 Jun-98
Through Mota–Engil Ambiente e Serviços (Linda-a-Velha) 90.00
ME 3I, SGPS, S.A. ("ME 3I SGPS")
Through Mota-Engil Indústria e Inovação
Portugal
(Linda-a-Velha)
61.20
61.20
Management of financial holdings Oct-11 -
Mota-Engil Capital, S.A. ("Mota-Engil Capital") Portugal 100.00 Management of financial holdings Feb-18 -
Through Mota-Engil SGPS
ME Investitii AV s.r.l. ("Mota-Engil Investitii")
(Porto)
Romania
100.00
100.00
- Sep-07
Through Mota-Engil Real Estate, SGPS (Bucharest) 100.00 Real Estate development
Mota-Engil Real Estate Hungary Ingatlanforgalmazó, Kereskedelmi és Szolgáltató Kft.("Mota-Engil
Real Estate Hungary")
Hungary 100.00 Real Estate development Jul-05 -
Through Mota-Engil Real Estate, SGPS
Mota-Engil Real Estate Portugal, S.A. ("Mota-Engil Real Estate Portugal")
(Budapest)
Portugal
100.00
100.00
Sep-01 -
Through Mota-Engil Real Estate, SGPS (Porto) 100.00 Real Estate development
Mota-Engil Real Estate, SGPS, S.A. ("Mota-Engil Real Estate SGPS") Portugal 100.00 Management of financial holdings Dec-02 -
Through Mota-Engil Capital
MESP - Mota Engil Serviços Partilhados, Administrativos e de Gestão, S.A. ("Mota-Engil Serviços
(Porto)
Portugal
100.00
100.00
Dec-02 -
Partilhados")
Through Mota-Engil SGPS
(Porto) 100.00 Administrative Services
MK Contractors, LLC ("MKC")
Through Mota-Engil Engenharia e Construção
USA
(Miami)
100.00
100.00
Real Estate development Mar-02 -
Mota-Engil África, N.V. ("ME África NV") Netherlands 100.00 Management of financial holdings Oct-12 -
Through Mota-Engil SGPS (Amsterdam)
Portugal
100.00
Mota-Engil Indústria e Inovação, SGPS, S.A. ("Mota-Engil Indústria e Inovação")
Through Mota-Engil SGPS
(Linda-a-Velha) 100.00
100.00
Management of financial holdings Nov-10 -
Mota-Engil Minerals Mining Investment B.V. ("ME Minerals Mining Investment BV") Netherlands
(Amsterdam)
100.00 Management of other companies Oct-10 -
Through Mota-Engil SGPS
Mota-Engil Renewing, S.A. ("ME Renewing")
Portugal 100.00
100.00
Energy, sustainable mobility, recycling and Aug-18 -
Through Mota-Engil Capital (Porto) 100.00 reuse and resource utilization
Öböl Invest Befektetési És Üzletviteli Tanácsadó Korlátolt Felelősségű Társaság Kft. ("Obol Invest") Hungary 77.50 Real Estate development - May-05
Through Mota-Engil Real Estate, SGPS (Budapest) 77.50
Öböl Xi. Ingatlanhasznosítási Beruházó És Szolgáltató Korlátolt Felelősségű Társaság Kft. ("Obol XI")
Through Obol Invest
Hungary
(Budapest)
76.73
76.73
Real Estate development - Dec-03
Proempar - Promoção e Gestão de Parques Empresariais e Tecnológicos, S.A. ("Proempar") Portugal
(Porto)
100.00 Marketing, management and exploitation
of technological and industrial business
parks
Oct-06 -
Through Mota-Engil Real Estate Portugal
PTT - Parque Tecnológico do Tâmega, S.A. ("PTT")
Portugal 100.00
90.00
Marketing, management and exploitation Dec-06 -
Through Mota-Engil Real Estate Portugal (Felgueiras) 90.00 of technological and industrial business
parks
Sikorki Project Development Sp. z o.o. ("Sikorki")
Through Mota-Engil Real Estate, SGPS
Poland
(Krakow)
100.00
100.00
Real Estate development Oct-12 -
Soltysowska Project Development Sp. z o.o. ("Soltysowska")
Through Mota-Engil Real Estate, SGPS
Poland
(Krakow)
100.00
100.00
Real Estate development Nov-05 -
Takargo - Transportes de Mercadorias, S.A. ("Takargo") Portugal 100.00 Railway transportation of goods Oct-06 -
Through Mota-Engil Ambiente e Serviços (Linda-a-Velha) 100.00
Turalgo-Sociedade de Promoção Imobiliária e Turística do Algarve, S.A. ("Turalgo") Potugal 51.00 Real Estate development May-92 -
Through Mota-Engil Real Estate Portugal
Wilanow Project Development SP. z.o.o. ("Wilanow")
(Oeiras)
Poland
51.00
100.00
Real Estate development Jun-07 -
Through Mota-Engil Real Estate, SGPS (Krakow) 100.00
Designation Head Office Effective holding
percentage
Activity Incorporation date Acquisition date
Europe
Mota-Engil Europe, S.A. ("Mota-Engil Europe") Portugal 100.00 Management of financial holdings Jun-10 -
Through Mota-Engil SGPS
Engineering and Construction
(Linda-a-Velha) 100.00
Áreagolfe - Gestão, Construção e Manutenção de Campos de Golfe, S.A. ("Áreagolfe") Portugal 77.78 Golf courses construction, management - Jul-07
Through Vibeiras (Torres Novas) 77.78 and maintenance
Balice Project Development Sp. z o.o. ("Balice") Poland 100.00 Real Estate development Oct-12 -
Through Mota-Engil Real Estate Management (Krakow) 100.00
Belém Grid - Promoção imobiliária e de Animação Turística, S.A. ("Belém Grid") Portugal
(Porto)
100.00 Real Estate development and tourist
entertainment
Oct-19 -
Through Mota-Engil Engenharia e Construção
Bukowinska Project Development ("Bukowinska Project Development")
Poland 100.00
100.00
Mar-15 -
Through Mota-Engil Central Europe Polónia (Krakow) 100.00 Design and construction of social housing
Carlos Augusto Pinto dos Santos & Filhos S.A. ("Capsfil")
Through Mota-Engil Engenharia e Construção
Portugal
(Vila Flor)
100.00
100.00
Extraction of gravel, sand and crushed
stone
Mar-77 Oct-09
Diace - Construtoras das Estradas do Douro Interior A.C.E. ("Diace ACE MEEC") Portugal 53.10 Realization of construction works and Nov-08 Dec-15
Through Mota–Engil Engenharia e Construção (Porto) 53.10 services and providing design
Dzieci Warszawy Project Development Sp. z.o.o. ("Dzieci")
Through Mota-Engil Real Estate Management
Poland
(Krakow)
100.00
100.00
Real Estate development Nov-15 -
Ekosrodowisko z.o.o. In Liquidation ("Ekosrodowisko") Poland 61.50 Urban solid waste Feb-05 Dec-05
Through SUMA
Glace - Construtoras das Auto-estradas da Grande Lisboa A.C.E. ("Glace ACE MEEC")
(Bytom)
Portugal
61.50
52.87
Realization of construction works and Dec-06 Dec-15
Through Mota–Engil Engenharia e Construção
Glan Agua, Ltd ("Glanagua")
(Porto)
Ireland
52.87
70.00
services and providing design
Treatement of waste, exploitation and
Jan-08 -
Through MEIS (Ballinasloe) 70.00 management of water sytems
Glan Agua (UK), Ltd ("Glan Agua UK")
Through MEIS
United Kingdom
(St Albans)
70.00
70.00
Treatement of waste, exploitation and
management of water sytems
Jul-15 -
Grodkowska Project Development Sp. z.o.o ("Grodkowska") Poland
(Krakow)
100.00 Design and construction of social housing Mar-14 -
Through Mota-Engil Real Estate Management
Grota-Roweckiego Project Development Sp. z o.o. ("Grota")
Poland 100.00
100.00
Real Estate development Oct-12 -
Through Mota-Engil Real Estate Management
Hygeia – Edifícios Hospitalares, SGPS, S.A. ("Hygeia")
(Krakow) 100.00
99.00
Dec-18 -
Through Mota–Engil Engenharia e Construção Portugal 98.99 Management of financial holdings
Through Manvia, Mota-Engil Capital and Mota-Engil Europe (Lisboa) 0.01
Immo Park Gdańsk, Sp. z.o.o. ("Immo Park Gdańsk") Poland 100.00 Design, construction, management and Mar-13 -
Through Mota-Engil Central Europe Polónia (Krakow) 100.00 exploitation of parking
Immo Park Warszawa, Sp. z.o.o. ("Immo Park Warszawa") Poland 100.00 Design, construction, management and
exploitation of parking
Oct-12 -
Through Mota-Engil Central Europe Polónia (Krakow) 100.00
Immo Park, Sp. z.o.o. ("Immo Park")
Through Mota-Engil Central Europe Polónia
Poland
(Krakow)
100.00
100.00
Design, construction, management and
exploitation of parking
Jan-08 Mar-11
Kilinskiego Project Development Sp. z.o.o. ("Kilinskiego") Poland 100.00 Real Estate development Aug-07 -
Through Mota-Engil Real Estate Management
Kilinskiego Property Investment Sp. z.o.o. ("Kilinskiego PI")
(Krakow)
Poland
100.00
100.00
Sep-11 -
Through Kilinskiego Project Development Sp. z.o.o.
Through Mota-Engil Real Estate, SGPS
(Krakow) 99.99
0.01
Real Estate development
Listopada Project Development ("Listopada Project Development") Poland 100.00 Real Estate development Nov-15 -
Through Mota-Engil Real Estate Management (Krakow) 100.00
Lusitânia - Construtoras das Auto-estradas das Beiras Litoral e Alta A.C.E. ("Lusitânia ACE MEEC") Portugal
(Porto)
83.95 Realization of construction works and
services and providing design
Apr-01 Dec-15
Through Mota–Engil Engenharia e Construção
MES, Mota-Engil Srodowisko, Sp. z.o.o. ("MES")
Poland 83.95
61.50
Dec-05 -
Through Suma
Mota-Engil International Construction (UK) Ltd ("Mota-Engil UK")
(Krakow)
United Kingdom
61.50
60.00
Urban solid waste Jul-15 -
Through Mota-Engil Engenharia e Construção (St Albans) 60.00 Construction works
Mota-Engil Ireland Construction Limited ("Mota-Engil Irlanda")
Through Mota-Engil Engenharia e Construção
Ireland
(Dublin)
60.00
60.00
Construction works Oct-07 -
Mota-Engil Engenharia e Construção, S.A. ("Mota-Engil Engenharia e Construção") Portugal 100.00 Construction works, and purchase and Dec-00 -
Through Mota-Engil Europe (Amarante) 100.00 sale of real estate
Mota-Engil Central Europe, S.A. ("ME Central Europe Polónia")
Through Mota-Engil Central Europe Management
Poland
(Krakow)
100.00
100.00
Construction works Feb-53 Mar-99
Mota-Engil Central Europe Ceska Republika, AS ("Mota-Engil Central Europe República Checa") Czech Republic 100.00 Construction and public works Jan-97 -
Through Mota-Engil Europe (Prague) 100.00
Mota-Engil Central Europe Management, SGPS, SA ("Mota-Engil Central Europe Management") Portugal 100.00 Management of financial holdings Aug-17 -
Through Mota-Engil Europe (Porto)
Poland
100.00
Mota-Engil Central Europe PPP Sp. z.o.o ("ME Central Europe PPP") 100.00 Design, construction, management and
exploitation of parking
Mar-12 -
Through Mota-Engil Central Europe Polónia (Krakow)
Poland
100.00
Mota-Engil Central Europe PPP 2 Sp. z.o.o ("ME Central Europe PPP 2")
Through Mota-Engil Central Europe Polónia
(Krakow) 100.00
100.00
Design, construction, management and
exploitation of parking
Dec-13 -
Mota-Engil Central Europe PPP Road Sp. z.o.o ("ME Central Europe PPP Road") Poland 100.00 Design, construction, management and - Nov-13
Through Mota-Engil Central Europe Polónia (Krakow) 100.00 exploitation of parking
Mota-Engil Central Europe PPP 3 Sp. Z.o.o ("ME Central Europe PPP 3") Poland 100.00 Design, construction, management and Apr-14 -
Through Mota-Engil Central Europe Polónia (Krakow) 100.00 exploitation of parking
Mota-Engil Ireland Services Ltd. ("MEIS")
Through Mota-Engil Engenharia e Construção
Ireland
(Dublin)
70.00
70.00
Treatement of waste, exploitation and
management of water sytems
Jan-08 -
Mota-Engil Magyarország Beruházási És Épitoipari Zrt. ("Mota-Engil Magyarország") Hungary 100.00 Jan-96 -
Through Mota-Engil Europe (Budapest) 100.00 Construction and public works
Mota-Engil Railway Engineering, S.A. ("ME Railway Engineering")
Through Mota-Engil Engenharia e Construção
Portugal 100.00
96.15
Study, projects, execution of works and Jun-18 -
Through MEEC África (Porto) 1.92 representation of materials and
equipment related to railway works
Through Mota-Engil Latin America BV 1.92
Mota-Engil Real Estate Management, sp. z.o.o. ("Mota-Engil Real Estate Management") Poland
(Krakow)
100.00 Real Estate development Jun-05 -
Through Mota-Engil Central Europe Polónia
Mota-Engil Vermelo Sp. z.o.o ("ME Vermelo")
Poland 100.00
100.00
Real Estate development Mar-12 -
Through Mota-Engil Real Estate Management (Krakow) 100.00
Norace - Construtoras das Auto-estradas do Norte A.C.E. ("Norace ACE MEEC") Portugal
(Porto)
82.87 Realization of construction works and
services and providing design
Jun-99 Dec-15
Through Mota–Engil Engenharia e Construção
Oriental Hub, S.A. ("Oriental Hub")
Portugal 82.87
100.00
Design, construction, rehabilitation and Nov-18 -
Through Mota–Engil Engenharia e Construção (Porto) 100.00 operation of the Old Industrial
Slaughterhouse of Porto
Pinhal - Construtoras das Auto-estradas do Pinhal Interior A.C.E. ("Pinhal ACE MEEC") Portugal 53.52 Realization of construction works and Apr-10 Dec-15
Through Mota–Engil Engenharia e Construção (Porto) 53.52 services and providing design
Designation Head Office Effective holding
percentage
Activity Incorporation date Acquisition date
Project Development 1 Sp. Z.o.o. ("Project Development 1") Poland 100.00 Nov-15 -
Through Mota-Engil Real Estate Management (Krakow) 100.00 Real Estate development
Project Development 2 Sp. Z.o.o. ("Project Development 2")
Through Mota-Engil Real Estate Management
Poland
(Krakow)
100.00
100.00
Real Estate development Nov-15 -
Project Development 3 Sp. Z.o.o. ("Project Development 3") Poland 100.00 Feb-20 -
Through Mota-Engil Real Estate Management (Krakow) 100.00 Real Estate development
Project Development 4 Sp. Z.o.o. ("Project Development 4")
Through Mota-Engil Real Estate Management
Poland
(Krakow)
100.00
100.00
Real Estate development Feb-20 -
Project Development 5 Sp. Z.o.o. ("Project Development 5") Poland 100.00 Real Estate development Feb-20 -
Through Mota-Engil Real Estate Management
Project Development 6 Sp. Z.o.o. ("Project Development 6")
(Krakow)
Poland
100.00
100.00
Feb-20 -
Through Mota-Engil Real Estate Management (Krakow) 100.00 Real Estate development
Portuscale - Construtoras das Auto-estradas do Grande Porto A.C.E. ("Portuscale ACE MEEC") Portugal 83.95 Realization of construction works and Jul-02 Dec-15
Through Mota–Engil Engenharia e Construção (Porto) 83.95 services and providing design
Senatorska Project Development Sp. z.o.o. ("Senatorska") Poland 100.00 Real Estate development Nov-15 -
Through Mota-Engil Real Estate Management
Streamgrest Limited ("Streamgrest")
(Krakow)
Ireland
100.00
65.00
Feb-18 -
Through Mota-Engil Irlanda
Through GlanAgua
(Galway) 30.00
35.00
Comercial
VBT - Projectos e Obras de Arquitectura Paisagística, Lda ("VBT") Angola 48.89 Sep-08 -
Through Vibeiras
Through Mota-Engil Ambiente e Serviços
(Luanda) 38.89
10.00
Landscape gardening
Vianor - Construtoras das Auto-estradas da Costa de Prata A.C.E. ("Vianor ACE MEEC") Portugal
(Porto)
83.95 Realization of construction works and Apr-00 Dec-15
Through Mota–Engil Engenharia e Construção 83.95 services and providing design
Vibeiras – Sociedade Comercial de Plantas, S.A. ("Vibeiras")
Through Mota-Engil Engenharia e Construção
Portugal
(Torres Novas)
77.78
77.78
Landscape gardening Jul-88 Oct-98
Environment and Services
AGIR - Ambiente e Gestão Integrada de Resíduos, Lda. ("Agir")
Cabo Verde 80.75 Dec-07 -
Through Mota-Engil Ambiente e Serviços (Praia) 50.00 Treatment and recovery of urban solid
waste
Through Suma
Algar - Valorização e Tratamento de Resíduos Sólidos, S.A. ("Algar")
Portugal 30.75
33.15
Treatment and disposal of non-hazardous - Jun-15
Through EGF (Loulé) 33.15 waste
Amarsul- Valorização e Tratamento de Resíduos Sólidos, S.A. ("Amarsul")
Through EGF
Portugal
(Setúbal)
30.19
30.19
Treatment and disposal of non-hazardous
waste
- Jun-15
Citrave - Centro Integrado de Tratamento de Resíduos de Aveiro, S.A. ("Citrave") Portugal 61.50 Treatment and disposal of non-hazardous Dec-87 Oct-06
Through Suma
Through Novaflex
(Lisboa) 61.41
0.05
waste
Through Suma Esposende
Correia & Correia, Lda. ("Correia & Correia")
Portugal 0.05
48.18
Sep-88 Feb-00
Through Enviroil (Sertã) 48.18 Trade and collection of used oils
Enviroil SGPS, Lda. ("Enviroil")
Through Suma
Portugal
(Torres Novas)
48.18
48.18
Management of financial holdings Nov-97 -
Enviroil II – Reciclagem de Óleos Usados, Lda. ("Enviroil II") Portugal 45.77 Oil recycling, electricity production and Apr-11 -
Through Enviroil
Through SRI
(Torres Novas) 43.37
2.41
bulk trade of fuels and related products
Ersuc - Resíduos Sólidos do Centro, S.A. ("Ersuc") Portugal 34.14 Treatment and disposal of non-hazardous - Jun-15
Through EGF
Through Suma
(Coimbra) 30.46
3.68
waste
Empresa Geral de Fomento, S.A. ("EGF")
Through Suma Tratamento
Portugal
(Lisboa)
59.19
59.19
Treatment and disposal of non-hazardous
waste
- Jun-15
Eco Vision LLC ("Eco Vision") Oman 31.37 Treatment and disposal of non-hazardous Jul-15 -
Through Suma
InvestAmbiente - Recolha de Resíduos e Gestão de Sistemas de Saneamento Básico, S.A.
(Muscat)
Portugal
31.37 waste
("Investambiente") (Lisboa) 31.98 Collection of non-hazardous waste Feb-00 Dec-07
Through Novaflex
Mota-Engil, Ambiente e Serviços, SGPS, S.A. ("Mota-Engil Ambiente e Serviços")
Portugal 31.98
100.00
Jun-97 -
Through Mota-Engil Europe (Porto) 100.00 Management of financial holdings
Nova Beira - Gestão de Resíduos, S.A. ("Nova Beira") Portugal 41.72 Treatment and disposal of non-hazardous - Dec-07
Through Novaflex
Through Investambiente
(Lisboa) 31.17
10.55
waste
Novaflex - Técnicas do Ambiente, S.A. ("Novaflex") Portugal 61.50 Collection of other non-hazardous waste - Dec-07
Through Suma
Real Verde - Técnicas de Ambiente, S.A. ("Real Verde")
(Lisboa)
Portugal
61.50
61.50
Treatment and disposal of non-hazardous Dec-07 -
Through Novaflex
Resiges - Gestão de Resíduos Hospitalares, Lda. ("Resiges")
(Vila Real)
Portugal
61.50
61.50
waste May-98 Dec-07
Through Novaflex (Setúbal) 61.50 Collection of hazardous waste
Resiestrela - Valorização e Tratamento de Resíduos Sólidos, S.A. ("Resiestrela")
Through EGF
Portugal
(Castelo Branco)
37.26
37.26
Treatment and disposal of non-hazardous
waste
- Jun-15
Resilei – Tratamento de Resíduos Industriais, S.A. ("Resilei") Portugal 30.75 Treatment and disposal of non-hazardous - Jun-03
Through Suma
Resinorte - Valorização e Tratamento de Resíduos Sólidos, S.A. ("Resinorte")
(Leiria)
Portugal
30.75
44.46
waste
Treatment and disposal of non-hazardous
- Jun-15
Through EGF (Braga) 44.46 waste
Resulima - Valorização e Tratamento de Resíduos Sólidos, S.A. ("Resulima")
Through EGF
Portugal
(Viana do Castelo)
30.19
30.19
Treatment and disposal of non-hazardous
waste
- Jun-15
Rima – Resíduos Industriais e Meio Ambiente, S.A. ("Rima") Portugal 59.12 Treatment of industrial waste Aug-01 -
Through Suma
SIGA - Sistema Integrado de Gestão Ambiental, S.A. ("Siga")
(Lourosa)
Portugal
59.12
43.05
Treatment and disposal of non-hazardous Oct-08 -
Through Suma
SIGAMB - Sistemas de Gestão Ambiental, Lda. (Angola) ("SIGAMB")
(Ponta Delgada)
Angola
43.05
61.44
waste
Technical studies, consultancy and
Feb-14 -
Through Novaflex (Luanda) 61.44 formation in the environmental area Jul-08 -
SRI - Gestão de Resíduos, Lda ("SRI")
Through Correia & Correia
Portugal
(Sertã)
48.18
48.18
Collection of hazardous waste
Suldouro - Valorização e Tratamento de Resíduos Sólidos, S.A. ("Suldouro")
Through EGF
Portugal
(Vila Nova de Gaia)
35.52
35.52
Treatment and disposal of non-hazardous
waste
- Jun-15
Suma (Douro) - Serviços Urbanos e Meio Ambiente, Lda. ("Suma Douro") Portugal 61.50 Treatment and recovery of urban solid Jul-00 -
Through Suma (Murça) 61.50 waste
Suma (Esposende) - Serviços Urbanos e Meio Ambiente, Lda. ("Suma Esposende") Portugal
(Esposende)
61.50 Treatment and recovery of urban solid
waste
Dec-99 -
Through Suma
Suma (Macau), Lda. ("Suma Macau")
China 61.50
60.89
Treatment and recovery of urban solid - Dec-13
Through Suma (Macau) 60.89 waste
Suma (Matosinhos) - Serviços Urbanos e Meio Ambiente, S.A. ("Sumalab")
Through Suma
Portugal
(Matosinhos)
61.50
61.50
Treatment and recovery of urban solid
waste
Dec-00 -
Suma (Porto) - Serviços Urbanos e Meio Ambiente, S.A. ("Suma Porto") Portugal 61.50 Treatment and recovery of urban solid Nov-08 -
Through Suma
Suma Tratamento, S.A. ("Suma Tratamento")
(Porto) 61.50
59.20
waste
Through Suma
Through Suma Esposende
Portugal 49.19
0.01
Management of financial holdings Oct-14 -
Through Novaflex (Lisboa) 0.01
Through Mota-Engil Ambiente e Serviços 10.00
Designation Head Office Effective holding
percentage
Activity Incorporation date Acquisition date
Suma – Serviços Urbanos e Meio Ambiente, S.A. ("Suma") Portugal 61.50 Treatment and recovery of urban solid Jun-94 -
Through Mota-Engil Ambiente e Serviços
Triu - Técnicas de Resíduos Industriais e Urbanos, S.A. ("Triu")
(Lisboa)
Portugal
61.50
48.18
waste
Collection of non-hazardous waste
Apr-91 Sep-08
Through Enviroil
Triaza - Treatment of industrial waste da Azambuja, S.A. ("Triaza")
(Loures)
Portugal
48.18
61.50
Treatment and recovery of urban solid Nov-15 Sep-08
Through Suma (Azambuja) 61.50 waste
Valnor - Valorização e Tratamento de Resíduos Sólidos, S.A. ("Valnor")
Through EGF
Portugal
(Portalegre)
31.57
31.57
Treatment and disposal of non-hazardous
waste
- Jun-15
Valorlis - Valorização e Tratamento de Resíduos Sólidos, S.A. ("Valorlis") Portugal 30.19 Treatment and disposal of non-hazardous - Jun-15
Through EGF
Valorminho - Valorização e Tratamento de Resíduos Sólidos, S.A. ("Valorminho")
(Leiria)
Portugal
30.19
30.19
waste
Treatment and disposal of non-hazardous
- Jun-15
Through EGF (Valença) 30.19 waste
Valorsul - Valorização e Tratamento de Resíduos Sólidos das Regiões de Lisboa e do Oeste, S.A.
("Valorsul")
Through EGF
Portugal
(Loures)
31.33
31.33
Treatment and disposal of non-hazardous
waste
- Jun-15
Africa
Akwangola, S.A. ("Akwangola")
Through Mota-Engil Angola
Angola
(Luanda)
51.00
51.00
Exploitation of water market Dec-10
Cecot - Centro de Estudos e Consultas Técnicas, Lda. ("Cecot")
Through MEEC África
Mozambique
(Maputo)
100.00
100.00
Construction works' projects and
inspection
Sep-98 Apr-11
Clean Eburnie SARL ("Clean Eburnie") Ivory Coast 60.00 Technical studies, conception, finance, Dec-17 -
Through MEEC África (Abidjan) 60.00 constructons and exploration of landfills
Cosamo (Proprietary) Limited ("Cosamo") South Africa 100.00 Comercial Dec-76 -
Through Mota Internacional
Eco Eburnie, SA ("Eco Eburnie")
(Joanesburgo)
Ivory Coast
100.00
100.00
Treatment and recovery of urban solid Oct-17 -
Through MEEC África (Abidjan) 100.00 waste and cleaning and maintenance of
Ecolife, S.A. ("Ecolife") Mozambique 58.45 streets
Treatment and recovery of urban solid
Through Mota-Internacional
Through Suma
(Maputo) 40.00
18.45
waste Dec-13 -
Estradas do Zambeze, S.A. ("Estradas do Zambeze") Mozambique 95.00 Road concession Nov-09
Through MEEC África
Fatra - Fábrica de Trefilaria de Angola, S.A. ("Fatra")
(Maputo)
Angola
95.00
70.00
Manufacturing of iron-derived products Jun-14 Nov-10
Through Mota Internacional
Fibreglass Sundlete (Moçambique), Lda. ("Fibreglass")
(Luanda)
Mozambique
70.00
100.00
Aug-62 Mar-99
Through ME Maurícias (Maputo) 100.00 Comercial
Indimo, Lda. ("Indimo")
Through Cecot
Mozambique 100.00
50.00
Real Estate development - Oct-04
Through MEEC África
Liwonde Logistics Platform Limited ("Liwonde")
(Maputo)
Malawi
50.00 Jun-15 -
Through ME Investments Malawi (Lilongwe) 99.49
51.00
Management of financial holdings
Through MEEC Africa – Malawi branch
Malawi Ports Company Limited ("Malawi Ports Company")
Malawi 49.00
100.00
Nov-10 -
Through MEEC África (Lilongwe) 88.00 Shipping
Through ME Malawi
Malawi Shipping Company Limited ("Malawi Shipping Company")
Malawi 12.00
100.00
Nov-10 -
Through ME Malawi (Lilongwe) 100.00 Shipping
Martinox, SA ("Martinox")
Through Mota-Engil Angola
Angola
(Benguela)
51.00
51.00
Stainless steel works Feb-08 Dec-11
Mota & Companhia Maurícias, Lda. ("ME Maurícias")
Through MEEC África
Maurícias
(Ebene)
100.00
100.00
Construction works May-10 -
Mota-Engil África, SGPS, S.A. ("Mota-Engil África") Portugal 100.00 Management of financial holdings May-10 -
Through MEEC África
Mota-Engil África Global Technical Services B.V. ("ME África GTS BV")
(Porto)
Netherlands
100.00
100.00
May-14 -
Through MEEC África (Amsterdam) 100.00 Management of financial holdings
Mota-Engil Africa (PTY) Limited ("ME Africa PTY")
Through Mota-Engil África N.V.
South Africa
(Joanesburgo)
100.00
95.00
Management of financial holdings Nov-15 -
Through MEEC África
Mota-Engil Angola, S.A. ("Mota-Engil Angola")
Angola 5.00
51.00
Public works and /or construction works May-10 -
Through Mota Internacional (Luanda) 51.00 contractor
Mota-Engil Cameroon S.A.R.L. ("Mota-Engil Cameroon")
Through MEEC África
Cameroon
(Douala)
100.00
100.00
Public works and /or construction works
contractor
Jan-18 -
Mota-Engil Côte D´Ivoire, SARL ("Mota-Engil Costa de Marfim") Ivory Coast 100.00 Public works and /or construction works Apr-18 -
Through MEEC África
Mota-Engil Guinée Conakry, SARL ("Mota-Engil Guiné")
(Abidjan)
Guinea Conakry
100.00
100.00
contractor
Public works and /or construction works
Aug-17 -
Through MEEC África
Mota-Engil Guinee Mandiana, SARL ("Mota-Engil Mandiana")
(Conakry)
Guinea Conakry
100.00
100.00
contractor
Public works and /or construction works
Through MEEC África (Conakry) 100.00 contractor Feb-20 -
Mota-Engil Engenharia e Construção África, S.A. ("MEEC África")
Through ME Africa PTY
Portugal
(Porto)
100.00
0.00
Construction works Aug-12 -
Through Mota-Engil SGPS
Mota-Engil Engenharia e Construção África PTY ("Mota-Engil Engenharia e Construção África PTY")
South Africa 100.00
100.00
Through MEEC África (Joanesburgo) 100.00 Construction works fev/17
Mota-Engil Investments (Malawi) Limited ("ME Investments Malawi")
Through Mota-Engil Africa
Malawi
(Lilongwe)
99.00
99.00
Public works and /or construction works
contractor
Mar-11 -
Mota-Engil (Malawi) Limited ("ME Malawi")
Through MEEC África
Malawi
(Lilongwe)
100.00
100.00
Public works and /or construction works
contractor
Jul-11 -
Mota-Engil Moçambique, Lda. ("ME Moçambique") Mozambique 100.00 Jul-94 -
Through MEEC África
Through Indimo
(Maputo) 50.00
50.00
Real Estate development
Mota-Engil S. Tomé e Príncipe, Lda. ("Mota-Engil S. Tomé") S. Tomé e Príncipe 100.00 Public works and /or construction works Dec-04 -
Through Mota Internacional
Through MEEC África
(S. Tomé) 95.00
5.00
contractor
Mota Internacional – Comércio e Consultadoria Económica, Lda. ("Mota Internacional") Portugal 100.00 Trade and management of international Sep-97 Dec-98
Through Mota-Engil África
Novicer-Cerâmicas de Angola,(SU) Limitada. ("Novicer")
(Funchal)
Angola
100.00
51.00
holdings
Manufacturing and trade in clay goods
Sep-07 -
Through Mota-Engil Angola
Operadora Estradas do Zambeze, S.A. ("Operadora Estradas do Zambeze")
(Luanda)
Mozambique
51.00
95.00
Nov-09 Apr-20
Through Estradas do Zambêze (Maputo) 95.00 Road operation and maintenance
Penta - Engenharia e Construção, Lda. ("Penta")
Through MEEC África
Cabo Verde 100.00
96.00
Public works and /or construction works Apr-07 -
Through Mota Internacional
Prefal – Préfabricados de Luanda, Lda. ("Prefal")
(Praia)
Angola
4.00
45.90
contractor Dec-93 -
Through Mota-Engil Angola (Luanda) 45.90 Manufacturing of prestressed goods
Rentaco Angola - Equipamentos e Transportes, (SU) Limitada. ("Rentaco Angola") Angola 51.00 Rental of construction equipment Jan-08 -
Through Mota-Engil Angola
Sonauta - Sociedade de Navegação, Lda. ("Sonauta")
(Luanda)
Angola
51.00
100.00
Sea transportation, excluding coastal Nov-94 -
Through Mota Internacional (Luanda) 100.00 transport
Tracevia Angola - Sinalização, Segurança e Gestão de Tráfego, Lda. ("Tracevia Angola")
Through Mota-Engil Angola
Angola
(Luanda)
51.00
51.00
Road signs - Sep-07
Vista Energy Environment & Services, S.A. ("Vista SA") Angola 51.00 Management of financial holdings Jul-08 Dec-13
Through Mota-Engil Angola
Vista Multi Services, Lda. ("Vista Multi Services")
(Luanda)
Angola
51.00
51.00
May-09 Dec-13
Through Vista SA
Through Mota-Engil Angola
(Luanda) 40.80
10.20
Urban services
Vista Waste Management, Lda. ("Vista Waste")
Through Mota-Engil Angola
Angola 56.15
5.10
Dec-09 Dec-13
Through Vista SA (Luanda) 20.91 Collection of waste
Through Suma 30.14
Designation Head Office Effective holding
percentage
Activity Incorporation date Acquisition date
Latin America
Administradora Desarrollo MEM ("Administradora Desarrollo MEM")
51.49 Feb-18 -
Through Mota-Engil México Mexico
(Mexico City)
50.49 Business Administration
Through Mota-Engil América Latina SAPI 1.00
Ambiente y servicios Peru S.A. ("Ambiente y Servicios Peru")
Through Mota-Engil Engenharia e Construção
Peru 100.00
0.00
Exploitation of terminals - -
Through Mota-Engil Peru (Lima) 100.00
Consita Tratamento de resíduos, S.A. ("Consita") Brazil 54.93 Waste treatment - Dec-14
Through Geres Participações
Consórcio Los Castãnos ("Consórcio Los Castãnos")
(Belo Horizonte)
Peru
54.93
100.00
Dec-11 -
Through Mota- Engil Peru (Lima) 100.00 Real Estate Development
Consórcio EE Canoas ("Consórcio EE Canoas") Colombia 87.50 Sep-18 -
Through Empresa Construtora do Brasil (Bogotá) 21.88 Construction and public works
Through Mota-Engil Latam Colombia SAS
Consórcio Fanning ("Consórcio Fanning")
Peru 65.63
100.00
Dec-11 -
Through Mota- Engil Peru (Lima) 100.00 Real Estate Development
Consórcio GDL Viaduto, S.A.P.I de CV ("Consórcio GDL Viaduto") Mexico 21.88 Construction and public works Jun-14 -
Through Mota-Engil México
Consórcio ME-Contrato Colegios ("Consórcio ME Colegios")
(Mexico City) 21.88
100.00
May-16 -
Through Mota–Engil Engenharia e Construção - Colombia branch Colombia 75.00 Construction works
Through Mota- Engil Peru (Buenaventura) 25.00
Consórcio ME Carrera 43 ("Consorcio ME Carrera 43")
Through Mota-Engil Latam Colombia SAS
Colombia
(Bogotá)
100.00
100.00
Construction and public works Feb-18 -
Consórcio Mota-Engil Ojeda & Iju Paracas ("Consórcio ME Ojeda & Iju") Peru 100.00 Dec-11 -
Through Mota- Engil Peru (Lima) 100.00 Real Estate Development
Consórcio MEC Arroyo Carrera 65 ("Consórcio MEC Arroyo Carrera") Colombia 51.00 Sep-16 -
Through Mota–Engil Engenharia e Construção - Colombia branch
Through Mota-Engil Colômbia
(Bogotá) 0.01
50.99
Construction and public works
Consórcio MEC-Av.Malecon-UF1 ("Consórcio MEC-Av.Malecon-UF1") Colombia 51.00 May-16 -
Through Mota-Engil Engenharia e Construção - Colombia branch (Buenaventura) 0.01 Construction and public works
Through Mota-Engil Colômbia
Consórcio MEC-Av.Malecon-UF2 ("Consórcio MEC-Av.Malecon-UF2")
50.99
51.00
Nov-16 -
Through Mota–Engil Engenharia e Construção - Colombia branch Colombia
(Bogotá)
0.01 Construction and public works
Through Mota-Engil Colômbia 50.99
Consórcio Lamat Tramo 1 SAPI ("Consórcio Lamat Tramo")
Through Mota-Engil México
Mexico
(Mexico City)
29.58
29.58
Construction and public works Apr-20 -
Consórcio La Ponciana ("Consórcio La Ponciana") Peru 100.00 Dec-11 -
Through Mota- Engil Peru (Lima) 100.00 Real Estate Development
Consórcio Porta ("Consórcio Porta")
Through Mota- Engil Peru
Peru
(Lima)
100.00
100.00
Real Estate Development Dec-11 -
Consórcio Túnel Guadalajara, SAPI de CV ("Consórcio GDL Túnel") Mexico 21.88 Jul-14 -
Through Mota-Engil México (Mexico City) 21.88 Construction and public works
Constructora APP Tabasvera S.A. de C.V. ("Constructora APP Tabasvera") Mexico 38.25 Construction and public works Jul-16 -
Through Mota-Engil México (Mexico City) 38.25
Constructora Autopista Cardel-Poza Rica, S.A. de CV ("Constructora Cardel-Poza Rica") Mexico 40.80 Construction and public works - Nov/17
Through Mota-Engil México (Mexico City) 40.80
Constructora Tuxpan Tampico ("Construtora Tuxpan Tampico") Mexico 51.00 - Nov/17
Through Mota-Engil México
Through Mota-Engil América Latina SAPI
(Mexico City) 50.99
0.01
Construction and public works
Desarrolladora Cuatro Caminos ("Desarrolladora Cuatro Caminos") Mexico 49.99 Jun-19 -
Through ME Inmobiliaria SAPI (Mexico City) 49.99 Construction works
Desarrollos DOT México, SA de CV ("Desarrollos DOT México")
Through Mota-Engil México
Mexico
(Mexico City)
43.35
43.35
Construction and public works Apr-18 -
Desarrolladora Patzcuaro ("Desarrolladora Patzcuaro") Mexico 49.99 Construction works Aug-19 -
Through ME Inmobiliaria SAPI
Empresa Construtora Brasil, S.A. ("Empresa Construtora Brasil")
(Mexico City)
Brazil
49.99
50.00
Nov-12 -
Through Mota-Engil Brasil Participações, Ltda (Belo Horizonte) 50.00 Construction and public works
Empresa Construtora de Honduras ("Empresa Construtora Honduras") Honduras 35.70 Construction and public works Aug-18 Sep-18
Through Mota-Engil México
FCE Comercializadora Fenix SAPI de C.V. ("FCE Comercializadora Fenix")
(Villanueva) 35.70
28.88
Sep-16 -
Through Mota Engil America Latina SAPI Mexico 0.01 Energy trading
Through ME Energia operacional (Mexico City) 28.87
Fideicomiso Fairmont Costa Canuva ("Costa Canuva") Mexico 26.86 Real Estate and tourism Aug-19 -
Through Mota-Engil Turismo
Flame Investments, B.V. ("Flame Investments")
(Mexico City)
Netherlands
26.86
51.96
Mar-15 -
Through Mota-Engil Latin America BV (Amsterdam) 51.96 Management of financial holdings
FSE Suministradora Fenix SAPI de C.V.("FSE Suministradora Fenix") Mexico 28.88 Aug-16 -
Through Mota Engil America Latina SAPI
Through ME Energia operacional
(Mexico City) 0.01
28.87
Energy distribution
Generadora Fenix ("Generadora Fenix") Mexico 26.27 Energy production Sep-15 -
Through ME Energia operacional (Mexico City) 26.27
Geres Participações, SA ("Geres Participações")
Through Tracevia México
Brazil 54.93
28.58
Management of financial holdings Dec-14 -
Through Suma (Belo Horizonte) 26.35
Global Technical Services Latam BV ("GTS Latam BV") Netherlands 100.00 Management of financial holdings Jul-16 -
Through Mota-Engil Latin America BV (Amsterdam) 100.00
Luso Energy del Peru S.A. ("Luso Energy del Peru")
Through Mota-Engil Peru
Peru 100.00
99.98
Other business activities May-11 -
Through Mota-Engil Engenharia e Construção (Lima) 0.02
MEBR Construções, Consultoria e Participações, S.A. ("MEBR") Brazil 100.00 Mar-11 -
Through Mota-Engil Latin America BV (São Paulo) 57.69 Construction and public works
Through Mota-Engil Latam Peru
ME Energy Holding ("ME Energy Holding ")
42.31
28.87
Nov-15 -
Through Mota-Engil México Netherlands
(Amsterdam)
0.01 Management of financial holdings
Through Mota-Engil Energy BV
ME Energia Operacional ("ME Energia operacional")
28.86 Sep-15 -
Through Mota-Engil Energy Holding Mexico 28.87
28.87
Development and energy production
Through Mota-Engil América Latina SAPI de CV (Mexico City) 0.00 operation
ME Inmobiliaria SAPI ("ME Inmobiliaria SAPI")
Through Mota-Engil México
Mexico
(Mexico City)
50.49
50.49
Real Estate development Jul-18 -
Mota-Engil América Latina S.A.P.I. de C.V. ("Mota-Engil América Latina") Mexico 100.00 Nov-13 May-14
Through Mota-Engil SGPS (Mexico City) 0.02 Management of financial holdings
Through Mota-Engil Latin America BV
Mota-Engil Argentina, SAU ("Mota-Engil Argentina")
Argentina 99.98
100.00
Apr-18 -
Through Mota-Engil Latin America BV (Buenos Aires) 100.00 Construction and public works
Mota-Engil Aruba Holding Company VBA ("Mota-Engil Aruba Holding") Aruba 100.00 Management of financial holdings Dec-15 -
Through Mota-Engil Latin America BV
Mota-Engil Chile S.A. ("Mota-Engil Chile")
(Oranjestad) 100.00
100.00
Feb-13 -
Through Mota- Engil Latam Portugal Chile
(Santiago)
99.00 Construction and public works
Through Mota- Engil Engenharia e Construção 1.00
Designation Head Office Effective holding
percentage
Activity Incorporation date Acquisition date
Mota-Engil Colômbia, S.A.S ("Mota-Engil Colômbia")
Through Mota-Engil Engenharia e Construção
Through Mota-Engil Latam Peru
Colombia
(Bogotá)
100.00
99.00
1.00
Construction and public works Feb-11 -
Mota-Engil Dominicana S.A.S. ("Mota-Engil Dominicana")
Through Mota-Engil Latin America BV
Dominican Rep.
(Santo Domingo)
60.00
60.00
Construction and public works Nov-14 -
Mota-Engil Energy B.V. ("Mota-Engil Energy BV")
Through Flame Investments
Netherlands
(Amsterdam)
28.86
28.86
Finance and consulting Sep-15 -
Mota-Engil Honduras ("Mota-Engil Honduras")
Through Mota-Engil México
Through Mota-Engil Latin America BV
Honduras
(Tegucigalpa)
51.20
50.80
0.40
Construction and provision of civil
engineering and architecture services
Jun-18 -
Mota-Engil Latam Col, S.A.S ("Mota-Engil Latam Col")
Through Mota-Engil Colômbia
Through Mota-Engil Engenharia e Construção
Colombia
(Bogotá)
100.00
99.00
1.00
Construction and public works Feb-11 -
Mota-Engil Latam Colombia SAS ("ME Latam Colombia SAS")
Through Mota-Engil Engenharia e Construção
Through Mota-Engil Latin America BV
Colombia
(Bogotá)
100.00
49.00
51.00
Construction and public works Dec-16 -
Mota-Engil Latam Portugal, S.A. ("Mota-Engil Latam Portugal")
Through Mota-Engil SGPS
Portugal
(Porto)
100.00
100.00
Management of financial holdings Jul-15 -
Mota-Engil Latam Peru ("Mota-Engil Latam Peru")
Through Mota-Engil Latin America BV
Through Mota-Engil Engenharia e Construção
Peru
(Lima)
100.00
99.90
0.10
Management of financial holdings Dec-15 -
Mota-Engil Latin America BV ("ME Latin America")
Through Mota-Engil Latam Portugal
Netherlands
(Amsterdam)
100.00
100.00
Management of financial holdings Nov-15 -
Mota-Engil México, S.A. de C.V. ("Mota-Engil México")
Through Mota-Engil Latin America BV
Through Mota-Engil América Latina SAPI
Through Mota Internacional
Mexico
(Mexico City)
51.00
19.18
31.82
0.00
Construction and public works Jan-10 -
Mota-Engil O&M México, SAPI de CV ("Mota-Engil O&M México SAPI")
Through Mota-Engil México
Mexico
(Mexico City)
51.00
51.00
Construction and public works Sep-17 -
Mota-Engil Peru, S.A. ("Mota-Engil Peru")
Through Mota-Engil Latin America BV
Through Mota-Engil Engenharia e Construção
Peru
(Lima)
100.00
99.90
0.10
Construction and public works Sep-86 -
Mota-Engil Servicios Compartidos ("Mota-Engil Servicios Compartidos")
Through Mota-Engil México
Through Mota-Engil América Latina SAPI
Mexico
(Mexico City)
51.00
51.00
0.00
Administrative Services Sep-19 -
Mota-Engil Tourism, B.V. ("Mota-Engil Tourism BV")
Through Mota-Engil Latin America BV
Through Flame Investments
Netherlands
(Amsterdam)
43.13
9.17
33.96
Management of financial holdings Sep-15 -
Mota-Engil Turismo, S.A. de CV ("Mota-Engil Turismo operacional")
Through Mota-Engil América Latina SAPI
Through Mota-Engil Turismo Holding
Mexico
(Mexico City)
43.13
0.00
43.13
Real Estate and Tourism Feb-15 -
Mota-Engil Turismo Holding, S.A.P.I. de C.V. ("Mota-Engil Turismo Holding")
Through Mota-Engil México
Through Mota-Engil Tourism BV
Mexico
(Mexico City)
43.13
0.01
43.13
Management of financial holdings Jun-15 -
Operadora APP Coatzacoalcos Villahermosa SAPI de C.V. ("Operadora APP Coatzacoalcos
Villahermosa")
Through Mota-Engil México
Mexico
(Mexico City)
38.25
38.25
Road construction and maintenance Apr-17 -
Promotora Inmobiliaria Santa Clara, S.A. ("Santa Clara")
Through Mota- Engil Peru
Peru
(Lima)
100.00
100.00
Real Estate Development services May-12 -
Puente Boca del Rio S.A. De C.V. ("Puente Boca del Rio")
Through Mota-Engil México
Through Mota–Engil Engenharia e Construção
Mexico
(Mexico City)
58.35
43.35
15.00
Construction and public works May-16 -
Red Rainbow Company N.V. ("Red Rainbow")
Through Mota-Engil Aruba Holding Company VBA
Aruba
(Oranjestad)
100.00
100.00
Construction and public works Jan-12 Apr-16
Tarucani Generating Company, S.A. ("Tarucani")
Through Mota- Engil Energia Peru
Through Mota- Engil Peru
Peru
(Lima)
100.00
99.98
0.02
Generation and distribution of electric
energy
Apr-00 -
Tracevia do Brasil -Sistemas de Telemática Rodoviaria Ltda. ("Tracevia Brasil")
Through MEBR
Brazil
(São Paulo)
50.00
50.00
Design, installation, development and
maintenance of ITS
Mar-11 -
Tracevia Mexico S.A. de C.V. ("Tracevia Mexico")
Through Tracevia Brasil
Mexico
(Mexico City)
50.00
50.00
Design, installation, development and
maintenance of ITS
Jun-17 -

COMPANIES / ENTITIES INCLUDED IN THE CONSOLIDATION BY THE EQUITY METHOD

and effective holding percentage as at June 30, 2020, were as follows: The companies / entities included in the attached consolidated financial statements by the equity method, their head offices

Designation Head Office Effective holding
percentage
Associated and jointly controlled companies
Parent Company of the Group and related activities
Haçor, Conc. Edifício do Hospital da Ilha Terceira, S.A. ("Haçor") Portugal 40.00
HL - Sociedade Gestora do Edifício, S.A. ("HL - Sociedade Gestora do Edifício") Portugal 50.00
Ibercargo Rail, S.A. ("Ibercargo") Spain 50.00
Manvia II Condutas, Lda. ("Manvia II Condutas") Portugal 45.00
Nortenha Angola, SGPS, S.A. ("Nortenha") Portugal 29.99
Riscos e Diâmetros Angola, SGPS, S.A. ("Riscos e Diâmetros Angola") Portugal 30.10
Sunviauto Internacional, SGPS, S.A. ("Sunviauto Internacional") Portugal 29.99
Europe - Environment and Services
Ambilital – Investimentos Ambientais no Alentejo, EIM. ("Ambilital") Portugal 30.14
Citrup – Centro Integrado de Resíduos, Lda. ("Citrup") Portugal 18.45
Ecolezíria - Empresa Intermunicipal para Tratamento de Resíduos Sólidos, E. I. M. ("Ecolezíria") Portugal 15.07
Africa
Automatriz, S.A. ("Automatriz") Angola 25.50
Busegera Airport Company Lda ("Busegera") Rwanda 75.00
Icer – Indústria de Cerâmica, Lda. ("Icer") Angola 25.50
Mebisa - Minerais e Britagens, S.A. ("Mebisa") Angola 15.30
SPRI - Sociedade Portuguesa de Realizações Industrais e Assistência Técnica, S.A. ("SPRI") Angola 40.00
Twine, Lda ("Twine") Mozambique 50.00
Vista Power, Lda. ("Vista Power") Angola 25.50
Latin America
Autopista Urbana Siervo de la Nacion, SAPI de CV ("Autopista Siervo de la Nacion") Mexico 17.49
APP Coatzacoalcos Villahermosa S.A.P.I. de C.V. ("APP Coatzacoalcos Villahermosa") Mexico 20.40
APP Tamaulipas, S.A.P.I. de C.V. ("APP Tamaulipas") Mexico 23.97
Concessionária Autopista Cardel-Poza Rica SA de CV ("Concessionária Autopista Cardel") Mexico 28.73
Concessionária Autopista Tuxpan-Tampico SA de CV ("Concessionária Autopista Tuxpan-Tampico") Mexico 25.85
Concessionaria Urbana Arco Oriente SA de CV ("Concessionaria Urbana Arco Oriente") Mexico 17.00
Consorcio ME Colombia ("Consorcio ME Colombia") Colombia 38.06
Consorcio Mepax Limitada ("Consorcio Mepax") Chile 49.90
Constructora Autopista Perote Xalapa, SA de CV ("Constructora Perote Xalapa") Mexico 25.50
Constructora Gran Canal SAPI de CV ("Construtora Gran Canal") Mexico 17.03
Constructora M&R, S.A. de C.V. ("Constructora M&R") Mexico 10.20
Constructora Tampico Ciudad Victoria, S.A.P.I. de C.V. ("Constructora Tampico Ciudad Victoria") Mexico 20.40
Eco Innovacion Ambiental SAPI de CV ("Eco Innovacion") Mexico 17.85
ECOSS Ambiental ("ECOSS Ambiental") Brazil 18.68
Fideicomiso el Capomo ("Fideicomiso el Capomo") Mexico 43.13
Gestion e Innovacion en Servicios Ambientales SA de CV ("GISA") Mexico 25.50
M&R de Occidente SAPI de CV ("Concessionária M&R") Mexico 20.00
Operadora Maritima Matamoros ("Operadora Marítima Matamoros") Mexico 25.50
Operadora Tampico Ciudad Victoria, S.A.P.I. de C.V. ("Operadora Tampico Ciudad Victoria") Mexico 24.23
Sistemas Electricos Metropolitanos ("Sistemas Electricos Metropolitanos") Mexico 25.50
Trans Tamaulipas ("Trans Tamaulipas") Mexico 17.00
Martifer Group Portugal 37.50

The "Agrupamentos Complementares de Empresas" (ACE) included in the attached consolidated financial statements by the equity method and their effective holding percentage as at June 30, 2020, were as follows:

Jointly controlled entities - "Agrupamentos Effective holding
Complementares de Empresas" percentage
In activity
Ecotejo-Serviços Manut. Tejo Atlântico; ACE 45.00%
Manvia - Lena Ambiente, ACE 50.00%
Manvia Efacec Exploração Técnica de Sistemas, ACE 50.00%
Mesofer ACE 36.50%
Metroligeiro - Construtora de Infra - Estruturas, ACE 53.20%
Mota-Engil/Acciona/Edivisa - Obras do Aproveitamento Hidroeléctrico de Alto Tâmega, ACE 42.50%
SOMAGUE/MOTA-ENGIL - COTA 500, ACE 36.42%
In warranty period
Barragem de Foz Tua ACE 33.34%
DIEXP - Expropriações do Douro Interior, ACE 37.08%
Engil e OPCA em ACE 50.00%
EXPI - Expropriações do Pinhal Interior, ACE 37.08%
GACE - Gondomar ACE 24.00%
GCVC, ACE (Grupo Construtor de Vila do Conde) 42.86%
GLEX - Expropriações da Grande Lisboa, ACE 42.08%
Grupo Construtor do Edifício Gil Eanes, ACE 50.00%
Haçor Hospital da Terceira, ACE 43.25%
HL Construção, ACE 65.00%
LGC - Linha Gondomar, Construtores, ACE 30.00%
Mota-Engil, Soares da Costa, Monteadriano - Matosinhos, ACE 42.86%
Reforço de Potência da Barragem de Venda Nova III, ACE 28.33%
Somague, BCP, Mota-Engil, SPIE - Linha Vermelha do Metropolitano em ACE 23.68%
Via Rápida Câmara Lobos ECL, ACE 36.42%

JOINTLY CONTROLLED OPERATIONS – CONSORTIUMS

The consortiums included in the attached consolidated financial statements in the proportion of the assets, liabilities, expenses and income contractually attributable to the GROUP, respective head offices and effective holding percentage as at June 30, 20, were as follows:

Designation Head Office Effective holding
percentage
Latin America
Consórcio Conservacion Vial Santa Rosa ("Consórcio Conservacion Vial Santa Rosa") Peru 50.00
Through Mota- Engil Peru (Lima) 50.00
Consórcio Constructor Del Puerto de San Martin ("CCPSM - Consorcio Constructor Del Puerto de San Martin") Peru 33.30
Through Mota- Engil Peru (Lima) 33.30
Consórcio Ibagué-Honda-Cambao-Manizales ("Consórcio Ibague") Colombia 25.00
Through Mota–Engil Engenharia e Construção - Colombia branch (Bogotá) 25.00
Consórcio Inframe ("Consórcio Inframe") Colombia 60.00
Through Mota–Engil Engenharia e Construção - Colombia branch (Medellín) 60.00
Consórcio Mota-Engil Dominicana SAS/IEMCA ("Consórcio Mota-Engil Dominicana") Dominican Rep. 42.00
Through Mota-Engil Dominicana (Santo Domingo) 42.00
Consórcio Mota-Engil Peru HL Paita ("Consórcio Mota-Engil Peru HL Paita") Peru 50.00
Through Mota- Engil Peru (Lima) 50.00
Consórcio Mota-Engil TR ("Consórcio Mota-Engil TR") Peru 50.00
Through Mota- Engil Peru (Lima) 50.00
Consórcio Puentes de Loreto ("Consórcio Puentes Loreto") Peru 34.00
Through Mota- Engil Peru (Lima) 34.00
Consórcio Vial Acobamba ("Consórcio Vial Acobamba") Peru 50.00
Through Mota- Engil Peru (Lima) 50.00
Consórcio Vial el Descanso-Langui ("Consórcio Vial el Descanso-Langui") Peru 50.00
Through Mota- Engil Peru (Lima) 50.00
Consórcio Vial Jaylli ("Consórcio Vial Jaylli") Peru
(Lima)
42.00
42.00
Through Mota- Engil Peru
Consórcio Vial Sur del Peru ("Consórcio Vial Sur del Peru")
Peru 50.00
Through Mota- Engil Peru (Lima) 50.00
Consórcio Vial Tambillo ("Consórcio Vial Tambillo") Peru 50.00
Through Mota- Engil Peru (Lima) 50.00
Consórcio Vial Valle Sagrado ("Consórcio Vial Valle Sagrado") Peru 50.00
Through Mota- Engil Peru (Lima) 50.00
Consórcio Vial Vizcachane ("Consórcio Vial Vizcachane") Peru 50.00
Through Mota- Engil Peru (Lima) 50.00
Stracon Translei Joint Venture ("Consórcio Stracon Translei") Peru 50.00
Through Mota- Engil Peru (Lima) 50.00
Translei Consórcio Cosapi ("Translei Consórcio Cosapi") Peru 50.00
Through Mota- Engil Peru (Lima) 50.00
Translei Consórcio Cusco-Quillabanba ("Translei Consórcio Cusco-Quillabanba") Peru 50.00
Through Mota- Engil Peru (Lima) 50.00

The Mota-Engil Group maintains a stable relationship with stakeholders and the surrounding community. A relationship of trust based on a unique and transversal strategy, guided by values that has been maintained since the foundation of the Group for more than 70 years, passed down from generation to generation.

Cohesion today,

03

Mandatory Information

Imagining Tomorrow.

DECLARATION UNDER THE TERMS OF ARTICLE 246, NO. 1, CAPTION C), OF CVM (SECURITIES CODE)

Under the terms of article 246, no. 1, caption c) of the Securities Code, the members of the Board of Directors declare that, to the best of their knowledge, the information contained in this report and accounts has been prepared according to the International Financial Reporting Standards (IFRS) as adopted by the European Union, providing a true and appropriate image of the assets and liabilities, of the financial situation and of the results of MOTA-ENGIL, SGPS, SA and the companies included in its consolidation perimeter, and that the management report faithfully expresses the evolution of the business, the performance and the position of MOTA-ENGIL, SGPS, SA and the companies included in its consolidation perimeter, and contains a description of the main risks and uncertainties with which they are confronted.

Porto, August 25, 2020

António Manuel Queirós Vasconcelos da Mota Chairman of the Board of Directors

Gonçalo Nuno Gomes de Andrade Moura Martins Deputy-chairman of the Board of Directors and President of the Executive Committee (Chief Executive Officer)

Arnaldo José Nunes da Costa Figueiredo Deputy-chairman of the Board of Directors

Jorge Paulo Sacadura Almeida Coelho Deputy-chairman of the Board of Directors

Carlos António Vasconcelos Mota dos Santos Member of the Board of Directors and Deputy-chairman of the Executive Committee

Maria Manuela Queirós Vasconcelos Mota dos Santos Member of the Board of Directors

Maria Teresa Queirós Vasconcelos Mota Neves da Costa Member of the Board of Directors

Maria Paula Queirós Vasconcelos Mota de Meireles Member of the Board of Directors

Ismael Antunes Hernandez Gaspar Member of the Board of Directors and Member of the Executive Committee

José Pedro Matos Marques Sampaio de Freitas Member of the Board of Directors and Member of the Executive Committee (Chief Financial Officer)

João Pedro dos Santos Dinis Parreira Member of the Board of Directors and Member of the Executive Committee Eduardo João Frade Sobral Pimentel Member of the Board of Directors and Member of the Executive Committee

Manuel António da Fonseca Vasconcelos da Mota Member of the Board of Directors and Member of the Executive Committee

Luís Filipe Cardoso da Silva Member of the Board of Directors and Member of the Executive Committee

Emídio José Bebiano e Moura da Costa Pinheiro Member of the Board of Directors

Luís Francisco Valente de Oliveira Non-executive and independent member of the Board of Directors

António Bernardo Aranha da Gama Lobo Xavier Non-executive and independent member of the Board of Directors

António Manuel da Silva Vila Cova Non-executive and independent member of the Board of Directors

Francisco Manuel Seixas da Costa Non-executive and independent member of the Board of Directors

Helena Sofia Salgado Cerveira Pinto Non-executive and independent member of the Board of Directors

Ana Paula Chaves e Sá Ribeiro Non-executive and independent member of the Board of Directors

INFORMATION REGARDING TRANSACTIONS OVER OWN SHARES, UNDER THE TERMS OF ARTICLE 66 NO. 5 CAPTION D) OF THE COMMERCIAL COMPANIES CODE

Under the terms defined in caption d) of no. 5 of article 66º of the Commercial Companies Code, we hereby declare that, during the first half of 2020, MOTA-ENGIL, SGPS SA did not proceed with any transaction over own shares. Therefore, as at June 30, 2020, MOTA-ENGIL, SGPS SA hold 6,091,581 own shares representing 2.56% of its share capital, detailed as follows:

2020 Quantity Average cost Amount
Opening Balance 6,091,581 1.68€ 10,232
Closing Balance 6,091,581 1.68€ 10,232

QUALIFIED HOLDINGS

In compliance with the provisions of Article 2, no. 4 of CMVM Regulation no. 5/2008, we hereby disclose the list as at June 30, 2020 of the persons with qualified holdings, with the indication of the number of shares held and the corresponding percentage of voting rights, computed under the terms of Article 20 of the Securities Code:

Shareholders No. of shares % of Capital
held
% of Voting
rights
Mota Gestão e Participações, SGPS, SA (*) 134,147,973 56.48% 57.97%
Maria Paula Queirós Vasconcelos Mota de Meireles (**) 4,494,211 1.89% 1.94%
António Manuel Queirós Vasconcelos da Mota (**) 4,210,020 1.77% 1.82%
Maria Teresa Queirós Vasconcelos Mota Neves da Costa (**) 3,676,836 1.55% 1.59%
Maria Manuela Queirós Vasconcelos Mota dos Santos (**) 3,275,066 1.38% 1.42%
António Lago Cerqueira, S.A. (***) 3,091,577 1.30% 1.34%
Carlos António Vasconcelos Mota dos Santos (**) 480,000 0.20% 0.21%
Manuel António da Fonseca Vasconcelos da Mota (**) 440,000 0.19% 0.19%
Maria Sílvia Fonseca Vasconcelos Mota (****) 437,061 0.18% 0.19%
José Manuel Mota Neves da Costa (****) 35,000 0.01% 0.02%
José Pedro Matos Marques Sampaio de Freitas (**) 20,138 0.01% 0.01%
Attributable to FM – Sociedade de Controlo, SGPS, SA 154,307,882 64.97% 66.68%
Ghotic Corp Mutima Capital (*) 3,604,893 1.52% 1.56%
Ghotic HSP Corp Mutima Capital (*) 1,399,289 0.59% 0.60%
Ghotic JBD LLC Mutima Capital (*) 1,312,787 0.55% 0.57%
Gothic ERP LLC Mutima (*) 925,700 0.39% 0.40%
The Mutima Africa Fund LP (*) 180,640 0.08% 0.08%
Attributable to Mutima Capital Management, LLC 7,423,309 3.13% 3.21%
Attributable to Norges Bank 5,480,011 2.31% 2.37%
Own shares 6,091,581 2.56% -
Freefloat 64,202,358 27.03% 27.74%
TOTAL 237,505,141 100.00% 100.00%

(*) Direct shareholder of the Company

(**) Member of the Board of Directors of the Company and person qualified as "Dirigente"

(***) 51% of this company is held by Mota Gestão e Participações, SGPS, SA

(****) Person qualified as "Dirigente" of the Company

INFORMATION REGARDING TRANSACTIONS PERFORMED BY MEMBERS OF THE BOARD OF DIRECTORS AND BY "DIRIGENTES"

Disclosure of shares and other securities held by members of the Board of Directors and by people qualified as "Dirigentes", as well as people closely related to them, under the terms of article 248-B of the Securities Code, and disclosure of the transactions performed during the first half of the year.

Holding shares of
MOTA-ENGIL, SGPS, SA MGP, SGPS, SA FM, SGPS, SA
"Dirigentes" Date Qt. Price Buy / Sell Inside /
Outside
Market
% Qt. % Qt. %
Maria Paula Queirós Vasconcelos Mota de Meireles
Opening balance / Closing balance 4,494,211 1.89% 0 0.0% 17,902 21.51%
António Manuel Queirós Vasconcelos da Mota
Opening balance / Closing balance 4,210,020 1.77% 0 0.0% 28,701 34.48%
Maria Teresa Queirós Vasconcelos Mota Neves da Costa
Opening balance / Closing balance 3,676,836 1.55% 0 0.0% 17,902 21.51%
Maria Manuela Queirós Vasconcelos Mota dos Santos
Opening balance 3,375,066 1.42% 0.0% 17,902 21.51%
22 June 2020 -100,000 Donation
Closing balance 3,275,066 1.38% 0 0.0% 17,902 21.51%
Carlos António Vasconcelos Mota dos Santos
Opening balance 380,000 0.16%
22 June 2020 100,000 Donation
Closing balance
Manuel António da Fonseca Vasconcelos da Mota
480,000 0.20%
Opening balance / Closing balance 440,000 0.19%
Maria Sílvia Fonseca Vasconcelos Mota
Opening balance / Closing balance 437,061 0.18%
José Manuel Mota Neves da Costa
Opening balance / Closing balance 35,000 0.01%
José Pedro Matos Marques Sampaio de Freitas
Opening balance / Closing balance 20,138 0.01%
Luís Filipe Cardoso da Silva
Opening balance / Closing balance 12,500 0.01%
Gonçalo Nuno Gomes de Andrade Moura Martins
Opening balance / Closing balance 12,435 0.01%
Emídio José Bebiano e Moura da Costa Pinheiro
Opening balance / Closing balance 1) 10,000 0.00%
António Cândido Lopes Natário
Opening balance / Closing balance 10,000 0.00%
Rui Jorge Teixeira de Carvalho Pedroto
Opening balance / Closing balance 2,000 0.00%
Ismael Antunes Hernandez Gaspar
Opening balance / Closing balance 1,000 0.00%
António Lago Cerqueira, S.A.
Opening balance / Closing balance
F.M. - Sociedade de Controlo, SGPS, SA
3,091,577 1.30%
Opening balance / Closing balance
Mota Gestão e Participações, SGPS, SA
- - 6,337,640 100.0%
Opening balance 133,466,687 56.20%
13 March 2020 45,000 1.020
16 March 2020 136,286 1.017
15 May 2020 500,000 1.006
Closing balance 134,147,973 56.48% - -

1) Position at June 30, 2020 and in the date of its appointment to the corporate bodies of Mota-Engil SGPS.

As at June 30, 2020, were attributable to FM – SOCIEDADE DE CONTROLO SGPS, SA 154,307,882 shares corresponding to 64.97% of the share capital of MOTA-ENGIL, SGPS, SA which confer 66.68% of the voting rights.

The bonds held by the members of the Board of Directors, by the "Dirigentes" and by the members of the supervisory bodies of the COMPANY as at June, 30, 2020 were as follows:

Name No. of bonds Bonds ME
2018/2022
(NV* - 500€)
Bonds ME
2019/2024
(NV* - 500€)
António Manuel Queirós Vasconcelos da Mota 376 376 -
José Pedro Matos Marques Sampaio de Freitas 359 340 19
José Manuel Mota Neves da Costa 340 200 140
António Manuel da Silva Vila Cova 300 300 -
Carlos António Vasconcelos Mota dos Santos 298 224 74
Maria Manuela Queirós Vasconcelos Mota dos Santos 250 140 110
Luís Valente de Oliveira 108 108 -
Manuel António da Fonseca Vasconcelos da Mota 46 46 -
Maria Paula Queirós Vasconcelos Mota de Meireles 40 40 -
Ana Paula Chaves e Sá Ribeiro 40 40 -
Luís Filipe Cardoso da Silva 36 36 -
Gonçalo Nuno Gomes de Andrade Moura Martins 19 - 19
Emídio José Bebiano e Moura da Costa Pinheiro 14 4 10
Maria Teresa Queirós Vasconcelos Mota Neves da Costa 12 - 12
António Cândido Lopes Natário 4 4 -

NV – Nominal Value

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