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Mota-Engil
Investor Presentation • Sep 1, 2022
1905_iss_2022-09-01_b6659abf-f6e1-41d0-b19c-351b8c7db572.pdf
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MOTA-ENGIL PORTFOLIO
MOTA-ENGIL INFRASTRUCTURE CONCESSIONS PORTFOLIO SEPTEMBER 2022
Mexico, PPP Coatzacoalcos - Villahermosa
| A | Summary | |
|---|---|---|
| B | Current projects | |
| C | Appendix |
| A | Summary | |
|---|---|---|
| B | Current projects | |
| C | Appendix |
Portfolio highlights
PPP project presence in 3 regions: Europe, Africa and Latam
The first PPP contract of the current portfolio was signed in the year 1995
9 projects under construction and 8 in operation
€6.2Bn of project's total investment value
€3.5Bn debt raised with more than 10 international financial institutions
Projects in 3 sectors, roads and bridges, energy and environment
PPP operations in 5 countries with 9 government entities
Currently 17 signed contracts with tenors up to 50 years
More than 650 Km of roads in construction and 1,500 Km in operation
€9.5Bn of future dividends (from July 2022)
13 projects have already reached financial close
82% of the portfolio with 10 or more years of remaining life
| Current financial situation (Figures in € MN) | |||||||
|---|---|---|---|---|---|---|---|
| Country | Project | Total Investment | Mota-Engil Share 1 (%) |
Mota-Engil Share 2 (%) |
Financial Close | Risk Profile | Remaining life (y) |
| Portugal | Lusoponte | 940 | 30.3% | 30.3% | ✓ | Traffic risk (mature) | 8 |
| Portugal | Douro Interior | 943 | 48.5% | 48.5% | ✓ | Availability payment + Traffic risk (residual) |
15 |
| Mozambique | Estradas do Zambeze |
151 | 95.0% | 95.0% | ✓ | Traffic risk | 19 |
| Kenya | Kenya Annuity Roads Lot 15 | 55 | 18.2% | 18.2% | ✓ | Availability payment | 10 |
| Kenya | Kenya Annuity Roads Lot 18 | 45 | 18.2% | 18.2% | ✓ | Availability payment | 10 |
| Mexico | Autopista Urbana Siervo de la Nación |
1,140 | 29.0% | 14.8% | Initial phase ✓ Extension - |
Guaranteed IRR | 50 |
| Colombia | Cambao - Manizales |
264 | 45.6% | 45.6% | ✓ | Traffic risk | 27 |
| Mexico | Autopista Cardel - Poza Rica |
412 | 40.0% | 28.7% | ✓ | Traffic risk | 23 |
| Mexico | Autopista Tuxpan - Tampico |
383 | 33.4% | 25.9% | ✓ | Traffic risk | 24 |
| Mexico | APP Coatzacoalcos - Villahermosa |
165 | 38.0% | 19.4% | ✓ | Availability payment | 5 |
| Mexico | APP Tamaulipas - Tampico |
147 | 47.0% | 24.0% | ✓ | Availability payment | 7 |
| Mexico | Autopista Cuapiaxtla - Cuacnopalan |
207 | 66.5% | 33.9% | ✓ | Guaranteed IRR | 29 |
| Mexico | Autopista Tultepec – Pirámides |
438 | 100% | 51.0% | - | Traffic risk | 28 |
| Mexico | Autopista Conexión Oriente |
212 | 50.0% | 25.5% | - | Traffic risk | 30 |
| Mexico | CMRO Nayarit | 375 | 100% | 51.0% | - | Availability payment | 10 |
| Mexico | Bordo Poniente |
114 | 50.0% | 25.5% | ✓ | PPA /Market price risk | 19 |
| Mexico | Jorge Luque | 175 | 91.0% | 46.4% | - | Market price risk | 20 |
1 Mota-Engil Group % directly held, 2 Mota-Engil effective consolidated %
The list does not include projects already awarded but not yet signed: Lisbon Hospital and Corredor Lobito Angola
Current financial situation (Figures in € MN)
Portfolio valuation is equivalent to a range from 3.1x up to 3.7x its book value, with an average discount rate of 10.3%
1) NPV includes dividends deducted of future equity contributions
2) Corresponding to the capital invested plus the appropriation of results by Mota-Engil in previous years (excluding minority interests)
3) Corresponds to the difference between the effective consolidated % and the % directly held
Current financial situation (Figures in € MN)
Total portfolio valuation of €715Mn in base case, of which €243Mn attributable to minority interests, namely the ones of Mota-Engil Mexico, resulting in a valuation of €472Mn attributable to Mota-Engil
Valuation assumptions:
- Discount rates starting from 7.2% for low-risk mature concessions up to 13.7% for high-risk
- Base line exchange rate and inflation projection
| Country | Long term inflation | Exchange rate |
|---|---|---|
| Portugal | 1.97% | NA |
| Mexico | 3.01% | 21.04 MXN/EUR |
| Colombia | 2.96% | 4,408 COP/EUR |
| Mozambique | 5.50% | 67.70 MZN/EUR |
| Kenya | 5.00% | 120.31 KES/EUR |
Source: IMF.
https://www.imf.org/en/Publications/WEO/weo-database/2022/April
- Purchasing Power Parity Method used to project exchange rates applied to future cash flows
| A | Summary | |
|---|---|---|
| B | Current projects | |
| C | Appendix |
| Type / Payment: Concession / Traffic risk |
AADT (2021): 91,000 |
|---|---|
| Contract Start/Term: Mar 1995 / 35 years | Km: 17.3 + 2.3 Km |
| Contracting authority: Portuguese State | ME Share (%): 30.3% |
| COD: March 1998 |
Total Inv.: €940.3 mn |
Works: Design, construction and operation of Vasco da Gama Bridge and 25 de Abril Bridge.
| Lusoponte | Douro Interior |
||
|---|---|---|---|
| Current Status: Operation | Current Status: Operation | ||
| Currently in mature operation stage. In 2022, daily traffic levels are increasing to pre pandemic levels. |
Douro Interior is being remunerated according to the original contract. | ||
| Type / Payment: Concession / Traffic risk |
AADT (2021): 91,000 | Type / Payment: Concession / Av. Pmt + Tra. R. |
AADT (2021): 1,687 |
| Contract Start/Term: Mar 1995 / 35 years | Km: 17.3 + 2.3 Km | Contract Start/Term: Nov 2008 / 30 years |
Km: 131 + 111 km |
| Contracting authority: Portuguese State | ME Share (%): 30.3% |
Contracting authority: IP | ME Share (%): 48.5% |
| COD: March 1998 |
Total Inv.: €940.3 mn | COD: 2014 | Total Inv.: €942.8 mn |
| Financing Structure (MEUR): 120 Equity, 392 Debt, and 428 | Subsidies | Financing Structure (MEUR): 171 Equity and 771 Debt | |
| Works: Design, construction and operation of Vasco da Gama Bridge and 25 de |
Works: Design, Construction and Operation of the Douro Interior Subconcession |
(IP2 and IC5).
| Type / Payment: Concession / Traffic risk |
AADT (2021)¹: 6,397 | ||
|---|---|---|---|
| Contract Start/Term: Jul 2010 / 30 years |
Km: 701 Km | ||
| Contracting authority: Mozambique State | ME Share (%): 95% |
||
| COD: 2015 | Total Inv.: €151 mn |
| Estradas do Zambeze | Kenya Annuity Roads Lot 15 | ||
|---|---|---|---|
| Current Status: Operation | Current Status: Construction | ||
| In 2015 the Grantor suspended the road's toll collection and has been analysing solutions with the Concessionaire. Meanwhile, tolls and revenues are being collected from bridges and border fees. |
Concession agreement signed in 2022, currently in early stage of construction works. | ||
| Type / Payment: Concession / Traffic risk |
AADT (2021)¹: 6,397 | Type / Payment: Concession / Availability Pmt |
AADT: n.a |
| Contract Start/Term: Jul 2010 / 30 years |
Km: 701 Km | Contract Start/Term: 2021 / 10 years | Km: 45 km |
| Contracting authority: Mozambique State | ME Share (%): 95% |
Contracting authority: KURA | ME Share (%): 18.15% |
| COD: 2015 | Total Inv.: €151 mn | COD: 2024 | Total Inv.: €55.8 mn |
| Financing Structure (MEUR): 39 Equity, 100 Debt, and 12 Others | Financing Structure (MEUR): 12 Equity, 36 Debt, and 7 Revenues | ||
| Works: O&M of N7, N8, N9, and N304 roads, and the New Bridge of Tete and Kassuende Bridges |
Works: Financing, design, construction (rehabilitation and upgrade), and maintenance |
(1) AADT for Bridge Samora Machel
| Kenya Annuity Roads Lot 18 | |
|---|---|
| Current Status: Construction | |
| Concession agreement signed in 2022. Currently in early stage of construction works. |
|
| Type / Payment: Concession / Availability Pmt |
AADT: n.a |
| Contract Start/Term: 2021 / 10 years | Km: 35 Km |
| Contracting authority: KURA | ME Share (%): 18.15% |
| COD: 2024 | Total Inv.: €45 mn |
| Financing Structure (MEUR): 10 Equity, 29 Debt, and 6 Revenues | |
| Works: Financing, design, construction (rehabilitation and upgrade), and maintenance |
|
Location: Western Kenya
Latin America
- Mexico
- Colombia
| HIGHLIGHTS | |||
|---|---|---|---|
| 12 | 7 | 5 | > 1000Km |
| Projects | Constructions | Operations |
Autopista Urbana Siervo de la Nación
Current Status: Operation
Concession amendment for a 4.5 km highway extension (the Mexico-Pachuca ) was granted, currently in financial close process. In May 22 the sale of 20% (€46 mn) to CERPI was executed.
| Type / Payment: Concession / /Guaranteed IRR | 2 AADT (2022e): 50,543 |
||
|---|---|---|---|
| Contract Start/Term: Sep 13 / 60 years | Km: 14.5 km |
||
| Contracting authority: SAASCAEM | ME Share (%): 14.79% |
||
| COD: October 2021 / Extension: Sept. 2023 |
Total Inv.: €1,140 mn |
Financing Structure (€ MN): 377 Equity, 742 Debt, and 21 Others
Works: Design finance, construct, operate and maintain an elevated urban A4 highway.
| Cambao – Manizales |
||
|---|---|---|
| Current Status: Construction | ||
| Financial close achieved with Bancolombia (€29 mn), CAF Ashmore (€44 mn) and a short-term facility also with Bancolombia (€42 mn). 2 sections have already been completed. |
||
| Type / Payment: Concession / Traffic Risk | AADT (2024e): 6,426 | |
| Contract Start/Term: Jul 15 / 34 years |
Km: 256.0 Km |
|
| Contracting authority: ANI | ME Share (%): 45.65% |
|
| COD: July 2023 |
Total Inv.: €263.9 mn | |
| Financing Structure (€ MN): 52 Equity, 145 Debt, and 67 Others | ||
| Works: Design finance, construct, operate and maintain 5 Functional Units (FU). |
||
1) Estimated traffic. Traffic still in ramp-up period
Autopista Cardel – Poza Rica
Current Status: Operation
Re-equilibrium negotiations, that include the 18.5 km Laguna Verde to La Mancha stretch (€100 mn additional Capex). In full operation since Feb 2022, with AADT above original base case in increasing number of days.
| Type / Payment: Concession / Traffic Risk | AADT (2022e): 7,043 |
|---|---|
| Contract Start/Term: Jul 14/30 years | Km: 124.7 Km |
| Contracting authority: SICT | ME Share (%): 28.7 % |
| COD: February 2022 |
Total Inv.: €411.5 mn |
Financing Structure (€ MN): 105 Equity, 246 Debt, and 61 Others
Works: Design, finance, construct, operate and maintain an A2 highway.
| Autopista Tuxpan – Tampico |
||
|---|---|---|
| Current Status: Operation | ||
| Re-equilibrium negotiations. In full operation with AADT above base case financial model. |
||
| Type / Payment: Concession / Traffic Risk | AADT (2022e): 9,350 | |
| Contract Start/Term: Sep 14/30 years | Km: 101.7 Km | |
| Contracting authority: SICT | ME Share (%): 25.85% |
|
| COD: May 2021 | Total Inv.: €383.3 mn | |
| Financing Structure (€ MN): 54 Equity, 232 Debt, and 98 Others | ||
| Works: Design, finance, construct, operate and maintain an A2 highway. |
APP Coatzacoalcos - Villahermosa
Current Status: Operation
By 2021 end, SICT requested a +15% payment reduction. Negotiations concluded with a reduction of 16.67% for 24 months with a 8-month contract extension and an implied additional equity investment requirement of €3.2 mn. Neutral impact on shareholders returns.
| Type / Payment: PPP / Availabilty Payment |
AADT (2021): 21,457 |
|---|---|
| Contract Start/Term: Nov 16/10 yrs + 8m | Km: 134.3 km |
| Contracting authority: SICT | ME Share (%): 19.4% |
| COD: May 2019 | Total Inv.: €162+ €3.2 mn |
Financing Structure (€ MN): 17 Equity, 90 Debt, and 58 Others
Works: Rehabilitation and maintenance of an A2 highway.
| APP Tamaulipas – | Tampico | |
|---|---|---|
Current Status: Operation
By 2021 end, SICT requested a +15% payment reduction. Negotiations concluded with a reduction of 16.29% payment during 24 months with a consequent 8-month contract extension with no implied additional equity investment requirement. Neutral impact on shareholders' returns. Sale of 21.5% stake expected to be completed in 2022.
| Type / Payment: PPP / Availabilty Payment |
AADT (2021): 6,899 | |
|---|---|---|
| Contract Start/Term: Jun 18 / 10 yrs + 8 m | Km: 225.5 Km | |
| Contracting authority: SICT | ME Share (%): 23.97% |
|
| COD: January 2021 Total Inv.: €147.2 mn |
||
| Financing Structure (€ MN): 17 Equity, 78 Debt, and 52 Others |
Works: Rehabilitation and maintenance of an A2 highway.
| Autopista Cuapiaxtla – Cuacnopalan |
Autopista Tultepec – Pirámides |
||
|---|---|---|---|
| Current Status: Construction | Current Status: Construction | ||
| Project under construction. Investor is currently performing a Due Diligence to acquire a 33% stake, transaction expected to be completed during 2022. |
Reviewing financing terms and conditions with local financial institutions, expected conclusion in Sep 2022. |
||
| Type / Payment: Concession / Guaranteed IRR |
AADT (2024e): 7,260 | Type / Payment: Concession / Traffic Risk | AADT (2024e): 23,178 |
| Contract Start/Term: Sep 18 / 30 years | Km: 63.6 km | Contract Start/Term: Dec 20 / 30 years |
Km: 27.2 Km |
| Contracting authority: CCP | ME Share (%): 33.9% |
Contracting authority: SAASCAEM | ME Share (%): 51% |
| COD: Sep 2023 | Total Inv.: €207 mn | COD: July 2023 |
Total Inv.: €438 mn |
| Financing Structure (€ MN): 42 Equity and 165 Debt | Financing Structure (€ MN): 88 Equity and 350 Debt | ||
| Works: Design, finance, construct, operate and maintain an A2 high-specification highway. |
Works: Design, finance, construct, operate and maintain an A4 highway. |
||
Location: Edo. De México, México
| Autopista Conexión Oriente |
CMRO Nayarit | ||
|---|---|---|---|
| Current Status: Construction | Current Status: Construction | ||
| Reviewing financial structure with local financial institutions. Expected closing during Q3/22. |
Contract signed on July 13, 2022. Currently studying alternative financing structures. | ||
| Type / Payment: Concession / Traffic Risk | AADT (2025e) : 32,717 | Type / Payment: PPP / Availabilty Payment | AADT (2025e): 17,600 1 |
| Contract Start/Term: Apr 21 / 30 years | Km: 7.0 km | Contract Start/Term: July 22 / 10 years |
km2 Km: 55.4 |
| Contracting authority: SAASCAEM | ME Share (%): 25.5% |
Contracting authority: FONADIN | ME Share (%): 51% |
| COD: Sep 2024 | Total Inv.: €212 mn |
COD: July 2024 |
Total Inv.: €375 mn |
| Financing Structure (€ MN): 12 Equity, 140 Debt, 48 Shareholder's loan, and 12 Others |
Financing Structure (€ MN): 121 Shareholder Loan, 253 Debt | ||
| Works: Finance, partial construction, rehabilitate, operate, and maintain a high |
Works: Design, finance, construct, operate and maintain an A4/A6 highway.
Location: Edo. De México, México
specification A2/A4 highway with 49 vehicular structures, 5 tunnels, and 3 ramps.
Location: Nayarit, México
1) No traffic risk, guaranteed payments
2) Divided in 26.0km highway's construction and operation, 11.1km Segment 2.A operation, and 18.3km Segment 2.B construction and operation
Bordo Poniente
Current Status: Construction
The project combines an environmental remediation with an energy project. Including reducing the emissions from one of the world largest landfill. The project obtained its financial close last May.
| Type / Payment: PPA / Market Price Risk | MW : 14 MW |
|---|---|
| Contract Start/Term: Dec 12 / 28 years |
Ha: 412ha |
| Contracting authority: CDMX Government | ME Share (%): 25.5% |
| COD: Dec 2022 |
Total Inv.: €114 mn |
Financing Structure (€ MN): 55 Equity, 33 Debt and 26 Others
Works: Final closure of the Bordo Poniente IV landfill (Stage I) and recover energy from the organic fraction of solid waste (Stage II)
| A | Summary | |
|---|---|---|
| B | Current projects | |
| C | Appendix |
Glossary
| Concept | Definition |
|---|---|
| PPP | Public-Private Partnership |
| NPV | Net Present Value |
| AADT | Annual Average Daily Traffic |
| CERPI | Private infrastructure fund listed on the Mexican stock exchange. |
| COD | Commercial Operation Date |
| SICT | Secretary of Infrastructure, Communications and Transportation in Mexico |
| SAASCAEM | Roads, Airports and Related Services System from the State of Mexico (Sistema de Autopistas, Aeropuertos, Servicios Conexos y Auxiliares del Estado de México) |
| ANI | National Infrastructure Agency (Agencia Nacional de Infraestructura), Colombia |
| KURA | Kenya Urban Roads Authority |
| CCP | Toll Roads of Puebla (Carreteras de Cota de Puebla), Mexico |
| FONADIN | National Infrastructure Trust (Fondo Nacional De Infraestructura) |
| PPA | Power Purchase Agreement |
MOTA-ENGIL PORTFOLIO
INFRASTRUCTURE CONCESSIONS PORTFOLIO 2022