Mota-Engil

Investor Presentation • Aug 30, 2018

Key highlights 2 EARNINGS RELEASE 1H18

• Turnover up 5% YoY to €1,251 mn
• EBITDA with a resilient margin of 14%
• Backlog remains strong, reaching €5.3 bn, of which 78% outside Europe
• Strong commercial environment boosting recent awards after June 2018 worth €340 mn, as well as other projects waiting formalisation worth €850 mn
• Flat net debt YoY at €1.0 bn, despite higher capex and working capital
• Net profit of €6 mn (€15 mn ex IAS 29 impact)

Turnover up 5% YoY

4

P&L (€ mn)

	Pro-forma
	1H18	(*) 1H18	1H17	YoY
Turnover	1 251 ,	1 256 ,	1 196 ,	5%
EBITDA	176	180	186	(5%)
Margin	14%	14%	16%	(2 p.p.)
EBIT	90	95	97	(7%)
Margin	7%	8%	8%	(1 p.p.)
financial results Net	(10)	(10)	(47)	(79%)
Associates	2	2	1	63%
position1 Net monetary	(9)	-	-	n.m.
EBT	73	88	51	41%
income Net	41	56	40	4%
Attributable to:
Non-controlling interests	35	41	35	1%
Group	6	15	5	24%

(*)Excluding IAS 29

• Turnover of €1,251 mn up 5% YoY reflects the transition phase between ending of some relevant projects, and the starting stages of other new projects in Latin America and Africa (mainly in new markets)
• EBITDA of €176 mn was mainly driven by Africa, which showed a strong profitability
• Net financial results impacted by forex net gains
• Increase of corporate tax mainly due to the end of the tax benefit granted to Mota-Engil Angola associated with the investment performed
• Non-controlling interests are mainly related to the E&S and E&C activities in Angola and in Mexico, including the electricity generation business
• IAS 29 accounting impacted negatively EBITDA by €4 mn and the Group's net income by c.€9 mn

¹The caption "Net monetary position" reflects partially the accounting of Angola as a hyperinflationary economy (IAS 29).

EBITDA margin of 14%

P&L breakdown (€ mn)

	1H18	1H17	YoY
Turnover	251 1 ,	196 1 ,	5%
Europe	406	380	7%
Africa	362	349	4%
Latin America	486	469	4%
Other and intercompany	(3)	(3)	11%
EBITDA	176	186	(5%)
Margin	14%	16%	(2 ) p p
Europe	47	62	(25%)
Margin	12%	16%	(4 ) p p
Africa	82	78	6%
Margin	23%	22%	1 p p
Latin America	42	38	12%
Margin	9%	8%	1 p p
Other and intercompany	5	8	n m

Total turnover remained broadly balanced YoY and showed a similar growth

EBITDA margin reached 14% backed by the strong contribution of Africa

Stable margin in Latin America and challenging performance in the European E&C sector

Record backlog of €5.3 bn and growing after June 6 EARNINGS RELEASE 1H18

• Total backlog increased €114 mn from December 2017 to €5.3 bn
• E&C backlog to sales² ratio of 2.0x
• Recent awards worth €340 mn (€250 mn in Argentina and the remaining in several smaller projects, namely in Portugal)
• Very strong commercial prospects after June 2018 with projects waiting formalisation in several markets worth €850 mn

¹E&C turnover of the last twelve months; ²Ratio calculated as follows: E&C Backlog/E&C Turnover.

⁷ Major construction projects currently in backlog

EARNINGS RELEASE 1H18

1 Project	(€ Mn) Range	Country	Segment	of Exp Year Completion
Vale Mining Moatize	250 >	Mozambique	Mining	2022
Classes: Caribbean; Cafetero - Pacific; G1 G2 Eje G3 Antioquia - Eje Cafetero - Pacific	250 >	Colombia	Civil Construction	2020
Canal highway Gran	250 >	Mexico	Roads	2019
Urban light rail Guadalajara – Tunnel	250 >	Mexico	Railway	2018
Salaam Dar Es	[200;250]	Tanzania	Railway	2019
Bambas dam Las	[200;250]	Peru	Power	2020
Cardel highway Rica -Poza	[200;250]	Mexico	Roads	2019
highway Tuxpan-Tampico	[200;250]	Mexico	Roads	2019
gold Siguiri mine	[150;200[	Conakry Guinea	Mining	2022
highway dualisation BR-381	[150;200[	Brazil	Roads	2019
of General Hospital Cabinda	[100;150[	Angola	Civil Construction	2019
Mall Extensions Fourways Fourways ,	[100;150[	South Africa	Civil Construction	2019
Kampala Northern Capacity Improvement Bypass	[100;150[	Uganda	Roads	2020

¹Selection of E&C projects above €100 Mn with a stage of completion lower than 95%.

• E&C capex reached €89 mn, mostly allocated to Africa's activities
• E&S capex reached €22 mn and was mainly channelled to Europe, namely EGF

12

12

24

Africa accounted for €82 mn of the total capex, of which 44% was related to equipment associated with the mining works in Mozambique and in Guinea Conakry (long term contracts)

1H18 1H17

contracts

Net capex (€ mn) Capex in 1H18 by region (€ mn)

53

36

22

111

9

Operating cash flow impacted by seasonal working capital

Cash flow (€ mn)

	1H18	2017	1H17
balance debt Opening net	877	159 1 ,	159 1 ,
EBITDA	176	405	186
Change working capital in	(44)	190	19
Corporate tax	(32)	(28)	(12)
CFFO	101	566	194
financials Net	(19)	(102)	(47)
Maintenance capex	(40)	(62)	(19)
Growth capex	(71)	(86)	(5)
FCF	(29)	315	123
Dividends	(5)	(38)	(38)
post-dividends FCF	(34)	277	84
Líneas cash in	-	145	145
m/l Other changes & in perimeter term	(90)	(140)	(91)
Change debt in net	124	(282)	(139)
Closing balance debt net	1 002 ,	877	1 020 ,
debt/EBITDA Net	1 2 5x	1 2 2x	1 2 7x

• As in previous first semesters, seasonality negatively impacted working capital
• The anticipated strong capex in Africa negatively impacted cash flow generation
• Dividends outflow is related to the minority shareholders of EGF and ECB

¹Net debt considers Angola's sovereign bonds denominated in US\$ and US\$ linked as "cash and cash equivalents" which amounted to €150 mn in June 2018 and €156 mn in December 2017. EBITDA refers to the last twelves months.

¹⁰ Working capital maintains long term descending trend EARNINGS RELEASE 1H18

• Working capital was up €44 mn impacted by the seasonal business activity
• Equity impacted mainly by the foreign exchange losses arising from the devaluation of the kwanza
• Long-term payables include investment subsidies and regulatory liabilities related to EGF, amounting to c.€150 mn

Balance sheet (€ mn)

Working capital evolution (€ mn)

177

221

¹Net debt considers Angola's sovereign bonds denominated in US\$ and US\$ linked as "cash and cash equivalents".

• ¹¹ Average cost of debt down to 5.1%
• Net debt¹ amounted to €1,002 Mn

Gross debt maturity²

• Leasing amounted to €202 mn, up €37 mn in the 1H18, of which €33 Mn related to long term contracts
• Average cost of debt of 5.1%, down from 5.6% in December 2017

, June 2018 (€ mn) Average cost of debt and average debt life (years)

¹Excluding leasing, factoring and the sale of receivables covered by the Cosec Portugal/Angola credit line amounting to €202 mn, €82 mn and €150 mn, respectively, and including €150 mn of Angolan sovereign bonds; 2Excluding leasing and factoring.

¹² Total liquidity position of €726 mn

Liquidity position, June 2018 (€ mn)

• Total liquidity position corresponding to c.44% of total gross debt, and to c.1.1x of the nonrevolving financing needs with one year maturity
• Cash & cash equivalents include Angola's sovereign bonds amounting to €150 mn
• Organic cash flow generation and disposal of non-core assets will continue to contribute to maintain a strong balance sheet

€406 Mn	€47 Mn/12%	€1,166 Mn
TURNOVER	EBITDA / EBITDA mg	BACKLOG

¹⁴ Turnover up 7% YoY

Key financials (€ mn)

	1H18	1H17	YoY
Turnover	406	380	7%
E&C	266	230	16%
E&S	145	153	(5%)
Other elim and interc ,	(5)	(2)	(113%)
EBITDA	47	62	(25%)
Margin	12%	16%	(4 ) p p
E&C	1	7	(87%)
Margin	0%	3%	(3 ) p p
E&S	46	56	(17%)
Margin	32%	36%	(4 ) p p
Other elim and interc ,	-	-	n m

• E&C turnover was up 16% YoY, mainly backed by the positive evolution of Poland that showed an increase in activity of 28% YoY, but also Portugal that accounted for c.50% of the segment's turnover
• Profitability in E&C was negatively impacted by the execution of some projects awarded in a challenging context
• Turnover in E&S reached €145 mn, of which €87 mn from EGF
• E&S EBITDA margin remained strong at 32%

¹⁵ E&C activity expected to rebound with larger projects EARNINGS RELEASE 1H18

Rockbuilding, Portugal (E&C)

• Positive outlook for the Portuguese construction sector, with expected impact in 2019/2020
• Backlog in Poland of €511 Mn, mainly related to road contracts, while studying commercial opportunities in the road, civil construction and railway segments to be tendered until year end
• Outlook for 2018: flat top-line and positive EBITDA

EGF's plant, Portugal

• EGF's capex program in execution and in accordance with the regulatory framework in place
• Parameters for the next regulatory period should be announced in the 4Q18
• Outlook for 2018: slightly decrease of topline and EBITDA

€362 Mn	€82 Mn/23%	€2,657 Mn
TURNOVER	EBITDA / EBITDA mg	BACKLOG

¹⁷ Turnover of €362 mn

Backlog by sub-region

• Turnover growth decelerated to 4% YoY since the conclusion of some works was not fully compensated by the starting process of recently awarded projects, mainly in new markets
• EBITDA margin of 23% reflected strong profitability in all markets, but mainly in Angola
• Backlog up c.€50 mn in the 1H18 driven by contract awards in Ivory Coast and in Uganda

¹Namely Guinea Conakry, Ivory Coast and Uganda.

¹⁸ Activity in the 2H18 will increase

Vale's mining works, Mozambique

• Activity expected to increase (YoY), but the starting phase of execution of some new projects will reduce the production impact throughout this year
• Capex should be lower in the 2H18, with no expected further spikes related to existing contracts
• Outlook 2018: double-digit top-line increase and EBITDA in line with guidance of c.20%

€486 Mn	€42 Mn/9%	€1,430 Mn
TURNOVER	EBITDA / EBITDA mg	BACKLOG

• Turnover in Latin America up 4% YoY to €486 mn, accounting for 39% of the Company's total turnover
• Mexico represented 58% of the region's turnover with a significant increase in activity, that was partially offset by less works in Peru and Brazil as some projects reached completion
• EBITDA of €42 Mn, up 12% YoY driven by operations in Mexico
• Electricity generation business with revenues of €36 mn with c.50% EBITDA margin
• Backlog of €1.4 bn, with the main markets (Mexico, Colombia, Peru, Brazil) representing 95% of the total and not including the recent awarded road contract in Argentina

²¹ Execution of key projects ongoing

Cardel-Poza Rica section II, Mexico

• Several large projects being executed with strong impact in 2018, such as the Gran Canal, Cardel-Poza Rica and Tuxpan-Tampico highways and the Las Bambas dam
• Intense commercial activity with good perspectives in main and new markets
• Outlook 2018: slight top-line increase and flat EBITDA margin

FINAL REMARKS

• Strong capex and seasonal working capital had relevant effect on 1H18 performance
• Efficient working capital management remains as a critical goal
• 2018 capex guidance revised downwards to €150 mn €200 mn, but will pressure the cash flow generation for the remaining of the year
• Funding sources diversification and debt maturities extension programs will continue to be executed
• Strong commercial activity led to a high backlog at June 2018 and to new relevant awards/intentions of awards
• Dividend payment regarding the net income of 2018 expected to resume in 2019

This presentation used sources deemed credible and reliable but is not guaranteed as to accuracy or completeness. It also contains forward looking information that expresses management's best assessments but might prove inaccurate. The information contained in this presentation is subject to many factors and uncertainties and therefore subject to change without notice. The company declines any responsibility to update, revise or correct any of the information hereby contained. This presentation does not constitute an offer or invitation to purchase securities of Mota-Engil nor any of its subsidiaries.

The financial information presented in this document is non-audited.

²⁴ Disclaimer

JOÃO VERMELHO Director, Head of Investor Relations jvermelho@mota-engil.pt

MARIA ANUNCIAÇÃO BORREGA Investor Relations Officer maria.borrega@mota-engil.pt

investor.relations@mota-engil.pt

Rua de Mário Dionísio, 2 2796-957 Linda-A-Velha Portugal Tel. +351-21-415-8671

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