Martifer — Interim / Quarterly Report 2022

Aug 25, 2022

DISCLOSURE

This document (20 pages) was prepared by Martifer SGPS, S.A. exclusively for the present disclosure. The referred financial information is unaudited information.

All communications, queries and requests for information relating to this document should be addressed to the representatives of Martifer SGPS, S.A..

HIGHLIGHTS

RESULTS ANALYSIS ORDER BOOK SUSTAINABILITY AND FUTURE PROSPECTS

103.7 M€

Operating Income reached 103.7 M€ of which 61.1 M€ in Metallic Constructions, 32.3 M€ in the Naval Industry and 11.2 M€ in Renewables

84%

Turnover generated outside Portugal and exports amount to 84% of the total Turnover of the Group

14.6 M€

Positive EBITDA of 14.6 M€ (margin of 15.8% on Turnover)

29.8 M€

Positive Equity of 29.8 M€, with Equity attributable to the Group of 29.4 M€

101 M€

Gross Debt with a reduction of 10 M€ in relation to December 2021 to 101 M€. Net Debt was reduced in 27 M€ to 43 M€

30 M€

Gross Value Added amounted to around 30 M€, 33% of Turnover

467 M€

Order Book of 467 M€ in Metallic Constructions and in the Naval Industry

9.8 M€

Net Profit attributable to the Group of 9.8 M€

RESULT ANALYSIS

	(unaudited)
M€	MARTIFER CONSOLIDATED
Operating Income	103.7
EBITDA	14.6
EBITDA Margin	15.8%
Amortisation and depreciation	-2.8
Provisions and impairment losses	0.1
EBIT	11.9
EBIT Margin	12.9%
Financial result	-3.7
Results in associate companies	2.3
Net Income for the period	10.3
Attributable to the Group	9.8

EBITDA Margin = EBITDA/Turnover (92.7 M€) EBIT Margin = EBIT/Turnover (92.7 M€)

Operating Income 1H 2022

Metallic Constructions Naval Industry

Renewables

CAPEX AND FINANCIAL DEBT

Total CAPEX of 0.86 M€, (excluding right-of-use assets relating to lease contracts recognised under IFRS 16 - Leases) of which 0.34 M€ in Renewables, 0.48 M€ in Metallic Constructions and 0.04 M€ in the Naval Industry.

CAPEX FINANCIAL DEBT (M€)

Gross debt = Loans (+/-) Derivatives Net debt = Gross debt - Cash and cash equivalents

FINANCIAL DEBT | DEBT PHASING

• Medium- and longterm phasing of the financial Debt
• Average maturity of the Debt is 6.6 years
• Average cost of Debt ~ 3 %
• Solid Liquidity Ratio
• Debt Service Coverage Ratio > 2x

EBITDA (M€)

ANNUAL CAPITAL REPAYMENTS (M€)

Gross Debt/EBITDA and Net Debt/EBITDA

GROSS FINANCIAL DEBT | PROJECTION (M€)

Debt Service Coverage Ratio = EBITDA/Debt Service

BALANCE SHEET

BALANCE SHEET

M€	JUNE 2022
Non -current assets:
Intangible assets (including Goodwill)	11.6
Tangible fixed assets	48.6
Right -of -use assets	15.6
Financial investments (including Investment Prop. and Financial assets at fair value)	26.0
Trade receivables and other receivables	3.7
Deferred tax assets	5.9
Current assets:
Inventories	13.3
Trade receivables and other receivables	57.7
Contract assets	6.0
Prepayments	8.7
Other current assets	9.9
Cash and cash equivalents	58.3
Total assets	265.4
Shared capital and reserves	19.6
Net income for the period	9.8
Equity attributable to owners of Martifer	29.4
Non -controlling interests	0.4
Total equity	29.8
Non -current liabilities:
Loans	97.9
Lease liabilities	20.3
Trade payables and other payables	4.0
Provisions	3.3
Deferred tax liabilities	2.8
Current liabilities
Loans	3.1
Lease liabilities	1.0
Trade payables and other payables	44.3
Contract liabilities	43.0
Other current liabilities	15.8
Total liabilities	235.6

METALLIC CONSTRUCTIONS + NAVAL INDUSTRY | ORDER BOOK

TOTAL ORDER BOOK

467 M€

METALLIC CONSTRUCTIONS | OPERATIONAL ACTIVITY

Relevant projects in order book

NAVAL INDUSTRY | OPERATIONAL ACTIVITY

Relevant projects in order book

RENEWABLES & ENERGY | INFRASTRUCTURES FOR ENERGY AND OPERATION & MAINTENANCE

Relevant projects in order book

Vulcan Minerals Inc. (Martifer-Visabeira): Rolling Stock Wagons Type HL6 Maintenance & Repair

Vulcan Minerals Inc. (Martifer-Visabeira): Locomotives Traction Engines General Maintenance & Repair

Galp Energia: General Maintenance Contract of Sines Refinery

Enerfuel: General Maintenance Contract of Enerfuel Biodiesel Plant

Siemens Energy: Mechanical Maintenance Services of Gas Turbines, Steam Turbines and Generators

Galp Energia: Full Revamp of a Diesel Storage Tank, located in Santa Maria Island, Azores

RENEWABLES & ENERGY | WIND AND SOLAR - PROJECTS

PROJECTS IN CONSTRUCTION: 1 MWp (PV) 2.1 MW (Production Unit for autoconsumption)

PROJECTS UNDER DEVELOPMENT: 130.5 MW (Wind) 27 MWp (PV)

PROJECTS IN OPERATION: 4 x 1 MWp (PV)

PROJECTS UNDER DEVELOPMENT: 50 MW (Wind) 148 MWp (PV)

PROJECTS IN OPERATION: 42 MW (Wind)

PROJECTS UNDER DEVELOPMENT: 15 MWp (PV)

PROJECTS UNDER DEVELOPMENT: 300 MWp (PV)

SUSTAINABILITY AT MARTIFER GROUP (2021 FIGURES)

Environment

NO forms of individual discriminationare 12% acceptable at Martifer RATE

Governance

228.7 M€

dropped in the last years

SEVERITY

OPERATING INCOME 125.2 M€ in Metallic Constructions, 91.7 M€ in Naval Industry and 13.4 M€ in Renewables

EMPLOYEE TRAINING 82% internal training, recognising the technicalpedagogical capacity

Adoption of Portuguese Corporate Governance Institute's (2018) corporate governance best practices Policy based on high standards of conduct, ethics and social responsibility

or disability

GOVERNANCE In the composition of the corporate bodies DIVERSITY Considering diversity requirements, especially gender diversity

Origin, ethnicity, sex, political

convictions, religion, sexual orientation

STAKEHOLDERS

to institutions within the scope of social responsibility

Communication with the different stakeholders

It is a key aspect for the development of Martifer Group activities

The Group defined for the three year period 2021-2023 an update to the strategic plan, based on the pillars that have sustained the success of recent years, but with the renewed ambition of a sustained and sustainable, remaining focused on the objectives and strategy defined:

• In Metallic Construction, the focus is on strengthening the Group's export profile, seeking opportunities in markets and clients that value quality and excellence, on organisation and valuing people and productivity;
• In Naval Industry, we aim to increase our ship repair capacity, positioning ourselves as one of the most important shipyards in Europe in this area and to make ship repair and ship construction activities increasingly balanced in the relative weight of turnover;
• Reinforce the weight of Operation & Maintenance, in particular Industrial Maintenance;
• In Renewables & Energy, we want to grow gradually and consistently, increasing the relative weight of this business unit in the Group, taking advantage of the opportunities associated with energy transition, decarbonisation of the economy and hydrogen (through the GreenH2Atlantic consortium in which we participate);
• Promote sustained and sustainable growth, preserving environmental, social, innovation and sustainability issues and ESG (Environmental, Social and Governance) goals.

REPRESENTATIVE FOR MARKET RELATIONS

Pedro Moreira

T. +351 232 767 700 F. +351 232 767 750

www.martifer.com