Martifer — Investor Presentation 2021

Mar 31, 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

228.7 M€

Operating Income reached 228.7 M€ of which 125.2 M€ in Metallic Constructions, 91.7 M€ in the Naval Industry and 13.4 M€ in Renewables

79%

Turnover generated outside Portugal and exports amount to 79% of the total Turnover of the Group

25.8 M€

Positive EBITDA of 25.8 M€ (margin of 12.3% on Turnover)

18.3 M€

Positive Equity of 18.3 M€, with Equity attributable to the Group of 18.7 M€

70 M€

Gross Debt with a reduction of 9 M€ in relation to December 2020 to 111 M€. Net Debt was reduced in 7 M€ to 70 M€

2.7 x

Net Debt/EBITDA 2.7x

57 M€

Gross Value Added amounted to around 57 M€, 27% of Turnover

492 M€

Order Book of 492 M€ in Metallic Constructions and in the Naval Industry

11.3 M€

Net Profit attributable to the Group of 11.3 M€

RESULT ANALYSIS

	(unaudited)
M€	MARTIFER CONSOLIDATED
Operating Income	228.7
EBITDA	25.8
EBITDA Margin	12.3%
Amortisation and depreciation	-5.5
Provisions and impairment losses	-2.0
EBIT	18.2
EBIT Margin	8.7%
Financial result	-5.7
Results in associate companies	1.9
Net Income for the year	12.7
Attributable to the Group	11.3

EBITDA Margin = EBITDA/Turnover (209,3 M€) EBIT Margin = EBIT/Turnover (209,3 M€)

Operating Income 2021

Metallic Constructions Naval Industry Renewables

CAPEX AND FINANCIAL DEBT

Total CAPEX of 3.8 M€, (excluding right-of-use assets relating to lease contracts recognised under IFRS 16 - Leases) of which 2.3 M€ in Renewables, 0.8 M€ in Metallic Constructions and 0.6 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 7.2 years
• Average cost of Debt < 3 %
• Solid Liquidity Ratio
• Debt Service Coverage Ratio > 2x

EBITDA (M€)

Gross Debt/EBITDA and Net Debt/EBITDA

ANNUAL CAPITAL REPAYMENTS (M€)

GROSS FINANCIAL DEBT | PROJECTION (M€)

Debt Service Coverage Ratio = EBITDA/Debt Service

BALANCE SHEET

BALANCE SHEET

	(unaudited )
M€	DECEMBER 2021
Non -current assets:
Intangible assets (including Goodwill)	11.5
Tangible fixed assets	53.7
Right -of -use assets	15.4
Financial investments (including Investment Prop. and Financial assets at fair value)	29.7
Trade receivables and other receivables	5.7
Deferred tax assets	5.9
Current assets:
Inventories	12.3
Trade receivables and other receivables	57.7
Contract assets	8.8
Prepayments	9.4
Other current assets	8.8
Cash and cash equivalents	41.0
Non -current assets held for sale	0.0
Total assets	259.9
Shared capital and reserves	7.4
Net income for the year	11.3
Equity attributable to owners of Martifer	18.7
Non -controlling interests	-0.3
Total equity	18.3
Non -current liabilities:
Loans	107.1
Lease liabilities	20.2
Trade payables and other payables	4.3
Provisions	3.4
Deferred tax liabilities	2.6
Current liabilities
Loans	3.5
Lease liabilities	0.9
Trade payables and other payables	47.1
Contract liabilities	38.7
Other current liabilities	13.8
Total liabilities	241.6

METALLIC CONSTRUCTIONS + NAVAL INDUSTRY | ORDER BOOK

TOTAL ORDER BOOK

492 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

Galp Energia: General maintenance contract, Sines refinery (2018-2024) Enerfuel: General Maintenance Contract for the Biodiesel Factory (2019-2024) VALE (Martifer-Visabeira): General Contract for the Maintenance of CLN, CDN and CEAR Locomotives (2020-2024)

VALE (Martifer-Visabeira): Maintenance and Recovery Contract for CLN Type HL6 Wagons (2021-2022)

SIEMENS ENERGY - Long Term Service Agreement:

Gezer Power Station (Israel) - Successfully executed (Start: 09/2021 | Completion: 01/2022) Sugen Power Station (India) - Successfully executed (Start: 11/2021 | Completion: 02/2022) Dead Sea Power Station (Israel) - In Progress (Start: 02/2022 | Completion: 04/2022) Rabigh Power Station (Saudi Arabia) - In Progress (Start: 02/2022 | Completion: 04/2022) QIPP Power Station (Saudi Arabia) - In Progress (Start: 02/2022 | Completion: 04/2022) Ribatejo Power Station (Portugal) - To be Executed (Start: 04/2022 | Completion: 04/2022) Enecogen Power Station (Netherlands) - To Be Executed (Start: 06/2022 | Completion: 08/2022) Jebel Ali Plant (UAE) - To be Executed (Start: 04/2022 | Completion: 05/2022) Gezer Power Station (Israel) - To Be Executed (Start: 04/2022 | Completion: 07/2022) Tapada do Outeiro PowerStation (Portugal) - To beExecuted (Start: 09/2022 | Completion: 11/2022)

GALP ENERGIA – General maintenance and repair of storage tanks: OP-T417 Tank | 32,000 m³ Diesel Tank

PROJECTS IN OPERATION: 4 x 1 MWp (PV)

PROJECTS IN CONSTRUCTION: 35 MW (Wind)

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

PROJECTS IN OPERATION: 42 MW (Wind)

PROJECTS UNDER DEVELOPMENT: 12 MWp (PV)

PROJECTS UNDER DEVELOPMENT: 300 MWp (PV)

SUSTAINABILITY AT MARTIFER GROUP

Environment

EQUALITY AND NON-DISCRIMINATION

Origin, ethnicity, sex, political convictions, religion, sexual orientation or disability

> 4.400€ DONATED to institutions within the scope of social responsibility

Governance

228.7 M€

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

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

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

STAKEHOLDERS

Communication with the different stakeholders

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

In 2021, the shareholders renewed their confidence in the management team for another term of office. For the three-year term 2021-2023, we defined a new strategic plan based on the pillars that have sustained the success of these last years, but with the renewed ambition of sustained and sustainable growth.

For the coming years, we have a clear strategy and ambitious goals:

• In Metallic Constructions, we will maintain our focus on strengthening the Group's export profile, seeking opportunities in markets and clients that value quality and excellence, on organisation and valuing people, and on productivity;
• In the 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 shipbuilding activities increasingly balanced in the relative weight of turnover;
• We will continue to reinforce the Industrial Maintenance activity;
• 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 of which we are part);
• We will also pay close attention to environmental, social, innovation and sustainability issues and ESG (Environmental, Social and Corporate Governance) goals.

REPRESENTATIVE FOR MARKET RELATIONS

Pedro Moreira

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

www.martifer.com