Mota-Engil — Earnings Release 2021

Sep 2, 2021

Earnings Release First Half 2021

1

2 September 2021

Table of Contents

01	Key Highlights	Page 3
02	Results Overview	Page 5
03	Regional Segments 1. Europe 2. Africa 3. Latin America	Page 14
04	Outlook and Final Remarks	Page 21
05	Appendix	Page 24

Key Highlights

Earnings Release 1H21

Key Highlights Europe Africa Latin America STRONG BACKLOG TURNOVER EBITDA €7.4bn (Record High) €1,138mn (-2% YoY) €181mn (margin 16%) Dec. 2020 Jun. 2021 6.1 7.4 NET PROFIT €8mn (vs. -5mn 1H20) NET DEBT €1,141mn (Net debt/EBITDA 2.7x) 1H20 1H21 1,157 1,138 1H20 1H21 144 181 CAPEX €98mn

Results Overview

Earnings Release 1H21

Net Profit of €8 mn

	1H21	1H20	YoY
P&L (€ mn)
Turnover	1,138	1,157	(2%)
EBITDA	181	144	25%
Margin	16%	12%	4 p.p.
EBIT	68	33	107%
Margin	6%	3%	3 p.p.
Net financial results	(45)	(39)	(15%)
Associates	7	3	116%
Net monetary position1	5	7	(37%)
EBT	35	5	n.m.
Net income	22	10	117%
Attributable to:
Non-controlling interests	14	15	(6%)
Group	8	-5	n.m.

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

• Steady Turnover despite full period with Covid impact
• EBITDA was up 25% YoY to €181 mn driven by better operational efficiency in all regions and one-off effect in E&S
• Net financial results reflected a stable average cost of debt
• Non-controlling interests were related to the businesses in Mexico and E&S
• Net income was up €13 mn to €8 mn

EBITDA up 25% YoY with improved profitability in all regions

	1H21	1H20	YoY
P&L breakdown (€ mn)
Turnover	1,138	1,157	(2%)
Europe	455	456	0%
Africa	325	385	(16%)
Latin America	336	305	10%
Other and intercompany	22	11	98%
EBITDA	181	144	25%
Margin	16%	12%	4 p.p.
Europe	71	48	49%
Margin	16%	10%	6 p.p.
Africa	76	69	9%
Margin	23%	18%	5 p.p.
Latin America	38	27	42%
Margin	11%	9%	2 p.p.
Other and intercompany	(4)	0	n.m.

• Europe showed a resilient operational activity in E&C with a stronger performance in Portugal and higher profitability in all markets, and with E&S with a positive evolution, that overall contributed to a 49% increase in the region´s EBITDA
• Africa´s profitability presented an improvement to 23% in the EBITDA margin, despite the pandemic impact in turnover
• Latin America showed a positive performance in Turnover (+10% YoY) and profitability (+42% EBITDA YoY) mainly driven by Mexico

Record Backlog, up 22% YTD to €7.4 Bn

1 Ratio calculated as follows: E&C Backlog/E&C LTM Turnover.

• Record backlog: €7,394 mn with increasing weight of Long-Term Contracts
• Africa´s backlog growth of €1,515 mn YTD follows the award of the Kano-Maradi railway project (Nigeria) contract
• Increased trend of larger E&C average contract size (Mining, Railway, Roads)
• E&C backlog of €6,954 mn, reflecting a comfortable backlog/sales ratio of 3.9x1
• Mining contract extension (+US\$427 mn) in Mozambique for Vale not included (signed in August)

Major construction projects currently in backlog1

Project	Range (€ mn)	Country	Segment	Exp. Year of Completion
Kano - Maradi railway	> 250	Nigeria	Railway	2025
Tren Maya	> 250	Mexico	Railway	2023
Accra-Tema Motorway	> 250	Ghana	Roads	2025
Vale Mining Moatize	> 250	Mozambique	Mining	2022 2
New Bugesera International Airport	> 250	Rwanda	Airports	2023
Morila Mine	> 250	Mali	Mining	2028
Requalification of the Soyo Naval Base	> 250	Angola	Ports	2024
Gamsberg mine	[200;250[	South Africa	Mining	2029
Talasa hydroelectric facility	[200;250[	Colombia	Power	2025
Siguiri gold mine	[200;250[	Guinea Conakry	Mining	2022
Mandiana gold mine	[200;250[	Guinea Conakry	Mining	2025
Tultepec - Pirámides highway	[150;200[	Mexico	Roads	2023
S19 Lubartów	[150;200[	Poland	Roads	2024
Port of Callao - Phase 2B expansion	[100;150[	Peru	Ports	2023
EN230 road rehabilitation, section 6-10, Muamussanda-Saurimo	[100;150[	Angola	Roads	2022
General Hospital of Cabinda	[100;150[	Angola	Civil Construction	2022
Bordo Poniente landfill	[100;150[	Mexico	Urban	2023

Total capex of €98 mn in 1H21

Guidance of capex FY21 is maintained in the range

€200 mn - €250 mn

Capex was mainly driven by:		Net capex (€ MN)		Capex	in 1H21 by region (€ MN)
	Capex reached €98 mn, mostly related to growth and long term contracts (70% of the total capex)	94	98	26	46	24	2
	Growth and long-term contracts capex were driven by preliminary works related to the initial phase of recent contracts awarded (Mining in Africa and Railway in Mexico) and Energy	33 31	19 44	9	37	7
	E&S capex mainly channeled to EGF in order to comply with the regulator´s approved investment for the current regulatory period (2019-2021)	30 1H20	35 1H21	17 Europe	1 8 Africa	13 4 Latin America	1 1 Others
	Maintenance capex reached c.3% of turnover due to the optimization of planning, procurement and logistics	E&C Capex Capex E&S Capex	contracts1 – long term	Growth Capex	Maintenance – long term	contracts1

¹ Includes mining contracts in Africa and the Energy business in Latin America.

Positive trend in Working Capital evolution

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Working Capital Evolution

-5%

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5%

10%

15%

20%

25%

Downward trend in working capital continues

• Sustainable and positive trend in the working capital management, reflecting alternative solutions developed to reduce financial requirementsfrom the balance sheet in recent years
• Working Capital/Turnover ratio reflected the efficient working capital measuresin place, including:
• i. Higher exposure to private clients (mining and others financed by the client)
• ii. Alignment of the commercial strategy with down payment clauses in the largest contracts (minimizing risk credit exposure)
• iii. Reinforcement of cooperation with multilaterals and ECA´s

Solid Cash Flow Generation

(CFFO of €165 mn, +31% YoY: 1H20 was €126 mn)

¹ Net debt considers Angola's sovereign bonds denominated in US\$, US\$ linked and in kwanzas and Mozambique's sovereign bonds as "cash and cash equivalents" which amounted to €208 mn (€234 mn nominal value) in June 2021 (€199 mn Angola's, Mozambique's and Ivory Coast's sovereign bonds in December 2020).

Net Debt/Ebitda at 2.7x GROSS DEBT MATURITY, JUNE 2021

• Net Debt1 of €1,141 mn, down €102 mn YTD
• Liquidity position of €880 mn corresponds to 1.4x of non-revolving financing needs with maturity lessthan one year
• Leasing & Factoring amounted to €573 mn (of which €341 mn in Leasing), an increase of €47 mn from December 2020
• Average debt maturity of 2.2 years
• Net Debt/Ebitda of 2.7x, recovering the trend of the last years

COST OF DEBT AND NET DEBT/EBITDA

¹ Net debt considers Angola's sovereign bonds denominated in US\$, US\$ linked and in kwanzas and Mozambique's sovereign bonds as "cash and cash equivalents" which amounted to €208 mn (€234 mn nominal value) in June 2021 (€199 mn Angola's, Mozambique's and Ivory Coast's sovereign bonds in December 2020).

Regional Segments

Earnings Release 1H21

Highlights 1H21

5 Countries 455M€ Turnover 1,259M€ Backlog

Portugal Spain Poland Ireland United Kingdom

Stable activity and positive outlook

• European division with a stable evolution in turnover with a positive trend in the E&C Portuguese activity (+8% YoY)
• Focus on the profitability of the E&C business (+63% YoY) with the increase of the average size of contracts contributing to the improvement of profitability
• E&S with an increase in turnover (+16%) and in EBITDA reflecting a better performance in waste treatment, positively impacted by the adjustments that followed the recognition of tariffs from 2019 to 2021 made by the regulator
• Positive outlook in E&C driven by larger tenders with European Union funds committed, to be reinforced by the European Recovery Plan, and by the E&S with the the beginning of a new regulatory period for EGF (2022-2024)
• Outlook 2021: turnover with mid single digit growth and margins above historical levels

Highlights 1H21

14 Countries 325M€ Turnover 4,585M€ Backlog

Angola Mozambique Malawi South Africa Zimbabwe Uganda Rwanda

Guinea-Conakry Cameroon Côte d'Ivoire Kenya Ghana Nigeria Mali

Strong backlog supports growth in the near future

• Turnover evolution impacted by project kick off delays of new projects awarded by public clients (due to higher financial efforts required to contain the pandemic), notwithstanding the execution pace recovery in 2Q21
• Higher profitability with EBITDA reaching a solid 9% growth and margins above guidance (23%)
• Very positive results in the commercial front are reflected in the recent contracts awarded that will start in the 2H21, and that will contribute to a higher production level from 2022 onwards
• Challenging context in some of the main markets (namely Angola) to be compensated by the reinforcement of new long-term contracts with private clients (Mining)
• Pipeline with good perspectives, considering the evolution of commodities and the reinforcement of the capacity to jointly operate globally with CCCC
• Guidance 2021: top-line growth and EBITDA margin in line with guidance of c.20%

Highlights 1H21

6 Countries 336M€ Turnover 1,550M€ Backlog

Mexico Peru Brazil Colombia Dominican Republic Panama

Recovery trend after lockdowns

• Recovery of activity (+10% YoY) in the recent months after long stoppages in 2020 and reaching a stable margin (11%), in line with the historical performance of the region
• Mexico (+57% YoY in turnover), the main market in Latin America, was the main contributor to the overall recovery and offsetting the decrease in other relevant markets such as, Peru and Brazil
• Positive outlook to revamp the commercial activity in 2021-2022, namely in Mexico, driven by the new infrastructure plan (2020-2024) amounting to US\$44 bn (including PPP) and the high price of commodities that could generate new opportunities with the reinforcement of activity in Peru (Mining)
• Diversification strategy ongoing with growing footprint in the energy and road concessions (Mexico) and E&S activities (Brazil)
• Guidance 2021: top-line growth and EBITDA margin c.10%

Outlook and Final Remarks

Earnings Release 1H21

Earnings Release 1H21

Outlook

• Turnover expected to increase high single digit in FY21
• EBITDA margin in line with historical levels and as one of the "best in class" of the Industry
• Backlog to stand above €7 bn, with relevant projectsin pipeline
• Capex remainsin the range of €200 mn-€250 mn
• Focus on organic cash flow generation and debt reduction
• Carry on with the strengthening of the capital structure after the successfulshare capital increase
• Focus on extending debt maturities

Earnings Release 1H21

Final Remarks

• Back to business: Different paces of recovery, but all the regions showed a better operating performance and have a positive outlook, considering the backlog´slevel and quality
• Strategic partnership and investment agreement concluded with CCCC, opening a new cycle to jointly operate globally with one of the major playersin the Industry
• Focus on execution given the backlog record level (€7.4 bn), notwithstanding additional high quality and profitable projects in the pipeline
• Strategic Update to be announced in the 4Q21

Appendix

Earnings Release 1H21

Balance sheet

	Jun.21	Dec.20	∆
Balance sheet (€ mn)
Fixed assets	1,408	1,332	76
Financial investments	380	357	22
Long term receivables	198	186	12
Non-current Assets held for sale (net)	98	97	1
Working capital	10	7	3
	2,094	1,978	115

Equity	323	146	177
Provisions	109	104	6
Long term payables	521	486	35
Net debt	1,141	1,243	(102)
	2,094	1,978	115

Europe performance breakdown

1H21 1H20 YoY

P&L breakdown (€ mn)
Turnover	455	456	0%
E&C	299	322	(7%)
E&S	159	138	16%
Other, elim. and interc.	(2)	(4)	(44%)
EBITDA	71	48	49%
Margin	16%	10%	6 p.p.
E&C	21	13	63%
Margin	7%	4%	3 p.p.
E&S	50	35	44%
Margin	32%	25%	7 p.p.
Other, elim. and interc.	-	-	n.m.

Disclaimer

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.

TURNOVER: corresponds to the consolidated income statement caption "Sales and services rendered".

EBITDA MARGIN: corresponds to the division between the algebraic sum of the following captions of the consolidated income statement "Sales and services rendered"; "Cost of goods sold, mat. cons. and Changes in production"; "Third-party supplies and services"; "Wages and salaries"; "Other operating income / (expenses)" and the TURNOVER.

CAPEX: acquisitions less disposals of tangible, intangible assets and rights of use assets.

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" "Loans without recourse"; "Loans with recourse" and "Other financial investments recorded at amortised cost". Leasing and factoring operations established by the Group are not recorded in the captions aforementioned.

BACKLOG: turnover to be recognised in the future related to projects for which contracts have been signed or awarded.

Europe

Portugal Spain United Kingdom Poland Ireland

Africa

Guinea -Conakry Cameroon Côte d'Ivoire Kenya Ghana Nigeria Mali Angola Mozambique Malawi South Africa Zimbabwe Uganda Rwanda

Latin America

Mexico Peru Brazil Colombia Dominican Republic Panama

Pedro Arrais Head of Investor Relations pedro.arrais@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

www.mota -engil.com