Mota-Engil — Investor Presentation 2019

Mar 1, 2019

01 Key Highlights

Page 3

02 Results Overview

Page 6

03 Regional Segments

Page 16

Europe Africa Latin America

04 Guidance and Final Remarks

Page 23

05 Appendix

Page 26

Europe Africa Latin America

Record backlog €5.5 bn

Resilient EBITDA €409 mn (margin 15%)

2,210 2,597 2,818 2016 2017 2018

Net profit €24 mn

Net debt €953 mn (gearing 2.3x) Capex €287 mn

Delivering our commitments

02 Results Overview

Page 6

Net income up to €24 mn

P&L (€ mn)

	2018	2017	YoY	2H18	YoY
Turnover	2 818 ,	2 597 ,	8%	1 567 ,	12%
EBITDA	409	405	1%	246	11%
Margin	15%	16%	(1 p.p.)	16%	(0 p.p.)
EBIT	202	186	9%	112	22%
Margin	7%	7%	0 p.p.	7%	1 p.p.
financial results Net	(57)	(102)	44%	(52)	6%
Associates	3	3	6%	1	(28%)
position1 Net monetary	(14)	3	n.m.	(14)	n.m.
EBT	135	90	50%	62	(61%)
income Net	93	61	52%	52	(139%)
Attributable to:
Non-controlling interests	70	60	17%	35	38%
Group	24	2	n.m.	18	n.m.

• Turnover reached €2,818 mn with all regions presenting a positive trend
• Strong EBITDA margin of 15%, mainly driven by Africa an Latin America
• Net financial results reflect positive forex impact
• Effective tax rate of 31%
• Net income improvement was mainly driven by businesses without minorities
• IAS 29 had a negative impact of €7 mn in EBITDA and €15 mn in net income

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

EBITDA with continued growth reaching €409 mn

P&L breakdown (€ mn)

	2018	2017	YoY	2H18	YoY
Turnover	2 818 ,	2 597 ,	8%	1 567 ,	12%
Europe	856	828	3%	450	1%
Africa	908	860	5%	546	7%
Latin America	1 084 ,	960	13%	597	22%
Other and intercompany	(29)	(51)	42%	(27)	44%
EBITDA	409	405	1%	246	11%
Margin	15%	16%	(1 p.p.)	16%	(0 p.p.)
Europe	72	141	(49%)	25	(74%)
Margin	8%	17%	(9 p.p.)	6%	(16 p.p.)
Africa	194	164	18%	111	30%
Margin	21%	19%	2 p.p.	20%	3 p.p.
Latin America	140	109	28%	98	19%
Margin	13%	11%	2 p.p.	16%	(0 p.p.)
Other and intercompany	3	(10)	n.m.	(2)	77%

• Europe turnover reflects stable activity, notwithstanding lower profitability
• Africa 2H18 activity showed a strong acceleration, a trend that is expected to continue in 2019
• Africa EBITDA margin increased to 21% (up 2p.p. YoY) with a balanced contribution from the main markets
• Turnover in Latin America benefited from good project execution pace which led to a double digit growth (13% YoY) with increase in EBITDA margin

Waste business: relevant and stable contribution from all regions

8 countries

Angola Brazil Cape Verde Ivory Coast Mexico Mozambique Oman Portugal

Milestones

1995 - Start of operations (waste collection)

2008 - Beginning of internationalisation (to Angola)

2014 - Acquisition of EGF (waste management)

2018 - Start of operations of the waste collection (€320 mn) and the waste management (€140 mn) contracts in Ivory Coast

Record backlog of €5.5 bn

• Backlog up €327 mn in 2018 to €5.5 bn, of which 87% relates to the construction activity
• E&C backlog to sales¹ ratio of 2.1x
• Strong commercial perspectives for 2019, namely in the main markets such as, Portugal, Mozambique, Angola, Brazil and Colombia

Major construction projects currently in backlog

1 Project	(€ mn) Range	Country	Segment	of Exp Year Completion
Vale Mining Moatize	250 >	Mozambique	Mining	2022
Canal highway Gran	250 >	Mexico	Roads	2019
Cafetero - Pacific; Cafetero - Pacific Classes: Caribbean; Eje Antioquia - Eje G1 G2 G3	250 >	Colombia	Civil Construction	2020
(phase execution) Bambas dam under Las 4	[200;250]	Peru	Power	2020
Cardel-Poza highway Rica	[200;250]	Mexico	Roads	2019
highway Tuxpan-Tampico	[200;250]	Mexico	Roads	2019
highway dualisation (section and 7) BR-381 3 1 section	[200;250]	Brazil	Roads	2020
gold Siguiri mine	[150;200[	Conakry Guinea	Mining	2022
of General Hospital Cabinda	[100;150[	Angola	Civil Construction	2020
Capacity Kampala Northern Improvement Bypass	[100;150[	Uganda	Roads	2021
Mall Fourways Extensions	[100;150[	South Africa	Civil Construction	2019
Bordo Poniente	[100;150[	Mexico	Urban Infrastructures	2020
Offshore platform - operational unit Rio Section B	[100;150[	Brazil	Oil&Gas	2022

Total capex of €287 mn

• Africa accounted for 65% of the total capex, including c.€101 mn of equipment related with long-term mining projects
• E&S capex of €104 mn was mainly channelled to EGF, Vista Waste (Angola) and the waste activity in Ivory Coast
• Relevant part of the capex was financed through leasing, which accounted for c.€140 mn
• Maintenance capex stood at 4% of turnover

Net capex (€ mn) Capex in 2018 by region (€ mn)

¹E&S includes the energy business.

Working capital to Turnover ratio stable at 7%

Working capital evolution

• Working capital at €199 mn, reflecting the acceleration of activity in 2018
• The Working capital/Turnover ratio stood in a very comfortable level (7%)
• Focus on structuring the contracts with the aim of minimising the receivables payment period and credit risk exposure
• Establishment of agreements and cooperation with multilaterals, ECAs and pre-payments (for large contracts) are critical to reach that goal

Solid CFFO of €346 mn

Free cash flow (€ mn)

¹Net debt considers Angola's sovereign bonds denominated in US\$ and US\$ linked as "cash and cash equivalents" which amounted to €152 mn in December 2018 and €156 mn in December 2017 and Malawi's sovereign bonds amounting to €14 mn in December 2018.

Stable gearing at 2.3x

• Net debt¹ of €953 mn
• Leasing amounted to €266 mn, up €101 mn in 2018, of which €97 mn related to long-term mining contracts
• Cost of debt of 5.0%, down from 5.6% in December 2017
• Average debt life of 2.3 years, impacted by the successful €110 mn bond issue in November 2018
• The net debt increase amounted to c.40% of the capex not financed through leasing

Gross debt maturity²

, December 2018 (€ mn) Cost of debt and gearing³

¹Excluding leasing and factoring amounting to €266 mn and €120 mn, respectively, and including €152 mn of Angolan sovereign bonds and €14 mn of Malawi'ssovereign bonds; 2Excluding leasing and factoring; ³Net debt/EBITDA.

03 Regional Segments

Page 16

Europe Africa Latin America

Portuguese E&C with a positive outlook

Luz Hospital project, Portugal

• Europe backlog of €1.2 bn of which c.40% in Portugal
• Portuguese Government infrastructure plans expected to boost activity, namely:
• New Lisbon International Airport expansion of the existing infrastructure and construction of a new airport in the south margin worth €1.15 bn (excluding access roads)
• Railway Plan 2020 (c.€3 bn) Sines/Badajoz (largest contract)
• New Hospitals (c.€1 bn), of which the Lisbon Hospital, PPP (30 years) worth c.€335 mn and new Madeira Hospital worth c.€200 mn
• Metro expansion Lisbon (c.€310 mn) and Oporto (c.€210 mn)
• EGF: regulatory framework already approved for 2019-2021 with a RAB of €319 mn and an average ROA of 5.29% (vs €246 mn and 6.14%, respectively in the previous period)
• EGF: for the same period, capex of €195 mn, partially financed by European multilaterals

Record backlog and positive commercial perspetives

• Backlog of €2.8 bn of which 90% in hard currency or hard currency linked
• Pure private clients account for c.40% of total backlog
• Angola's strong backlog of c.€850 mn
• Long-term mining (Mozambique and Guinea Conakry) contracts assure predictable activity and cash flow
• 2019 will be the first full year of activity of the waste contract operation in Ivory Coast (seven year contract worth €320 mn)
• Several projects in the pipeline with awards expected for 2019, namely in Mozambique and Angola

Strong performance

Gran Canal road project, Mexico

• Backlog of €1.5 bn spread among six countries with Mexico and Brazil representing c.55%
• Entry in 2018 in the Oil&Gas segment in Brazil with contracts worth c.€150 mn with Petrobras
• Expected higher contribution from Colombia related to a significant schools construction contract
• Expected monetisation of assets in Mexico related with the CERPI fund
• The pipeline is attractive and awards are expected to take place in several countries such as, Brazil and Colombia
• Energy business expected to continue delivering with strong profitability

04 Guidance and Final Remarks

Page 23

Guidance 2019

• Turnover expected to grow, with Africa increasing its contribution
• EBITDA margin to remain in line with historical levels
• Backlog to stand above €5 bn
• Capex to be in the range of €150 mn-€180 mn
• Focus on organic cash flow generation with a continued emphasis on working capital
• Carry on with the strengthening of the capital structure and debt maturities extension

Final remarks

• 2018: record year for backlog and turnover
• Net debt and working capital remained at comfortable levels
• Dividend payment to resume in 2018 in line with payout policy (50%-75%)
• Positive outlook for 2019, mainly in markets such as, Portugal, Brazil, Angola and Mozambique

05 Appendix

Page 26

Balance sheet

Balance sheet (€ mn)

	Dec 18	Jun 18	Dec 17	Dec 18 - Dec 17
Fixed assets	1 298	1 251	1 263	35
Financial investments	, 294	, 270	, 233	61
receivables Long term	117	121	140	(23)
for (net) held sale Non-current Assets	100	92	91	9
Working capital	199	221	177	22
	2 009 ,	1 955 ,	1 905 ,	105
Equity	440	490	596	(155)
Provisions	108	95	96	12
payables Long term	508	369	335	172
1 debt Net	953	1 002 ,	877	76
	2 009 ,	955 1 ,	905 1 ,	105

¹Net debt considers Angola's and Malawi's sovereign bonds as "cash and cash equivalents".

Europe performance breakdown

Key financials (€ mn)

	2018	2017	YoY	2H18	YoY
Turnover	856	828	3%	450	1%
E&C	571	538	6%	341	15%
E&S	298	296	1%	145	14%
Other elim and interc ,	(13)	(7)	(81%)	(11)	(87%)
EBITDA	72	141	(49%)	25	(74%)
Margin	8%	17%	(9 p.p.)	6%	(16 p.p.)
E&C	(10)	46	n m	(11)	n m
Margin	(2%)	9%	(11 ) p p	(3%)	(21 ) p p
E&S	84	97	(13%)	37	(19%)
Margin	28%	33%	(5 ) p p	26%	(10 ) p p
Other elim and interc ,	(2)	(2)	(2%)	(1)	(28%)

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.

PEDRO ARRAIS Director, 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