BUILDING
with PURPOSE
TRADING UPDATE
NINE MONTHS 2024
19 November 2024
FUTURE LISBON HOSPITAL
TABLE OF CONTENTS
01 Key Highlights | Page 3 |
02 Final Remarks and Outlook | Page 9 |
TRADING UPDATE 9M24
2
TRADING UPDATE 9M24
3
TRADING UPDATE 9M24
KEY HIGHLIGHTS
Main events since June 2024
LATIN AMERICA
MEXICO
- US$1.2 bn: agreement with Pemex for a fertilizer plant
- Launch of the Train Maya, now fully operational
- Sale of the Cardel-Poza Rica concession (28.73%) for a Price/Book Value of 1.85x, completed in November 2024
AFRICA
GUINEA
- US$290 mn: Industrial Engineering/Contract Mining project extension with Managem Group
MOZAMBIQUE
- US$576 mn: Industrial Engineering/Contract Mining project extension with Vulcan
RWANDA
- C.US$500 mn: Bugesera International Airport - Work stream 2 with Qatar Airways awarded in November 2024
IVORY COAST MALI ETHIOPIA
- US$1.4 bn: Industrial Engineering/Contract Mining projects with Allied Gold awarded in November 2024
EUROPE
PORTUGAL
-
Award of the 1st stretch of the High-Speed
Train (c.€2 bn for 100% of the project) - €340 mn: official launch of the new Lisbon Hospital (Hospital de Todos os Santos)
POLAND
- Sale of E&C and Real Estate activities completed in September 2024
SPAIN
- Acquisition of a 24% stake in REMO mobility, through ME Renewing, completed in November 2024
Recent recognitions:
Sustainability as a priority:
TOP 10 IN LATAM | TOP 10 IN AFRICA | TOP 15 IN EUROPE | FIRST REPORT | SUSTAINABILITY-LINKED BONDS |
#2 IN THE REGION | #8 IN THE REGION | #14 IN THE REGION | TO CDP | €80 mn: Strong demand (1.73x Initial Offer) |
4 |
TRADING UPDATE 9M24
KEY HIGHLIGHTS
Key Highlights
BACKLOG | TURNOVER | EBITDA | NET PROFIT1 | |||||
€14.8bn | € | mn | €609mn | €77mn | ||||
4,146 | (+11% YoY; 15% margin) | (+51% YoY) | ||||||
(+14% YTD) | (+3% YoY) | |||||||
14,764 | 4,015 | 4,146 | 609 | 77 | ||||
551 | ||||||||
12,936 | ||||||||
51 | ||||||||
Dec.23 | Sep.24 | 9M23 | 9M24 | 9M23 | 9M24 | 9M23 | 9M24 | |
NET DEBT/EBITDA | GROSS DEBT2/EBITDA |
<2x <4x
1Group Net Profit (after non-controlling interests).
2Includes leasing, factoring and confirming. | 5 |
TRADING UPDATE 9M24
KEY HIGHLIGHTS
Solid activity with better profitability
▪
9M24 %T 9M23 %T YoY
Turnover (T) | 4 146 | 4 015 | 3% | ▪ | ||||
Engineering&Construction | 3 675 | 3 524 | 4% | |||||
Europe | 457 | 498 | (8%) | |||||
Africa | 1 027 | 1 056 | (3%) | |||||
E&C | 745 | 785 | (5%) | |||||
Industrial Engineering | 283 | 271 | 4% | |||||
Latin America | 2 197 | 1 975 | 11% | |||||
E&C | 1 875 | 1 492 | 26% | |||||
Energy and Concessions | 322 | 483 | (33%) | ▪ | ||||
Other and intercompany | (6) | (5) | (34%) | |||||
Environment | 405 | 452 | (10%) | |||||
Capital and MEXT | 109 | 96 | 13% | |||||
Other and intercompany | (43) | (57) | 25% | ▪ | ||||
EBITDA | 609 | 15% | 551 | 14% | 11% | |||
Engineering&Construction | 519 | 14% | 461 | 13% | 13% | |||
Europe | 34 | 7% | 31 | 6% | 9% | |||
Africa | 251 | 24% | 218 | 21% | 15% | |||
E&C | 167 | 22% | 143 | 18% | 17% | |||
Industrial Engineering | 84 | 30% | 75 | 28% | 12% | ▪ | ||
Latin America | 234 | 11% | 211 | 11% | 11% | |||
E&C | 203 | 11% | 188 | 13% | 8% | |||
Energy and Concessions | 31 | 9% | 23 | 5% | 34% | |||
Other and intercompany | 0 | - | 0 | - | n.m. | |||
Environment | 86 | 21% | 88 | 19% | (2%) | |||
Capital and MEXT | 4 | 4% | 6 | 6% | (31%) | ▪ | ||
Other and intercompany | 0 | - | (4) | - | n.m. |
Turnover up 3% YoY to €4,146 mn with a robust EBITDA growth of 11%
YoY to €609 mn, leading to a profitability improvement to 15%, up 1 p.p. YoY
E&C revenues increased by 4% YoY to €3,675 mn, mainly driven by the performance in Latin America, whereas turnover in Europe was impacted by the activity reduction in Poland (still consolidated in September 2024) and in Africa by the initial execution phase of large projects that started in the first half of the year and will have greater contributions in the last months of the year
E&C EBITDA increased 13% YoY to €519 mn with a margin improvement to 14%, supported by better performance in Europe but mainly in Africa, while Latin America showed stable profitability
Industrial Engineering with 8 ongoing projects showed a turnover of €283 mn, an increase of 4% YoY with a robust margin of 30% (+2 p.p. YoY), thus also contributing to the overall improvement of Africa's margin, in addition to that observed in E&C also in the region
Environment business unit turnover reached €405 mn, down 10% YoY,
but with a solid profitability of 21% (up 2 p.p. YoY), with revenues being impacted by the absence in 2024 of the Used Mineral Oils recycling business contribution, sold in 2023
Capital and MEXT turnover reached €109 mn, up 13% YoY with an
EBITDA of €4 mn | 6 |
TRADING UPDATE 9M24
KEY HIGHLIGHTS
Backlog1 reached a new high of €14.8 bn
Backlog evolution (€ mn) | Backlog by Business Unit | E&C backlog by segment | ||||||||||||||||||||||||||||||
E&C backlog | ENVIRONMENT | 2% | 33% | |||||||||||||||||||||||||||||
36% | ||||||||||||||||||||||||||||||||
+ CAPITAL and MEXT | ||||||||||||||||||||||||||||||||
Environment + Capital backlog | 14,764 | |||||||||||||||||||||||||||||||
13,723 | ||||||||||||||||||||||||||||||||
RAILWAY | ||||||||||||||||||||||||||||||||
12,556 | 12,936 | ROADS | ||||||||||||||||||||||||||||||
356 | ||||||||||||||||||||||||||||||||
355 | AND OTHERS | |||||||||||||||||||||||||||||||
380 | ||||||||||||||||||||||||||||||||
451 | 14,764 mn | 14,408 mn | ||||||||||||||||||||||||||||||
30% | 61% | |||||||||||||||||||||||||||||||
13,369 | 14,408 | 12% | ||||||||||||||||||||||||||||||
12,115 | 12,556 | |||||||||||||||||||||||||||||||
LATIN | AFRICA | |||||||||||||||||||||||||||||||
AMERICA | 19% | CIVIL | ||||||||||||||||||||||||||||||
7% | CONSTRUCTION | |||||||||||||||||||||||||||||||
INDUSTRIAL | ||||||||||||||||||||||||||||||||
EUROPE | ||||||||||||||||||||||||||||||||
Dec.22 | Dec.23 | Jun.24 | Sep.24 | |||||||||||||||||||||||||||||
ENGINEERING |
- Record backlog of €14.8 bn with an order intake of €5.5 bn YTD, driven by the award of large projects in core markets
- Core markets represent 78%, with Mexico representing 23%, followed by Angola with 22% and Nigeria with 15%
- The backlog supports a positive outlook for future activity and profitability with a comfortable E&C Backlog/TurnoverLTM ratio of 2.8 years
- Backlog does not yet include the first section of the High-Speed Train project (Porto-Oiã) in Portugal, nor the new Industrial Engineering contracts in Ivory Coast, Mali, and Ethiopia for the client Allied Gold
- Several other projects in the pipeline, mainly projects related to the railway segment such as, the second section of the Portugal High-Speed Train, to be tendered in January 2025
1Not considering revenues from concession contracts (highways and waste treatment). | 7 |
TRADING UPDATE 9M24
KEY HIGHLIGHTS
Major construction projects currently in backlog1
Project | Range | Country | Segment | Exp. Year of | Customer | ||||||
(€ mn) | Completion | ||||||||||
Kano - Maradi / Kano Dutse | > 1000 | Nigeria | Railway Infrastructures | 2025 | Federal Ministry of Transportation | ||||||
Fertilizer industrial plant | > 1000 | Mexico | Civil Construction | 2044 | Petróleos Mexicanos - PEMEX | ||||||
Maintenance Contract - Lobito Corridor | [500,1000[ | Angola | Railway Infrastructures | 2054 | Lobito Atlantic Railway - LAR | ||||||
Kano-Maradi-Dutse project - Rolling stock | [500,1000[ | Nigeria | Railway Infrastructures | 2025 | Federal Ministry of Transportation | ||||||
Zenza do Itombe- Cacuso railway | [500,1000[ | Angola | Railway Infrastructures | 2028 | Ministry of Transportation | ||||||
Infrastructures of the Corimba waterfront | [500,1000[ | Angola | Road Infrastructure | 2028 | Ministry of Public Works, Urbanism and Housing | ||||||
Gamsberg Mine | [500,1000[ | South Africa | Industrial Engineering | 2030 | Vedanta Zinc International | ||||||
Vale Mining Moatize | [500,1000[ | Mozambique | Industrial Engineering | 2027 | Vulcan S.A. | ||||||
Monterrey Subway L4, 5 y 6 | [500,1000[ | Mexico | Railway Infrastructures | 2027 | Gobierno del Estado de Nuevo Leon | ||||||
Lafigué Mine | [300,500[ | Ivory Coast | Industrial Engineering | 2028 | Endeavour Mining PLC | ||||||
Boto Gold Mine | [300,500[ | Senegal | Industrial Engineering | 2029 | Managem Group | ||||||
TRI-K Gold Mine | [300,500[ | Guinea | Industrial Engineering | 2029 | Managem Group | ||||||
HLO - Oriental Lisbon Hospital | [300,500[ | Portugal | Civil Construction | 2027 | HLO - Sociedade Gestora do Edifício, S.A. | ||||||
Cabinda-Miconje rehabilitation | [200,300[ | Angola | Road Infrastructure | 2026 | Ministry of Public Works, Urbanism and Housing | ||||||
Autopista Tultepec - Pirámides | [200,300[ | Mexico | Road Infrastructure | 2027 | Concesionaria Tultepec-AIFA-Pirámides | ||||||
Highways "Lagos-Badagry-Seme" and "Shagamu-Benin" | [200,300[ | Nigeria | Road Infrastructure | 2027 | Federal Ministry of Transportation | ||||||
Simandou project - Earthworks | [200,300[ | Guinea | Civil Construction | 2026 | Rio Tinto Iron Ore Atlantic Ltd | ||||||
Extension of the red line Lisbon subway | [200,300[ | Portugal | Railway Infrastructures | 2026 | Metropolitano de Lisboa EP | ||||||
Consorcio Metro 80 Medellin | [200,300[ | Colombia | Railway Infrastructures | 2026 | EMP - Empresa Metro de Medellin | ||||||
1Selection of E&C projects above €200 mn and with c.17 projects above €100 mn. | 8 |
02
FINAL REMARKS
AND OUTLOOK
TRADING UPDATE 9M24
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TRADING UPDATE 9M24
FINAL REMARKS AND OUTLOOK
Final Remarks and Outlook
On track to reach 2026 strategic targets
Focus on performance improvement and return on capital to strengthen cash
conversion
E&C backlog supports 82% of the 2026 E&C turnover target
Mota-Engil is committed to ESG targets,
strengthening ESG disclosure with 2024 being the first year that Mota-Engil reports to CDP
Guidance 2024
Turnover growth on the right track to reach 2026 target
EBITDA margin gradually improving towards the 2026 goal
Asset rotation in road concessions ongoing
throughout 2024, with the sale of Cardel Poza-Rica (28.73%) recently completed for a BV of 1.85x
Final Remarks
Solid activity with focus on profitability
Record backlog (€14.8 bn) with sizeable projects and focused on core markets
Net debt/EBITDA < 2x in line with strategic goals
Towards sustainable growth, cash generation and shareholder remuneration
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