BUILDING with PURPOSE
TRADING UPDATE
FIRST QUARTER 2024
21 May 2024
PLANETPEOPLE COMMUNITY
TABLE OF CONTENTS
01 Key Highlights | Page 3 |
02 Final Remarks and Outlook | Page 8 |
TRADING UPDATE 1Q24
2
TRADING UPDATE 1Q24
3
TRADING UPDATE 1Q24
KEY HIGHLIGHTS
Key Highlights
BACKLOG | TURNOVER | EBITDA |
€14bn | €1,352mn | €196mn |
(+7% YoY) | (+22% YoY; 15% margin) |
1,352 | ||||||||||
14,213 | ||||||||||
12,936 | 196 | |||||||||
1,262 | ||||||||||
161 | ||||||||||
Dec.23 | Mar.24 | 1Q23 | 1Q24 | 1Q23 | 1Q24 |
NET PROFIT1
€20mn
(+54% YoY; 1.5% margin)
20
13
1Q231Q24
NET DEBT/EBITDA | GROSS DEBT/EBITDA |
<2x | <4x |
1Group Net Profit (after non-controlling interests). | 4 |
TRADING UPDATE 1Q24
KEY HIGHLIGHTS
Resilient turnover growth and profitability
1Q24 | %T | 1Q23 | %T | YoY |
Turnover (T) | 1,352 | 1,262 | 7% | ||
Engineering&Construction | 1,210 | 1,121 | 8% | ||
Europe | 141 | 134 | 5% | ||
Africa | 356 | 334 | 6% | ||
E&C | 270 | 244 | 11% | ||
Industrial Engineering | 85 | 90 | (5%) | ||
Latin America | 713 | 656 | 9% | ||
E&C | 596 | 544 | 10% | ||
Energy and Concessions | 117 | 112 | 5% | ||
Other and intercompany | (0) | (3) | 95% | ||
Environment | 130 | 126 | 3% | ||
Capital and MEXT | 32 | 31 | 1% | ||
Other and intercompany | (20) | (16) | (19%) | ||
EBITDA | 196 | 15% | 161 | 13% | 22% |
Engineering&Construction | 167 | 14% | 135 | 12% | 23% |
Europe | 10 | 7% | 7 | 5% | 48% |
Africa | 76 | 21% | 69 | 21% | 10% |
E&C | 55 | 20% | 47 | 19% | 17% |
Industrial Engineering | 21 | 25% | 22 | 24% | (5%) |
Latin America | 81 | 11% | 60 | 9% | 34% |
E&C | 75 | 13% | 56 | 10% | 33% |
Energy and Concessions | 6 | 5% | 4 | 3% | 54% |
Other and intercompany | 0 | - | 0 | - | - |
Environment | 27 | 21% | 25 | 20% | 7% |
Capital and MEXT | 3 | 8% | 2 | 6% | 48% |
Other and intercompany | 0 | - | 0 | - | n.m. |
- Turnover up 7% YoY to €1,352 mn and EBITDA up 22% YoY to €196 mn, driven by better profitability in all business segments
- E&C top-line up 8% YoY to €1,210 mn, maintaining a resilient growth rate, despite the already strong activity of the previous periods, and with all the regions showing a positive performance
- E&C EBITDA increased 23% YoY to €167 mn, reflecting a margin of 14% and better profitability in all regions
- Environment turnover reached €130 mn, up 3% YoY with EBITDA of €27 mn, representing a profitability of 21%
- Capital & MEXT turnover reached €32 mn and EBITDA was €3 mn
5
TRADING UPDATE 1Q24
KEY HIGHLIGHTS
Backlog1 up €1.3 bn in 1Q24 to €14 bn, reaching a new high
Backlog evolution (€ mn)
E&C backlog
Environment + Capital backlog
14,213
12,556 12,936 379
451 380
7,553
388 12,115 12,556 13.834
7,165
Dec.21 Dec.22 Dec.23 Mar.24
Backlog by Business Unit | E&C backlog by segment | ||||||||||||||||||
ENVIRONMENT | 3% | 42% | |||||||||||||||||
35% | |||||||||||||||||||
+ CAPITAL&MEXT | |||||||||||||||||||
RAILWAY | |||||||||||||||||||
ROADS | |||||||||||||||||||
AND OTHERS | |||||||||||||||||||
30% | 60% | ||||||||||||||||||
6% | |||||||||||||||||||
LATIN | AFRICA | ||||||||||||||||||
AMERICA | 17% | CIVIL | |||||||||||||||||
7% | CONSTRUCTION | ||||||||||||||||||
INDUSTRIAL | |||||||||||||||||||
EUROPE | |||||||||||||||||||
ENGINEERING |
- Successful commercial strategy has driven to a new record backlog of €14 bn, with €2.6 bn awarded in 1Q24, largely fuelled by major E&C projects in Africa
- Core Markets represents 77%, with Angola representing 24%, followed by Mexico with 20% and Nigeria with 16%
- The backlog bodes well for a positive revenue stream in 2024 and reflects a comfortable E&C Backlog/RevenueLTM ratio of 2.8 years
- Poland no longer included in backlog following the sale agreement of Poland's operations (€305 mn in Dec.2023)
1Not considering revenues from concession contracts (highways and waste treatment). | 6 |
TRADING UPDATE 1Q24
KEY HIGHLIGHTS
Major construction projects currently in backlog1
Project | Range | Country | Segment | Exp. Year of | Customer |
(€ mn) | Completion | ||||
Kano - Maradi / Kano Dutse | > 1,000 | Nigeria | Railway Infrastructures | 2025 | Federal Ministry of Transportation |
Lobito Concession Maintenance - Angola | [500,1000[ | Angola | Railway Infrastructures | 2054 | Concessionária do Corredor de Lobito |
Nigéria - rolling stock (Kano-Maradi-Dutse project) | [500,1000[ | Nigeria | Railway Infrastructures | 2026 | Federal Ministry of Transportation |
Metro Monterrey L4, 5 y 6 | [500,1000[ | Mexico | Railway Infrastructures | 2027 | Gobierno del Edo de Nuevo Leon |
Zenza do Itombe- Cacuso railway | [500,1000[ | Angola | Railway Infrastructures | 2028 | Ministério dos Transportes |
Gamsberg Mine | [500,1000[ | South Africa | Industrial Engineering | 2030 | Vedanta Zinc International |
Infrastructures of the Corimba waterfront | [500,1000[ | Angola | Urban Infrastructures | 2027 | Ministério das Obras Públicas, Urbanismo e Habitação |
Tren Maya Tulum-Akumal | [300,500[ | Mexico | Railway Infrastructures | 2024 | Fonatur |
Lafigué Mine | [300,500[ | Ivory Coast | Industrial Engineering | 2028 | Endeavour Mining PLC |
Boto Gold Mine | [300,500[ | Senegal | Industrial Engineering | 2029 | Managem Group |
Eastern Lisbon Hospital | [300,500[ | Portugal | Civil Construction | 2027 | HLO - Sociedade Gestora do Edifício, S.A. |
Autopista Tultepec - Pirámides | [300,500[ | Mexico | Road Infrastructure | 2026 | Concesionaria Tultepec-AIFA-Pirámides |
Cabinda-Miconje rehabilitation | [200,300[ | Angola | Road Infrastructure | 2026 | Ministério das Obras Públicas e Ordenamento do Território |
Simandou project - land movement | [200,300[ | Guinea | Civil Construction | 2026 | Rio Tinto Iron Ore Atlantic Ltd |
Consorcio Metro 80 Medellin | [200,300[ | Colombia | Railway Infrastructures | 2026 | EMP - Empresa Metro de Medellin |
Highways "Lagos-Badagry-Seme" and "Shagamu-Benin" | [200,300[ | Nigeria | Road Infrastructure | 2027 | Federal Ministry of Works and Housing |
Extension of the red line Lisbon subway | [200,300[ | Portugal | Railway Infrastructures | 2026 | Metropolitano de Lisboa EP |
Extensión Gran Canal | [200,300[ | Mexico | Road Infrastructure | 2026 | Constructora Gran Canal |
Rehabilitation of the general infrastructures of the Nova Vida urbanization | [200,300[ | Angola | Urban Infrastructures | 2026 | Ministério das Obras Públicas, Urbanismo e Habitação |
1Selection of E&C projects above €200 mn and with c.20 projects above €100 mn. | 7 |
02
FINAL REMARKS
AND OUTLOOK
TRADING UPDATE 1Q24
8
TRADING UPDATE 1Q24
FINAL REMARKS AND OUTLOOK
Final Remarks and Outlook
▪ Solid operational performance with improved profitability
- Record backlog (€14 bn) that anticipates good visibility on future revenues
Final remarks
- Net debt/EBITDA < 2x and Gross debt/EBITDA < 4x, in line with strategic goals
▪ Turnover growth paving the way to reach 2026 target
- EBITDA margin gradually improving towards the 2026 goal
2024 Guidance maintained
- Focus on order intake with selective criteria towards large projects
- Asset rotation in road concessions to be pursued throughout 2024
Path towards 2026 targets
- Mota-Engilstands in an outstanding position to succeed towards 2026
- Large projects in backlog and pipeline reassure the achievement of 2026 operational goals
- Focus on cash conversion being key to reach financial targets
- Management focus on actions and policies in place aligned with SDGs and towards ESG targets
9
TRADING UPDATE 1Q24
GLOSSARY
GLOSSARY
- "Mota-Engil" means Mota-Engil, SGPS, SA, the Holding company with controlling interest in other companies, which are called subsidiaries;
- "Backlog" means the amount of contracts awarded and signed to be executed;
- "EBITDA" corresponds to the algebraic sum of the following captions of the consolidated income statement by natures: "Sales and services rendered", "Cost of goods sold, materials consumed and Changes in production", "Third-party supplies and services", "Wages and salaries" and "Other operating income / (expenses)";
- "EBITDA margin" or "(EBITDA Mg)" means the ratio between EBITDA and "Sales and services rendered";
- "Gross debt" corresponds to the algebraic sum of net debt with the
•
•
balances 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", "Other financial applications"; "Other financial investments recorded at amortised cost"; "Lease liabilities" and "Other financial liabilities";
"LTM". Last Twelve Months;
"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", "Other financial applications", "Other financial investments recorded at amortised cost", "Loans without recourse" and "Loans with recourse";
- "Net profit" corresponds to the caption of the consolidated income statement by natures of "Consolidated net profit of the period - Attributable to the Group";
- "Turnover" or "Revenue(s)" or "Sales" corresponds to the caption of the consolidated income statement by natures of "Sales and services rendered".
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