Interim Consolidated Financial Information 2024 1
Interim Consolidated Management
Report 2024
BUILDING
with PURPOSE
RELATÓRIO ÚNICO 2023
Highlights
-
13.7
Billion Euro
BACKLOG OF 13.7 BILLION EURO, AN
INCREASE OF 6% YTD
396
Million Euro
EBITDA OF 396 MILLION EURO, AN
INCREASE OF 12% YOY, WITH A MARGIN
OF 15%
1,268
Million Euro
NET DEBT OF 1,268 MILLION EURO,
WITH A NET DEBT / EBITDA RATIO OF 1.4X
309
Million Euro
CAPEX OF 309 MILLION EURO, OF
WHICH 80% FROM GROWTH AND
MEDIUM AND LONG-TERM
CONTRACTS
2,732
Million Euro
TURNOVER OF 2,732
MILLION EURO, AN INCREASE
OF 7% YOY
49
Million Euro
CONSOLIDATED NET PROFIT ATTRIBUTABLE TO THE GROUP OF 49 MILLION EURO, AN INCREASE OF 65% YOY, WITH A MARGIN OF 2%
2,784
Million Euro
GROSS DEBT1) OF 2,784 MILLION EURO,
WITH A GROSS DEBT1) / EBITDA RATIO
OF 3.2X
744
Million Euro
EQUITY OF 744 MILILION EURO, AN INCREASE OF 239 MILLION EURO YOY, WITH AN EQUITY / ASSETS RATIO OF 10%
1) Gross debt added by factoring, suppliers payment management operations, as well as leasing operatons.
INTERIM CONSOLIDATED MANAGEMENT REPORT 2024
3
Income Statement
Thousand euros
1H24 | % T | ∆ | 1H23 | % T | |||
Sales and services rendered (Turnover - T) | 2,732,346 | 6.8% | 2,557,800 | ||||
EBITDA (*) | 396,345 | 14.5% | 12.5% | 352,317 | 13.8% | ||
Amortizations and depreciations, impairment losses | -159,673 | (5.8%) | (14.3%) | -139,690 | (5.5%) | ||
and provisions | |||||||
EBIT (**) | 236,672 | 8.7% | 11.3% | 212,627 | 8.3% | ||
Net financial results (***) | -95,001 | (3.5%) | (15.1%) | -82,570 | (3.2%) | ||
Gains / (losses) in associates and joint ventures | 2,952 | 0.1% | (60.6%) | 7,501 | 0.3% | ||
Gains / (losses) on the acquisition and disposal of | 22,246 | 0.8% | - | 0 | 0.0% | ||
subsidiaries, joint ventures and associated companies | |||||||
Net monetary position | 0 | 0.0% | (100.0%) | 3,368 | 0.1% | ||
Income before taxes | 166,870 | 6.1% | 18.4% | 140,925 | 5.5% | ||
Consolidated net profit of the period | 118,352 | 4.3% | 35.4% | 87,427 | 3.4% | ||
Attributable to: | |||||||
Non-controlling interests | 69,016 | 2.5% | 19.8% | 57,586 | 2.3% | ||
Group | 49,336 | 1.8% | 65.3% | 29,841 | 1.2% | ||
- 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)"
- EBIT corresponds to the algebraic sum of EBITDA with the following captions of the consolidated income statement by natures: "Amortizations and depreciations", "Impairment losses" and "Provisions"
- Net financial results corresponds to the algebraic sum of the following captions of the consolidated income statement by natures: "Financial income and gains" and "Financial costs and losses"
TABLE OF CONTENTS
1. INTERIM CONSOLIDATED MANAGEMENT REPORT
1.1 | Economic and financial environment | 06 |
1.2 | Analysis of the economic and financial performance | 07 |
1.3 | Analysis by business unit | 14 |
1.4 | Sustainability and social responsability | 20 |
1.5 | Mota-Engil in Stock Market | 24 |
1.6 | Outlook | 25 |
1.7 | Relevant facts after the end of the period | 26 |
2. INTERIM CONSOLIDATED FINANCIAL INFORMATION
2.1 | Consolidated income statements by natures | 28 |
2.2 | Consolidated statements of other comprehensive income | 29 |
2.3 | Consolidated statements of financial position | 30 |
2.4 | Consolidated statements of changes in equity | 31 |
2.5 | Consolidated statements of cash-flows | 32 |
2.6 | Notes to the consolidated financial statements | 33 |
2.7 | Appendix A | 51 |
3. MANDATORY INFORMATION | 63 | |
1. INTERIM CONSOLIDATED MANAGEMENT REPORT
INTERIM CONSOLIDATED MANAGEMENT REPORT 2024
6
1.1 Economic and financial environment
In the first half of 2024, the global economy faced a series of challenges and opportunities. Although armed conflicts between Ukraine and the Russian Federation and between Israel and Hamas continued to affect the markets and tensions between China and the United States of America remained high, the global economic growth still achieved a moderate level.
Therefore, by the end of 2024, the Organization for Economic Co-Operation and Development ("OECD") estimates a global growth rate of 3.1%, similar to the performance achieved in 2023 (3.1%). On the other hand, global inflation has shown signs of deceleration with the International Monetary Fund ("IMF") forecasting a rate of 5.0% for 2024, compared to 6.9% in 2023. Regarding Eurozone inflation, it is expected to decrease to 2.3%, compared to 5.4% in the previous year.
For Portugal, specifically, the forecasts for 2024 indicate an economic growth of 1.7%, a deterioration from the 2.3% recorded in 2023. As for inflation, it is estimated to reach 2.4%, down from 5.3% last year, reflecting a gradual recovery in the purchasing power.
On the other hand, in the first half of 2024, the major central banks continued to maintain a cautious stance in their monetary policies making no significant changes in their reference interest rates. Thus, the American Federal Reserve held its reference rates at 5.50%, while the European Central Bank adjusted its rates to 4.25% only in June.
Regarding key commodities, oil and natural gas prices stabilized after significant fluctuations in previous years. Therefore, the price of oil saw a slight increase of 6%, while natural gas prices recorded a marginal rise of 1%, contributing to the reduction of the inflationary pressures.
Considering the economic and financial environment described above, the activity of Mota-Engil Group in the first half of 2024 was influenced by both global and local factors, as reflected in its operations and results, as detailed throughout this report.
INTERIM CONSOLIDATED MANAGEMENT REPORT 2024
7
1.2 Analysis of the economic and financial performance
TURNOVER | TURNOVER | ||
BY BUSINESS UNIT | |||
GROUP (million Euros) | |||
Capital MEXT | |||
2% | 1% | ||
Environment | |||
2 732 | Europe - E&C (*) | ||
10% | 9% | ||
2 558 |
1H24 | Africa - |
E&C | |
24% |
Latin America
1H231H24- E&C
54%
(*) Includes others, eliminations and intra-group
In the first half of 2024, benefiting from the high backlog awarded and the excellent execution in the Engineering and Construction (E&C) area, the turnover (**) of the Group amounted to 2,732 million euros, an increase of approximately 7% compared to the first half of 2023 (2,558 million euros), once again reaching a record high regarding this indicator. This performance was particularly driven by the positive results of the Latin America - E&C business unit, which showed a growth of 12%.
Following the aforementioned, the Latin America - E&C business unit was the largest contributor to the Group's turnover in the first half of 2024, accounting for 54% (52% in the first half of 2023), followed by Africa - E&C with 24% (26% in the first half of 2023), and Europe - E&C with 11% (11% in the first half of 2023).
On the other hand, during the first half of 2024, the E&C business (excluding the Industrial Engineering Services component) represented 82% of the Group's turnover (83% in the first half of 2023).
(**) Turnover corresponds to the consolidated income statement by natures caption of "Sales and services rendered".
INTERIM CONSOLIDATED MANAGEMENT REPORT 2024
8
EBITDA
GROUP (million Euros)
396
352
1H231H24
In the first half of 2024, supported by the profitability improvement in the E&C area, the Group's EBITDA reached 396 million euros, a 12% increase compared to the first half of 2023 (352 million euros). This performance was positively influenced by the growth of Latin America - E&C (24%) and Europe - E&C (46%). As a result of the evolution of EBITDA and turnover, the EBITDA margin (EBITDA / Turnover) reached 15% in the first half of 2024 (14% in the first half of 2023).
On the other hand, in the first half of 2024, the E&C business (excluding the Industrial Engineering Services component) contributed with 71% to the Group's EBITDA (71% in the first half of 2023).
Regarding EBIT, it amounted to 237 million euros in the first half of 2024 (213 million euros in the first half of 2023), a 11% increase, positively driven by the increase in EBITDA and negatively affected by the increase of amortizations and depreciations, due to the high volume of investments made in the last twelve months.
Thus, the EBIT margin (EBIT / Turnover) reached 9% in the first half of 2024, an increase of 1 p.p. compared to the first half of 2023.
INTERIM CONSOLIDATED MANAGEMENT REPORT 2024
9
CAPEX (*) | CAPEX | ||||||||||||
(million Euros) | |||||||||||||
1H 2024 BY BUSINESS UNIT | |||||||||||||
309 | (million Euros) | ||||||||||||
14 | 232 | ||||||||||||
22 | |||||||||||||
187 | 132 | 133 | |||||||||||
9 | |||||||||||||
59 | |||||||||||||
41 | |||||||||||||
41 | |||||||||||||
82 | |||||||||||||
30 | 101 | 30 | 22 | ||||||||||
12 | 13 | 14 | |||||||||||
48 | 6 | 17 | 18 | 22 | 13 | ||||||||
5 | -1 | 1 | |||||||||||
1H23 | 1H24 | Europe E&C | Africa E&C | Latin America | Environment | Capital + MEXT | |||||||
E&C | + Others Capex | ||||||||||||
Capital + MEXT + Others Capex | |||||||||||||
Environment Capex | Maintenance | Growth | MLTC (**) | ||||||||||
MLTC | |||||||||||||
E&C - maintenance capex | |||||||||||||
E&C - growth capex | |||||||||||||
- Capex corresponds to the algebraic sum of the increases and disposals of tangible assets, intangible assets and right of use assets occurred in the period, excluding those related with the concessions business in Mexico.
(**) MLTC - Corresponds to the industrial engineering services provided by Africa - E&C and to the energy business in Latin America - E&C.
In the first half of 2024, the Group's capex amounted to 309 million euros (187 million euros in the first half of 2023 and 326 million euros in the second half of 2023), mainly reflecting the awarding of significant projects in Angola, Ivory Coast and Senegal over the last twelve months.
On the other hand, in the first half of 2024, it is worth highlighting the following: (i) the E&C maintenance capex / E&C turnover ratio stood below 2%; (ii) 80% of the capex was allocated to medium and long-term contracts (MLTC) and growth capex; and (iii) the Environment business unit invested 22 million euros, of which 87% was assigned to waste treatment and recovery (EGF).
INTERIM CONSOLIDATED MANAGEMENT REPORT 2024
10
TOTAL NET DEBT | GROSS DEBT4) | MATURITY | |||||||||||||||||
GROUP (million Euros) | |||||||||||||||||||
GROUP (million Euros) | |||||||||||||||||||
Liquidity: | €1,223 M | ||||||||||||||||||
871 | |||||||||||||||||||
1 400 000 | |||||||||||||||||||
Cash | €842 M | ||||||||||||||||||
1 200 000 | Sovereign bonds | €21 M | |||||||||||||||||
374 | Available credit lines | €360 M | |||||||||||||||||
1 000 000 | |||||||||||||||||||
800 000 | |||||||||||||||||||
600 000 | 344 | 659 | |||||||||||||||||
400 000 | 506 | ||||||||||||||||||
200 000 | |||||||||||||||||||
153 | 95 | ||||||||||||||||||
0 | |||||||||||||||||||
1H | 2H | 1 year | [1 - 2 years] | [3 - 5 years] | > 5 years | ||||||||||||||
2022 | 2023 | 2024 | Already refinanced in 2024 | ||||||||||||||||
Non-revolving | |||||||||||||||||||
Revolving | |||||||||||||||||||
At June 30, 2024, net debt1) amounted to 1,268 million euros, an increase of 93 million euros compared with December 31, 2023, primarily driven by the strong investments performed in equipment's during the period.
At June 30, 2024, net debt, added by factoring and suppliers payment management operations2), as well as by the leasing operations3) amounted to 1,921 million euros, a reduction of 13 million euros compared with December 31, 2023, largely attributed to the repayment of the majority of the suppliers payment management lines related to the Trem Maya project in Mexico.
Despite the turnover growth during 2024, net debt was carefully managed and controlled, which, combined with the operational performance in the period, allowed the ratio comparing net debt with the EBITDA of the last twelve months to remain at 1.4x (1.4x as of December 31, 2023), aligned with the target set in the Group's Strategic Plan (below 2.0x).
Gross debt4), added by factoring and suppliers payment management operations, as well as by the leasing operations, amounted to 2,784 million euros at June 30, 2024, a decrease of 12 million euros compared with December 31, 2023. Additionally, at June 30, 2024, gross debt presented an average maturity of 2.5 years, 74% was denominated in euros, and 63% was exposed to floating interest rates. Furthermore, the ratio comparing gross debt, added by factoring and suppliers payment management operations, as well as by the leasing operations, with the EBITDA of the last twelve months reached 3.2x (3.3x at December 31, 2023), consistent with the Group's Strategic Plan target (below 4.0x). Lastly, at June 30, 2024, the average cost of gross debt, added by factoring and suppliers payment management operations, as well as by the leasing operations, due to the high interest rates context, which only began to decrease towards the end of the semester, reached 8% (7.6% at December 31, 2023).
Additionally, at June 30, 2024, the Group maintained 360 million euros in contracted but unused credit lines, achieving a total liquidity5) of 1,223 million euros, which exceds the non-revolving liabilities maturing over the next three years.
Finally, in the first half of 2024, after deducting the dividend distributions to several shareholders (approximately 58 million euros), the Group maintained its financial autonomy ratio6) at 10%.
- 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 amortized cost", "Loans without recourse" and "Loans with recourse". It should be noted that the leasing, the factoring and the suppliers payment management operations established by the Group are not accounted under the aforementioned captions.
- Factoring and suppliers payment management operations are recorded in the consolidated statement of financial position under the captions "Other financial liabilities".
- Leasing operations are recorded in the consolidated statement of financial position under the captions "Lease liabilities".
-
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" and "Other financial investments recorded at amortized cost". - Liquidity 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" and "Other financial investments recorded at amortized cost" with the amount of contracted but unused credit lines by the Group.
- Financial autonomy ratio corresponds to the quotient between the following captions of the consolidated statement of financial position: "Total Equity" and "Total Assets".