Report & Accounts 2019
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Consolidated Report & Accounts 2019 2 For a multinational company like Building Today, Mota-Engil growth starts today, molded by future ambitions. Imagining A long term mission that reflects on the operation, expanding to new Tomorrow. territories and new business areas. Energy Others, eliminations Turnover and intra‐group 197M€ Turnover 15M€ Environment Turnover 404M€ Backlog 782M€ 2019 Construction Turnover 2,211M€ Backlog 4,583M€ Mota-Engil Distinctions Consolidated Report & Accounts 2019 3 Highlights 2019 €5.4 bn €2.8 bn €417 mn Backlog Unprecedented turnover EBITDA of €417 mn, with a worth €5.4 bn of €2.8 bn, with an 1% increase resilient margin of 15% YoY €27 mn €1,213 mn €262 mn Net income of €27 mn, with a Net debt of €1,213 mn, with a net Capex of €262 mn 15% increase YoY debt ratio / EBITDA of 2.9x TURNOVER EBITDA (*) Includes the Europe region and others, eliminations and intra‐group (**) Includes the Africa and Latin America regions TURNOVER THOUSAND EUROS 2H18 12M18 2H19 12M19 % T % T % T restated % T (restated) (unaudited) (unaudited) Sales and services rendered (Turnover ‐ T) 2,826,746 0.0% 0.9% 2,801,749 0.0% 1,482,417 0.0% (4.4%) 1,550,894 0.0% EBITDA(*) 417,071 14.8% 2.5% 407,077 14.5% 223,055 15.0% (3.3%) 230,591 14.9% Amortizations and depreciations, provisions and ‐229,337 (8.1%) (10.9%) ‐206,828 (7.4%) ‐126,058 (8.5%) (4.6%) ‐120,541 (7.8%) impairment losses EBIT(**) 187,734 6.6% (6.2%) 200,249 7.1% 96,997 6.5% (11.9%) 110,050 7.1% Net financial results (***) ‐64,440 (2.3%) (14.6%) ‐56,250 (2.0%) ‐12,580 (0.8%) 72.7% ‐46,125 (3.0%) Gains / (losses) in associates and jointly ‐5,407 (0.2%) ‐ 3,010 0.1% ‐6,704 (0.5%) (610.9%) 1,312 0.1% controlled companies Gains / (losses) on the disposal of subsidiaries, ‐7,986 (0.3%) ‐ 462 0.0% ‐7,986 (0.5%) (1827.9%) 462 0.0% jointly controlled and associates companies Net monetary position 1,746 0.1% ‐ ‐12,263 (0.4%) 1,746 0.1% ‐ ‐3,098 ‐ Income before taxes 111,647 3.9% (17.4%) 135,209 4.8% 71,473 4.8% 14.2% 62,601 4.0% Consolidated net profit for the year 70,173 2.5% (24.9%) 93,475 3.3% 44,652 3.0% (14.8%) 52,393 3.4% Attributable to: 0 0.0% 0.0% 0 0.0% 0 0.0% 0.0% 0 0.0% Non‐controlling interests 43,445 1.5% (38.1%) 70,169 2.5% 26,050 1.8% (25.2%) 34,827 2.2% Group 26,728 0.9% 14.7% 23,306 0.8% 18,602 1.3% 5.9% 17,566 1.1% (*) EBITDA corresponds to the algebraic sum of the following captions of the consolidated income statement: “Sales and services rendered”; “Cost of goods sold, mat. cons., changes in production and Subcontractors”; “Third‐party supplies and services”; “Wages and salaries”; “Other operating income / (expenses)” (*) EBIT corresponds to the algebraic sum of EBITDA with the following captions of the consolidated income statement: “Amortizations and depreciations”, “Provisions” and “Impairment losses" (***) Net financial results corresponds to the algebraic sum of the following captions of the consolidated income statement: “Financial income and gains” and “Financial costs and losses” Message from the Chairman of the Board of Directors “We shall prevail and become even stronger. MOTA-ENGIL has always been an example and a reference for the future and shall continue to be so once more in all the countries in which we operate.” António Mota Chairman of the Board of Directors Consolidated Report & Accounts 2019 7 Dear Shareholders, Another year has gone by, and at the General Assembly we will analyse the accounts concerning the financial year of 2019. At that point, we will assess those figures, which I consider to have been extremely positive. But today, as I write this text, I cannot help but consider the current conjuncture, wherefore I will transcribe the message I sent to all workers of MOTA‐ENGIL. “My dear friends, All of us and the company as a whole are experiencing very difficult times. We must stand united. Humanity will prevail and MOTA‐ENGIL will be an example. We therefore must first and foremost ensure the safety of all our workers, following the rules that the national authorities in each Country determine. Nevertheless, at the same time, we must maintain production at the possible levels given the conjuncture of each Country. We must show solidarity to one another, but we must support the Boards in their management of the situation in each Country. This is undoubtedly the most difficult phase of my life, but I remember that I have said so in other situations on account of other reasons that I now recognise were of smaller scope. “We shall prevail and become even stronger. MOTA‐ENGIL has always been an example and a reference for the future and shall continue to be so once more in all the countries in which we operate.” Know that I, my Sisters, the whole Mota Family and the GROUP's Administration is sympathetic and aware of what we must do: ‐ To preserve the health of all workers. ‐ Keep the company on business if, when and however possible, without endangering safety. As it is said in Africa and constitutes the motto of our GROUP “WE STAND TOGETHER!” Best regards to everyone, be brave and comply with the rules. António Mota” I would therefore like to extend this message to all shareholders, clients, partners, sub‐contractors, suppliers and financial institutions which always have been and will keep on being of crucial importance to us. I also cannot help but to express a word of gratitude to all health workers (doctors, nurses, caretakers, chemists and similar) for the effort and commitment they make on their daily lives. I extend that word of gratitude to those who through their daily activity ensure the supply and to those who strive (wherever and however) so that the economy is maintained at the levels possible. Lastly, I would like to express my support to the national authorities of each Country (President, Government, regional and municipal authorities, health authorities); we live difficult times, decisions must be taken and it is up to us to follow the implemented rules. We stand together! Consolidated Report & Accounts 2019 8 Message from the Chief Executive Officer “In 2019 we continued to grow and to ensure the future, supported by a Backlog with historical levels and in highly specialized sectors thus enhancing the value chain of the Infrastructures.” Gonçalo Moura Martins Chief Executive Officer Consolidated Report & Accounts 2019 9 Dear Shareholders, Now that the year of 2019 has reached its end, I once more address all of you to take stock of the activity of a year which proved to be intense, demanding and difficult but for which we were able to find solutions. We are always guided by a common principle arising from our culture: a long‐term Vision and a strong commitment to each project and each client. “In 2019 we continued to grow and to ensure the future, supported by a Backlog with historical levels and in highly specialized sectors thus enhancing the value chain of the Infrastructures.” We also proceeded to strengthen the diversification of our activity, growing in the Environment sector (with new contracts in Brazil), in the Energy sector (where we set out to introduce commercialisation in a more robust manner) and also in the Concessions sector where we nowadays have a portfolio of concession assets with road network (under construction or operating) of approximately 2500 km under management, which is proof of the GROUP’s know‐how and capacity in the area of concessions. To that end, it was necessary to increase the levels of investment in the last two years because we trust in the capacity of the GROUP, as a whole, to obtain results out of the investments made, and for the opportunity that we feel there is to strengthen business areas in which we have a potential to grow. Still with regard to the measures carried out in 2019, some of which will only be felt from 2020 onwards, I would like to underline the new plan of operational efficiency in course, which reflects the continuity of a work aimed at strengthening the procurement, planning and control technical areas, so that they can internally generate efficiency and operating cash flow. The commitment and professionalism of all workers of the GROUP, as well as the trust placed by our Clients, Shareholders and remaining Stakeholders, to whom, on my behalf and on behalf of the Executive Committee, I express a just and heartfelt gratitude, were crucial to the achievement the objectives defined for 2019. Following the closure of the financial year, the world has been confronted with a pandemic phenomenon never felt in the last one hundred years, a pandemic the intensity and gravity of which has overcome any capacity for prediction or historical experience, and which, day by day, keeps surprising us on account of the level of catastrophism and the challenges it embodies, even to the societies deemed most advanced and better prepared from a scientific perspective. In this truly exceptionally moment we live, due to the outbreak of Covid‐19, the MOTA‐ENGIL GROUP has implemented a Contingency Plan in line with the best international practices defined by the health authorities, with an essential objective in mind: ‐ To protect the health and well‐being of our Workers For that purpose, we are creating conditions to safeguard all our Workers in all the markets with high asymmetrical exposure and public conditions of reaction to the pandemic, so as to prevent individual exposure to the contagion.