ANDRADE GUTIERREZ ENGENHARIA

Corporate Presentation
Jun 2019

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 ANDRADE GUTIERREZ ENGENHARIA
Large scale high performance engineering services

900 20 300
Besides its successful track record of more than 70 years
across the entire infrastructure chain, AG also has a unique ability
to structure strategic partnerships. Its internationalization process
started in the 1980's and led to enterprises in over 40 countries,
proving its diversity, ability to transfer its integrated solutions projects business areas clients
and standards of excellence anywhere in the world.

ROADS, BRIDGES AND

SUBWAYS VIADUCTS RAILWAYS
PROJECTS: 30 PROJECTS: 424 PROJECTS: 25

REFINERIES AIRPORTS PORTS

PROJECTS: 20 PROJECTS: 29 PROJECTS: 47

REAL ESTATE ARENAS WATER AND SEWAGE

PROJECTS: 87 PROJECTS: 4 PROJECTS: 154

IRRIGATION SHIPYARDS
PIPELINES PROJECTS: 1
PROJECTS: 12 PROJECTS: 24

HYDROELECTRIC THERMAL POWER

MINES AND STEEL POWER PLANTS PLANTS
MILLS PROJECTS: 41 PROJECTS: 11
PROJECTS: 14

NUCLEAR POWER PLANTS DRILLING / OIL FIELDS

PROJECTS: 3 ONSHORE: 63 KM
OFFSHORE | RIVERS: 206 KM
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 ANDRADE GUTIERREZ GROUP
Corporate Structure

AMERICAS ENOG ZAGOPE

BONDS
USD 356 MM

DIVESTMENTS

Health Wind Towers Water Sewage Water Sewage Mobility Energy Water Sewage Mobility Energy Arena

São Ilha da Santo

Novo Bayovar Lourenço Madeira CEMIG SANEPAR CCR BRIO
TEN 100% 50% 19% 6,7% 8,3% Antônio
Metropolitano 14,86% 50%
51% 1,7%
50% R$ 137 MM R$ 258 MM EUR 20 MM R$ 742 MM R$ 365 MM
R$ 35 MM R$ 100 MM R$ 4,09 Bi R$ 100 MM R$ 30 MM
R$ 1.6 Bi

TOTAL MARKET CAP R$ 27,5 Bi # SHARES AG 14,86% 300,1 MM MARKET CAP AG R$ 4,09 Bi

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Divestment Process
CCRO3 JUN/19 = R$ 13,62
 AGREEMENTS & COMPLIANCE
Cooperation withAuthorities

Implementation of a benchmark compliance program. Full cooperation with authorities.

Ja No De Ja Ju No De
n v c n n v c
2016 2017 2018
1st - 2nd 3rd 4th - 5th 6th 7th - 8th AGU/CGU
MPF
CADE CADE CADE CADE CADE Leniency
Leniency Agreements Agreement
Agreement Agreements Agreement Agreements Agreement

R$ 88 MM

from 2017 to 2040

R$ 1,49 BL

in 16 annual installments* from

2016 to 2032

* 3 installments already paid + 1 in collateral

AG is compliant with the obligations assumed in all leniency agreements, as well as fully
able to contract with the public administration.
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 CORPORATE GOVERNANCE | HOLDING
Senior executives as Board of Directors

HOLDING

 Board of Directors without the presence of shareholders with

exclusive responsibility on strategic decisions
 Independent Compliance structure reporting directly to the Board of
Directors
 Six Support Committees segmented by specialty to support the
Board’s decisions

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 CORPORATE GOVERNANCE |AGE
Total renewal of the senior management GOVERN
ANCE
AGE

 Total renewal of the senior management since 2013

 Reduction of the direct reports to the Company's President

PRESIDENCY
OF AG
ENGENHARIA
Brazil Division
Americas BU
Argentina Division

LATAM BU
Europe,
Angola Division Africa & Asia
BU
Africa Division

MEA Division Energy and

Oil & Gas BU
Energy Division

Oil & Gas Division

Non-
Private BU Operational
BU
Venezuela Division

Caribbean Division Corporate

Units
Business Estruct BU
Export Finance
Excellence Business Compliance | Auditing
People | Management
Finances Supplies Legal Affairs Engineering and Risk Equipments
QMSS Center |6
Institutional Relations
Innovation Planning
 AG BUSINESS MODEL
AG´s business model improvement

Important mindset change when selecting interest projects with focus in cost and no more in revenue, in order
to build a safe and consistent backlog.

BEFORE CURRENT

Model focus in REVENUE Model focus in COST

Focus in quantity of contracted Focus in quality of contracted projects

projects and private clients

Commercial performance started after Previous commercial performance

the contract signing with clients selected by AG

Indefinite Funding, resulting in late Guaranteed Funding with more

receivings predictability of receivings

Client provides an insufficient Basic Client provides State-of-art

Engineering Project Engineering. Consistent Basic Project

Lean Company with Operational

Frequent need of contractual
Excellence maintaining the value
amendments, resulting in claims
initially agreed

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OPERATIONAL EXCELLENCE AND INNOVATION
Lean Culture and Innovation in the Engineering Sector

AG created and implemented A2G - All Together Innovation, a program designed to strengthen our operational
excellence and make us increasingly competitive, agile and creative, working with startups, partners and
collaborators.

BIM | Building Information

Modeling: develop state-of-the-
Global calls for startups
art engineering from the digital
capable of solving specific
construction model, ensuring
challenges in some of AG´s
integration and information
projects.
Startups Accelerator Program, management for all the
where the selected startups stakeholders.
will have AG´s support in the
development of innovative
solutions for the engineering
and construction industry.

A2G will expand our business opportunities and raise the quality of the solutions we offer our
clients, thereby making a difference in the Engineering and Construction market.

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PROJECTS EVALUATION & APPROVAL PROCESS
Strong Governance with a solid Contracting Committee

The main assumptions evaluated by the Contracting Committee – CCON to aprove projects are: positive cash
flow, guaranteed funding, compliance, appropriate guarantees and the relevance of the project to the client.

STAGE GATES

CCON – CONTRACTING
ENGINEE COMMITTEE
COMPLIA
LEGAL FINANCE
RING NCE CONTRAC
BUSINESS TUAL
RISKS SUPPLIES
UNIT MANAGE
MENT
309 analyzed
545 meetings
jan/14 – may/19
projects

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BACKLOG RECOVERYAND MARKET EXPANSION
Actual Backlog

4Q18 by sector
BACKLOG 3Q18 X 4Q18 WATER &
SEWAGE
in BRL Bi TRANS 1%
PORT
24%
4Q18 by region
11.03
LATIN
10.12 AMERICA
8%

AFRICA
38% OIL & GAS ENERGY
2% 73%

BRAZIL
49%
ASIA
6%
4Q18 by client type

PUB
LIC PRI-
5% VATE
3Q18 4Q18E 48%
PRI-
VATE
95% PUBLIC
BRAZIL 52%

AG was able to maintain a strong Backlog despite the adverse economic environment.

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MARKET EXPANSION
Signing of new contracts aligned with the Company’s strategy

WIND ENERGY PARKS ARIPUANÃ – MINING PROJECT

Project Completion: 2019 | Project Completion: 2023 % AG: 100%
2020
Client: NEXA - Private Total AG: R$ 265 MM
Client: Echoenergia, EDF -
Total AG: R$ 54 MM
Private | FURNAS - Public

SALOBO III – MINING PROJECT FORQUILHA – MINING PROJECT

Project Completion: 2021 % AG: 100% Project Completion: 2021 % AG: 50%

Client: VALE - Private Total AG: R$ 268 MM Client: VALE - Private Total AG: R$ 150 MM

GONGO SOCO – MINING PROJECT BRIGADIER LOPEZ TPP

Project Completion: 2020 % AG: 50% Expected to Sign: Jun/19 % AG: 60%
Client: VALE - Private Total AG: R$ 125 MM Client: Central Puerto - Private Total AG: R$ 225 MM

PARACATU – CIVIL WORKS ADDITIONS

Expected to Sign: Jun/19 % AG: 100% Novo Tempo TPP: R$ 50 MM

Client: Fundação Renova Total AG: R$ 250 MM Belo Monte HPP: R$ 26 MM
- Private Axion Refinery: R$ 39 MM

NEW CONTRACTS R$ 1.452 MM | 11

DAM DECOMMISSIONING
Market Opportunities

Tailing dams constructed by the upstream method should be decommissioned or de-characterized by Aug/2021, opening up
opportunities not only for the decommissioning process but also for all containment works prior to this process.

DRAINAGE
DAM Process of de-characterization of the dam, emptying its
DECOMMISSIONING contents and reintegrating it into the environment
EMBANKMENT

VALE OTHER POTENTIAL CLIENTS

USD 1,9 bi Approved

investment 33 Identified dams with
High Hazard Potential

9 inactive dams for urgent

decommissioning

AG aims to present alternatives of Integrated Engineering Solutions that contemplate the entire process of
decommissioning and to consolidate partnerships with specialized companies
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PIPELINE 2019 - 2021
Pipeline by Geography and Client Type

PORTUGAL
USA

DOMINICAN REP.

PANAMA
COLOMBIA
COLOMBIA
GHANA

WON CONTRACTS WIN BID TARGET PIPELINE BRAZI

PERU ANGOLA MOZAMBIQUE
L

2019 7,575 24,817

Public Private
1,452 28% 72%
2020 28,618 ARGENTIN
A
2021 22,336

PIPELINE 2019 – 2021 75.771

PIPELINE 2019 - 2021 R$ 75,8 Bi

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PIPELINE 2019
Europe, Asia and Africa - ZAGOPE

( R$ MM ) AG
COUNTRY TARGET WIN BID
PROSPECT

Angola 1.461 924 63%

Ghana 655 655 100%

Mozambique 5.525 1.078 20%

Portugal 3.590 862 24%

EAA 2019 11.230 3.519 31%

MARKET
ASSESSMENTS Spain Botswana Senegal Kenya Ivory Tanzania Uganda Guinea-
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Coast Conakry
PIPELINE 2019
Americas

( R$ MM )
AG
SECTOR TARGET WIN BID
PROSPECT

BRA

Mining and
DOM
Dam 5.107 808 16%
PER

Water &
USA
Sewage 320 60 19%

BRA
Others* 333 33 10%

BRA Urban
COL
Infrastructure 2.261 180 18%
& Logistics

Americas 2019 8.021 1.081 13%

* Metals and Real Estate

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PIPELINE 2019
Energy, Oil & Gas - ENOG

( R$ MM ) AG
SECTOR TARGET WIN BID
PROSPECT

BRA
O&G
ARG
E&P, MidleStream
& DownStream
2.150 1.020 47%

BRA
TPP
ARG Thermal Power Plant 1.575 675 43%

Renewable
BRA
Energy 1.141 580 51%

BRA
Transmission
ARG
Lines 700 700 100%

ENOG 2019 5.566 2.975 53%

MARKET SHARE ENOG: AG target is to capture 4% of the total market for 2019 – R$ 89 Bi
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 INCREASED LIQUIDITYAND LIABILITY MANAGEMENT
Financial Results AGE – 2018

Net Revenue (R$ MM) EBITDA (R$ MM)

Significant improvement in revenues 150
Solid business recovery

1501 1747 105

1600

38 305
100

74
1600

+185%
1400

1400

1200

1200 50

200

10
1000
1000

695 0

1463 1443 2017 2018

800
800

594
0

1Q18 2Q18 3Q18 4Q18

172 600 -2 0 0

127
600

400

243 2
-4 0 0

215
400

-5 0

3 466 523 200

200

-79 -6 0 0

241 212 0

-89
0
2017 2018 In- Bra -8 0 0

1Q18 2Q18 3Q18 4Q18

-1 0 0

ter zil RECOVERY

na- 38 -1 ,0 0 0

Net Revenue Direct Invoicing tio %

nal
-1 ,2 0 0

62 -1 ,4 0 0 -1,287
%
Gross and Net Debt + Guarantees (R$ MM) Debt Amortization Profile (R$ MM)
2500
Gross and Net Debt reduction
2500
2000 2163

2000 1488 1760

1500
1500 219 1,355
1665 984
1000
1000 1355
557
500 272 78 17 38
500
498 406 Caixa 2019 2020 2021 2022+
0 Cash
0 4 8

2017 2018
Gross Debt Guarantee Net Debt + Guarantee Restricted Available AGE AGIT
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BACKLOG / REVENUES
Main Contracts in Progress

UTENT TBAPI – TMGBA - TPARA

Porto do Açu Thermal Power Plant Equatorial Energia Transmission Lines

Project Completion: 2020 Project Completion: 2020

Client: Private Client: Private
Total Contract: R$ 1.117 MM Total Contract: R$ 3.341 MM
Outstanding: R$ 776 MM Outstanding: R$ 2.905 MM

% Forecasted Net Revenue 2019 16% % Forecasted Net Revenue 2019 34%

DIESEL MULTIPLE UNITS MONTEGRANDE DAM

Project Completion: 2022 Project Completion: 2022

Client: Public Client: Public
Total Contract: USD 169 MM Total Contract: USD 255 MM
Outstanding: USD 155 MM Outstanding: USD 170 MM
Financial Inst.: ICBC, Sinosure and Standard Bank Fin. Inst.: Central American Bank of Economic Integration

% Forecasted Net Revenue 2019 4,4% % Forecasted Net Revenue 2019 9,2%

DMUS PMG

These main contracts in progress represent 64% of the Total Net

Revenues expected for 2019 | 18
INCREASED LIQUIDITYAND LIABILITY MANAGEMENT
Forecasted Financial Results considering only hired backlog

Forecasted Net Revenue (R$ MM) Breakdown of 2019 Net Revenue (%)

4490 Trans-
4500

OTHERS mission
30% Lines
4000

+ 157% 1191 34%

3500

DCU & FGT

3000
Units - RAX1
3%
2500

2000 1747
304.746 3299 Novo Tempo
Thermoplant
1500

1000

Jannah Dam 16%

1443 & Lake
500

3% Diesel Ma- Monte

chine Units Grande
0

4% Project
2018E 2019E 9%

Net Revenue Direct Invoicing TOTAL

Forecasted EBITDA (R$ MM) Breakdown of 2019 EBITDA (%)

Trans-
OTHERS mission
29% Lines
+ 309 MM 27%
300

250

DCU & FGT

200 Units - RAX1
2%
150
319

100
Novo Tempo
Thermoplant
50
16%
10 Jannah Dam
0
& Lake Monte
2018E 2019E 4% Diesel Ma-
chine Units Grande
EBITDA 9% Project | 19
14%
Slide 04 : Trabalho com a sociedade ( MANGUINHOS)

AG ENGENHARIA

www.andradegutierrez.com
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