2023

Integrated
Report

Value
Shared
Creating
Creating This is the era of Shared Value. The corporate world can
no longer perceive business solely through the perspective
Shared of shareholders. While challenging, the prospect of creating
impact across the value chain is much more meaningful.
Value This serves as our guiding principle: to conduct business
and undertake projects judiciously, thereby broadening their
scope, contributing to sustainable development and improving
the living conditions of all those we encounter.

It is ingrained in our purpose, woven into our DNA, and

resides within each one of us: to be born anew, each and
every day, in order to create a better tomorrow.

Integrated Report 2023 2

Message from 2023 was a very relevant year for MCA.

the Chairman In light of our long-term vision, we have

conducted a thorough strategic review to
guide our future actions and ensure the
sustained success of our business plan.

Driven by an inspiring vision of sustainable

growth and an unwavering pursuit of
excellence, we seek to enhance the autonomy
of our management teams by redefining our
corporate governance model, implemented
in 2023. Recognising the need for secure
leadership and agile decision-making
processes in today’s volatile and uncertain
market conditions, we have established
a robust system of checks and balances
that enables us to manage risks, identify
opportunities and foster the independence (as
well as the interdependence) of our business
units.

Our business segments serve as the

channels through which we manifest our
Purpose, which is the creation of value
we aim to share with the world.
This value is generated through diverse
avenues, including our role in the energy
transition process, the construction of
infrastructures that connect distinct
realities, our contribution to shaping a
new urban order and our provision of
healthcare to underserved populations.

Integrated Report 2023 3

Message from And in 2023 we can highlight some relevant These milestones contributed to a very We perceive innovation as an
moments: positive financial performance for the Group opportunity to foster growth and make
the Chairman in 2023. enduring contributions to our business.
• The Rural Electrification Project
commenced at the conclusion of Despite encountering numerous challenges, Sustainability is part of our business
contractual and financing procedures. our dedication enabled us to successfully strategy. MCA aspires to be a reference
A significant milestone was reached with achieve our goals. in environmental, social and governance
the laying of the foundation stone (last practices across all of its operations, as well
November). The project aims to ensure The talent, unity and focus of our as in promoting and monitoring its value chain.
the electrification of over 200,000 rural People are absolutely fundamental for
homes in Angola. us to provide excellent service to our clients, In 2023, we celebrate 25 years of MCA. We
• Construction of the last two solar which is a distinguishing aspect of the MCA honour all those who have built our
parks (Bailundo and Cuito) and of brand. past, those who navigate our present
the photovoltaic solar project and those who will shape our future.
in Angola, which complemented five In 2023, we stood alongside our People
previously completed parks. to better understand their needs. We The past inspires us to forge a legacy of
• One year of advanced biofuel implemented a broad range of flexible workplace happiness, positive impact on
production at our plant in Portugal, options, including bespoke benefits and the communities where we operate and
MainBio. working arrangements, in order to meet the excellence at MCA. This legacy embodies our
• Delivery of two logistics platforms in expectations of each individual. This approach pride in shaping the future.
Spain, both aligned with LEED Platinum fosters unity within diversity, promoting
standards, reflecting our commitment to respect, diversity and inclusion. The future starts now!
sustainable construction practices.
• Execution of 29 infrastructure projects in MCA’s commitment to sustainable Thank you all very much.
Portugal and Angola, including roads, paving growth in a context of escalating global
and urban requalification. geopolitical tensions, which could have very Manuel Couto Alves
• In the Healthcare sector, operations significant impacts on global security, compels Chairman of the Board of Directors
have commenced at Hospital de Bragança, us to approach 2024 with heightened
which now joins Hospital Terra Quente and attention to efficiency, technology and
Hospital Privado de Chaves, positioning the digital transformation.
Terra Quente partnership as a reference
player in the country’s interior.

Integrated Report 2023 Message from the Chairman 4

Key
Figures

Turnover
Cumulative installed
capacity of renewable

€213 M energy projects

executed
Countries where
we operate
Investment
in social
€52 M 5 responsibility

EBITDA
285 MW 1,265 Volunteer
Hours
€0.5 M
Employees
7.4K t 675
CO2e
Scope 1 & 2 1.8 M
Emissions
People who now
have renewable
energy at home

Integrated Report 2023 5

Impact
Highlights

Launch New
Adjudication Celebration
Delivery Signature
Training
workshops Reuse
of a €1.29 of two major Production of the 25th
in Guimarães of the primary
billion rural road projects in of two logistics Anniversary
to centralise EPC contract for in Diversity
electrification Angola, spanning parks in Spain of MCA
operations a biomethane of over 70 and Inclusion,
project that will more than with a LEED of a traveling
and improve project in tonnes of wood including more
provide green 360 km, which Platinum film festival
efficiency Central Europe, for manufacturing than 320 hours
energy to over will connect certification powered by solar
which will furniture for
one million the interior of goal, aimed at panels across
accelerate our schools and
individuals, Angola to the accelerating trade 15 locations in
role in energy health centres
including people Democratic and reducing Angola
transition
without access to Republic of distances
electricity Congo and
Zambia,
increasing
accessibility
and mobility of
people and goods

Integrated Report 2023 6

PART I Management Report 1. About MCA 1.1 A 25-year Legacy 13
1.2 Purpose & Values 15
1.3 Global Presence 16
1.4 Our Business 17
1.5 Corporate Governance Model 18
1.6 Value Creation Model  22

2. Performance in 2023 2.1 Macroeconomic Environment 25

2.2 Financial Performance 27
2.3 ESG Data 29

3. Sustainable Strategy 3.1 Our Beacon of Sustainability 36

3.2 Sustainability across the Value Chain 37
3.3 Stakeholder Engagement 38
3.4 Collaboration with Associations 38

4. Risk Management & Compliance 4.1 Risk Management 41

4.2 Risk Assessment 43
4.3 Main Risks 44
4.4 Risk of Corruption and Conflicts of Interest 46
4.5 Ethics & Compliance 47

5. Energy for good 5.1 Export Credit Financing  51

5.2 370 MW Solar PV Project in Angola 51
5.3 Rural Electrification Project for 60 Communes in Angola 52
5.4 Assessing Impact on Communities and the Environment 53
5.5 Working with Local Communities 54

6. Promoting Circular Economy 6.1 Circular Economy as a Business 59

6.2 Waste Management in our Operations 59
6.3 Water Consumption 60
6.4 Employee Engagement 60

7. Sustainable Urban Development 7.1 Development of Logistics Projects 65

7.2 Promoting Energy Efficiency in Operations and Facilities 65
7.3 Our Carbon Footprint 66

8. Infrastructures with Impact 8.1 Water and Road Projects in Angola  70

8.2 Infrastructure Projects in Portugal 70
8.3 Volunteering for Vital Infrastructures 71

9. Commitment to the Right to Health 9.1 Investment in the Healthcare Sector  75

9.2 Respect for Human and Labour Rights 76
9.3 Occupational Health and Safety 78
9.4 Promoting Health in the Communities where we Operate 78

Integrated Report 2023 7

 10. Our Responsibility  79

11. Working at MCA 11.1 Our Culture 86

11.2 Acting and Listening 86
11.3 Talent Attraction 86
11.4 Training and Development 87
11.5 A Good Place to Work 87
11.6 Promoting Efficiency 87
11.7 Transparency 88

12. About this Report  89

PART II Financial Statements 13. Consolidated Financial Information  93

14. Company Financial Information  154

PART III Appendix 15. Proposal for the appropriation of results  170

16. Statutory Audit Report  170

17. GRI Report  175

18. EU Taxonomy Report  189

19. Acronyms and abbreviations  191

20. Technical File  191

Integrated Report 2023 8

 PART I
Management
Report

Integrated Report 2023 Alterar 9

 1.
About MCA

Integrated Report 2023 Part I – Management Report 10

The MCA Group was established in 1998
in Guimarães, Portugal. It was founded by
Manuel Couto Alves, its current Chairman,
who has steered the company’s evolution
into an international business platform
over the past 25 years.

Since its inception, the MCA Group has

consistently upheld a robust commitment
to corporate responsibility. This ethos
guides the company’s operations, aiming to
create a positive impact on communities
and the world.

Having started as a small construction

company, MCA currently focuses on
the Energies, Urban Development,
Infrastructures and Healthcare sectors,
operating in four geographical regions.

Creating

Purpose
Shared
Integrated Report 2023 Part I – Management Report 11
Energies Urban
Development
Infrastructures
Healthcare

MCA collaborates with partners to offer the

best bespoke solutions to clients, whether
by developing or adapting last-mile logistics
MCA drives the energy transition through platforms and technology hubs, or seeking
turnkey renewable energy, storage and affordable rental or multi-family housing MCA plans, constructs, rehabilitates and
electrification solutions, including in solutions. maintains different types of infrastructures,
developing countries. Additionally, the Group which are essential for the development of MCA maintains a competitive portfolio
is engaged in building a distinct portfolio of the communities where we operate, from of healthcare assets and senior residences
energy transition assets, namely in the areas roads and bridges to water and sanitation, civil in specific geographic areas in Portugal.
of renewable energies and circular economy. works, maritime and electrical installations. Additionally, the Group explores new
technologies and other niche markets to
promote healthy living.

Integrated Report 2023 Part I – Management Report 1. About MCA 12

1.1 A 25-year Legacy In 2023, we proudly celebrate 25 years, honouring the past,
present and future. A story made of people!

What set MCA’s journey apart and propelled us to achieve

and even surpass our goals were the people directly or
indirectly involved in each project! Nothing happens without
talented individuals. Within the MCA Group, we are
fortunate to have exceptional people! This is the key to our
success.

We are a company in continuous transformation. From

our origins solely in construction, we have expanded our
operations to four business verticals, where we have already
delivered significant value.

Integrated Report 2023 Part I – Management Report 1. About MCA 13

“Every project undertaken by MCA “I am very proud of MCA’s growth. The “Each day at MCA is different from “My time at MCA was the most “The company has grown exponentially
makes a difference. The Group does Group has ventured beyond its comfort the last, which makes the company fulfilling mission of my life. We have since I joined, 22 years ago. At that
not only focus on the project itself, but zone and strives for a more sustainable truly special. Regardless of project experienced tremendous growth. Today, time, it was a much smaller company,
considers the people involved and the world. It has recruited younger people, size or complexity, no task is taken I am proud of an initiative in which I with a much more limited scope of
individuals who will benefit from our with new visions, while also retaining lightly. The spirit of mission, sacrifice was not involved: the photovoltaic fields. business. Today, MCA has evolved into
efforts. MCA leaves its mark on every many who have been with the company and responsibility is always present. It is a testament to our essence at an entity of a completely different
project it executes. I have no doubt for all these years. I am very proud of We always want more and better. My MCA. I feel part of the MCA family and dimension. I often say that just when
that these projects will bring significant these people, as I see them growing involvement from the outset in the envision a bright future for the Group.” we think we have seen everything here,
added value for both the MCA Group alongside MCA.” Angola project has been and continues there is always so much more than we
and Angola.” to be a source of great satisfaction.” Manuel Teixeira dos Santos expect.”
Maria Couto Alves
Alfredo Castro Vitor Hugo Lima Paula Pereira

Integrated Report 2023 Part I – Management Report 1. About MCA 14

1.2 Purpose & Values

Purpose

Empowering Lives
for Generations
That’s what inspires us to improve the
future, everyday! We foster people’s lives
today, contributing to a better world for
the generations to come. Whether it’s
promoting thriving communities,
caring for our planet or supporting
healthy living, with inclusive and
sustainable solutions. We seek to go even
further every day, every moment. This is
our path.

Values Pioneer
We lead people along the path of progress
Human
We take care of people and promote their
Sustainability
We preserve the present and create the
Trust
We pave our path, walking openly and side
Agility
Knowing that obstacles are just a part
and innovation. New technologies well-being, whilst ensuring inclusion and future. With actions designed to positively by side, with partners, thus forming an of the path, we quickly turn them into
associated with disruptive development diversity across the board. Our conduct impact the generations of today and the unbreakable bond of trust. We are a solid opportunities. Achieving growth requires
guide us to achieve the most effective is guided by strict ethics and compliance generations to come. We work towards a team that counts on each other to grow the right balance between speed and
results and solutions, even when we find principles, fully aligned with what we, as carbon neutral footprint. Respecting our and evolve together, whilst forming lasting adaptation. Having the right answers at the
ourselves outside our comfort zone. individuals and as a society, value the most. planet and the society we live in is thus at relationships with loyal partners. right time, and taking decisions to adapt or
We turn the challenges of today into the the core of how we operate. leave, is key for success.
competitive advantages of tomorrow.

Integrated Report 2023 Part I – Management Report 1. About MCA 15

1.3 Global Presence The MCA Group is a multinational company with a
presence in Portugal, Spain, Germany, Poland and Angola,
spanning across three geographical clusters. Our activities
are centred around the Energies, Urban Development
Infrastructures, and Healthcare sectors. We shape our
strategy by delivering solutions that meet the needs of
our clients and generate long-term value for communities
across the various business verticals and geographical CENTRAL EUROPE
regions where we operate. ENERGIES

Germany, Poland
1% of employees

IBERIA
ENERGIES
URBAN DEVELOPMENT
INFRASTRUCTURES
HEALTHCARE

Portugal
23% of employees
Spain
1% of employees

1%

24%

AFRICA
ENERGIES
INFRASTRUCTURES

75% of employees
75%

● Africa
● Iberia
● Central Europe

Integrated Report 2023 Part I – Management Report 1. About MCA 16

1.4 Our Business

Commercial Operation
Ready to Build (RTB) Date (COD)

Development & Financing Engineering,

Procurement & Construction Operation

High risk, high return Strong Engineering skills Lower project Steady cash flow stream
with cross-sectorial expertise returns

Origination capacity is key Partnering with Risk of Focus on projects with attractive returns and valuation
world-class suppliers price fluctuations

Capacity to structure financing: ECAs (Pure DEPC), Risk of execution Asset management capabilities
Institutional Investors timeline

Pure DEPC

Asset Owner

Potential partial or full sale and/or buy @RTB Potential partial or full sale @COD

Over the years, we have diversified our activities into We believe that our in-house capabilities in Engineering Regarding Operations, the Group primarily focuses on
segments of the value chain where we see the potential and Procurement enable us to create significant value for projects in which we hold an equity stake, although we
to capture more value. Today, our priority is to both our clients, for whom we develop projects, and for may occasionally provide Operations and Maintenance
generate value from the beginning of a project, through our own asset portfolio. (O&M) services to projects we undertake.
Development and by structuring Financing.
In the Construction stage, we leverage internal capabilities Therefore, MCA’s involvement across the value chain
(know-how) and adequate resources (personnel and varies with the business sector and geographic location,
machinery), namely in Portugal and Angola, for executing and depends on whether the project in question pertains
Infrastructure projects. However, depending on the nature to a DEPC for a client or involves asset ownership.
of the works, we often engage subcontractors to carry
out construction, not only in the infrastructure sector, but
also across all our other business units.

Integrated Report 2023 Part I – Management Report 1. About MCA 17

1.5 Corporate Our Governance model aims to promote agility in M. Couto Alves Holding B.V.: M. Couto Alves Holding position and assets of the Company, which are understood
Governance Model decision-making processes and ensure appropriate checks
and balances. In this sense, the model ensures strict
B.V. with head office at Hoogoorddreef 15, Amsterdam,
The Netherlands (“MCA Holding”) was incorporated on
as all decisions involving an exposure of over €50m.
Additionally, the Board of Directors may, under the terms
alignment between stakeholders, while providing clear 12th December 2017 and has the registration number and within the limits established in the applicable legal and
separation of powers among the various governing bodies. 70291457 with the Dutch Chamber of Commerce. statutory provisions, delegate powers onto specialised
committees, either permanent or temporary.
M. Couto Alves Holding B.V. is supported by a corporate MCA Holding activity consists in the management
structure that oversees the management of all Group of financial holdings and, together with its subsidiaries, The composition of the Board of Directors, consisting
companies. This structure comprises a Board of branches and affiliates (collectively, “MCA” or “Company”), of 5 to 12 members, is determined by the Shareholder.
Directors, consisting of executive members responsible have as its principal activities the Development, The Board of Directors includes members with executive
for daily management and the smooth operation of the Engineering, Procurement, Construction and Operation functions and members without executive functions. The
company’s sub-holdings and corporate centre, as well of projects in the Energies, Urban Development, Chairman of the Board of Directors is elected by the
as non-executive members responsible for advisory Infrastructures and Healthcare business verticals. Shareholder.
and supervisory functions. Additionally, the structure
includes a supervisory framework, consisting of several MCA Holding has two Directors, Manuel Couto Alves, MCA aims to promote a meritocratic approach to its
Committees, and a Company Secretary who provides who also serves as Chairman, and IQ-EQ Management leadership. The elected Board of Directors comprises
support for meeting agendas and ensures the timely flow (Netherlands) B.V. professionals with a strong track record in diverse areas
of information. of activity and solid backgrounds, including exposure
According to new Dutch law relating to Management and to operations in various geographical regions and
Supervision (“Wet Bestuur en Toezicht”) applicable as at business sectors. Diversity should naturally emerge
13th April 2017, statutory provisions were introduced to from meritocratic selection, ensuring appropriate
ensure a balanced representation of men and women in representation in terms of gender, age and social
General Shareholders Meeting
management boards and supervisory boards of companies background.
governed by this Act. Balanced representation of men
and women is deemed to exist if at least 30% of the seats A new Board of Directors was elected for the 2023–2024
Statutory Auditor are filled by men and at least 30% are filled by women. As term in early 2023. Comprising 9 members, the new
the management board of M. Couto Alves Holding B.V. Board of Directors includes 7 executive Directors and 2
consists of two board members, and the Company has no non-executive Directors. The position of Chairman of the
Audit supervisory board, balanced representation of men and Board is held by executive Director Manuel Couto Alves,
Board of Directors
Committee women as required by the Law, is not applicable. the Company founder and ultimate beneficial owner, who
also holds an executive role. The executive members
MCA Holding is supported by a corporate governance of the Board of Directors meet weekly, while non-
Investment Company Secretary model composed of a Board of Directors and supporting executive Directors attend meetings quarterly or when
Committee Committees, whose members are elected by MCA extraordinary meetings are scheduled to address specific
Holding. These governing bodies, which are described in items on the agenda.
greater detail in the following sections, are responsible for
Sustainability managing the Group’s companies.
Committee

Board of Directors: The Board of Directors is the

Ethics and highest decision-making body below the Shareholder,
Conduct with broad management and representation powers. It
Committee
has the authority to deliberate on any matter related
to the Company’s management and to perform all acts
Corporate Centre related to the corporate purpose that are not within
Internal Audit
the competence of other corporate bodies, except for
matters exclusively reserved to the Shareholder. The
Board of Directors will request the Shareholder to
decide on operations, businesses and matters that entail
Energies Urban Development Infrastructures Healthcare
significant changes to the corporate structure, legal

Integrated Report 2023 Part I – Management Report 1. About MCA 18

Composition António Oliveira Vitor Hugo Lima Hugo Borges Fernando Marques da Costa Manuel Couto Alves Luís Amado Paulo Oliveira Elisabete Alves Carlo Amado
of the Board Executive Member
CCO & COO of Healthcare
Executive Member
COO of Infrastructures Iberia
Executive Member
COO of Urban Development
Non-Executive Member Executive Member
Chairman of the Board of Directors
Non-Executive Member Executive Member
CFO
Executive Member
COO of Infrastructures International
Executive Member
COO of Energies
of Directors
António Oliveira has nearly two Vitor Hugo Lima has accumulated Hugo Borges has over two Fernando Marques das Costa Manuel Couto Alves is part of a Luís Amado graduated in Paulo Oliveira brings 25 years Elisabete Alves has been with Carlo Amado brings over 15 years
decades of experience in Audit over 15 years of experience at MCA, decades of experience in the graduated in History at the third generation of a Portuguese Economics at the Technical of experience in the financial MCA for over 20 years, primarily of experience in Industrial and
and Risk, including 15 years at in the infrastructure, construction Financial Industry, primarily in University of Porto. He was business family involved in the University of Lisbon,and began sector, particularly in banking, in Portugal. With experience in Energy sectors, having worked
Deloitte, where he served as a and bioenergy sectors, primarily Private & Investment Banking, a deputy in the Assembly of the Construction sector. From 1986 his career teaching secondary asset management and civil construction, public works across 3 continents – South America,
manager and senior manager for in Angola. Initially responsible for namely at Barclays, Julius Baer, Portuguese Republic and advisor to 1998, Manuel Couto Alves education in Madeira, Portugal. insurance. He previously held and renewable energy, she was Africa and Europe, namely at
9 years. Registered as a Statutory the Financial Department, he later Standard Chartered, and Decisive. to the President of the Republic. was an equity partner in the He was a member of the Madeira the positions of CEO and CIO appointed as a Board Member Simoldes, Galp and Marfilpe.
Auditor since June 2014, he has served as President of the Board His expertise spans trade He was executive director of the ACA Group, overseeing global Regional Parliament and a member of BPI Asset Management, of the Group in 2017 and has He joined MCA in 2016 as the
been with the MCA Group since of Directors in Angola. Appointed corridors across Europe, Africa, Cahora Bassa hydroelectric plant construction of infrastructures. of the Portuguese Parliament. a division of the Caixabank held the position of COO of Global Business Development
2017, initially serving as Director as a Board Member of the Group Asia and Latin America. In 2020, in Mozambique. He is a university In 1998, he founded the MCA He was the Secretary of State Group, where he managed the Infrastructures International Manager and assumed the role
of Governance, Audit & Risk. in 2017, Vitor Hugo Lima has served he was appointed as an advisor professor, member of the Center Group, reflecting his inherent for Internal Affairs and for Foreign a portfolio of over €8 billion in business since 2021. of Head of Renewables in 2021.
In March 2021, António Oliveira as the COO of the Infrastructures to the MCA Board, focusing for History at the University of entrepreneurial spirit. Since then, Affairs and was Minister of AuM. Paulo Oliveira joined MCA Carlo Amado has been an
joined the Executive Board, Portugal business since 2021. on renewable energy, urban Lisbon and the Research Center he has spearheaded the company’s National Defence, of State and in January 2022, assuming the Executive Board member of MCA
currently holding the positions development and infrastructures. at the Lusófona University. MCA internationalisation process, of Foreign Affairs. He has taken role of the Group’s CFO. since 2023, serving as the COO
of Chief Corporate Officer and In September 2021, Hugo Borges non-executive Board member diversified its business activities non-executive roles in companies, of the Energies business.
COO of the Healthcare business. assumed the role of COO of the since 2021. and assembled a robust team of namely as chairman of EDP. He was
Urban Development business. over 1,000 employees. Between a professor at the University
2021 and the beginning of 2023, of Georgetown, in the United
he held the position of States of America and is a guest
Non-executive Chairman of the professor at the Higher Institute
Group, before resuming the role for Political and Social Sciences
of Executive Chairman in 2023. and at Nova University Lisbon.
He was awarded with the
Portuguese decoration Grã Cruz
da Ordem de Cristo and with
several other decorations conferred
by foreign governments. MCA
non-executive Board member
since 2021.
Integrated Report 2023 Part I – Management Report 1. About MCA 19
 Composition of the Board of Directors Expertise
By Age (%)
Name Engineering Infrastructures Economics / Finance Academy Energy Real Estate Capital Markets Audit Politics

Manuel Couto Alves X X X X

António Oliveira X X X
22
Carlo Amado X X
11 Elisabete Alves X X X X

Hugo Borges X X X

Paulo Oliveira X X X X

Vitor Hugo Lima X X X X

Fernando Marques da Costa X X X X

Luís Amado X X X X X X

Committees: MCA has established a series of specialised of the resources required for their implementation,
Committees to assist the Board of Directors in various and monitoring of compliance; assisting the Board
areas, including Audit, Investments, Ethics & Conduct, and of Directors with the development of operations in
Sustainability. These Committees usually meet quarterly different geographical areas.
67 and report to the Board of Directors. Committee
● 40 – 49
● 50 – 59 members are elected by the Board of Directors and · Ethics & Conduct Committee: monitoring the
● ≥60 may include individuals who are not on the Board. implementation of the Code of Ethics & Conduct
Committees should be composed of 3 to 5 members and the internal rules expressly associated with the
with demonstrated expertise in the areas involved. It is respective adoption and development; monitoring and
recommended that each Committee includes at least one clarifying doubts on the application of the Code and
Board member to facilitate information flow between validating exceptional situations, when duly justified;
By Gender (%) governing bodies and enhance agility. The aforementioned receiving and processing information transmitted under
11 Committees bear the following responsibilities: the Whistleblowing Procedure applicable at MCA and
Affiliated Companies; promoting employee training on
· Audit Committee: advising the Board of Directors matters of ethics and conduct.
on the follow-up and monitoring of internal audit
activities and control systems; appointing and dismissing · Sustainability Committee: assisting the Board
the person in charge of internal audit; issuing opinions of Directors with the integration of sustainability
and recommendations, as deemed appropriate; and principles into MCA’s management process and
monitoring the process of selecting and appointing the promoting strong sector practices in all activities, with
Statutory Auditors Firm, assessing its independence. a view to creating long-term value. Its functions include
proposing commitments, sustainability targets and
· Investment Committee: assisting the Board of metrics, as well as identifying the resources required
Directors in making decisions regarding operations, for their implementation and monitoring of compliance;
businesses and matters that entail significant changes to analysing MCA’s sustainability context, particularly
the corporate structure, legal position and equity of the in terms of energy transition, social responsibility,
Company, namely by analysing Investment Proposals human rights, safety and the environment, to support
endorsed by the Board of Directors and issuing the the strategy and development of operations in
89
● Female respective Opinions or Recommendations; proposing different geographical areas; issuing opinions and
● Male commitments, objectives and investment targets to recommendations, as deemed appropriate.
the Board of Directors, including the identification

Integrated Report 2023 Part I – Management Report 1. About MCA 20

 Company Secretary: The Company Secretary is Composition of the Committees
responsible for assisting the Chairman of the Board
Sustainability Ethics and Conduct
of Directors in fulfilling their duties, ensuring that the Audit Committee Investment Committee
Committee Committee
performance of corporate bodies complies with the
applicable legislation, articles of association and company Luís Amado Manuel Couto Alves Luís Amado Fernando Marques da Costa
Chair Chair Chair Chair
regulations. Additionally, the Secretary is responsible
for facilitating the flow of information, both in terms of COMPOSITION
Fernando Marques da Costa Fernando Marques da Costa Ana Perelra João Ribeiro Bastos
preparation of meetings and dissemination of decisions. FOR 2023/24
Member Member Member Member
MANDATE
The Secretary also provides assistance to other Company
Maria Couto
Committees. Pedro Olivelra Luís Amado
Alves
Paula Torres
Member Member Member
Member
Business Units: Our strategy is built upon four distinct % OF FEMALE
business verticals, as reflected in our organisational 33% male 67% male
& MALE 100% male 100% male
67% female 33% female
model. Each business vertical is overseen by a Chief MEMBERS
Operating Officer (COO), except for Infrastructures,
FREQUENCY
which is further subdivided into two business units OF MEETINGS
Quarterly
operating in different geographic areas (Infrastructures
International and Infrastructures Iberia). Additionally,
an Origination unit is responsible for identifying business
opportunities across the Group. The Group’s business
units are supported by a Corporate Centre, which
consolidates diverse competencies and collaborates with
the units to deliver value. Business Units and Corporate Center Structure

António
Manuel Carlo Elisabete Hugo Borges Paulo Vitor Hugo
Corporate Centre: MCA has established a Corporate Couto Alves
Oliveira
Amado Alves COO Urban Oliveira Lima
Centre for the purpose of providing operational support CCO & COO
Chairman COO Energies COO [Link] Development СFО COO Infras. IB
Healthcare
to the Group’s business units. As a business enabler, the
Corporate Centre is primarily responsible for defining BUSINESS Infrastructures Urban Infrastructures
Origination Healthcare Energies
UNITS International Development Iberia
Company-wide processes and procedures, monitoring
MCA’s activities related to the Corporate Centre itself, Corporate
Digital
Global
and collecting and analysing MCA’s performance data Transformation Innovation & People &
Responsibility & Engineering Business
& Information Technology Leadership
across various areas. The Business Units and Corporate Communication Services
Systems
Centre teams are managed by Executive Board Members.
Legal & Data Health, Safety,
CORPORATE Marketing Supply Chain
Protection Environment &
CENTER Management
Office Quality

Risk
Strategy,
Management,
M&A and
Compliance &
Sustainability
Cybersecuricy

Integrated Report 2023 Part I – Management Report 1. About MCA 21

1.6 Value Creation Model
MCA believes that the sustainability of an organisation’s
Inputs Empowering Lives Outputs
business model stems from the interconnectedness of
its various types of capital, namely financial, products
& services, human, social & relational, and natural capital.
for Generations
The dynamic process though which organisations strike a
balance between these capitals ultimately determines their
Financial Business Verticals
long-term sustainability. The value created, preserved,
Energies
Financial
or eroded over time translates into capital increases, €22 m €17 m €2 m Urban Development
decreases or transformations resulting from MCA’s Salaries Capex Total payments Infrastructures €213 m €52 m -€3 m
business activities and outputs. and Benefits to governments Healthcare Turnover EBITDA Net Debt

Sustainability Pillars
Products & Services
Caring for our Planet Products & Services
5 31k ton 3.7k tonnes Supporting healthy Living
Countries Raw materials Waste used for Promoting thriving Communities 285MW 2 29
where we operate used for bituminous energy production Cumulative Logistics projects Infrastructure
production installed capacity of concluded according projects executed
renewables projects to LEED Platinum
Responsible Government Practices executed standards
Human
529
New employees
96%
Weight of local
19%F / 81%M
Female and male
Human
hired employees employees Values
4.3 20 63%
Pioneer LTIFR Hours of training Employees eligible
Sustainability (lost-time injury per employee for benefits
Agility frequency rate) scheme opting for
Social & Relational Human at least 1
Trust
€0.5m 80% 7
Investment Suppliers & Sustainability-related Social & Relational
in social partners with associations in which
responsibility risk assessments we participate 54 675 58%
conducted Associations & Hours of Employees who
public institutions volunteering completed Ethics
supported & Compliance
training
Natural
100% 30.8 TWh 22k m3
Project sites where Total energy Water consumption Natural
a biodiversity risk consumption
assessment was 7.4k tonnes CO2e 3.8k tonnes 86 kg
conducted Scope 1 & 2 Waste generated Waste cleaned
emissions from beaches

Integrated Report 2023 Part I – Management Report 1. About MCA 22

 2.
Performance
in 2023

Integrated Report 2023 Part I – Management Report 23

 Creating Performance
Shared

Integrated Report 2023 Part I – Management Report 24

 2.1 Macroeconomic In Angola, the year was characterised by a significant Annual consumer price variation at end of period1
Environment decline in the value of the Kwanza during the 2nd and 3rd
quarters of 2023. This decrease was primarily driven by 25
high volumes of debt payments to international creditors
20
In 2023, the Euro Area saw inflation slowly approach the in May and the drop in oil prices, which led to the Kwanza
ECB’s long-term target of 2%. becoming the weakest African currency against the 15
Dollar. Owing to this depreciation, it is estimated that
10
The Euribor rates are expected to have peaked this year, Angola’s public debt surged to nearly 91.8% of the GDP,
although remaining below the record values recorded in representing an increase of 30 percentage points. 5

2008, and are predicted to decline throughout 2024. The 0

rise in financing costs has adversely affected the Group as Over the subsequent months, the Kwanza remained % 1.4% 3.1% 6.2% 3.7% 20.0%
a whole, notably impacting asset-owned projects, such as stable following intervention by the BNA, which restricted Portugal Spain Poland Germany Angola

those related to Circular Economy initiatives. Furthermore, liquidity supply and reinstated the fixed exchange rate
the heightened interest rate environment is dampening regime. It is anticipated that the currency’s depreciation will
investor interest in real-estate assets, namely the logistics resume once the BNA’s interventions cease.
Exchange Rate EUR:PLN1
parks included in our Urban Development portfolio.
The IMF contends that Angola’s substantial budgetary
flexibility in 2022 has heightened its vulnerability to external 4.5%
Poland was affected by an 8% increase in the value of the
Zloty against the Euro in 2023, with most of those gains shocks. Highlighting the need to adhere to the planned
occurring after a broad alliance of pro-European Union fiscal adjustments in 2023 and 2024, the IMF emphasises 3.5%
parties secured a majority in an October election. The their crucial role in maintaining debt sustainability. These
currency’s overall annual appreciation has had an unrealised directives appear to be reflected in the 2024 State Budget,
which allocates 60% to debt servicing, potentially impacting 2.5%
negative impact on MCA’s Circular Economy business, due
to its future negative exposure to the former. the ongoing projects of MCA in Angola.
1.5%
Advanced biodiesel prices continued the downward trend Jan–23 Apr–23 Jul–23 Sep–23 Dec–23
that followed the peak occurred at the end of February
2022, attributed to the onset of the war in Ukraine. This
trend persisted throughout 2023, with prices closing below
the values recorded at the end of 2022. This sustained Exchange Rate EUR:KWZ1
downward trajectory continued to exert pressure on
margins, thus impacting the profitability of our Advanced 7.5%

Biodiesel operations. 7.0%

In October, the Global Supply Chain Pressure Index 6.5%

appeared to be stabilising after reaching its peak in 6.0%

December 2021. In May, the index reached its lowest value
since November 2008, aligning with a period when global 5.5%

logistics experienced the fewest difficulties in 26 years, 5.0%

owing to declining transport costs. However, the world’s Jan–23 Apr–23 Jul–23 Sep–23 Dec–23
supply chains are facing new challenges due to ongoing
attacks on commercial ships in the Red Sea by Houthi
rebels, impacting MCA’s projects in Angola. 1 Thomson Reuters Eikon

Integrated Report 2023 Part I – Management Report 2. Performance in 2023 25

 Euribor 12m (dark) and 3m (light)1 Luibor 12m (dark) and 3m (light)2 Global Supply Chain Pressure Index (GSCPI)3

1 000 24% -1.5

-1.0

20%
-0.5

-0.0
500 16%
-0.5

-1.0
12%

-1.5

0 8,0% -2.0
Jan–23 Apr–23 Jul–23 Sep–23 Dec–23 Jan–23 Apr–23 Jul–23 Sep–23 Dec–23 Dec–22 Mar–23 Jun–23 Sep–23 Dec–23

Wibor 12m (dark green) and 3m (light green)1 Advanced Biodiesel Composite Index (€/m3)1

5.0% 1 300

4.8%

1 100

4.6%

4.4%
900

4.2%

4.0% 700
Jan–23 Apr–23 Jul–23 Sep–23 Dec–23 Jan–23 Apr–23 Jul–23 Sep–23 Dec–23

1
Thomson Reuters Eikon;
2
Angolan National Bank
3
New York FED

Integrated Report 2023 Part I – Management Report 2. Performance in 2023 26

2.2 Financial Performance thus capitalised in accordance with international financial Group Turnover Group Capex
standards. Additionally, over €3.8m of Capex were (€m) (€m)
allocated to the Circular Economy business segment,
Consolidated turnover (“Sales and services rendered” within the Energies business area, specifically for works
item of the Consolidated Income Statement) totalled on the Advanced Biodiesel plant in Maia. No significant
€213m in 2023, representing a 7% decrease compared investments in Research & Development activities were
with 2022. The 370 MW Solar and Rural Electrification made throughout the year.
projects in Angola, partly allocated to the Energies
business and partly to the Infrastructures business, As of 31 December 2023, the Group’s net debt stood
accounted for over 60% of the Group’s turnover in at -€3m, compared with -€2m on 31 December 2022.
2023. Additionally, the Urban Development business Net debt remained largely unchanged despite a year of 259 228 213 7 15 17
made a significant contribution to the Group’s turnover, significant investment. 2021 2022 2023 2021 2022 2023
amounting to €62m in the period.
The loans item includes all of the Group’s financial
In 2023, the Group’s EBITDA more than doubled year- liabilities, including bank loans, overdraft facilities,
on-year, reaching €52m. This growth was driven by the factoring, confirming, promissory notes and shareholder
progress of construction works in the 370 MW Solar loans. Turnover 2023 by business unit (%) Capex 2023 by business unit (%)
and Rural Electrification projects in Angola, as well as
invoicing for development and engineering works. Our Maintaining a low level of net debt is one of the Group’s
value-driven strategy has been instrumental in achieving primary strategic objectives. This minimal level of 0.61%
this EBITDA milestone, with our EBITDA margin indebtedness will enhance the leverage of relevant 12%
increasing from under 10% in 2022 to nearly 25% in 2023. projects whose contracts are expected to be executed in 14% 59%
We believe that by prioritising value over volume, we will the short term.
continue to increase our profitability over time.
Furthermore, the net cash position places the Group in a
In 2023, the Group’s Capex amounted to €17m, comfortable position to fulfil its financial obligations and
representing an increase from the €15m recorded in confidently pursue its value-driven growth strategy, even 29%
2022. Of this Capex, €6.2m were invested in the Angola amidst challenging macroeconomic environments. 58% 25%
Rural Electrification project, primarily for development
activities. MCA is building in-house competencies ● Energies ● Energies 2%
through a specialised workforce to deliver competitive ● Urban Development ● Urban Development
solutions to its clients. In this sense, the Group invests ● Infrastructures ● Infrastructures
● Others ● Others
in employee skills development to ensure readiness for
current projects and the future pipeline. These costs are

EBITDA 2023 Group EBITDA Group Net Debt

by business unit (€m) (€m) (€m)

51 0 2 0 52 13 23 52 -1 -2 -3
Energies Urban Development Infrastructures Others Total 2021 2022 2023 2021 2022 2023

Integrated Report 2023 Part I – Management Report 2. Performance in 2023 27

In 2023, EBIT reached €44m, more than doubling year- The order book value shown in the image above includes Order book
on-year due to improved operational performance. the impact of the “Angola Rural Electrification project”, by business unit (€m)
Financial results had a negative impact of €2m (compared signed in May 2022, which contributed a total amount of
with -€4m in 2022), while Income tax stood at €6m €1,028m. This project is partly allocated to the Energies 979
(compared with €1m in 2022). Finally, non-controlling business and partly to the Infrastructures business.
interests stood at -€2m in 2023 (compared with €1m in
2022), primarily associated with the Group’s companies Energy projects account for approximately 40% of the
in Angola and Portugal, where it holds a majority stake. Group’s order book and include projects in the areas of 2 466
This year, financial performance was driven by results in Renewable Energies (39%) and Circular Economy (1%).
MainBio, which operates the Advanced Biodiesel Plant. Infrastructure projects represent about 56% of the order
book and include projects developed in Iberia (<1%)
1 390
As a result of the operational and financial performance and International projects (approximately 56%). Urban
98
depicted in the graph, net profit attributable to MCA Development projects represent nearly 4% of the order
shareholders in 2023 totalled €38m, compared with book and primarily include Logistics projects developed ● Energies
€12m in 2022. in Spain. ● Urban Development
● Infrastructures
The MCA Group’s order book comprises the contracts The order book reflects the work performed by MCA
awarded for execution and internally sanctioned. When to secure projects that will add value to the group and
contracts are denominated in a currency other than the to society at large, with relevant developments across
Euro, the amounts are converted using the exchange rate different geographical regions and business verticals. Group Financial Results (€m) Group Net Profit (loss)
as of 31 December 2023. The vast majority of contracts It is also the result of the strong track record that (€m)
included in the order book are denominated in Euros or MCA has built over time by collaborating with multiple
U.S. Dollars. stakeholders to deliver solutions on time and within
budget, in order to meet clients’ needs. We are confident
The value of the order book as of 31 December 2023 in our ability to successfully deliver this order book and
stood at €2,466m, with projects primarily located in continue to add valuable projects to our pipeline.
Angola, Spain, Portugal and Poland.

-2 12 38
-11 -4 -2 2021 2022 2023
2021 2022 2023

Group Net Profit breakdown

(€m)

44 -2 0 -6 2 38
EBIT Financial results Equity method Income tax Non Controlling Net profit
Interest

Integrated Report 2023 Part I – Management Report 2. Performance in 2023 28

2.3 ESG Data CARING FOR OUR PLANET

Renewable Energy

Main SDG
Action Metric Unit 2022 2023 Target 2023 Target 2025 ESG
addressed

Cumulative installed capacity of projects

MW 370 492 ✓ 666 E
developed (Development) 492
Development of renewable energy projects
Cumulative installed capacity of projects
MW 285 285 ✓ 370 E
executed (EPC) 285

Consumption of electricity from renewable Weight of electricity consumed in

sources in own facilities own facilities from renewable sources
% c.9 82 ✓ 100% in Europe E
70

Circular Economy

Main SDG
Action Metric Unit 2022 2023 Target 2023 Target 2025 ESG
addressed

Development of circular economy projects

Cumulative installed capacity of
ktpa 16 16 ✓ c.150 E
projects developed (feedstock) 16

Consumption of waste for energy

ton 188 3,682 ✗ >90,000 E
production >5,000
Reutilisation of waste for energy
production

Energy produced from waste Gj 3.757 84,241 ✗ >450,000 E

>140,000

Recycle of waste in own facilities Percentage of own facilities with recycle bins % 100% 100% ✓ 100% E
100%

Integrated Report 2023 Part I – Management Report 2. Performance in 2023 29

 Efficient utilization of natural resources

Main SDG
Action Metric Unit 2022 2023 Target 2023 Target 2025 ESG
addressed

Safeguard biodiversity in areas Percentage of projects where a biodiversity

% 100 100 ✓ 100 E
where we operate risk assessment was conducted 100

Water consumption in the offices

(from public supply) m3 838 1,579 E

Water consumption in projects/ More efficient use

Reduction of Water consumption m3 15,787 20,657 E
Production (from public supply) of water

Water captured m3 166 607 E

Decarbonisation

Main SDG
Action Metric Unit 2022 2023 Target 2023 Target 2025 ESG
addressed

Reduce scope 1 & 2 GHG emissions Scope 1 & 2 emissions tCO2e 10,174 7,353 LT ambition: Net Zero E

Promote International environment Urban Development facilities

LEED cert. Platinum Platinum ✓ Platinum E
certifications in Logistics projects with LEED certification (or equivalent) Platinum

Integrated Report 2023 Part I – Management Report 2. Performance in 2023 30

 SUPPORTING HEALTHY LIVING

Health & Safety at work

Main SDG
Action Metric Unit 2022 2023 Target 2023 LT Ambition ESG
addressed

Reduce the frequency and severity of injuries

Lost Time Injury Frequency Rate (LTIFR) # 4.3 4.3 ✗ Zero accidents S
among employees and workers <4

Respect for human rights

Main SDG
Action Metric Unit 2022 2023 Target 2023 Target 2025 ESG
addressed

Promote gender equality at all

Weight of female employees % 17 17 ✗ 21
S
levels of the organisation 19 (previously: 22)

Talent attraction, Retention and Development

Main SDG
Action Metric Unit 2022 2023 Target 2023 Target 2025 ESG
addressed

Hire new talent Number of new hires # 547 529 ✗ 900 S

700

Investment in training per employee € 53 65 ✗ 150 S

100
Invest in training and development
programs for employees

Number of hours of training per employee # 15.6 20 ✗ 30 S

25

Integrated Report 2023 Part I – Management Report 2. Performance in 2023 31

 PROMOTING THRIVING COMMUNITIES

Access to key infrastructure

Main SDG
Action Metric Unit 2022 2023 Target 2023 Target 2025 ESG
addressed

Enable access to water, roads & other key Number of Infrastructure projects
# 31 29 - S
infrastructure executed

Access to basic needs and education

Main SDG
Action Metric Unit 2022 2023 Target 2023/4 ESG
addressed

Invest in social responsibility projects in

Total investment in social responsibility €m 2.1 0.5 3 S
communities where we operate

Local hiring

Main SDG
Action Metric Unit 2022 2023 Target 2023 Target 2025 ESG
addressed

Expected
Promote local hiring Weight of local employees % 96 96 - to decrease S
towards 85%

Integrated Report 2023 Part I – Management Report 2. Performance in 2023 32

 RESPONSIBLE GOVERNANCE PRACTICES

Partnerships for sustainable development

Main SDG
Action Metric Unit 2022 2023 Target 2023 Target 2025 ESG
addressed

Promote the development of projects with Cumulative value of projects secured through ✓
€m 550 1,578 c.2,500 E|S|G
recourse to export credit facilities export credit facilities >1,500

✓ Extract value from

Increase MCA’s partnerships with associations Active partnerships # 4 7 formed partnerships E|S|G
6 (previously: 14)

Ethics & Compliance

Main SDG
Action Metric Unit 2022 2023 Target 2023 Target 2025 ESG
addressed

Promote participation in Ethics & Compliance Percentage of employees that complete Ethics & ✗
% 41 58 80 G
training sessions Compliance training 65

Sustainability in the value chain

Main SDG
Action Metric Unit 2022 2023 Target 2023 Target 2025 ESG addressed

Ensure risk assessment of suppliers Percentage of suppliers and partners with risk ✗
% 88 80 100 E|G
and partners assessment conducted 90

Transparency

Main SDG
Action Metric Unit 2022 2023 Target 2023 Target 2025 ESG
addressed
Integrated Integrated
Report Report ✓
published published
Public disclosure of Integrated Report, with non- Annual publication of Integrated
Disclosure of financial & non-financial Information - in 2023, in 2024, G
financial disclosure according to GRI framework Report aligned with
regarding regarding
performance performance Sustainability best-practices
during 2022 during 2023

Integrated Report 2023 Part I – Management Report 2. Performance in 2023 33

 3.
Sustainable
Strategy

Integrated Report 2023 Part I – Management Report 34

The Sustainable Development Goals (SDGs)
establish global sustainability targets for 2030
and aim to mobilise efforts worldwide from
governments, businesses and civil society.
At the MCA Group, we are committed to
actively contributing to the SDGs by aligning
our strategy and measuring results over
time. We engage with internal and external
stakeholders to identify key positive and
negative impacts across our value chain.

Focusing on sustainability, we seek to create

value, not only for the current but also for
future generations, a commitment reflected
in our purpose: “Empowering Lives for
Generations”.

Creating
Shared

Sustainability

Integrated Report 2023 Part I – Management Report 35

 3.1 Our beacon of sustainability Caring for our Planet Supporting Healthy Living
Promoting Thriving
Communities
Responsible Governance
Practices

GRI 301, 302, 303, 304, 305, 306, 308 401, 403, 404, 405, 406, 414 202, 413 2/4, 205, 308, 414
The reflection on materiality conducted in 2022 enables SDG
us to understand the evolution within each material topic.
This is a long-term endeavour, but one to which we are
dedicated daily, as we believe it is the sole means to
Material · Renewable Energy; · Health & safety at work; · Access to key infrastructure; · Partnerships for sustainable
maximise our impact. Topics · Circular Economy; · Respect for human and · Access to basic needs & development;
· Efficient utilisation of Natural labour rights; education; · Sustainability in the value chain;
Creating and safeguarding long-term shared value is a Resources; · Talent attraction, retention · Local hiring. · Ethics & compliance;
· Decarbonisation. and development. · Transparency.
key pillar of MCA’s strategy, encompassing the principles
of caring for our planet, supporting healthy living and
promoting thriving communities. These guiding principles
are distinctly reflected in our Sustainability Policy.
□ Renewable energy
Achieving MCA’s strategy through Value-Driven Growth
and Sharing Value with the environment and society can
only be realised through compliance with Responsible ○ Access to key infrastructure
Governance practices.

We believe that implementing robust and agile governance

■ Health & safety at work
practices will empower us to deliver long-term value and Local hiring ○ □ Circular economy
uphold an ethical business conduct across our value chain,
thereby contributing to the achievement of certain UN
Sustainable Development Goals. ■ Respect for human
and labour rights

Topics impacted by MCA

Decarbonization □ □ Efficient utilization ● Partnerships for
of natural resources sustainable development
Access to basic ○ ● Sustainability in the value chain
needs & education ● Ethics
& compliance
Transparency ●

■ Talent attraction, retention

and development
Topics with impact on MCA

□ Caring for our Planet ■ Supporting healthy Living ○ Promoting thriving Communities ● Responsible Governance practices

Integrated Report 2023 Part I – Management Report 3. Sustainable Strategy 36

 7. AFFORDABLE & CLEAN ENERGY
• Development of renewable energy projects
• Consumption of electricity from renewable sources in own facilities 3.2 Sustainability across In 2023, we raised our materiality threshold for
conducting risk assessments on new suppliers and
• Energy production from waste
the Value Chain partners. We achieved a compliance rate of 80% for
8. DECENT WORK & ECONOMIC GROWTH risk assessments conducted above this threshold, which
• Reduce the frequency and severity of injuries among employees and workers fell short of our target for the year. This shortfall was
• Promote gender equality at all levels of the organization When delivering solutions to our clients, we recognise the
• Hire new talent primarily due to misinterpretation of internal procedures,
• Invest in training and development programs for employees importance of assuming responsibility not only for what we resulting in the establishment of business relationships
• Invest in social responsibility projects in communities where we operate can directly control but to influence various stakeholders without conducting a prior due diligence process.
• Promote local hiring across the value chain to adhere to industry best practices,
• Promote participation in Ethics & Compliance training sessions
from environmental, social and governance perspectives. We aim to approach the 100% goal through the
11. SUSTAINABLE CITIES & COMMUNITIES This is achieved through the following initiatives: implementation of new digital tools and regulations aimed
• Promote International environment certifications in Logistics projects
• Enable access to water, roads & other key infrastructure at ensuring the conduction of risk assessments and due
1. Conducting a due diligence process and risk diligence processes before the establishment of business
12. RESPONSIBLE CONSUMPTION & PRODUCTION assessment before entering into business relationships relationships and invoicing. Additionally, the Group will
• Development of circular economy projects with third parties, in accordance with our
• Reutilization of waste for energy production conduct periodic reassessments of existing suppliers and
• Recycle of waste in own facilities Counterparty Risk Assessment procedure. broaden the scope of this procedure to encompass a
• Safeguard biodiversity in areas where we operate wider range of counterparties.
• Reduction of Water consumption 2. Ensuring that all written agreements signed with third
• Reduce scope 1 & 2 GHG emissions
parties include a precise description of the services
17. PARTNERSHIPS FOR GOALS to be provided, the rationale for the counterparty’s
• Promote the development of projects with recourse to export credit facilities compensation, the payable amounts and a commitment
• Increase MCA’s partnerships with associations
• Ensure Risk assessment of suppliers and partners from the counterparty to maintain compliance with
• Disclosure of financial & non-financial information applicable anti-corruption laws and the MCA Code
of Ethics and Conduct. This practice enables MCA
to conduct routine audits and promptly identify any
compliance violations.

3. When subcontracting work to suppliers, alongside

addressing social risks, as outlined in our Code of
Ethics and Conduct, we may also include contractual
clauses pertaining to environmental aspects. These
clauses often relate to Environmental Management
Plans and Plans for the Prevention and Management
of Construction or Demolition Waste, as well as
applicable local laws, particularly concerning waste
management.

If a third party is unable or unwilling to comply with

contractual clauses, the reasons for the breach should
be documented. If deemed valid, the reasons in question
should be submitted to the Risk and Compliance team for
analysis, in order to determine whether the third party is
acceptable under the circumstances.

Integrated Report 2023 Part I – Management Report 3. Sustainable Strategy 37

3.3 Stakeholder Engagement 3.4 Collaboration with We are also part of the following associations and pacts:

Associations
Engagement with stakeholders is key to the realisation In October 2023, we joined the United Nations Global
of MCA’s strategy. We maintain regular relationships Compact, pledging to uphold the ten universally accepted
and dialogues, which enable us to identify and manage In MCA, we firmly believe that only through collaboration principles in the areas of human rights, labour, the
strategic sustainability aspects affecting both society and can we collectively achieve the economic, environmental environment and anti-corruption. We participated in the
our business. and social goals set on a global scale. We recognise the celebration of the 20th anniversary of the United Nations
importance of playing an active role in addressing these Global Compact Portugal Network and have utilised the
We aim to develop engagement strategies and objectives. Therefore, we selectively choose to participate UNGC Academy, offering our employees several learning
communication channels tailored to the needs of in associations aligned with our purpose and dedicated tools on sustainability topics.
each stakeholder. to achieving common goals, on a global, national and
local scale. In 2023, we sustained our active involvement
Stakeholder Engagement strategy in various associations and pacts, and are proud to have
Shareholders Ensuring transparency regarding key decision-making joined two new fundamental associations:
factors and regular reporting on financial and non- Guimarães Climate Pact: we became a member in June
financial performance
2023, pledging to work towards carbon neutrality in
Employees Conducting periodic organisational climate surveys the city of Guimarães by 2030. We believe it is our
to gauge employees’ perceptions of the company’s responsibility to actively contribute to developing and
processes, policies, and practices. Disseminating
important and up-to-date information about the company implementing solutions aimed at achieving the energy
through internal communication channels transition and combating climate change, particularly in
Suppliers Promoting alignment with MCA’s Code of Ethics and the city where the Company was born – Guimarães.
Conduct and Sustainability Policy. In the future, MCA
intends to develop a more sustainability-focused due
diligence process to assist in analysing new suppliers.

Clients Promoting the implementation of communication tools

that enable continuous feedback and evaluation on the
quality of MCA’s products and services. In the event of a
complaint, initiating an assessment process and applying
corrective measures, where appropriate. MCA is certified
by ISO 9001 Quality Management

Communities Engaging with local communities during the analysis of the

impact of new projects. Supporting local communities
through social responsibility programmes. Promoting
local hiring and providing on-the-job training to local
communities.

Partners Establishing partnerships with business developers,

financers, suppliers, local governments and other
stakeholders to develop projects that contribute to
value-driven growth and value sharing.

Financial Providing financial and non-financial performance

indicators in a transparent manner to enable a
comprehensive analysis of MCA as a borrower and/or
promoter of financing solutions, as well as its capacity to
execute projects for clients, including export financing.
Collaborating with financers to secure funding for
projects that actively contribute to the achievement of Partnerships
the United Nations SDGs. for sustainable Metric 2022
2023 Target 2023
development Extract value from formed

6
partnerships (previously: 14)
Increase MCA’s
partnerships with 4 7 Target 2025
associations Active partnerships

Integrated Report 2023 Part I – Management Report 3. Sustainable Strategy 38

 4.
Risk Management
& Compliance

Integrated Report 2023 Part I – Management Report 39

 Protection
Creating
Shared

Integrated Report 2023 Part I – Management Report 40

 4.1 Risk Management Risk Assessment
Evaluation Criteria
Risk Management
Risk plays a crucial role in MCA’s strategy, serving not THIRD LIN
EO
only to mitigate incidents but also as an opportunity for • Internal Au F DEF
dit EN
SE
continuous improvement, learning and impact creation.
SECOND L
• Planning & INE OF
MCA’s risk management process is aligned with a long- • Risk Man Contro DEFE
a
term vision and the Risk Management Policy to identify • Legal & D gement l NS
E
,
Sustainab PO / C Com

Ris
tio
events that could hinder the achievement of business o
Environmility and mpa plian

kE
fica
ent n c
objectives, while respecting Risk Appetite and Risk and Healt y Se e &

val
nti
Qu h, S cre

uat
Ide
Tolerance. alit af t

Cy ry
FIRST L y e

ion
be
Risk

a ,
INE

rs e
ty
• Local
R OF
• Busine isk O DE

cu
The risk assessment and identification process at MCA is

rity
ss L ffic F
ine er
integrated across all teams and companies to enable the

EN
s&

s C or
SE
achievement of the following primary objectives:

po r
· Ensuring risk accountability across MCA (risk-based

ate C
thinking);

entre
· Improving the risk identification process;
· Integrating risk mitigation with risk management
responsibilities;
· Implementing controls to minimise negative effects
and maximise opportunities;
· Providing Management with a risk management vision

Com
that supports decision-making.

mu
nica

n
atio
t
MCA’s approach to risk management is structured around

ion

itis
&M

ior
three lines of defence, where multiple levels within our

Pr
on
organisation are involved in the Internal Control System1,

ito
as shown in the figure on the right.

rin
g
Risk Response

Daily risk management activities and internal Risk Assessment

control aligned with the business strategy and
internal regulations. Local Risk Officers serve as The following risk categories
focal points between the Businesses / Corporate assessed by MCA:
and Risk Management

Definition of procedures and rules, and • External Risk

monitoring of internal control and risk levels. • Business Risk
• Financial Risk
Internal control and risk management • Reputational Risk
system supervision, auditing and evaluation.
1
MCA’s Internal Control System is based on the three-line defence model of the Monitoring and evaluation of risk response • Operational Risk
Institute of Internal Audit (IIA) and the ISO 31000 Standard. efficiency and effectiveness. • Information & Technology Risk

Integrated Report 2023 Part I – Management Report 4. Risk Management & Compliance 41
Direct Speech Vera Sá Risk culture at MCA The impact of risk management on MCA’s
strategy
Head of Risk Management, MCA’s risk culture is defined by a dedication to
implementing an integrated risk management process Risk management at MCA significantly impacts both the
Compliance & Cybersecurity focused on risk mitigation, potential impacts and risk present and the future. It presently enables the Group to
identification process improvement. This commitment anticipate and implement measures to mitigate risks with
is aligned with MCA’s organisational culture, which potential adverse impacts, as well as improve operational
prioritises innovation and sustainability. efficiency. In the future, it prepares MCA to address
emerging uncertainties and challenges, fostering long-term
MCA’s risk culture is driven by the implementation of risk sustainability and resilience.
assessment procedures and processes, namely project
and counterparty risk assessment processes tailored to MCA’s risk management also has a positive impact
MCA’s strategy and project types. Close proximity to the on sustainability and innovation. For instance, MCA
business, particularly during entry into new businesses integrates renewable technologies into its energy
and/or geographical regions, or when formalising relevant projects, which helps mitigate the financial and
partnership agreements, enables MCA to effectively environmental risks associated with fossil fuels, in addition
identify, assess and manage operational risks. This to enhancing long-term viability.
proactive approach helps minimise the impact on its
business and reputation, as well as prevent decisions that MCA views risks as opportunities to drive business
deviate from risk appetite. A key pillar in the decision- forward through innovation and proactive adaptation.
making process, this risk culture enables MCA to swiftly Risks are perceived as challenges that can be transformed
respond to change, embrace innovation and navigate the into competitive advantages, enabling the organisation
impact of change on the business. to explore new markets and technologies, particularly in
renewable energy, circular economy and sustainable urban
development.

For instance, when facing the risk of regulatory changes

in sustainability, MCA can proactively adopt advanced
green practices and technologies, positioning itself not
only to comply with future regulations but also as a leader
in sustainable construction/engineering. Furthermore,
by identifying the risks associated with the projects
undertaken, MCA can assess and improve its processes to
ensure greater efficiency and safety. On the other hand,
the identification of potential compliance risks prompts a
review and strengthening of internal processes, increasing
stakeholder confidence and improving the Company’s
reputation in the global market.

It is through meticulous risk assessment and management

that MCA is able to develop and implement relevant
and impactful projects in challenging locations, involving
a diverse array of institutions, countries and other
stakeholders, each with distinct risk profiles. MCA’s risk
assessment and mitigation strategy enables us to balance
these varied risk profiles, facilitating the development,
implementation and delivery of innovative projects in
challenging geographical regions.

Integrated Report 2023 Part I – Management Report 4. Risk Management & Compliance 42
 4.2 Risk Assessment Risk
Chief Management,
Board of Internal Risk Local Risk
Corporate Compliance &
Directors Audit Owner Officer
Officer Cybersecurity
Risk assessment relies on an objective methodology Department
to determine of the likelihood and potential impact of
each risk, aiding MCA in understanding its exposure to
CONTEXTUALIZATION
inherent risks. AND AWARENESS
I I R I

Risk management entails comparing identified risk scores

with predetermined risk levels and tolerance limits. IDENTIFICATION OF RISK A I R C
Mitigation measures should be prioritised based on the
level of exposure and may involve one or more response
alternatives. EVALUATION CRITERIA A I R

The outcomes of the risk assessment process form

the basis for addressing residual risks. After analysing
RISK EVALUATION A I R
response options, such as avoidance, reduction, sharing or
acceptance, mitigation measures are defined to support
the response to the risks in question:
RISK PRIORITISATION A I R
· Risk avoidance: No alternative is deemed acceptable
or feasible to reduce the likelihood or impact of the
risk, warranting the abandonment of the associated RISK RESPONSE I A I R
business, project or process.
· Risk reduction: Implementation of measures
aimed at reducing the probability of occurrence or MONITORING & REVISION I I A R
mitigating the impact of risks.
· Risk sharing: Reducing the probability of occurrence
or impact of risks by transferring or sharing a portion COMMUNICATION
C C R/A I
of the risk through financial instruments, such as OF CORPORATE RISKS
contracts or insurance.
· Risk acceptance: No measures are implemented
COMMUNICATION
to influence the likelihood or impact of the risk; OF OPERATIONAL RISKS
I I R/A I C/I C/I
however, the event must be monitored through
controls for periodic reassessment.

The Risk Owner is responsible for proposing risk

treatment measures to the Risk Management, Compliance
& Cybersecurity Department and for subsequently
assessing the effectiveness of the implemented measures.
A more detailed view of the RACI (R – Responsible; A
– Accountable; C – Contributor; I – Informed) matrix is
presented.

Integrated Report 2023 Part I – Management Report 4. Risk Management & Compliance 43
4.3 Main Risks Risk Categories Risk Risk Description Mitigation Measures (non-exhaustive)

EXTERNAL Country Angola holds considerable weight in MCA’s Turnover, primarily due to Country Risk Analysis/Assessment, particularly during the commercial
MCA has identified the main risks associated with its the execution of the 370 MW Solar Photovoltaic Project and the Rural stage.
Electrification Project. The current OECD Country Risk Rating for Angola is
activities. A monitoring and mitigation strategy has 6 (on a scale of 1 to 7, with 1 being the lowest risk and 7 being the highest).
been outlined for each risk, in accordance with the
methodology previously described. Exchange Rate The financing for MCA’s primary projects will be in Euros, thus mitigating Taking proactive steps to maintain a net and generally balanced structural
the exchange rate risk. However, certain supply contracts may be executed exposure to various currencies; preferring projects financed in hard
in other currencies, as MCA relies on multiple suppliers, from different currency when entering into contracts.
geographical regions.

Price Of Raw Owing to its operational activities, MCA is exposed to fluctuation in raw Monitoring the price evolution of key commodities; planning and
Materials material prices. Price variability, driven by shifts in supply and demand, can negotiating the procurement of essential goods, according to expected
have a major impact on business profitability. operational needs.

COMMERCIAL Counterparties Possible non-compliance by key counterparties with anti-corruption Implementation and communication of the counterparty
and bribery regulations and legislation, mainly referring to Suppliers risk assessment policy.
and Subcontractors. This risk encompasses the potential for failure in
technical and/or financial execution performance, as well as non-compliance
with labour, human rights, quality, safety, corruption and bribery regulations
and legislation.

Backlog Despite operating across 4 business verticals and 3 geographical clusters, Monitoring backlog evolution regularly; establishing KPIs and targets on a
MCA relies heavily on a limited number of high-value projects. MCA’s regular basis, in order to ensure adequate production levels.
order book is vital for sustaining its operations and ensuring stability,
which emphasises the importance of maintaining a stable Backlog ratio
(backlog vs. production).

Sustainability in
the value chain Metric

Target 2025
Ensure risk assessment 2022
2023 Target 2023
of suppliers
and partners 100
90 %
Percentage of suppliers and
partners with risk assessment
88 %
80 %
%

conducted

Integrated Report 2023 Part I – Management Report 4. Risk Management & Compliance 44
 Risk Categories Risk Risk Description Mitigation Measures (non-exhaustive)

FINANCIAL Liquidity Liquidity risk associated with the lack of sufficient cash to meet business Diversifying the funding base across multiple banking entities and in the
needs, namely due to reliance on meeting project milestones. various markets where MCA operates; establishing financing lines based
on the cash flow plan and treasury forecast.

EBITDA Ability of the businesses to generate EBITDA in accordance with MCA’s Continuous monitoring of KPIs and financial indicators; understanding
budget plan and strategic plan. and justifying major variations on a regular basis, and reporting to the
Board.

Covenants Compliance with Covenants across different Business Units, Continuous monitoring of Covenants; reporting to the Board.
with impact on MCA.

Business High dependence on a limited number of projects. The business offer of the Diversifying projects across multiple geographical regions and technologies;
Concentration various Business Units must adapt to remain competitive in the respective proactively engaging in the analysis of innovative solutions and new
in Few Clients/ markets. approaches to high-value projects that improve MCA’s business image.
Partners

REPUTATIONAL Anti-Corruption Given their specific nature, MCA’s operational activities involve the Ensuring the effective implementation of the Code of Ethics and Conduct
deployment of human resources in regions with a high risk of corruption, and Anti-Corruption Policy; communication and promotion of the MCA
which exposes MCA to possible breaches of standards, rules and legislation. Ethics Line.

Sustainability Compliance with approved ESG Targets. There is a growing global concern Design and implementation of procedures to ensure compliance with
& Environment for the environment, particularly regarding climate change. Therefore, international commitments assumed by MCA.
MCA’s dedication to sustainability and environmental issues is both a
commitment and an objective to be met.

OPERATIONAL Human Resources MCA’s success largely depends on its ability to attract, retain and develop Design and implementation of Human Resources policies, involving
talent, namely for projects undertaken in remote and difficult-to-access improvements to working conditions, as well as benefits and salary
locations. packages that contribute to retaining and attracting talent.

Health & Safety There is a growing global concern for sustainability, particularly regarding Development and promotion of a safety culture; implementation of
occupational accidents. Therefore, MCA’s efforts to eliminate occupational preventive measures to reduce professional risks; regular conduction of
accidents represent both a commitment and an objective to be met. awareness-raising initiatives.
Ensuring health, safety and social well-being across all geographical regions
where MCA operates is a key goal to pursue.

Internal Control An Internal Control System, comprising documented policies and procedures Continuous improvement of internal control systems; design of agile,
(regarding compliance with applicable legal and regulatory standards and flexible procedures that effectively and efficiently support business
requirements), is essential for the business continuity and the adequate performance.
functioning of MCA’s operations.

Similarly, the Digital Transformation Project, along with the documentation

and review of MCA’s key processes and policies, is of paramount importance.

Supply Chain Supply chain disruptions, namely material or equipment delivery failures Diversifying the Supplier base and geographical regions; ensuring the
or delays, can affect project execution schedules and consequently impact effective implementation of a qualification process for Suppliers.
MCA’s business.

INFORMATION & TECHNOLOGY IT MCA is exposed to several types of information risks, namely cyber risks, Design and implementation of an Information Security Policy; continuous
due to the increasing sophistication and technological integration of its improvement of internal security systems; training and awareness actions
systems. on information security principles.

Integrated Report 2023 Part I – Management Report 4. Risk Management & Compliance 45
4.4 Risk of Corruption and MCA RISK ASSESSMENT The risk of corruption risk is factored into MCA’s risk assessment process. Given the nature of its operations and geographic footprint,

Conflicts of Interest MCA is exposed to potential risks of infringements. MCA has robust measures in place to both identify and mitigate the risk of corruption.

WHISTLEBLOWING AND “SPEAK UP” PROCEDURE MCA is committed to conducting all business and partnerships with integrity and professionalism, ensuring fairness and honesty while
Given the increasing awareness of the impacts of corrupt complying with applicable legislation. Nonetheless, it is recognised that all organisations face the risk of unforeseen circumstances or
practices and related infringements and the efforts inadvertent facilitation of malpractice. Therefore, MCA has a duty to identify and take measures to remedy any instances of malpractice,
undertaken by organisations to implement effective particularly regarding issues such as fraud, bribery and corruption.
prevention and mitigation measures, anti-corruption
legislation and regulations have been strengthened in By fostering a culture of openness within MCA, we aim to prevent malpractice before it occurs. MCA encourages all stakeholders to
recent years across various jurisdictions, with a view to raise any concerns they may have. To facilitate this task, we have developed a “Speak up” procedure and established an online reporting
minimising and controlling the risk of corruption and channel to ensure the confidentiality (or even anonymity) of reports and improve the effectiveness of the reporting process. The
related infringements. reporting channel can be accessed through the following link: Whistleblower Software.

TRAINING MCA has implemented a training programme on corruption prevention. Throughout 2023, the Risk Management, Compliance and
Risk of corruption and related infringements Cybersecurity team collaborated with the HSE&Q Department to develop and deliver in-room, e-learning modules and project-specific
training sessions.
As part of its continuous improvement process, MCA has
implemented several initiatives aimed at strengthening its Specific training is tailored to employees identified as being more exposed to risk of corruption, based on MCA’s risk mapping.
culture of Compliance and Integrity, namely the execution
ANTI-CORRUPTION AND BRIBERY POLICY MCA has adopted a zero-tolerance policy towards bribery and corruption, prohibiting such practices in any form, whether directly or
of the Plan for the Prevention of the Risks of Corruption
and Related Infringements (PPR), in accordance with through third parties, anywhere in the world. This zero-tolerance approach underscores MCA’s commitment to actively mitigating,
the General Regime for the Prevention of Corruption; deterring and detecting bribery and corruption.
the revision of the Code of Ethics and Conduct and the
Whistleblowing Policy; the implementation of training We have an Anti-Corruption and Bribery Policy in place that comprehensively addresses topics such as bribery; offers and hospitality;
and clarification sessions, such as “MCA Talks – MCA’s facilitation payments and commissions; donations and sponsorships; and lobbying, amongst others.
People and Compliance”; and the introduction of an
updated process for assessing Counterparties’ risks. Additionally, in compliance with Portuguese Decree-Law No. 109-E/2021, of 9 December 2021, which establishes the General Regime
These initiatives contribute to raising awareness and for the Prevention of Corruption (RGPC), we have adopted and implemented a Plan for the Prevention of the Risks of Corruption and
reinforcing MCA’s commitment to compliance across the Related Infringements (PPR). This plan establishes a series of measures aimed at identifying, evaluating, monitoring and mitigating the
geographical regions where the Group operates. risks of corruption and other infringements that may affect MCA, its employees, business partners and stakeholders.
Corruption risks are continuously reviewed by the Risk Management, Compliance & Cybersecurity Department through ongoing
The main mitigation measures concerning the risk of assessments and specific checks.
corruption and related infringements are described in the
COUNTERPARTY RISK ASSESSMENT MCA evaluates the risks associated with Counterparties prior to establishing business relationships. This assessment process includes
following table:
evaluating the risk of corruption, among other risks. By conducting this proactive evaluation, MCA aims to minimise associations with
Counterparties involved in corrupt practices.

CODE OF ETHICS AND CONDUCT MCA’s Code of Ethics and Conduct serves as a guiding framework for its employees, business partners and stakeholders, defining
ethical values and principles, as well as clear rules and procedures for business relationships. The document was revised in 2022 to
include the guidelines outlined in Decree-Law No. 109-E/2021 (Portuguese legislation).

Integrated Report 2023 Part I – Management Report 4. Risk Management & Compliance 46
 Conflicts of Interest 4.5 Ethics & Compliance The Ethics and Conduct Committee, whose composition
is approved by resolution of the Board of Directors,
MCA allows its employees to engage in other legitimate is tasked with implementing, monitoring and ensuring
business or professional activities, provided that such Our Code of Ethics and Conduct is accessible on our compliance with this Code, as well as supporting the
engagement does not conflict with their responsibilities website and reflects MCA’s expectations concerning resolution of any related issues.
at MCA. Loyalty is a core principle at MCA, underlining the conduct of its employees, clients, suppliers, business
our belief that all professional decisions should first and partners and other third parties, whether contracted or As our employees are the ambassadors of our Code, it
foremost consider the best interests of the Company. It acting on behalf of MCA. is crucial to continuously reinforce the importance of
is therefore essential to motivate our employees to act understanding and following the best practices outlined
accordingly and encourage them to disclose any situations 1. People at the Core of MCA’s success: People’s therein. In line with our commitment to promoting annual
that may represent, or be perceived as, conflicts of Wellbeing; Health and Safety at Work; Non- training sessions for our employees, we have expanded
interest. discrimination and Equal Opportunities; Prevention of the scope of this training beyond the Board of Directors,
Harassment; and Human Rights. the Leadership Team and middle managers, to include
Our employees are required to abstain from representing operational teams across multiple locations, which involved
MCA, intervening or influencing decisions in which they, 2. Relationships with Stakeholders: Relationships with the organisation of training sessions across the various
their close relatives or acquaintances have a personal Business Partners, Suppliers and Clients; Trustworthy geographical regions where we operate, including Angola.
interest, directly or indirectly. In order to prevent Corporate Governance Practices; Engagement with
conflicts of interest, we have implemented internal the Community. In 2023, we fell short of achieving our goal of training
policies and procedures aimed at ensuring loyalty and 65% of our employees, having reached 58%. Although we
impartiality in decision-making processes. 3. Acting with Integrity: Privacy and Protection of recorded a year-on-year increase of 17 percentage points,
Personal, Privileged and Confidential Information; we encountered challenges related to our workforce,
Asset Protection; Management of Conflicts of particularly in remote locations.
interest, Corruption and Bribery; Prevention of
Money Laundering and Terrorist Financing; Ethical
Commercial Practices; Responsible Social Media and
External Communication; Accurate Accounting and
Financial Reporting; Compliance with Sanctions and
Trade Embargoes.

Integrated Report 2023 Part I – Management Report 4. Risk Management & Compliance 47
 5.
Energy for good

Integrated Report 2023 Part I – Management Report 48

3 million people with green electricity

The energy transition is shaping political

agendas worldwide. As we believe that the
sun rises for everyone, MCA is bringing
renewable energy to millions of Angolans
through the development and construction
of renewable energy projects.

We have enthusiastically embraced the

Angolan government’s strategy for the
country’s electrification from the very
beginning. In addition to posing a major
operational challenge, this strategy aligns
perfectly with our corporate culture.

Creating Comfort
Shared

Integrated Report 2023 Part I – Management Report 49

 Partnerships
for sustainable
development Metric

Target 2025
Promote the 2022
development of projects 2023 Target 2023
with recourse to export c.2,500
>1,500 €m
credit facilities
Cumulative value of projects
secured through export credit
550 €m
1,578 €m
€m

facilities

Renewable Energy Metric

Development 2023 Target 2023 Target 2025

of renewable 2023
Cumulative installed capacity
energy projects
of projects developed
370 492 666
492
(Development) MW
MW MW
MW

Cumulative installed capacity

of projects executed (EPC)
285 370 MW
MW
285 MW 285 MW

Integrated Report 2023 Part I – Management Report 5. Energy for good 50

 The electrification of these regions greatly enhances their 5.1 Export Credit Financing 5.2 370 MW Solar PV Project
economic and social development. At MCA, we believe
it is our responsibility to contribute to this progress.
in Angola
Through these projects, we strive to improve the lives MCA has been bridging the gap between governments
of communities today, while building a better world for investing in large-scale renewable energy projects,
This project represented one of the key priorities in our
future generations. We employ the best technology and namely to address low electricity access rates and meet
operations throughout 2023. Following the delivery of
develop clean energy solutions to improve the quality of decarbonisation targets, and the interests of financers and
the largest solar park in Sub-Saharan Africa, boasting a
life and empower the populations. Our efforts extend technology providers. Export Credit Financing serves as
generation capacity of 189 megawatts (MWp) and capable
beyond the construction of solar parks; we also engage in a vital intersection, with private or quasi-governmental
of supplying more than 1 million people, our efforts in
various social impact initiatives, in collaboration with the institutions, primarily from developed countries, acting
2023 focused on the construction of the Bailundo and
communities and our employees. as intermediaries between national governments and
Cuito, Saurimo, Luena and Lucapa Parks. The last three
exporters. These institutions offer export insurance
parks are currently in the final construction stage.
solutions and financial guarantees, resulting in significant
investments in projects that contribute to key SDGs.
This solar project promises to revolutionise the market
and access to electricity in Angola. It involves the
Up to the present date, we have successfully developed
construction of seven photovoltaic solar plants, equipped
three projects in Angola financed through Export
with 1 million solar panels, with total capacity of 370
Credit lines: Road Rehabilitation in Ondjiva, a 370 MW
megawatts (MWp). This clean energy initiative is expected
Solar project and a Rural Electrification project. We
to provide electricity to over 2 million people while
successfully met our goal for 2023 upon securing funding
preventing the emission of more than 900,000 tonnes of
for a €1,028m contract related to the development of the
CO2 per year.
Rural Electrification project.
The project stands as the largest integrated public
Throughout 2023 and 2024, we will persist in advancing
renewable energy intervention programme in sub-Saharan
other fronts of our Energies and Infrastructures
Africa. It was designed for the purpose of generating
businesses, not only in Angola but also across all our
a positive environmental, social and economic impact
geographic clusters, by originating and developing projects
in Angola, thereby shaping the future of sustainable
in collaboration with financial entities capable of providing
energy in the country. Furthermore, it represents a
financing to developing countries.
significant contribution to the United Nations Sustainable
Development Goal aimed at ensuring access to reliable,
modern and sustainable energy, at affordable prices.
Developed by the Sun Africa LCC consortium and MCA,
the project was executed by MCA.

As an example, the Saurimo Park project will facilitate the

following:

· integration of the entire Saurimo electricity

grid, which was previously divided into multiple
production/consumption areas;
· greater stability in voltage and frequency control,
along with increased operational capacity for
managing production vs consumption;
· increased use of the Chicapa hydropower plant’s
production, which, together with the new
photovoltaic plant, will allow for a significant
reduction in diesel consumption, by minimising the
operation of thermal power plants.

Integrated Report 2023 Part I – Management Report 5. Energy for good 51

 Technical characteristics of solar parks 5.3 Rural Electrification Project Environmental and social impact of the Rural
Electrification project
This project harnesses photovoltaic modules to convert
for 60 Communes in Angola
solar energy into electrical energy, with the output The strategy of constructing photovoltaic solar power
proportional to the direct and diffuse solar radiation The rural electrification project for 60 communes in generation parks near the point of consumption, along
received. The project involves the installation of solar Angola involves the construction of 46 solar mini-grids. with a battery system, not only delivers affordable and
trackers, enabling daily monitoring of the solar path from This initiative was set in motion through a collaboration sustainable energy but also enhances the value of the
east to west. The total length of the tracker system will between the British Standard Chartered Bank and Euler project, as it eliminates the need for long-distance energy
be 94,530 m. Hermes, a German insurance company, which provided transport and significantly reduces the recurrent need to
financial support amounting to 1.03 billion euros. The purchase and transport diesel for electricity generation in
A compact plug-and-play solution was engineered project is spearheaded by the public electricity production remote locations.
for large-scale solar power generation, integrating all company (PRODEL Ep).
necessary components for the conversion of DC (direct The project stands out for its strict compliance with rules
current) from LV (low voltage) to AC (alternating Our involvement in rural electrification, which aims to and procedures aimed at minimising environmental and
current) in MV (medium voltage), within a single unit. The provide energy access to communities in Angola’s inland social risks and impacts, while simultaneously contributing
solar inverter establishes the connection between the regions, is a testament to our commitment to making to the sustainable development of the operational area.
photovoltaic generator and the grid, or the alternating a positive economic and social impact. This project will All Environmental Impact Assessment (EIA) processes
current load. span five provinces with 46 mini-grids, advancing our goal comply with national legislation and align with the Equator
of improving the lives of approximately one million people Principles, which encompass the Performance Standards
The monitoring of the entire solar plant was ensured by across 60 communes in the country’s interior. of the International Finance Corporation (IFC) and the
a Windows-based SCADA system, providing excellent Environmental, Safety and Health Standards of the World
information integration and user-friendly navigation MCA’s demonstrated capacity to implement its Bank Group.
within a standard Windows environment. The e-mesh first solar project in Angola, which includes the two
SCADA used will provide users with a detailed and well- largest solar ventures in the country, with 285 MW of For this evaluation, several diplomas and national
organised overview of the process, which ensures better installed capacity in Biópio and Baía Farta, has led to the standards are considered across multiple domains, namely
awareness of the situations and facilitates the recognition undertaking of the first stage of the rural electrification the environment; energy; climate change; waste, water
of abnormal conditions. project for 60 communes. This distinct project, with a resources; flora, fauna and nature conservation; and
broader geographical scope, aims to provide electricity social issues, among others. Additionally, it is essential
The control room, located within the administrative to populations across five provinces currently devoid of to acknowledge the intangible advantages of replacing
buildings, serves as the central hub for monitoring access or reliant on non-renewable energy sources, at polluting sources, such as increased employment and
information and houses all necessary equipment for very high costs. regional development.
controlling the Solar Power Plant.
In addition to benefits in decarbonisation, this solution
also translates into savings ranging from 3.1 to 5.9 million
Euros compared to other forms of energy production.
The electrification of these communities will connect
203,000 homes and support economic and productive
activities, providing access to 250MWp of photovoltaic
power and 595MWh of battery storage. Electrification
will occur across high-, medium- and low-voltage systems,
comprising 46 isolated systems, 12 grid-connected
systems, three substations and two grid-connected
systems.

We initiated the first stage of rural electrification with

the consignment and laying of the first stone on 15
November, in Cafunfo, and on 16 November, in Malanje
and Luau.

Integrated Report 2023 Part I – Management Report 5. Energy for good 52

5.4 Assessing Impact on The main expected negative impacts of the Project concern
CT
S
+ Generatio
CLI
MA
TE
Communities and the flora, landscape, loss of land and livelihoods, and community
disruptions. The clearing of areas for the installation of IM
P A
n to ac y;
hieving + Redu
n of
ction en erg
and cont of gree y fro
A ND
IC
Environment
o
ut i utralit ribut m
ion nhous ren C
panels and other Infrastructures may result in the direct loss M n trib bon ne to
O co ar me e gas ewa
of vegetation and specimens of floristic species within the nd and c ilabilit
y to eti em bl

LI
a a

N
c a v ng e
ri ion

M
and p r i s si s

CO
project area. fab rat s; ions

AT
ed o

ou
In 2023, a total of 11 Environmental and Social Impact ne itie dit e

-E

erg om ity ic

rc
ns ed

EC
iv con

the com ent of l eco ctri nom

es
ic g e
g

fin
Assessments (ESIAs) were conducted, encompassing both s; itatin

IO

;
rv t
e

se ac
Landscape impacts primarily focus on the visual n

e o
o s

HA
i e s

+ Enhance of loc le el l ec
c
C
dit nec

ic

ob
the Rural Electrification Project in Angola and projects

SO

jec
characteristics of the local landscape, which is affected

a
,

ewa loc

set iho on

N
n
aimed at improving the country’s road network. t.

tive
y

me s
ic re vel g c
tle od

GE
by the loss of some elements and the introduction of new

r re n f t h e

n
econom rms/li livin

s.
b

n
a
e
features of varying aesthetic value. Additionally, the activities

fa t of
men y;
As an example, the following summary outlines the

ation

it
and circumstances occurring during the construction stage

+ Diversific n;

mun
o
main results of the ESIA conducted for the Cazombo

n
m
+ Promotio
+ Job creati

targets fo
may inconvenience the local population living near the

+ Improve
Photovoltaic Power Plant.

- Loss of
photovoltaic plant sites. For instance, the site studied for
the Cazombo Photovoltaic Power Plant is located at a IMPACT ON
distance of approximately 60 m from the residences, which COMMUNITIES AND
ENVIRONMENT

- Disruptio ly nota cies.

results in increased noise and dust emissions. Moreover,

and wate
particula fowl sp
the disturbance of some existing crops within the project
area may also have implications for the livelihood of the

n of
r
r
community. However, these impacts can be minimised

avif for
through the implementation of effective mitigation measures

aun so
ble
e
and the development of management and monitoring plans.

as m
pe e p
cie ro
On the other hand, a project such as this can bring a series of

s, te
positive impacts, not only on the environment but also on the ct pe
ed n d s ca e
a u
the l

E
affected communities. The construction of the Photovoltaic sd

BI
Impact on sthetic ities.

AP
O
e v
Power Plant enables an almost direct replacement of energy VE and visual a ion acti

SC
D
c t
to cons tru D

I
production from fossil fuels (diesel generators) with renewable RS N
sources, thereby contributing to the reduction of greenhouse
IT
Y LA
gas emissions. Furthermore, employment opportunities will
be created, as well as the need to purchase construction
materials and/or services from local transport companies,
which will boost this sector within the areas of intervention.
Additionally, the influx of transient workers to construction
sites will bolster local commerce, particularly in the restaurant
and hospitality sectors.

Efficient utilization
of natural resources
Metric

Safeguard biodiversity in 2022

2023 Target 2023 Target 2025
areas where we operate
Percentage of projects where
a biodiversity risk assessment
100 100 100
100
was conducted % %
%
%

Integrated Report 2023 Part I – Management Report 5. Energy for good 53

 5.5 Working with Local Recycle
Communities
Promoting sustainable development in the geographical
areas where we operate and within the communities
70
tonnes of pallets reused
95
carpenters
with which we engage is one of the pillars of our business

26,600 1,970
strategy. This entails giving back to society and sharing the
value we create with those who need it most, including by
providing access to basic needs and education.
hours of training pieces of furniture donated
We materialise our social responsibility strategy in
a context of proximity to the community, focusing As part of the 370 MW Solar Photovoltaic project
primarily on four key areas: education, environment, developed in Angola, we implemented a Social
health and knowledge. We accomplish our goals through Responsibility initiative involving the repurposing of
the engagement of MCA volunteers and partnerships wooden pallets used in the transport of solar panels.
established with NGOs and local communities, which These pallets were reused in the manufacturing of
enable the development of tailored initiatives. furniture for schools, health centres and markets. In 2023,
we operated two carpentry shops: one located in Biópio,
Our social responsibility initiatives are aligned with the serving the communities of Biópio and Baía-Farta; and
needs and expectations of communities and undergo another in Saurimo, where trainees from Saurimo, Luena
rigorous compliance verification processes. This approach and Lucapa were involved in the production of furniture
ensures that we contribute to society without ever for schools and health centres across these three
expecting anything in return except the well-being of those locations.
we aim to empower.
The Recycle project also provides training and
We allocate a dedicated budget to social responsibility, part certifications to young carpenters, enabling them to enter
of which is tied to specific projects with external funding. the job market with a certificate validated by the INEFOP.
We strive to mobilise resources as efficiently as possible. Aiming to contribute to women’s empowerment, we
established the first class composed solely of women in
Some of the initiatives conducted in 2023 within the 2023. Among the 95 graduates, 15 were women.
geographical areas where we have a more significant
presence are described below. Most of these initiatives
are regularly communicated throughout the year via our
internal and external communication channels.

Integrated Report 2023 Part I – Management Report 5. Energy for good 54

Wheelchair Donation Sun for Children

300
wheelchairs donated
411
children
17
sessions

In 2022, Social Responsibility initiated a sociodemographic The “Sun For Children” initiative was established as part
survey of the communities of Biópio and Baía-Farta, of the Social Responsibility efforts undertaken within
as part of the Photovoltaic Parks Project developed in the scope of the Photovoltaic Parks Project developed
Angola. Through this survey, it became clear that the in Angola, This initiative aims to raise awareness among
inclusion of people with disabilities had to become a 4th grade children in Angola about renewable energies,
mandatory focus area for MCA. namely solar energy, while also promoting the importance
of hygiene. Each session included the distribution of a
From the outset, LARDEF proved to be a steadfast ally school kit, consisting of a backpack, a reflective band,
in the selection, delivery and monitoring of wheelchair pencils, pens, pencil case, a notebook and a comic book
donations. A wheelchair brings endless possibilities: created by MCA, which tells the story of superheroine
mobility, integration into the labour market, social Liza, the sun goddess who fights the trash villain to save
interaction with loved ones, education and overall access. the planet.
A wheelchair represents a step towards a fairer society
and equal access to opportunities. Backpacks and reflective bands ensure that children can
be clearly seen during the early morning hours, on their
However, our efforts extend beyond wheelchair way to school, which prevents them from being run over.
donations; we also raise awareness about the integration In 2023, we will expand these sessions to Saurimo, Luena
of people with disabilities in all domains of society. and Lucapa.

In 2023, we donated an additional 300 wheelchairs

from Benguela to Eastern Angola. We hope that these
donations will allow for greater opportunities and
inclusion in both society and the job market.

Integrated Report 2023 Part I – Management Report 5. Energy for good 55

 6.
Promoting Circular
Economy

Integrated Report 2023 Part I – Management Report 56

At MCA, we strongly believe in the efficient
use of natural resources. By giving a second
life to used materials we aim to contribute
not only to the longevity of our planet but
also to the creation of valuable business
opportunities.

On one hand, we are converting waste into

value through the projects we develop in
the advanced biofuel and biogas sectors. On
the other hand, we strive to improve waste
management and the use of natural resources,
such as water, in our facilities and operations.
Additionally, we engage our employees in
awareness-raising campaigns to promote
responsible action on a daily basis, both within
our business and on a personal level.

Creating

Shared
Hope
Integrated Report 2023 Part I – Management Report 57
 Circular Economy Metric
Target 2025
Development of circular 2022 2023 Target 2023
economy projects
Cumulative installed capacity of
projects developed (feedstock)
16 ktpa
16 ktpa
16 ktpa
c.150 ktpa

Recycle of waste in own

facilities
Percentage of own facilities with
recycle bins
100 100 100
100 % %
%
%

Metric
Circular Economy Target 2025

2022
Reutilisation of waste for 2023
energy production
Consumption of waste
for energy production
188 >5,000 >90,000
3,682 ton
ton ton
ton

Energy produced
from waste

3.757 >140,000 >450,000

84,241 Gj
Gj Gj
Gj

Integrated Report 2023 Part I – Management Report 6. Promoting Circular Economy 58

6.1 Circular Economy 6.2 Waste management in our
as a Business operations Total weight of waste (tonnes) Waste disposal in 2023 (%)

Our circular economy business focuses on the Our concern with energy transition extends beyond 2%
development and operation of advanced biodiesel and investment in waste-to-energy projects. We also integrate
biomethane plants, which ultimately convert waste a circularity mindset into our activities, which are often
into energy. We hold a majority stake in MainBio, an challenging given the sectors in which we operate.
advanced biodiesel plant located in Portugal (Maia),
where Stage I operations started in the second half of In 2023, MCA’s activities generated a total of 3,801
2022. This project employs state-of-the-art technology tonnes of waste, more than double the 1,778 tonnes
within an acid environment to drive the reaction, enabling generated in 2022. This increase was primarily due to
a broader selection of feedstock, including acid oleins, oil waste generated from by-products of the Advanced 98%
mill effluents and soapstock (classified as second-generation Biodiesel production process. The majority of the waste 2,291 1,778 3,801
waste feedstock, according to RED II). (99%) corresponded to non-hazardous waste (99%), with 2021 2022 2023 ● Diverted from Disposal
● Directed to Disposal
the Infrastructures business accounting for 54% and the
Throughout 2023, the advanced biodiesel plant faced Energies business for 46% of the total waste produced.
some of the challenges typically expected during ramp-up
operations with frontier technology. Microprojects were Most of the waste produced by MCA consists of soils and
implemented to address these challenges, with a view rocks (36%), as well as glycerine (26%) and BHO (17%),
to improving plant efficiency and availability. One of the which are by-products of the production of Advanced Categories of waste 2023 Types of waste in 2023
projects involved the replacement of the biomass boiler Biodiesel. Mixtures of concrete, bricks, tiles and ceramic (%) (%)
with a gas boiler, a task successfully completed in October. materials account for 5% of the waste generated. 1%
21% 36%
Production at the plant improved in the last part of the All waste produced is analysed and separated for reuse
year, resulting in an overall efficiency of 63% for the year. or final disposal by licensed operators. Moreover, MCA
Moreover, we are developing a portfolio of biomethane has internal procedures in place to identify, manage and
projects in Central Europe, including a particularly monitor the various categories of waste, in addition to 99%
advanced project located in Poland. This project aims to reporting its waste management operations on legal 17%
produce BioLNG for sale in the German market, serving government platforms.
the road transport sector. 26%
The waste generated during works is analysed and sorted
In 2023, development works advanced, including progress to identify waste suitable for reuse in the project itself
in permitting, the signature of the primary EPC contract or other ongoing projects, namely earth, soil, rocks, ● Non-hazardous ● Soils and Rocks
● Hazardous ● Glycerin
and advancements in feedstock, offtake agreement milled products and screeds, among other materials. ● BHO
and financing negotiations. Additionally, we seized the Only hazardous waste and materials unsuitable for reuse, ● Other Categories
opportunity to gain a better understanding of the market such as by-products, are forwarded to licensed operators
and its potential through specialised market consultancy for disposal.
services.
99% of non-hazardous waste was diverted from disposal
A comprehensive feasibility study was conducted in and prepared for reuse.
Germany; the team is actively exploring alternative
locations to advance the project further. Focusing on the need to raise awareness among
employees regarding the importance of waste
management and reduction, MCA has implemented
several measures for this purpose, namely the installation
of recycling bins in all facilities and the organisation of
awareness initiatives aimed at promoting waste recycling.

Integrated Report 2023 Part I – Management Report 6. Promoting Circular Economy 59

 6.3 Water Consumption 6.4 Employee Engagement Partners For Our Planet

86 176
MCA operates in locations where water is scarce Our employees are key to everything we do. We want
and thus takes responsibility for managing water use our impact to start at home to increasingly make a
kg
in its projects. In 2023, water consumption reached difference in communities.
approximately 22,000 m3, which represented a 34% garbage collected hours of volunteering
increase compared with 2022. This rise was primarily
driven by higher consumption at our Advanced Biodiesel Partners For Our Planet aims to create environmentally
plant, which operated throughout the year. However, sustainable partnerships. In 2023, we participated in the
the majority of water consumption remains associated World Cleanup Day, an event organised by the European
with operations at the Douro Marina facility, namely boat Union that brings together companies worldwide in
washing and other operations. cleaning up beaches during the month of September.
Additionally, we partnered with the Surfriders initiative,
Regarding awareness-raising measures concerning water which supplied us with the necessary equipment for
consumption and conservation, our offices and work sites cleaning the Aver-o-Mar beach, in Póvoa do Varzim, on
are equipped with signs that highlight the importance of 22th September. Furthermore, we supported the ATACA
water conservation at all water points. association by purchasing goods for distribution to our
volunteers.
Additionally, MCA employs water capture solutions,
namely at its bituminous plant in Portugal and occasionally
at work sites. In 2023, we captured 607 m3 of water, a Awareness Campaigns
significant increase from the 166 m3 captured in 2022.
We organised awareness campaigns aimed at reducing
single-use plastics within our facilities. As part of these
Water Consumption by Source (m3) efforts, we hosted group activities where rewards were
given to the participants who were able to create the
● Offices
● Projects/Production most innovative picnic sets without resorting to single-
use plastics. This initiative also fostered teamwork and
collaboration across departments.

World Water Day

We celebrated the World Water Day in order to raise

awareness of the importance of this resource.
370 2,024 838 15,787 1,579 20,657
2021 2022 2023

Integrated Report 2023 Part I – Management Report 6. Promoting Circular Economy 60

 Efficient utilization
of natural resources Metric Target 2025

Target 2023
Reduction of Water 2022 2023
consumption More efficient use
Water consumption in the of water
offices (from public supply)
838 m3
1,579 m3

Water consumption in projects

Production (from public supply)

15,787 m3

20,657 m3

Water captured

166 m3

607 m3

Integrated Report 2023 Part I – Management Report 6. Promoting Circular Economy 61

 7.
Sustainable Urban
Development

Integrated Report 2023 Part I – Management Report 62

Urban development is key to addressing
today’s complexities and vital for creating
the cities of the future, capable of meeting
society’s pressing demands, whether in terms
of housing, circulation or environmental
certification.

At the MCA Group, we collaborate with

partners to provide the best tailored
solutions to our clients. This involves the
development or adaptation of last-mile
logistics platforms and technology centres,
as well as the design of affordable rental or
multi-family housing solutions.

Creating Shared Demandings

Integrated Report 2023 Part I – Management Report 63

 Decarbonisation Metric

Reduce scope 1 & 2 2022 2023

GHG emissions
Scope 1 & 2 emissions
10,174 tCO2e
7,353 tCO2e
LT ambition: Net Zero

Promote International
environment
certifications in Urban Development facilities
Logistics projects Platinum
with LEED certification Platinum
Platinum
(or equivalent)
Target 2023 Target 2025

Renewable Energy
Consumption of
electricity from
renewable sources in
own facilities Weight of electricity consumed
in own facilities from renewable
c.9 82 70
sources %

100
%
%
% in Europe

Integrated Report 2023 Part I – Management Report 7. Sustainable urban development 64

 7.1 Development 7.2 Promoting Energy Efficiency
of Logistics Projects in Operations and Facilities
Our Urban Development business vertical currently MCA’s commitment to the environment extends beyond
focuses on developing Logistics projects in Spain, where the logistics parks we develop. We also seek to minimise
we boast a strong track record. Operating through our the impact of our operations and facilities.
subsidiary Business Centre Manzanares S.L. (BCM) and a
local office in Madrid, staffed by an experienced team with Our overall energy consumption decreased from 43.5
proximity to the local market, we are supported by global TWh in 2022 to 30.8 TWh in 2023, representing a year-
competence centres at our headquarters in Portugal. We on-year decrease of 29%. This reduction was primarily due
aim to promote international certification processes in to a decrease in diesel consumption associated with our
logistics facilities and buildings, specifically targeting LEED bituminous activity in Angola.
Platinum certifications. In 2023, all projects developed
aligned with LEED Platinum standards and are currently In 2023, energy intensity, defined as electricity
awaiting certification. consumption per revenue generated, increased by 34%.
This increase was primarily driven by higher electricity
In 2023, we successfully completed and delivered two consumption at our Advanced Biodiesel facility, which Energy Consumption (TWh)
logistics projects to our clients in Spain, under forward operated for its first full year in 2023, as well as the
funding contracts. Projects are usually funded upfront incorporation of the corporate office in the calculation of
by the client, with MCA serving as project manager and electricity consumption and a slight decrease in revenue
overseeing development, urbanisation and construction within the monitored entities.
works. Certain project tasks are subcontracted to local
suppliers and service providers. We continued transitioning our electricity supply contracts
to green energy throughout 2023, including at our offices
Summary of project execution and development in 2023: and operational facilities in Portugal. We will continue
· Delivered Arroyomolinos Industrial Park, strategically pursuing this transition in the coming years as contracts
positioned about 20 km from Madrid, to Newdock. expire. Additionally, we have started monitoring electricity
The asset comprises four independent warehouses consumption associated with green certificate contracts
with a total of 39 k sqm and 37 loading docks within more reliably. 45.4 43.4 30.8
2021 2022 2023
a 63 k sqm plot. The buildings also have LEED Platinum
certification goal and WELL® Ready office space. The share of electricity supplied under renewable energy
· Los Gavilanes 02 Industrial Park delivered to contracts reached 82% in 2023, surpassing our 70% target
Newdock (logistics investment platform owned by for the year and representing a considerable increase
Goldman Sachs Asset Management) at the start compared with the previous year, when the estimated Energy Consumption in 2023
of 2024 after successful execution during 2023. weight stood only at 9%, based on proxy data. Our goal by source (%)
The asset is located within Los Gavilanes polygon is to ensure that 100% of the electricity consumed in the 10.6%
and comprises a 10 k sqm warehouse located in company’s offices and facilities across Europe will originate
a 16 k sqm plot. The building has LEED Platinum from renewable sources by 2025.
6.4%
certification goal and WELL® Ready office space.
Moreover, we have implemented several energy- 2.8%
We have identified a significant pipeline of opportunities saving measures, including the ongoing replacement
0.5%
in Spain to further develop our business in the logistics of conventional light bulbs with LED bulbs across our
sector and will continue collaborating with partners facilities and scheduling HVAC systems to conserve energy
to deliver top-quartile assets in terms of sustainability when the facilities are idle. Other energy-saving measures 79.8%
and location standards. This approach aims to improve defined include disseminating energy-saving information to
operational efficiency and facilitate trade acceleration. employees, raising awareness of defensive driving, ensuring
● Diesel ● Fuel Oil
regular equipment maintenance and promoting the ○ Gasoline ● Electricity
transition to renewable energy consumption. ● Heating Gasoil Biomass 0.0%

Integrated Report 2023 Part I – Management Report 7. Sustainable urban development 65

7.3 Our Carbon Footprint SCOPE 1 EMISSIONS SCOPE 2 EMISSIONS SCOPE 3 EMISSIONS

· Stationary combustion: combustion of fuel in Emissions associated with the generation of electricity · Scope 3 emissions will not be reported this year,
We believe that calculating our carbon footprint is a stationary equipment, such as equipment installed used in the Group’s controlled operations. These although significant progress has been made in the
crucial step in setting clear targets for our journey to in the bituminous mixtures production plant and emissions were calculated based on invoices issued by data collection process, enabling their reporting in
achieve net zero emissions. Our values are calculated as boilers used in biodiesel production. electricity suppliers, whenever available. the near future.
CO2 equivalents (CO2e) and include most of the GHGs · Mobile Combustion: combustion of fuel in mobile · Data (costs, quantities of materials purchased or sold,
generated across our value chain, namely carbon dioxide equipment, machinery, automobiles, and trucks. distances travelled, etc.) will be collected through
(CO2), methane (CH4) and nitrous oxide (N2O). We have · Fugitive emissions: emissions resulting from gas leaks Scope 2 emissions (tCO2e) specific forms provided by the company and/or
opted for the operational control approach to accounting, in equipment, including air conditioning systems. suppliers.
wherein the organisation is responsible for 100% of · Once the emission factor sources have been selected
GHG emissions from controlled operations, while GHG Category Source Used Fuel and data for all activities collected, emissions are
emissions from operations in which the organisation has calculated based on the guidelines available in
a stake but does not control (e.g., healthcare businesses) Bituminous mixtures Fuel Oil, the GHG Protocol Corporate Standards. In case
production plant Heating Oil
are not considered. Stationary where emission factors cannot be obtained from
Combustion
Biodiesel production Biomass, the supplier/producer, default values from the
In 2023, we made significant progress in improving plant boilers Natural Gas GHG Protocol database and other available library
our reporting process, including the introduction of Diesel, databases are used.
Vehicle fleet
preliminary elements for calculating Scope 3 emissions. Gasoline
During this process, we identified an overcounting of
Mobile Power generation machinery 153 75
Scope 1 emissions, resulting from the misclassification Combustion (generators)
Diesel
2022 2023
of emissions related to the production of bituminous
mixtures as Scope 1 instead of Scope 3 emissions. Scope Construction equipment Diesel
Scope 2 emissions decreased YoY, mainly as a consequence of renewing
1 emissions should only include fuel oil and fuel associated some electricity contracts, which are now under green certificates.
with the operation of the installation. The figures Fugitive Air conditioning Refrigeration
presented in this report have been adjusted accordingly. emissions equipment Gases

. SCOPE 1+2 EMISSIONS

Scope 1 Emissions (tCO2e) Total emissions by geographical region (tCO2e)

● Stationary ● Mobile ● Portugal ● Angola ● Spain

9 337
Commitment to Net Zero
5 631

We are committed to reducing carbon intensity over

time, namely by implementing energy efficiency initiatives,
1 647 procuring green electricity, where feasible, and executing
648 self-consumption projects.

10 021 7 278 2 430 7 736 8 2 874 4 468 1 We aim to reach Net Zero in Scope 2 emissions by 2030,
2022 2023 2022 2023 by reducing more than 90% of our emissions (vs 2022).
Scope 1 emissions decreased YoY, primarily driven by a reduction in Mobile Total emissions decreased YoY, mainly driven by the decrease in Scope Any remaining emissions, which are likely associated with
emissions resulting from lower diesel consumption due to decreased 1 mobile emissions in Angola. In 2023, Angola accounted for 61% of the electricity consumption in offices located in Africa, where
Note: Scope 1 emissions (and total emissions) in this report were revised construction activity, particularly in Angola. On the other hand, Stationary Group’s total emissions. independent consumption points are not viable and the
downwards in comparison with the Integrated Report 2022 by 14,496 and emissions increased, due to the full-year operation of the Advanced
3,649 tCO2e in 2021 and 2022, respectively, given the correction related to the Biodiesel plant and heightened emissions associated with increased procurement of green electricity or implementation of
accounting of emissions associated with the production of bituminous mixtures. bituminous production (emissions associated with Fuel Oil and Heating Oil). self-consumption projects is not feasible, will be offset

Integrated Report 2023 Part I – Management Report 7. Sustainable urban development 66

 8.
Infrastructures
with Impact

Integrated Report 2023 Part I – Management Report 67

MCA collaborates with governments
Shared
Creating
and local authorities to develop projects
that address the needs of communities
concerning essential Infrastructures such as
roads, water and energy. The construction
and improvement of Infrastructures play
a crucial role in driving development and
growth, in addition to generating positive
Opportunities
economic, social and environmental impacts
across various sectors.

In 2023, we maintained our momentum in

project delivery, completing 29 projects. The
most significant projects developed in Angola
were related to renewable energy, while we
concentrated on a large number of smaller-
scale public works in Portugal, namely roads,
pavements and urban requalification. By
removing physical obstacles to movement,
expanding parking facilities and creating
additional green spaces, we aim to promote
better use of public spaces by local residents.

Integrated Report 2023 Part I – Management Report 68

 Access to key
infrastructure Metric

Enable access to water, 2022 2023

roads & other key
infrastructure
Number of Infrastructure
projects executed
31 29

Integrated Report 2023 Part I – Management Report 8. Infrastructures with Impact 69

8.1 Water and Road 8.2 Infrastructure Projects low voltage and public lighting networks. The project
Projects in Angola in Portugal also entails the rehabilitation of existing walls and the
construction of new concrete walls, featuring yellow
granite cladding. Furthermore, leisure areas for the
We continue advancing the development of several We actively participate in public and private tenders, population, including “green areas”, will be created.
projects, particularly in Angola, aligning with the continuously analysing strategies to optimise the value · The bituminous projects generated a turnover
country’s development priorities, which include water of assets within this line of business. This includes the of €2.7 million; we expect to reach a turnover of
Infrastructures, roads and other critical facilities development of real estate projects on idle assets and approximately €3 million in 2024.
nationwide. Some of these projects complement ongoing plots of land, as well as considering potential divestments.
Renewable Energy initiatives. Although we pursue a diversification strategy, our team’s In 2023, we inaugurated our workshop in Guimarães,
primary focus remains on projects secured through public Portugal, dedicated to supporting our Iberian
In this regard, two important road projects were awarded tenders. Infrastructures business. The new facilities, which include
to MCA in 2023: a warehouse for equipment and parking spaces for our
In 2023, significant bituminous works were prominent, fleet, are equipped with state-of-the-art tools for fleet
1) Luena-Lumege, a 156-kilometre road that is part of along with projects such as the Barcelos Pedestrian maintenance and repair.
the Lobito Corridor. This corridor, which is key to Promenade, the Rehabilitation of a residential
economic development, stretches from the Angolan neighbourhood in Póvoa de Varzim, and the Amial/Porto
coast to the Republic of Congo border, facilitating area.
the movement of people and goods and fostering
economic development in the traversed provinces. The key highlights of 2023 include the following:

2) Mavinga-Rivungo, a 212-kilometre section of the EN · Amial – The project to improve the Public Space
280 National Road, which connects the interior of of the Agra do Amial Neighbourhood is a pioneering
Angola to the Republic of Zambia. The restoration initiative led by municipal company Domus Social.
of this road will improve accessibility and mobility for This project involves the revitalisation of the public
both people and goods, facilitating road connections space surrounding the residential buildings. Built in
between the municipalities located within the region. 1960 as part of the Improvement Plan for the city of
Porto, the neighbourhood comprises 8 blocks and 181
dwellings. Originally situated on the city’s outskirts,
which led to its isolation and disconnection from the
surrounding urban fabric, the neighbourhood became
more centrally located as the city grew. MCA was
awarded the contract for various tasks, including the
improvement of the entire drinking water supply and
rainwater drainage networks, pedestrian and vehicular
pavements, public lighting and green spaces, as well as
the construction of a children’s playground.
· Barcelos – Construction of a Pedestrian
Walkway along the River Cávado. Support/leisure
infrastructures, namely motorhome parks, parking
areas, a picnic area and a children’s playground, are
being built at both ends of the infrastructure.
· Águas do Porto Areosa and Águas do Porto
Levada – The contract for Stage 1 of the Azevedo
de Campanhã Requalification project focuses on
renovating all existing infrastructures, including
the main rainwater, wastewater and water supply
networks. Additionally, it involves transforming the
overhead network into buried telecommunications,

Integrated Report 2023 Part I – Management Report 8. Infrastructures with Impact 70

 8.3 Volunteering for Vital Fraterna Association – Guimarães Donation of Solar Panels and Street Lighting
Infrastructures
At the MCA Group, we view volunteering as a means
200
Volunteer Hours
25+
children impacted
36
donated panels
15
solar street
445
participants
to acquaint our employees with diverse realities, aligning
light poles
with our goals of nurturing our staff and supporting
the communities we serve. Our approach is guided by
a strong commitment to upholding Human value and Leveraging our expertise in rehabilitation, we partnered “Move in Green” was a collaborative effort that
promoting team spirit in multidisciplinary environments. in 2023 with Associação Fraterna, an association based in complemented the initiative established by a
Guimarães whose mission is to promote equity and social multidisciplinary team, which organised a competition
development in the local community. Volunteers laid new across all MCA locations. For every 10 registrations,
flooring, painted walls and assembled furniture purchased we donated 1 solar panel. In total, 36 solar panels were
to enhance various areas of the association, including the donated to the following associations:
play space, the entrance, the living room and the kitchen.
Additionally, the colleagues from the infrastructures unit Child Protection Association
assumed the responsibility of guiding office volunteers in Vila Nova de Gaia, Porto, Portugal;
room rehabilitation, fostering a genuine multidisciplinary
environment and the exchange of experiences. Lar de Santa Isabel
Viana, Luanda, Angola;

Lar André Almeida

Freamunde, Porto, Portugal.

Santa Isabel Home

Luanda, Angola

Associação Protectora da Criança

Porto, Angola

Integrated Report 2023 Part I – Management Report 8. Infrastructures with Impact 71

 9.
Commitment
to the Right
to Health

Integrated Report 2023 Part I – Management Report 72

At the MCA Group, we uphold the belief
that access to healthcare is a universal
right, both in urban and isolated areas.
Therefore, we invest to ensure that we
offer adequate responses to people’s
needs and expectations, whether through
the businesses we develop, the working
conditions we provide, or the initiatives we
promote within the communities.

Creating Rights
Shared

Integrated Report 2023 Part I – Management Report 73

 Health & Safety
at work Metric

Reduce the frequency 2022 2023

and severity of injuries
among employees and Zero accidents
workers
Lost Time Injury Frequency 4.3 4.3 <4
Rate (LTIFR)
LT Ambition

Target 2023

Target 2025

2022 2023 Target 2023

Respect for
21
Metric
human rights
19 % (previously: 22%)

Promote gender equality Weight of female employees 17 %

17 %
%

at all levels of the

organisation

Integrated Report 2023 Part I – Management Report 9. Commitment to the right to health 74
 9.1 Investment in the Hospital Terra Quente (HTQ)
Healthcare Sector MCA’s Stake @31.12.2023: 29%
Location: Mirandela
Start of Operations: 2012
In partnership with local entrepreneurs with proven Facilities: Hospital, Long-term care, Senior residence
experience in the sector, the MCA Group has been
developing a portfolio of Healthcare units in niche
geographical areas in the interior of Portugal. We
currently hold relevant stakes in 3 assets in operation,
with distinct maturity levels. All hospital units feature
integrated senior residences within their facilities, in
addition to providing long-term care.

Although our strategy remains non-operational, we are

focused on ensuring best practices and leveraging the Hospital Privado de Chaves (HPC)
operational expertise of our partners to deliver long-term
value.
MCA’s Stake @31.12.2023: 25%1
Hospital Terra Quente remained the primary unit in the Location: Chaves
segment throughout 2023, evidencing promising signs Start of Operations: 2022
of operational activity, compared with previous years. Facilities: Hospital, Senior residence
Additionally, 2023 was the first full operational year for
Hospital Privado de Chaves, following its opening in 2022,
contributing modestly to this year’s results and positive
EBITDA.

Hospital de Bragança underwent a phased opening of

services within the hospital unit in 2023, resulting in a
marginal contribution to the year’s, also attributable to its Hospital de Bragança (HB)
involvement in a clinic in Bragança.
MCA’s Stake @31.12.2023: 18%1
None of the companies holding these assets distributed Location: Bragança
dividends during the year. Start of Operations: 2023
Facilities: Hospital, Day Centre, Senior residence

1
Partially indirectly held through Hospital Terra Quente

Integrated Report 2023 Part I – Management Report 9. Commitment to the right to health 75
9.2 Respect for Human Diversity and inclusion Fair and equitable remuneration MCA FOR ALL
and Labour Rights We recognise the advantages of a diverse workforce MCA operates in multiple countries worldwide. In 2023,

Respect for the human condition is one of MCA’s core

values. In line with this commitment, we ensure the
on business performance and strive to foster an inclusive
culture where everyone feels valued and benefits from
equal opportunities for recruitment, promotion and
we expanded our footprint, particularly in Germany. We
recognise the importance of employing local talent and
understanding local economies and market dynamics to
276
training hours
123
employees
fulfilment of Human Rights, based on the Universal compensation. succeed in developing a global portfolio. Therefore, we
Declaration of Human Rights and the United Nations believe that our workforce should primarily consist of
Guiding Principles on Business and Human Rights. Gender diversity has been an important focus for MCA local employees, who are familiar with the market, eager Under the motto “MCA for All”, we have been
Furthermore, we adhere to the Organisation for in recent years. Although we are aware of the challenges to contribute to the development of their communities cultivating a culture of Diversity and Inclusion across
Economic Cooperation and Development (OECD) associated with achieving greater gender equality, we are and wish to remain close to their families. In 2023, 96% the organisation. In May, we celebrated the European
guidelines for multinational enterprises and respect all committed to increasing the representation of women in of our employees were hired locally, consistent with the Diversity Month with an initiative on “Inclusive
internationally recognised human rights relevant to our the company by at least 1 percentage point per year. previous year. Leadership”, conducted through our partnership with
operations. Associação Salvador and the Your Group. This initiative
In 2023, we maintained consistency with the previous year, Hiring locally enables us to contribute to combating brought together our Leadership Team to explore topics
· Our Human Rights Policy, approved by our highest with women accounting for 17% of MCA’s employees. unemployment, particularly in developing countries where such as unconscious bias and the power of diverse teams.
governance body, addresses the following issues, among Regrettably, we fell short of our goal, which was previously unemployment rates are often high. Additionally, we take Additionally, our People & Leadership team received
others: more ambitious. Our objective is to dismantle gender pride in offering competitive compensation packages to training on inclusive recruitment throughout the year,
· Rejection of any form of forced labour, child labour stereotypes within our industries and highlight the benefits our employees across all geographical regions, ensuring while employees across the organisation underwent
and human trafficking; compliance with local legislation of a diverse workforce. However, this endeavour remains that even our lowest salaries exceed local minimum wages. training on inclusive culture.
and the provisions outlined in the International Labour a challenge. In 2023, only 106 of the 529 employees hired
Organisation (ILO) Convention. were women, representing 20% of new hires (a year- We occasionally rely on expatriate employees, who Employees by Country in 2023
· Recognition and support for freedom of association on-year decrease of 6 percentage points). Regarding continued to represent 4% of our workforce in 2023.
and the right to collective bargaining, through the management and leadership positions, there is still This allows us to address potential market gaps, ensure ● Portugal 14
promotion of freedom of expression based on significant room for improvement, as women represent the implementation of common procedures, maintain a ● Angola
only 16% of these roles. consistent company culture across all geographic regions, ● Espanha
constructive dialogue beneficial to all parties involved, ● Alemanha 7
as well as trade union activity and interaction with and benefit from diverse career opportunities. We
the Works Council or other legally constituted In geographical terms, we benefit from a strong presence ensure that the colleagues who embrace the challenge of
organisations. in Africa, primarily due to our Infrastructures business, working abroad benefit from the appropriate conditions
· Promotion of equitable remuneration for workers, which focuses on labour-intensive projects. A significant and are able to maintain close contact with their families
based on their qualifications, experience, responsibilities percentage of our employees are based in Portugal and throughout the year. 954 290
and duties, in accordance with legislative provisions, Spain, forming the Iberian cluster. In 2023, our Central
the guidelines on working conditions issued by labour European operations began to gain relevance through our
authorities, and internal remuneration policies. office in Germany.

We primarily hire locals and welcome individuals of all

nationalities across all geographical regions where we Ratio of Lowest Wage to Local Minimum Wage
operate, thereby enhancing the diversity of our workforce.
As of the end of 2023, our workforce comprised individuals
from 13 different nationalities, the majority being
Portuguese, Angolan, Spanish and Brazilian.

Additionally, we have established a team to address the

100%
challenges of integrating individuals with disabilities into
our Group. This initiative includes the following aspects:
1. Physical accessibility of spaces
2. Adequacy of digital equipment
3. Partnerships 118% 154% 204% 209%
4. Monitoring & Integration Portugal Angola Espanha Alemanha

Integrated Report 2023 Part I – Management Report 9. Commitment to the right to health 76
 Target 2025
Metric 2022
Local hiring 2023
Target 2023
Expected to decrease

-
towards 85%
Promote local hiring
Weight of local employees 96 %
96 %

Integrated Report 2023 Part I – Management Report 9. Commitment to the right to health 77
9.3 Occupational Health With the aim of extending our safety culture across the Lost-time Injury Frequency Rate 9.4 Promoting Health in the
and Safety value chain, we have included clauses in our contracts
designed to encourage good health and safety practices.
Communities where we
Operate
70.0 5.0
This approach not only protects our employees but also
ensures that subcontractors adhere to our health and 4.3
MCA places a high priority on the health and safety of 4.3
safety principles. 50.0
its employees and subcontractors, fostering a “Safety MCA also collaborates with institutions in all the
4.0
First” culture. This culture is promoted through various communities where we operate to promote health
The Health, Safety, Environment and Quality (HSEQ)
initiatives throughout the year, including the following: practices, particularly in developing countries facing
team is directly responsible for occupational risk 30.0
significant challenges in public health systems. Additionally,
management (health and safety). Its mission is to integrate
· Integrating security metrics into the company’s KPIs, 3.0 our colleagues volunteer in some of these initiatives.
and align methods and promote continuous improvement
also linked to performance awards;
across all business verticals of MCA. Currently, the team 10.0
· Health assessments;
is certified according to the ISO 45001 – Health and
· Occupational safety and health (OSH) management AIDS awareness and screening – Angola
Safety Management Standard. 8.6 37.0 3.2 14.0
programmes;
2022 2022 2023 2023
· Training sessions; As part of the celebration of the International AIDS Day
Despite our best efforts to ensure everyone’s safety, ● Hours worked (M hrs)
· Inspections and audits; in Angola, an AIDS awareness and screening event was
accidents unfortunately continue to occur. We take ● Lost-time injuries
· Communication and awareness-raising campaigns. ● LTIFR held in December 2023 with the aim of promoting a safe
responsibility for monitoring all accidents, whether
space, support, prevention and counselling on HIV and
involving our own employees or subcontractors. In
Our continuous commitment to prioritising people’s other sexually transmitted infections.
2023, our LTIFR, which includes both employee and
health and safety over operational requirements has
subcontractor injuries, remained relatively stable,
led to the development of an MCA Health & Safety
compared with the previous year, when it stood at 4.3.
programme, involving the training of all employees and Blood Donation – Angola
However, it fell slightly short of our goal of achieving an
subcontractors on safety standards and procedures.
LTIFR below 4.

120 49.5
The primary objectives of this programme are the
achievement of “zero accidents” and the establishment of
The primary types of occupational accidents that
a safety-first culture. This training was provided to all new
occurred in 2023 included the following:
MCA employees in 2023. Volunteers litres of donated blood

· Entanglements
Our focus remains on addressing critical risk areas,
· Blows/shock by/against objects MCA Heroes gathered to donate blood to those in
including the importance of personal protective
· Particle projection need. In a fun and relaxed atmosphere, more than 120
equipment, manual and mechanical handling of loads, and
· Rollover with work equipment colleagues assembled on 1 and 2 December to participate
movement within the site.
· Cuts in this blood donation. Afterwards, they were treated
· Falls from the same level (tripping) or getting to a snack. This initiative, as part of MCA Volunteers,
In September, we organised an initiative named “Safety
of equipment exemplifies the commitment of MCA heroes to saving
in Motion”, where we conducted several training
lives, leading up to the Volunteer Day, celebrated on 5
programmes for 65 colleagues in different locations in
An MCA employee tragically lost his life in 2023 in a December.
Angola. These programmes were aimed at leaders and
work-related accident (a road traffic accident). On behalf
managers capable of raising awareness of safety practices
of the Company, we extend our deepest condolences to
within their teams.
the family and friends of our colleague. The safety of our
employees and subcontractors is paramount to us, and
Additionally, we are adopting a positive attitude towards
we remain fully committed to undertaking all efforts to
safety by celebrating the achievements of locations
ensure that our operations run safely.
where no accidents have occurred in the last 500 days.
We believe that these initiatives enable us to cultivate a
safety culture that may not always be achievable through
conventional training programmes.

Integrated Report 2023 Part I – Management Report 9. Commitment to the right to health 78
 10.
Our Responsibility

Integrated Report 2023 Part I – Management Report 79

Promoting sustainable development in the
geographical areas where we operate and
within the communities with which we
engage is one of the pillars of our business
strategy. This entails giving back to society
and sharing the value we create with those
most in need, including by providing access
to basic needs and education.

As detailed in our Social Impact Policy,

MCA materialises its social responsibility
strategy through an approach of proximity
to the community, focusing primarily on
four key areas: education, environment,
health and knowledge.

MCA’s involvement in developing tailored

initiatives is facilitated by the engagement
of volunteers and partnerships established
with NGOs and local communities.
Accordingly, we encourage our employees
to support and participate in volunteer
initiatives organised by our Corporate
Responsibility team.

Dreams
Creating
Shared

Integrated Report 2023 Part I – Management Report 80

 Access to basic
needs and education Metric

Invest in social 2022 2023 Target 2023/24

responsibility projects in
communities where we
operate
2.1 3
0.5
Total investment in social €m
€m
responsibility €m

Integrated Report 2023 Part I – Management Report 10. Our Responsibility 81

Our social responsibility initiatives are firmly aligned Cinesol Be Happy at the Equestrian Centre Christmas Campaign Angola
with the needs and expectations of the communities

30,000 15 8 32
and undergo rigorous compliance verification processes We are participating in the Christmas campaign of
to ensure that we contribute to society without ever the Ministry of Energy and Water in Angola, a Social
expecting anything in return, except the well-being of Responsibility initiative known as “Minea Solidarity
those we choose to empower. people locations children hours of emotional therapy Christmas 2023”. The campaign aims to collect clothes,
food, toys, sheets and other items, which will be
We maintain a dedicated budget for social responsibility, Cinesol is an itinerant film festival that toured 15 It is well established that interaction with horses can subsequently distributed to the community.
part of which is allocated to specific projects with locations in Angola, where MCA is present. The objective serve as emotional therapy. We aim to continue our
external funding, aiming to mobilise resources as of this initiative was to bring cinema to areas with limited work with institutionalised children, providing them with
efficiently as possible. In 2023, our total investment in opportunities for viewing. Over 30,000 people attended the opportunity to spend a morning interacting with CrescerSer
social responsibility decreased year-on-year, primarily the screenings at each location. The festival featured not horses.
due to delays in certain projects serving communities only international short films but also national films CrescerSer is a private institution for social solidarity that
impacted by the 370 MW Solar PV project. promoting cultural and environmental preservation. In our Social Responsibility efforts, we strive to engage promotes, organises and facilitates community services to
Additionally, local artists performed at each tour location. colleagues in the selection of the associations with support children, youngsters and families. MCA purchased
which we collaborate, whenever possible. Be Happy tickets for Magikland and the Amarante Water Park, with
Furthermore, the cinema was powered by solar panels, recently held a session with the Santa Estefânia Home, in the aim of enhancing the summer holidays of the children
ensuring that all operations were sustainable. This project Guimarães. associated with this institution.
was developed in partnership with the Cinema du Desert
team of the Bambini nel Deserto association.
Make a Wish GuimaGym
For more information, visit:
[Link] We partnered with Make-a-Wish and purchased the GuimaGym is a gymnastics club in Guimarães. MCA
children’s book “Our Wishes” to include in the Christmas supported the club, one of the largest sports promoters
baskets for all employees. Make-A-Wish | Our Wishes in the city, by covering the transport costs for the
MCA Scholarships ([Link]). trampoline class to participate in the international Scalabis
Cup in June.

4
Receipts from book purchases are used to fulfil a child’s
wish. In 2024, we will organise a team-building activity
involving 15 MCA employees to plan the day of fulfilling Ambulance for the Guimarães
the child’s wish and will be able to follow the process Volunteer Firefighters
scholarships
until completion. The mission of Make-A-Wish is to make
We awarded 2 scholarships and 2 mentoring scholarships wishes come true for children and youngsters aged 3 to We collaborated with other companies and entities in
at the University of Porto, Portugal, in partnership with 17, across the national territory, who are facing serious, converting a van into an ambulance for the Guimarães
StandForGood. The primary objective of StandForGood progressive, degenerative or malignant diseases, offering Volunteer Firefighters. This initiative enables this brigade
is to promote equal opportunities in higher education. In them a moment of strength, joy and hope. to provide faster support to the population in fire
collaboration with the University of Porto, they identify emergencies. We contributed €15,000 towards the
students facing economic hardship to be the recipients of a conversion of the vehicle into an ambulance.
scholarship or other forms of support. These scholarships
cover each student’s annual tuition fees and support
educational expenses. The mentoring scholarship offers
guidance throughout the academic year and integration
into the Personal and Professional Skills Development
Programme.

Integrated Report 2023 Part I – Management Report 10. Our Responsibility 82

 11.
Working at MCA

Integrated Report 2023 Part I – Management Report 83

People are the most valuable asset of any
organisation. Without them, there would be
no present and certainly no future for us.
Everyone’s contribution is essential to the
success of the MCA Group.

Having the best people working with us

is the key differentiating factor to achieve
superior performance in the market. This
means attracting top talent, being able to
build strong teams and coaching people
to reach their full potential. Our People &
Leadership team is focused on providing our
teams with the right conditions to overcome
challenges effectively.

Growth
Shared
Creating
Integrated Report 2023 Part I – Management Report 84
 Talent attraction,
Retention and
Development Metric
Target 2025
Invest in training and 2022 2023 Target 2023
development programs
for employees 150
100 €
Investment in training
per employee
53 €
65 €
€

30
15.6 25
Number of hours
of training per employee 20

900
Hire new talent
547 700
Number of new hires 529

Integrated Report 2023 Part I – Management Report 11. Working at MCA 85

 11.1 Our Culture Breakfast with the Chairman 11.3 Talent Attraction
We organise breakfast meetings with the Chairman in all
· Acting in a spirit of mutual assistance; geographical regions where we operate. These meetings The total number of employees at the end of 2023
· Prioritising company success; provide an informal environment for employees to engage reached 1,265, which is 209 more than at the end of
· Being supportive and committed; with Manuel Couto Alves, the Chairman of the Board 2022. This increase was primarily driven by significant
· Achieving defined goals and objectives; of Directors, and discuss various topics and day-to-day hiring in Angola to meet project execution requirements,
· Adopting and promoting a collaborative approach in concerns. In 2023, this initiative took place in Guimarães, particularly in relation to Renewable Energy projects.
problem-solving; Pevidém, Luanda and Madrid.
· Making assertive decisions; In 2023, we hired 529 employees and experienced 300
· Communicating promptly and transparently; contract terminations, primarily due to the conclusion
· Promoting operational efficiency; of project-related contracts, as well as 28% voluntary
· Fostering accountability for decisions; terminations. The proportion of new hires represented
· Acting with transparency across the entire Company. 42% of the total workforce in 2023, as the International
Infrastructures business, where contracts are project-
linked, accounts for 76% of our activities.
11.2 Acting and Listening The number of hires fell short of our goal, primarily due
to delays in starting the execution of the Angola Rural
Electrification project, which resulted in some contracting
We offer various opportunities, formats and accessible
needs being deferred to 2024. In addition to addressing
spaces for listening to our employees, from informal to
our hiring needs for operational roles, we remain actively
formal settings. We operate transparently, responding
engaged with universities to attract young talent, for the
equitably to the diversity within MCA, as we believe that
ultimate purpose of meeting the needs of a company
a one-size-fits-all approach is not suitable for everyone.
undergoing continuous transformation and innovation.

In order to attract talent directly from universities and

Index of Excellence
promote MCA, we participate in recruitment fairs where
we showcase our company and answer the questions
We collected a total of 922 questionnaires, both on
posed by prospective candidates.
paper and via email, over a two-month period across all
MCA locations. These questionnaires were part of an
Speed Recruitment - FEP
organisational and human development study known as
An opportunity to meet promising professionals at the
the Index of Excellence.
University of Porto School of Economics and identify
individuals aligned with the culture and values of our
These two months were characterised by collaboration
company through five-minute interviews.
and agility, as we undertook efforts to distribute paper
questionnaires to employees without email. We faced
Start Point – Summit’23
obstacles with resilience, overcoming challenges that might
Largest recruitment fair held at the University of Minho,
have seemed easier to avoid. We appreciate the confidence
in Portugal
shown by employees in responding transparently and
honestly to personal and sensitive issues.
7th Trade Show Fair
A reverse model of recruitment fair where recruiters
We are committed to continuous improvement and our
come to meet promising talents at their stands at
goal is to become better with every step! This study
Tecmaia in Porto, and Lispolis in Lisbon, Portugal.
enables organisational leaders to assess their level of
excellence and the alignment of their people with various
Elite Recruitment Angola
organisational components. These aspects impact their
450 candidates interviewed within 2 days at an event
engagement, satisfaction and performance, as well as the
organised in Luanda, Angola.
achievement of organisational objectives and results.

Integrated Report 2023 Part I – Management Report 11. Working at MCA 86

11.4 Training and Development Forklift Training 11.5 A Good Place to Work 11.6 Promoting Efficiency
In December, a group of workers in Portugal received

11
We view training as part of the continuous development training on forklift manoeuvring. The training session, MCA has made substantial investments, both financially
of our employees and essential for the acquiring of skills held at MCA’s workshop in Guimarães, had a duration th Above average in the categories
of Satisfaction and Organizational and in terms of time allocation, to enhance efficiency and
needed to address current and future challenges. To of 8 hours and provided workers with the opportunity Involvement optimisation. This includes the adoption of new digital
this end, we have established a structure that provides to practice with actual forklifts, simulating the tasks position in the ranking tools and the reorganisation of business processes. Some
our employees with access to global training sessions, performed at shipyards. This session is part of our of large companies examples of our efforts to drive higher levels of efficiency
as well as training programmes tailored to address ongoing training programme for operational employees. across the company are presented below.
specific needs. Additionally, we offer our employees We strive to provide an exceptional working environment
multiple opportunities to participate in executive training to retain top talent, ensuring that those who choose
programmes provided by renowned business schools in all Bridge Building Training to pursue new challenges can one day return to a place i9 MCA – Transformation Programme
geographic regions where we operate. where they felt fulfilled and happy.
The first “Building Bridges” event was held in Angola MCA started a Transformation programme in 2022,
In 2023, our People & Leadership team designed a training on 17 and 18 March. The event aimed to foster Compensation is just one aspect of the value we offer known as i9 MCA (with “i9” denoting innovation in
plan that is being gradually implemented. This plan understanding of the power of human relationships, our employees. We stive to retain top talent by providing Portuguese). The programme experienced significant
includes the following components: emphasising the importance of active listening and the an attractive package that includes competitive pay and progress throughout 2023 and was launched in early
building of connections to enhance process effectiveness several other benefits, including the following: 2024.
· Training for Project Managers and value creation.
· Training Plan for First- and Second-Line Managers · Flexible working conditions, under our FlexiWork The modernisation of MCA’s ERP (Enterprise Resource
· Training Plan for Operational Profiles scheme, which includes FlexiTime (flexibility in Planning) system stands as a cornerstone of our
· Leadership Training Courses for New and Senior working hours), FlexiWorkplace (ability to work ongoing digital transformation programme. With the
Managers from different offices and from home) and FlexiLeave implementation of SAP S/4 Hana RISE, we now benefit
(birthday day off and flexible solutions for emergency from a comprehensive cloud solution that seamlessly
As part of the transition to our new SAP-based care, parental absences or training). integrates business processes and facilitates a more
Enterprise Resource Planning, MCA will continue to · A flexible benefits scheme that enables employees structured approach to information management, which
provide training to its employees on the use of this to allocate part of their compensation to expenses enables efficient process planning and optimises decision-
software, as well as change management. aligned with their personal needs and priorities. making processes.
In Portugal, 63% of workers opted for at least
Moreover, MCA offers regular training programmes one benefit, including education, additional health Additionally, we focused on improving digital workplace
to employees on cross-cutting topics such as Ethics & coverage, family assistance and mobility, among tools throughout 2023, primarily by leveraging the
Compliance and Cybersecurity. others. Microsoft 365 ecosystem, to foster collaboration and
· The “More Caring Attention Programme” aims to facilitate information sharing across the organisation.
improve the quality of life of all employees and their Moreover, we conducted training sessions over the year
Lead Boost families across various life domains, including social, to encourage the adoption of these tools, thus improving
legal, personal, financial and nutritional aspects. overall efficiency.
In September, we convened our colleagues with · We aim to broaden our network of partners by
management and leadership roles in Angola for a providing employees with discounts on products and In 2024, we expect to continue launching new digital
discussion session in Luanda. The session focused on services that promote health and well-being. tools, namely for people management and internal
topics such as empathetic and inclusive leadership, as well · Financial support to cover travel expenses related communication.
as clarity and agility in communication flows. to fuel/electricity, particularly in response to rising
energy prices.

Communication Workshop

In October, a group of colleagues participated in a

workshop where techniques used by actors were adapted
to improve communication and public speaking skills in a
corporate context.

Integrated Report 2023 Part I – Management Report 11. Working at MCA 87

Integration of Building Information Modelling Presently, our foremost priority is to ensure the PM Lean Coffee by PMI Portugal 11.7 Transparency
(BIM) in project development stabilisation of the recently launched GBS. Furthermore, we
are carefully evaluating additional integration opportunities MCA hosted a PM Lean Coffee organised by PMI Portugal
BIM is a methodology for standardising language and that align with our global strategy and organisational and MCA’s PMO team at its Douro Marina premises. Communicating transparently is essential for ensuring
creating tools for the Architecture, Engineering and objectives. PMI Portugal is the Portuguese branch of the Project alignment between stakeholders, whether internal or
Construction (AEC) sector. BIM enables the management Management Institute, dedicated to promoting project external.
of information throughout a project’s lifecycle by integrating The reorganisation of areas as part of the transition to management in Portugal and encouraging the adoption of
multidisciplinary data to create detailed digital visualisations a GBS model aims to establish end-to-end processes the best international project management practices. In 2023, we organised several initiatives in various
managed on a single platform for real-time collaboration. to ensure integration and operational efficiency across geographical regions to communicate our strategy and
all geographical regions. This initiative benefits MCA by results, as well as engage in open discussions with our
MCA began implementing BIM in 2021 and continued to reducing duplication of work, improving communication employees. Our 1st Town Hall and a recurring event
integrate this methodology across various business units and collaboration, and increasing operational efficiency. known as Breakfast with the Chairman stood out for
throughout 2023. BIM has provided greater visibility, better Regarding employees, it provides a clearer definition of providing numerous colleagues with the opportunity to
decision-making, more sustainable options and cost savings responsibilities, increased opportunities for collaboration discuss topics of interest with our Chairman.
in our projects. The key advantages of this methodology and professional development, and a more cohesive
include improved information management, project working environment. Regarding external communications, we remain actively
compatibility, reduced errors and a deeper understanding engaged with our stakeholders on multiple fronts, aiming
of projects. Additionally, BIM enables us to enhance client to reach diverse audiences.
experience by providing a virtual environment for viewing The role of the PMO – Project Management
the final product, thereby ensuring a better understanding Office MCA’s Integrated Report exemplifies our progression
of the expected design solutions. towards a broader disclosure of our performance.
In 2023, the PMO (Project Management Office) The report was compiled with inputs from numerous
focused on improving efficiency through the development MCA teams and approved by the Board of Directors.
Launch of Global Business Services of Lean management practices, which were successfully The Sustainability Committee also plays a key role
implemented in control rooms, based on the in monitoring sustainability targets and performance
In 2023, we initiated a reorganisation programme aimed at Kaizen philosophy. throughout the year, as well as encouraging debate
establishing a Global Business Services (GBS) department. on best practices and supervising the respective
Despite being fully launched in the beginning of 2024, the The team conducted a diagnostic study of project implementation.
department started operating in various stages throughout management maturity based on PMMM, which resulted
2023. in the development of a training plan aimed at improving
performance and behavioural skills. Additionally, the
The objective of Global Business Services (GBS) is to team established cross-group standards for project
centralise and optimise business processes to improve management, aligned with Project Management Institute
operational efficiency, reduce costs and promote standards, ensuring a unified and efficient approach to
standardisation and excellence across the organisation. project management.
Additionally, GBS seeks to empower the company to focus
on its core skills, enhance the internal customer experience
and increase transparency and control within processes. As
of the beginning of 2024, the following areas are operating
under this new model:
Target 2025
· Accounting 2022
Metric 2023 Target 2023
· Payables Transparency
· Receivables
· Master Data Management Disclosure of financial & Annual publication of Integrated Report
non-financial Information Integrated Report published in aligned with Sustainability best-practices
· Tax Public disclosure of Integrated 2023, regarding performance
· Insurance Report, with non-financial during 2022 Integrated Report published in
· Treasury disclosure according to GRI 2024, regarding performance
framework during 2023
· Planning & Control

Integrated Report 2023 Part I – Management Report 11. Working at MCA 88

 12.
About this Report

Integrated Report 2023 Part I – Management Report 89

 MCA’s Integrated Report aims to provide stakeholders Global Reporting Initiative (GRI): the world’s most MCA intends to further improve the quality of its
with relevant information for analysing the company’s widely used standards for sustainability reporting. MCA disclosure and meet the expectations of its stakeholders.
economic, environmental, social and governance practices prepared this report in accordance with GRI standards. If you have any questions regarding this report or wish to
and performance throughout 2023 (1 January to 31 provide your feedback, please use the following contacts:
December 2023). United Nations (UN) Sustainable Development
Goals (SDGs): report on the contribution of MCA General
Last year, we published the first Integrated Report, setting to the United Nations Sustainable Development Goals, +351 253 520 900
a new standard for how we aim to transparently provide drawing inspiration from the SDG Compass guide. [Link]
information to our stakeholders on the company’s ability
to create and distribute value over time. EU Taxonomy: MCA reports on the eligibility of its Hoogoorddreef 15
business activities under the EU Taxonomy. 1101 BA Amsterdam – Netherlands
This year’s report adheres to the same international
frameworks, as it is also our goal to ensure consistency Consolidated financial statements: prepared in Rua João Oliveira Salgado
in our reporting practices, enabling better comparability accordance with the International Financial Reporting 385 4810-015 Costa – Guimarães – Portugal
over time: Standards (IFRS) issued by the International Accounting
Standards Board (IASB), and in compliance with the
International Framework <IR>: providing insight into interpretations issued by the International Financial João Pedro Pereira
the resources and relationships used and allocated by an Reporting Interpretations Committee (IFRIC) or the Head of Strategy, M&A and Sustainability
organisation – collectively referred to as “the capitals” – former Standards Interpretations Committee (SIC), [Link]@[Link]
while explaining how the organisation interacts with the as adopted and in force in the European Union as of 1
external environment and capital to create, preserve or January 2022. These financial statements also adhere to
erode value in the short, medium and long term. MCA the financial reporting requirements outlined in Part 9 Maria Couto Alves
remains committed to aligning this report with the <IR> of Book 2 of the Dutch Civil Code. The Consolidated Head of Corporate Responsibility and Communication
and strives towards achieving full compliance as our Financial Statements of the MCA Group were prepared [Link]@[Link]
reporting evolves over time. on the assumption of continuity of operations, based
on the books and accounting records of the companies
that constitute the Group, adjusted in the consolidation
process, at the level of M. Couto Alves Holding B.V.

The non-financial information and governance practices

addressed in this report also pertain to MCA Group
companies, including activities in which MCA holds
a controlling interest. Where applicable, information
concerning uncontrolled activities is also included.
Regarding the governance model, M. Couto Alves Holding
B.V. is supported by a corporate structure that oversees
the management of all Group companies.

MCA’s Financial Statements have undergone an

independent assessment and are certified by its Statutory
Auditor. Regarding Non-Financial Information, we are
committed to improving the quality of the information
provided and voluntarily disclose a substantial amount of
data to ensure alignment with the <IR> and the GRI. As
this process progresses, we intend to submit non-financial
information to an independent entity for evaluation in the
future.

Integrated Report 2023 Part I – Management Report 12. About this Report 90
Although the future is uncertain, we are
confident in our ability to build a fairer, more Future
inclusive and sustainable world with the
determination and support of everyone. A
world built by the generations of the present
for the generations of the future.

We envision the future with pride, drawing

from our history of willpower, resilience
and determination, alongside the vast talent
we currently possess. As a company driven
Shared
by a robust purpose, we remain focused
on new technologies, open to continuous
diversification and dedicated to ensuring
Creating
workplace happiness. Guided by a strong
desire to leave a lasting legacy, we operate
our own businesses, striving to make positive
contributions to the communities we serve,
both now and in the future.

Let’s draw inspiration from the present to

shape the future, embracing change and
building an even greater legacy with every
step we take. We have an ambitious strategy
and well-defined next steps.

For the future is yet unwritten, but MCA

stands poised to forge it.

Integrated Report 2023 Part I – Management Report 91

 PART I I
Financial
Statements

Integrated Report 2023 Alterar 92

 13.
Consolidated
Financial
Information

Integrated Report 2023 93

Table of 1. Consolidated Financial Information 1.1 Consolidated Statement of Financial Position 98

Contents 1.2 Consolidated Income Statement

1.3 Consolidated Statement of Comprehensive Income
100
101
1.4 Consolidated Statement of Changes in Equity 102
1.5 Consolidated Statement of Cash Flows 103
1.6 Notes to the Consolidated Financial Statements 104
1. Introduction 104
2. Basis of preparation, consolidation and main accounting policies 104
2.1 Basis of preparation 104
2.1.1 Standards, amendments and interpretations issued effective for MCA 104
2.1.2 Standards, amendments and interpretations issued but not yet effective for MCA 104
2.2 Basis of consolidation 105
2.2.1 Controlled companies 105
2.2.2 Associated companies 105
2.2.3 Business combinations 106
2.2.4 Other changes in interests in controlled entities 106
2.2.5 Translation of financial statements of companies with a functional currency different from Euro 107
2.3 Main accounting policies 108
2.3.1 Intangible assets 108
2.3.2 Tangible assets – Premises 108
2.3.3 Other tangible assets 108
2.3.4 Impairment of tangible and intangible assets 109
2.3.5 Financial assets and liabilities 109
2.3.6 Leases / Right-of-use assets 111
2.3.7 Cash and cash equivalents 112
2.3.8 Inventories 112
2.3.9 Revenue 112
2.3.10 Accruals principle 114
2.3.11 Assets, liabilities and transactions in foreign currency 114
2.3.12 Income tax 114
2.3.13 Financial costs with loans obtained 115
2.3.14 Provisions 115
2.3.15 Employee benefits 115
2.3.16 Government grants 115
2.3.17 Contingent assets and liabilities 115
2.3.18 Subsequent events 115
2.3.19 Judgments and estimates 115
2.3.20 Cash flow statement 117
3. Business verticals 117
4. Intangible assets 118
5. Tangible assets 119
6. Costs to fulfil a contract 120
7. Right-of-use assets 121
8. Investments in associates 122
9. Other financial investments 124
10. Customers and other debtors 125
11. Inventories 126
12. Contract assets 127
13. Other current assets 128

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information

 14. Deferred taxes 128
15. Corporate income tax 130
16. Cash and cash equivalents 130
17. Share capital and reserves 130
18. Non-controlling interests 132
19. Loans and lease liabilities 134
20. Suppliers and sundry creditors 136
21. Contract liabilities 136
22. Other current liabilities 137
23. Corporate income tax 137
24. Provisions 137
25. Sales and services rendered 138
26. Cost of goods sold and materials consumed, Changes in production and Subcontractors 139
27. Third-party supplies and services 140
28. Wages and salaries 140
29. Other operating income / (expenses) 140
30. Amortisation and depreciation 141
31. provisions and impairment losses 141
32. Financial income and gains and Financial costs and losses 142
33. Gains in associated companies 142
34. Income tax 143
35. Contingent assets and liabilities 144
36. Related parties 144
37. Consolidation perimeter 144
38. Notes to the consolidated statement of cash‐flows statement 145
39. Financial instruments 146
40. Subsequent events 150
41. Fees paid to the Independent Auditor / Statutory Auditor 150
42. Approval of the financial statements 150
1.7 Appendix A 151

2. Company Financial Information 2.1 Company Statement of Financial Position 156

2.2 Company Income Statement 156
2.3 Company Statement of Comprehensive Income 157
2.4 Company Statement of Changes in Equity 157
2.5 Company Statement of Cash Flows 158
2.6 Notes to the Company Financial Statements 158
0. Introduction 158
1. Basis of preparation and main accounting policies 159
1.1 Basis of preparation 159
1.2 Main accounting policies 159
1.2.1 Financial investments in MCA companies159
1.2.2 Dividends 159
1.2.3 Amounts due from MCA companies 159
1.2.4 Amounts due to MCA companies 159
2. Financial investments in MCA companies 159
3. Other debtors 161

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information

 4. Other current assets 161
5. Cash and cash equivalents 161
6. Share capital and reserves 162
7. Loans 163
8. Suppliers and sundry creditors 163
9. Other current liabilities 163
10. Other operating Income 163
11. Third-party supplies and services 164
12. Wages and salaries 164
13. Financial instruments 164
14. Commitments and contingent liabilities 166
15. Subsequent events 166
Other information 167

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information

1.
Consolidated
Financial
Information

Integrated Report 2023 Part II – Financial Statements 97

1.1 Consolidated Statement of Consolidated Statement of Financial Notes 31-12-2023 31-12-2022

Financial Position Position as of 31st December 2023

and 2022 (Amounts in Euros)
ASSETS
Non current assets
Intangible assets 4 7 872 949 7 696 624
Tangible assets 5 27 945 216 25 698 341
Costs to fullfil a contract 6 8 515 516 9 030 181
Right-of-use assets 7 5 214 268 2 780 252
Investments in associates 8 8 702 707 9 829 958
Other financial investments 9 1 301 813 1 645 698
Customers and other debtors 10 311 211 273 886
Deferred tax assets 14 5 601 032 3 848 304
Total non current assets 65 464 712 60 803 244
Current assets
Inventories 11 34 907 509 51 075 205
Customers and other debtors 10 148 756 509 67 560 008
Contract assets 12 3 110 646 2 821 958
Corporate income tax 15 230 004 3 056 036
Other current assets 13 2 665 076 3 396 682
Other financial investments 9 9 977 860
Cash and cash equivalents 16 31 495 747 28 848 223
Total current assets 221 175 468 156 758 972
TOTAL ASSETS 286 640 180 217 562 216

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 98

 Notes 31-12-2023 31-12-2022
Consolidated Statement of Financial
Position as of 31st December 2023 EQUITY AND LIABILITIES
and 2022 (Amounts in Euros) Equity
Share capital 17 10 000 000 10 000 000
Share premiums 17 19 412 9 246 267
Reserves and retained earnings 9 450 747 744 470
Consolidated net profit for the year 37 823 929 11 973 905
Equity attributable to the shareholders 57 294 088 31 964 642
Non-controlling interests 18 3 437 579 5 770 791
Total Equity 60 731 667 37 735 433
Liabilities
Non current liabilities
Loans 19 10 631 256 10 708 006
Lease liabilities 19 4 174 941 1 870 234
Suppliers and sundry creditors 20 194 256 3 122 616
Provisions 24 4 052 499 3 402 069
Deferred tax liabilities 14 539 457 501 750
Total non current liabilities 19 592 409 19 604 675
Current liabilities
Loans 19 19 274 100 15 059 461
Lease liabilities 19 1 178 136 967 883
Suppliers and sundry creditors 20 55 416 046 39 148 273
Contract liabilities 21 67 033 570 60 210 750
Corporate income tax 23 7 705 061 2 054 548
Other current liabilities 22 55 709 191 42 781 193
Total current liabilities 206 316 104 160 222 108
Total liabilities 225 908 513 179 826 783
TOTAL EQUITY AND LIABILITIES 286 640 180 217 562 216

The accompanying notes form an integral part of the consolidated statement of

financial position and must be read in conjunction.

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 99

1.2 Consolidated Income Consolidated Income Statement for Notes 31-12-2023 31-12-2022

Statement the years ended 31st December 2023

and 2022 (Amounts in Euros)
Sales and services rendered
Other operating income
25
29
212 953 310
4 311 032
228 316 114
3 164 953
Total income 217 264 342 231 481 067
Cost of goods sold and materials consumed, Changes
26 (97 151 667) (152 597 250)
in production and Subcontractors
Third-party supplies and services 27 (31 306 317) (33 779 257)
Wages and salaries 28 (22 145 700) (18 154 451)
Other operating expenses 29 (14 389 181) (3 573 069)
Total expenses (164 992 865) (208 104 027)
Earnings before interest, taxes, depreciation,
amortisation, adjustments, impairment losses 52 271 477 23 377 040
and gains/losses in associated companies
Amortisation and depreciation 30 (3 496 199) (2 559 309)
Adjustments and impairment losses 31 (4 767 703) (2 363 944)
Earnings before interest, taxes and gains/losses in associated
44 007 575 18 453 787
companies
Financial income and gains 32 8 300 342 6 151 845
Financial costs and losses 32 (10 616 430) (10 331 925)
Earnings before taxes and gains/losses in
41 691 487 14 273 707
associated companies
Gains / Losses in associated companies 33 315 323 59 307
Profit before taxes 42 006 810 14 333 014
Income tax 34 (6 238 235) (1 209 517)
CONSOLIDATED NET PROFIT FOR THE YEAR 35 768 575 13 123 497

Attributable to:
The Shareholders of the Group 37 823 929 11 973 905
Non controlling interests 18 (2 055 354) 1 149 592
35 768 575 13 123 497

The accompanying notes form an integral part of the consolidated income

statement and must be read in conjunction.

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 100
1.3 Consolidated Statement Consolidated Income Statement for Notes 31-12-2023 31-12-2022

of Comprehensive Income the years ended 31st December 2023

and 2022 (Amounts in Euros)
Consolidated net profit of the year
Items that may be reclassified subsequently to income statement
35 768 575 13 123 497

Companies consolidated by the full consolidation method

Exchange differences on translation financial statements expressed in
17 (3 043 217) (13 578 066)
foreign currencies
Other comprehensive (expense) / income of Companies consolidated
15 613 72 343
by the full consolidation method
Companies accounted for using the equity method
Exchange differences on translation financial statements expressed in
8, 17, 24 (448 963) 113 053
foreign currencies
Other comprehensive income / (expense) of Companies consolidated
8, 24 (24 800) 518 351
by the equity method
(3 501 367) (12 874 319)
Items that will not be reclassified subsequently to income statement
TOTAL OTHER COMPREHENSIVE EXPENSE FOR THE YEAR (3 501 367) (12 874 319)
TOTAL COMPREHENSIVE INCOME/(EXPENSE) FOR THE YEAR 32 267 208 249 178

Attributable to:
The Shareholders of the Group 34 616 724 388 721
Non controlling interests (2 349 516) (139 544)
32 267 208 249 178

The accompanying notes form an integral part of the consolidated statement of

comprehensive income and must be read in conjunction.

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 101
1.4 Consolidated Statement Consolidated Statement of
of Changes in Equity Changes in Equity for the years
ended 31st December 2023 and
2022 (Amounts in Euro)

Reserves and retained earnings Equity attributable to Non-controlling

Notes Share capital Share premiums Net profit Total equity
Currency translation reserve Other reserves and retained earnings the shareholders interests

Balance as at 1st January 2022 10 000 000 9 246 267 (66 688 415) 85 007 791 (1 594 077) 35 971 566 20 016 924 55 988 490
Consolidated net profit for the year - - - - 11 973 905 11 973 905 1 149 592 13 123 497
Other comprehensive expense for the year - - (12 201 481) 616 297 - (11 585 184) (1 289 136) (12 874 319)
Total comprehensive expense for the year - - (12 201 481) 616 297 11 973 905 388 721 (139 544) 249 178

Appropriation of consolidated net profit of 2021

Transfer to legal reserves and retained earnings - - - (1 594 077) 1 594 077 - - -
Capital and share premiums decrease - - - - - - - -
Variation in the consolidation perimeter and others - - (4 447 500) 51 854 - (4 395 646) (14 106 589) (18 502 234)
BALANCE AS AT 31ST DECEMBER 2022 10 000 000 9 246 267 (83 337 396) 84 081 865 11 973 905 31 964 642 5 770 791 37 735 433
Balance as at 1st January 2023 10 000 000 9 246 267 (83 337 396) 84 081 865 11 973 905 31 964 641 5 770 791 37 735 433
Consolidated net profit for the year - - - - 37 823 929 37 823 929 (2 055 354) 35 768 575
Other comprehensive expense for the year 17, 18 - - (3 198 208) (8 997) - (3 207 205) (294 162) (3 501 367)
Total comprehensive income for the year - - (3 198 208) (8 997) 37 823 929 34 616 724 (2 349 516) 32 267 208

Appropriation of consolidated net profit of 2022

Transfer to legal reserves and retained earnings - - - 11 973 905 (11 973 905) - - -
Capital and share premiums decrease 17 - (9 226 855) - - - (9 226 855) - (9 226 855)
Variation in the consolidation perimeter and others - - - (60 422) - (60 422) 16 304 (44 117)
BALANCE AS AT 31ST DECEMBER 2023 10 000 000 19 412 (86 535 604) 95 986 351 37 823 929 57 294 088 3 437 579 60 731 667

The accompanying notes form an integral part of the consolidated statement of

changes in equity and must be read in conjunction.

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 102
1.5 Consolidated Statement Consolidated Statement of Notes 31-12-2023 31-12-2022

of Cash Flows Cash Flows for the years ended

31st December 2023 and 2022
OPERATING ACTIVITIES
Receipts from customers 178 049 731 241 884 265
(Amounts in Euro) Payments to supliers (122 885 105) (191 010 365)
Cash paid to employees (13 875 128) (14 738 774)
Cash flow generated by / (used in) operating activities 41 289 497 36 135 126
Income tax paid 221 535 (345 441)
Other cash receipts relating to operating activities (1 316 823) (3 923 286)
Net cash flow from operating activities (1) 40 194 209 31 866 400
INVESTMENT ACTIVITIES
Receipts arising from:
Financial investments 38 522 830 71 610
Tangible assets 392 918 223 000
Interest and similar income 12 936 -
928 685 294 610
Payments arising from:
Financial investments 38 (337 184) (771 640)
Tangible assets (3 349 423) (4 869 377)
Intangible assets (159 677) (478 308)
Costs to fulfil a contract (6 196 398) (9 030 181)
(10 042 682) (15 149 506)
Net cash from investment activities (2) (9 113 997) (14 854 896)
FINANCING ACTIVITIES
Receipts arising from:
Loans obtained 19 9 691 234 17 450 545
Other 68 656 -
9 759 890 17 450 545
Payments arising from:
Loans obtained 19 (27 162 652) (36 694 094)
Amortisation of finance lease contracts 19 (1 738 486) (995 190)
Interest and similar expenses (2 601 183) (3 484 535)
Reductions of capital 17 (6 500 000) -
Other (2 883) (3 724)
(38 005 203) (41 177 544)
Net cash from financing activities (3) (28 245 313) (23 727 000)
VARIATION OF CASH AND CASH EQUIVALENTS (4)= (1) + (2) + (3) 2 834 898 (6 715 496)
Effect of foreign exchange rate (532 764) 650 272
Cash and cash equivalents at the beginning of the year 30 308 405 36 369 381
Variation in the consolidation perimeter - 4 248
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 16 32 610 539 30 308 405

The accompanying notes form an integral part of the consolidated

Integrated Report 2023 Part II – Financial Statements statement of Cash Flow and should be read in conjunction. 103
1.6 Notes to the Consolidated 1. INTRODUCTION former Standards Interpretations Committee (SIC), as · Level 3 – the fair value is set based on theoretical
Financial Statements M. Couto Alves Holding B.V. with head office at
adopted and effective by the European Union as of 1st
January 2023.
models whose main assumptions cannot be observed
in the market.
Hoogoorddreef 15, Amsterdam, The Netherlands
(“MCA Holding” or “Company”) was incorporated on These financial statements also comply with the financial
12th December 2017 and has the registration number reporting requirements included in Part 9 of Book 2 of 2.1.1 Standards, amendments and
70291454 with the Dutch Chamber of Commerce. The the Dutch Civil Code. interpretations issued effective for MCA
Company’s country of incorporation and domicile is
the Netherlands. MCA Holding activity consists in the The attached consolidated financial statements were The new standards that have been issued and that are
management of financial holdings and, together with its prepared based on the historical cost, except for other already effective and that MCA has applied on its financial
subsidiaries (“MCA” or “Group”), have as its principal financial investments which are measured at fair value, as statements, with no significant impacts are the following:
activities the Development, Engineering, Procurement, described in the accounting policies below.
Construction and Operation of projects in Energies, Urban · IFRS 17 (New) – Insurance contracts;
Development, Infrastructures and Healthcare sectors. These consolidated financial statements provide
comparative information in respect of the previous period. · IFRS 17 (Amended) – Initial application of IFRS 17 and
All the amounts presented in these notes are expressed IFRS 9 – Comparative Information;
in Euro, rounded off to the unit, unless explicitly stated The fair value is the amount by which an asset can be
otherwise. exchanged or a liability settled, among parties with · IAS 1 (Amended) – Disclosure of Accounting Policies;
knowledge and willing to do so, in a transaction in which
there is no connection between them, regardless of the · IAS 8 (Amended) - Definition of Accounting
2. BASIS OF PREPARATION, fact that said price can be directly verified or estimated Estimates;
CONSOLIDATION using other valuation techniques. By estimating the fair
AND MAIN ACCOUNTING POLICIES value of an asset or liability, MCA takes into account the · IAS 12 (Amended) – Deferred tax related to assets
characteristics of the asset or liability that other players in and liabilities arising from a Single Transaction;
the market would also take into account when they valued
2.1 Basis of preparation the asset or liability on the measuring date. The fair value · IAS 12 (Amended) – International taxation reform –
for the purposes of measuring and disclosure in these Pilar Two model rules.(*)
The consolidated financial statements of MCA were financial statements is determined on the basis described
prepared on a going concern basis from the books above, except for the leases that are recognised under (*)According to Council Directive (EU) 2022/2523 of 14
and accounting records of the companies comprising IFRS 16, and measurements with similarities to the fair December 2022 and OECD recommendations, the MCA
MCA, adjusted in the consolidation process. The Board value, but which do not correspond to the fair value, such Group is not among the multinational entities that have
of Directors assessed the capacity of MCA as regards as the net realisable value established in IAS 2 or the value consolidated income exceeding 750,000,000 Euros in at
operating continuously, based on all relevant information, in use established in IAS 36. least 2 of the last 4 fiscal years. Therefore, the Group does
facts and circumstances of financial, commercial or other not fall within the scope of Pillar 2, which aims to ensure a
nature, including events after the date of reference of In addition, for the purposes of the financial report, minimum global level of taxation for multinational groups.
the financial statements, available on the future. As a measurement at fair‐value is divided according to a three‐
result of the assessment made, the Board of Directors tiered system (Level 1, 2 and 3), which take into specific
concluded that MCA has appropriate resources to consideration whether the inputs used are observable on 2.1.2 Standards, amendments
keep its business and has no intention to cease it in the the market and the significance of them in the valuation of and interpretations issued but not yet
short term. Therefore, it found appropriate the going the assets / liabilities or in their disclosure. effective for MCA
concern assumption in the preparation of the attached,
consolidated financial statements. The previously mentioned tiered system is the following: The standards, amendments and interpretations issued
but not yet effective for MCA (whose effective application
These consolidated financial statements were · Level 1 – the fair value is set based on prices of an date has not yet occurred or, despite their effective dates
prepared in accordance with the International Financial active market for identical assets/liabilities; of application, they have not yet been endorsed by the
Reporting Standards (IFRS) issued by the International EU) are the following:
Accounting Standards Board (IASB), and according to · Level 2 – the fair value is set based on data other
the interpretations issued by the International Financial than market prices identified in Level 1, but which can · IAS 1 (Amended) – Non-current Liabilities with
Reporting Interpretations Committee (IFRIC) or the be observed in the market; and Covenants;

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 104
 · IFRS 16 (Amended) - Leasings - Responsibility 2.2 Basis of consolidation The other comprehensive income of controlled companies
of a lease in a sale and leaseback transaction; is assigned to MCA and to the non‐controlling interests,
even if this results in the latter having a deficit balance.
· IAS 7 (Amended) and IFRS 7 (Amended) – Supplier 2.2.1 Controlled companies
finance arrangements; When necessary, the financial statements of controlled
The consolidated financial statements include the financial companies are adjusted, in a manner such that their
· IAS 21 (Amended) – The effects of changes in foreign statements of the Company and of the entities controlled accounting policies are consistent with those of MCA. The
exchange rates. by the Company, as well as those controlled by its transactions and balances between MCA companies are
subsidiaries. There is control when the company: (i) has eliminated in the consolidation process.
No significant impacts on MCA’s financial statements are power over the subsidiary; (ii) is exposed and/or is entitled
expected to occur as a result of the adoption of these to variable returns as a result of its involvement in the In the years ended 31st December 2023 and 2022, the main
standards, amendments and interpretations. subsidiary; (iii) has the capacity to use the above-mentioned transactions performed between MCA companies can be
power to influence the subsidiary’s returns. Therefore, summarised as follows:
MCA has not early adopted any other standard, some subsidiaries whose effective holding percentage held
interpretation or amendment that has been issued but is by MCA is below 50% may be considered to be controlled · Purchases and sales of inventories;
not yet effective. by the latter. Most of these situations occur when MCA
holds a majority financial holding in a subsidiary that, in turn, · Provision of construction services;
The consolidated financial statements are presented in Euro holds another majority holding in a subsidiary. On the other
since this is the main currency of MCA’s operations. The hand, some subsidiaries whose effective holding percentage · Provision of administrative services;
financial statements of the subsidiaries expressed in foreign held by MCA is higher than 50% may not be considered
currency were converted into Euro, in accordance with the to be controlled, given the existence of agreements with · Concession and obtainment of loans; and
accounting policies described in the Note 2.2.5. of the main third parties through which shared control over said holding
accounting policies herein. was set. Whenever there are changes in any of the three · Dividend distribution.
elements mentioned above in relation to an investee, MCA
In preparing the consolidated financial statements, in re-evaluates the existence of control over it.
accordance with the IFRS, MCA’s Board of Directors Controlled companies (included in the consolidated
adopted certain assumptions and estimates which affect MCA controls a subsidiary even if it does not hold the financial statements through the full consolidation method)
the reported amounts of assets and liabilities, as well as the majority of the voting rights when, by virtue of the voting are detailed in Appendix A.
respective income and expenses incurred, part of which rights held and/or the agreements entered into, it has the
are described in the Note 2.3.19. of the main accounting practical capacity to unilaterally manage the subsidiary’s
policies. relevant activities and be exposed to variable returns. 2.2.2 Associated companies

All estimates and assumptions made by the Board of Financial statements of controlled companies (including Investments in associated companies are recorded using
Directors were based on their knowledge of the events structured entities or SPV) are included in the consolidated the equity method and are included in the statement
and transactions in course, as of the date of approval of the financial statements through the full consolidation method of financial position under the item “Investments in
consolidated financial statements. in the moment MCA gains control. Consequently, the associates”.
results of the companies whose control was acquired or
The attached consolidated financial statements were lost during the year are included in the income statement, Investments in associates are investments in which MCA
prepared for appreciation and approval at the General respectively, as of the date control was taken or up to the holds a significant influence. The significant influence
Shareholders Meeting. MCA’s Board of Directors believes date it was granted. (presumed when voting rights exceed 20%) is the power
that they will be approved without amendment. to participate in the financial and operating decisions of a
The net income and further items of other comprehensive company, without exercising control or joint control over
income and equity of controlled companies, which it. In addition, regarding some companies whose effective
correspond to third party holdings of said companies (non‐ percentage holding held by MCA is below 20%, MCA
controlling interests), are presented in the consolidated exercises significant influence over them. Most of these
statement of financial position and in the consolidated situations occur when MCA holds a majority financial
statement of comprehensive income under specific items of holding in a subsidiary that, in turn, controls or exercises
“Non‐controlling interests”. significant influence in a subsidiary.

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 105
 Pursuant to the equity method, financial investments Unrealised gains on transactions with associated Future contingent payments, if applicable, are recognized
are initially recorded at their acquisition cost, which is companies are eliminated in the proportion of MCA’s as a liability at the time of acquisition at its fair value,
subsequently adjusted: interest in the associate against an entry in the item with any change in the initially recorded amount being
“Investments in associates”. Unrealised losses are likewise accounted against the carrying amount of goodwill, but
· By the amount corresponding to MCA’s holding eliminated, but only up to the point at which the loss does only if this occurs within the remeasurement period (12
in the comprehensive income (including the net not evidence that the transferred asset is in a situation of months after the acquisition date), and if it is related to
income of the year) of the associates ‐ against other impairment. events prior to the acquisition date. Otherwise, it should
comprehensive income of MCA or gains or losses of be recorded against the consolidated income statement.
the year, as applicable; Whenever necessary, the financial statements of the
associated companies are adjusted to ensure their When a business combination is achieved in stages, the
· By the dividends received – against an account consistency with the accounting policies adopted by MCA. interest previously held by MCA in the acquired company
receivable or liquidity; Investments in associates are detailed in Appendix A. is remeasured at fair value on the acquisition date and
the gain or loss arising therefrom, if any, is recognized in
· By eventual gains or losses in operations maintained the consolidated income statement. On the other hand,
with other MCA companies affecting the valuation of 2.2.3 Business combinations amounts arising from interests in the acquired company
MCA’s assets. before the acquisition date which had been recognized
Business combinations are recorded in accordance in other comprehensive income are reclassified to the
The acquisition of financial investments in associated with the acquisition method. The acquisition cost is consolidated income statement, provided that it was the
companies is recorded through the equity method. determined at fair value consisting in the sum, as of the proper treatment if that interest had been disposed of.
date of acquisition of control, of: (i) fair value of the
On the years ended 31st December 2023 and 2022, the assets transferred by MCA; (ii) fair value of the liabilities Therefore, any surplus / shortfall of the acquisition cost
main transactions performed between MCA companies incurred by MCA as a result of the acquisition of control; in relation to the fair value of the identifiable assets and
and associated companies can be summarised as follows: and (iii) fair value of the equity instruments issued by liabilities acquired of the associated companies, at the
MCA in exchange for the acquisition of control. Expenses acquisition date, is recognized, respectively, as goodwill
· Provision of administrative services; and associated with business combinations are recorded in the (being added to the carrying amount of the financial
consolidated income statement as they are incurred. investment), or as gain in the income statement of the
· Granting and obtaining loans. year under the caption “Gains / (losses) in associates and
On the acquisition control date, the identifiable assets and jointly controlled companies” (in the latter case, after the
An impairment analysis is performed to investments in liabilities acquired are measured at fair value being that proper reconfirmation of the fair value of the identifiable
associates when there is indication that the asset might measurement process be concluded within twelve months assets, liabilities and contingent liabilities).
be impaired, with a loss being recorded in the income from that date. For fair value measurement purposes,
statement whenever this is confirmed. The recoverable MCA uses the market prices in force for similar assets and On the other hand, future contingent payments and
amount of investments in associates is, for this purpose, liabilities or, in its absence, universally accepted valuation subsequent updates following the acquisition of financial
determined in accordance with the provisions of IAS techniques (comparable prices, discounted cash flows, investments in associated companies are recorded at fair
36. When impairment losses recognized in prior years among others). The excess of the cost of the combination value through the consolidated income statement.
no longer exist, they are subject to reversal (with plus the fair value of potential interests previously held
the corresponding gain being recorded in the income in the acquired entity and the value attributed to non-
statement). Impairment losses are recorded as a deduction controlling interests in relation to the fair value of 2.2.4 Other changes in interests in controlled
to the book value of the investments. identifiable assets and liabilities is recognized as goodwill. entities
If the above-mentioned difference is negative, it is
When MCA’s proportion of the losses in the associated recognized as a gain of the year under the caption “Other The acquisition of interests in companies that are
company exceeds the amount for which the financial operating income / (expenses)”, after reconfirmation already controlled is treated as a transaction between
investment is recorded, the investment is reported by of the fair value attributed to the identifiable assets and equity holders and, consequently, does not produce any
a null amount, as the equity in the associate is negative, liabilities acquired. MCA chooses, on a case-by-case basis, Goodwill or income. Thus, any difference between the
except if MCA has assumed commitments towards the the valuation of the non-controlling interests: (i) according respective cost and the book value of the corresponding
associate, recording a provision in these cases to meet to its proportion in the fair value of the acquired assets, non‐controlling interests acquired is directly recorded
those commitments. liabilities and contingent liabilities or (ii) by its fair value. in equity. Furthermore, when the disposal of interests in
controlled companies does not result in loss of control,
the potential differences between the amount transferred

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 106
 to non‐controlling interests and the price of the As of 31st December 2023 and 2022, the functional
transaction is recorded directly in equity. currencies used by the major subsidiaries of MCA, and the
Company itself were as follows:
When the disposal of interests in a company controlled
until then results in loss of control by MCA, a gain or Subsidiary Country Local currency Functional currency
loss in the income statement is recognised corresponding M. Couto Alves, S.A. Portugal Euro (EUR) Euro (EUR)
to the difference between: (i) the fair value of assets
Business Center Manzanares, S.L. Spain Euro (EUR) Euro (EUR)
received by MCA plus the fair value of potential interests
kept in that company and (ii) the book value of the M. Couto Alves Vias, S.A. Angola Kwanza (AOA) Kwanza (AOA)
company’s assets and liabilities in MCA’s consolidated MCA Deutschland GmbH Deutschland Euro (EUR) Euro (EUR)
financial statements and the potential non‐controlling M. Couto Alves Holding B.V. Netherlands Euro (EUR) Euro (EUR)
interests associated.

The (closing and average) exchange rates used as of 31st

2.2.5 Translation of financial statements of December 2023 and 2022 for the conversion into Euro
companies with a functional currency different of the financial statements of the main subsidiaries, jointly
from Euro controlled companies and foreign associates (entities that
do not use Euro as a functional currency) were as follows:
Assets and liabilities expressed in financial statements
of foreign companies (companies that do not use Euro 2023 2022
as a functional currency) are converted into Euro using Currency Year end Average Year end Average
the exchange rates in force on the reference date of the
Angola Kwanza (AOA) EUR/AOA 915.99 748.55 537.44 486.39
statement of financial position. Income and expenses, as
well as cash flows are converted to Euro using the average US Dollar (USD) EUR/USD 1.105 1.08 1.07 1.05
exchange rates in the year, except for foreign companies
using a functional currency considered hyperinflationary,
in which case the exchange rates in force at the reference
date of the statement of financial position are used. The
resulting exchange differences are recorded in equity
under the item “Currency translation reserve”.

Goodwill and fair value adjustments resulting from the

acquisition of foreign companies are treated as assets and
liabilities of said companies and converted into Euro in
accordance with the exchange rates in force at the year‐end.

Whenever a foreign company is disposed of (totally or

partially), the corresponding amount of the accumulated
exchange differences is recognized in the income
statement as a gain or a loss of disposal, if there is loss of
control, or transferred to non-controlling interests if no
loss of control occurs.

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 107
 2.3 Main accounting policies · The concession owner controls services provided best reflects the model by which future economic benefits
and the conditions in which they are provided for the assets are expected to be consumed by the
The main accounting policies adopted in the preparation (particularly through APDL – “Administração dos concession was taken into consideration. As a result, it
of MCA consolidated financial statement were as follows: Portos do Douro, Leixões e Viana do Castelo, S.A.” was determined that the concession intangible asset useful
regulating body); and life should be the duration of the concession contract.
Therefore, the concession assets are amortised on a linear
2.3.1 Intangible assets · The several assets used for the provision of services basis towards the duration of the concession contract.
revert to the concession owner at the end of the
Intangible assets are recorded at acquisition or production concession contract.
cost, minus amortisations and any accumulated impairment 2.3.2 Tangible assets – Premises
losses, and are recognised only if it is likely that they will On the other hand, the IFRIC 12 establishes the general
generate future economic benefits to MCA, if their cost principles for recording and measuring the rights and Premises (land and buildings for MCA’s own use) are
can be reasonably measured and if MCA has control over obligations under concession contracts with the previously initially recorded at the acquisition or production cost.
them. mentioned characteristics and establishes the following For the subsequent measurement of said premises MCA
models for their accounting: adopted the cost model as accounting policy, being the
Intangible assets are composed by the concession premises recorded at acquisition cost less accumulated
operation licenses (arising from the adoption of IFRIC 12), · Financial asset model – applicable when the depreciation and impairment losses.
by surface land rights, by software and by capitalized costs operator has an unconditional contractual right to
related costs to obtain a contract according to IFRS 15. receive funds or another financial asset from the Depreciation is imputed on a systematic basis using the
grantor corresponding to specific or quantifiable straight-line method during the estimated useful life of the
The IFRIC 12 applies to public service concession contracts amounts. In such situations, the operator should buildings, which varies between 10 and 50 years. Land is
under which the concession owner controls (regulates): record a financial asset (account receivable). In this not depreciated.
model, the grantor has little or no discretionary
· The services to be provided by the concessionaire power to avoid the payment due since the agreement Depreciation of real estate assets for own use is recorded
company (by means of use of the infrastructure), to generally is legally binding. on a monthly basis under the item “Amortisations and
whom and at what price; and depreciation”, in the income statement. Any changes to
· Intangible asset model – applicable when the the period of estimated useful life of real estate assets for
· Any residual interest on the infrastructure at the end operator receives the right to collect a tariff based on own use are carried out prospectively.
of the contract. the use of the infrastructure. In such situations, the
operator should record an intangible asset; and If existing any borrowing costs that arise in connection
The IFRIC 12 applies to infrastructures: with the acquisition, construction, or production of a
· Mixed model – applicable when the concession qualifying asset from the time of acquisition or from the
· That were built or purchased by the operator from contract simultaneously includes remuneration beginning of construction or production until its entry
third parties; commitments guaranteed by the grantor and into service are capitalized and subsequently amortized
remuneration commitments dependent on the degree alongside the related asset. In the case of a specific
· That already exist and to which the operator is of use of the infrastructure. financing arrangement, the respective borrowing costs
granted access. incurred for that arrangement during the period are used.
Observing the terms of the concession contract entered For non-specific financing arrangements, a financing rate
Therefore, and given the above, concessions held by MCA, into by MCA Marina de Gaia (concessionary company) in uniform within MCA is applied. Other borrowing costs are
allocated to the recreation marina area (MCA Marina de relation to the remuneration model, it was understood expensed.
Gaia), are in the scope of that IFRIC for the following that the operations of said concessionary company fit the
reasons: intangible asset model due, essentially, to the fact that
the concessionary have the right to charge users a tariff, 2.3.3 Other tangible assets
· MCA has a public service concession contract and since it assumes the operational, investment and the
established with a Public Entity (“Concession owner”) financing risk of the concession. Other tangible assets acquired after that date are
and during a pre-stablished period; recorded at acquisition cost less accumulated depreciation
For the purposes of the amortisation of the intangible and impairment losses.
· MCA performs the provision of public services assets related to the concession (including the tangible
through the use of infrastructures; assets employed on the concession), the method that Tangible assets in progress represent assets still under

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 108
 construction/development, and are recorded at acquisition write-off date, and are recorded in the income statement 2.3.5 Financial assets and liabilities
cost, less any accumulated impairment losses. under the item “Other operating income / (expenses)”.
Financial assets and liabilities
Depreciation is calculated after the assets are in condition
to be used, that is, when the assets are available for use 2.3.4 Impairment of tangible Financial assets and liabilities are recognized in the
and in the necessary conditions, in terms of quality and and intangible assets consolidated statement of financial position of MCA
technical reliability, to operate as intended by MCA’s when it becomes part of the contractual provisions of the
Board of Directors, and is imputed systematically using On each reporting date the book value of MCA’s tangible instrument.
the straight-line method during their useful life. The useful and intangible assets are revised to determine if there is
life of an asset is determined based on its expected use by evidence that said assets are impaired. In case there is such Financial assets and liabilities are initially measured at
MCA, its expected natural wear, its predictable technical evidence, the recoverable amount of said assets (or of the fair value. Transaction costs directly attributable to the
obsolescence and the possible residual value attributable cash-generating unit) is estimated, in order to determine acquisition or issue of financial assets and liabilities (other
to the asset. the extent of the impairment loss (if any). than financial assets or liabilities measured at fair value
through profit or loss) are added to or deducted from the
The depreciation rates used correspond to the following The recoverable amount of the asset or of the cash- fair value of the financial asset or liability, as the case may
periods of estimated useful life (in years): generating unit is the highest value between (i) the fair be, on initial recognition.
value minus costs to sell and (ii) the value in use. When
Tangible asset Years calculating value in use, the estimated future cash flows Transaction costs directly attributable to the acquisition
Equipment
are discounted using a discount rate, which reflects of financial assets or liabilities recognized at fair value
market expectations regarding the time value of money through profit or loss are recognized immediately in the
Basic equipment (excluding the one assigned
to concessions)
3 to 15 and the specific risks of the asset, or cash-generating unit consolidated income statement.
Administrative equipment 3 to 10
in relation to which the estimated future cash flows were
not adjusted. Financial assets
Transport equipment 3 to 5
Tools and utensils 3 to 5 Whenever the book value of the asset (or cash-generating All purchases and sales of financial assets are recognized
Other tangible assets 3 to 8 unit) is higher than its recoverable amount, an impairment on the date the respective purchase and sale agreements
loss is recognised. Impairment losses are immediately are signed, regardless of the financial settlement date.
recorded in the income statement under the item
Depreciation of other tangible assets is recorded on “Provisions and impairment losses”, unless said losses All financial assets recognized are subsequently measured
a monthly basis under the item “Amortisation and compensates for a revaluation excess recorded in equity. at amortized cost, or at fair value, (through other
depreciation”, in the income statement. Any changes to In this case, said losses will be treated as a decrease in said comprehensive income or through the income statement),
the period of estimated useful life of other tangible assets revaluation. depending on the business model adopted by MCA and
are carried out prospectively. the characteristics of its contractual cash flows.
Impairment losses are assigned to at the book value of
Subsequent expenses related to the replacement the cash-generating unit’s assets as follows: first at the Classification of financial assets
of tangible assets components incurred by MCA are Goodwill allocated to the cash-generating unit (if any) and
added to the respective assets, with the net amount then at the other assets of the cash-generating unit, on a a) Debt instruments and accounts receivable
of the replaced components being written off and pro rata basis given the respective book values.
recorded as a loss under the item “Other operating Fixed income debt instruments and accounts receivable
income/ (expenses)”. The reversal of accumulated impairment losses recognised that meet the following conditions are subsequently
in previous years only occurs when there is evidence that measured at amortized cost:
Maintenance and repair costs that neither increase the the accumulated impairment losses no longer exist or
useful life nor give rise to significant improvements in the decreased. The reversal of impairment losses is recognised · the financial asset is held taking into account a
items of the tangible assets are recorded as a cost in the in the income statement under the item “Provisions and business model whose purpose is to maintain it in
year when they occur. impairment losses”. The reversal of impairment losses order to receive its contractual cash flows; and
is undertaken up to the limit of the amount that would
Gains or losses resulting from the disposal or write-off of have been recognised (net of depreciation), if the prior · the contractual terms of the financial asset give rise, on
tangible assets are calculated by the difference between impairment losses had not been recorded. specific dates, to cash flows that are only payments of
the sale price and the net book value on the disposal/ principal and interest on the value of the capital in debt.

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 109
 The effective interest rate method is a method of The designation at fair value through other comprehensive Impairment of financial assets
calculating the amortized cost of a financial instrument and income is not permitted if the investment is held for
allocating its interest over the maturity period. trading or if it results from a contingent consideration MCA recognizes allowance for expected credit losses for
recognized within the scope of a business combination. debt instruments measured at amortized cost or at fair
For financial assets that are not acquired or originated value through other comprehensive income, as well as for
with impairment (i.e., assets with impairment on initial An equity instrument is held for trading if: accounts receivable from customers, other debtors, and
recognition), the effective interest rate is the rate that contract assets.
accurately discounts the estimated future cash flows · it is acquired primarily for the purpose of disposal in
(including fees and commissions paid or received form the short term; The amount of expected credit losses for the
part of the effective interest rate, transaction costs and aforementioned financial assets is updated at each
other premiums or discounts) over the maturity of the · on initial recognition, is part of a portfolio of identified reporting date in order to reflect changes in credit risk
instrument at its gross carrying amount on the date of its financial instruments that MCA manages together and that have occurred since the initial recognition of the
initial recognition. where there is evidence of a recent real pattern of respective financial assets.
short-term profit-taking; or
The amortized cost of a financial asset is the amount at Impairment losses expected for credit granted (accounts
which it is measured at the initial recognition less capital · if it is a derivative financial instrument (unless it is receivable from customers and contract assets) are
repayments, plus the accumulated amortization, using the linked to a hedging transaction). estimated using an uncollectibility matrix based on the
effective interest rate method, of any difference between credit history of MCA’s debtors adjusted for specific
that initial amount and the amount of the reimbursement, Investments in equity instruments recognized at fair value factors attributable to the debtors, as well as by the
adjusted for any impairment losses. through other comprehensive income are initially measured macroeconomic conditions that are estimated for the
at fair value plus transaction costs. Subsequently, they are future. For this purpose, the balances of customers and
Interest income is recognized in the consolidated income measured at fair value with the gains and losses arising other debtors were grouped taking into account similar
statement under “Financial income and gains”, using from their variation recognized in the other comprehensive credit risk profiles (country, business unit, type of debtor -
the effective interest rate method, for financial assets income. At disposal, the accumulated gain or loss generated public or private, etc.) and maturity intervals.
subsequently recorded at amortized cost or at fair value with these financial instruments is not reclassified to the
through profit or loss. Interest income is calculated by consolidated income statement, but is only transferred to MCA recognizes expected credit losses for lifetime credit
applying the effective interest rate to the gross carrying “Retained earnings”. from trade accounts receivable and other receivables, as
amount of the financial asset. well as for assets associated with customer contracts.
Dividends associated with investments in equity
Debt instruments and accounts receivable that meet the instruments recognized at fair value through other Derecognition of financial assets
following conditions are subsequently measured at fair value comprehensive income are recognized in the consolidated
through other comprehensive income: income statement at the time they are allocated / MCA derecognises a financial asset only when the
deliberated, unless they clearly represent a recovery of contractual rights to the asset’s cash flows expire, or when
· the financial asset is held taking into account a business part of the cost of the investment. Dividends are recorded it transfers the financial asset and substantially all the risks
model whose purpose provides for both the receipt of in the consolidated income statement under “Financial and benefits associated with its ownership to another
their contractual cash flows and their disposal; and income and gains”. entity. If MCA does not transfer or retain substantially
all the risks and rewards associated with ownership of a
· the contractual terms of the financial asset give rise, c) Financial assets at fair value through profit or loss financial asset but continues to control it, MCA recognizes
on specific dates, to cash flows that are only payments its interest in the asset retained and a liability equivalent
of principal and interest on the value of the capital in Financial assets that do not meet the criteria to be to the amount that it will have to repay. If MCA retains
debt. measured at amortized cost or at fair value through other substantially all the risks and rewards associated with the
comprehensive income are measured at fair value through ownership of a transferred financial asset, MCA continues
b) Equity instruments designated at fair value through profit or loss. to recognize the asset and further recognizes a loan for the
other comprehensive income amount received in the meantime received.
Financial assets recorded at fair value through profit or
At initial recognition, MCA may make an irrevocable choice loss are measured at the fair value determined at the In the derecognition of a financial asset measured at
(financial instrument to financial instrument) to designate end of each reporting period, and the respective gains amortized cost, the difference between its carrying amount
certain investments as equity instruments (shares) at fair or losses are recognized in the consolidated income and the sum of the consideration received and received is
value through other comprehensive income. statement, unless they are part of a hedging relationship. recognized in the consolidated income statement.

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 110
 Moreover, in the derecognition of a financial asset · when the liability is held for trading; or Derecognition of financial liabilities
represented by a debt instrument recorded at fair value
through other comprehensive income, the gain or loss · when the liability is designated to be recorded at fair MCA derecognises financial liabilities when, and
accumulated in the fair value reserve is reclassified to the value through profit or loss. only when, MCA’s obligations are settled, cancelled
consolidated income statement. or expired.
A financial liability is classified as held for trading if:
However, in the derecognition of a financial asset The difference between the carrying amount of the
represented by an equity instrument designated in the · is acquired primarily for the purpose of disposal in derecognized financial liability and the consideration
initial recognition irrevocably as recorded at fair value the short term; or paid or payable is recognized in the consolidated income
through other comprehensive income, the accumulated statement.
gain or loss in the revaluation reserve is not reclassified to · on initial recognition, is part of a portfolio of
the consolidated income statement, but transferred to the identified financial instruments that MCA manages When MCA exchanges with a particular creditor a debt
caption “Retained earnings”. together and where there is evidence of a recent real instrument with another substantially different terms, such
pattern of short-term profit-making; or exchange is accounted for as an extinction of the original
financial liability and recognition of a new financial liability.
FINANCIAL LIABILITIES · if it is a derivative financial instrument (unless it is
AND EQUITY INSTRUMENTS linked to a hedging transaction). Likewise, MCA accounts for substantial changes in terms
of an existing liability, or part of it, as an extinction of the
Classification as a financial liability or as equity instrument Financial liabilities recorded at fair value through profit or original financial liability and recognition of a new financial
loss are measured at fair value with the respective gains liability. It is assumed that the terms are substantially
Financial liabilities and equity instruments are classified or losses arising from their variation recognized in the different if the discounted present value of the cash
as liabilities or equity in accordance with the contractual consolidated income statement, unless they are linked to flows of the renegotiated financial liability, including
substance of the transaction. hedging operations. any commissions paid net of any commissions received,
discounted using the original effective interest rate is at
Equity instruments In cases where financial liabilities are measured at least 10 percent divergent from the value discounted from
fair value through profit or loss in a voluntary way by the remaining cash flows of the original financial liability.
The equity instruments issued by MCA are recognized for MCA, the own risk impact is recognized through other
the amount received, net of the costs directly attributable comprehensive income. If the change is not substantial, the difference between:
to its issuance. (i) the carrying amount of the liability before the
Financial liabilities measured subsequently at amortized modification; and (ii) the present value of future cash flows
The repurchase of equity instruments issued by MCA cost after the change, is recognized in the consolidated income
(own shares) is accounted for at its acquisition cost and statement as a gain or loss.
as a deduction from equity. Gains or losses inherent to Financial liabilities that are not designated or required
the disposal of own shares are recorded under “Other to be recorded at fair value through profit or loss are
reserves and retained earnings”. subsequently measured at amortized cost using the 2.3.6 Leases / Right-of-use assets
effective interest rate method.
Financial liabilities
The effective interest rate method is a method of LEASE LIABILITIES
After initial recognition, all financial liabilities are calculating the amortized cost of a financial liability and
subsequently measured at amortized cost or at fair value allocating its interest rate over the maturity period. Initial measurement of the lease liabilities (rents due from
through profit or loss. lease contracts)
The effective interest rate is the rate that accurately
Financial liabilities are recorded at fair value through profit discounts estimated future cash flows (including fees and As provided by IFRS 16, MCA measures the lease
or loss when: commissions paid or received that are an integral part of liabilities (rents due from lease contracts) on the
the effective interest rate, transaction costs, and other commencement date based on the present value of the
· the financial liability results from a contingent premiums or discounts) over the expected maturity of future payments of that lease contracts, discounted using
consideration arising from a concentration of business the financial liability in its carrying amount on the date of MCA’s incremental borrowing rate for each portfolio of
activities; its initial recognition. leases identified.

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 111
 MCA determines the lease term as the non‐cancellable These assets are accounted for at cost less accumulated The cost of goods sold and materials consumed follows
period of a lease, together with both: (i) periods depreciation and impairment losses. The cost of the following rules:
covered by an option to extend the lease, if the lessee is these assets comprises the initial costs and the initial
reasonably certain to exercise that option; and (ii) periods measurement of the lease liabilities (rents due from lease · Property / Real estate – specific cost (being the cost
covered by an option to terminate the lease, if the lessee contracts), deducted from the prepaid amounts and any of each specific land / property)
is reasonably certain not to exercise that option. incentives received.
· Materials and other inventories – average cost
MCA applies the recognition exemption provided by IFRS Depreciation of right-of-use assets is calculated on
16 for the leases where lease term is 12 months or less, a straight-line basis over their estimated useful lives,
or that are for a low-value asset. considering the lease contract terms. 2.3.9 Revenue

After the commencement date, the lease liabilities (rents Remeasurement of right-of-use assets Nature, performance obligations and moment of revenue
due from lease contracts) are increased to reflect interest recognition
on the liability and reduced to reflect the lease payments If MCA remeasures the lease liability (rents due from
made. lease contracts), the corresponding right-of-use assets i) Infrastructure
shall be adjusted accordingly.
Remeasurement of the lease liabilities (rents due from In Infrastructure Business MCA signs with public
lease contracts) and private entities various contracts for the
2.3.7 Cash and cash equivalents provision of construction services that include
MCA remeasures the lease liabilities (rents due from lease various components/tasks. Although in most cases
contracts), and adjusts the corresponding right-of-use The amounts included under the items “Cash and cash customers can benefit from the different components
assets, by discounting the revised lease payments, using an equivalents” correspond to cash in hand, bank deposits / tasks alone, since they are negotiated together,
unchanged discount rate, if either: (i) there is a change in at sight, term deposits and other cash investments the promise of transfer of each component is not
future lease payments resulting from a change in an index with maturity of three months or less, that are separately identifiable from the others. In addition,
or a rate used to determine those payments; or (ii) there repayable on demand and have an insignificant risk since the above-mentioned components / tasks are
is a change in the amounts expected to be payable under of change of value. typically highly interrelated and dependent on each
a residual value guarantee. other, MCA considers that they should be treated
as a single performance obligation. Thus, generally,
If there is a lease modification that do not qualifies to be 2.3.8 Inventories each construction contract is treated as a single
accounted as a separate lease, MCA remeasures the lease performance obligation.
liabilities (rents due from lease contracts) and adjusts Merchandise and raw materials and consumables are
the corresponding right-of-use assets, by discounting the valued at the lowest of their average acquisition cost and Accordingly, MCA recognizes the results of
revised lease payments, using a revised discount rate at their net realisable value (estimate of its sales price minus construction contracts, contract by contract,
the effective date of the modification. the costs to be incurred with their disposal). according to the costto-cost method (also called the
percentage of completion method or Input method),
The variable lease payments that do not depend in an Products and work in progress are valued at which is understood as the ratio between the
index or a rate are not included in the measurement of their production cost, which is lower than their expenses incurred in each contract by a certain date
the lease liabilities (rents due from lease contracts), nor market value. Production cost includes the cost of and the sum of these expenses with the estimated
the right-of-use asset. Those payments are recognised as incorporating raw material, direct labour and general costs to complete it. The differences obtained
cost in the period in which the event or condition that manufacturing overheads. between the amounts resulting from the application
gives rise to the payments occurs. of the percentage of completion method to the total
Adjustments are recorded to reflect the difference estimated income and the amounts previously invoiced
between the inventory book value and the corresponding are accounted for under the items of assets/contract
RIGHT-OF-USE ASSETS net realisable value, whenever the latter is lower on the liabilities. In addition, MCA’s Board of Directors have
reporting date. determined that the cost-to-cost method is the most
MCA presents the information related to lease contracts appropriate method to be used to measure the stage
under the caption Right-of-use assets, creating a separate Regarding inventories, adjustments to their net realisable of performance obligations in construction contracts.
line in the Statement of Financial Position. value are calculated based on market values and several
rotation indicators.

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 112
 For the purposes of applying the cost to cost method, resulting from the application of the performance the existence of a significant component of contract
costs for training, budgeting, relocation, etc. are not measurement report and the values invoiced until financing. If it exists, that component is treated as an
considered as they do not reflect the progress and that time are accounted for under the captions autonomous performance obligation, and its interest is
transfer of control to the client. assets / contract liabilities. In addition, MCA’s Board recognized as income over the estimated financing period.
of Directors have determined that the performance
In order to cover the expenses incurred during the measurement reports method is the most appropriate In addition, MCA also assesses the existence of a
warranty period of the construction contracts, MCA method to be applied to measure the level of significant financing component in the advances received
recognizes a liability to accommodate such legal accomplishment of the performance obligations in from customers. If it exists, that component is treated
obligation, which is calculated taking into account the development and engineering contracts. as a stand-alone performance obligation and its interest
historical values of production and expenses incurred is recognized as cost over the estimated period of the
in contracts under warranty period. In view of the iii) Real Estate financing.
fact that MCA’s quality warranties result solely from
a legal obligation (both in its scope and in its period In situations where MCA has the ability (control) to Variable components of revenue
of validity), these were not treated as autonomous guide the use of the asset as it is being constructed
performance obligations. and the ability to obtain substantially all the remaining For the purpose of determining the total price of
economic benefits of it (namely in the real estate the contract, MCA takes into account all the variable
ii) Development and Engineering promotion activity), revenue is recognized when components of the contract, including discounts, bonuses,
MCA transfers control of the asset to the customer price revisions, penalties, recovery of costs incurred, etc.
In Development and Engineering services, MCA (usually at the time of the signing of the deeds for the
executes agreements with public and private entities property). However, MCA only recognizes revenue associated with
to render development and Engineering services variable components when it is highly probable that a
that include several components / tasks. Although, Costs incurred with real estate projects developed by reversal thereof will not occur in the future. Thus, with
in most cases, clients can benefit from the different MCA are determined taking into account the direct regard to price revisions, since the calculation formula
components / tasks independently, given that they are construction costs, as well as all the costs related inherent in its calculation generally includes some indices
negotiated together, the promise of transferring each to their preparation as well as the ones associated that are difficult to estimate, the associated revenue
one of them is not separately identifiable from the with the licensing of works. Costs imputable to the is recognized only when it can be reliably determined.
others. Additionally, given that the components / tasks financing, supervision and inspection of projects are Likewise, since MCA has not historically been subject to
referred to above are typically highly interrelated and also capitalised, if they are underway. penalties applied by its clients, they are only recognized
interdependent, the Group believes that they should when it is highly probable that they will materialize. Finally,
be treated as a single performance obligation. Thus, iv) Operation and maintenance services claims for recovery of costs incurred (which include, among
each agreement is generally treated as being a single others, claims) are only considered as revenue when it is
performance obligation. Regarding the provision of infrastructure operation highly likely that the customer will accept such a request
and maintenance services, as customers receive and and that the amount will not be reversed in the future.
On the other hand, given that the clients have the consume simultaneously the economic benefits arising
capacity (control) to guide the use of the asset as it from MCA’s performance as it carries out its activities Contract assets
is being developed and the capacity to substantially (operation and maintenance of infrastructures), the
obtain all the economic benefits remaining therefrom, performance obligation of MCA in these cases is Contract Assets correspond to the performance
the MCA performance obligation in these cases is met satisfied over time, and the revenue is recognized obligations already fulfilled by MCA under agreements with
over time, and revenue is recognised in accordance when MCA is entitled to invoice the services rendered. customers for which the respective invoicing has not yet
with the percentage of completion using performance been issued (essentially production executed under cost-
measurement reports (described below) to determine Generally, and given the type of services performed by to-cost method). When the respective invoicing is issued
same. MCA, price allocation to different performance obligations and the right to receive it is unconditional, the balance of
Therefore, MCA recognises the results of is established in the contracts established with customers. this item is transferred to “Customers and other debtors”.
development and Engineering contracts, on a contract-
by-contract basis, in accordance with the percentage Significant components of financing Contract liabilities
of completion, determined from the performance
measurement reports (Output method), which Whenever there is a significant time lag (more than 1 Liabilities associated with contract assets correspond
accurately reflects the evolution of the work on a given years) between the time a good or a service is available to to advances received from customers regarding future
date. The differences obtained between the values the customer and the time of collection, MCA evaluates performance obligations to be executed by MCA or to

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 113
 deferred income resulting from the adoption of the cost- 2.3.11 Assets, liabilities and transactions in 2.3.12 Income tax
to-cost method, in particular, to construction contracts in foreign currency
progress. Income tax for the year is calculated based on the
At the time of initial recognition, all foreign currency taxable profit or loss of the companies included in the
Costs to fulfil a contract transactions are recorded in the functional currency of consolidation (in accordance with the tax rules in force in
the respective entity by applying to the amount in foreign the country where they operate) and considering deferred
In accordance with accounting standard IFRS 15, are currency the spot exchange rate between the functional taxation.
recognized costs to costs to fulfil a contract as an asset currency and the foreign currency at the date of the
when they meet certain criteria: transaction. Deferred taxes are calculated based on the statement of
financial position liability method and refer to temporary
· The costs relate directly to a contract or a specific At the end of each reporting period: a) the monetary items differences between the amounts of the assets and
anticipated contract; in foreign currency are converted at the closing exchange liabilities reported for accounting purposes and their
rate; b) non-monetary items which are measured in terms respective amounts for tax purposes.
· The costs generate or enhance resources of the of historical cost in a foreign currency are converted at
entity that will be used in satisfying the performance the exchange rate at the transaction date; and c) the non- Deferred tax assets and liabilities are calculated and
obligations in the future; monetary items measured at fair value in a foreign currency evaluated annually using the tax rates in force, or
are converted at the exchange rate at the date when the announced to be in force, as of the date of the reversal of
· The costs are expected to be recovered; and fair value was determined. the temporary differences.

· They are not already covered by another IFRS The exchange differences arising from the liquidation of Deferred tax assets are recorded only when there are
standard, such as inventories, tangible assets or monetary items or the conversion of monetary items at reasonable expectations of sufficient future tax profits to
intangible assets. rates other than those at which they were converted at recover them. On each statement of financial position date,
their initial recognition, or in previous financial statements, a reassessment is made over the temporary differences
Labour costs, materials and other indirect costs or are recognised in the income statement for the period underlying the deferred tax assets in order to recognise
other specific costs with the installation, mobilization of except when they result from monetary items that form deferred tax assets not recorded previously since they
construction sites in construction contracts are recognized part of the net investment of a foreign operational unit. In did not meet the requirements for their recording and/
under this item. this case, these currency conversion differences are initially or to reduce the amount of said assets to the current
recognised in other comprehensive income and reclassified expectation about their future recovery. More specifically,
MCA reviews the carrying amount of the asset and from equity to the net profit of the year at the time of the as regards the recognition of deferred tax assets associated
recognizes any impairment loss immediately in profit or disposal of that operating unit. with tax losses carried forward, those are only recorded
loss when the economic benefits of the asset are lower when the business plan of the respective company supports
than its carrying amount. Currency exchange differences related to investment/ their full recovery within the legal deadlines set.
financing (financial) transactions are recorded under sub
MCA presents the costs to fulfil a contract as a separate items of “Financial income and gains” and “Financial costs The amount of tax to be included, both in current tax and
line item in the statement of financial position and and losses”. deferred tax, arising from transactions or events recognised
amortizes the costs over the period of the contract. The under items of other comprehensive income is recorded
amortization method reflects the pattern of transfer of the Currency exchange differences related to operating directly under these same items, and does not affect the
services to which the asset relates. transactions are recorded under sub items of “Other net profit of the year.
operating income / (expenses)”.
Deferred tax liabilities are recognized on all taxable
2.3.10 Accruals principle In preparing the consolidated financial statements, the temporary differences, except those related to: i) the initial
results, the cash flows and the financial position of recognition of goodwill; or ii) the initial recognition of
MCA adopts the accruals accounting principle as regards the entities comprised in the consolidation perimeter, assets and liabilities, which do not result from a business
the majority of the items in the financial statements. whose functional currency is not the currency of a combination, and which at the date of the transaction do
Therefore, expenses and income are recorded as they are hyperinflationary economy, are converted into Euro at the not affect the accounting or tax result.
incurred, regardless of their time of payment or receipt. exchange rates listed in Note 2.2.5. above.

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 114
 2.3.13 Financial costs with loans obtained Provisions for legal proceedings Investment grants are recognised in the income statement
during the period of the estimated useful life of the
The financial costs associated with loans obtained related Provisions for legal proceedings are recorded at the time it assets granted under the item “Other operating income /
with the acquisition, construction or production of is determined that an outflow of funds to MCA is likely to (expenses)”.
qualifying assets are capitalised, thus being incorporated occur, being those provisions reviewed annually based on
in the cost of the asset. The capitalization of these costs the opinion of the corresponding lawyers/legal consultants
begins with the preparation of the activities of construction in charge of the proceedings. 2.3.17 Contingent assets and liabilities
or the development of the asset and is interrupted after
the start of use, at the end of the construction of the asset Provisions for restructuring are only recognised by MCA Contingent assets are not recognised in the consolidated
or when the construction of the asset is suspended. when there is a formal and detailed restructuring plan and financial statements, but they are disclosed in the Notes
it has been disclosed to the parties involved. whenever it is probable that there will be a future
The remaining financial costs associated with loans obtained economic benefit.
are recognised as expenses in the year they are incurred.
2.3.15 Employee benefits Contingent liabilities are not recognised in the consolidated
financial statements, but are disclosed in the Notes, unless
2.3.14 Provisions Benefits granted to current and former employees the possibility of an outflow of funds affecting future
economic benefits is remote.
Provisions are recognised when, and only when, MCA A liability is recognised to handle benefits granted to
has a present obligation (legal or implicit) arising from a employees as regards wages, vacations and holiday pay in
past event, it is likely that in order to settle this obligation the period in which employees provide the service, and it is 2.3.18 Subsequent events
there will be an outflow of funds and the amount of the recognised at the amount of benefits expected to be paid.
obligation can be estimated reasonably. The provisions are Events occurring after the date of the statement of financial
reviewed on each date of statement of financial position Recognised liabilities regarding benefits granted to current position that provide additional information on conditions
and adjusted so as to reflect the best estimate on that employees are measured at the undiscounted amount which existed as of the date of the statement of financial
date (expected amount of the outflow to incur), taking of the benefits expected to be paid in exchange for the position (adjusting events) are reflected in the consolidated
into account the risks and uncertainties inherent to such services provided. financial statements.
estimates. When a provision is calculated considering the
future cash flows required to settle the obligation, it is Recognised liabilities concerning long-term benefits granted Events after the date of the statement of financial position
recorded by its net present value. The discount rate used to employees are measured at the current amount of that provide information on conditions which occur after
in the aforementioned financial update corresponds to the future expected payments regarding the services provided the date of the statement of financial position (non-adjust-
average rate of financing of the respective company at the by the employees up to the reporting date. ing events), if material, are disclosed in the Notes to the
reporting date. consolidated financial statements.
Pensions
Provisions for onerous contracts
MCA has not attributed any pension plan (through a 2.3.19 Judgments and estimates
Current obligations arising under onerous contracts defined benefit pension plan or a contribution pension
are recognised and measured as provisions. An onerous plan) to current or former employees neither to any of its In preparing the consolidated financial statements, MCA’s
contract is found to exist when MCA faces a situation in current or former directors. Board of Directors based its work on its best knowledge
which the unavoidable costs to meet the duties of the and experience of past and/or current events, considering
contract exceed the economic benefits expected to be certain assumptions relative to future events.
received under said contract. 2.3.16 Government grants
The most significant accounting estimates reflected in the
Provisions for work warranty Grants attributed to fund staff training actions are consolidated financial statements for the year ended on 31st
recognised as income during the period of time during December 2023 and 2022(and correspondent sources of
Provisions to handle expected costs with warranties under which MCA incurs the respective costs and are presented uncertainty) include:
construction contracts are recorded on the date the in the income statement by their met amount.
construction revenue is recognised, according to the best
estimate of the Board of Directors of the outflows of funds Grants attributed to fund investments in tangible or
required to meet said duty. intangible assets are deferred and recorded as liabilities.

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 115
 Net realisable value of properties / real estate recorded in coherence and consistency of the assumptions used (in of the proceedings necessary to deal with the uncertainty
inventories similar situations). inherent in the outcome of such proceedings.

Some of MCA’s property assets (namely lands) recorded Information on the most relevant assumptions used in the The amount and valuation of legal tax proceedings
in inventories, which presents evidence of impairment, are impairment analysis, as well as the sensitivity analysis of the underway, notably related to uncertain tax positions, is
subject to impairment tests that are based on the calcu- results achieved against certain changes in assumptions is detailed in Note 14.
lation of the net realisable value of said properties. The disclosed in Note 4.
net realisable value of those properties is often calculated Measurement and recognition of deferred tax
through valuations, which inevitably have underlying un- Calculation of impairment losses in accounts receivable
certainties associated with several factors, such as market The recognition of deferred tax assets implies the existence
prices, yields, demand, among others. To mitigate the ef- Impairment losses in accounts receivable are calculated of taxable profits in the future. Furthermore, deferred
fect of said uncertainties the Board of Directors resorted, in accordance with Note 2.3.5. above. Therefore, the tax assets and liabilities are calculated based on the
whenever possible, to qualified and independent experts to calculation of impairment through individual analysis interpretation of the tax legislation in force in the several
conduct the appraisals. When the appraisals are conducted corresponds to MCA’s judgment on the economic and jurisdictions in which MCA operates. Therefore, changes
by in-house technicians, said appraisals must always use as financial situation of its customers and to its estimate of in tax legislation or in its interpretation by the competent
much observable market data as possible. the value attributed to potential existing guarantees, with authorities may have an impact on the amount of deferred
consequent impact on expected future cash flows. taxes. Lastly, the recoverability of deferred tax assets also
The information about the results of the valuations carried depends on the performance of the operations of the
out by independent experts is detailed on Note 11. On the other hand, the expected impairment losses on several entities included in the consolidation perimeter,
the credit granted are calculated taking into account a set situation over which MCA does not have full control. In
Useful lives of tangible and intangible assets of historical information and assumptions, which may not order to mitigate the degree of uncertainty associated with
be representative of the future uncollectability of MCA’s these estimates, particularly regarding the interpretation of
MCA revises the estimated useful lives of its tangible and debtors. applicable tax legislation, MCA and the several companies
intangible assets on each reporting date. The useful lives of included in its consolidation perimeter resort to external
the assets depend on several related factors, such as their The information on the main assumptions used in the tax consultants.
use, MCA’s strategic decisions, as well as the economic determination of the impairment losses in accounts
surroundings of the several companies included in the receivable is disclosed at Note 10. In Note 14. are detailed the calculations of the deferred
consolidation perimeter. Therefore, MCA implemented a tax. In particular, is detailed the information the amount of
process for the revision of the estimated useful lives, which Revenue recognition in construction contracts in progress reportable tax losses for which no deferred tax assets was
provides for the above-mentioned factors and other factors recorded, based on prudence.
considered relevant for such purpose. Revenue arising from construction contracts in progress
is recognised in relation to its completion stage. The The several aforementioned estimates were calculated
The useful lives of tangible assets are detailed completion stage is a very relevant estimate based on the based on the best available historical information as of the
in Notes 2.3.2. and 2.3.3. forecast of costs to be incurred until the conclusion of date of preparation of the consolidated financial statements.
the contract. This process is mainly based on the inputs The underlying judgments to said estimates take into
Impairment analyses of investments in associates, tangible received from the technicians involved in the works, by consideration the overall economic surroundings of the
and intangible assets virtue of their detailed knowledge of said works, their sector and of the geography in which the several companies
experience and their technical skills. included in the consolidation perimeter operate, as well
Impairment analyses require the calculation of the fair value as their expected future development. Given its nature,
and/or the value in use of the assets in question (or of MCA revenues, which includes the construction contracts those judgments are subject to a reasonable degree of
some cash generating units). This process requires a high on progress estimates, is detailed in Note 25. uncertainty. Therefore, in subsequent periods there will be
number of judgments, namely estimated future cash flows situations which, due to their unforeseeable nature, were
associated to the assets or the respective cash generating Determination of the outcome of legal not taken into consideration in the estimates and which
units, and the determination of an appropriate discount proceedings underway may produce an outcome different from the expected.
rate for the calculation of the present value of said cash Changes in these estimates after the consolidated financial
flows. Therefore, MCA established as requirement the use The outcome of legal proceedings underway, as well as the statements date will be corrected in profit and loss
of as much observable market data as possible. MCA also respective need for provisions, is estimated based on the prospectively, pursuant to IAS 8.
established monitoring mechanisms for calculations based opinion of MCA’s lawyers/legal consultants. MCA’s legal
on criticism and challenge to determine the reasonableness, consultants have the technical skills and detailed knowledge

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 116
As of the preparation date of these consolidated financial · Urban Development; The financial information by business verticals, with
statements no relevant changes in the estimates produced reference to 31st December 2023 and 2022 can be
are foreseen and, therefore, no material changes in · Infrastructures; analysed as follows:
recorded assets and liabilities based on those estimates are
expected. · Health Care; 2023 2022
Sales and services rendered
· Others.
Energies 122 885 058 115 608 716
2.3.20 Cash flow statement
Energies Urban Development 62 430 487 49 837 919
The consolidated statement of cash flows is prepared in Infrastructures 26 331 757 61 527 498
accordance with IAS 7, through the direct method. MCA Driving the energy transition through turnkey renewable Health Care - -
classifies under the item “Cash and cash equivalents” energy, storage and electrification solutions in Africa, whilst
Others 1 306 008 1 341 981
investments with maturities of less than three months building a distinctive portfolio of energy transition assets,
and for which the risk of change of value is insignificant, namely in renewables, circular economy and CO2 offset in 212 953 310 228 316 114
excluding captive amounts of term deposits, as well as Europe. OPEX
deposits given in guarantee under contractual clauses. Energies (72 205 356) (99 043 268)
Urban Development
Urban Development (62 317 086) (48 003 996)
The consolidated statement of cash flows is classified into
operating, investment and financing activities. Working with partners to tailor the best solutions for Infrastructures (24 455 159) (56 260 943)
clients, whether its developing last-mile logistics platforms Health Care (659) (853)
Operating activities comprise receipts from customers, and tech centers or seeking solutions for affordable & Others (1 703 573) (1 630 014)
payments to suppliers, payments to staff, and others multifamily housing.
(160 681 833) (204 939 074)
related to operating activities.
Infrastructures EBITDA
The cash flow involved in investment activities include, Energies 50 679 702 16 565 448
in particular, acquisitions and disposals of investments in Planning, building, rehabilitating and conserving different Urban Development 113 401 1 833 923
subsidiaries and payments and receipts arising from the types of infrastructure, core to the development of
Infrastructures 1 876 598 5 266 555
purchase and sale of fixed assets. communities where we operate. From roads and bridges
to water & sanitation, civil works, maritime, power and Health Care (659) (853)
The cash flow related to financing activities include, namely, electrical facilities. Others (397 565) (288 033)
payments and receipts associated with to loans received, 52 271 477 23 377 040
finance lease contracts and payment of dividends. Health Care

Holding a competitive portfolio of healthcare and senior The costs for each verticals are calculated by identifying
3. BUSINESS VERTICALS living assets in niche geographical areas in Portugal. the expenses directly attributable to that verticals, such as
salaries and wages, rent, utilities, and depreciation of assets
MCA uses its internal organization for management Others used by that segment.
purposes as a basis for its reporting of information by
business verticals. A business verticals is an identifiable The amounts related to MCA Holding and other In addition to these direct costs, indirect costs that are
component of MCA, aimed at providing a single product or instrumental companies are included in the caption shared across multiple verticals, such as administrative
service, or a MCA of related products or services, and it is of “Others”. expenses and corporate overheads, are also allocated to
subject to risks and returns that can be distinguished from each verticals based on an appropriate allocation method,
those of other business verticals. These segments were used taking into consideration the such as the relative revenues or assets of each segment.
fact that they correspond to MCA units that develop
From January 1, 2022, MCA is organized according with the activities where it is possible to identify separately By providing a clear and transparent breakdown of costs
following business verticals: their income and expenses, for which separate financial for each business verticals, companies can gain valuable
information is prepared, for which its operating results insights into their operations and make more informed
· Energies; are reviewed by management and over which decisions decisions to improve their profitability and long-term
are taken. sustainability.

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 117
4. INTANGIBLE ASSETS In the year ended on 31st December 2023 Intangible · Networks of water, sewage, fire, energy,
assets in progress are mainly explained by the amount of communications and lighting services;
Information regarding “intangible assets”, with reference to 1,076,281 Euro of investment made as part of the digital
31st December 2023 and 2022 can be analysed as follows: transformation process that the MCA is undergoing · Equipment for handling vessels, mooring structures
and parking of dry and swim boats.
31st December 2023:
As of 31st December 2023 and 2022, the item “Concession During the term of the concession, MCA has an obligation
2023 operation licenses” refers essentially to the concession to keep assets and means attached thereto in proper
Concession Surface land Software and Intangible assets operation rights granted to the company MCA Marina de conditions of operation, maintenance and safety, performing
Total
operation licenses rights other rights in-progress Gaia, regarding a recreational marina concession. all repairs, renewals and adjustments necessary to keep
Gross amount assets in the required technical conditions.
Opening balance 10 677 175 1 242 883 558 816 549 040 13 027 914 The concession of the recreational marina included in
“Concession operation licenses” was obtained in August Concessionaire should prepare and keep the inventory
Increases - 175 687 - 527 241 702 928
2010 for a period of 30 (thirty) years and, as such, as of the of assets and rights related to concessions, sending the
Disposals - - (3 544) - (3 544)
31st December 2018, there were 21 years of concession Grantor detailed information upon request, as well as
Exchange rate differences - (475 023) 7 335 - (467 688) remaining. sending information regarding write‐offs carried out.
10 677 175 943 547 562 607 1 076 281 13 259 610
During 2019, as a consequence of the negotiations held The Concessionaire keeps the right to use assets related
Accumulated amortization and impairment
with the Grantor, there was an extension of the concession to concession until the end of the concession. Assets
Opening balance (4 555 053) (262 793) (513 444) - (5 331 290)
contract for an additional 30 years period. As such, as of related to the concession can only be used for the purpose
Increases (Note 30.) (127 852) (18 163) (24 824) - (170 839) the 31st December 2023 and 2022 the concession is being foreseen in it. The right of ownership over the buildings
Disposals - - 3 544 - 3 544 amortized for a 60 years period, having 47 years remaining promoted by the Concessionaire in the dominion zone, will
and 48 years remaining as of that date, respectively. automatically revert to the Portuguese State for free at the
Exchange rate differences - 111 924 - - 111 924
end of the term of the concession.
(4 682 905) (169 032) (534 724) - (5 386 661)
The scope of the Concession is to build and operate the
CARRYING AMOUNT 5 994 270 774 515 27 883 1 076 281 7 872 949 Recreation Marina (Port) of Vila Nova de Gaia, including the The supervision of concessions is the responsibility of APDL
acquisition and installation of all equipment and accessories – Administração dos Portos do Douro, Leixões e Viana do
31st December 2022: necessary for its proper functioning. Castelo, S.A., which is empowered to set the tariffs to be
applied, as well as to approve investment plans.
2022 Assets allocated to the concession are:
It is the responsibility of the Concessionaire to maintain
Concession Surface land Software and Intangible assets
operation licenses rights other rights in-progress
Total
· The concession area / land; and operate the recreational marina and comply with the
Gross amount
following obligations:
Opening balance 10 663 097 982 083 836 893 - 12 482 073
· All unmovable and movable things, such as existing
installations, equipment and infrastructures attached to · Assume, for execution, the technical content in the
Variation in the consolidation contract;
perimeter
- - (278 077) - (278 077) the ground for permanence, if they are not included in
Increases 14 078 93 458 - 549 040 656 576
i) above;
· Draw up the organization chart of the staff for the
Exchange rate differences - 167 342 - - 167 342
· The assets to be created, constructed, acquired or business;
10 677 175 1 242 883 558 816 549 040 13 027 914 installed by the Concessionaire in compliance with the
Accumulated amortization and impairment Concession Contract, which are indispensable for the · Indicate those responsible for quality control and the
adequate development of the authorized activities, safety of work in the operation, responding to the
Opening balance (4 427 573) (202 684) (482 832) - (5 113 089)
according to the program of the tender and proposal proper fulfilment of these obligations;
Variation in the consolidation
perimeter
- - - - - presented by the concessionaire, such as:
· To monitor and direct the work related to the
Increases (Note 30.) (127 480) (25 573) (30 612) - (183 665)
· Buildings; preparation, planning and control of the exploration;
Exchange rate differences - (34 536) - - (34 536)
(4 555 053) (262 793) (513 444) - (5 331 290) · Port infrastructures; · To monitor and direct technical matters, including
CARRYING AMOUNT 6 122 122 980 090 45 372 549 040 7 696 624
quality control relating to the performance of the
exploration;

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 118
 · To keep the installations in good condition, being 5. TANGIBLE ASSETS
in charge of the necessary expenses for the effect,
being obliged not to make any innovations or changes Information regarding “tangible assets”, with reference to
without prior written authorization of the Grantor; 31st December 2023 and 2022, can be detailed as follows:

· Whenever it proposes any relevant change to the 31st December 2023:

operating program, it shall submit together with it
all the elements necessary for its proper assessment, 2023
including in particular the report or explanatory Land and Other tangible Tangible assets
Equipment Total
memorandum describing the proposed solution, Buildings assets in progress
indicating any implications for the uses of personnel and Gross amount
costs and, where appropriate, drawings and supporting Opening balance 22 230 140 15 902 854 585 269 7 699 175 46 417 438
calculations and quality specifications thereof.
Variation in the consolidation 34 339 27 084 - - 61 423
perimeter
As of 31st December 2023 and 2022, the accumulated Increases 731 418 4 218 756 363 802 1 214 242 6 528 218
amortization opening balance of “Concession operation
Disposals (1 492 167) (2 930 414) (2 772) - (4 425 353)
licenses” includes accumulated impairments recognized in
previous years totalling 2,500 thousand Euro. Exchange rate differences (12 340) (2 843 920) (13 665) (72 161) (2 942 086)
Transfers and other movements 2 146 619 5 529 686 - (7 676 305) -
The measurement of the existence of signs of impairment in 23 638 009 19 904 046 932 634 1 164 951 45 639 640
intangible assets and the carrying out of the respective tests,
Accumulated depreciation
if needed, are carried out on an annual basis as mentioned in
Note 2.3.4. above. Opening balance (7 475 957) (13 154 702) (88 437) - (20 719 096)
Variation in the consolidation
(11 979) (15 829) - - (27 808)
perimeter
As a result of this impairment test, no impairment was
recognized on 2023 and 2022 financial statements. Increases (Note 30.) (520 887) (1 551 900) (70 402) - (2 143 189)
Disposals 644 645 2 593 117 2 772 - 3 240 535
As of 31 December 2023 and 2022, if it had been used a
st
Exchange rate differences 38 147 1 904 355 12 655 - 1 955 157
0.25% higher discount rate or a 10% lower growth rate of
Transfers and other movements - (208) 185 - (23)
cash flows, the results obtained in the above test would not
have caused any significant impairment to be recorded. (7 326 031) (10 225 167) (143 227) - (17 694 424)
CARRYING AMOUNT 16 311 978 9 678 879 789 407 1 164 951 27 945 216
The item “Surface land rights” refers essentially to rights
to use lands in Angola, namely MCA premises, sites
In the year ended on 31st December 2023, the increase in In the year ended on 31st December 2023, the disposals
and warehouses in that country. According to Angolan
tangible assets was explained, essentially, by the acquisition of tangible assets stemmed from the inventory process
legislation, the land cannot be privately owned, but only
of equipment (basic equipment and transport equipment conducted throughout the year 2023. This procedure also
used throughout surface land rights, which, in this case, lasts
for construction projects) in Angola (nearly 3,378 aimed to assess the deteriorating condition of equipment
for a 60 year period.
thousand Euro) and tangible assets in progress related that had already become obsolete.
to the ongoing project to build a new headquarters and
As of 31st December 2023 and 2022, MCA has neither
support workshops for our operations in the Portuguese
intangible assets whose ownership was restrained, nor
geography (nearly 1,165 thousands Euro).
intangible assets given as guarantee for loans obtained.
However, the licence for the operation of the concession
In the year ended on 31st December 2023 the transfers
may not be transferred without the prior approval of
observed at the level of Tangible assets in progress are
the Grantor. Likewise, there are no other contractual
explained by the commencement of operations at the
commitments for the acquisition of intangible assets.
Mainbio industrial unit in the first half of 2023.

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 119
In the year ended on 31st December 2023, there are no 6. COSTS TO FULFIL A CONTRACT
relevant costs with borrowing costs.
Costs to fulfil a contract refers essentially to costs
31 December 2022:
st
incurred and capitalized related to the “Angola Rural
Electrification Project”. These costs are recognised as an
2022 asset because it is expected to recover them.
Land and Other tangible Tangible assets
Equipment Total
Buildings assets in progress To determine the amount of costs incurred to fulfill a
Gross amount contract, MCA used the recognition method detailed in
Opening balance 19 143 319 15 051 973 474 767 4 103 424 38 773 483
Note 2.3.9., under the item “Costs to fulfil a contract”.
Additionally, MCA made the following judgments in order
Variation in the consolidation
perimeter
2 815 226 (416 302) - - 2 398 924 to determine this amount:
Increases 439 303 897 528 105 152 3 610 749 5 052 732
· Labour costs, materials and other indirect costs
Disposals (194 645) (577 597) - (35 000) (807 242)
or other specific costs with the installation,
Exchange rate differences 26 937 941 396 5 350 25 858 999 541 mobilization and demobilization of construction sites
Transfers and other movements - 5 856 - (5 856) - in construction contracts are accounted in specific
22 230 140 15 902 854 585 269 7 699 175 46 417 438
and project dedicated records, allowing a project
management by cost center.
Accumulated depreciation
Opening balance (6 125 325) (11 955 405) (34 536) - (18 115 267) · Estimation, based on contracts signed with suppliers,
Variation in the consolidation
(980 893) (62 334) - - (1 043 227)
of costs incurred and not yet invoiced. These
perimeter estimations are performed by the project managers
Increases (Note 30.) (358 003) (1 046 611) (50 692) - (1 455 306) and corroborated by experienced engineers.
Disposals - 387 375 - - 387 376
Exchange rate differences (11 736) (477 727) (3 209) - (492 672)
· The costs to fulfil a contract with a client are
recognized only when it is highly probable that the
Transfers and other movements - - - - -
contract will be executed.
(7 475 957) (13 154 702) (88 437) - (20 719 096)
CARRYING AMOUNT 14 754 183 2 748 152 496 832 7 699 175 25 698 341 Information regarding “costs to fullfill a contract”, with
reference to 31st December 2023 and 2022, can be
detailed as follows:
In the year ended on 31st December 2022, the increase in The variation in the consolidation perimeter its related
tangible assets was explained, essentially, by the acquisition to the completion of fair value allocation exercise related
31st December 2023:
of equipment (basic equipment and transport equipment to the companies acquisitions that took place in 2021, in
for construction projects) in Portugal and Angola (nearly particular the companies Edimade and Edimade II.
2023 2022
704 thousand Euro), acquisition of land in Polish geography
(nearly 428 thousand Euro) and tangible assets in progress In the year ended on 31st December 2022, the disposals Opening balance 9 030 181 -
related to the construction of industrial facilities in in tangible assets were explained, essentially, by the sale Increases 6 244 287 9 030 181
Mainbio (nearly 3,610 thousands Euro). of equipment (basic equipment and transport equipment) Amortisations (Note 27.) (6 758 952) -
in Portugal (about 340 thousand Euro of gross amount).
CARRYING AMOUNT 8 515 516 9 030 181
In the year ended on 31st December 2022 Tangible
assets in progress are mainly explained by the amount In the year ended on 31st December 2022, there are no
of 7,524,566 Euro of industrial facilities in Mainbio. MCA relevant costs with borrowing costs.
plans to start the operation in the first semester of 2023.

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 120
As of 31st December 2023 and 2022, the increases 7. RIGHT-OF-USE ASSETS
observed of the recognized contract assets can be detailed
as follows: Information regarding the Right-of-use assets, with
reference to the 31st December 2023 and 2022 can be
Costs to fullfil a contract 2023 2022 analysed as follows:
“Angola Rural Electrification Project” costs
31st December 2023:
Third-party supplies and services 4 263 919 4 837 127
Wages and salaries 1 932 479 4 157 194 2023
Other operating expenses 1 604 16 980 Land and Buildings Equipment Other tangible assets Total
Amortisation and depreciation 38 882 13 900 Gross amount
Financial costs and losses 7 403 4 980 Opening balance 401 797 9 064 757 27 962 9 494 516
TOTAL COSTS TO FULLFIL A CONTRACT 6 244 287 9 030 181 Disposals 2 925 780 699 512 - 3 625 292
Increases - (33 836) - (33 836)
The costs incurred are related with Angola Rural 3 327 577 9 730 433 27 962 13 085 972
Electrification Project, a contract for development and Accumulated depreciation
execution of a project which foresees the sustainable Opening balance (192 505) (6 493 798) (27 962) (6 714 264)
electrification of 60 communes in Angola, located in
Increases (Note 30.) (217 554) (964 617) - (1 182 171)
the provinces of Moxico, Lunda Norte, Lunda Sul, Bié
and Malanje. This rural electrification is part of Angola’s Disposals - 24 729 - 24 729
strategic planning and long-term vision for the electricity (410 059) (7 433 686) (27 962) (7 871 704)
sector, reflected in the document “Angola Energia 2025”. CARRYING AMOUNT 2 917 519 2 296 747 - 5 214 268

The developed solution includes 1) Photovoltaic

31st December 2022:
generation systems with lithium-ion battery storage
(isolated systems) which operate autonomously without
2022
recourse to any diesel generation; 2) Expansion of the
national electricity grid; and 3) Electrification of communes Land and Buildings Equipment Other tangible assets Total
through the construction of medium/low voltage Gross amount
distribution networks, and the supply and installation of Opening balance 401 797 8 858 214 27 962 9 287 973
pre-paid meters in homes.
Disposals - (371 563) - (371 563)
The Project will contribute with an addition of Increases - 578 106 - 578 106
approximately 482 GWh per year of energy from 100% 401 797 9 064 757 27 962 9 494 516
renewable sources to the Angolan electrical system, Accumulated depreciation
through the increase of 296 MWp of PV capacity,
Opening balance (182 699) (5 954 830) (27 962) (6 165 490)
719 MWh of energy storage capacity, as well as the
electrification of a total of more than 200 thousand Increases (Note 30.) (9 806) (910 532) - (920 338)
homes, providing access to electricity to around 1 million Disposals - 371 563 - 371 563
Angolans. (192 505) (6 493 799) (27 962) (6 714 264)
CARRYING AMOUNT 209 292 2 570 958 - 2 780 252
The project’s engineering, procurement and construction
initiated in July 2023.
In the year ended on 31st December 2023, the increase in In the year ended on 31st December 2022, the increase
right-of-use assets was explained, essentially, by the lease in right-of-use assets was explained, essentially, by the
agreement established related to industrial facilities in Mainbio acquisition of transport equipment in Portugal.
and by the acquisition of transport equipment in Portugal.

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 121
 Variation
8. INVESTMENTS IN ASSOCIATES Opening in the Equity
Effect on
Share of Closing
2022 profit and Other
balance consolidation increase OCI balance
loss
As of 31st December 2023 and 2022, the investments in perimeter
associates were as follows: Sines - Sinalização de Estradas, S.A. 615 340 102 248 - 213 669 50 928 - 982 184
MCA Agro, Lda. (277 645) (59 887) - (191 365) 572 660 270 696 314 459
Description 2023 2022 Elan - Electricidade e Montagens de
305 946 29 878 - (43 141) 32 174 - 324 857
Angola, S.A.
Sines - Sinalização de Estradas, S.A. - 982 184
Biosure Waste and Energy GmbH. 14 465 - - (14 465) - - -
MCA Agro, Lda. - 314 459
Surpresa Singular, Lda. 4 181 213 - - (197 200) - 273 668 4 257 681
Elan - Electricidade e Montagens de Angola, S.A. 182 989 324 857
Paraíso Presente, S.A. 905 696 - - (6 096) - 200 250 1 099 850
Biosure Waste and Energy GmbH. - -
Hospital Terra Quente, S.A. 2 097 668 - 40 000 283 006 - - 2 420 674
Surpresa Singular, Lda. 4 294 843 4 257 683
HPC - Hospital Privado de Chaves, S.A. 226 944 - - 2 842 - - 229 786
Paraíso Presente, S.A. 1 131 700 1 099 849
HB - Hospital Bragança, S.A. 188 410 - - 12 058 - - 200 467
Hospital Terra Quente, S.A. 2 693 595 2 420 673
8 258 037 72 238 40 000 59 307 655 763 744 613 9 829 958
HPC - Hospital Privado de Chaves, S.A. 174 483 229 786
HB - Hospital Bragança, S.A. 225 097 200 467
8 702 707 9 829 958
In 2023, MCA divested its equity stake in the associate
company Sines - Sinalização de Estradas, S.A..
Furthermore, MCA augmented its ownership in the
In the years ended on 31st December 2023 and 2022, the company MCA Agro, Lda. which was included in the
entries occurred in the investments in associates were as consolidation scope by the full consolidation method
follows: in the same year (Note 37). As of 31st December 2023,
the “Variation in the consolidation perimeter” column is
Variation
Effect on
explained by these operations.
Opening in the Equity Share of Closing
2023 profit and Other
balance consolidation increase OCI balance
perimeter
loss In the year ended on 31st December 2023, MCA
Sines - Sinalização de Estradas, S.A. 982 184 182 247 - 157 255 (416 458) (905 228) -
proceeded with the sale of its stake in the company Sines
trough amortizing/extinguishing 33.19% of the shares held
MCA Agro, Lda. 314 459 551 068 - - - (865 527) -
by MCA Vias. The total amount resulting from this equity
Elan - Electricidade e Montagens de amortization, once Sines had an amount receivable from
324 857 - - (9 317) (130 029) (2 522) 182 989
Angola, S.A.
MCA Vias (related to loans granted in previous years), was
Biosure Waste and Energy GmbH. - - - - - - -
used to offset Sines outstanding credit to MCA Vias. This
Surpresa Singular, Lda. 4 257 681 - - (2 339) - 39 501 4 294 843 operation resulted in an accounting gain of approximately
Paraíso Presente, S.A. 1 099 850 - - (7 524) - 39 374 1 131 700 70 thousands Euro.
Hospital Terra Quente, S.A. 2 420 674 - 40 000 232 922 - - 2 693 595
As of 31st December 2023 and 2022, the “Share of OCI”
HPC - Hospital Privado de Chaves, S.A. 229 786 - - (55 303) - - 174 483
column includes, essentially, the impact of exchange rate
HB - Hospital Bragança, S.A. 200 467 - 25 000 (370) - - 225 097 differences.
9 829 958 733 315 65 000 315 323 (546 487) (1 694 402) 8 702 707
As of 31st December 2023 and 2022, the column “Other”
includes increases/transfer in/to loans granted to the
associated companies.

As of 31st December 2023 and 2022, the “Closing balance”

column includes 5,507 thousand Euro and 6,287 thousand
Euro, respectively, related to loans granted to the
associated companies.

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 122
As of 31st December 2023 and 2022, the summary The reconciliation of the associated companies’
information on the investments in associates, taken summarized financial information to the respective
from their individual financial statements, can be carrying amounts as of 31st December 2023 and 2022,
detailed as follows: can be presented as follows:

Non Non Sales and 2023

Current Current Net
2023 % held current current Equity services
assets liabilities profit Elan - Biosure HPC -
assets liabilities rendered HB - Hospital
Electricidade e Waste and Surpresa Paraíso Hospital Terra Hospital
Elan - Electricidade e Montagens de Bragança,
38.31% - 564 631 - 87 018 477 614 141 282 (24 319) Montagens de Energy Singular, Lda. Presente, S.A. Quente, S.A. Privado de
Angola, S.A. S.A.
Angola, S.A. GmbH. Chaves, S.A.
Biosure Waste and Energy GmbH. 60.00% - 21 537 2 500 23 925 (4 889) - - Net assets adjusted 477 614 - 8 589 686 5 029 777 9 174 371 683 443 1 196 688
Surpresa Singular, Lda. 50.00% - 8 619 647 8 760 642 25 720 (166 715) - (4 678) % held 38,31% 60,00% 50,00% 22,50% 29,36% 25,53% 18,81%
Paraíso Presente, S.A. 22.50% - 5 358 775 - 5 343 995 14 780 - (33 440) Group’s interest in net
assets of investee at year 182 989 - 4 294 843 1 131 700 2 693 595 174 483 225 097
Hospital Terra Quente, S.A. 29.36% 14 716 852 4 391 434 6 054 123 3 879 910 9 174 253 10 425 034 911 971
end
HPC - Hospital Privado de Chaves, Group’s interest in net
25.53% 8 353 355 475 235 6 454 414 1 316 703 1 057 474 1 781 134 (405 294)
S.A. assets of investee at the 324 857 - 4 257 681 1 099 850 2 420 674 229 786 200 467
HB - Hospital Bragança, S.A. 18.81% 12 024 716 195 674 8 730 858 1 238 565 2 250 966 594 244 (3 007) beginning of the year

35 094 922 19 626 933 30 002 537 11 915 836 12 803 482 12 941 694 441 233 Equity increase - - - - 40 000 - 25 000
Total comprehensive
income attributable (139 346) - (2 339) (7 524) 232 922 (55 303) (370)
Non Non Sales and to the Group
Current Current Net
2022 % held current current Equity services Others (2 522) - 39 501 39 374 - - -
assets liabilities profit
assets liabilities rendered
CARRYING
Sines - Sinalização de Estradas, S.A. 33.19% 2 587 367 3 284 681 44 317 2 868 268 2 959 463 2 070 138 780 283 AMOUNT
MCA Agro, Lda. 27.50% 57 294 178 917 859 890 1 360 089 (1 983 768) 177 188 (695 936) OF INTEREST 182 989 - 4 294 843 1 131 700 2 693 595 174 483 225 097
IN INVESTEE
Elan - Electricidade e Montagens de AT YEAR END
38.31% 572 408 2 423 944 - 2 148 453 847 900 747 832 (46 769)
Angola, S.A.
Biosure Waste and Energy GmbH. 60.00% - 21 537 2 500 23 925 (4 889) - (28 938)
2022
Surpresa Singular, Lda. 50.00% - 8 595 237 8 710 642 46 632 (162 037) - (45 235)
Sines - Elan - HPC -
Paraíso Presente, S.A. 22.50% - 5 262 103 - 5 213 884 48 220 - (18 518) Biosure Hospital HB -
Sinalização Electricidade Surpresa Paraíso Hospital
MCA Agro, Waste and Terra Hospital
de e Montagens Singular, Presente, Privado de
Hospital Terra Quente, S.A. 29.36% 14 977 983 4 400 681 6 873 712 4 260 257 8 244 695 10 021 994 1 070 038 Lda. Energy Quente, Bragança,
Estradas, de Angola, Lda. S.A. Chaves,
GmbH. S.A. S.A.
HPC - Hospital Privado de Chaves, S.A. S.A. S.A.
25.53% 8 635 264 289 392 6 750 196 821 827 1 352 633 909 807 17 227
S.A. Net assets adjusted 2 959 463 1 143 592 847 900 - 8 515 362 4 888 221 8 244 799 900 065 1 065 747
HB - Hospital Bragança, S.A. 18.81% 7 881 517 143 782 4 318 831 1 708 376 1 998 092 485 976 120 576
% held 33.19% 27.50% 38.31% 60.00% 50.00% 22.50% 29.36% 25.53% 18.81%
34 711 834 24 600 275 27 560 089 18 451 711 13 300 309 14 412 934 1 152 727 Group’s interest in net
assets of investee at year 982 184 314 459 324 857 - 4 257 681 1 099 850 2 420 673 229 786 200 467
end
Group’s interest in net
assets of investee at the 615 340 (277 645) 305 946 14 465 4 181 213 905 696 2 097 668 226 944 188 410
beginning of the year
Equity increase 102 248 (59 887) 29 878 - - - 40 000 - -
Total comprehensive
income attributable to 264 596 381 296 (10 967) (14 465) (197 200) (6 096) 283 006 2 842 12 057
the Group
Others - 270 696 - - 273 668 200 250 - - -
CARRYING
AMOUNT
OF INTEREST 982 184 314 459 324 857 - 4 257 681 1 099 850 2 420 674 229 786 200 467
IN INVESTEE
AT YEAR END

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 123
9. OTHER FINANCIAL INVESTMENTS Other financial investments recorded at amortized cost

As of 31st December 2023 and 2022, the detail of other As of 31st December 2023 and 2022, there are pledged
financial investments was as follows: amounts of 1,142,792 Euro and 1,460,182 Euro,
respectively, included in non-current item “Term bank
2023 2022 deposits”. These amounts will be made available in
Non current Current Non current Current
equal and successive instalments, in accordance with
the repayment from the customers to the respective
Other financial investments recorded at amortized cost
financial institutions.
Term bank deposits 1 114 792 9 977 1 460 182 860
1 114 792 9 977 1 460 182 860 Other financial investments recorded at fair value through
Other financial investments recorded at fair value through other comprehensive income
other comprehensive income
Other 187 021 - 185 516 - Since financial investments included in item “Other
187 021 - 185 516 -
financial investments recorded at fair value through other
comprehensive income” correspond to shares held in non-
TOTAL 1 301 813 9 977 1 645 698 860
listed companies, MCA’s Board of Directors considered
that their acquisition cost, net of any impairment losses, if
any, corresponded to the best estimate of their fair value
on 31st December 2023 and 2022.

In the years ended 31st December 2023 and 2022, the

entries in other financial investments were as follows:

2023 2022
At amortized At amortized
At fair value Total At fair value Total
cost cost
Opening balance 1 461 043 185 516 1 646 559 1 680 247 484 611 2 164 859
Variation in the consolidation perimeter - - - - (350 275) (350 275)
Increases 182 944 10 365 193 309 - 49 963 49 963
Disposals (519 218) (3 612) (522 830) (219 205) (638) (219 843)
Exchange rate differences - (5 248) (5 248) - 1 854 1 854
1 124 769 187 021 1 311 789 1 461 042 185 516 1 646 558

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 124
10. CUSTOMERS AND OTHER DEBTORS As of 31st December 2023, the current assets item
“Other – Africa” includes the amount of approximately
The information on customers and other debtors with 6,711 thousand Euro (nearly 6,711 thousand Euro as of
reference to 31st December 2023 and 2022 can be detailed 31st December 2022) arising from accounts receivable
as follows: from a MCA partner and related entity (company with
common shareholders to MCA) Inves2MSV Investimentos
2023 2022 Imobiliarios, S.A. (Note 36.).
Non current Current Non current Current
As of 31st December 2023 the current assets
CUSTOMERS
“advances to suppliers” was explained, essentially, by
Customers, Current Account the advances related to the Solar project in the amount
Gross amount of approximately 1,800 thousand Euro (nearly 6,967
Europe - 109 907 538 - 22 722 805
thousand Euro as of 31st December 2022) and the
Angola Rural Electrification project in the amount of
Africa - 20 564 103 - 27 705 941
approximately 4,975 thousand Euro (project initiated in
Other 25 149 22 577 2023).
- 130 496 790 - 50 451 323
Accumulated impairment losses - (12 388 621) - (21 663 603)
The relevant increase of 87,185 thousands Euro in the
“Customers, current account” in Europe is the result from
Net amount - 118 108 169 - 28 787 720
the start of the Angola Rural Electrification project in the
Customers, warranty retention - 2 908 127 - 4 932 212 last semester of 2023.
Total customers - 121 016 296 - 33 719 932
OTHER DEBTORS
The entries in impairment losses of customers and other
debtors with reference to the years ended on the 31st
Associates And Related Companies
December 2023 and 2022 can be analysed as follows:
Gross amount - 344 670 - 1 664 409
- 344 670 - 1 664 409 2023 2022
Accumulated impairment losses - - - - Customers and other debtors
Net amount - 344 670 - 1 664 409 Opening balance 23 914 817 18 628 710
Shareholders - - - - Variation in the consolidation perimeter - 300 345
Advances to suppliers - 11 880 818 - 12 340 556 Increase (Note 31.) 939 640 3 407 694
State and other public entities Reduction (Note 31.) (73 644) (3 108)
- 6 448 977 - 9 643 807
(except Corporate income tax)
Utilization (3 170 344) (553 290)
Other
Exchange rate differences (7 233 834) 2 117 585
Gross amount
Other - 16 882
Europe 311 211 3 207 747 273 886 3 166 770
14 376 635 23 914 817
Africa - 7 846 015 - 9 275 748
Other - - - -
311 211 11 053 762 273 886 12 442 518
In year ended on the 31st December 2023, the change
in “utilization” its related to write-offs of accumulated
Accumulated impairment losses - (1 988 014) - (2 251 214)
impairments on receivables with significant age, for which
Net amount 311 211 9 065 748 273 886 10 191 304 all efforts for recovery have been made.
Total other debtors 311 211 27 740 213 273 886 33 840 076
TOTAL CUSTOMERS AND OTHER DEBTORS 311 211 148 756 509 273 886 67 560 008
In year ended on the 31st December 2022, the change in
“variation in the consolidation perimeter” its related to
the completion of fair value allocation exercise related to
the companies acquisitions that took place in 2021.

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 125
When applicable, for accounts receivable whose expected 11. INVENTORIES
realization time exceeds the one-year period, MCA
discounts those balances to its present value, considering The inventories with reference to 31st December 2023
a period of one to two years to recover the debt. and 2022 can be analysed as follows:
Additionally, in accordance with IFRS 9, MCA calculates
expected impairment losses on its accounts receivable in 2023 2022
accordance with the criteria disclosed in Note 2.3.5. Gross amount
Raw and subsidiary materials and consumables 7 462 661 13 303 349
To determine the recoverability of trade accounts
receivable, MCA reviews all changes to the credit quality Products and work in progress 304 467 73 765
of its counterparties from the date of the credit to the Finished goods 207 503 -
date of reporting consolidated financial statements. Credit Merchandise 28 696 666 38 271 208
risk is not concentrated because of the significant number
36 671 297 51 648 322
of trade debtors. MCA therefore believes that credit risk
does not exceed recorded impairment losses for trade Inventories adjustments
accounts receivable doubtful accounts. Merchandise (1 264 844) -
Raw and subsidiary materials and consumables (498 944) (573 117)
MCA applies the simplified approach to calculate and
(1 763 788) (573 117)
record the estimated credit losses required by the IFRS 9,
which allows the use of estimated impairment losses for CARRYING AMOUNT 34 907 509 51 075 205
all customer balances. In order to measure the estimated
credit losses, the balances were aggregated based on the
shared credit risk characteristics, as well as on the days of As of 31st December 2023 and 2022, the balance of the
arrears. item “Raw and subsidiaries materials and consumables”
included essentially materials necessary for construction
The matrix to determine the impairment applied to non- projects, being those materials located in Angola (around
related companies and to non-government clients can be 1,839 thousand Euro in 2023 and 2,709 thousand Euro in
detailed as follows: 2022) and Portugal (around 4,304 thousand Euro in 2023
and 10,362 thousand Euro in 2022).
More than 720
At maturity less than 60 days 60 - 120 days 120 - 360 days 360 - 720 days
days As of 31st December 2023 and 2022, the item “Merchan-
Default proability 9.65% 10.05% 12.46% 18.53% 81.19% 89.99% dise” includes, essentially, plots of land in Spain to sell,
or to develop logistic real estate projects, in the amount
(net of adjustments) of 26,013 thousand Euro (35,446
MCA’s exposure to credit risk is mainly attributable to the
thousand Euro as of 31st December 2022). Additionally
accounts receivable from its operating activity.
includes, approximately, 2,283 thousand Euro related to a
plot of land in Gaia.
MCA’s Board of Directors believes that the value at which
these assets are recorded in the consolidated statement of
For the inventories related to real estate projects
financial position is similar to their fair value.
(located in Spain), at the year end, MCA determined
its net realizable value, considering as reference values
MCA does not charge any interest if the collection periods
the valuations carried out by independent experts. The
established with their customers are fulfilled (usually less
valuation has been made through the market approach,
than a year). After these deadlines, the interest is defined
analysing the evolution of the comparable prices of land
contractually, according to the law in force and applicable
of similar characteristics over the last two years.
to each situation.
In accordance with the three-tiered system detailed
on Note 2.3.5., these valuations (approximation
of a fair value analysis) were performed under the level 2 of

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 126
 the mentioned tiered system – valuations were set based As of 31st December 2023, the business segment “Urban
on data other than market prices of an active market for Development” included de amount of, approximately,
identical assets, but which can be observed. 2,500 thousand Euro resulting from the services rendered
not invoiced as of that date under the logistic real estate
The entries occurred in the inventories adjustments line in projects in Spain.
the year ended on 31st December 2023 and 2022 was as
follows: The entries in contract assets and liabilities, excluding the
component of advances received from customers, in 2023
2023 2022 and 2022 can be analysed as follows:
Opening balance 573 117 646 078
2023 2022
Variation in the consolidation perimeter - 469 621
Balance as at 1st January (34 945 409) 1 765 582
Increase (Note 31.) 1 324 844 59 070
Transfers to customers and other debtors (1 639 982) (28 484 596)
Reduction (Note 31.) - (623 917)
Increases resulting from meeting new performance obligations not yet invoiced 2 439 714 1 574 348
Utilization (122 224) -
Transfers to revenue item (performance obligations invoiced in previous years) 34 095 715 21 614 964
Exchange rate differences (11 949) 22 265
Decreases resulting from new invoicing of performance obligations not yet performed (20 217 676) (31 598 708)
1 763 788 573 117
Exchange rate differences 2 049 745 183 001
Balance as at 31st December (18 217 893) (34 945 409)
In year ended on the 31st December 2023, the change in
Contract assets 3 110 646 2 821 958
“Increase” its related to impairment recognized in the year
related to merchandise located in Spain. Contract liabilities - Deferred income (Note 21.) (21 328 539) (37 767 367)
(18 217 893) (34 945 409)
In year ended on the 31 December 2022, the change
st

in “variation in the consolidation perimeter” its related to

the completion of fair value allocation exercise related to As of 31st December 2023 and 31st December 2022, the
the companies acquisitions that took place in 2021. closing balances of the recognized contract assets can be
detailed as follows:

12. CONTRACT ASSETS Contract assets with 2023

Costs incurred during project execution phase
Information on contract assets by business segment “Solar Project in Angola” costs 285 781
with reference to 31st December 2023 and 2022 can be
Other projects (engineering and construction) 2 824 865
analysed as follows:
TOTAL CONTRACT ASSETS 3 110 646
2023 2022
Energies 285 781 - Contract assets with 2022
Urban Development 2 579 798 904 892 Costs incurred during project execution phase
Infrastructures 245 067 1 917 066 “Solar Project in Angola” costs 1 065 950
3 110 646 2 821 958 Other projects (engineering and construction) 1 756 007
TOTAL CONTRACT ASSETS 2 821 958

The contract assets are, essentially, related to production

and services rendered not yet invoiced, under
construction contracts (accrued income).

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 127
13. OTHER CURRENT ASSETS 14. DEFERRED TAXES

As of 31st December 2023 and 2022, the item “Other Deferred tax assets as of 31st December 2023 and 2022
assets” can be analysed as follows: may be described as follows, considering the different
natures of temporary differences:
2023 2022
Accrued income 2023
Effects in net
Interest receivable 8 161 6 244 Deferred tax assets Opening balance Reclassifications Effects in Equity Closing balance
income
Other accrued income 10 000 1 582 410 Tax losses and tax credits 1 654 812 306 1 178 591 (339) 2 833 371
18 161 1 588 654 Intragroup gains 968 682 - (310 209) - 658 473
Deferred costs Exchange rate differences not accepted for
1 224 810 - 880 192 4 187 2 109 189
tax purposes
Insurance 2 121 402 1 300 044
3 848 304 306 1 748 573 3 848 5 601 032
Other deferred costs (Construction) 312 026 128 447
Other deferred costs (Others) 213 487 379 537
2022
2 646 915 1 808 028
Effects in net
TOTAL OTHER ASSETS 2 665 076 3 396 682 Deferred tax assets Opening balance Reclassifications Effects in Equity Closing balance
income
Tax losses and tax credits 2 193 914 53 037 (1 112 545) 520 406 1 654 812
As of 31st December 2023 and 2022, the items “Fulfilling Intragroup gains - - 968 682 - 968 682
costs associated with contracts with customers” and Exchange rate differences not accepted for
1 332 224 (16 145) (107 861) 16 592 1 224 810
“Other deferred costs” included, essentially, deferred tax purposes
expenses associated with the production carried out in the 3 526 138 36 892 (251 723) 536 998 3 848 304
African region, namely the mobilization / demobilization
of equipment, base life construction sites and the
In the year ended on 31st December 2023 and 2022, the
procurement of various insurances for the projects. These
exchange rate differences not accepted for tax purposes
deferred costs have no impairment recognised.
are related with adjustments due to the “Solar Project”
and “Angola Rural Electrification project”.

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 128
As of 31st December 2023, and in accordance with the As of 31st December 2023, there are reportable tax losses
tax statements presented by the companies that recorded in the amount of 3,731,577 Euro, for which no deferred
deferred tax assets arising from tax losses carried forward tax assets were recorded, based on prudence.
and tax credits, and using exchange rates effective at that
time, tax losses carried forward can be summarized as Country
Tax losses carried Deferred tax
Time limit
follows: forward assets not recorded
Generated in 2019 Mozambique 472 388 151 164 2024
Tax losses/credits Deferred tax Generated in 2020 Mozambique 821 014 262 725 2025
Country Time limit
carried forward assets
Generated in 2019 Angola 975 889 243 972 2024
Tax losses carried forward
Generated in 2020 Angola 1 462 286 365 571 2025
Generated in 2018 Spain 693 726 173 432 Without limited time use
3 731 577 1 023 433
Generated in 2020 Spain 17 371 4 343 Without limited time use
Generated in 2022 Spain 123 756 30 939 Without limited time use
Generated in 2020 Portugal 39 660 8 329 Without limited time use
Deferred tax liabilities as of 31st December 2023 and 2022
may be described as follows, considering the different
Generated in 2021 Portugal 125 525 26 360 Without limited time use
natures of temporary differences:
Generated in 2022 Portugal 642 668 134 960 Without limited time use
Generated in 2023 Portugal 7 003 212 1 470 675 Without limited time use 2023
8 645 919 1 849 037 Opening Effects Effects in Closing
Deferred tax liabilities Reclassifications
balance in net income Equity balance
Other tax credits forward
Temporary differences on inventories 87 912 - (26 593) - 61 319
SIFIDE 2020 Portugal 208 190 208 190 2029
Exchange rate differences not accepted for tax
- - 64 301 - 64 301
SIFIDE 2021 Portugal 275 602 275 602 2029 purposes
Allocation of fair value to assets and liabilities
SIFIDE 2022 Portugal 136 876 136 876 2034 413 838 - - - 413 838
acquired (Note 37.)
RFAI 2020 Portugal 35 499 35 499 2031 501 750 - 37 707 - 539 457
RFAI 2021 Portugal 328 166 328 166 2031
984 334 984 334 2022
TAX LOSSES AND TAX CREDITS 2 833 371 Opening Effects Effects in Closing
Deferred tax liabilities Reclassifications
balance in net income Equity balance
Temporary differences on inventories 87 912 - - - 87 912
As of 31st December 2023, the deferred taxes to
Allocation of fair value to assets and liabilities
be recognized arising from tax losses were evaluated. In acquired (Note 37.)
- - - 413 838 413 838
the cases in which they originated deferred tax assets, they 87 912 - - 413 838 501 750
were only recorded to the extent that it is probable that
future taxable income will occur that could be used to
recover the tax losses or tax differences that reverted in As of 31st December 2023 and 2022, the tax rates used
the same period and considering the limit of compensation for the calculation of the deferred tax assets and liabilities
existing by law in the applicable cases. This assessment was were the ones applicable in each company respective
based on the business plans of MCA’s companies, which jurisdiction, as mentioned in Note 34.
are periodically reviewed and updated.

The recoverability of the above mentioned deferred tax

assets is supported by the execution of the projects that
already have been awarded to MCA as of this date.

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 129
15. CORPORATE INCOME TAX At 31st December 2023 there were approximately 4,681 17. SHARE CAPITAL AND RESERVES
thousand Euro in “Other treasury instruments” referring
The detail of the assets item “Corporate income tax” by to collateral regarding letters of credit related with Solar
geographical area, with reference to 31st December 2023 project in Angola and Angola Rural Electrification project SHARE CAPITAL
and 2022, was as follows: (1,254 thousand Euro as of 31st December 2022).
The share capital of M. Couto Alves Holding B.V. as at 31st
2023 2022 As of 31st December 2023 and 2022, in order to prepare December 2023 and 2022, fully subscribed and paid up,
Europe 112 657 2 207 799
the consolidated statement of cash flows, the balance amounted to 10,000,000 Euro, and was represented by
of “Cash and cash equivalents” presented the following 10,000,000 shares (all authorised) with a nominal value of
Africa 117 347 848 237
breakdown: 1 Euro each.
230 004 3 056 036
2023 2022
SHARE PREMIUMS
In 2022, the amount of Euro 2,207,799 in Europe, mainly Bank deposits and cash in hand 25 415 564 26 137 165
relates to corporate income tax paid in advance, that was Other treasury applications 6 080 183 2 711 058
The share capital of M. Couto Alves Holding B.V. as at
reimbursed during 2023, since the final CIT computed for Other financial investments (Note 9.) 1 114 792 1 460 182 31st December 2023 and 2022, fully subscribed and paid
2022 was a lot lower then in previous years (bases for the
32 610 539 30 308 405 up, amounted to 10,000,000 Euro plus 19,412 (nineteen
advanced payment calculation).
thousand, four hundred and twelve Euro) in 2023 and
9,246,267 Euro (nine million, two hundred and forty six
As of 31st December 2023 and 2022, there were 1,115 thousand, two hundred and sixty seven Euro) in 2022, of
16. CASH AND CASH EQUIVALENTS thousand Euro and 1,460 thousand Euro, respectively, share premium.
recorded under the caption of “Other financial
The information relating to the item of “Cash and cash investments” refers to a captive bank deposit towards During the year 2023, the main Shareholder performed
equivalents” with reference to 31st December 2023 and amounts received from customers through financial the following movements in the “Share capital” and “Share
2022 can be analysed as follows: institutions. This amount will be made available in equal premiums”:
and successive instalments, in accordance with the
2023 2022 repayment from the customers to the respective financial · The nominal value of each class A share in the
Bank deposits and cash in hand institutions. capital of the Company was increased from EUR
Bank deposits 25 348 096 26 074 539 1 to EUR 1.9261586, resulting in the total issued
As of 31st December 2023 and 2022, the amounts included and outstanding share capital of the Company being
Cash in hand 67 468 62 626
in the item “Cash and cash equivalents” had the following increased by EUR 9,226,855.05 (“Capital Increase
25 415 564 26 137 165 breakdown by business vertical: Amount”), which amount was charged to the share
Other treasury instruments 6 080 183 2 711 058 premium reserve.
31 495 747 28 848 223 2023 2022
Energies 12 870 932 18 708 814 · Subsequently, the nominal value of the class A shares
The item “Cash and cash equivalents” include cash held by Urban Development 13 441 401 5 792 820
in the capital of the Company was reduced from
MCA and short term bank deposits with original maturity EUR 1.9261586 to EUR 1, resulting in a reduction of
Infrastructures 4 468 284 3 374 658
equal to or less than three months, for which the risk the issued capital of the Company in the aggregate
of alteration of value is insignificant. The value at which Health Care 3 769 5 154 amount of EUR 9,226,855.05 (“Capital Reduction
this MCA of assets is recorded is close to its fair value. Others 711 360 966 776 Amount”), and the repayment of the Capital
31 495 747 28 848 223
Reduction Amount to the sole holder of the class
A shares of the Company. By the end of the year
2023, from the reduced amount, MCA had already
reimbursed its shareholder with 6,500,000, with the
remaining balance still outstanding in the “Suppliers
and sundry creditors” category.

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 130
CURRENCY TRANSLATION RESERVE In the year ended 31st December 2022, the exchange
rate impact arising from the companies included in MCA
The “Currency translation reserve” reflects the exchange consolidation ((13,465) thousand Euro) can be detailed as
variation arising from the translation of financial follows:
statements of subsidiaries with currencies other than the
Euro.
Angola Kwanza (AOA)
The impact arising from the exchange rate differences, Exchange rate in the beginning (31st December 2021) 629.02
included in the consolidated statement of comprehensive
Exchange rate in the end (31st December 2022) 537.44
income, results, essentially, from MCA’s Angolan
companies. The impact was determined based in the Average exchange rate for 2022 486.39
exchange rates fluctuations between the beginning of the
year (1st January) and the end of the year (31st December). Exchange rate impact (in Euros)
Attributable
In the year ended 31st December 2023, the exchange Equity at the Net profit for
to the
Attributable to
Subsidiary Currency beginning in the year in non controlling Total
rate impact arising from the companies included in MCA local currency local currency
Shareholders of
interests
consolidation (3,492 thousand Euro) can be detailed as the Group
follows: Angola Kwanza
M. Couto Alves Vias, S.A. 45 801 670 679 5 277 589 217 11 933 501 1 086 059 13 019 560
(AOA)
M. Couto Alves - Máquinas e Angola Kwanza
Angola Kwanza (AOA) (350 795 409) 413 318 456 227 069 109 313 336 382
Equipamento de Aluguer, S.A. (AOA)
Exchange rate in the beginning (31st December 2022) 537.44 Other 40 912 68 159 109 071
Exchange rate in the end (31 December 2023)
st
915.99 12 201 481 1 263 532 13 465 013
Average exchange rate for 2023 748.55

Exchange rate impact (in Euros) CAPITAL MANAGEMENT POLICY

Attributable
Equity at the Net profit for Attributable to
Subsidiary Currency beginning in local the year in local
to the
non controlling Total
The capital structure of MCA, determined by the
Shareholders proportion between equity and net debt, is managed to
currency currency interests
of the Group
ensure the continuity and the carrying on of its operational
M. Couto Alves Vias,
S.A.
Angola Kwanza (AOA) 4 085 174 689 (6 297 397) 2 784 739 253 437 3 038 176 activities, to maximise the return for shareholders and to
M. Couto Alves optimise finance costs.
- Máquinas e
Angola Kwanza (AOA) 50 207 649 245 790 599 77 250 37 189 114 439
Equipamento de MCA periodically monitors its capital structure and
Aluguer, S.A.
identifies risks, opportunities and the necessary
Other 336 219 3 345 339 565
adjustment measures in order to achieve the goals
3 198 208 293 971 3 492 179 referred to above. As of 31st December 2023, MCA has an
accounting Gearing (*) of -4,36% (-5% as of 31st December
2022).
(*) Gearing = net debt / total equity, where net debt corresponds to the algebraic
sum of the following items of the consolidated statement of financial position:
loans; cash and cash equivalents; and other financial investments recorded at
amortized cost.

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 131
 2022
18. NON-CONTROLLING INTERESTS
Percentage of Net profit
Accumulated
detention held by attributable to
As of 31 December 2023 and 2022, subsidiaries
st
non controlling non controlling
non controlling Major shareholders
interests
controlled by MCA with significant non‐controlling interests interests
interests were as follows: Maria da Conceição Couto Alves
M. Couto Alves Vias, S.A. 8.34% 905 126 634 073
Silva Torres (8.33%)
2023 M. Couto Alves - Máquinas e Manuel António Couto Alves
32.50% 276 148 30 359
Equipamento de Aluguer, S.A. (28.18%)
Percentage of Net profit
Accumulated
detention held by attributable to non Inves2MSV Investimentos
non controlling Major shareholders Business Center Manzanares, S.L. 23.16% 276 021 5 386 517
non controlling controlling Imobiliarios, S.A. (23.16%)
interests
interests interests
Manuel António Couto Alves
Maria da Conceição Couto Alves Silva MCA Moçambique, SA 26.27% 11 684 (411 726)
M. Couto Alves Vias, S.A. 8.34% (702) 378 267 (26.25%)
Torres (8.33%)
Paulo Luís Mateus Aparício
M. Couto Alves - Máquinas e (27.00%)
32.50% 106 704 99 874 Manuel António Couto Alves (28.18%) M. Couto Alves - PSS, S.A. 32.40% (14 560) (80 162)
Equipamento de Aluguer, S.A. Manuel António Couto Alves
(4.80%)
Inves2MSV Investimentos Imobiliarios,
Business Center Manzanares, S.L. 23.16% (258 899) 5 127 618 José Augusto Almeida Marques
S.A. (23.16%)
(24.50%)
Mainbio, S.A. 49.02% 152 200 738 535
MCA Moçambique, SA 26.27% (23 934) (414 516) Manuel António Couto Alves (26.25%) Carlos Manuel Sampaio Ferreira
(24.50%)
Paulo Luís Mateus Aparício (27.00%) João Fernandes de Matos
M. Couto Alves - PSS, S.A. 32.40% (1 384) (73 530) (23.33%)
Manuel António Couto Alves (4.80%) Lexivarius, S.A. 30.00% (343 129) 249 126
Manuel António Couto Alves
José Augusto Almeida Marques (6.67%)
(24.50%)
Mainbio, S.A. 49.02% (1 748 024) (1 016 651)
Carlos Manuel Sampaio Ferreira Sahara - Areias Britas e Betões, S.A. 25.00% (22 661) (465 956) José Rodrigues (25.00%)
(24.50%)
João Fernandes de Matos (23.33%)
Lexivarius, S.A. 30.00% (44 824) 204 302 Others (91 239) (309 975)
Manuel António Couto Alves (6.67%)

Sahara - Areias Britas e Betões, S.A. 25.00% (10 921) (476 877) José Rodrigues (25.00%) 1 149 592 5 770 791

Others (73 369) (390 907)

(2 055 354) 3 437 579

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 132
 2022
As of 31st December 2023 and 2022 the summary of
statutory financial information (contributions) from major M. Couto
Alves - Business Sahara -
subsidiaries controlled by MCA with non‐controlling M. Couto
Máquinas e Center
MCA M. Couto
Lexivarius, Areias Britas
Alves Vias, Moçambique, Alves - PSS, Mainbio, S.A.
interests was as follows: S.A.
Equipamento Manzanares,
SA S.A.
S.A. e Betões,
de Aluguer, S.L. S.A.
S.A.
2023
Financial Position
M. Couto
Alves - Business Sahara - Current assets 38 706 119 2 451 623 44 625 384 494 759 931 061 901 312 4 409 194 8 683
M. Couto MCA M. Couto
Máquinas e Center Lexivarius, Areias Britas
Alves Vias, Moçambique, Alves - PSS, Mainbio, S.A. Non‐current assets 4 642 719 85 505 743 942 400 294 24 702 8 407 667 1 679 113 91 934
Equipamento Manzanares, S.A. e Betões,
S.A. SA S.A.
de Aluguer, S.L. S.A. Current liabilities 32 486 375 1 268 675 17 742 196 2 447 589 1 041 458 4 725 117 5 257 180 1 493 804
S.A.
Non‐current liabilities 3 753 530 1 175 033 4 374 039 14 826 132 940 3 091 871 - -
Financial Position
Equity attributable to
Current assets 51 625 025 3 398 957 62 000 658 796 990 1 013 277 1 649 374 4 450 783 14 245 6 515 924 63 062 17 866 574 (1 155 637) (139 926) 753 455 581 789 (927 231)
shareholders
Non‐current assets 6 712 392 - 973 458 396 847 7 571 9 178 088 1 657 558 98 042 Non‐controlling
593 009 30 359 5 386 517 (411 726) (78 709) 738 535 249 338 (465 956)
interests
Current liabilities 43 869 520 1 541 774 11 574 661 3 340 761 1 069 000 2 900 527 542 157 1 542 392
7 108 934 93 420 23 253 091 (1 567 362) (218 635) 1 491 991 831 128 (1 393 187)
Non‐current liabilities 9 889 695 1 527 231 28 941 066 14 312 178 793 10 000 885 4 885 176 -
Income Statement
Equity attributable to
4 198 039 222 728 17 255 963 (1 593 508) (153 415) (1 057 300) 476 705 (1 072 579) Income 55 410 663 1 167 883 42 321 266 97 799 1 441 710 997 521 104 607 4 192
shareholders
Non‐controlling Expenses 45 104 038 318 113 41 129 710 53 319 1 478 115 690 046 1 247 664 94 835
382 060 107 224 5 202 426 (567 729) (73 530) (1 016 651) 204 302 (357 526)
interests
Net income /
4 580 100 329 952 22 458 389 (2 161 237) (226 945) (2 073 951) 681 007 (1 430 106) 10 306 624 849 770 1 191 556 44 480 (36 405) 307 475 (1 143 057) (90 642)
(expense)
Income Statement attributable to:
Income 37 716 648 741 103 62 431 285 164 195 927 491 5 461 171 289 427 131 742 the shareholders 9 446 871 573 622 915 535 32 796 (23 299) 155 275 (800 140) (67 982)
Expenses 37 725 061 412 749 63 681 899 48 880 931 764 9 027 112 438 841 175 426 the non‐controlling
859 753 276 148 276 021 11 684 (13 106) 152 200 (342 917) (22 661)
interests
Net income /
(8 413) 328 354 (1 250 614) 115 315 (4 272) (3 565 941) (149 414) (43 684)
(expense)
attributable to: The entries occurred in the item of non‐controlling
the shareholders (7 711) 221 649 (960 913) 85 024 (2 888) (1 817 917) (104 590) (32 763) interests for the years ended on 31st December 2023 and
the non‐controlling 2022 can be presented as follows:
(702) 106 704 (289 701) 30 292 (1 384) (1 748 024) (44 824) (10 921)
interests
2023 2022
Opening balance 5 770 791 20 016 924
Net profit attributable to non controlling interests (2 055 354) 1 149 592
Items of other comprehensive income that may be reclassified to the income statement
Exchange differences arising from the conversion of financial statements expressed in foreign currencies (293 971) (1 263 532)
Other comprehensive income (190) (25 604)
Variation in the consolidation perimeter and others 16 304 (14 106 589)
3 437 579 5 770 791

In 2022, as part of the MCA Restructuring Operation,

MCA Infrastructure has acquired an 18.33% equity stake
previously held by Mr. Manuel Couto Alves, for a total
amount of €18,097,628. This acquisition has resulted in
MCA Infrastructure obtaining a controlling interest in
MCA VIAS.

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 133
In addition, MCA Vias trough amortizing/extinguishing 19. LOANS AND LEASE LIABILITIES
80.00% of the shares held by MCA S.A., which were
valued at €62,799,795. The total amount resulting from The amounts related to loans as of 31st December 2023
this equity amortization, once MCA Vias had an amount and 2022 were as follows:
receivable from MCA S.A. (related to loans granted in
previous years), was used to offset MCA Vias’ outstanding 2023
credit to MCA S.A.. Current Non current
Less than 1 Between 1 and Between 3 and More than 5 Total non Total
This transaction allows MCA to reinforce their stake in year 3 years 5 years years current
MCA Vias. As of 31st December 2023 and 2022 MCA held Main Loans and lease liaibiliteis
91.66% in MCA Vias.
Bank loans 4 345 081 5 663 192 2 100 367 2 867 698 10 631 256 14 976 337
Overdraft facilities 2 929 084 - - - - 2 929 084
Lease liaibilites 1 178 136 1 414 171 565 356 2 195 414 4 174 941 5 353 076
Factoring 1 645 564 - - - - 1 645 564
Confirming 10 321 390 - - - - 10 321 390
Other loans obtained
Others 32 981 - - - - 32 981
20 452 236 7 077 362 2 665 723 5 063 111 14 806 197 35 258 433

2022
Current Non current
Less than 1 Between 1 and Between 3 and More than 5 Total non Total
year 3 years 5 years years current
Main Loans and lease liaibiliteis
Bank loans 7 085 409 5 114 100 4 387 669 1 206 238 10 708 006 17 793 415
Overdraft facilities 2 965 622 - - - - 2 965 622
Lease liaibilites 967 883 1 585 478 284 757 - 1 870 234 2 838 118
Factoring 603 814 - - - - 603 814
Confirming 4 390 377 - - - - 4 390 377
Other loans obtained
Others 14 238 - - - - 14 238
16 027 344 6 699 577 4 672 426 1 206 238 12 578 240 28 605 584

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 134
As of 31st December 2023 and 2022, the entries related to As of 31st December 2023, the main bank loans of MCA in
loans were as follows: force on this date, were as follows:

Overdraft Lease Shareholder Others Date of Other

2023 Bank loans Factoring Confirming Total Entity Credit institution Interest rate Amount in debt
facilities liabilities loans loans maturity conditions
Opening balance 17 793 415 2 965 622 2 838 118 603 814 4 390 377 - 14 238 28 605 584 Business Center Manzanares, S.L. Banco Sabadell, S.A. 30/04/2036 2.050% (i) 3 463 476
Transactions with impact on cash flow M. Couto Alves, SA Caixa Geral Depósitos SA 24/03/2026 7.480% 3 011 746
Loans obtained 6 762 150 2 929 084 - - - - 68 656 9 759 890 Edimade II - Promoção Imobiliária, S.A. Banco BIC Português, S.A. 15/11/2030 5.784% 1 855 708
Repayments of loans (9 163 181) (2 965 622) (1 738 387) - (15 033 849) - (98) (28 901 136) Mainbio, S.A. Novo Banco 30/05/2028 5.465% 1 350 000
(2 401 031) (36 538) (1 738 387) - (15 033 849) - 68 558 (19 141 246) M. Couto Alves, SA Caixa Geral Depósitos SA 02/12/2025 5.772% 999 999
Transactions with no impact on cash flow M. Couto Alves, SA Caixa Geral Depósitos SA 08/05/2028 5.515% 929 825
Loans obtained - - 4 349 334 1 041 456 20 964 862 - - 26 355 652 Mainbio, S.A. Caixa Geral Depósitos SA 23/06/2025 5.162% 750 000
Others (416 048) - (95 988) 293 - - (49 815) (561 557) M. Couto Alves, SA Caixa Geral Depósitos SA 20/07/2027 5.507% 478 733
(416 048) - 4 253 346 1 041 750 20 964 862 - (49 815) 25 794 095 12 839 488
CLOSING BALANCE 14 976 337 2 929 084 5 353 076 1 645 564 10 321 390 - 32 981 35 258 434
This bank loan, obtained in Spain, has a single maturity date of April 2036, but
(i)

MCA must perform an earlier repayment in case of sale / transfer of the asset
that guarantee it. The value of the asset provided as collateral is approximately
Overdraft Lease Shareholder Others 8,577 thousand Euro.
2022 Bank loans Factoring Confirming Total
facilities liabilities loans loans
Opening balance 23 742 494 3 453 556 3 255 202 722 190 3 505 361 255 520 25 450 34 959 773
As of 31st December 2023 and 2022, the debt amounts
Transactions with impact on cash flow are denominated in the following currencies:
Loans obtained 8 720 713 8 702 416 - - 14 785 - 12 631 17 450 545
Repayments of loans (15 768 234) (8 464 255) (995 190) (118 376) (12 319 386) - (23 843) (37 689 285)
(7 047 522) 238 161 (995 190) (118 376) (12 304 601) - (11 212) (20 238 740) 2023 2022
Amounts due to Other loans Amounts due to Other loans
Transactions with no impact on cash flow credit institutions obtained credit institutions obtained
Loans obtained - - 578 106 - 13 189 617 - 13 767 723 Euro (EUR) 35 214 626 32 981 25 206 885 14 238
Exchange differences 1 098 443 358 773 - - - - - 1 457 216 Angola Kwanzas (AOA) - - 3 369 636 -
Others - (1 084 868) - - - (255 520) - (1 340 388) Mozambique Metical (MZN) 10 826 - 14 826 -
1 098 443 (726 095) 578 106 - 13 189 617 (255 520) - 13 884 551 35 225 452 32 981 28 591 346 14 238
CLOSING BALANCE 17 793 415 2 965 622 2 838 118 603 814 4 390 377 - 14 238 28 605 584

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 135
20. SUPPLIERS AND SUNDRY CREDITORS 21. CONTRACT LIABILITIES

The information regarding suppliers and sundry creditors The information on contract liabilities by business segment
with reference to 31st December 2023 and 2022 can be with reference to 31st December 2023 and 2022 can be
analysed as follows: analysed as follows:

2023 2022 2023 2022

Non current Current Non current Current Advances received from customers
Suppliers Energies 27 709 508 9 798 536
Europe - 38 639 994 - 22 459 134 Infrastructures 17 973 470 12 644 847
Africa - 6 269 549 - 6 430 640 Others 22 053 -
Other - 1 974 - 1 771 45 705 031 22 443 383
- 44 911 517 - 28 891 545 Deferred income
Sundry creditors Energies 13 459 133 32 690 107
Suppliers of fixed assets - 1 931 931 - 1 423 748 Urban Development 289 047 -
Associates and shareholders 194 256 973 506 3 122 616 2 134 061 Infrastructures 7 284 055 4 852 357
State and other public entities (except Corporate income tax) - 5 618 357 - 3 059 462 Others 296 304 224 903
Other creditors - 1 980 735 - 3 639 457 21 328 539 37 767 367
194 256 10 504 529 3 122 616 10 256 728 TOTAL CONTRACT LIABILITIES 67 033 570 60 210 750
TOTAL SUPPLIERS AND SUNDRY CREDITORS 194 256 55 416 046 3 122 616 39 148 273
The entries in “advances received from customers”
As of 31 December 2023, the non-current liabilities under
st in 2023 and 2022 can be analysed as follows:
the caption “Associates and shareholders” includes the
amounts payable to the related parties company (company 2023 2022
with common shareholders to MCA) Elan – Electricidade BALANCE AS AT 1ST JANUARY 22 443 383 37 786 332
e Montagens de Angola, S.A. (about 194 thousand Euro) Revenue recognized in the year associated with liabilities recorded in previous years (11 449 049) (28 686 735)
(Note 36.).
Advances received in the year, net of revenue recognized in this same year 37 618 369 11 797 500
As of 31st December 2022, the non-current liabilities Exchange rate differences and others (2 907 672) 1 546 286
under the caption “Associates and shareholders” includes BALANCE AS AT 31ST DECEMBER 45 705 031 22 443 383
the amounts payable to the related parties companies
(companies with common shareholders to MCA) Elan
– Electricidade e Montagens de Angola, S.A. (about 564 The item “deferred income” is, essentially, related to
thousand Euro) and Sines – Sinalização de Estradas, S.A. production and services invoiced but not yet rendered,
(nearly 2,559 thousand Euro) (Note 36.). under construction contracts. MCA expects to recognize
the revenue related to these amounts within a 12-month
As of 31st December 2023 and 2022, the current liabilities period.
under the caption “Associates and shareholders” refers,
essentially, to amounts payable to the shareholder Mr.
Manuel Couto Alves.

MCA’s Board of Directors believes that the value at which

the abovementioned financial liabilities are recorded in the
consolidated statement of financial position is similar to
their fair value.

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 136
22. OTHER CURRENT LIABILITIES 24. PROVISIONS

The information on other current liabilities with respect The information regarding provisions, as of 31st December
to 31st December 2023 and 2022 can be summarised as 2023 and 2022 can be summarised as follows:
follows:
2023 2022
2023 2022 Provisions for investments accounted by using the equity method
Accrued costs Development Concept Engenharia, Lda. (“DCE”) 103 249 175 973
Holiday pay and holiday bonus 4 735 488 2 253 110 103 249 175 973
Interest payable 359 115 886 Other provisions
Work in progress not billed by suppliers 50 706 977 40 023 167 Provisions for construction warranties 3 946 129 3 222 975
Other accrued costs 266 367 389 030 Provisions for onerous contracts 3 121 3 121
55 709 191 42 781 193 3 949 250 3 226 096
TOTAL OTHER CURRENT LIABILITIES 55 709 191 42 781 193 TOTAL PROVISIONS 4 052 499 3 402 069

As of 31st December 2023 and 2022, the item “Work As of 31st December 2023 and 2022, the provisions for
in progress not billed by suppliers” had the following construction warranties relate to construction contracts
breakdown by business segment: 46,308 thousand Euro in carried out by MCA and refer essentially to M. Couto
Energies segment in 2023 (nearly 31,710 thousand Euro in Alves, S.A., M. Couto Alves Vias, S.A..
2022), 7,127 thousand Euro in Infrastructures segment in
2023 (nearly 7,957 thousand Euro in 2022), 278 thousand
Euro in Urban Development segment in 2023 (nearly 278
thousand Euro in 2022) and 407 thousand Euro in Others
in 2023 (nearly 78 thousand Euro in 2022). Regarding the
amount in Energies segment, it includes, essentially, the
services rendered by related to the Solar Project in Angola
and Angola Rural Electrification Project (see Note 25.).

As of 31st December 2023, the item “Holiday pay, holiday

bonus and compensation” includes the amount of 2,875
thousand Euros of compensations related to indemnities
reported in 2023 and paid in 2024.

23. CORPORATE INCOME TAX

The detail of the liabilities item “Corporate income tax” by

geographical area, with reference to 31st December 2023
and 2022, was as follows:

2023 2022
Europe 6 618 377 1 199 894
Africa 1 086 684 854 654
7 705 061 2 054 548

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 137
The information regarding the entries occurred in 25. SALES AND SERVICES RENDERED
provisions in the years ended on 31st December 2023 and
2022 was as follows: The breakdown of the sales and services rendered during
the years ended on 31st December 2023 and 2022 was as
2023 2022 follows:
Total Total
2023 2022
Provisions for investments accounted for using the equity method
Sales
Opening balance 175 973 131 230
Real estate 63 025 562 49 725 960
Equity method impact of the year - Variation in the consolidation perimeter - 20 384
Inert materials 365 282 2 706 464
Equity method impact of the year - OCI (72 725) 24 359
Others 4 213 142 522 423
103 249 175 973
67 603 986 52 954 847
Other provisions
Services rendered
Opening balance 3 226 096 5 940 629
Construction contracts 63 944 198 174 293 257
Increase in provisions for construction warranties (Note 31.) 2 750 049 42 800
Development & Engineering, Procurement and Construction (D&EPC) 80 433 078 -
Reduction in provisions for construction warranties (Note 31.) (173 187) (20 313)
Equipment rentals 3 275 60 531
Utilization provision for construction warranties (10 236) (23 375)
Others 968 773 1 007 479
Increase in provisions for onerous contracts (Note 31.) - 3 121
145 349 324 175 361 267
Reduction in provisions for onerous contracts (Note 31.) - (501 403)
TOTAL SALES AND SERVICES RENDERED 212 953 310 228 316 114
Utilization provision for onerous contracts - (2 481 075)
Exchange rate differences and others (1 843 472) 265 712
3 949 250 3 226 096
The sales and services rendered in the years ended 31st
December 2023 and 2022, is highly influenced by the
TOTAL PROVISIONS 4 052 499 3 402 069
projects, denominated “Solar Project Angola” and “Angola
Rural Electrification Project”.
As of 31st December 2023 and 2022, the line “Equity
method impact of the year - other comprehensive Related to the “Solar Project Angola”, on the 20th of July
income” includes, essentially, the impact of exchange rate 2022, we hosted the opening ceremony of two solar
differences. photovoltaic parks in Benguela (Biópio) and Baía Farta,
with an installed capacity of 286 megawatts (MWp), which
As of 31st December 2023, the date on which provisions will produce “green” electricity to supply around 1.8
will be used cannot be reliably estimated, reason why they million people. The goal of the Government of Angola,
were not financially discounted. defined in the “Energia Angola 2025” plan, is to fulfil the
goal that the country has about 60% of its rural population
Likewise, given the uncertainty as to when the with access to electricity in a three years horizon.
aforementioned provisions will be converted into
liabilities, it was not possible to disclose the expected These two projects are part of the National Development
moments for the occurrence of their respective future Plan 2018-2022, with regard to the objectives of
outflows of resources reason why they were classified as diversifying energy generation sources. With an estimated
non-current. total installed power of 189 megawatts (MWp), enough
to supply more than one million consumers, the solar
photovoltaic plant of Biópio, located in the municipality
of Catumbela, is the largest solar energy project in Sub-
Saharan Africa. The second solar plant, at Baía Farta, with
96 MWp, will inject energy into the national power grid to
benefit more than half a million consumers.

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 138
The two parks are part of a set of seven, with a total The project’s engineering, procurement and construction 26. COST OF GOODS SOLD AND
capacity of 370 MWp in the provinces of Benguela, initiated in July 2023. MATERIALS CONSUMED, CHANGES IN
Huambo, Bié, Lunda-Norte (in Lucapa), Lunda-Sul PRODUCTION AND SUBCONTRACTORS
(in Saurimo) and Moxico (in Luena), which should be In the year ended on the 31st December 2023 there
operational by the end of the next year. were three customers who represented more than 10% The cost of goods sold and materials consumed, changes
of the item “Sales and services rendered” (three in the in production and subcontractors, for the years ended on
Altogether, the seven solar parks which were co- year ended on the 31st December 2022). 31st December 2023 and 2022, can be analysed as follows:
developed by MCA within an international consortium,
having MCA assumed the engineering and execution In the years ended on 31st December 2023 and 2022, 2023
activities, will provide renewable and clean electricity to there was no significant discontinuation in the business Raw and
around 2.4 million people, also allowing for an annual activities carried out by MCA. Merchandise
Subsidiary
Total
reduction in pollutant emissions of around of one million materials and
consumables
tons of CO2 (carbon dioxide).
Inventories opening balance (Note 11.) 38 271 208 13 303 349 51 574 558
The solar parks also make it possible to eliminate the need Purchases 12 709 402 28 441 821 41 151 222
to consume around 215 million liters of diesel per year in Exchange differences and other movements - 2 563 311 2 563 311
generators and thermal production, with highly polluting Transfers and others (92 360) (186 346) (278 706)
effects and which will allow for very significant savings on
Inventories closing balance (Note 11.) (28 696 666) (7 462 661) (36 159 327)
imports of fossils fuels.
COST OF GOODS SOLD AND MATERIALS CONSUMED 22 191 584 36 659 474 58 851 057
In addition to the “Solar Project Angola”, a substantial Subcontractors 38 300 610
portion of this year’s sales is attributed to the 97 151 667
“Angola Rural Electrification Project”. This involves
the Development & Engineering, Procurement and
Construction (D&EPC) of a contract aimed at sustainable 2022
electrification across 60 communes in Angola, situated Raw and
within the provinces of Moxico, Lunda Norte, Lunda Sul, Subsidiary
Merchandise Total
materials and
Bié, and Malanje. This rural electrification initiative aligns consumables
with Angola’s strategic planning and long-term vision for Inventories opening balance (Note 11.) 29 407 737 19 917 572 49 325 309
the electricity sector, as outlined in the “Energia Angola
2025” plan. Purchases 21 296 807 78 830 305 100 127 112
Exchange differences and other movements - (532 687) (532 687)
The developed solution includes 1) Photovoltaic Transfers and others 484 732 50 000 534 732
generation systems with lithium-ion battery storage Inventories closing balance (Note 11.) (38 271 208) (13 303 349) (51 574 558)
(isolated systems) which operate autonomously without
recourse to any diesel generation; 2) Expansion of the COST OF GOODS SOLD AND MATERIALS CONSUMED 12 918 068 84 961 841 97 879 909
national electricity grid; and 3) Electrification of communes Subcontractors 54 717 341
through the construction of medium/low voltage 152 597 250
distribution networks, and the supply and installation of
pre-paid meters in homes.
In years ended on the 31st December 2023 and 2022, the
The Project will contribute with an addition of item “Subcontractors” is highly influenced by the “Solar
approximately 482 GWh per year of energy from 100% Project Angola”.
renewable sources to the Angolan electrical system,
through the increase of 296 MWp of PV capacity,
719 MWh of energy storage capacity, as well as the
electrification of a total of more than 200 thousand
homes, providing access to electricity to around 1 million
Angolans.

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 139
 2023 2022
27. THIRD-PARTY SUPPLIES AND SERVICES 28. WAGES AND SALARIES
Europe 311 268
Third party supplies and services for the years ended on The breakdown of wages and salaries item for the years Africa 954 788
31st December 2023 and 2022 can be analysed as follows: ended on 31st December 2023 and 2022 was as follows: América - -
1265 1056
2023 2022 2023 2022
Specialised works and recharging 15 378 516 10 003 467 Payroll 17 938 535 15 235 838
Transport, travel and lodging 3 309 499 2 684 695 Social security charges 1 939 980 1 671 473
For the year ended 31st December 2023, the number of
employees by business vertical can be analysed as follows:
Commissions and recurrent fees (legal, audit, advisory) 2 568 502 789 493 Others 2 267 185 1 247 140
Insurance 2 370 238 2 856 700 22 145 700 18 154 451 2023 2022
Leases and rents 2 052 576 2 186 906 Energies 34
40
Maintenance and repair 1 485 193 515 837 As of 31 December 2023, the item “Others” included,
st
Urban Development 16 15
Other supplies and services 882 755 764 054 essentially, the amounts of approximately 129 thousand Infrastructures 888
1 063
Advertising and publicity 723 313 609 410
Euro (157 thousand Euro as of 31st December 2022)
Others 146 119
related to occupational accident insurances, and about
Transport of goods 605 816 10 857 409
1,200 thousand Euro related to other insurance (437 1 265 1 056
Surveillance and security 577 770 373 704 thousand Euro as of 31st December 2022). The additional
Utensils, other materials and office equipment 396 948 241 956 amounts in this item include the expenditures incurred
The numbers related to MCA Corporate services and
in relation to meal allowances and cash sickness benefits,
Water and electricity 395 645 306 277 other instrumental companies are included in the caption
among others.
Communications 289 054 377 072 of “Others”.
Fuel 152 195 1 039 991 As of 31st December 2023, the item “Payroll” included
Cleaning 118 299 172 286 the amounts of approximately 3,033 thousand Euro
29. OTHER OPERATING INCOME /
related to compensations for contractual termination with
31 306 317 33 779 257 (EXPENSES)
former employees occurred in 2023.
Other operating income / (expenses) for the years ended
In the years ended on the 31st December 2023 and 2022 In the years ended on the 31st December 2023 the on 31st December 2023 and 2022, can be analysed as
the item “Specialised works and recharging” included item “Specialised works and recharging” included the NUMBER OF EMPLOYEES follows:
technical assistance works, outsourcing and consulting. amortization amount of 6,759 thousand Euro regarding
The breakdown was as follows: the amortization of costs to fullfill a contract (Note 6). As of 31st December 2023 and 2022, the number of 2023 2022
employees working for MCA (considering the region in Operating gains and income
· the amount of approximately 1,176 thousand Euro in In 2023, the categories of “Transportation of goods” and which said employees are effectively carrying out their
2023 (nearly 2,253 thousand Euro in 2022) related to “Fuel” saw a decrease, attributed to the final phase of the Favourable net exchange differences 67 488 1 303
activity) can be analysed as follows:
technical projects and assistance in logistic real estate “Solar Project in Angola” in this year. Gains on the sale of tangible assets 419 086 517 011
projects in Spain; Other operating income 3 824 458 2 646 639
2023 2022
In the years ended as of 31st December 2023 and 2022,
4 311 032 3 164 953
· the amount of about 4,413 thousand Euro in 2023 the item “Leases and rents” included, essentially, costs Top Management 16 14
(about 2,420 thousand Euro in 2022) regarding incurred with the lease of equipment, machines vehicles Leadership Team 18 17 Operating losses and expenses
studies and technical support for construction and premises in African countries, being those rents for Senior Specialists and Managers 64 Unfavorable net exchange differences 14 848 66 596
87
projects in Angola; and a short-term period and thus included in the IFRS 16 Taxes and fees 13 318 637 2 600 980
Specialists 289 228
exceptions.
Losses on the sale of tangible assets 70 396 2 894
· the remaining corresponds, essentially, to technical Generalists and Operational 851 729
assistance works, outsourcing and consulting in Others 4 4 Other operating expenses 985 300 902 599
Portugal, namely related to the projects mentioned in 1265 1 056 14 389 181 3 573 069
Note 25. above. Other operating income / (expenses) (10 078 149) (408 116)

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 140
In the years ended on 31st December 2023 and 2022, the 31. PROVISIONS AND IMPAIRMENT LOSSES
item “Taxes and fees” included taxes borne by the several
MCA companies, namely: (i) taxes and fees related to Provisions and impairment losses for the year ended 31st
the “Angola Rural Electrification project” (approximately December 2023 and 2022 can be analysed as follows:
11,080 thousand Euro in 2023), (ii) taxes on real estate
ownership and on capital gains from real estate sales (from 2023
national and municipal levels) in Spain (approximately Increases Reduction Net amount
1,973 thousand Euro in 2023 and 2,303 thousand Euro in
Provisions (Note 24.)
2022) and (iii) other taxes.
Provisions for construction warranties 2 750 049 (173 187) 2 576 862
In the years ended on 31 December 2023 and 2022, the
st
Provisions for onerous contracts - - -
item “Other operating income” included Studies, projects Adjustments and impairment losses
and assistance and other supplementary services. This
In customers and other debtors (Note 10.) 939 640 (73 644) 865 996
income is essentially the result of MCA’s activity in Africa,
amounting to approximately 2,992 thousand Euro (1,146 In inventories (Note 11.) 1 324 844 - 1 324 844
thousand Euro in 2022). TOTAL PROVISIONS AND IMPAIRMENT LOSSES 5 014 534 (246 831) 4 767 703

30. AMORTISATION AND DEPRECIATION 2022

Increases Reduction Net amount
Amortisation and depreciation in the years ended on 31 st
Provisions (Note 24.)
December 2023 and 2022 were as follows: Provisions for construction warranties 42 800 (20 313) 22 487
Provisions for onerous contracts 3 121 (501 403) (498 282)
2023 2022
Adjustments and impairment losses
Amortisation of intangible assets for the year (Note 4.)
In customers and other debtors (Note 10.) 3 407 694 (3 108) 3 404 586
Concession operation licenses 127 852 127 480
In inventories (Note 11.) 59 070 (623 917) (564 847)
Surface land rights 18 163 25 573
TOTAL PROVISIONS AND IMPAIRMENT LOSSES 3 512 685 (1 148 741) 2 363 944
Software and other rights 24 824 30 612
170 839 183 665
Depreciation of tangible assets for the year (Note 5.)
Land and Buildings 520 887 358 003
Equipment 1 551 900 1 046 611
Other tangible assets 70 402 50 692
2 143 189 1 455 306
Depreciation of right-of-use assets for the year (Note 7.)
Land and Buildings 217 554 9 806
Equipment 964 617 910 532
1 182 171 920 338
TOTAL AMORTIZATION AND DEPRECIATION 3 496 199 2 559 309

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 141
32. FINANCIAL INCOME AND GAINS AND In the years ended on 31st December 2023 and 2022, no
FINANCIAL COSTS AND LOSSES financial costs have been capitalised to assets.

The financial income and gains and the financial costs In the years ended on 31st December 2022, the item
and losses (financial results) in the years ended on 31st “Other financial cost and losses” included, essentially,
December 2023 and 2022 can be analysed as follows: expenses with loans issuance, as well as various costs
charged by financial institutions, which are being
2023 2022 recognized by the effective interest rate method.
FINANCIAL INCOME AND GAINS
Debt instruments and accounts receivable
33. GAINS IN ASSOCIATED COMPANIES
Interest income 149 480 3 294
Favourable exchange differences 8 119 601 5 059 123 Gains in associated companies for the years ended on 31st
Other financial assets
December 2023 and 2022 can be analysed as follows:
Interest income: Other financial investments - 1 160
2023 2022
Other financial income and gains 31 261 1 088 268
Gains in associated companies
8 300 342 6 151 845
Hospital Terra Quente, S.A. (Note 8.) 232 922 283 006
FINANCIAL COSTS AND LOSSES
HPC - Hospital Privado de Chaves, S.A. (Note 8.) - 2 842
Loans and accounts payable
HB - Hospital Bragança, S.A. (Note 8.) - 12 058
Interest expenses 1 368 064 2 347 252
Sines - Sinalização de Estradas, S.A. (Note 8.) 157 255 213 669
Unfavorable exchange differences 8 387 102 6 701 087
390 177 511 574
Other financial liabilities
Losses in associated companies
Expenses resulting from other financial investments 9 365 4 394
Elan - Electricidade e Montagens de Angola, S.A. (Note 8.) 9 317 43 141
Guarantees expenses and other bank commissions 581 004 279 794
Biosure Waste and Energy GmbH. (Note 8.) - 14 465
Other financial costs and losses 270 895 999 398
Surpresa Singular, Lda. (Note 8.) 2 339 197 200
10 616 430 10 331 925
Paraíso Presente, S.A. (Note 8.) 7 524 6 096
FINANCIAL RESULTS (2 316 088) (4 180 080)
HB - Hospital Bragança, S.A. (Note 8.) 55 303 -
Elan - Electricidade e Montagens de Angola, S.A. (Note 8.) 370 -
In the years ended on 31 December 2023 and 2022, the
st
MCA Agro, Lda. (Note 8.) - 191 365
favourable and unfavourable exchange differences arise 74 854 452 267
essentially in the Africa region, specifically in Angola. In
Gains/(Losses) in associated companies 315 323 59 307
the years ended as of 31st December 2023 and 2022, one
of the main items that contributed to this exchange rate
differences relates to loans granted by an Portuguese
subsidiary to a Angolan subsidiary. This loan was rendered
in Euro and the respective exchange rate impact was
recognized in the Angolan subsidiary.

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 142
34. INCOME TAX is explained for by the income before tax generated in As of 31st December 2023 and 2022, the breakdown of the
jurisdictions with tax rates different from that of the MCA. guarantees provided by MCA company was as follows:
As of 31st December 2023 and 2022, income tax is made
up as follows: As of the same dates, the nominal tax rates in force in Company Country 2023 2022
the main countries where MCA operates and which also Business Center
Spain 1 642 865 2 244 895
2023 2022 served as the basis for the quantification of the deferred Manzanares, S.L.
Current tax 7 954 417 1 305 778
tax assets and liabilities, since these are the rates expected M. Couto Alves
Angola 18 728 447 45 956 753
to be in force at the date of the reversal of the respective Vias, S.A.
Deferred tax (1 710 866) 251 723 M. Couto Alves,
temporary differences are as follows: Portugal 10 943 984 10 546 090
S.A.
Total current and deferred tax 6 243 551 1 557 501
MainBio, S.A. Portugal 740 000 990 000
Tax refunds from previous periods (5 316) (347 984) Country Tax rate
Other Companies
6 238 235 1 209 517 Angola 25% Portugal 743 913 810 580
in Portugal
Mozambique 32% 32 799 209 60 548 318
The reconciliation between income before taxes and Germany 27%
“Total current and deferred tax” for the periods ended Portugal 21% As of 31st December 2023, MCA company “Business
31st December 2023 and 2022 is as follows: Sao Tome and Principe 25% Center Manzanares, S.L.” has constituted an unilateral real
Spain 25%
estate mortgages in favour of the Getafe City Council and
2023 2022 several financial institutions, amounting to 1,643 thousand
Income before taxes 42 006 810 14 333 014 Euro (2,245 thousand Euro in 2022), in respect to the
Income tax (theoretical tax rate of 25%) 10 501 703 3 583 254
Additionally, it is the belief of MCA’s Board of Directors, execution and fulfilment of contractual obligations of the
supported by its legal and tax advisors, that there are real estate projects under development in Spain.
Effect of different income tax rates in other countries (5 166 834) (141 502)
no material liabilities associated with tax contingencies
Exchange rate differences not accepted for tax purposes (8 592) 441 018 that should give rise to the registration of provisions or As of 31st December 2023 and 2022, the guarantees
Gains or losses in associated companies (Notes 8. and 31.) 143 871 (14 827) the need for disclose in the accompanying consolidated provided by MCA company “M. Couto Alves Vias, S.A.”
Provisions and impairment losses not accepted for tax purposes (392 858) (1 793 466)
financial statements. and “[Link] Alves, S.A.” were granted to customers,
under construction contracts obligations (advance
Temporary differences on inventories 389 171 (5 461)
payment guarantees and guarantees for project execution).
Recognition of tax losses that have not originated deferred tax assets 536 302 307 177 35. CONTINGENT ASSETS AND LIABILITIES
Tax benefits 173 148 (1 151 323)
Autonomous taxes and tax benefits 148 612 94 645
As of 31st December 2023 and 2022, the guarantees
provided by MCA to third parties in the form of bank
Municipality surcharge 13 118 -
guarantees, credit insurances and mortgages, particularly
Others (94 088) (45 018) to customers whose contracts are being executed
Total current and deferred tax 6 243 551 1 557 501 by several companies of MCA, detailed by currency,
EFECTIVE INCOME TAX RATE 15% 11%
were as follows:

2023 2022
Euros (EUR) 30 574 948 53 896 025
Current tax is calculated based on the respective taxable
profit or loss, pursuant to the tax rules in force at the US Dollars (USD) - 2 570 809
location of the head office of each affiliated company. Angola Kwanza (AOA) 2 224 261 4 081 484
32 799 209 60 548 318
As of 31st December 2023 and 2022, the standard nominal
income tax rate in the Netherlands, where the head office
of MCA’s holding company is located, was 25%.

As of 31st December 2023 and 2022, the value in

‘Effect of different income tax rates in other countries’

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 143
36. RELATED PARTIES As of 31st December 2023 and 2022, the companies with This transaction allows MCA to reinforce their stake in
common shareholders to MCA, and included in the table MCA Agro. At of 31st December 2023 MCA held 91.65%
As of 31st December 2023 and 2022 and in the years then above, were the following: in MCA Agro.
ended, balances and transactions with related parties,
corresponding to associated companies (accounted for Eixo - Compras, Vendas e Serviços, S.A. In the period ended on 31st December 2023, no relevant
under the equity method) and to MCA’s shareholders Blue Park, Lda.
impacts arising from the participation increase of this
with qualifying holdings, or with other companies held by company.
Variações Infinitas, S.A.
the shareholders were as follows:
Inves2MSV Investimentos Imobiliários, S.A. 2022
Accounts
2023 Accounts payable Loans granted Loans obtained M. Couto Alves Vias, S.A. (controlled company)
receivable
Associated companies 343 843 317 161 - 194 256
Key management personnel of the entity or its parent
Companies with common shareholders to the Group 1 131 210 62 009 6 710 670 - As part of the MCA Restructuring Operation, MCA
The remuneration attributed to the members of the
Infrastructure has acquired an 18.33% equity stake
1 475 053 379 170 6 710 670 194 256 Board of Directors of the Company during the year ended
previously held by Mr. Manuel Couto Alves, for a total
on 31st December 2023, reached the amount of 1,194
amount of €18,097,628. This acquisition has resulted in
Accounts thousand Euro (971 thousand Euro in 2022), representing
2022 Accounts payable Loans granted Loans obtained MCA Infrastructure obtaining a controlling interest in
receivable fixed remuneration.
MCA VIAS.
Associated companies 8 106 022 6 125 654 63 -
The remuneration attributed to the members of the Key
Companies with common shareholders to the Group 1 114 020 - 6 710 670 - In addition, MCA Vias trough amortizing/extinguishing
Management of MCA (Board of Directors of the Company
9 220 042 6 125 654 6 710 733 - 80.00% of the shares held by MCA SA, which were
and Boards of Directors of MCA subsidiaries) during the
valued at €62,799,795. The total amount resulting from
year ended on 31st December 2023, reached the amount
this equity amortization, once MCA Vias had an amount
Cost of goods sold, mat. Cons. of 1,683 thousand Euro (1,590 thousand Euro in 2022),
receivable from MCA SA (related to loans granted in
2023 Subcontractors and other Sales and Services Rendered representing fixed remuneration.
operational costs previous years), was used to offset MCA Vias’ outstanding
Associated companies 249 872 (41 042) credit to MCA S.A..
Companies with common shareholders to the
363 800 - 37. CONSOLIDATION PERIMETER
Group This transaction allows MCA to reinforce their stake in
613 672 (41 042) MCA Vias. At of 31st December 2022 MCA held 91.66% in
As of 31st December 2023 and 2022, the companies/
MCA Vias.
entities included in the consolidation, respective
Cost of goods sold, mat. Cons. consolidation methods, head offices, effective percentages
Incorporation of companies
2022 Subcontractors and other Sales and Services Rendered holding, businesses, dates of incorporation and of
operational costs
acquisition are presented in Appendix A.
Associated companies 537 360 (892 786) 2023
Companies with common shareholders to the
431 400 - In the year ended 31st December 2023 and 2022, changes MCA - Infrastructures Ibéria, S.A. (controlled company)
Group
in the consolidation perimeter were as follows: LiGilé I, S.A. (controlled company)
968 760 (892 786)
MCA Minerals, S.A. (controlled company)
Participation increases
MCA Netherlands B.V. (controlled company)
As of 31st December 2023 and 2022, the only MCA’s
TQ - Saúde, SGPS, S.A. (company with significant influence)
shareholder with qualifying holdings is Mr. Manuel António 2023
Couto Alves. MCA Agro, Lda. (currently controlled company, previously company with
significant influence)
In this regard, from the date of incorporation, full
consolidation method was applied.
As part of the MCA Restructuring Operation, MCA
Infrastructure has acquired an 69.99% equity stake In the period ended on 31st December 2023, no impacts
previously held by Mr. Manuel Couto Alves, for a total arising from the consolidation of these entities using the
amount of EUR 2,797. full consolidation method.

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 144
2022
38. NOTES TO THE CONSOLIDATED
STATEMENT OF CASH‐FLOWS STATEMENT
BCM2Sustainability, S.L (controlled company)
Sequeros SPA (controlled company) In the years ended on 31st December 2023 and 2022, the
receipts arising from financial investments can be detailed
as follows:
In this regard, from the date of acquisition, full
consolidation method was applied.
2023 2022
The effects as of 31st December 2022, arising from the Disposal of other financial investments 522 830 71 610
consolidation of these entities using the full consolidation 522 830 71 610
method can be analysed as follows:

Financial Position Value prior to In the year ended on 31st December 2023, the payments
Adjustments to fair value Fair value
acquisiton arising from financial investments can be detailed as
Acquired net assets: follows:
Cash and cash equivalents 4 248 - 4 248
2023
4 248 - 4 248
Hospital Terra Quente, S.A. 40 000
HB - Hospital Bragança, S.A. 25 000
Exit of companies
Surpresa Singular, Lda. 39 501

2023 Paraíso Presente, S.A. 39 374

Sines - Sinalização de Estradas, S.A. (sold) Other financial investments 193 309

M. Couto Alves, S.A. - Branch in East Timor (liquidated) 337 184

MCA Uganda Limited (liquidated)

NIPSTECHNOLOGIE, Lda. (liquidated) In the year ended on 31st December 2022, the payments
Business Center Manzanares, S.L. - Branch in Portugal (liquidated)
arising from financial investments can be detailed as
follows:
M. Couto Alves, S.A. - Branch in Sao Tome and Principe (liquidated)

2022
2022 Hospital Terra Quente, S.A. 40 000
M. Couto Alves, S.A. - Branch in Bolivia (liquidated) Surpresa Singular, Lda. 273 668
M. Couto Alves Construciones, S.L. - Branch in Bolivia (liquidated) Paraíso Presente, S.A. 200 250
MCA Colombia SAS (liquidated) MCA Agro, Lda. 207 760
Other financial investments 49 963
In the period ended on 31 December 2023 and 2022, no
st
771 640
relevant impacts arising from the exit of this companies.

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 145
39. FINANCIAL INSTRUMENTS 2022
Assets at fair
Assets at fair
Financial assets value through Others non-
value through
Financial assets Notes recorded at the other financial Total
CATEGORIES OF FINANCIAL INSTRUMENTS amortized cost comprehensive
the income
assets
statement
income
Financial instruments, as of 31st December 2023 and 2022, Non current assets
in accordance with the accounting policies described in Other financial investments 9 1 460 182 185 516 - - 1 645 698
Note 2.3.5., were classified as follows:
Customers and other debtors

2023 Customers 10 - - - - -

Assets at fair Assets at fair Other debtors 10 273 886 - - - 273 886
Financial assets Others
value through the value through the
Financial assets Notes recorded at non-financial Total 1 734 068 185 516 - - 1 919 584
other compre- income state-
amortized cost assets
hensive income ment Current assets
Non current assets Other financial investments 9 860 - - - 860
Other financial investments 9 1 114 792 187 021 - - 1 301 813 Customers and other debtors
Customers and other debtors Customers 10 33 719 932 - - - 33 719 932
Other debtors 10 311 211 - - - 311 211 Other debtors 10 33 840 076 - - - 33 840 076
1 426 003 187 021 - - 1 613 024 Cash and cash equivalents 16 28 848 223 - - - 28 848 223
Current assets 96 409 091 - - - 96 409 091
Other financial investments 9 9 977 - - - 9 977 BOOK VALUE OF
98 143 159 185 516 - - 98 328 675
FINANCIAL ASSETS
Customers and other debtors
Customers 10 121 016 296 - - - 121 016 296
Other debtors 10 27 740 213 - - - 27 740 213
Cash and cash equivalents 16 31 495 747 - - - 31 495 747
180 262 233 - - - 180 262 233
BOOK VALUE OF
181 688 236 187 021 - - 181 875 257
FINANCIAL ASSETS

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 146
 2023 2022
Financial liabilities Liabilities at fair Financial liabilities Liabilities at fair
Others non-financial Others non-
Financial liabilities Notes recorded at value through the Total Financial liabilities Notes recorded at value through the Total
liabilities financial liabilities
amortized cost income statement amortized cost income statement
NON CURRENT LIABILITIES NON CURRENT LIABILITIES
Loans Loans
Amounts due to credit institutions 19 14 806 197 - - 14 806 197 Amounts due to credit institutions 19 12 578 240 - - 12 578 240
Suppliers and sundry creditors Other loans obtained 19 - - - -
Suppliers 20 - - - - Suppliers and sundry creditors
Sundry creditors 20 194 256 - - 194 256 Suppliers 20 - - - -
15 000 453 - - 15 000 453 Sundry creditors 20 3 122 616 - - 3 122 616
CURRENT LIABILITIES 15 700 856 - - 15 700 856
Loans CURRENT LIABILITIES
Amounts due to credit institutions 19 20 419 255 - - 20 419 255 Loans
Other loans obtained 19 32 981 - - 32 981 Amounts due to credit institutions 19 16 013 106 - - 16 013 106
Suppliers and sundry creditors Other loans obtained 19 14 238 - - 14 238
Suppliers 20 44 911 517 - - 44 911 517 Suppliers and sundry creditors
Sundry creditors 20 10 504 529 - - 10 504 529 Suppliers 20 28 891 545 - - 28 891 545
75 868 282 - - 75 868 282 Sundry creditors 20 10 256 728 - - 10 256 728
BOOK VALUE OF FINANCIAL 55 175 617 - - 55 175 617
90 868 735 - - 90 868 735
LIABILITIES
BOOK VALUE OF FINANCIAL
70 876 473 - - 70 876 473
LIABILITIES

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 147
The impacts on the consolidated statement of FINANCIAL INSTRUMENTS AT FAIR VALUE
comprehensive income resulting from the above- MEASUREMENT
mentioned financial instruments can be summarized as
follows: In accordance with the accounting rules, the fair value
of financial assets and liabilities measurement at fair
2023 value correspond to the following levels of the fair value
Other comprehensive hierarchy (Note 2.1.).
Income statement
income
Financial expenses Financial income Fair value reserve 2023 2022
(Note 32.) (Note 32.) (Note 9.)
Total Fair Carrying Total Fair Carrying
Financial assets Notes Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
value amount value amount
At amortized cost - 149 480 - Assets at fair value
At fair value - 31 261 - Assets at fair value through
the other comprehensive 9 187 021 - - 187 021 187 021 185 516 - - 185 516 185 516
- 180 741 - income
Financial liabilities Assets at fair value through
- - - - - - - - - -
the income statement
At amortized cost 1 368 064 - -
Liabilities at fair value
At fair value - - -
Liabilities at fair value
1 368 064 - - through the income - - - - - - - - - -
statement

2022
Other comprehensive FINANCIAL RISKS
Income statement
income
Financial expenses Financial income Fair value reserve MCA is exposed to a variety of financial risks, with special
(Note 32.) (Note 32.) (Note 9.) focus given to the risks of interest rate, foreign exchange
Financial assets rate for transactions, liquidity and credit.
At amortized cost - 1 092 722 -
At fair value - - -
Detailed information regarding the policy on financial risk
management as follows:
- 1 092 722 -
Financial liabilities Mitigation Measures
Risk Risk Description
(not exhaustive)
At amortized cost 2 347 252 - -
Liquidity risk associated with insufficient cash to Diversify the funding base, in number of banking entities and
At fair value - - - Liquidity meet the needs of the business, namely due to the in the different markets where MCA operates; set up financing
dependence on meeting project milestones. lines based on the cash flow plan and treasury forecast.
2 347 252 - -
Continuous monitoring of KPIs and financial indicators;
Ability of the businesses to generate EBITDA in
EBITDA understand and justify major variations on a regular basis and
accordance with MCA’s budget plan and strategic plan.
report to the Board.
Compliance with Covenants in the different Business Continuous monitoring of Covenants; report
Covenants
Units with impacts in MCA. to the Board.
Diversification of projects in terms of geography and technology;
High dependence on few projects. The business offer of
Business concentration proactive role in the analysis of innovative solutions, new ways
the various Business Units has to adapt in order to be
in few Clients/Partners of carrying out high value projects and with positive impact in
competitive in the markets where it operates.
MCA’s business image.

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 148
Interest rate risk In the years ended on 31st December 2023 and 2022, the
sensitivity of MCA´s net profit and equity to exchange rate
In the year ended on 31st December 2023, the sensitivity changes in the major currencies to which it is exposed can
of MCA´s financial results to changes in the index of be analysed as follows:
the interest rate of the loans obtained can be analysed
as follows: the impact on interest expenses due to a 1% 2023 2022
change in the interest rate applied to the entire debt is, Estimated impact of the appreciation by 10% Net profit Equity Net profit Equity
approximately, 352 thousand Euro.
of Angola Kwanzas (AOA) to Euros (EUR) 41 805 543 108 1 300 036 854 958
The average interest rate borne in the main loans obtained of Mozambique Metical (MZN) to Euros (EUR) (10 124) (175 332) 4 942 (174 151)
by MCA in the year ended on 31st December 2023 was as 31 681 367 776 1 304 978 680 807
follows:

Average rates (%) Rates range (%)

For the purposes of the abovementioned analysis, it
was considered the impact in the net profit and in the
Amounts due to credit institutions:
equity of a +10% change in the exchange rate used in the
Bank loans 5,31% [2,050% to 8,007%] conversion of the financial statements of the subsidiaries
Overdraft facilities 2,55% [2,550% to 2,550%] with a currency different from the Euro.
Leasing 5,28% [3,628% to 7,500%]
Liquidity risk
Factoring 5,56% [5,147% to 6,384%]
Confirming 4,76% [1,750% to 7,036%] As of 31st December 2023 and 2022, the liquidity position
of MCA can be detailed as follows:
As of 31st December 2023, all the amounts of debt due to
2023
credit institutions were contracted at variable rate and its
average cost amounted to 5%. Between 1 and 3 More than 3
< 1 year Undetermined Total
years years
Financial liabilities
Exchange rate risk
Loans 20 452 236 7 077 362 7 728 835 - 35 258 433
As of 31 December 2023 and 2022, the assets and
st
Suppliers and sundry creditors 55 416 046 194 256 - - 55 610 302
liabilities of MCA expressed in accordance with the 75 868 282 7 271 618 7 728 835 - 90 868 735
functional currency of the country in which each affiliate
operates, were as follows:
2022
2023 2022 Between 1 and 3 More than 3
< 1 year Undetermined Total
years years
Currency Assets Liabilities Assets Liabilities
Financial liabilities
Euros (EUR) 247 165 895 186 589 076 170 004 123 136 947 401
Loans 16 027 344 6 699 577 5 878 663 - 28 605 584
Angola Kwanzas (AOA) 37 572 899 34 327 308 45 885 967 37 910 700
Suppliers and sundry creditors 39 148 273 3 122 616 - - 42 270 889
Mozambique Metical (MZN) 873 813 2 451 799 895 052 2 462 415
55 175 617 9 822 193 5 878 663 - 70 876 473
Others 1 027 573 2 540 329 777 075 2 506 267
286 640 180 225 908 513 217 562 216 179 826 783

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 149
Credit risk 41. FEES PAID TO THE INDEPENDENT
AUDITOR / STATUTORY AUDITOR
As of 31st December 2023 and 2022, the exposure of
MCA to credit risk was as follows: In the year ended 31st December 2023, the amount of fees
paid to the independent auditors / statutory auditors of
2023 2022 MCA were as follows:
Financial assets
Other group entities /
Cash and cash equivalents 31 495 747 28 848 223 MCA Holding B.V. Total
companies
Customers and other debtors 149 067 720 67 833 894 Audit services 55 000 241 025 296 025
Other financial investments 1 311 790 1 646 558 Other consultancy services - 10 550 10 000
BOOK VALUE OF FINANCIAL ASSETS 181 875 257 98 328 675 55 000 251 575 306 025

MCA’s credit risk results essentially from: (i) the risk of the liabilities, or in the quality of the guarantees of MCA independent auditor is Londen & Van Holland, which
recovery of the monetary assets entrusted to the custody third parties; and is also the preferential (but not exclusive) independent
of third parties; and (ii) the risk of recovery of loans auditor / statutory auditor of MCA companies.
granted to entities outside MCA. Credit risk is assessed at · Significant changes in the performance and expected
baseline and over time in order to monitor its evolution. behaviour of the debtor, including changes in the
debtor’s payment conditions at the level of MCA to 42. APPROVAL OF THE FINANCIAL
A significant part of the amount receivable from which it belongs, as well as changes in its operating STATEMENTS
customers and other debtors is dispersed by a large results performance.
number of entities, a factor that contributes to the These consolidated financial statements were approved
reduction of credit concentration risk. As a general rule, For the financial assets recorded under “Customers and by MCA’s Board of Directors on 23rd May 2024.
a significant part of MCA’s customers does not have an other debtors” and “Contract Assets”, MCA applies the However, they are still pending approval by the General
external credit rating attributed. simplified approach to calculate and record the expected Shareholders’ Meeting, with the conviction of MCA’s
credit losses required by IFRS 9 (Note 2.3.5.). Board of Directors that they will be approved without
For financial assets other than those recorded under amendment.
the captions “Clients and other debtors” and “Contract
assets”, MCA considers the probability of default at the 40. SUBSEQUENT EVENTS
initial recognition of the asset and depending upon the
occurrence of a significant increase in the credit risk on At the date of issuance of these consolidated financial Amsterdam, 23rd May 2024
each reporting period. statements, there were no significant events have
occurred after 31st December 2023 which might modify Manuel António Couto Alves
In order to assess whether there was a significant increase the consolidated financial statements at that date or Director and Chairman of the Board of Directors
in credit risk, MCA takes into account, inter alia, the warrant the inclusion of additional disclosures to the
following indicators: ones included in the notes to these consolidated financial IQ EQ Management (Netherlands) B.V.
statements. Director
· Internal credit rating;

· External credit rating (if available);

· Current or expected adverse changes in the debtor’s

operating results;

· Significant increases in the credit risk of the other

financial instruments of the debtor;

· Significant changes in the value of the collateral on

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 150
1.7 Appendix A Effective percentage of
participation

Date of Date of
Company Headquarters 2023 2022 Activity incorporation acquisition

16 Sahara - Areias Britas e Betões, S.A. 75.00 75.00 Execution of public works and civil construction; - Mar-21
Portugal Extraction of sands, rocks, and other stones
Through Edimade - Edificadora da Madeira, S.A.
COMPANIES INCLUDED IN THE Through Edimade II - Promoção Imobiliária, S.A.
(Funchal) 55.00
20.00
55.00
20.00
for construction; Manufacture of concrete products
and bituminous mixtures.

CONSOLIDATIONBY THE FULL

17 Vias Douradas- Sociedade de Construção, Lda. 92.50 92.50 - Mar-21
CONSOLIDATION METHOD Through Edimade - Edificadora da Madeira, S.A.
Portugal
70.00 70.00 Execution of public works and civil construction.
(Porto Santo)
Through Sahara - Areias Britas e Betões, S.A. 22.50 22.50

Companies included in the consolidation by the full 18 MCA Deutschland GmbH Germany 100.00 100.00
Generation and sale of eletricity. Carrying out studies
and projects of all kinds which have some sort of
Oct-21 -
(Frankfurt)
consolidation method as of 31st December 2023 and M. Couto Alves - Energy, S.A. 100.00 100.00 connection with energy sector.

2022, their headquarters, the effective holding percentage, 19 MCA2 Sustainability, S.A. Portugal 100.00 100.00
Provision of consulting services in the area of
engineering. Conducting studies, development and
Nov-21 -
(Funchal)
their activity and their incorporation / acquisition date, Through M. Couto Alves Holding BV 100.00 100.00 implementation of projects in renewables energy

were as follows: 20 M. Couto Alves Vias, S.A. Angola 91.66 91.66

Execution of public works and civil construction
Feb-06 -
(Luanda)
Through M. Couto Alves - Infrastructures, S.A. 91.66 91.66

21 M. Couto Alves - Máquinas e Equipamento de Aluguer, S.A. 67.50 67.50 Nov-07 -

Angola Execution of works and rental
Effective percentage of Through M. Couto Alves Vias, S.A.
(Haumbo)
46.99 46.99
of equipment
participation Through M. Couto Alves, S.A. 20.51 20.51

Date of Date of
Company Headquarters 2023 2022 Activity 22 MCA Moçambique, S.A. Mozambique 73.73 73.73 Sept-09 -
incorporation acquisition (Maputo)
Execution of public works and civil construction
Through M. Couto Alves, S.A. 73.73 73.73
Netherlands
1 M. Couto Alves Holding BV Parent-company Parent-company Management of financial investments Nov-17 -
(Amsterdam)
23 MCA – São Tomé e Príncipe, Unipessoal, Lda. Sao Tome and Principe 100.00 100.00 Mar-16 -
Execution of public works and civil construction
(Sao Tome)
Through M. Couto Alves, S.A. 100.00 100.00
2 M. Couto Alves Corporate Services, S.A. Portugal 100.00 100.00 Jan-18 -
Provision of corporate / shared services
(Guimarães)
Through M. Couto Alves Holding BV 100.00 100.00
24 M. Couto Alves, S.A. - Branch in Sao Tome and Principe Sao Tome and Principe - 100.00 Apr-16 -
Execution of public works and civil construction
(Sao Tome)
Through M. Couto Alves, S.A. - 100.00
3 M. Couto Alves, S.A. - Branch in Spain Spain 100.00 100.00 Dec-18 -
Execution of public works and civil construction
(Madrid)
Through M. Couto Alves, S.A. 100.00 100.00
25 M. Couto Alves - Real Estate, S.A. Portugal 100.00 100.00 Nov-18 Dec-20
Real Estate
(Famalicão)
Through [Link] Alves Holding BV 100.00 100.00
4 M. Couto Alves Construcciones, S.L. 75.37 75.37 Jan-16 -
Spain
Through M. Couto Alves, S.A. 60.00 60.00 Execution of public works and civil construction
(Madrid) 26 Euro Bridge - Sociedade Imobiliária, S.A. Portugal 98.00 98.00 Aug-11 Dec-20
Through Business Center Manzanares, S.L. 15.37 15.37 Real Estate
(Guimarães)
Through M. Couto Alves - Real Estate, S.A. 98.00 98.00

5 M. Couto Alves - Finance LDA Portugal 75.00 75.00 Sept-20 -

Finance
(Guimarães) 27 Enredo Diligente, Lda. Portugal 100.00 100.00 Aug-18 Dec-20
Through M. Couto Alves Holding BV 75.00 75.00 Real Estate
(Santa Maria Feira)
Through M. Couto Alves - Real Estate, S.A. 100.00 100.00

6 M. Couto Alves, SGPS, S.A. Portugal 100.00 100.00 Sept-21 -

Finance
(Guimarães) 28 Business Center Manzanares, S.L. Spain 76.84 76.84 Feb-08 -
Through M. Couto Alves Holding BV 100.00 100.00 Real estate development
(Madrid)
Through M. Couto Alves, S.A. 76.84 76.84

7 M. Couto Alves - Infrastructures, S.A. Portugal 100.00 100.00 Execution of public works and civil, sale of buildings Oct-21 -
(Guimarães) for resale, leasing, administration of real estate. 29 Business Center Manzanares, S.L. - Branch in Portugal Portugal - 76.84 Oct-16 -
Through M. Couto Alves, SGPS, S.A. 100.00 100.00 Real estate development
(Vila Nova de Gaia)
Through Business Center Manzanares, S.L. - 76.84

8 M. Couto Alves - Urban Development, S.A. Portugal 100.00 100.00 Oct-21 -

Real Estate
(Guimarães) 30 Pralerise, S.L. Spain 76.84 76.84 Jun-21 -
Through M. Couto Alves, SGPS, S.A. 100.00 100.00 Real estate development
(Madrid)
Through Business Center Manzanares, S.L. 76.84 76.84

9 M. Couto Alves - Energy, S.A. 100.00 100.00 Develop, engineer, procure, construct, operate, sell or Oct-21 -
Portugal
otherwise dispose energy related projects and energy 31 GATALLANES SL Spain 63.70 63.70 - Mar-19
Through M. Couto Alves, SGPS, SA (Guimarães) 100.00 100.00 Real Estate
related services and products. (Getafe)
Through Euro Bridge - Sociedade Imobiliária, S.A. 63.70 63.70

10 100.00 100.00 Jul-98 -

M. Couto Alves, S.A. Portugal
Execution of public works and civil construction 32 Lexivarius, S.A. Portugal 70.00 70.00
(Guimarães) Real Estate May-21
Through M. Couto Alves Holding BV 100.00 100.00 (Guimarães)
Through M. Couto Alves - Real Estate, S.A. 70.00 70.00

11 M. Couto Alves - PSS, S.A. Portugal 67.60 67.60 Jan-09 -

Execution of public works and civil construction 33 MCA – HealthCare, Unipessoal Lda Portugal 100.00 100.00 May-20 -
(Guimarães) Healthcare
Through M. Couto Alves, S.A. 67.60 67.60 (Guimarães)
Through M. Couto Alves, SGPS, S.A. 100.00 100.00

12 99.99 99.99 Oct-10 -

M. Couto Alves - Marina de Gaia, Lda. Portugal Design, construction, management and operation of
34 MSI - Medical Solutions and Innovation Lda Portugal 60.00 60.00 May-20 -
(Guimarães) 99.99 99.99 recreational ports Healthcare
Through M. Couto Alves, S.A. (Gaia)
Through MCA – HealthCare, Unipessoal Lda 60.00 60.00

13 Imotarf - Investimentos imobiliários, S.A. Portugal 100.00 100.00 Civil construction industry, sale of buildings for resale, - Dec-20
35 Mainbio, S.A. Portugal 50.98 50.98 Biodiesel manufacturing and recovery of non-metallic Apr-19 -
(Póvoa de Lanhoso) leasing, administration of real estate.
Through M. Couto Alves, S.A. 100.00 100.00 (Guimarães) waste.
Through M. Couto Alves, S.A. 50.98 50.98

14 Edimade - Edificadora da Madeira, S.A. Portugal 100.00 100.00 - Mar-21

Execution of public works and civil construction 36 NIPSTECHNOLOGIE, Lda. Portugal - 100.00 Technology - May-21
(Funchal)
Through M. Couto Alves, S.A. 100.00 100.00 (Guimarães)
Through M. Couto Alves, S.A. - 100.00

15 Edimade II - Promoção Imobiliária, S.A. Portugal 100.00 100.00 - Mar-21 Promotion, construction, restoration and sale of real
Real Estate 37 Arcairal S.L. Spain 76.84 76.84 Feb-18 -
(Funchal) estate developments and all kinds of buildings intended
Through Edimade - Edificadora da Madeira, S.A. 100.00 100.00 (Madrid)
Through Business Center Manzanares, S.L. 76.84 76.84 for industrial, commercial or housing purposes.

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 151
 Effective percentage of
participation COMPANIES/ENTITIES INCLUDED IN THE
Company Headquarters 2023 2022 Activity Date of
incorporation
Date of
acquisition
CONSOLIDATION BY THE EQUITY METHOD
38 38.80 38.80 Jun-19 -
Grupo MCA Controladora, SAPI de CV
Through Arcairal, S.L.
Mexico
(Mexico City) 38.80 38.80
Execution of public works and civil construction Companies/entities included in the consolidation by the
equity method as of 31st December 2023 and 2022, their
39 80.00 80.00 Sept-19 -
MCA - Guiné-Bissau, S.A.R.L.
Through M. Couto Alves Holding BV
Guinea Bissau
(Bissau) 80.00 80.00
Execution of public works and civil construction headquarters and effective holding percentage and their
activity, were as follows:
40 MCA Uganda Limited - 73.00 Nov-17 -
Uganda
Through M. Couto Alves, S.A. - 51.00 Execution of public works and civil construction
(Kampala)
Through M. Couto Alves Vias, S.A. - 22.00 Effective percentage
of participation
41 M. Couto Alves, S.A. - Branch in East Timor East Timor - 100.00 Jan-16 -
Execution of public works and civil construction Date of
Through M. Couto Alves, S.A. (Díli) Company Headquarters 2023 2022 Activity Date of incoporation
- 100.00 acquisition

51 Sines - Sinalização de Estradas, S.A. Angola - 33.19

42 M. Couto Alves Kenya Limited 70.00 70.00 Jun-18 -
Kenya Execution of public works and civil construction (Luanda) - 33.19 Signs, maintenance and repair of roads May-07 -
Through M. Couto Alves Holding BV Through M. Couto Alves Vias, S.A.
70.00 70.00

43 MCA Cameroun SARL 70.00 70.00 Jul-18 -

Cameroon Execution of public works and civil construction 52 Elan - Electricidade e Montagens de Angola, S.A. Angola 38.31 38.31
Through M. Couto Alves Holding BV
70.00 70.00 (Huambo) Execution of electrical installations and
Through M. Couto Alves Vias, S.A. 37.58 37.58 Mar-07 -
telecommunications and security infrastructures
Through Development Concept Engenharia, Lda. 0.73 0.73
44 BCM2Sustainability, S.L Spain 100.00 100.00 Apr-22 -
Real estate development
M. Couto Alves - Urban Development, S.A. (Madrid)
100.00 100.00
53 Development Concept Engenharia, Lda. Angola 18.33 18.33
(Luanda) 18.33 18.33 Execution of public works and civil construction - -
45 Sequeros SPA Polónia 70.00 70.00 Organic Waste-to-BioLNG via anaerobic digestion Jul-22 - Through M. Couto Alves Vias, S.A.
M. Couto Alves - Energy, S.A. (Madrid) with CCUS
70.00 70.00

54 MCA - Pedreiras e Agregados, S.A. Angola 5.04 5.04

46 MCA Netherlands B.V. 100.00
Nethelands - Execution of public works and civil, sale of buildings (Luanda) 5.04 5.04 Exploration of quarries to obtain aggregates - -
Through M. Couto Alves - Infrastructures, S.A. Jul-23 - Through M. Couto Alves Vias, S.A.
(Amstedam) 100.00 - for resale, leasing, administration of real estate.

- Develop, engineer, procure, construct, operate, sell

47 MCA Minerals, S.A. Portugal 100.00
or otherwise dispose minerals related projects and Aug-23 - 55 Surpresa Singular, Lda. Portugal 50.00 50.00
Through M. Couto Alves - Energy, S.A. (Guimarães)
100.00 - minerals related services and products. (Lisboa) 50.00 50.00 Real Estate Oct-17 Dec-20
Through Enredo Diligente, Lda.
-
48 LiGilé I, S.A. Mozambique 70.00 Exploration and sale of mineral products
Oct-23 -
Through MCA Minerals, S.A. (Maputo)
70.00 - 56 Paraíso Presente, S.A. Portugal 22.50 22.50
(Matosinhos) 22.50 22.50 Real Estate Mar-19 Dec-20
Through Enredo Diligente, Lda.
100.00 -
49 MCA - Infrastructures Ibéria, S.A. Portugal Execution of public works and civil construction
Sep-23 -
Through MCA - Infrastructures, S.A. (Guimarães)
100.00 -
57 Hospital Terra Quente, S.A. Portugal 29.36 29.36
(Mirandela) 29.36 29.36 Healthcare (hospital management) Feb-08 Dec-20
50 MCA Agro, Lda. Angola 91.65 27.50 Through MCA – HealthCare, Unipessoal Lda
Agriculture business Nov-17 -
Through M. Couto Alves Vias, S.A. (Luanda) 27.50
91.65

58 HPC - Hospital Privado de Chaves, S.A. Portugal 25.53 25.53

(Chaves)
Through MCA – HealthCare, Unipessoal Lda 16.50 16.50 Healthcare (hospital management) Apr-19 Dec-20
Through Hospital Terra Quente, S.A. 9.03 9.03

59 HB - Hospital Bragança, S.A. Portugal 18.81 18.81

(Bragança)
Through MCA – HealthCare, Unipessoal Lda 10.00 10.00 Healthcare (hospital management) Dec-19 Dec-20
Through Hospital Terra Quente, S.A. 8.81 8.81

60 Telmo José Moreno, Lda. Portugal 18.81 18.81

(Bragança) 18.81 18.81 Health Care - Dec-20
Through HB - Hospital Bragança, S.A.

61 Biosure Waste and Energy GmbH. Austria 60.00 60.00

Administration, management, consulting and
(Vienna) 60.00 60.00 May-19 -
Through M. Couto Alves Holding BV intermediary services for waste and energy solutions.

62 MCA – Cote D´Ivoire, S.A. Ivory Coast 20.00 20.00

20.00 20.00 Execution of public works and civil construction Jun-16 -
Through M. Couto Alves, S.A.

63 TQ - Saúde, SGPS, S.A. Portugal 45.60 -

(Mirandela) 45.60 - Healthcare (hospital management) Sep-23 -
Through MCA – HealthCare, Unipessoal Lda

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 152
MCA possesses 50% or over of the voting rights in both
“Biosure Waste” and “Surpresa Singular”, however, the
board of directors for these companies is divided among
the shareholders, resulting in MCA not having enough
voting power alone to pass important resolutions that
could significantly impact the companies’ returns. Despite
having a majority of the voting rights, MCA may not
practically control the decision-making process of the
board for “Biosure Waste” and “Surpresa Singular”. MCA
has tried to exert its influence over the board through
various means, such as negotiating with other shareholders
or participating in board meetings, but these efforts
have not been successful in gaining significant control or
influence over the activities of the two companies.

Integrated Report 2023 Part II – Financial Statements 1. Consolidated Financial Information 153
 14.
Company Financial
Information

Integrated Report 2023 Part II – Financial Statements 154

2.
Company
Financial Information

Integrated Report 2023 Part II – Financial Statements 155

2.1 Company Statement 2.2 Company Income Statement
of Financial Position
Company Income Statement for the year ended
31st December 2023 and 2022. (Amounts in Euro)
Company Statement of Financial Position as of
31st December 2023 and 2022. (Amounts in Euro)
Notes 31-12-2023 31-12-2022

Notes 31-12-2023 31-12-2022 Other operating income 10 35 000 000 5 158

ASSETS Third-party supplies and services 11 (219 561) (192 612)

Non current assets Wages and salaries 12 - -

Financial investments in group companies Financial incomes and gains 2 280 3 287
2 19 436 371 19 436 371
Other debtors Financial costs and losses - (3 250)
3 140 518 116 455
Total non current assets 19 576 890 19 591 890 Other expenses (25 774) -

Current assets Profit/(Loss) before tax 34 756 987 (187 416)

Other debtors 3 25 003 329 34 812 Income tax - -

Other current assets 4 8 161 11 442 NET LOSS FOR THE YEAR 34 756 987 (187 416)

Cash and cash equivalents 5 229 356 98 904 The notes to the financial statement form an integral part of the
Total current assets 25 240 845 145 158 statement of financial position and must be read in conjunction.
TOTAL ASSETS 44 817 736 19 737 048
EQUITY AND LIABILITIES
Equity
Share capital 6 10 000 000 10 000 000
Share premiums 6 19 412 9 246 267
Reserves and retained earnings (2 780 261) (2 592 844)
Net loss for the year 34 756 987 (187 416)
Own funds attributable to the Company 41 996 138 16 466 007
Total equity 41 996 138 16 466 007
Liabilities
Current liabilities
Loans 7 150 3 176 798
Suppliers and sundry creditors 8 2 762 447 25 842
Other current liabilities 9 59 000 68 400
Total liabilities 2 821 597 3 271 041
TOTAL EQUITY AND LIABILITIES 44 817 735 19 737 048

The notes to the financial statement form an integral part of the statement of
financial position and must be read in conjunction.

Integrated Report 2023 Part II – Financial Statements 2. Company Financial Information 156
2.3 Company Statement 2.4 Company Statement
of Comprehensive Income of Changes in Equity
Company Statement of Comprehensive Income Company Statement of Changes in Equity
for the year ended 31st December 2023 and 2022. for the year ended 31st December 2023 and 2022.
(Amounts in Euro) (Amounts in Euro)

31-12-2023 31-12-2022 Reserves

Share Total
Share capital and retained Net loss
Net profit/(loss) of the year 34 756 987 (187 416) premiums Equity
earnings
Items that may be reclassified subsequently to income statement - - Balance as at 1st January 2022 10 000 000 9 246 267 (2 347 086) (245 758) 16 653 423
Changes in the fair value of other financial investments - - Total net loss for the year - - - (187 416) (187 416)
Total other comprehensive income for the year - - Other comprehensive expense for the year - - - - -
TOTAL COMPREHENSIVE LOSS FOR THE YEAR 34 756 987 (187 416) - - - (187 416) (187 416)
Appropriation of consolidated net loss of 2021
The notes to the financial statement form an integral part of the statement of
financial position and must be read in conjunction. Transfer to legal reserves and retained earnings - - (245 758) 245 758 -
BALANCE AS AT 31st DECEMBER 2022 10 000 000 9 246 267 (2 592 844) (187 416) 16 466 007
Balance as at 1st January 2023 10 000 000 9 246 267 (2 592 844) (187 416) 16 466 007
Total net loss for the year - - - 34 756 987 34 756 987
Other comprehensive expense for the year - - - - -
- - - 34 756 987 34 756 987
Appropriation of consolidated net loss of 2022
Transfer to legal reserves and retained earnings - - (187 416) 187 416 -
Capital and share premiums increase/reduction (Note 5.) - (9 226 855) - - (9 226 855)
BALANCE AS AT 31st DECEMBER 2023 10 000 000 19 412 (2 780 261) 34 756 987 41 996 138

The notes to the financial statement form an integral part of the statement of
financial position and must be read in conjunction.

Integrated Report 2023 Part II – Financial Statements 2. Company Financial Information 157
2.5 Company Statement 2.6 Notes to the Company · Secondly, once it was established that there should
of Cash Flows Financial Statements be a new holding company for MCA, it was also
established that such new holding company should
not be set up in Portugal, given that MCA is
Company Statement of Cash Flows for the year becoming increasingly international, but should rather
ended 31st December 2023 and 2022. (Amounts be located at a jurisdiction which: (i) is part of the
0. INTRODUCTION
in Euro) European Union, thus benefiting from the advanced
protection granted by EU law; (ii) is respected and
M. Couto Alves Holding B.V. with head office at
reputable as a business hub; (iii) is central, thus
Notes 31-12-2023 31-12-2022 Hoogoorddreef 15, Amsterdam, The Netherlands
allowing for easy travel thereto whenever necessary;
OPERATING ACTIVITIES (“MCA Holding” or “Company”) was incorporated on
(iv) has access to financial markets; (v) is known for
12th December 2017 and has the registration number
Payments to suppliers (211 350) (344 207) its legal and fiscal stability. Ultimately, it was decided
70291454 with the Dutch Chamber of Commerce. The
Cash flow used by operating activities (211 350) (344 207) that The Netherlands was a fit choice and thus it was
Company’s country of incorporation and domicile is
here the holding company has incorporated.
Other cash payments relating to operating activities 18 450 4 228 the Netherlands. MCA Holding activity consists in the
Net cash flow used in operating activities (1) (192 900) (339 979) management of financial holdings and, together with its
The next step of this restructuring process was the
subsidiaries (“MCA” or “Group”), have as its principle
INVESTMENT ACTIVITIES transfer of shares representing MCA PT share capital (and
activities the Development, Engineering, Procurement,
Receipts arising from: its direct and indirect subsidiaries) to MCA Holding. This
Construction and Operation of projects in Energies,
transfer was performed on October 2018, when MCA
Dividends 10 000 000 - Urban Development, Infrastructures and Healthcare
Holding issued 10,000,000 (ten million) new shares to the
Net cash used in investment activities (2) 10 000 000 - sectors.
Shareholders, in exchange for which the Shareholders
FINANCING ACTIVITIES transfer the full legal and beneficial right, title and interest
MCA Holding was incorporated following the strategic
Receipts arising from: in and to all shares held by them in the share capital
decision of MCA’s Shareholders to set up a holding
of MCA PT to MCA Holding by way of a non-cash
Loans obtained 7 180 000 335 500 company in the Netherlands. There were two main
contribution.
Payments arising from: reasons for this decision:
Loans obtained (3 356 648) - The Company presents its financial statements in
· Firstly, the previous holding company of MCA (M.
Reductions of capital and supplementary capital contributions (6 500 000) - accordance with the following accounting standards: (i)
Couto Alves, S.A. (“MCA PT”) – a private company
Company-only financial statements prepared in accordance
Net cash generated from financing activities (3) (9 676 648) 335 500 with limited liability incorporated under the laws
with International Financial Reporting Standards, as
VARIATION OF CASH AND CASH EQUIVALENTS (4)= (1) + (2) + (3) 130 452 (4 479) of Portugal, having its registered office address at
adopted by the European Union; and (ii) consolidated
Guimarães, Portugal), is also an operational company.
Cash and cash equivalents at the beginning of the year 5 98 904 103 383 financial statements prepared in accordance with
The Shareholders believe that it is preferable to
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 5 229 356 98 904 International Financial Reporting Standards, as adopted by
separate the operational activity from the holding
the European Union.
The notes to the financial statement form an integral part of the statement of and management activity – from a risk management
financial position and must be read in conjunction. perspective, but also from an increased efficiency
All the amounts presented in these notes are expressed
perspective. These activities are very different and
in Euro, rounded off to the unit, unless explicitly stated
require different expertise, personnel, assets and
otherwise.
monitoring. Separating them into two different
legal entities will allow the Board members of
each one to focus on the corresponding activities
separately. It will also allow the Shareholders to
have a better perception of the performance of each
activity, which shall be reflected in each legal entity’s
accounts separately as well. For reasons connected
with the history and curriculum of MCA PT, it is
preferable that this legal entity continues pursuing its
operational activity, and a new holding company is
created within MCA.

Integrated Report 2023 Part II – Financial Statements 2. Company Financial Information 158
1. BASIS OF PREPARATION is written down to the estimated recoverable amount. 2. FINANCIAL INVESTMENTS IN MCA
AND MAIN ACCOUNTING POLICIES This may be done, even if the participation itself has not COMPANIES
recognised the losses in its own books. In the event that
the reasons for making such an impairment cease to exist, As of 31st December 2023 and 2022, the financial
1.1 BASIS OF PREPARATION the impairment is reversed. investments in MCA companies were detailed as follows:

The financial statements of the Company were 2023 2022

prepared in accordance with the International Financial 1.2.2 DIVIDENDS % of detention Book value % of detention Book value
Reporting Standards (IFRS) issued by the International
M. Couto Alves, S.A. 100.00% 17 747 518 100.00% 17 747 518
Accounting Standards Board (IASB), and according to Dividends are recognised as income when the
the interpretations issued by the International Financial shareholders’ right to receive payment is established by in M. Couto Alves Corporate Services, S.A. 100.00% 50 000 100.00% 50 000
Reporting Interpretations Committee (IFRIC) or the the statement of financial position date. Dividends from M. Couto Alves - Real Estate, S.A. 100.00% 61 996 100.00% 61 996
former Standards Interpretations Committee (SIC), as subsidiaries are recognised even if they are declared after Biosure Waste and Energy GmbH. 60.00% 21 000 60.00% 21 000
adopted and effective by the European Union as of 1st the statement of financial position date but pertains to
M. Couto Alves - Finance Lda 75.00% 4 185 75.00% 4 185
January 2023. period on or before the statement of financial position
date. M. Couto Alves, SGPS, S.A. 100.00% 1 500 000 100.00% 1 500 000
These financial statements also comply with the financial MCA2 Sustainability, S.A. 100.00% 50 000 100.00% 50 000
reporting requirements included in Part 9 of Book 2 of the MCA Cameroun SARL 70.00% 1 067 70.00% 1 067
Dutch Civil Code. 1.2.3 AMOUNTS DUE FROM MCA
M. Couto Alves Kenya Limited 70.00% 605 70.00% 605
COMPANIES
These mentioned accounting principles are disclosed in 19 436 371 19 436 371
Note 2 of the Consolidated Financial Statements, unless Amounts due from MCA companies are stated initially at
stated otherwise bellow. fair value and subsequently at amortized cost, using the
effective interest rate, less impairments.
The financial statements are presented in Euro since this is
the main currency of the Company’s operations.
1.2.4 AMOUNTS DUE TO MCA COMPANIES
The attached financial statements were prepared for
appreciation and approval at the General Shareholders Amounts due to MCA companies are stated initially at
Meeting. The Company’s Board of Directors believes that fair value and subsequently at amortized cost, using the
they will be approved without amendment. effective interest rate.

1.2 MAIN ACCOUNTING POLICIES

The main accounting policies adopted in the preparation

of the Company’s financial statement, different than the
ones disclosed on the notes to the consolidated financial
statements, were as follows:

1.2.1 FINANCIAL INVESTMENTS IN MCA

COMPANIES

Financial investments in MCA companies are carried at

cost.

Where there is a permanent diminution in the value of

an investment in a MCA company, the net book value

Integrated Report 2023 Part II – Financial Statements 2. Company Financial Information 159
As of 31st December 2023 and 2022, and in the years then With regard to M. Couto Alves, S.A., the Company
ended, the summary financial information of the most carried out an impairment analysis of the respective
relevant MCA companies was as follows: financial investment carrying amount as of 31st December
2023, concluding that there was no impairment.
2023
M. Couto Alves Corporate M. Couto Alves, MCA2 Sustainability, This impairment analysis was performed using the
M. Couto Alves, S.A.
Services, S.A. SGPS, S.A. S.A. discounted cash-flow method over the expected business
Financial Position activities of M. Couto Alves, S.A. and M. Couto Alves,
Current assets 89 425 883 11 426 995 1 614 262 43 538 600
SGPS, S.A. for the near future. Considering the projects
already ongoing during 2023 and the expected results
Non‐current assets 40 158 634 1 952 168 3 017 638 1 272 416
thereof (in particular with regards to the “Solar Project
Current liabilities 88 850 123 11 902 829 2 239 072 9 584 912 Angola” and “Angola Rural Electrification Project” – see
Non‐current liabilities 14 265 235 420 021 10 736 037 151 772 Note 25. of the Notes to the Consolidated Financial
Equity:
Statements), by the end of 2023 the equity of these
companies will continue higher than the Company’s
Share capital and reserves 26 561 712 906 339 (8 386 182) 1 838 692
financial investment carrying amount.
Net income / (expense) (92 553) 149 975 42 973 33 235 640
26 469 159 1 056 314 (8 343 210) 35 074 332 The Board of Directors expectation is that the subsidiary
activities will be able to strengthen its performance and
achieve a more solid financial structure in the short term,
Income Statement
thus no impairment was recognized as of 31st December
Income 47 053 699 11 722 883 1 784 873 48 089 440 2023.
Expenses 47 146 252 11 572 908 1 741 900 14 853 800
NET INCOME / (EXPENSE) (92 553) 149 975 42 973 33 235 640
The Company’s Board of Directors believes that the value
at which the financial investments in MCA companies
are recorded in the statement of financial position is fully
2022 realizable.
M. Couto Alves Corporate Services, M. Couto Alves, SGPS,
M. Couto Alves, S.A.
S.A. S.A. See Appendix A of the Consolidated Financial Statements
Financial Position for an overview of the most important directly and
Current assets 106 787 981 10 400 229 1 577 798 indirectly held MCA companies.
Non‐current assets 46 834 179 1 667 939 1 077 225
Current liabilities 98 103 054 10 722 288 1 313 350
Non‐current liabilities 8 957 394 439 542 -
Equity:
Share capital and reserves 54 544 450 143 544 1 282 189
Net income / (expense) (7 982 738) 762 795 59 484
46 561 712 906 339 1 341 673

Income Statement
Income 120 130 589 9 626 991 1 698 063
Expenses 128 113 327 8 864 196 1 638 580
NET INCOME / (EXPENSE) (7 982 738) 762 795 59 484

Integrated Report 2023 Part II – Financial Statements 2. Company Financial Information 160
3. OTHER DEBTORS 4. OTHER CURRENT ASSETS

As of 31st December 2023 and 2022, the non-current As of 31st December 2023 and 2022, the current assets
assets under the caption “Other debtors” was detailed as under the caption “Other current assets” was detailed as
follows: follows:

2023 2022 2023 2022

Description Book value Book value Description Book value Book value
NON CURRENT ASSETS Current assets
Other debtors Accrued income - Interest receivable 8 161 11 442
Loans to affiliated companies 8 161 11 442
MCA Uganda Limited - 15 000
MCA – HealthCare, Unipessoal Lda 47 785 47 785
5. CASH AND CASH EQUIVALENTS
M. Couto Alves, SGPS, S.A. 5 000 5 000
M. Couto Alves - Real Estate, S.A. 58 733 58 733 The information relating to the item of “Cash and cash
M. Couto Alves Kenya Limited 15 000 15 000 equivalents” with reference to 31st December 2023 and
State and Public Sector - -
2022 can be analysed as follows:
Others 14 000 14 000
2023 2022
140 518 155 518
Description Book value Book value
CURRENT ASSETS
Bank deposits and cash in hand
Other debtors
Bank deposits 229 356 98 904
Dividends receivable from subsidiaries
229 356 98 904
M. Couto Alves, S.A. 5 000 000 -
MCA2 Sustainability, S.A. 20 000 000 - The item “Cash and cash equivalents” include short-term
State and Public Sector 3 329 34 812 bank deposits with original maturity equal to or less than
25 003 329 34 812
three months, for which the risk of alteration of value
is insignificant. The value at which this MCA of assets is
recorded is close to its fair value.

As of 31st December 2023 and 2022, there were no

amounts recorded under the item “Cash and cash
equivalents” not immediately available, since they were
blocked, given as guarantee, being pledged, captive or held
under finance contracts entered into with third parties.

Integrated Report 2023 Part II – Financial Statements 2. Company Financial Information 161
6. SHARE CAPITAL AND RESERVES The share capital of M. Couto Alves Holding B.V. as at As of 31st December 2023 and 2022, the reconciliation of
31st December 2023 and 2022, fully subscribed and paid the Company’s standalone and consolidated equity and
SHARE CAPITAL up, amounted to 10,000,000 Euro plus 19,412 (nineteen result was detailed as follows:
thousand, four hundred and twelve Euro) in 2023 and
The share capital of M. Couto Alves Holding B.V. as at 31st 9,246,267 Euro (nine million, two hundred and forty six Reconciliation of the equity 2023 2022
December 2023 and 2022, fully subscribed and paid up, thousand, two hundred and sixty seven Euro) in 2022, of Group equity 60 731 667 37 735 433
amounted to 10,000,000 Euro, and was represented by share premium.
Non-controlling interests 3 437 579 5 770 791
10,000,000 shares (all authorised) with a nominal value of
1 Euro each. During 2023, the main Shareholder performed the Equity attributable to the shareholders: 57 294 088 31 964 642
following movements in the “Share capital” and “Share Negative/(Positive) equity of subsidiaries:
premiums”: M. Couto Alves, S.A. (5 394 835) (4 755 251)
SHARE PREMIUMS
M. Couto Alves Corporate Services, S.A. (856 339) (93 544)
· The nominal value of each class A share in the
As a consequence of the restructuring process capital of the Company was increased from EUR M. Couto Alves - Real Estate, S.A. 8 390 (1 048 641)
accomplished on October 2018, MCA Holding issued 1 to EUR 1.9261586, resulting in the total issued MCA2 Sustainability, S.A. 15 181 126 -
10,000,000 (ten million) new shares to Shareholders. In and outstanding share capital of the Company being M. Couto Alves, SGPS, S.A. 13 867 606 2 556 417
exchange the Shareholders transferred the full legal and increased by EUR 9,226,855.05 (“Capital Increase
Other subsidiaries (36 956) 3 705
beneficial right, title and interest in all shares held by them Amount”), which amount was charged to the share
in the share capital of M. Couto Alves, S.A. (“MCA PT”) to premium reserve. Total Negative/(Positive) equity of subsidiaries: 22 768 993 (3 337 314)
MCA Holding BV by way of a non-cash contribution (see Other differences:
Note 0.). · Subsequently, the nominal value of the class A shares Effects on the equity of subsidiaries of distributed dividends (35 000 000) -
in the capital of the Company was reduced from
Total Other differences: (35 000 000) -
In accordance with Section 2:204b of the Dutch Civil EUR 1.9261586 to EUR 1, resulting in a reduction of
Code, the management board of MCA Holding has the issued capital of the Company in the aggregate Total Reconciliation items of the net result: (3 066 942) (12 161 321)
prepared a written description of MCA PT Shares. The amount of EUR 9,226,855.05 (“Capital Reduction COMPANY’S EQUITY 41 996 138 16 466 007
total value of MCA PT Shares has been set at 15,246,268 Amount”), and the repayment of the Capital
Euro (fifteen million, two hundred and forty six thousand, Reduction Amount to the sole holder of the class
two hundred and sixty eight Euro). A shares of the Company. By the end of the year Reconciliation of the net result 2023 2022
2023, from the reduced amount, MCA had already Group net result for the year 35 768 575 13 123 497
To the extent that the value of MCA PT Shares exceeded reimbursed its shareholder with 6,500,000, with the Non controlling interests net result for the year (2 055 354) 1 149 592
the amount of share capital issued (10,000,000 Euro), the remaining balance still outstanding in the “Suppliers Result attributable to the shareholders 37 823 929 11 973 905
balance, of 5,246,268 Euro (five million, two hundred and and sundry creditors” category.
forty six thousand, two hundred and sixty eight Euro), Negative/(Positive) result of subsidiaries:
constitutes share premium and was added pro rata parte M. Couto Alves, S.A. (364 980) (2 589 472)
to the separate share premiums reserve which MCA LEGAL RESERVES M. Couto Alves Corporate Services, S.A. (149 975) (715 210)
Holding BV maintains for the benefit of its Shareholders. M. Couto Alves - Real Estate, S.A. 104 908 1 110 994
As of 31st December 2023 and 2022, the Company did not
During 2020, the main Shareholder performed a voluntary have any legal reserves. None of the provisions under articles MCA2 Sustainability, S.A. (32 410 766) 181 126
capital contribution (share premium contribution), in 2:67a sub 2, 2:67a sub 3, 2:94a sub 6 under f, 2:365 sub 2, M. Couto Alves, SGPS, S.A. (5 248 514) (10 193 074)
cash, for the amount of 2,500,000 Euro, for which the 2:389 sub 6, 2:389 sub 8, 2:390, 2:401 sub 2 and 2:423 sub 4, Other subsidiaries 2 374 44 314
respective Share Premium Contribution Agreement was were applicable as of that date. Total Negative/(Positive) result of subsidiaries (38 066 942) (12 161 321)
signed.
The differences between the Company’s standalone and Other differences:
During 2021, the main Shareholder performed a voluntary the consolidated equity and result are explained solely by Dividends from subsidiaries (Note 10.) 35 000 000 -
capital contribution (share premium contribution), in the fact that the Company in its standalone accounts does Total Other differences: 35 000 000
cash, for the amount of 1,499,999 Euro, for which the not account its investments using the equity method, but COMPANY’S RESULT FOR THE YEAR 34 756 987 (187 416)
respective Share Premium Contribution Agreement was rather the cost method. In this sense, the contribution
signed. This explains the increase in “Share premiums” in that these MCA companies have in the consolidated
2021, when compared to 2020. accounts are not transposed to the standalone accounts.

Integrated Report 2023 Part II – Financial Statements 2. Company Financial Information 162
7. LOANS 8. SUPPLIERS AND SUNDRY CREDITORS

The amounts related to loans as of 31st December 2023 As of 31st December 2023 and 2022, the item “Suppliers
and 2022 were as follows: and sundry creditors” refers to amounts payable third-
party supplies and services (namely specialized works)
Description Related party
Date of
2023 2022
incurred by the Company.
maturity
Manuel António Couto Alves Shareholder On demand - 77 974 2023 2022
M. Couto Alves - Marina de Gaia, Lda. Group company On demand 150 50 150 Description Book value Book value
M. Couto Alves, S.A. Group company On demand - 3 048 674 Current liabilities
150 3 176 798 Suppliers and sundry creditors
Associates and shareholders
These loans obtained from the Shareholder and from Dividends payable to shareholders 2 726 855 -
MCA companies do not bear interests. Suppliers 35 592 25 842
2 762 447 25 842
At 31st December 2023, the entries in gross debt was as
follows:

2023 Shareholder
Group
Total 9. OTHER CURRENT LIABILITIES
companies
Opening balance 77 974 3 098 824 3 176 798
As of 31st December 2023 and 2022, the item “Other
Transactions with impact on cash flow current liabilities” refers to accrued costs for third-party
Loans obtained - 180 000 180 000 supplies and services provided to the Company during
Repayments of loans (77 974) (3 278 674) (3 356 648)
2023 and 2022, respectively.
(77 974) (3 098 674) (3 176 648)
CLOSING BALANCE - 150 150 10. OTHER OPERATING INCOME

Other operating income for the years ended on 31st

December 2023 and 2022 can be analysed as follows:

2023 2022
Other income
Dividends income
M. Couto Alves, S.A. 20 000 000 -
MCA2 Sustainability, S.A. 15 000 000 -
Other income - 5 158
35 000 000 5 158

Integrated Report 2023 Part II – Financial Statements 2. Company Financial Information 163
11. THIRD-PARTY SUPPLIES AND 13. FINANCIAL INSTRUMENTS
SERVICES

Third party supplies and services for the years ended on CATEGORIES OF FINANCIAL INSTRUMENTS
31st December 2023 and 2022 can be analysed as follows:
Financial instruments, as of 31st December 2023 and 2022
2023 2022 were classified as follows:
Specialised works and consultancy 80 881 100 191
Financial assets
Administration and independent auditor fees 137 854 91 127
Other supplies and services 825 1 294 2023
219 561 192 612 Assets at fair
Financial Assets at fair
value through
assets value through Others non-
Financial assets Notes the other Total
recorded at the income financial assets
comprehensive
amortized cost statement
income
12. WAGES AND SALARIES
Non current assets
As of 31st December 2023 and 2022, the Company Other debtors 3 140 518 - - - 140 518
didn’t have any employee employed inside or outside the 140 518 - - - 140 518
Netherlands. Current assets
Other debtors 3 25 003 329 - - - 25 003 329
As of 31st December 2023, the Company’s Board of
Directors was comprised by two members (one person Cash and cash equivalents 5 229 356 - - - 229 356
from the Netherlands and a person from outside the 25 232 685 - - - 25 232 685
Netherlands). The Company’s Board of Directors is BOOK VALUE
25 373 203 - - - 25 373 203
represented by one man and one woman. OF FINANCIAL ASSETS

The Director’s costs related to the Dutch based Company 2022

are recognized under the “Third-party supplies and
Assets at fair
services” item. Financial
value through
Assets at fair
assets value through Others non-
Financial assets Notes the other Total
recorded at the income financial assets
In order to comply with balancing distribution of comprehensive
amortized cost statement
income
seats referred to in art. 2:166 DCC and 2:276 DCC,
the Company made efforts with IQ EQ Management Non current assets
(Netherlands) B.V. and its representative is a woman. Other debtors 3 155 518 - - - 155 518
155 518 - - - 155 518
Current assets
Other debtors 3 34 812 - - - 42 316
Cash and cash equivalents 5 98 904 - - - 98 904
133 716 - - - 141 220
BOOK VALUE
289 234 - - - 296 738
OF FINANCIAL ASSETS

Integrated Report 2023 Part II – Financial Statements 2. Company Financial Information 164
Financial liabilities The impacts on the statement of comprehensive income
resulting from the above-mentioned financial instruments
2023 can be summarized as follows:
Liabilities
Financial
at fair value Others non- 2023
liabilities
Financial liabilities Notes through financial Total
recorded at Income statement Other comprehensive income
the income liabilities
amortized cost
statement
Financial liabilities Financial expenses Financial income Fair value reserve
Current liabilities
Financial assets
Loans 7 150 - - 150
At amortized cost - - -
Suppliers and sundry creditors 8 2 762 447 - - 2 762 447
At fair value - - -
2 762 596 - - 2 762 596
- - -
BOOK VALUE OF FINANCIAL LIABILITIES 2 762 596 - - 2 762 596
Financial liabilities
At amortized cost - - -
2022
At fair value - - -
Liabilities
Financial - - -
at fair value Others non-
liabilities
Financial liabilities Notes through financial Total
recorded at
the income liabilities
amortized cost
statement 2022
Current liabilities Income statement Other comprehensive income
Loans 7 3 176 798 - - 3 176 798 Financial liabilities Financial expenses Financial income Fair value reserve
Suppliers and sundry creditors 8 25 842 - - 25 842 Financial assets
3 202 640 - - 3 202 640 At amortized cost - - -
BOOK VALUE OF FINANCIAL LIABILITIES 3 202 640 - - 3 202 640 At fair value - - -
- - -
Financial liabilities
At amortized cost - - -
At fair value - - -
- - -

Integrated Report 2023 Part II – Financial Statements 2. Company Financial Information 165
FINANCIAL RISKS Credit risk

Interest rate risk As of 31st December 2023 and 2022, the exposure of the
Company to credit risk was as follows:
During 2023 and 2022 the Company was not exposed
to interest rate risk as the loans were obtained (Note 7) 2023 2022
from related parties and didn’t have any interest. Financial assets
Cash and cash equivalents 229 356 98 904
Exchange rate risk
Other debtors 25 143 847 -
During 2023 and 2022 the Company was not exposed Book value of financial assets 25 373 203 98 904
to exchange rate risk. All of its assets and liabilities are
expressed in Euro. The Company is not exposed to any significant credit risk.

Liquidity risk
14. COMMITMENTS AND CONTINGENT
As of 31 December 2023 and 2022, the liquidity position
st
LIABILITIES
of the Company can be detailed as follows:
As of 31st December 2023 and 2022, the Company has not
2023 issued any guarantee neither is liable for any commitment
Between 1 and 3 or contingent liability (solely or jointly with its subsidiaries
< 1 year More than 3 years Undetermined Total
years or other participants).
Financial liabilities
The guarantees and commitments assumed by MCA
Loans 150 - - - 150
Group are identified in the Note 35 of the Consolidated
Suppliers and sundry creditors 2 762 447 - - 2 762 447 Financial Information.
2 762 596 - - - 2 762 596

15. SUBSEQUENT EVENTS

2022 After the close, in March 2024, the General Shareholders’

Between 1 and 3 Meeting of the subsidiary MCA2 Sustainability, S.A. met
< 1 year More than 3 years Undetermined Total
years to deliberate on the accounts of the fiscal year 2023 of
Financial liabilities this company. As a result of this General Meeting, it was
Loans 3 176 798 - - - 3 176 798
resolved to distribute dividends to MCA Holding BV in the
amount of 25 million Euros.
Suppliers and sundry creditors 25 842 - - 25 842
3 202 640 - - - 3 202 640 Additionally, to the above-mentioned, at the date of
issuance of these financial statements, there were no more
significant events have occurred after 31st December 2023
which might modify the financial statements at that date
or warrant the inclusion of additional disclosures to the
ones included in the notes to these financial statements.

Amsterdam, 23rd May 2024.

Manuel António Couto Alves

Director and Chairman of the Board of Directors

IQ EQ Management (Netherlands) B.V.

Director
Integrated Report 2023 Part II – Financial Statements 2. Company Financial Information 166
Other information · The General Meeting may resolve to make interim
distributions on Shares or distributions on Shares at
the expense of any reserve of the Company other
than a Class Reserve.
APPROPRIATION OF PROFITS
· If the Company is required by law to maintain
Pursuant to art. 2:392 sub 1 under b DCC, the provisions reserves, this authority only applies to the extent that
included in the company’s articles of association regarding the equity exceeds these reserves. No resolution of
profits and distributions can be summarized as follows: the General Meeting to distribute shall have effect
without the consent of the Management Board. The
· The Company shall maintain a share premium reserve Management Board may withhold such consent only
and a dividend reserve (such a share premium reserve if it knows or reasonably should expect that after the
and dividend reserve, jointly as well as individually: distribution, the Company will be unable to continue
a Class Reserve) for each class of Shares, for the the payment of its due debts.
exclusive benefit of the holders of Shares of the
applicable class, bearing the same letter as the
corresponding Shares. If upon or after the issuance
of Shares of a certain class more than the nominal
value of such Shares is paid, in cash or in kind, the
excess shall be considered to be share premium
for the exclusive benefit of holders of Shares of the
applicable class and shall be allocated to the applicable
Class Reserve.

· The General Meeting has the authority to make

distributions or to allocate the profits determined
by adoption of the annual accounts. If the General
Meeting does not adopt a resolution regarding
the allocation of the profits prior to or at the
latest immediately after the adoption of the annual
accounts, the profits will be reserved.

· The General Meeting may, but only at the proposal

of a Class Meeting, resolve to entirely or partially
terminate the Class Reserve of the applicable class
for the benefit of the holders of Shares of such class.
In that case, the amount up to which a Class Reserve
is terminated shall be distributed to the holders of
the applicable class concerned in proportion to the
aggregate nominal value of the Shares of such class
each of them holds, subject to the provisions of
Article 18.6.

· Termination, entirely or partially, of a Class Reserve

can only take place if and to the extent that (i) at
the same time, a proportionate part of the other
Class Reserves is terminated or (ii) the other Class
Meetings have approved the termination.

Integrated Report 2023 Part II – Financial Statements 2. Company Financial Information 167
 PART III
Appendix

Integrated Report 2023 Alterar 168

 15.
Proposal for
the appropriation
of results
The Board of Directors proposes to the Annual General
Meeting of Shareholders, that the net income in the
amount of 34,756,987 Euro arising from the Company’s
stand-alone financial statement, be transferred to retained
earnings.

Integrated Report 2023 Part III – Appendix 169

 16.
Statutory
Audit Report
The Statutory Audit Report here presented reflects the
work conducted by the Statutory Auditor based on the
original file of MCA's Integrated Report 2023, prior to the
design copy which is here presented.

Integrated Report 2023 Part III – Appendix 170

 INDEPENDENT AUDITOR’S REPORT

To: The shareholders of M. Couto Alves Holding B.V.

Report on the audit of the financial statements 2023 included in the annual report

Our opinion
We have audited the financial statements 31 December 2023 of M. Couto Alves Holding
B.V. based in Amsterdam. In our opinion, the accompanying financial statements give a true
and fair view of the financial position of M. Couto Alves Holding B.V. and the Group (the
company together with its subsidiaries) as at 31 December 2023 and of its result and its cash
flows for 2023 in accordance with International Financial Reporting Standards as adopted by
the European Union (EU-IFRS) and with Part 9 of Book 2 of the Dutch Civil Code.

The financial statements comprise:

1. the consolidated and company statement of financial position as at 31 December 2023;

2. the following statements for 2023:
the consolidated and company income statement, the consolidated and company statements
of comprehensive income, changes in equity and cash flows; and
3. the notes comprising material accounting policy information and other explanatory
information.

Basis for our opinion

We conducted our audit in accordance with Dutch law, including the Dutch Standards on
Auditing. Our responsibilities under those standards are further described in the 'Our
responsibilities for the audit of the financial statements' section of our report.

We are independent of M. Couto Alves Holding B.V. in accordance with the Wet toezicht
accountantsorganisaties (Wta, Audit firms supervision act), the Verordening inzake de
onafhankelijkheid van accountants bij assurance-opdrachten (ViO, Code of Ethics for
Professional Accountants, a regulation with respect to independence) and other relevant
independence regulations in the Netherlands. Furthermore we have complied with the
Verordening gedrags- en beroepsregels accountants (VGBA, Dutch Code of Ethics for
Professional Accountants).

We believe the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.

Londen & Van Holland Registeraccountants en Belastingadviseurs ● Pedro de Medinalaan 39 ● PO Box 37737,
1030 BG Amsterdam ● Tel. 020 - 430 74 00 ● Fax 020 - 430 74 11 ● info@[Link] ● [Link] ● KvK 34376867
Londen & Van Holland Registeraccountants en Belastingadviseurs is a partnership of private limited companies. The general terms and
conditions used by the company are applicable to all transactions and legal relationships. In these general terms and conditions a limitation of
liability is included. The general terms and conditions can be downloaded from our website.

Integrated Report 2023 Part III – Appendix Statutory Audit Report 171
 Information in support of our opinion - Significant transactions, if any, outside the normal course of business for the entity.
We designed our audit procedures in the context of our audit of the financial statements as a
whole and in forming our opinion thereon. The following information in support of our opinion We pay particular attention to tendencies due to possible interests of management. Where
was addressed in this context, and we do not provide a separate opinion or conclusion on these relevant to our audit, we evaluated the design of the internal control measures that are intended
matters. to mitigate the risk of management override of controls and assessed the implementation of the
measures in the processes of generating and processing journal entries and making estimates.
Scope of the group audit We also paid specific attention to the access safeguards in the IT systems and the possibility
M. Couto Alves Holding B.V. is at the head of a group of entities. The financial information of that lead to violations of the segregation of duties. We conclude that, in the context of our audit,
this group is included in the consolidated financial statements of M. Couto Alves Holding B.V. we could rely on the for this risk relevant measures of internal control.
Our group audit mainly focused on of risks of material misstatement at the assertion level of We evaluated key estimates and judgements for bias of management, including retrospective
the group financial statements that are associated with components. Considering our ultimate reviews of prior year 's estimates relating to this judgements and estimates. We considered the
responsibility for the opinion on the consolidated financial statements, we are responsible for outcome of our audit procedures and evaluated whether any findings or misstatements are
the direction, supervision and performance of the group audit. In this context, we have indicative of fraud.
determined the nature and extent of the audit procedures for components of the Group to ensure
that we performed enough work to be able to give an opinion on the financial statements as a Our procedures did not identify any material misstatements in the information provided by the
whole. Determining factors are the geographic structure of the Group, the significance and/or management board in the financial statements and the report of the management board
risk profile of group entities or activities, the accounting processes and controls, and the industry compared with the financial statements.
in which the Group operates. On this basis, we selected group entities for which an audit or
review of financial information or specific balances was considered necessary. We have: Our procedures did not lead to specific indications of fraud or suspicious of fraud with respect
- Performed audit procedures ourselves at the level of M. Couto Alves Holding B.V. to management override of controls.
- Instructed the component auditors to perform activities for us on the level of M. Couto
Alves, S.A., Business Center Manzanares, S.L., M. Couto Alves Vias, SA and MCA 2. Risk of fraud in revenue recognition and consolidation
Deutschland Gmbh. As in all of our audits, we addressed the risk of fraud in revenue recognition. This relates to the
- Instructed the component auditors to perform specific procedures for us on the level of presumed management incentive that exists to overstate revenue. Where relevant to our audit,
M. Couto Alves – Marina de Gaia, Lda., Enredo Diligente, Lda., M. Couto Alves we have instructed the component auditor to evaluated the design of the internal control
Corporate Services, S.A., Mainbio, S.A., Edimade II - Promoção Imobiliária S.A., and measures that are intended to mitigate the risk of fraud and error in revenue recognition and
Pralerise. assessed the effectiveness of those measures. Furthermore, a forensic specialist was involved
by the component auditor to perform inquiries to the following responsible employee within
By performing the procedures mentioned above at group entities, together with additional the group with respect to:
procedures at group level, we have been able to obtain sufficient and appropriate audit evidence - the risk and compliance department.
about the group's financial information to provide an opinion on the consolidated financial - the consolidation and accounting department.
statements.
The following information was analyzed:
Audit approach fraud risks - Risk management policy;
1. The risk of management override of controls - Code of ethics and conduct;
Management is in a unique position to perpetrate fraud because of management's ability to - Anti bribery and corruption policy;
manipulate accounting records and prepare fraudulent financial statements by overriding - Whistleblower procedures.
controls that otherwise appear to be operating effectively. The component auditor was also instructed to pay specific attention to the processes
surrounding the relevant IT systems. In addition, together with the component auditor, we also
Therefore, in our audit, we pay attention to the risk of management override of controls within: performed specific detail work on the projects that were closed at the end of the financial year
- The appropriateness of (manual) journal entries and other adjustments made in the and on the calculation and determination of the percentage of completion with regards to the
preparation of consolidation and the financial statements. projects in progress.
- Estimates.

2/7 3/7

Integrated Report 2023 Part III – Appendix Statutory Audit Report 172
 With respect to the consolidation process, we have also instructed the component auditor to Report on the other information included in the annual report
perform audit activities on the consolidation. On component level the following procedures The annual report contains other information, in addition to the financial statements and our
were performed: auditor's report thereon. Based on the following procedures performed, we conclude that the
- Test the design and implementation of the controls identified in the significant class of other information:
transactions that mitigate the risk; - is consistent with the financial statements and does not contain material misstatements;
- Test the nature of all consolidated adjustments and support the adjustments made with - contains all the information regarding the management report and the other information
the applicable normative; as required by Part 9 of Book 2 of the Dutch Civil Code.
- Compare current year adjustments with prior years adjustments;
- Compare the sum of the statutory trial balances with the individual amounts considered We have read the other information. Based on our knowledge and understanding obtained
in the consolidation process and validate 2023’s movements in equity. through our audit of the financial statements or otherwise, we have considered whether the other
Furthermore we reconciled group structure with the consolidation to make sure that the information contains material misstatements.
consolidation sheet includes the individual entities which are mentioned in the group structure. By performing these procedures, we comply with the requirements of Part 9 of Book 2 of the
Also journal entries with respect to the consolidation were repeated by us to understand the Dutch Civil Code and the Dutch Standard 720. The scope of the procedures performed is
background and nature of these entries. The trial balances of the individual entities were also substantially less than the scope of those performed in our audit of the financial statements.
reconciled with the consolidation sheet and further tests were performed to determine the
arithmetic correctness. The board of directors is responsible for the preparation of the management report in accordance
with Part 9 of Book 2 of the Dutch Civil Code and other information as required by Part 9 of
We did not identify any specific indications of fraud or suspicion of fraud in respect of revenue Book 2 of the Dutch Civil Code.
recognition.
Description of responsibilities regarding the financial statements
Audit approach going concern
Management prepared the financial statements on the assumption that the entity is a going Responsibilities of board of directors for the financial statements
concern and that it will continue its operations for the foreseeable future. Our procedures to board of directors is responsible for the preparation and fair presentation of the financial
evaluate management’s going concern assessment included, amongst others: statements in accordance with EU-IFRS and with Part 9 of Book 2 of the Dutch Civil Code.
Furthermore, board of directors is responsible for such internal control as board of directors
- Considering whether management’s going concern assessment includes all relevant determines is necessary to enable the preparation of the financial statements that are free from
information of which we are aware as a result of our audit, inquired with management material misstatement, whether due to fraud or error.
regarding management's most important assumptions underlying their going concern
assessment and considering whether management identified events or conditions that As part of the preparation of the financial statements, board of directors is responsible for
may cast significant doubt on the Company’s ability to continue as a going concern; assessing the company's ability to continue as a going concern. Based on the financial reporting
- Analyzing the financial position per balance sheet date in relation to the financial frameworks mentioned, board of directors should prepare the financial statements using the
position per prior year balance sheet date to assess whether events or circumstances going concern basis of accounting, unless board of directors either intends to liquidate the
exist that may lead to a going concern risk; company or to cease operations, or has no realistic alternative but to do so.
- Evaluating management’s current budget including cash flows in comparison with the Management should disclose events and circumstances that may cast significant doubt on the
prior year, current developments in the industry and all relevant information of which company's ability to continue as a going concern in the financial statements.
we are aware as a result of our audit; and
- Performing inquiries of management as to their knowledge of going concern risks Our responsibilities for the audit of the financial statements
beyond the period of management’s assessment. Our objective is to plan and perform the audit engagement in a manner that allows us to obtain
Our procedures did not result in outcomes contrary to management’s assumptions and sufficient and appropriate audit evidence for our opinion.
judgments used in the application of the going concern assumption.
Our audit has been performed with a high, but not absolute, level of assurance, which means
we may not detect all material errors and fraud during our audit.

4/7 5/7

Integrated Report 2023 Part III – Appendix Statutory Audit Report 173
 Misstatements can arise from fraud or error and are considered material if, individually or in We communicate with those charged with governance regarding, among other matters, the
the aggregate, they could reasonably be expected to influence the economic decisions of users planned scope and timing of the audit and significant audit findings, including any significant
taken on the basis of these financial statements. findings in internal control that we identify during our audit.

The materiality affects the nature, timing and extent of our audit procedures and the evaluation
of the effect of identified misstatements on our opinion.

We have exercised professional judgement and have maintained professional scepticism

throughout the audit, in accordance with Dutch Standards on Auditing, ethical requirements Amsterdam, May 23, 2024
and independence requirements. Our audit included among others:

- identifying and assessing the risks of material misstatement of the financial statements, With kind regards,
whether due to fraud or error, designing and performing audit procedures responsive to those
risks, and obtaining audit evidence that is sufficient and appropriate to provide a basis for Londen & Van Holland
our opinion. The risk of not detecting a material misstatement resulting from fraud is higher Registeraccountants en Belastingadviseurs
than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control;
- obtaining an understanding of internal control relevant to the audit in order to design audit
drs. K.J. Schouten RA
procedures that are appropriate in the circumstances, but not for the purpose of expressing Was signed
an opinion on the effectiveness of the entity's internal control;
- evaluating the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by board of directors;
- concluding on the appropriateness of management's use of the going concern basis of
accounting, and based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the company's ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor's report to the related disclosures in the financial
statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor's report. However, future
events or conditions may cause a company to cease to continue as a going concern.
- evaluating the overall presentation, structure and content of the financial statements,
including the disclosures; and
- evaluating whether the financial statements represent the underlying transactions and events
in a manner that achieves fair presentation.

Because we are ultimately responsible for the opinion, we are also responsible for directing,
supervising and performing the group audit. In this respect we have determined the nature and
extent of the audit procedures to be carried out for group entities. Decisive were the size and/or
the risk profile of the group entities or operations. On this basis, we selected group entities for
which an audit or review had to be carried out on the complete set of financial information or
specific items.

6/7 7/7

Integrated Report 2023 Part III – Appendix Statutory Audit Report 174
 17.
GRI Report

Integrated Report 2023 Part III – Appendix 175

 GRI STANDARD DESCRIPTION LOCATION/TOPIC/OMISSION REPORT

1 FOUNDATION

Statement of use MCA has reported in accordance with the GRI Standards, concerning the period of 1 January 2023
- 31 December 2023.

GRI 1 used GRI 1_ Foundation 2021

2 GENERAL
DISCLOSURES

2/1 The organisation and

its reporting practices

2-1 Organisational details CHAPTER 1. "ABOUT MCA"

CHAPTER 1.5. "CORPORATE GOVERNANCE MODEL"

M. Couto Alves Holding B.V. with head office at Hoogoorddreef 15, Amsterdam,The Netherlands
(“MCA Holding”) was incorporated on 12th December 2017 and has the registration number
70291457 with the Dutch Chamber of Commerce.

MCA Holding activity consists in the management of financial holdings and, together with its
subsidiaries, branches and affiliates (collectively, “MCA” or “Company”), have as its principal
activities the Development, Engineering, Procurement, Construction and Operation of projects in
the Energies, Urban Development, Infrastructures and Healthcare business verticals.

MCA has operations in 3 main clusters: Iberia, Central Europe and Africa.

For more information regarding the Group Companies, refer to the Consolidated Financial Information.

2-2 Entities included in CHAPTER 12. "ABOUT THIS REPORT"

the organisation’s
sustainability reporting This report includes all subsidiaries of MCA Group. Some data refers to a specific scope of group
companies, which are duly identified whenever applicable.

For more information regarding the Group Companies, refer to the Consolidated Financial Information.

2-3 Reporting period, CHAPTER 12. "ABOUT THIS REPORT"

frequency and contact
point MCA intends to publish an Integrated Report containing sustainability information
on an annual basis.
This report covers the period from 1 January to 31 December 2023.
For information about the Report:

GENERAL
+351 253 520 900
[Link]

Hoogoorddreef 15
1101 BA Amsterdam – Netherlands
or
Rua João Oliveira Salgado 385
4810-015 Costa – Guimarães – Portugal

JOÃO PEDRO PEREIRA

Head of Strategy, M&A and Sustainability
[Link]@[Link]

MARIA COUTO ALVES

Head of Corporate Responsibility and Communication
[Link]@[Link]

2-4 Restatements Any changes in relation to the previous year are stated throughout the report,
of information if and when applicable.

Integrated Report 2023 Part III – Appendix GRI Report 176

GRI STANDARD DESCRIPTION LOCATION/TOPIC/OMISSION REPORT GRI STANDARD DESCRIPTION LOCATION/TOPIC/OMISSION REPORT

2-5 External assurance CHAPTER 12. "ABOUT THIS REPORT" Permanent and temporary employees and service providers, by region:

MCA’s Financial Statements have been submitted to an independent, certified assessment Contract
Region 2021 2022 2023
by its Statutory Auditor, whose report is available in Chapter “Statutory Audit Report” Type
of this document. Permanent Iberia 163 169 213
Employees
Regarding Non-Financial Information, we continue to work on evolving the quality of the Central Europe 0 0 7
information provided and voluntarily disclose a large amount of information, in order to ensure
LatAm 2 0 0
alignment with the <IR> and GRI. As this process matures, we will seek to submit non-financial
information to an independent entity for assessment in the future. Africa 159 175 162
Total 322 344 382
2/2 ACTIVITIES AND WORKERS
Temporary Iberia 137 90 91
2-6 Activities, value chain CHAPTER 1. “ABOUT MCA” Employees
and other business Central Europe 0 1 0
relationships CHAPTER 3. “SUSTAINABLE STRATEGY”
LatAm 2 0 0
2-7 Employees Total number of employees, by gender: Africa 590 612 792

Employees 2021 2022 2023 Total 729 703 883

Female 131 174 241 Service Providers Iberia 4 8 14

924 882 1 024 Central Europe 0 0 1

Male
TOTAL 1 055 1 056 1 265 LatAm 0 0 0
Africa 0 1 2
Total number of employees, by region: Total 4 9 17
Employees 2021 2022 2023 2-8 Workers who are not Total number of workers who are not employees, by gender:
employees
Iberia 304 267 304 Workers who are not employees 2021 2022 2023
Central Europe 0 1 7
Female 0 3 0
LatAm 2 0 0
Male 96 16 16
Africa 749 788 954 TOTAL 96 19 16
TOTAL 1 055 1 056 1 265
Total number of workers who are not employees, by region:
Permanent, temporary and service providers, by gender:
Workers who are not employees 2021 2022 2023
Contract Type Gender 2021 2022 2023
Iberia 96 19 16
Permanent Employees Female 46 68 81 Central Europe 0 0 0
Male 276 276 301 LatAm 0 0 0
Total 322 344 382 Africa 0 0 0
Temporary Employees Female 85 105 160 TOTAL 96 19 16
Male 644 598 723 The most common types of workers are self-employed and temporary workers hired through temporary
employment agencies (only recorded from 2021 onwards). We do not distinguish between trainees and other
Total 729 703 883 employees, and we do not keep track of the number of subcontractors, so they are not included in this analysis.
Service Provider Female 0 1 1
Male 4 8 16
Total 4 9 17

Integrated Report 2023 Part III – Appendix GRI Report 177

GRI STANDARD DESCRIPTION LOCATION/TOPIC/OMISSION REPORT GRI STANDARD DESCRIPTION LOCATION/TOPIC/OMISSION REPORT

2/3 GOVERNANCE 2-18 Evaluation of the MCA intends to keep this information confidential for now, as disclosure is not legally required.
performance of the We will assess potential disclosure of this information in the future.
2-9 Governance structure CHAPTER 1.5. “CORPORATE GOVERNANCE MODEL” highest governance body
and composition
2-19 Remuneration policies
2-10 Nomination and CHAPTER 1.5. “CORPORATE GOVERNANCE MODEL”
selection of the highest 2-20 Process to determine
governance body Members of the Board of Directors are defined by the Shareholder, and should be composed of remuneration
between 5 and 12 directors. The Board of Directors includes members with executive functions
and members without executive functions. 2-21 Annual total
compensation ratio
The Chairman of the Board of Directors is elected by the Shareholder.
2/4 STRATEGY, POLICIES
MCA aims to promote a meritocratic approach to its leadership, with the elected Board of AND PRACTICES
Directors being composed of professionals with strong track-record in diverse areas of activity and
with a solid background and exposure to operations in different geographies and business sectors. 2-22 Statement on “MESSAGE FROM THE CHAIRMAN”
Diversity should come as a consequence of a meritocratic selection, whilst ensuring the sustainable development
appropriate representation in terms of gender, age and social background. strategy

2-11 Chair of the highest CHAPTER 1.5. “CORPORATE GOVERNANCE MODEL” 2-23 Policy commitments Several policies are in place and better described throughout this report, namely the Sustainability
governance body Policy, Code of Ethics & Conduct, Human Rights Policy, Social Impact Policy, Risk Management
The Board of Directors is the Company’s highest decision-making body. A new Board of Directors Policy, Anti-Corruption and Bribery Policy.
was elected for the 2023-2024 term in early 2023, which is chaired by Manuel Couto Alves.
2-24 Embedding policy The Risk Management, Compliance and Cybersecurity department, the Health, Safety, Environment
2-12 Role of the highest CHAPTER 1.5. “CORPORATE GOVERNANCE MODEL” commitments and Quality department, and the Legal & DPO department are responsible for ensuring that all
governance body MCA policies are updated and complied with.
in overseeing the Excluding matters whose responsibility is exclusively of the Shareholders, the Board of Directors
management of impacts is the Company’s highest decision-making body, with the broadest management and representation MCA seeks to improve employee knowledge of Ethics & Compliance issues. During 2023,
powers, being able to deliberate on any matter of the Company’s management and perform all a total of 738 employees (58% of all employees) had received training in this area by the
acts related to the corporate purpose that do not fall within the competence of others corporate end of 2023, i.e. 17 p.p. more than in the previous year.
bodies. The Board of Directors may, under the terms and with the limits established in the
applicable legal and statutory provisions, delegate powers to specialised, permanent or temporary Additionally, we seek to ensure that our commitments are passed along the supply chain, by
committees. including clauses in contracts with suppliers and references to our Code of Ethics & Conduct.

Established Committees at MCA include the Audit Committee, Investment Committee, 2-25 Processes to remediate CHAPTER 4. “RISK MANAGEMENT & COMPLIANCE”
Sustainability Committee and Ethics & Conduct Committee. negative impacts

2-13 Delegation of CHAPTER 1.5. “CORPORATE GOVERNANCE MODEL” 2-26 Mechanisms for seeking CHAPTER 4. “RISK MANAGEMENT & COMPLIANCE”
responsibility for advice and raising
managing impacts CHAPTER 4. “RISK MANAGEMENT & COMPLIANCE” concerns The Code of Ethics & Conduct includes a Q&A section that provides useful tips on how to
interpret and apply the code on a daily basis.
2-14 Role of the highest The highest governance body is responsible for reviewing and approving reported information. The
governance body in department responsible for Sustainability issues (Strategy, M&A and Sustainability) reports directly We have produced a “Speak up” procedure and set up an online whistleblowing channel, designed
sustainability reporting to the Chairman of the Board of Directors, which approves material issues for the organization. such as to guarantee the confidentiality (or even anonymity) of reporters and increase reporting
effectiveness. The whistleblowing channel can be accessed through the following link:
2-15 Conflicts of interest CHAPTER 4. “RISK MANAGEMENT & COMPLIANCE” Whistleblower Software.

2-16 Communication of CHAPTER 4. “RISK MANAGEMENT & COMPLIANCE” The whistleblowing channel allows the communication of practices, irregularities or situations
critical concerns that do not comply with integrity, ethics and transparency, in accordance with best management
practices aligned with current legislation in the geographies where MCA has its activity.
2-17 Collective knowledge of Sustainability workshops and training were provided to several MCA employees during 2023 with
the highest governance the production of MCA’s first Integrated Report, and whose contents were shared with MCA’s 2-27 Compliance with laws CHAPTER 4. “RISK MANAGEMENT & COMPLIANCE”
body highest governance body. and regulations
No significant fines, understood as amounts higher than 25,000 euros (equivalent to c.0.01% of
The Sustainability Committee is currently presided by a Non-Executive member of the Board of company revenues), were applied in 2021-2023.
Directors (highest governance body), having received relevant updates during the year regarding
sustainability best-practices and regulation. 2-28 Membership CHAPTER 3.4. “COLLABORATION WITH ASSOCIATIONS”
associations
MCA is a member of several industry associations and sustainability associations.

Integrated Report 2023 Part III – Appendix GRI Report 178

GRI STANDARD DESCRIPTION LOCATION/TOPIC/OMISSION REPORT GRI STANDARD DESCRIPTION LOCATION/TOPIC/OMISSION REPORT

2/5 STAKEHOLDER 200 ECONOMIC

ENGAGEMENT
ECONOMIC
201
2-29 Approach to CHAPTER 3.1. “OUR BEACON OF SUSTAINABILITY” PERFORMANCE
stakeholder
engagement CHAPTER 3.3. “STAKEHOLDER ENGAGEMENT” 201-1 Direct economic EVG&D (€) 2021 2022 2023
value generated and
Engagement with stakeholders is key to the achievement of MCA’s strategy. We maintain a regular distributed 1. Revenues 262 422 597.00 231 481 067.00 217 264 342.00
relationship and dialogues that allow us to identify and manage strategic sustainability aspects that
have an impact on society and our business. 2. Total Direct economic 262 422 597.00 231 481 067.00 217 264 342.00
value generated (1)
We seek to have engagement strategies and communication channels suitable for each stakeholder.
3. Operating costs 235 212 027.00 194 872 829.00 151 111 067.00
The involvement of MCA’s stakeholders is a key step in the materiality assessment since it is
through an active engagement with those who contribute to MCA’s strategy, and those who 4. Employee wages 18 607 248.00 18 154 451.00 22 145 700.00
are impacted by our strategy that we are able to understand what are the key topics that have a and benefits
material impact in MCA and its ecosystem.
5. Payments to providers 2 174 790.00 2 347 525.00 1 368 064.00
Through the auscultation of our internal stakeholders, we identified our key internal and external of capital
stakeholders, shown in the table below, with whom MCA aims to ensure regular and effective
communication channels. 6. Total Payments 2 694 717.69 2 621 833.00 2 010 944.16
to governments
One of these channels was precisely the involvement in a questionnaire in order collect their
feedback regarding material topics. [Link] investments 42 600.00 2 056 000.00 545 226.00

The input of our stakeholders (internal and external) and the insight of the MCA Sustainability 8. Economic value distributed
Team into the topics involved led to the definition of material topics which were categorized (3+4+5+6+7) 258 731 382.69 220 052 365.00 177 181 001.16
according to our Sustainability Axes, and mapped our on a double materiality matrix.
[Link] VALUE 3 691 214.32 11 428 702.00 40 083 340.84
RETAINED (2-8)
2-30 Collective bargaining 2021 2022 2023
Agreements
Employees covered by collective 201-2 Financial implications MCA has started to evaluate its risks and opportunities associated to climate change in 2022,
bargaining agreements (%) 16% 13% 17%
and other risks and inspired by TCFD. The company will report on these matters once it has been able to fully evaluate
opportunities due to the associated financial implications.
100% of the employees of subsidiaries MCA SA, MCA PSS, Lexivarius, MainBio are covered by collective climate change
bargaining agreements.
201-3 Defined benefit plan MCA currently does not have employees covered by Retirement Plans.
3 MATERIAL TOPICS obligations and other
retirement plans
3-1 Process to determine CHAPTER 3.1. “OUR BEACON OF SUSTAINABILITY”
material topics 201-4 Financial assistance Portugal 2021 2022 2023
In 2022, building up to the development of MCA’s first Integrated Report which was published in received from
3-2 List of material topics 2023, we conducted a materiality assessment in order to understand what were the key topics government Tax relief and tax credits (€) 1 515 526.21 1 123 518.84 -
affecting the organization’s ability to create value over time.
3-3 Management of TOTAL MONETARY
material topics Aligned with best-practices, we decided to maintain our materiality assessment unchanged this VALUE OF FINANCIAL 1 515 526.21 1 123 518.84 -
year. Firstly, because we believe it is important to provide some stability to the assessed topics, and ASSISTANCE
secondly, because we would not expect a significant change in topics within this time-period. RECEIVED (€)

The involvement of MCA’s stakeholders is a key step in the materiality assessment since it is 2023 value has not yet been closed since it depends on applications for tax incentive schemes carried out
through an active engagement with those who contribute to MCA’s strategy, and those who during 2024.
are impacted by our strategy that we are able to understand what are the key topics that have a
material impact in MCA and its ecosystem.

Through the auscultation of our internal stakeholders, we identified our key internal and external
stakeholders, shown in the table below, with whom MCA aims to ensure regular and effective
communication channels.

One of these channels was precisely the involvement in a questionnaire in order collect their
feedback regarding material topics.

The input of our stakeholders (internal and external) and the insight of the MCA Sustainability
Team into the topics involved led to the definition of material topics which were categorized
according to our Sustainability Axes, and mapped our on a double materiality matrix.

Integrated Report 2023 Part III – Appendix GRI Report 179

GRI STANDARD DESCRIPTION LOCATION/TOPIC/OMISSION REPORT GRI STANDARD DESCRIPTION LOCATION/TOPIC/OMISSION REPORT

202 MARKET PRESENCE 300 ENVIRONMENT

202-1 Ratios of standard Ratio of lowest wage to local minimum wage 2021 2022 2023 301 MATERIALS
entry level wage by
Gender compared to Portugal Local Minimum wage (€) 665.00 705.00 760,00 301-1 Materials used by Materials Used 2021 20221 2023
local minimum wage weight or volume
Female 100% 121% 118% Non-recycled 44 205 24 744 32 814
Lowest wage (%) materials used (ton)
Male 100% 121% 118%
Recycled materials used (ton) 0 287 3 682
Angola Local Minimum wage (AOA) 21 454.00 32 181.20 40 226,00
TOTAL MATERIALS USED (TON) 44 205 25 031 36 496
Female 219% 173% 154%
Lowest wage (%) Non-recycled materials include raw materials (bituminous, filler, powder and among others) and associated
Male 206% 173% 154% process materials used for the production of bituminous and biodiesel.
Recycled materials include technical oleins for biodiesel production.
Spain Local Minimum wage (€) 965.00 1 000.00 1 080.00 1
2022 was adjusted to include 287 ton of recycled raw materials associated with the production of Advanced
Female 222% 214% 204% Biodiesel. In 2023, both recycled and non-recycled materials used for the production of Advanced Biodiesel
Lowest wage (%) were included.
Male 222% 214% 204%
301-2 Recycled input 2021 20221 2023
Germany Local Minimum wage (€) 1 602.00 1 739.00 1 997.00 materials used
Percentage of recycled 0% 1.2% 11.2%
input materials used (%)
Female - - 230%
Lowest wage (%) 1
2022 was adjusted to include 287 ton of recycled raw materials associated with the production of Advanced
Male - - 209% Biodiesel. In 2023, both recycled and non-recycled materials used for the production of Advanced Biodiesel
were included.
We considered the “lowest wage” rather than the “entry level wage”. MCA considers “significant locations of
operation” the countries where it operates. 301-3 Reclaimed products MCA’s products do not require packaging.
and their packaging
In 2023, MCA started operating in Germany. materials
A correction was made to the 2021 and 2022 values of the minimum wage in Spain, which in the 2022 302 ENERGY
Integrated Report considered the value adjusted to twelve-month payments.
302-1 Energy consumption CHAPTER 7.2. “PROMOTING ENERGY EFFICIENCY IN OPERATIONS AND FACILITIES”
202-2 Proportion of senior MCA’s organisational structure is global, and is not divided by geographies, therefore members within the organization
Management hired from cannot be classified according to their local community. We have a corporate center whose Fuel from non-renewable sources consumed within the organization:
the local community senior management is mostly based in Portugal, and which supports all 4 business verticals and 3
geographical clusters. Fuel from non-
renewable sources
2021 2022 2023
MCA, on the other hand, hires locally, with 96% of its staff employed locally in 2023. consumed within the
organisation
205 ANTICORRUPTION
Diesel (kWh) 40 716 204.12 38 804 180.90 24 578 673.79
205-1 Operations assessed CHAPTER 4. “RISK MANAGEMENT & COMPLIANCE”
for risks related to Gasoline (kWh) 164 934.00 115 207.33 145 616.38
corruption MCA has developed a Plan for the Prevention of Risks of Corruption and Related Infractions
(PPR), which identifies the risks of corruption for MCA based on its businesses. MCA’s exercise to Heating Gasoil (kWh) 1 028 030.84 845 016.00 868 705.86
identify risks of corruption and related infractions considered inputs from internal workshops held,
document review of policies, procedures and internal rules and other support instruments, as well Fuel Oil (kWh) 3 157 159.95 1 527 825.24 1 957 177.60
as the analysis of the concrete organisational and operational context of the company.
TOTAL (KWH) 45 066 328.91 41 292 229.47 27 550 174.63
205-2 Communication CHAPTER 4. “RISK MANAGEMENT & COMPLIANCE” Subsidiaries included: MCA SA, MCA PSS, MCA Vias (2021); MCA SA, MCA PSS, MCA Marina de Gaia,
and training about Edimade, MCA Vias, BCM (2022). MCA SA, MCA PSS, MCA Marina de Gaia, Edimade, MCA Vias, BCM,
Anticorruption policies 58% of the employees received communication and training about anti-corruption procedures MainBio (2023). Source of the conversion factors used: GHG protocol
and procedures and policies adopted by the organization during 2023. 80% of the new business partners received
communication about anti-corruption procedures and policies adopted by the organisation.

205-3 Confirmed incidents of CHAPTER 4. “RISK MANAGEMENT & COMPLIANCE”

corruption and actions
taken No corruption incidents were confirmed within the organisation in 2023 (zero incidents).

Integrated Report 2023 Part III – Appendix GRI Report 180

GRI STANDARD DESCRIPTION LOCATION/TOPIC/OMISSION REPORT GRI STANDARD DESCRIPTION LOCATION/TOPIC/OMISSION REPORT

Fuel from renewable sources consumed within the organization: 302-2 Energy consumption MCA currently does not have access to energy consumption outside the Organisation.
outside of the
Fuel from renewable Organisation
sources consumed 2021 2022 2023
within the organisation 302-3 Energy intensity CHAPTER 7.2. “PROMOTING ENERGY EFFICIENCY IN OPERATIONS AND FACILITIES”

Biomass (kWh) - 1 147 249.50 653.94 Energy intensity 2021 2022 2023

TOTAL (KWH) - 1 147 249.50 653.94 Total electricity consumed 105.64 313.55 364.01
within the organisation (toe)
Subsidiaries include: Mainbio (2022 and 2023)
Source of the conversion factors used: GHG protocol Revenue (€)1 254 348 695 220 637 615 190 672 664
Note: Boiler of Advanced Biodiesel Plant was converted to natural gas during 2023.
Energy Intensity Ratio 0.42 1.42 1.91
Electricity, heating, cooling and steam purchased for consumption: 1
The revenue presented refers exclusively to the subsidiaries for which electricity consumption was reported.
Types of energy included in the intensity ratio: Electricity
Electricity, heating, Subsidiaries included: MCA SA, MCA PSS, MCA Vias, BCM, Mainbio (2021); MCA SA, MCA PSS, MCA
cooling and steam 2021 2022 2023 Marina de Gaia, Edimade, Mainbio, MCA Vias, BCM (2022); MCA SA, MCA PSS, MCA Marina de Gaia,
purchased for Edimade, Mainbio, MCA Vias, BCM, MCA CS (2023)
consumption
302-4 Reduction of energy CHAPTER 7.2. “PROMOTING ENERGY EFFICIENCY IN OPERATIONS AND FACILITIES”
Electricity consumption 364 270.65 1 081 207.00 1 693 092.00 consumption
(kWh)1 The energy efficiency initiatives implemented at MCA do not involve the monitoring of energy
consumption. However, the Company has implemented several initiatives, as described in the report.
Heating (kWh)2 0 0 1 566 838.92
302-5 Reductions in energy MCA has been implementing initiatives to optimize the consumption of natural resources and fossil
TOTAL (KWH) 364 270.65 1 081 207.00 3 259 930.92 requirements of energy, some of which can directly or indirectly affect the energy requirements associated with
1
The percentage of electricity supplied under renewable energy contracts was 82%, which compares to c.9% products and services products and services. Specific monitorization of energy requirements for products and services as
in 2022. well as establishment of reduction targets is yet to be conducted.
2
Boiler of Advanced Biodiesel Plant was converted to natural gas during 2023.
303 WATER AND
Subsidiaries included: MCA SA, MCA PSS, MCA Vias, BCM, Mainbio (2021); MCA SA, MCA PSS, MCA EFFLUENTS
Marina de Gaia, Edimade, Mainbio, MCA Vias, BCM (2022); MCA SA, MCA PSS, MCA Marina de Gaia,
Edimade, Mainbio, MCA Vias, BCM MCA CS (2023) 303-1 Interactions with water MCA mainly uses water from the municipal network, which is used by its employees in buildings and
Source of the conversion factors used: GHG protocol as a shared resource in its business activities. There is no indication that the areas where MCA’s water abstraction occurs
are under water stress.

Total energy consumption within the organisation: However, particularly because it is a scarce resource in Portugal, there are negative impacts of water
use, and it is expected that climate change will worsen the availability and quantity of fresh water.
Total energy
consumption within the 2021 2022 2023 For an efficient use of water, MCA assesses the impact of water consumption in both its fixed and
organisation mobile facilities, through the “Identification and Impact Assessment Matrices”, where minimisation
measures (including procedures) such as monitoring of consumptions are defined.
Non-renewable 45 066 328.91 41 292 229.47 27 550 173.63 In the future, we intend to continue to do so, although no specific target has been set, taking in
fuels (kWh) consideration that water usage is directly related to the amount and type of projects to be executed.

Renewable fuels - 1 147 249.50 653.94 303-2 Management of water Given the nature of the activities carried out at MCA’s premises, the majority of water discharges
(kWh) discharge related are made through the municipal network, being the quality of the wastewater treatment the
impacts responsibility of municipal services.
Electricity, heating, cooling In our Bituminous plant in Portugal, we monitor our discharge into the collector of the Integrated
and steam purchased for 364 270.65 1 081 207.00 3 259 930.92 Depollution System of Ave, on a quarterly basis.
consumption (kWh)
303-3 Water withdrawal MCA is aware of the significance of water scarcity and quality, and understands the importance of
TOTAL (KWH) 45 430 599.56 43 520 685.97 30 810 758.49 identifying and monitoring all the water sources, to better manage and protect this resource. This
information shall be disclosed once available.

303-4 Water discharge Given the nature of the activities carried out at MCA’s premises, the majority of water discharges
are made through the municipal network, being the quality of the waste water treatment the
responsibility of municipal services.

Integrated Report 2023 Part III – Appendix GRI Report 181

GRI STANDARD DESCRIPTION LOCATION/TOPIC/OMISSION REPORT GRI STANDARD DESCRIPTION LOCATION/TOPIC/OMISSION REPORT

303-5 Water consumption CHAPTER 6.3. “WATER CONSUMPTION” 305 EMISSIONS

2021 2022 2023 305-1 Direct (Scope 1) GHG CHAPTER 7.3. “OUR CARBON FOOTPRINT”
emissions
Water consumption 2 024 15 787 20 657 Direct (Scope 1)
2021 2022 2023
in projects/production (m3) GHG emission

Water consumption Gross direct (Scope 1) GHG 12 118 10 021 7 278

370 838 1 579 emissions (ton CO2eq)
in offices (m3)

Total water consumption (m3) 2 394 16 625 22 236 Base year for the calculation 2020

Subsidiaries included: MCA SA, MCA PSS, MCA Marina de Gaia, Mainbio [offices only], Edimade [offices Gases included in the The results, expressed in CO2 equivalents, include GHG emissions
only], MCA2Sustainability [offices only], MCA Vias [offices only], BCM [offices only] (2022); MCA SA, MCA calculation, namely CO2, CH4, from most materials in value chains,usually carbon dioxide (CO2),
PSS, MCA Marina de Gaia, Mainbio, Edimade [offices only], MCA2Sustainability [offices only], MCA Vias N2O, FCs, PFCs, SF6, NF3. methane (CH4) and nitrous oxide (N2O).
[offices only], BCM [offices only], MCA CS [offices only] (2023).
Emission factor sources and Emission factors are provided by suppliers. If this information is not
304 BIODIVESITY global warming potential available, the GHG Protocol database and other library databases
(GWP) rates used, or are used by default. Comparative measure “Global Warming
304-1 Operational sites MCA’s operational sites aren’t located in protected areas and areas of high biodiversity value references to GWP sources. Potential” was introduced in the period (GWP100) of the 4th IPCC
owned, leased, outside protected areas. Assessment Report (2007).
managed in, or
adjacent to, protected Consolidation approach for
areas and areas of emissions, namely equity Operational Control
high biodiversity value share, financial control or
outside protected areas operational control.

304-2 Significant impacts of CHAPTER 5.3. “RURAL ELECTRIFICATION PROJECT OF 60 COMMUNES Standards, methodologies,
activities, products and IN ANGOLA” assumptions and/or GHG Protocol Corporate Standards
services on biodiversity calculation tools used.
CHAPTER 5.4. “ASSESSING THE IMPACT ON COMMUNITIES AND ENVIRONMENT”
Subsidiaries included: MCA SA, MCA PSS, MCA Vias, BCM, Mainbio (2021); MCA SA, MCA PSS, MCA
Prior to the start of a project, MCA conducts a biodiversity analysis of the site. Marina de Gaia, Edimade, Mainbio, MCA Vias, BCM (2022); MCA SA, MCA PSS, MCA Marina de Gaia,
This applies to both regions with a high biodiversity level and those with water scarcity. The Edimade, Mainbio, MCA Vias, BCM, MCA CS (2023)
reports identify the fauna and flora present in the areas, with the goal of reducing the impact on
the species and their habitats. Scope 1 emissions (and total emissions) in this report were revised downwards in comparison with the
Integrated Report 2022 by 14,496 and 3,649 tCO2e in 2021 and 2022, respectively, given the correction
After the project is concluded, another analysis may be conducted to compare and analyse its related to the accounting of emissions associated with the production of bituminous mixtures.
impact.
305-2 Energy indirect (Scope CHAPTER 7.3. “OUR CARBON FOOTPRINT”
304-3 Habitats protected CHAPTER 5.3. “RURAL ELECTRIFICATION PROJECT OF 60 COMMUNES 2) GHG emission
Energy indirect (Scope
or restored IN ANGOLA” 2021 2022 2023
2) GHG emissions
CHAPTER 5.4. “ASSESSING THE IMPACT ON COMMUNITIES AND ENVIRONMENT” Gross location-based energy
indirect (Scope 2) GHG - - -
During the reporting period, MCA carried out environmental and social impact assessments (ESIA) emissions (ton CO2 eq)
on 11 projects, described in more detail in the mentioned chapter.
Gross market-based energy
304-4 IUCN Red List CHAPTER 5.3. “RURAL ELECTRIFICATION PROJECT OF 60 COMMUNES indirect (Scope 2) GHG 72 153 75
species and national IN ANGOLA” emissions (ton CO2 eq)
conservation list species
with habitats in areas CHAPTER 5.4. “ASSESSING THE IMPACT ON COMMUNITIES AND ENVIRONMENT” Base year for the calculation 2020
affected by operations
During the reporting period, 13 species were identified as Vulnerable, 3 identified in the field Gases included in the The results, expressed in CO2 equivalents, include GHG emissions
and 10 as likely to occur in the area of influence of the organisation’s operations according to calculation, namely CO2, CH4, from most materials in value chains,usually carbon dioxide (CO2),
Environmental & Social Impact Assessments conducted in project sites. N2O, FCs, PFCs, SF6, NF3. methane (CH4) and nitrous oxide (N2O).

Integrated Report 2023 Part III – Appendix GRI Report 182

GRI STANDARD DESCRIPTION LOCATION/TOPIC/OMISSION REPORT GRI STANDARD DESCRIPTION LOCATION/TOPIC/OMISSION REPORT

Emission factors are indicated in electricity supply contracts. 305-5 Reduction of GHG CHAPTER 7.3. “OUR CARBON FOOTPRINT”
If this information is not provided, the emissions associated with the emissions
electricity consumed cab be obtained by consulting MCA has the long-term ambition of reaching net zero for scope 1 and 2 emissions, and to
monthly invoices or the company’s emissions indicator for the year implement initiatives to reduce GHG emissions in each scope. These initiatives include process
Emission factor sources and and location in question. If no invoices are redesign, conversion and retrofitting of equipment, fuel switching, behavioral changes, as well as
global warming potential available (e.g. rented buildings), calculations are based on the CO2 offset solutions. Meanwhile, we have set a target of reaching Net Zero in scope 2 emissions by
(GWP) rates used, or following formula: 2030.
references to GWP sources.
(Nº of fixed installation users x Emission factor )/(Comparison of 305-6 Emissions of Ozone Not applicable.
another similar business unit) depleting substances
(ODS)
Comparative measure “Global Warming Potential” was introduced in
the period (GWP100) of the 4th IPCC Assessment Report (2007) 305-7 Nitrogen oxides (NOx), MCA currently does not account for emissions of nitrogen oxides (NOx), sulfur oxides (SOx) and
sulfur oxides (SOx), other significant atmospheric emissions, but intends to start accounting for them in the future.
Consolidation approach for and other significant air
emissions, namely equity Operational Control emissions
share, financial control or
operational control. 306 WASTE

Standards, methodologies, 306-1 Waste generation CHAPTER 6.2. “WASTE MANAGEMENT IN OUR OPERATIONS”
assumptions and/or GHG Protocol Corporate Standards and significant
calculation tools used. waste-related
impacts
Subsidiaries included: MCA SA, MCA PSS, MCA Vias, BCM, Mainbio (2021); MCA SA, MCA PSS, MCA
Marina de Gaia, Edimade, Mainbio, MCA Vias, BCM (2022); MCA SA, MCA PSS, MCA Marina de Gaia, 306-2 Management CHAPTER 6.2. “WASTE MANAGEMENT IN OUR OPERATIONS”
Edimade, Mainbio, MCA Vias, BCM, MCA CS (2023) of significant
waste-related
305-4 GHG CHAPTER 7.3. “OUR CARBON FOOTPRINT” impacts
emissions Intensity
GHG emissions
2021 2022 2023 306-3 Waste generated CHAPTER 6.2. “WASTE MANAGEMENT IN OUR OPERATIONS”
intensity
GHG emissions intensity 47.93 Business Unit Waste generated (ton) 2021 2022 2023
for the organisation 46.11 36.63
(tCO2eq/€m). Energies Non-hazardous1 0 11.18 1 716.10

Organisation-specific metric Company Company Company Hazardous 0 9.44 16.30

(the denominator) chosen to revenue revenue revenue
calculate the ratio. (€254.35m) (€220.64m) (€200.73m) Infrastructures Non-hazardous 2 284.44 1 752.29 2 051.29

Types of GHG emissions Hazardous 6.53 4.64 16.88

included in the intensity ratio,
namely direct (Scope 1), Scope 1 and Scope 2 Urban Development Non-hazardous N.A. N.A. N.A.
energy indirect (Scope 2), and/
or other indirect (Scope 3). Hazardous N.A. N.A. N.A.

Gases included in the The results, expressed in CO2 equivalents, include GHG emissions Healthcare Non-hazardous N.A. N.A. N.A.
calculation, namely CO2, CH4, from most materials in value chains, usually carbon dioxide (CO2),
N2O, FCs, PFCs, SF6, NF3. methane (CH4) and nitrous oxide (N2O). Hazardous N.A. N.A. N.A.
Subsidiaries included: MCA SA, MCA PSS, MCA Vias, BCM, Mainbio (2021); MCA SA, MCA PSS, MCA TOTAL Non-hazardous 2 284.44 1 763.47 3 767.39
Marina de Gaia, Edimade, Mainbio, MCA Vias, BCM (2022); MCA SA, MCA PSS, MCA Marina de Gaia,
Edimade, Mainbio, MCA Vias, BCM, MCA CS (2023) Hazardous 6.53 14.082 33.18
Scope 1 emissions (and total emissions) in this report were revised downwards in comparison with the TOTAL (NH + H) (TON) 2 290.97 1 777.562 3 800.56
Integrated Report 2022 by 14,496 and 3,649 tCO2e in 2021 and 2022, respectively, given the correction
related to the accounting of emissions associated with the production of bituminous mixtures Subsidiaries included: MCA SA, MCA PSS (2020); MCA SA, MCA PSS, Edimade, MCA Marina de Gaia (2021);
MCA SA, MCA PSS, Edimade, MCA Marina de Gaia, Mainbio (2022); MCA SA, MCA PSS, Edimade, MCA
Marina de Gaia, Mainbio (2023).

1
Glycerin and BHO, byproducts resulting from the biodiesel production process, are considered waste by
the APA, being valued and sold to external entities. 2022 value was reclassified to include these byproducts.
2
Values were incorrectly reported in Integrated Report 2022 due to summing error.

Integrated Report 2023 Part III – Appendix GRI Report 183

GRI STANDARD DESCRIPTION LOCATION/TOPIC/OMISSION REPORT GRI STANDARD DESCRIPTION LOCATION/TOPIC/OMISSION REPORT

306-4 Waste diverted from Waste diverted 2021 2022 2023 308 SUPPLIER
disposal from disposal (ton) ENVIRONMENTAL
Onsite Offsite Onsite Offsite Onsite Offsite
ASSESSMENT
Non-hazardous1 - 2 107.80 - 1 702.37 - 3 695.89
308-1 New suppliers that CHAPTER 3.2. “SUSTAINABILITY IN THE VALUE CHAIN”
Hazardous - 6.53 - 15.62 - 28.4 were screened using
environmental criteria New suppliers are screened based on environmental criteria in the sense that a KYC is conducted
Subsidiaries included: MCA SA, MCA PSS (2020); MCA SA, MCA PSS, Edimade, MCA Marina de Gaia (2021); to new suppliers above a certain threshold (type, geography and value of contract). The KYC
MCA SA, MCA PSS, Edimade, MCA Marina de Gaia, Mainbio (2022); MCA SA, MCA PSS, Edimade, MCA 308-2 Negative analyses include screening for adverse media and reported legal processes filed against the
Marina de Gaia, Mainbio (2023). environmental company, which may include environmental topics.
impacts in the supply
1
Glycerin and BHO, byproducts resulting from the biodiesel production process, are considered waste by chain and actions On top of that, MCA suppliers are required to complete an annual assessment questionnaire,
the APA, being valued and sold to external entities. 2022 value was reclassified to include these byproducts. taken which includes “Safety, Hygiene, Health and Environment” criteria. Suppliers are rated on a 0-10
scale based on assessment results. Suppliers scoring below 3 on two consecutive years are placed
306-5 Waste directed to Waste directed 2021 2022 2023 on a list of “excluded suppliers” and supply agreements terminated.
disposal to disposal (ton) Onsite Offsite Onsite Offsite Onsite Offsite
400 SOCIAL
Incineration
(with - - - - - - 401-1 EMPLOYMENT
energy
recovery) 401-1 New employee hires New employee hires, by gender:
and employee turnover
Incineration Gender 2021 2022 2023
(without - - - - - -
Non-hazardous energy Female 47 142 106
recovery)
Male 399 405 423
Landfilling - 176.64 - 61.10 - 60.00
TOTAL 446 547 529
Other
disposal - - - - - -
operations
New employee hires, by age group:
Incineration No updated records of new hires by age group are available.
(with - - - - - -
energy New employee hires, by region:
recovery)
Region 2021 2022 2023
Incineration
(without Iberia - 82 73
- - - - - -
Hazardous energy
recovery) Central Europe - 0 6

Landfilling - - - - - - LatAm - 0 0

Other Africa - 465 450

disposal - - - - - 4.77
operations TOTAL - 547 529

Subsidiaries included: MCA S.A., MCA PSS (2020); MCA SA, MCA PSS, Edimade, MCA Marina de Gaia
(2021); MCA S.A., MCA PSS, Edimade, MCA Marina de Gaia, Mainbio (2022); MCA SA, MCA PSS, Edimade, Employee turnover, by gender:
MCA Marina de Gaia, Mainbio (2023).
Gender 2021 2022 2023

Female 41 101 49

Male 221 420 251

TOTAL 262 521 300

Integrated Report 2023 Part III – Appendix GRI Report 184

GRI STANDARD DESCRIPTION LOCATION/TOPIC/OMISSION REPORT GRI STANDARD DESCRIPTION LOCATION/TOPIC/OMISSION REPORT

Employee turnover, by age group: 403 OCCUPATIONAL HEALTH

No updated records of employee turnover by age group are available. AND SAFETY

Employee turnover, by region: 403-1 Occupational health CHAPTER 9.3. “HEALTH AND SAFETY AT WORK”
and safety management
Region 2021 2022 2023 system

Iberia - 114 29 403-2 Hazard identification, CHAPTER 4. “RISK MANAGEMENT & COMPLIANCE”
risk assessment, and
Central Europe - 0 0 incident investigation CHAPTER 9.3. “HEALTH AND SAFETY AT WORK”

LatAm - 1 0 Hazard identification, risk assessment, and incident investigation procedures are defined in Risk
Identification and Assessment.
Africa - 406 271
403-3 Occupational health CHAPTER 9.3. “HEALTH AND SAFETY AT WORK”
TOTAL - 521 300 services
Records of new hires by region were only recorded from 2022 onwards. Additionally, a discrepancy between 403-4 Worker participation, CHAPTER 9.3. “HEALTH AND SAFETY AT WORK”
the number of entries/exits and the annual variation in total employees continues to persist due to lack of consultation, and
information systems to allow greater accuracy of information between number of actual employees and pay communication on Employees are required to attend occupational health consultations, in compliance with
slip records. Reporting is expected to become more accurate in the coming years and the explanation for the occupational health and national regulations. 100% of employees required by national law to attend occupational health
aforementioned discrepancy identified and corrected in reformulations referring to past reports. safety consultations have attended the consultations.
401-2 Benefits provided to CHAPTER 11.5. “A GOOD PLACE TO WORK” 403-5 Worker training on CHAPTER 9.3. “HEALTH AND SAFETY AT WORK”
full-time employees occupational health and
that are not provided to safety All employees received training, upon recruitment and on a regular basis, according to their
temporary or part-time functions.
employees
403-6 Promotion of worker CHAPTER 9.3. “HEALTH AND SAFETY AT WORK”
401-3 Parental Leave All employees are entitled to parental leave. health
MCA offers the services of an occupational physician and ensures compliance with the health
Parental Leave 2021 2022 2023 measures established in the applicable legislation. Any employee who wishes to consult the
occupational physician for reasons not related to their job are required to consult the HSE&Q
Gender Female Male Female Male Female Male Department.
Employees who 5 2 7 2 3 10 MCA has also created an Employee Support Program in order to provide assistance to employees
took parental leave in matters of nutrition and mental health.
Employees who returned 403-7 Prevention and CHAPTER 9.3. “HEALTH AND SAFETY AT WORK”
to work after parental 4 2 6 2 3 10 mitigation of
leave occupational health and
safety impacts directly
Employees still linked by business
employed 12 3 2 4 2 3 10 relationships
months after their
return to work 403-8 Workers covered by The Occupational Health and Safety Management System includes a series of concepts, norms,
an occupational health criteria, standards and procedures related to “HSE – Health, Safety, and Environment,” with special
RETURN TO WORK RATE (%) 80% 100% 86% 100% 100.0% 100.0% and safety management focus on “Quality, Environment, Safety, Health and Laboratory Control.”
system
RETENTION RATE (%) 75% 100% 67% 100% 100.0% 100.0% Based on MCA’s standards, rules and procedures, the Occupational Health and Safety Management
System, applicable across the Group, seeks to ensure the safety of people, protect the environment
and safeguard product quality and assets. This system applies to all MCA Group business sectors,
as well as any organisations controlled by MCA, irrespective of legal form.

Safety management, which is based on a series of techniques and standards, involves the
identification of hazards, the assessment of risks and the implementation of control measures
for workplaces and manufacturing processes, namely in terms of equipment, raw materials and
working environments. This system seeks to ensure that all employees benefit from safe, healthy
workplaces, in order to reduce the risk of occupational accidents and/or illnesses.

Health management seeks to promote and protect employee health, by improving quality of life
and physical, mental, and social wellbeing, thus increasing productivity and long-term economic
development. For this purpose, a specific medical monitoring programme is created for each
employee and task, such as to tailor assessments to specific individuals and conditions.

Integrated Report 2023 Part III – Appendix GRI Report 185

GRI STANDARD DESCRIPTION LOCATION/TOPIC/OMISSION REPORT GRI STANDARD DESCRIPTION LOCATION/TOPIC/OMISSION REPORT

403-9 Work-related Injuries CHAPTER 9.3. “HEALTH AND SAFETY AT WORK” During 2023, an MCA employee passed away as a consequence of a work injury (road accident).
On behalf of the company, we offer our deepest condolences to the family and friends of our
Work-related injuries 2021 2022 2023 colleague. The safety of our employees and subcontractors is paramount to us, and we continue to
work exhaustively to ensure that our operations run safely.
Number of fatalities as a result of 0 0 1
work-related injury Up to 2022, only MCA employees were considered in LTIFR calculations. From 2022 onwards,
MCA started including subcontractors (workers who are not employees) in the calculations.
Number of high-consequence 0 0 0
work-related injuries Lost-time injury frequency rate: Calculated based on 1,000,000 hours worked [(number of
Employees accidents with sick leave/number of hours effectively worked) x 1,000,000]. Hazards are identified
Number of recordable 39 35 14 through quantitative and qualitative risk assessments of the tasks performed at construction sites.
work-related injuries
Main types of work-related injuries:
Number of hours 1 894 898 2 121 036 2 393 765 · Entanglements
worked · Blows/shock by/against objects
· Particle projection
LOST-TIME INJURY 20.6 16.5 5.8 · Rollover with work equipment
FREQUENCY RATE (LTIFR) · Cuts
Number of fatalities as a result of · Falls from the same level (tripping) or getting off equipment
- 0 0
work-related injury
Measures taken: Increased focus on training and/or awareness campaigns on safety topics, namely
Number of high-consequence the importance of personal protective equipment, manual and mechanical load handling, and
- 0 0 circulation within the site.
work-related injuries
Workers who are not Number of recordable 403-10 Work-related ill health Work-related ill health 2021 2022 2023
employees - 2 0
work-related injuries
Number of deaths resulting from 0 0 0
Number of hours - 6 507 448 831 294 occupational diseases
worked
Employees
Number of cases of occupational
LOST-TIME INJURY diseases with serious 0 0 0
FREQUENCY RATE (LTIFR) - 0.3 0
consequences (excluding deaths)
Number of fatalities as a result of - 0 1 TOTAL NUMBER OF CASES OF
work-related injury 0 0 0
OCCUPATIONAL DISEASES
Number of high-consequence - 0 0 MCA does not monitor workers who are not employees.
work-related injuries Hazards are identified through quantitative and qualitative risk assessments of the tasks performed
Total (Employees + at construction sites.
Workers who are not Number of recordable - 37 14
Employees) work-related injuries Main types of work-related illnesses:
· Musculoskeletal disorders: back and other muscle and joint injuries (due to weight, movement,
Number of hours - 8 628 484 3 225 059 lifting and handling of heavy loads)
worked · Dermatitis (redness and inflammation of the skin resulting from exposure to hazardous
LOST-TIME INJURY substances, such as cement)
FREQUENCY RATE (LTIFR) - 4.3 4.3
Measures taken: MCA provides personal and collective protective equipment, namely:
Subsidiaries included: MCA SA, MCA PSS, MCA AO, MCA CS, BCM, MCA Marina de Gaia, Edimade, · Protective gloves
Lexivarius, Mainbio (2021); MCA SA, MCA PSS, MCA AO, MCA CS, BCM, MCA Marina de Gaia, Edimade, · Frames/cargo lifting attachments
Lexivarius, Mainbio, subcontractors (2022); MCA SA, MCA PSS, MCA AO, MCA CS, BCM, MCA Marina de · Training sessions
Gaia, Edimade, Lexivarius, Mainbio, subcontractors (2023)

Integrated Report 2023 Part III – Appendix GRI Report 186

GRI STANDARD DESCRIPTION LOCATION/TOPIC/OMISSION REPORT GRI STANDARD DESCRIPTION LOCATION/TOPIC/OMISSION REPORT

404 TRAINING AND 405 DIVERSITY AND

EDUCATION EQUAL OPPORTUNITY

404-1 Average hours of CHAPTER 11.4. “TRAINING AND DEVELOPMENT” 405-1 Diversity of governance Governance bodies, by gender:
training per year per bodies and employees
employee Average hours of training, by gender (h) Gender 2021 2022 2023

Gender 2021 2022 2023 Female 1 11.11% 1 11.11% 1 11.11%

Female 717 1 432 6 901 Male 8 88.89% 8 88.89% 8 88.89%

Male 1 342 16 287 15 541 TOTAL 9 9 9

TOTAL 2 059 17 719 22 442

Governance bodies, by age group:
Average hours of training, by professional category (h) Age Group 2021 2022 2023
Professional Category 2021 2022 2023 < 30 years 0 0.00% 0 0.00% 0 0.00%
Top Management 12 144 145 30-50 years 4 44.44% 5 55.56% 6 66.67%
Leadership Team 136 622 1 543 > 50 years 5 55.56% 4 44.44% 3 33.33%
Senior Specialists & Managers 380 1 398 3 486 TOTAL 9 9 9
Specialists 930 1 822 6 139
Employees, by gender:
Generalists & Operational 601 13 732 11 129
Gender 2021 2022 2023
TOTAL 2 059 17 719 22 442
Female 131 12.42% 174 16.48% 241 19.05%
404-2 Programs for upgrading CHAPTER 11.4. “TRAINING AND DEVELOPMENT”
employee skills and Male 924 87.58% 882 83.52% 1 024 80.95%
transition assistance
programs TOTAL 1 055 1 056 1 265

404-3 Percentage of employees Average percentage of employees receiving regular performance

receiving regular and career development reviews, by gender: Employees, by age group:
performance and career
development reviews Gender 2021 2022 2023 Age Group 2021 2022 2023

Female 46% 72% 69% < 30 years 206 19.53% 267 25.28% 312 24.66%

Male 42% 75% 79% 30-50 years 702 66.54% 678 64.20% 814 64.35%

> 50 years 147 13.93% 107 10.13% 139 10.99%

Average percentage of employees receiving regular performance and career
development reviews, by professional category: Unknown age1 0 0.00% 4 0.38% 0 0.00%

Professional Category 2021 2022 2023 TOTAL 1 055 1 056 1 265

Top Management 0% 36% 0%

1
Unknown age: Service Providers for which age data are unavailable.

Leadership Team 27% 100% 100%

Senior Specialists & Managers 59% 86% 83%

Specialists 47% 77% 72%

Generalists & Operational 41% 74% 79%

Integrated Report 2023 Part III – Appendix GRI Report 187

GRI STANDARD DESCRIPTION LOCATION/TOPIC/OMISSION REPORT GRI STANDARD DESCRIPTION LOCATION/TOPIC/OMISSION REPORT

Employees, by professional category: Specialists <30 years 76

Professional Category 2021 2022 2023 30-50 years 179

Top Management 12 1.14% 14 1.33% 16 1.26% > 50 years 34

Leadership Team 30 2.84% 17 1.61% 18 1.42% Generalists & Operational <30 years 231

Senior Specialists & Managers 54 5.12% 64 6.06% 87 6.88% 30-50 years 530

Specialists 219 20.76% 228 21.59% 289 22.85% > 50 years 90

Generalists & Operational 737 69.86% 729 69.03% 851 67.27% No group assigned <30 years 0

No group assigned 3 0.28% 4 0.38% 4 0.32% 30-50 years 2

TOTAL 1 055 1 056 1 265 > 50 years 2

TOTAL 1 265
Employees, by professional category and gender:
405-2 Ratio of basic salary and MCA intends to keep this information confidential for now, as disclosure is not legally required.
2023 remuneration of women
Professional Category to men We will assess potential disclosure of this information in the future.
Female Male
Nevertheless, the “Ratios of standard entry level wage by gender compared to local minimum
Top Management 5 11 wage” are disclosed in GRI 202-1.
Leadership Team 7 11 406 NON-DISCRIMINATION
Senior Specialists & Managers 13 74 406-1 Incidents of No discrimination incidents were confirmed within the organisation in 2023 (zero incidents).
discrimination and
Specialists 85 204 corrective actions taken
Generalists & Operational 129 722 413 LOCAL COMMUNITIES
No group assigned 2 2 413-1 Operations with local PART 1 – MANAGEMENT REPORT
community engagement,
TOTAL 1 265 impact assessments, and CHAPTER 10. “OUR RESPONSIBILITY”
development programs
Employees, by professional category and age group:
413-2 Operations with CHAPTER 5.4. “ASSESSING THE IMPACT ON COMMUNITIES
Professional Category Age Group 2023 significant actual and AND ENVIRONMENT”
potential negative
Top Management <30 years 1 impacts on local CHAPTER 10. “OUR RESPONSIBILITY”
communities
30-50 years 7 CHAPTER 4. “RISK MANAGEMENT & COMPLIANCE”

> 50 years 8 414 SUPPLIER SOCIAL ASSESSMENT

Leadership Team <30 years 0 414-1 New suppliers that CHAPTER 3.2. “SUSTAINABILITY IN THE VALUE CHAIN”
were screened using
30-50 years 13 social criteria New suppliers are screened based on social criteria in the sense that a KYC is conducted to new
suppliers above a certain threshold (type, geography and value of contract). These KYC analyses
> 50 years 5 414-2 Negative social include screening for adverse media, reported legal processes filed against the company as well as
impacts in the supply sanctioned lists.
Senior Specialists chain and actions
<30 years 10 taken MCA’s suppliers are required to comply with the Company’s Code of Ethics & Conduct.
& Managers
Additionally, MCA ensures that its subcontractors comply with social security obligations.
30-50 years 58
On top of that, MCA suppliers are required to complete an annual assessment questionnaire,
> 50 years 19 which includes “Safety, Hygiene, Health and Environment” criteria. Suppliers are rated on a 0-10
scale based on assessment results. Suppliers scoring below 3 on two consecutive years are placed
on a list of “excluded suppliers” and supply agreements terminated.

Integrated Report 2023 Part III – Appendix GRI Report 188

 18.
EU Taxonomy
Report

Integrated Report 2023 Part III – Appendix 189

 The following table shows the list of MCA’s EU Taxonomy
EU TAXONOMY REPORT Based on the analysis conducted, for the year of 2023,
eligible activities, and also, the Turnover, Capex and Opex
MCA contributes with 5 main activities, namely:
associated with each activity:
Context · 4.1. Electricity generation using solar photovoltaic
Taxonomy eligible proportion
technology; MCA'S ACTIVITY
ELIGIBLE ACTIVITIES CapEx
EU Taxonomy Regulation (EU 2020/852)1 establish · 4.13. Manufacture of biogas and biofuels for DESCRIPTION Turnover (€) Turnover (%) OpEx (€) OpEx (%) CapEx (€)
(%)
a classification system, capable of identifying economic use in transport and of bioliquids;
activities that are considered environmentally sustainable. · 6.15. Infrastructure enabling road transport Taxonomy Eligible Activities 212 897 184 100.0% 159 973 854 99.6% 14 670 590 85.8%
In order to be considered environmentally sustainable, and public transport 4.1. Electricity generation Solar PV projects in Angola, 119 126 150 55.9% 64 959 550 40.4% 6 244 287 36.5%
economic activities must make a substantial contribution · 6.16. Infrastructure for water transport; using solar photovoltaic as part of the Energies
to at least one of the six environmental objectives · 7.1. Construction of new buildings. technology business vertical.
defined under the EU Taxonomy, do no significant harm 4.13. Manufacture of biogas Advanced biodiesel and 3 758 907 1.8% 7 245 806 4.5% 3 798 707 22.2%
(DNSH) to any of the other objectives, comply with the Except for 6.15. and 6.16., which contribute only for the and biofuels for use in biogas projects, in Portugal
technical screening criteria (TSC) and meet the minimum adaptation objective, all other activities contribute to both transport and of bioliquids and Central Europe, as part
of the Energies business
social safeguards. mitigation and adaptation objectives. vertical.

This regulation defines six environmental objectives, Following this analysis, MCA calculated its Turnover, 6.15. Infrastructure enabling Roads and Pavement works 26 331 757 12.4% 24 455 159 15.2% 4 242 118 24.8%
road transport and public in Portugal and Angola, as
as follows: (i) climate change mitigation; (ii) climate Capex (capital expenditure) and Opex (operating transport part of our Infrastructures
change adaptation; (iii) sustainable use and protection expenses) associated with the eligible activities. The Capex business vertical.
of water and marine resources; (iv) transition to a circular and Opex values used are recognized as enablers to the
6.16. Infrastructure for water Concession of a marina 1 249 882 0.6% 996 253 0.6% 13 320 0.1%
economy; (v) pollution prevention and control; and (vi) development of the activities and projects considered. transport in Portugal.
protection and restoration of biodiversity and ecosystems.
1. EU Taxonomy Regulation (EU 2020/852) 7.1. Construction of new Development of Logistics 62 430 487 29.3% 62 317 086 38.8% 372 157 2.2%
2. These activities are included in the taxonomy in Annexes I and II of the buildings projects in Spain, as part
The Delegated Acts are the documents that establish Delegated Climate Act (Commission Delegated Regulation (EU) 2021/2139) of the Urban Development
the technical screening criteria (TSC) for activities to business vertical.
be considered environmentally sustainable.
Taxonomy Non-Eligible Activities 56 126 0.0% 707 979 0.4% 2 430 135 14.2%

MCA believes that the voluntary disclosure of its Total (Eligible and Non-Eligible) 212 953 310 100.0% 160 681 833 100.0% 17 100 725 100.0%
Taxonomy eligibility is an important step towards future
disclosure requirements of both eligibility and alignment.
MCA’s turnover in 2023 amounted to €212.9m, of which Taxonomy Alignement
€213.0m was related to EU Taxonomy eligible activities
(i.e. almost 100%) and only €56k to non-eligible activities. Over the following years, we expect to continue working
Eligibility Assessment to better comprehend the alignment of our activities with
MCA’s turnover of eligible activities is essentially EU Taxonomy.
The methodological approach adopted to verify MCA’s associated with “4.1. Electricity generation using solar
Taxonomy eligibility involved a detailed analysis of the photovoltaic technology” activity, resulting from the 370
Group’s activities, starting by the collection of the NACE MW Solar and Rural Electrification projects in Angola,
codes associated with all MCA’s activities and considering which accounted for more than 55% of the total turnover.
if they are linked with activities under both the objectives The second eligible activity with most relevance is “7.1.
of climate change mitigation and adaptation. From this Construction of new buildings” accounting for over 29%
analysis resulted a selection of the eligible activities. of the total turnover, and refers to the development
of logistics buildings in Spain as part of our Urban
On top of the NACE codes, MCA looked for other Development business vertical. MCA’s non-eligible
company activities which it believes are also eligible activities at the turnover level relate to MCA Agro, which
under the EU Taxonomy (in accordance with Annex is focused on sustainable farming. At the OpEx and CapEx
I – Mitigation – and II – Adaptation – of the Climate level, non-eligible activities mostly relate to corporate
Delegated Act)2. structure costs and investments.

Integrated Report 2023 Part III – Appendix EU Taxonomy Report 190

 19.
Acronyms
and abbreviations

Integrated Report 2023 Part III – Appendix 191

% - Percentage EIA - Environmental Impact Assessment k - Thousand PV - Photovoltaic
€k - Thousands of Euros ELAN - Eletricidade e Montagens de Angola, S.A. kg - Kilogram R - Responsible (RACI)
€m - Millions of Euros EPC - Engineering, Procurement and Construction km2 (or k sqm) - Square Kilometre RACI - Responsible, Accountable, Contributor, Informed
A - Accountable (RACI) ERP - Enterprise Resource Planning KPI - Key Performance Indicators (risk matrix)
AC - Alternating Current ESG - Environmental, Social and Governance Ktpa - Kilo Tonnes Per Annum RED - Renewable Energy Directive
AEC - Architecture, Engineering and Construction ESIA - Environmental and Social Impact Assessment KYC - Know your Counterpart RFAI - Regime Fiscal de Apoio ao Investimento (Tax
Águas do Porto - Águas e Energia do Porto E.M EU - European Union LARDEF - Liga de Apoio à Integração dos Deficientes Regime for Investment Support)
AIDS - Acquired Immunodeficiency Syndrome EUR (or €) - Euro LatAm - Latin America RGPC - General Regime for the Prevention of Corruption
AOA - Angolan Kwanza Euribor - Euro Interbank Offered Rate LEED - Leadership in Energy and Environmental Design RTB - Ready to Build
APDL - Administração dos Portos do Douro, Leixões e EVG&D - Economic Value Generated and Distributed LEED cert. - LEED Certification S - Social (ESG)
Viana do Castelo, S.A. F - Female LT - Long-Term SAP - SAP S/4 Hana RISE
ATACA - Associação de Tutores e Amigos da Criança FCs - Fluorocarbons LTIFR – Lost-Time Injury Frequency Rate SCADA - Supervisory Control and Data Acquisition
Africana FED - Federal Reserve Bank Luibor - Luanda Interbank Offered Rate SDG - Sustainable Development Goals
AUM - Assets Under Management FEP - Faculdade de Economia da Universidade do Porto LV - Low Voltage SF6 - Sulphur Hexafluoride
BCM - Bussines Center Manzanares S.L. (Faculty of Economics - University of Porto) M - Male SIC - Standards Interpretations Committee
BHO – Bio Heating Oil Flexi - Flexible m - Meter SIFIDE - Sistema Português de Incentivos Fiscais à
BIM - Building Information Modelling G - Governance (ESG) M&A - Mergers and Acquisitions Investigação e Desenvolvimento Empresarial (Tax
BioLNG - Bio-Liquified Natural Gas GBS - Global Business Services m3 - Cubic Meters Incentive System for Business R&D in Portugal)
BNA - Banco Nacional de Angola (National Bank of GDP - Gross Domestic Product Mainbio - Mainbio S.A. Sines - Sinalização de Estradas, S.A.
Angola) GHG - Greenhouse Gas MCA Agro - MCA Agro, Lda. SOx - Sulfur Oxides
C - Contributor (RACI) Gj - Gigajoules MCA Holding - M. Couto Alves Holding B.V. SPV - Special Purpose Vehicle
c. - Circa GRI - Global Reporting Initiative MCA Infrastructure - MCA Infrastructures Ibéria, S.A. TCFD - Task Force on Climate-Related Financial
CapEx - Capital Expenditure GSCPI - Global Supply Chain Pressure Index MCA S.A. (or MCA PT) - M. Couto Alves, S.A. Disclosures
CCO - Chief Corporate Officer GWh - Gigawatt Hours MCA Vias - M. Couto Alves Vias, S.A. tCO2e - Tonnes of Carbon Dioxide Equivalent
CCUS - Carbon Capture, Utilisation and Storage GWP - Global Warming Potential MV - Medium Voltage Ton (or t) - Tonne
CEO - Chief Executive Officer H - Hazardous MW - Megawatt TSC - Technical Screening Criteria
CFO - Chief Financial Officer HB - Hospital de Bragança MWh - Megawatt Hours TWh - Terawatt Hours
CH4 - Methane HIV - Human Immunodeficiency Virus MWp - Megawatt Peak UN - United Nations
CIO - Chief Investment Officer HPC - Hospital Privado de Chaves MZN - Mozambique Metical UNGC Academy - United Nations Global Compact
CIT - Corporate Income Tax HSEQ - Health, Safety, Environment and Quality NACE - Nomenclature of Economic Activities Academy
CO2 - Carbon Dioxide HTQ - Hospital Terra Quente NF3 - Nitrogen Trifluoride USD (or $) - United States Dollar
CO2e - Carbon Dioxide Equivalent HVAC - Heating, Ventilation, and Air Conditioning NGO - Non-Governmental Organization WELL® - WELL Building Standard
COD - Commercial Operation Date I - Informed (RACI) NH - Non-Hazardous Wibor - Warsaw Interbank Offered Rate
COO - Chief Operating Officer IAS - International Accounting Standards NOx - Nitrogen Oxides YoY - Year-Over-Year
DC - Direct Current IASB - International Accounting Standards Board O&M - Operations and Maintenance
DCC - Dutch Civil Code IFC - International Finance Corporation OCI – Other Comprehensive Income
DCE - Development Concept Engenharia, Lda. IFRIC - International Financial Reporting Interpretations ODS - Ozone Depleting Substances
DEPC - Development, Engineering, Procurement and Committee OECD - Organisation for Economic Cooperation and
Construction IFRS - International Financial Reporting Standards Development
DNA - Deoxyribonucleic Acid IIA - Institute of Internal Audit OpEx - Operational Expenditure
DNSH - Do No Significant Harm ILO - International Labour Organisation OSH - Occupational Safety and Health
DPO - Data Protection Officer IMF - International Monetary Fund PFCs - Perfluorocarbons
E - Environmental (ESG) INEFOP - Instituto Nacional de Emprego e Formação PLN (or zł) – Polish Złoty
e.g. - Exempli Gratia Profissional PM - Project Management
EBIT - Earnings Before Interest and Taxes IPCC - Intergovernmental Panel on Climate Change PMI - Project Management Institute
EBITDA - Earnings Before Interest, Taxes, Depreciation, IQ-EQ - IQ EQ Management (Netherlands) B.V. PMMM - Project Management Maturity Model
and Amortization IR – Integrated Report PMO - Project Management Office
ECA - Export Credit Agency ISO - International Organization for Standardization PPR - Plan for the Prevention of the Risks of Corruption
ECB - European Central Bank IT - Information Technology and Related Infringements

Integrated Report 2023 Part III – Appendix Acronyms and abbreviations 192
 20.
Technical File

Title Author Design Published in

MCA Integrated MCA Design with 2024
Report 2023 Pedigree

Disclaimer
Some images used in this Integrated
Report were created by Artificial
Intelligence tools with the objective
of translating the positive impact MCA
aims to have in the construction of a
better world for future generations.
They are not intended to be used for
technical purposes.

Integrated Report 2023 Part III – Appendix 193

Creating
Shared Value