Cox ABG Group (COXG) Trading Update summary

Growth and business development

• Signed new concession in South Africa, expanded Agadir water concession, and began construction of a Brazil transmission project in H1 2024.

• Acquired 51% of Khi Solar One, a leading solar thermal facility in South Africa, with plans to optimize and increase annual generation by over 30%.

• Delivered 54MW of solar assets in Spain to China Three Gorges, as part of a larger asset rotation strategy.

• Secured three strategic alliances in hydrogen and battery storage, including partnerships with Hygreen, Gotion, and a 5% stake in Malta for long-duration storage.

• Completed integration process, ending legacy one-offs, and focused on sustainability innovation.

Financial performance and outlook

• H1 2024 revenue rose 56% to €306.4m, with EBITDA up 242% to €81.2m, driven by strong services and one-off gains in Brazil.

• Net income for H1 2024 reached €38.3m, a 1,919% increase year-on-year, supported by judicial outcomes in Brazil.

• Cash flow from operations benefited from €30m in one-off judicial proceeds, but working capital was impacted by legacy projects and escrowed funds in Brazil.

• Gross debt stood at €291.8m, with adjusted net debt (excluding project finance) at €16.4m as of H1 2024.

• Robust H1 performance provides high visibility for strong H2 2024 results and sets the stage for a successful 2025.

Services and contract backlog

• Services contract backlog increased to €1.6bn as of July 2024, with an average blended net project margin of 11.7%.

• Backlog includes water, generation, transmission, and O&M contracts, with O&M contracts averaging 15 years.

• €3.9bn in offers submitted and €2.4bn expected to be submitted in August 2024, supporting future growth.

• Revenue recognition for existing backlog expected to accelerate in H2 2024 and crystallize in 2025.

• Contract backlog growth is supported by a healthy balance sheet and attractive portfolio margins.