Photo TBU Genoa Bridge, Italy FY 2019 Financial Results 11 March 2020
Agenda Business update Pietro Salini Chief Executive Officer Financial Update Massimo Ferrari General Manager Corporate and Finance Closing Remarks Pietro Salini Chief Executive Officer Q&A 2
2019 – A busy year that initiated our transformation for future sustainable growth... Cityringen metro line Acquisition of Cossi Texas High-Speed New Governance Snowy 2.0 Costruzioni completion Railway implemented 5 April 3 April 19 July 13 September 6 December 1Q 2019 2Q 2019 3Q 2019 4Q 2019 Binding offer for Progetto Italia Non-binding offer for €600m capital Astaldi subject to financial conditions Astaldi increase financing conditions achieved 13 February 7 November 16 July 2 August 3 FY 2019 Financial Results
...while remaining focused on delivering on business and financial performance Business Results Record New Orders - € 8.1bn of new contracts in the last 12 months Solid Backlog, following de-risking guidelines: +11% vs FY 2018 Completed Lane’s turnaround OFCF before dividends & extraordinary items improved more than 300m Reduced gross and net debt, compared to FY 2018 Reward on ESG focus Reached Leadership level within the CDP (1) Climate Change programme >85% Revenues (2) and Backlog related to projects that contribute to SDG (3) advancement -25% greenhouse gas emissions vs 2018 (4) Best-in-class safety performances 4 (1) Ex Carbon Disclosure Project (3) United Nations' Sustainable Development Goals to be achieved by 2030 FY 2019 Financial Results (2) Revenues from contracts with customers (4) Scope 1 & 2
Record New Orders in 2019: € 8.1bn, not including Texas High -Speed Train Key Facts Record new orders 1.66x Book-to-bill Hurontario Light Rail Transit Nykirke-Barkaker Railway $15bn Europe €1.4 bn Texas High-Speed Naples-Bari High-Speed Railway Train, not included in North America backlog €1.6 bn >90% T EXAS H IGH -S PEED T RAIN (1) New “Orient Express” High -speed Railway Caloosahatchee Reservoir New Orders related Water Storage Tunnel Middle East Snowy 2.0 Hydropower to projects that I-405 Renton to Bellevue Highway €0.3 bn contribute to SDG (1) Sistema Riachuelo - Lotto 2 advancement Other >75% €1.4 bn Oceania New Orders from low €3.5 bn risk countries (2) 5 (1) United Nations' Sustainable Development Goals to be achieved by 2030 FY 2019 Financial Results (2) Low risk countries include: US, Australia and Europe.
Backlog increasing focus on sustainable projects Key Facts Revenues by geography Revenues by activity (1) Low carbon; 58% Clean Hydro Italy; ~26% North America; Energy; 17% 18% 23% Revenues in US and Green Sustainable Buildings; 5% Australia Africa; Mobility; 58% 9% €5.3bn Europe; Other; 12% 11% Asia; 7% 46.9% South America; Top 10 projects 3% Clean Water; 8% Australia; Middle revenues share 3% East; 25% (vs 52.9% in 2018) vs. 2018 >85% Construction backlog by geography Construction backlog by activity Revenues and Backlog Low carbon; 60% Americas; Italy; Clean Hydro 24% related to projects that 26% Energy; 26% contribute to SDG Sustainable advancement Mobility; 55% Europe; €29.5bn €29.5bn 6% + 11.2% Middle East; Other; 14% 6% Africa; Construction Backlog Australia; 20% 12% Asia; Clean Water; 5% vs 2018 6% vs. 2014 6 FY 2019 Financial Results (1) Revenues from contracts with customers
>90% of commercial pipeline in North America, Australia, Central Europe and Middle East Key Facts Improved bid selection, based on client reliability and our execution capability Reliability (€bn) ~€580bn filter Capability filter Selcted market ’ 20- ’ 22 (1) Core addressable commercial activity Selected market ‘20 - ’22 (1) t t t 201.2 t ~€120bn Selected mkt Core addres. selected mkt commercial Not reliable Selected pro quota Reliable 3 rd party initiatives market activity Core addressable 27.7 commercial activity 153.6 34.4 53.1 15.8 of which Europe 60.3 0.2 10.8 €7.6bn Asia awaiting outcome, Italy 52.9 €0.8bn awarded in 54.8 15.1 North 2020 & best offer America 14.9 15.7 Oceania Short term commercial activity (€bn) 0.7 0.4 Aw. outcome/best offer 7.6 Middle Africa Tenders to be presented 10.4 East LatAm Pre-qualifications 15.0 7 FY 2019 Financial Results (1) Source: Salini Impregilo estimates based on CIC and market intelligence data.
Positive turning point for the Italian infrastructure market Backlog: New Genoa Bridge M4 Milan metro line €0.2bn Work started in June 2019 based on Renzo Piano design ▪ One of the most important sustainable mobility projects in ▪ Smart and sustainable bridge with 1,067m continuous ▪ Europe steel deck and 19 spans First section (Linate-Forlanini FS) open in 2021, entire line in ▪ Record project duration: 1-year time vs average for similar ▪ 2023 projects in Italy Agreement with City of Milan to ensure financial & ▪ Extraordinary Commissioner following project to ▪ economic stability of project: new credit lines for €400mln guarantee on-time delivery >1,500 workers ▪ >1,000 workers ▪ 56 site work ▪ Round-the-clock shift work at 20 sites ▪ Backlog: Backlog: High-speed train Milan - Genoa High-speed train Verona - Padua €3.3bn €1.4bn First contract signed in 1991 ▪ Approved and financed sixth and final construction lot for ▪ €528mln, related advance payment cashed in On Dec. 2017 CIPE approved first functional lot for €2.4bn, ▪ of which €850mln related to first construction lot “Sblocca - cantieri” decree designates extraordinary ▪ commissioner for " Nodo Ferroviario " project and " Terzo On Jul. 2019 ministry publishes cost-benefit analysis with ▪ Valico dei Giovi " positive outcomes >2,500 workers ▪ RFI and IRICAV 2 in talks on supplementary contract on ▪ first lot 14 site work ▪ 8 FY 2019 Financial Results
Agenda Financial Update Massimo Ferrari General Manager Corporate and Finance 9
FY 2019 Operating Results (€m) -1.5% 217 Revenues 5,198 5,414 5,331 FY 2018 Work Under IFRS 16 Impairment FY 2018 FY 2019 (1) (1) Management Venezuela Adjusted Adjusted EBITDA 7.9% 8.0% 7.8% margin -0.2% 23 (13) EBITDA 413 423 423 FY 2018 Work Under IFRS 16 Impairment FY 2018 FY 2019 (1) (1) Management Venezuela Adjusted Adjusted EBIT 1.3% 4.1% 3.4% margin Adjusted for Impairment on -17.2% Venezuela: EBIT € 36m 68 (13) 2 165 222 184 FY 2018 Work Under IFRS 16 Impairment FY 2018 FY 2019 (1) (1) Management Venezuela Adjusted Adjusted 10 (1) For the details regarding Adjusted data refer to income statement in the appendix FY 2019 Financial Results
Turnaround of Lane activity 2019: a year of stabilization and transformation (€m) Backlog Revenues EBIT CAGR (6.5%) (1.9%) +17.3% +23.4% €4.1bn (23) (66) backlog 4,096 1,240 1,005 2,166 FY 2015 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 (1) €48m Year when Lane acquisition was EBIT of savings on overheads completed margin achieved in 2019 New Business Model JV clean up – I4 claim ▪ Pursue >$100m projects, high ▪ Pursue solo ventures or Joint managed reliability/capability Ventures with controlling interest or robust governance ▪ Opportunistically pursue <$100m New organizational ▪ Pursue Road & Rail in core/growth model implemented, markets based on 3 main ▪ Stable overheads pillars (efficiency, ▪ Pursue all Tunnels and Water & ▪ >3% EBIT margin in the mid term (€50 - effectiveness and Waste markets 70m) supervision) ▪ Pursue Specialty Niches 11 (1) Normalized for extraordinary one-off write downs related to I-4 FY 2019 Financial Results
FY 2019 Group P&L FY 2018 FY 2019 (€m) Var Net Financial charges FY 2018 FY 2019 Adjusted (1) Adjusted (1) Var Adjusted (1) Adjusted (1) (€m) EBIT 222 184 38 Bank charges (28) (36) (8) Bond charges (41) (31) 10 Net Financial income 56 70 14 Leasing (8) (7) 2 Net Financial expenses (146) (147) (1) Refinancing amortized cost (2) (2) 0 Bond charges capitalization (4) (4) 1 Net exchange rate (losses) 13 4 (9) Subtotal (84) (79) 5 Net Financial income (costs) (77) (73) 4 Other (62) (68) (6) Financial charges (146) (147) (1) Gain (losses) on investments (16) (19) (3) Includes: Interest on Ethiopian tax settlement of ca. €14m • Net financing costs and net De-valuation of some financial assets, in • (93) (92) 1 gains on investments accordance with IFRS 9, of ca. €19m EBT 129 92 (37) Includes Ethiopian tax settlement of ca. €19m Income taxes (79) (78) 1 Assumed Profit (loss) from 46 50 14 (36) tax rate continuing operations 108 at 39% (2) 92 12 Profit (loss) from 115 (1) (116) 14 65 33 discontinued operations Italian partner Ethiopian tax consolidation continuing operations continuing operations receivable Change in Profit from normalized Profit from settlement write down write down Figurative perimeter Non controlling interests 13 (8) (21) reported taxes I-4 Net Income (loss) 178 5 (173) 12 (1) For the details regarding Adjusted data refer to income statement in the appendix FY 2019 Financial Results (2) On I-4 and Italian partner receivable write downs, net of change in consolidation perimeter
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