Slide 1: FY 2018 Financial Results
New Gerald Desmond Bridge in Long Beach, California FY 2018 Financial Results 18 March 2019
Slide 2: Agenda
Agenda Business evolution Pietro Salini Chief Executive Officer Financial Update Massimo Ferrari General Manager Finance & Corporate Group CFO Q&A 2
Slide 3: Business evolution: a solid basis for building our future
Business evolution: a solid basis for building our future New Orders, Backlog & Revenues: effective de-risking accomplished Solid order intake Improving quality of assets through clean up: further write- down of our exposure in Venezuela Strong improvement in net income Gross debt in line with 2017
Slide 4: New Orders & Backlog: effective de-risking accomplished
New Orders & Backlog: effective de-risking accomplished 2018 New Orders Distribution ▪ I-10 Corridor Express Lanes ▪ Southern Wake (€/M) ▪ Wekiva Parkway Salini Impregilo 2,954 ▪ I-440 Beltline ▪ Line 16 of Grand Paris Express, Lot 2 Lane Construction 2,919 ▪ I-77/I-40 Interchange Improvement ▪ Exte
Slide 5: Revenues de-risking: US confirmed as our first single country market
Revenues de-risking: US confirmed as our first single country market Geographical Revenue Distribution 33% 29% 26% 23% 14% 14% 12% 12% 10% 8% 9% 5% 3% 3% Africa Middle East Europe Asia & Australia USA LatAm Italy 2014 2018 Top 10 Projects Concentration • Top 10 projects revenues share decreased from
Slide 6: ~50% of selected opportunities concentrated in USA and Australia
~50% of selected opportunities concentrated in USA and Australia 200.9 €/B €/B 3.0 Short-term Selected commercial act. Market 2019-21 Europe 245.2 9.2 63.0 1.7 84.7 7.4 9.2 Italy North 4.5 America Middle 19.1 € mln East Asia & Australia Selected Market 2019-21 8.2 5.5 6.0 Short-term commercial activ
Slide 7: Preserved financial solidity while improving group's asset quality
Preserved financial solidity while improving group’s asset quality Asset clean-up Maintaining Group sound financial and equity structure Significantly improved Group’s asset • Solid Equity structure notwithstanding asset impairments quality through balance sheet clean up • Gross debt in line with 20
Slide 8: Salini Impregilo as a reference player in the Italian infrastructure industry
Salini Impregilo as a reference player in the Italian infrastructure industry 1 2 Infrastructure industry relevant for Italy1 Italian crisis main factors Total People Companies ▪ Depression of the Italian market since 2008, mainly driven revenue employed by reduced public (-40%²) and private investm
Slide 9: Financial Update
Agenda Financial Update Massimo Ferrari General Manager Finance & Corporate Group CFO 9
Slide 10: FY18 Operating Results
FY18 Operating Results Normalized ¹ Adjusted ² Plants & Pavings line by line Plants & Pavings • In December 2018 the disposal of in IFRS 5 -1.7% Lane’s unit Plants and Paving was 283 completed Revenues 6.349 6.066 5.965 5.414 • Revenues, EBITDA and EBIT impacted 2017 Exchange 2017 2018 2018 Adj by t
Slide 11: Strong improvement below EBIT line
Strong improvement below EBIT line • Significant reduction in bank charges and refinancing amortized costs offsetting one-off asset impairment • Neutral impact from exchange rate variation on a long-run basis • Strong improvement in net income driven by the capital gain on Plants & Paving disposal (
Slide 12: FY18 Group net income: > than 65% FY17 Group net income
FY18 Group net income: > than 65% FY17 Group net income Net income bridge (€/M) Total write down ca. €480m Venezuela* 75% of the gross exposure Venezuela exposure ca. €160m post-write down 25% of the gross exposure +68% 180 107 126 54 224 (117) 2017 Venezuela write-off 2017 2018 Venezuela write-off
Slide 13: Gross debt in line with 2017
Gross debt in line with 2017 Net Financial Position 2018 Net Financial Position affected by: ▪ reimbursement of the advance payments held by GUPC for (€/M) 2017 adj 2018 adj Total Cash & Other Financial Assets 1,603 1,478 some € 196m; settled upfront the entire cash out Bank Loan and other financing
Slide 14: 85% of debt maturity starting from 2021; Cost of debt reduced to 2.5%
85% of debt maturity starting from 2021; Cost of debt reduced to 2.5% 1 M/L Corporate Debt [€/M] Bank debt bond • Extending durations up to > than 3.5 years 600 500 • Cost of debt reduced to 2.5% 385 • Ca. 70% of corporate debt secured at fixed rate 136 107 58 0 2019 2020 2021 2022 2023 2024 % on 8%
Slide 15: Refocusing our US activities: transforming Lane
Refocusing our US activities: transforming Lane 1 New Orders (€m) +14% 2,919 2,563 • Completed in December 2018 the disposal of Plants & Paving Division for $574 million; Asset sold at 11x EBITDA (vs SAL trading 4.2x) • Total new orders acquired and variation orders €2.9 billion; achieved best in cl
Slide 16: One-off cash out
One-off cash out Panama arbitration Positive cash impact expected Data in US$ Potential upside for Salini 5.2 bln ▪ Rejected GUPC’s request to postpone the repayment of the advances Outstanding arbitration ▪ 100% of advances have been settled: with no impact on Group’s solid financial structure Pana
Slide 17: Appendix
Appendix 2018 Financial Results 17
Slide 18: Income statement
Income statement Salini Impregilo Group 12M 2017 Normalized Reclassified statement of profit or loss Salini Impregilo Unconsolidated Impairment Plants & Exchange 12M Normalized Total Adjusted (€/mln) Group JVs Venezuela Pavings Results 2018 View Revenue Revenue from contracts with customers 5.287 24
Slide 19: Income statement
Income statement Salini Impregilo Group 12M 2018 Normalized Reclassified statement of profit or loss Salini Unconsolidated Impairment Plants & Pavings Impregilo Total Adjusted Normalized View JVs Venezuela Results (€/mln) Group Revenue Revenue from contracts with customers 4.864 217 0 5.081 550 Othe
Slide 20: Notes
Notes 1. The Normalized data consists of statutory data prepared with the inclusion of the results of Lane Group non- subsidiary JVs and for the extraordinary write-down of assets in Venezuela and includes the Plants & Paving division results consolidated line by line. Furthermore, the figures as at
Slide 21: Income statement
Income statement Salini Impregilo Group Reclassified statement of profit or loss 12M 2017 12M 2018 (€/000) Restated (*) Revenue Revenue from contracts with customers 5,286,834 4,864,142 Other income 274,056 333,518 Revenue 5,560,890 5,197,660 Costs Purchasing costs (930,201) (861,756) Subcontracts (
Slide 22: Statement of financial position
Statement of financial position Salini Impregilo Group Reclassified statement of financial position 31 December 2017 31 December (€/000) Restated (*) 2018 Non-current assets 1,202,009 1,153,553 Goodwil 155,179 74,713 Non-current assets (liabilities) held for sale 5,683 5,683 Provisions for risks (94
Slide 23: Net financial position
Net financial position Salini Impregilo Group Net financial indebtedness 31 December 31 December (€/000) 2017 2018 Non-current financial assets 188,468 235,692 Current financial assets 94,308 135,280 Cash and cash equivalents 1,320,192 1,107,340 Total cash and cash equivalents and other financial as
Slide 24: Safe Harbour
Safe Harbour This presentation may contain forward-looking objectives and statements about Salini Impregilo’s financial situation, operating results, business activities and expansion strategy. These objectives and statements are based on assumptions that are dependent upon significant risk and unce
Slide 25: Thank you
_.G impaain' ZB we build value Thank you