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Webuild Spa — Salini Impregilo — Investor Presentation (September 2019)
49 slides from Webuild Spa's investor presentation, September 2019
Slide 1: A global player for the infrastructure sector
A global player for the infrastructure sector September 2019
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION IS NOT AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO PURCHASE, OR SUBSCRIBE FOR, SECURITIES. IMPORTANT: Please read the following before continuing. For the purposes of this disclaimer, this presentation (the "Presentation") comprises the attached slides and any mate
Slide 3: Table of Contents
Table of Contents 1▪ Salini Impregilo Highlights 2▪ Progetto Italia – Industry Reshaping Project 3▪ Astaldi Transaction 4▪ Salini Impregilo + Astaldi 5▪ Takeaways 3
Slide 4: We build large and complex infrastructure for any need, in every continent
We build large and complex infrastructure for any need, in every continent, leveraging on experience and people Rescue of the Temples of Abu Simbel – Egypt Expansion of the Panama Canal – Panama Rogun Hydropower Project – Tajikistan Copenhagen Cityringen – Denmark Large Complex Infrastructure Projec
Slide 5: We build hydroelectric plants, dams, canals, aqueducts, underground sewer and wastewater networks
We build hydroelectric plants, dams, canals, aqueducts, underground sewer and wastewater networks Selected Projects in “Water” Project Country Total Value(1) Backlog(2) Snowy Hydro 2.0 Australia AUD5.3bn €3,178m Koysha Ethiopia €2.5bn €1,888m Rogun Tagikistan $1.9bn €1,418m GERD Ethiopia €3.3bn €983
Slide 6: We build underground and above-ground railways, high-speed railways, subways and rail tunnels
We build underground and above-ground railways, high-speed railways, subways and the related rail tunnels Selected Projects in “Railway” Project Country Total Value(1) Backlog(2) COCIV Italia €3.9bn €2,927m Riyadh Metro Saudi $5.9bn €611m Line 3 Arabia Line 16 of Grand France €0.7bn €467m Paris Expr
Slide 7: We build roads, motorways, highway bridges, viaducts and related structures
We build roads, motorways, highway bridges, viaducts and related structures Selected Projects “Road Works” Project Country Total Value(1) Backlog(2) I-10 Corridor USA $0.7bn €566m Express Lanes Statale Italy €0.8bn €375m Jonica 106 I-4 Ultimate USA $2.3bn €151m Key Facts Construction Backlog Achieve
Slide 8: We build airports, civil and administrative buildings, educational facilities, car parks and hospitals
We build airports, civil and administrative buildings, educational facilities, car parks and hospitals Selected Projects “Other” Project Country Total Value(1) Backlog(2) Riyadh Saudi National Guard SAR4.8bn €1,038m Arabia Military European Parliament – Strasbourg - France Key Facts Construction Bac
Slide 9: We are active in every continent and in 50 countries
We are active in every continent and in 50 countries Europe 27% Top (2) 10 Top (1) 10 28% 22% Middle East USA 7% Africa 12% 3% Asia & Australia Latin America Adj. Revenue 1H 2019 (1) Source: Top 10 position in the United States based on the ENR Report, Top 250 International Contractors, 19/26 August
Slide 10: Our people and culture build our success
Our people and culture build our success People & Culture Backbone At the Heart of our Business Model Core business process ▪ Solid global platform: experienced Commercial Bidding Execution management team and new talent planning ▪ Recruiting internationally ▪ Systematic approach for scouting new ta
Slide 11: We adopt the highest ESG standards
We adopt the highest ESG(1) standards Sustainability ▪ Clear Sustainability Strategy Diversity Pillar 2: ▪ Strong commitment on Diversity Pillar 1: Acting Contributing responsibly to global ▪ Key figures reflecting the Company Commitment: challenges ▪ More than 100 nationalities ▪ 65% of employees h
Slide 12: We have transformed our business...
We have transformed our business... ...Through M&A... (€1.0bn) ($460m) USA ...Sale of non core (€1.1bn) (€140m) (€50m) ($555m) assets... P&P €400m 6.125% €600m 3.75% €500m 1.75% ...Bond issuances at Senior Unsecured Senior Unsecured Senior Unsecured decreasing rates... Bond (5y) Bond (5y) Bond (7y)
Slide 13: ...and significantly improved our business profile
...and significantly improved our business profile De-risked / quality backlog Reduced projects concentration New Orders % of revenue derived from top 10 construction projects 35% 66% RoW 76% 49,9% 65% Low Risk Countries(1) 24% 2014 2018 2014 2018 Balanced portfolio Consolidated capabilities 1H 2019
Slide 14: We have totally re-engineered our bidding strategy...
We have totally re-eningeered our bidding strategy... Key developments since 2014 High level process representation ▪ Structured approving Initiative Pre- Project approach: Bidding Identifi- Bidding qualification Execution Development Committee cation (and CEO) green light required to present an off
Slide 15: ...to successfully address the global market opportunity...
...to successfully address the global market opportunity... Focus our core countries (USA, Australia, Europe and Middle East) and expansion in new geographies Key Facts (Canada and Nordics) (€bn) €630bn 200.9 selected market opportunities ’19-’21 13.6 €63bn 245.2 Europe potential short-term 9.2 4.0
Slide 16: ...with results already obtained in 2019
...with results already obtained in 2019 Key Facts Record new orders ~€6bn New Orders(1) Naples-Bari High-Speed Railway (€608m) TEXAS HIGH-SPEED TRAIN ($14BN)(2) Caloosahatchee Reservoir (€464m) $14bn Texas High-Speed Train New Order(2) Snowy 2.0 Hydropower (€3.23bn) New “Orient Express” High-speed
Slide 17: Table of Contents
Table of Contents 1▪ Salini Impregilo Highlights 2▪ Progetto Italia – Industry Reshaping Project 3▪ Astaldi Transaction 4▪ Salini Impregilo + Astaldi 5▪ Takeaways 17
Slide 18: Progetto Italia has a very favorable global market context
Progetto Italia has a very favorable global market context Large and growing end market Supportive macro dynamics Global infrastructure construction spending outlook 2.226% 0.018% Low Government yields ($trillion) 30Y US Treasury 30Y German Bund 4.1 Record Low Central Banks -0.396% interest rates 3m
Slide 19: Italy unblocking €36bn of infrastructure work
Italy unblocking €36bn of infrastructure work Key Facts Overview of blocked projects in Italy (Large size (>€100m) infrastructure construction projects Main Italian blocked projects currently blocked(1)) (Project size > €1.0bn) Lombardy High-speed Brescia-Verona €1.9bn Highway Cremona-Mantova €1.0bn
Slide 20: Progetto Italia is aimed at being a sector game changer
Progetto Italia is aimed at being a sector game changer Mission Key objectives IMPROVED EFFICIENCY BY ADDING SCALE Strengthening the Economies of scale and reduction of order book volatility national sector of public works and STRENGTHENED COMPETITIVENESS VIA AGGREGATION OF SPECIALIZED EXPERTISE con
Slide 21: Progetto Italia is a systemic combination with significant financial support
Progetto Italia is a systemic combination with significant financial support Expected Financial Sources Overview of Progetto Italia parties involved €600m capital increase SALINI IMPREGILO CDP ◼ Industrial know-how ◼ Capital ◼ Vast and diversified capabilities ◼ Institutional support €400m ◼ Demonst
Slide 22: Progetto Italia aims at closing the gaps with international players
Progetto Italia aims at closing the gaps with international players and unleash relevant benefits Benefits + Construction Revenue of Main international Players Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 (€bn, 2017 financials) Larger construction player (1) ~9 ~11 Increased competitiveness in t
Slide 23: Progetto Italia capital contributions are catalyst to investments
Progetto Italia capital contributions are catalyst to investments €m Sources(1) Uses Capital increase in 50 225 for a 65% stake(2) 250 Strengthen balance sheet 375 to support Progetto Italia Banks 150 Market / institutional 150 investors(3) TOTAL 600 600 ▪ Commitments from Salini Costruttori, CDP Eq
Slide 24: Salini Impregilo has proven M&A execution and integration capabilities
Salini Impregilo has proven M&A execution and integration capabilities Solid M&A track record Pre Acquisition Actions Where Today ▪ ~Nil backlog ▪ Bank debt restructuring ▪ Working for Ponte Morandi and in ▪ Actions put in place by ▪ Participation in JV with Switzerland (AlpTransit) suppliers safegu
Slide 25: Table of Contents
Table of Contents 1▪ Salini Impregilo Highlights 2▪ Progetto Italia – Industry Reshaping Project 3▪ Astaldi Transaction 4▪ Salini Impregilo + Astaldi 5▪ Takeaways 25
Slide 26: Target Astaldi's perimeter
Target Astaldi’s perimeter Target perimeter for Salini Impregilo Assets excluded from the perimeter ➢ Selected construction projects(1) ➢ Main concessions (Astaldi’s equity stake) GOI (19%) 3BB (20%) ETLIK (51%) Hydroelectric plant La Ferrovia Curtici-Simeria Metro BLU Turkey Turkey Turkey Punilla R
Slide 27: Expected Astaldi perimeter contribution to Salini Impregilo - Backlog
Expected Astaldi perimeter contribution to Salini Impregilo - Backlog Construction backlog build-up Construction backlog by geography 1H 2019 Backlog (€bn) Texas Project 1H 2019 Backlog (€bn) +$14bn(2)(3) 31% 10% 23% 20% 17% 7.6 36.5 ~40%(3) 28.9 Texas Project +$14bn(2)(3) 12,0 11.2 3.5 8.4 7.2 1.8
Slide 28: Key financial terms of Astaldi potential acquisition
Key financial terms of Astaldi potential acquisition Transaction Structure Astaldi post-money Astaldi Summary P&L Astaldi current Unsecured shareholders Creditors (€m, rounded numbers) 2021E Revenue 2,300 EBITDA 160 €225m Cash Injection EBIT 130 Implied value for 100% Astaldi of ~€350m for €130m EBI
Slide 29: Astaldi's expected timeline
Astaldi’s expected timeline AUGUST 2019 5 Astaldi’s has been admitted to the composition with creditors procedure BY DECEMBER 2019 Release of Court Commissioners’ report FEBRUARY 2020 Creditors’ General Meeting to approve Astaldi’s Composition with Creditors proposal 6 Bondholders, commercial credit
Slide 30: Table of Contents
Table of Contents 1▪ Salini Impregilo Highlights 2▪ Progetto Italia – Industry Reshaping Project 3▪ Astaldi Transaction 4▪ Salini Impregilo + Astaldi 5▪ Takeaways 30
Slide 31: Potentially enhanced growth trajectory with Astaldi
Potentially enhanced growth trajectory with Astaldi Salini Impregilo standalone business plan Aggregated key assumptions 2018(1) 2021(2) 2021(3) 2021(4) 6.4 40.8 ▪ Bottom-up approach Construction 34.4 Backlog 26.6 based on the approved budget for (€bn) each project in backlog 6.6 2.3 8.9 5.4 ▪ New o
Slide 32: Combination with Astaldi and capital strengthening resulting in a stronger platform
Combination with Astaldi and capital strengthening manouvre resulting in a stronger platform Salini Impregilo standalone business plan Capital Aggregated(4) key assumptions 2018(1) 2021(2) 2021 (3) Increase 2021 375 ~780 ~660 (Net Debt) / ▪ Extra cash from Salini Net Cash (~250) Impregilo capital (€
Slide 33: Combination with Astaldi offers significant potential upsides
Combination with Astaldi offers significant potential upsides ▪ Increase # of tenders Joint ▪ Win ratio ▪ On top of the aggregated Commercial ▪ Book-to-bill financials Development ▪ Effects more tangible post 2021 ▪ Pricing ▪ New geographies ▪ Further savings in case of full integration ▪ Economies
Slide 34: Upside potential to 2021 projected financials
Upside potential to 2021 projected financials TEXAS HIGH-SPEED TRAIN ▪ $14bn project not factored-in Salini Impregilo standalone projections(1) ▪ Expected execution starting in 2020 for 6 years ITALY BACK IN PLAY ▪ €36bn projects unlocked (“Sbloccacantieri”) ▪ Expected positive impact on Salini Impr
Slide 35: Table of Contents
Table of Contents 1▪ Salini Impregilo Highlights 2▪ Progetto Italia – Industry Reshaping Project 3▪ Astaldi Transaction 4▪ Salini Impregilo + Astaldi 5▪ Takeaways 35
Slide 36: Takeaways
Takeaways SALINI IMPREGILO MOMENTUM ▪ Sustained growth of high quality construction backlog (disciplined bidding) with record new orders in 2019 + Texas High-Speed Train(1) ▪ Solid financial profile with 1H 2019 results significantly up yoy across the board ▪ Significant risk contingencies materiali
Slide 37: Appendix
imac @ Appendix 37
Slide 38: Salini Impregilo builds large infrastructure to improve people's life...
Salini Impregilo builds large infrastructure to improve people’s life... Water Railways, Metros & TAV Construction Backlog (1) Gibe III Kariba Tarbela Doha Metro System Copenhagen Milan Metro Hydroelectric Hydroelectric Hydroelectric “Red Line North Cityringen Metro System Line 4 Project Plant Plant
Slide 39: ...in every continent
...in every continent Europe Americas Copenhagen Construction Genoa Bridge Paris Subway Panama Canal Subway Lake Mead tunnel Italy Meteor Line Cityringen Metro Backlog (1) Panama California Nevada France Denmark 32% 23% €28.9bn 17% 28% Snowy 2.0 Forrestfield- Xiolangdi Dam Riyadh Metro Third Bridge
Slide 40: Astaldi at a glance
Astaldi at a glance Selected construction projects ▪ Astaldi is a global player for large infrastructure projects with almost 100 years of experience as EPC contractor (1) delivering complex and integrated infrastructures globally ▪ It has a backlog of €7.6bn (1H-2019)(2) Etlik Integrated Health Ext
Slide 41: Key terms of Salini Impregilo offer to Astaldi
Key terms of Salini Impregilo offer to Astaldi Offer value ▪ €225m Stake acquired ▪ 65% of Astaldi (1) ▪ c. €324m total capital increase in Astaldi Investment ▪ €225m cash capital increase dedicated to Salini Impregilo scheme ▪ c. €99m debt-to-equity conversion of unsecured debt (1) ▪ Astaldi’s asse
Slide 42: Astaldi corporate re-organisation
Astaldi corporate re-organisation Status Quo Post Transaction Salini Impregilo Transaction Perimeter Assets in Liquidation (De-recognized by Astaldi) Astaldi current Unsecured Free Float shareholders creditors net 53.1% (1) 46.9% (1) 6.5% (3) 65.0% (3) 28.5% (3) proceeds 69.3% (2) 30.7% (2) SFPs fro
Slide 43: Financial Appendix
imac @ Financial Appendix 43
Slide 44: 1H 2019 results showing initial effects of a revitalized strategy
1H 2019 results showing initial effects of a revitalized strategy across all metrics... (€m) Adjusted (1) +3.7% Revenues 2,614 2,614 2,710 First Half 2018 IFRS 16 First Half First Half (1) ▪ Recovery of the restated 2018 2019 Italian project Milano- EBITDA 8.3% 8.8% Genova high speed margin 7.8% tra
Slide 45: ...with both cash generation and Lane back to a growth trajectory
...with both cash generation and Lane back to a growth trajectory Lane Backlog Adjusted Revenues Adjusted EBIT CAGR +19.2% +28% (8.0%) (0.1%) ▪ Growing Lane backlog (1) ▪ EBIT margin recovery resulting from the 4,004 596 (37) Overhead Restructuring 2,166 467 Plan (c.€30m of savings) FY 2015 1H 2019
Slide 46: Salini Impregilo income statement
Salini Impregilo income statement Salini Impregilo Group Reclassified statement of profit or loss adjusted Financial Statement June 30, 2019 6M 2018 Adjusted 6M 2019 Adjusted Salini Impregilo Salini Unconsolidate IFRS 16 effects Unconsolidate Group Total Adjusted Impregilo Total Adjusted d JVs (**)
Slide 47: Salini Impregilo statement of financial position
Salini Impregilo statement of financial position Salini Impregilo Group 31 December Reclassified statement of financial position 30 June 2018 2018 Financial Statement June 30, 2019 (€/mln) Reported Reported 30 June 2019 Non-current assets 959,3 1.153,6 1.337,2 (**) This item shows liabilities of € 2
Slide 48: Salini Impregilo net financial position
Salini Impregilo net financial position Salini Impregilo Group Net financial indebtedness Financial Statement June 30, 2019 30 June 2018 31 December 2018 (€/mln) Reported Reported 30 June 2019 Non-current financial assets 205,6 235,7 247,1 Current financial assets 129,1 135,3 238,3 Cash and cash equ
Slide 49: Thank you
_.G impaalin' ZB we build value Thank you
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