Slide 1: Salini Impregilo: 2013 Results and 2014-2017 Industrial Plan
Salini Impregilo We Build Value 2013 Results 2014-2017 Industrial Plan 20th March 2014
Slide 2: Salini Impregilo Team Today
Salini Impregilo Team Today 2 2013 Results & 2014-17 Industrial Plan Presentation Pietro Salini Massimo Ferrari Chief Executive Officer General Manager Finance & 56 years Chief Financing Officer With the Company since 1987 53 years Previous experience: With the Company since 2011 CEO of Salini
Slide 3: Table of Contents
2013 Results & 2014-17 Industrial Plan Presentation Table of Contents I. Salini Impregilo: Unique Positioning II. Execution Track Record and 2013 Results III. 2014 Guidance and Business Plan Targets March 2014
Slide 4: Salini Impregilo at a Glance
Salini Impregilo at a Glance 4 Group Highlights 2013 Construction Backlog: €21.0bn 2013 Results & 2014-17 Industrial Plan Presentation Pure player in heavy civil engineering and construction Breakdown By Geography — Focused on large heavy civil engineering, where the group is among the global lead
Slide 5: A Global Leader in Heavy Civil Engineering and Construction
A Global Leader in Heavy Civil Engineering and Construction 5 Our Experience Track Record Projects in Execution Recent Awards 2013 Results & 2014-17 Industrial Plan Presentation Dams & hydroelectric plants: Neckartal Dam ~230 13 €215m Total installed power: 36,800MW (Namibia) Riachuelo Project €360m
Slide 6: Leading Position in Water and Transportation Infrastructure
A Global Leader in Heavy Civil Engineering and Construction 6 Leading Position in Water and Transportation Infrastructure ENR 2013 Ranking – Water Segment2 2013 Results & 2014-17 Industrial Plan Presentation Heavy Civil Work Revenues: Benchmarking vs. Key Peers1 (€bn) 0,0 1,0 2,0 3,0 4,0 5,0 6,0 201
Slide 7: Diversified Geographic Reach Yields Diversified Revenue Base
Diversified Geographic Reach Yields Diversified Revenue Base 7 2013 Revenues by Geography 2013 Results & 2014-17 Industrial Plan Presentation Asia & Middle Oceania East 3% Romania 5% Belarus Italy Poland 16% Denmark Russia Africa UK 24% Ireland Bulgaria Kazakhstan Europe Switzerland 20% USA Italy Tu
Slide 8: A Global Leader in Geographic Diversification
A Global Leader in Geographic Diversification 8 2013 Results & 2014-17 Industrial Plan Presentation Asia RoW 3% 11% Africa 8% Americas America 30% 15% Italy Australia 40% 49% Asia & Middle RoE Oceania East 34% 5% 3% Europe 10% Italy 16% €25.3bn¹ €2.3bn2 Africa 24% RoE 20% LatAm North RoW 27% CIS RoW
Slide 9: Salini Impregilo Enjoys a High Level of Visibility
Salini Impregilo Enjoys a High Level of Visibility 9 2013 Results & 2014-17 Industrial Plan Presentation 5,6 x 2013A Construction Backlog / 3,0 x 2013A Construction Revenue 1,5 x 1,0 x 1,0 x 2013A €2.3bn Revenues¹ €3.8bn €25.5bn €16.8bn €10.0bn2 (€bn) March 2014 39,4 2013A Backlog¹ 21,0 (€bn) 17,3 1
Slide 10: Table of Contents
2013 Results & 2014-17 Industrial Plan Presentation Table of Contents I. Salini Impregilo: Unique Positioning II. Execution Track Record and 2013 Results III. 2014 Guidance and Business Plan Targets March 2014
Slide 11: Track Record: We are a High Growth Story
Track Record 11 We are a High Growth Story Revenues 2001 vs. 2013PF (€m) EBITDA 2001 vs. 2013PF (€m) 2013 Results & 2014-17 Industrial Plan Presentation EBITDA 3.970 6.0% 10.7% margin 426 146 9 2001 2013PF 2001 2013PF Construction Backlog 2003 vs. 2013PF (€bn) Employees 2003 vs. 2013PF Backlog / 7.6
Slide 12: How Salini Acquired Impregilo: a Success Story
Salini Impregilo Strong Execution Track Record 12 How Salini Acquired Impregilo: a Success Story Shareholders Structure Evolution 2013 Results & 2014-17 Industrial Plan Presentation 8% Sep/Oct-2011 – Salini begins buying Impregilo shares at €1.60, reached 8% in October 92% Jan/Mar-2012 – Salini
Slide 13: Track Record: Achievements in 2012-2013
Track Record: Achievements in 2012-2013 13 2012 Disposal of Non-core Assets and Contractual Claims 2013 Results & 2014-17 Industrial Plan Presentation Increased holding in Impregilo Net Gross Successfully launched Proxy Solicitation Proceeds Proceeds Installed a new high quality Board of Direc
Slide 14: Track Record 2013: New Orders
Track Record 2013: New Orders 14 SAUDI ARABIA QATAR • • 2013 Results & 2014-17 Industrial Plan Presentation Riyadh Underground, Line 3 Red Line North, Doha Metro • € 3,500 m contract value • € 1,700 m contract value • 29% Salini Impregilo • 41% Salini Impregilo • 48 months expected duration • 60 mon
Slide 15: Track Record 2013: New Orders Achieved Thanks to Commercial Synergies
Track Record 2013: New Orders 15 Achieved Thanks to Commercial Synergies Tenders Submitted Tenders Won 2013 Results & 2014-17 Industrial Plan Presentation 27 64 15 19 Increased Bidding Capacity March 2014 Avg Prev. 3 Years L12M¹ Avg Prev. 3 Years L12M¹ In €bn # of Projects October 2013 Solid proof o
Slide 16: Backlog Analysis
Backlog Analysis 16 Existing Backlog as of 31-Dec-2013 (€bn) 2013 Construction Backlog by Geography 2013 Results & 2014-17 Industrial Plan Presentation Middle East 9% €29bn Asia % €1bn Oceania 2% Italy €6bn 33% Africa €1bn 31% Europe LatAm 10% North 14% America 2% 2013 Construction Backlog by Segmen
Slide 17: 2013 Pro-Forma Results Highlights
17 2013 Pro-Forma Results Highlights Pro-forma Salini Impregilo 2012PF 2 2013PF Δ% 2013 Results & 2014-17 Industrial Plan Presentation (normalized¹) Total Revenues (€m) 3,496 3,970 +14% EBITDA (€m) 210 426 +103% EBITDA % 6.0% 10.7% EBIT (€m) 39 234 6x EBIT % 1.1% 5.9% Net Income (€m) (11
Slide 18: Salini Impregilo Consolidated Net Financial Position
Salini Impregilo Consolidated Net Financial Position 18 Comments 2013 Results & 2014-17 Industrial Plan Presentation NFP equal to €332m: Net Financial Position (€m) 2013 (Post PPA) PTO debt was reduced by: Cash & Equivalents 1,132 — Disposals — Dividend Cash-in Current Financial Activities 233
Slide 19: Table of Contents
2013 Results & 2014-17 Industrial Plan Presentation Table of Contents I. Salini Impregilo: Unique Positioning II. Execution Track Record and 2013 Results III. 2014 Guidance and Business Plan Targets March 2014
Slide 20: 2014 Guidance and Business Plan Targets
2014 Guidance and Business Plan Targets 20 Pro-forma 2013 2014 Guidance 2017 Targets 2013 Results & 2014-17 Industrial Plan Presentation €7bn €4.0bn ~10% growth Revenue 13.5% growth (on same perimeter) >95% covered by 2013 backlog >60% plan revenues covered by 2013 backlog €426m EBITDA 10.7% margin
Slide 21: Main Commercial Assumptions
21 Main Commercial Assumptions 2013 Results & 2014-17 Industrial Plan Presentation The value of new orders has been estimated with a bottom up approach: – Management has estimated the value of the so called Reference Market for Salini Impregilo by – Business segments where the group is active – Re
Slide 22: Reference Market Analysis
Reference Market Analysis 22 2013 Results & 2014-17 Industrial Plan Presentation €35.2tr €12.3tr €8.5tr €1.1tr Other Segments Residential Other Commercial Other Selected Hydro Market Pro Quota Infrastructure Roads tenders pro Reference Rail quota worth March 2014 Market approximately €550bn Large Pr
Slide 23: Ability to Identify and Win New Orders
Ability to Identify and Win New Orders 23 How and Where to Grow Cumulated New Orders by Geography 2013 Results & 2014-17 Industrial Plan Presentation Italy Asia & 6% Oceania 13% Middle Europe East 21% 16% Total New Orders Coverage Over the Plan Period CIS 6% Africa LatAm ~€550bn 18% ~5% of ~67% 13%
Slide 24: Top Line Expectations Supported by Existing Backlog
Top Line Expectations Supported by Existing Backlog 24 2013 Results & 2014-17 Industrial Plan Presentation Plan Revenues from Current Backlog (€m) 8.000 6.000 >70% ~95% 4.000 2.000 0 FY14P FY15P FY16P FY17P March 2014 Revenues from Current Backlog Revenues from New Orders Backlog made up of longer
Slide 25: Salini Impregilo: Strengths of "Campione Nazionale"
Salini Impregilo: Strengths of “Campione Nazionale” 25 Our Unique Proposition and Why it Matters 2013 Results & 2014-17 Industrial Plan Presentation World Leading Pure Play Construction Long, successful track record 1 Group Focused on Large Heavy Significant barriers to entry Engineering Civil P
Slide 26: Disclaimer
Disclaimer 26 The Presentation has been prepared by Salini Impregilo S.p.A. (“Salini Impregilo” or the “Company”) solely for the use of presenting the 2014- 2013 Results & 2014-17 Industrial Plan Presentation 2017 Business Plan and the financial results for the year 2013. Unless otherwise indicate
Slide 27: Appendix
Appendix Table of Contents March 2014 2013 Results & 2014-17 Industrial Plan Presentation
Slide 28: Backlog and Revenues Composition Evolution
Backlog and Revenues Composition Evolution 28 2013 - 2017E Backlog by Geography 2013 - 2017E Revenues by Geography 2013 Results & 2014-17 Industrial Plan Presentation 2% 2% 5% 2% 2% 8% Asia Asiaand and 5% 8% Asia and 2% 8% 8% Asia and 2% 8%8% Asia and Oceania Asia and Oceania Oceania 8% Oceania 8% O