Slide 1: FY16 Financial Results
New Gerald Desmond Bridge in Long Beach, California FY16 FINANCIAL RESULTS 16 March 2017
Slide 2: Financial Update
Financial Update Massimo Ferrari General Manager Finance & Corporate Group CFO FY16 presentation 2
Slide 3: Consistent delivery story overtime
Consistent delivery story overtime 2014 2015 2016 Guidance Actual Guidance Actual Guidance Actual +11% +12% REVENUES +10% >15% >€6.1B €6.125M €4.2B €4.7B EBITDA margin >10% 10.4% ~ 10.5% 10.3% >9% 9.2% EBIT margin >5% 6.2% ~5.5% 5.8% In line In line Book to bill Book to bill Construction Orders €5.9
Slide 4: New orders: €7.3 billion
New orders: €7.3 billion Consolidation Value GEOGRAPHICAL & SECTOR BREAKDOWN Project Country (€mln) Koysha Ethiopia 2,483 Australia Rogun HPP-Lot 2 Tajikistan 1,747 11% Perth rail line Australia 790 Africa Americas 34% South Al Mutlaa City Development Kuwait 467 23% Florianopolis Brazil 99 CSC vario
Slide 5: Backlog evolution
Backlog evolution CONSTRUCTION BACKLOG INCREASE €/BN DECEMBER 2016 CONSTRUCTION BACKLOG: €29.4 BN 39 LatAm Other 10% Africa 15% HPP 24% 24% 28.1 29.4 Roads & Italy Highways 29% 15% Middle East 13% 2015 2016 2019 North Asia & Europe Australia Rails & target America 5% 11% Undergrounds 8% 46% Large an
Slide 6: FY16 Group financial highlights
FY16 Group financial highlights MANAGEMENT VIEW € million 2016 2015 change Revenue 6,125 6,051 1.2% Ebitda 561 512 9.5% Ebitda margin 9.2% 8.5% Ebit 300 281 6.6% Ebit margin 4.9% 4.6% Minorities [€/m] 2016 Financial Expenses (87) (104) -16.6% Line 3 Riyadh (Saudi Arabia) 9 Lane 11 Holdings (15) 0 Al
Slide 7: Financial expenses
Financial expenses FINANCIAL EXPENSES [€/MLN] 1 Financial charges, which in FY16 included 2015 2016 €25 million of amortized costs, increased Restated Restated mainly due financing for Lane’s acquisition. Management Management €/m view view Profit & Loss on exchange rates reflects positive impact of
Slide 8: Reducing gross debt and extending debt maturity
Reducing gross debt and extending debt maturity DEBT MATURITY PROFILE NET FINANCIAL POSITION Dec-15 Bank debt bond Unaudited € million Dec-16 Jun-16 Proforma 600 Cash & Cash Equivalents 1,603 1,177 1,459 Other Financial Assets 386 433 380 283 Total Cash & Other Financial Assets 1,989 1,610 1,839 Ban
Slide 9: Cash flow generation
Cash flow generation Free Cash Flow before dividends [€/mln] 561 (136) (200) (76,0) (61,0) 88,0 EBITDA Change in NWC CAPEX (net of disposal) Current taxes paid Net financial expenses (not Free cash flow before including ammortized fees) dividends € 88 million of Free Cash Flow before dividends gener
Slide 10: Infrastructure market trends
Infrastructure market trends Pietro Salini Chief Executive Officer FY16 presentation 10
Slide 11: Global construction market trends
Global construction market trends MACROECONOMICS TRENDS Construction investment growth is strongly correlated with GDP evolution in all analysed markets Strong development of mega cities and increased urbanization especially in Emerging. Countries would foster request for infrastructure Emerging mar
Slide 12: US infrastructure renovation trends
US infrastructure renovation trends Average age of 84,000 dams in USA is 52 years: nearly 14,000 high- hazard dam in 2012 Dams Association of State Dam Safety estimates a 21 B$ investments to repair hazardous dam Average age of 607,380 bridges in USA is 42 years Bridges Federal Highway Admin
Slide 13: Lane current US pipeline
Lane current US pipeline Significant upcoming opportunities for Lane WA MT ME ND MN OR ID WI SD MI NY WY Active Pursuit NV IA PA NE OH CA UT CO IL IN WV $3.7 billion KS MO VA KY TN NC NM OK AZ AR AL GA SC Development MS TX LA $6.3 billion AL FL 0 – 400 $bn Project size (Group share) €850 mln new ord
Slide 14: Global construction market 2017-2019
Global construction market 2017-2019 GLOBAL CONSTRUCTION MARKET 2017-2019: €21.4 TRILLION GEOGRAPHICAL AREA LatAm, Africa, 6% 1 9% Middle East, 13% Total market built North bottom-up with all 2 America, Asia & 23% Australia, projects explicitly Group’s core 9% identified construction 21,435 market -
Slide 15: 2017 Orders intake
2017 Orders intake As at today acquired more than €1.7bn - approximately 17% of 2017 target of which more than 46% in USA FY2017 EXPECTED ACQUISITIONS • UAE - Al Makthoum Airport €70mln breakdown by sector • USA - I70 Reconstruction €110mln 11% HEP • USA - Turnpike widening Osceola €167mln 30% Rai
Slide 16: 2017 Backlog evolution
2017 Backlog evolution TOTAL BACKLOG EVOLUTION BREAKDOWN BY SECTOR Dec 2016 Dec 2017 9% 11% 23% 20% 14% 13% HEP Rails 14% Roads 18% Other 39% 41% Lane TOTAL BACKLOG EVOLUTION BREAKDOWN BY GEOGRAPHY Dec 2016 Dec 2017 Italy 19% 16% Europe 29% 34% Northam 10% 8% Latam Middle East 8% 10% Asia & Australi
Slide 17: Market leader for large-scale projects
Market leader for large-scale projects AVERAGE SIZE OF TOP 10 PROJECT IN LAST TWO YEARS – PRO QUOTE €/mln 694 574 365 Salini Impregilo is the market leader in managing large scale 240 projects 130 Peer 1 Peer 2 Peer 3 Peer 4 2015 GEOGRAPHICAL REVENUE DISTRIBUTION 6% 2% 4% 10% With Lane acquisition S
Slide 18: Reshaping our geographic distribution
Reshaping our geographic distribution GEOGRAPHICAL REVENUE DISTRIBUTION 2014 2016 2017 33% 30% 25% 25% 23% 17% 16% 14% 14% 8% 7% 5% 6% 3% 4% Africa Middle East Europe Asia & Australia USA LatAm Italy USA has become our first single country market expected to reach 30% in 2017 Top 10 projects revenue
Slide 19: Guidance 2017
Guidance 2017 Pietro Salini Chief Executive Officer FY16 presentation 19
Slide 20: Guidance 2017
Guidance 2017 Healthy and still expanding infrastructure market worldwide Risk/return approach designed to pursue best market opportunities with better geographical and business risk diversification Group to grow in 2017 faster than peers pursuing cash generation and gross debt reduction FY16
Slide 21: Outlook 2017
Outlook 2017 GUIDANCE 2017* > 1.1x BOOK-TO-BILL ~ € 100 mln GROSS DEBT REDUCTION > 10% > 5% REVENUE GROWTH EBIT margin Business Plan 2016 – 2019 Targets Reconfirmed (*) at constant exchange rates FY16 presentation 21
Slide 22: Financial Appendix
Financial Appendix FY16 presentation 22
Slide 23: Income statement
Income statement (€/mln) 2016 2015* change Operating revenue 5,760.4 4,624.1 1,136.3 Other revenue 123.5 146.2 (22.8) Total revenue 5,883.8 4,770.3 1,113.5 Costs (**) (5,347.5) (4,287.7) (1,059.8) EBITDA 536.3 482.6 53.7 EBITDA% 9.1% 10.1% Amortisation and depreciation (260.8) (215.1) (45.8) EBIT 27
Slide 24: Statement of financial position
Statement of financial position (€/mln) Dec-16 Dec-15* change Non-current assets 1,173.3 919.4 253.8 Goodwill 175.2 0.0 175.2 Non-current assets held for sale 6.0 41.6 (35.6) Fixed Assets 1,354.5 961.0 393.5 Inventories 270.6 268.1 2.5 Contract work in progress 2,367.3 1,775.8 591.5 Progress payment
Slide 25: Net financial position
Net financial position (€/mln) Dec-16 Dec-15* change Non-current financial assets 62.5 67.8 (5.4) Current financial assets 323.4 312.1 11.3 Cash and cash equivalents 1,602.7 1,410.8 191.9 Total cash and cash equivalents and other financial assets 1,988.6 1,790.7 197.9 Bank and other loans (866.4) (7
Slide 26: Disclaimer
Disclaimer 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 uncert
Slide 27: Thank you
we build value Thank you FY16 presentation