Salcef Group — Earnings Release 2021

May 13, 2021

Informazione Regolamentata n. 20176-57-2021		Data/Ora Ricezione 13 Maggio 2021 13:10:26	MTA
Societa'	:	SALCEF GROUP S.P.A.
Identificativo Informazione Regolamentata	:	147083
Nome utilizzatore	:	SALCEFGROUPN02 - Valeriano Salciccia
Tipologia	:	REGEM
Data/Ora Ricezione	:	13 Maggio 2021 13:10:26
Data/Ora Inizio Diffusione presunta	:	13 Maggio 2021 13:10:27
Oggetto	:	The Board of Directors of Salcef Group S.p.A. approved the interim report as at 31 March 2021
Testo del comunicato

Vedi allegato.

PRESS RELASE

The Board of Directors of Salcef Group S.p.A. approved the interim report as at 31 March 2021:

• ❖ Consolidated revenues of €93.4 million (+37.8% compared to 1Q 2020)
• ❖ EBITDA of €21.2 million (+23.8% compared to 1Q 2020)
• ❖ Adjusted net profit of €11.6 million (+41.4%, it was €8.2 million in 1Q 2020)
• ❖ Positive Net Financial Position at €59.7 million (was €20 million at 31 December 2020)
• ❖ Backlog at €567 million (was €602 million at 31 December 2020)

In the same meeting, the Board of Directors also:

❖ starting the share buyback programme

Rome, 13 May 2021 – Salcef Group S.p.A. (the "Company") announces that today the Board of Directors has approved the interim report as at 31 March 2021.

Interim financial report as at 31 March 2021

During the first quarter of 2021, Group revenue increased by €25.6 million (+37.8%), from €67.8 million to €93.4 million. This increase is partly due to the change in the scope of consolidation brought about by the acquisition in September 2020 of Delta Railroad Construction Inc. and partly to recovery of production loss recorded in the first quarter of 2020 due to the Covid-19 pandemic.

EBITDA for the first quarter amounted to €21.2 million compared to €17.1 million in the same period of 2020 (+23.8%). The different revenue mix compared to Q1 2020, as a consequence of the consolidation of the US company, caused a slight reduction in marginal profitability from 25.3% to 22.7%.

EBIT for the period also increased from €12.3 million to €14.6 million (+18.7%) after absorbing higher depreciation and amortisation due to the commissioning of new plants and machineries acquired in previous years.

Adjusted net profit was up 41.5% in the quarter, reaching €11.6 million compared to €8.2 million in Q1 2020. Adjustments relate to the change in the fair value of the "Warrants in compendio e integrativi" outstanding at the end of the quarter and to the recognition of deferred tax assets.

The net financial position at 30 March 2021 - adjusted with the exclusion of financial liabilities relating to the "Warrants in compendio e integrativi" - was positive by €59.7 million, up almost €40 million on the €20 million recorded at 31 December 2020. This growth is attributable to the generation of cash and, for 36.4 million euros, to the capital increase resulting from the conversion of a portion of warrants at the beginning of the year. Moreover, in the first quarter, there was the purchase of treasury shares for approximately €1.9 million.

The backlog at 31 March 2021 was € 567 million and was almost entirely attributable to the Group's core operating Business Units, in particular Track and Light Civil Works for approximately 61% and Energy for approximately 34%. This order backlog guarantees a visibility of over 20 months, equal to about 1.67 times the turnover. The BtoB (book to bill) in the first three months stood at 0.62 and is particularly significant considering that the Salcef Group is awaiting the outcome of numerous tenders.

Starting the Programme for the Purchase and Disposal of Treasury Shares

As partial implementation of the authorisation approved by the Shareholders' Meeting of 29 April 2021, the Board of Directors resolved to initiate the programme for the purchase and disposal of treasury shares (the "Programme")

Purpose of the Programme

The Programme is designed to (i) incentivise and build the loyalty of employees, collaborators, directors of the Company, subsidiaries and/or other categories of persons chosen at the discretion of the Board of Directors; (ii) carry out transactions such as the sale and/or exchange of treasury shares for the acquisition of equity investments, direct or indirect, and/or real estate and/or the conclusion of agreements with strategic partners and (iii) create a so-called "securities warehouse", useful for any future extraordinary financial transactions.

The Board of Directors may provide for additional or different purposes of the Programme, in accordance with the resolutions of the Shareholders' Meeting and the applicable laws and regulations, and in this case the market shall be promptly informed.

Maximum number of shares to be purchased and maximum amount allocated to the Programme

Pursuant to the limits set forth by the aforementioned Shareholders' Meeting resolution of 29 April 2021, purchases of treasury shares shall be made, even in several tranches, for a maximum of no. 200.000 shares and in any case to such an extent that at any time, taking into account the ordinary shares of the Company from time to time held in the portfolio by the Company and its subsidiaries, such shares do not exceed a total of 10% of the Company's share capital.

The maximum amount of the Company's ordinary shares that may be purchased under [the first tranche] of the Programme has been determined to be € 18 per share.

Pursuant to Article 2357, paragraph 1, of the Italian Civil Code, purchases of treasury shares must in any case be made within the limits of the distributable profits and available reserves resulting from the latest approved financial statements at the time of each transaction.

As of today, the Company holds n. 298,243 treasury shares.

Methods through which purchases can be made and purchase price

The Company has resolved to appoint Banca Akros to execute the aforementioned Programme in full independence and in compliance with the constraints arising from the applicable regulations, accepted market practices and within the limits of the aforementioned resolutions.

The purchase transactions will be carried out in compliance with the principle of equal treatment of shareholders provided for in Article 132 of the Consolidated Law on Finance, according to the procedures set forth in Article 144-bis, paragraph 1, letter b) of the Consob Issuers' Regulations (including through subsidiaries).

Purchases will be made in the terms established by market practices permitted by Consob In addition, share purchase transactions may also be carried out in the manner set out in Article 3 of Commission Delegated Regulation (EU) No 2016/1052 in order to benefit, if the conditions are met, from the exemption set out in Article 5(1) of Regulation (EU) No 596/2014 on market abuse with regard to insider dealing and

market manipulation. In order to benefit from this exemption, no more than 25% of the average daily volume of shares traded on the trading venue where the purchase is made during the 20 trading days preceding the date of purchase shall be purchased on each trading day.

Duration of the programme

Purchases of treasury shares must be made, also in several tranches, within 24 October 2022, i.e. within 18 months from the date of the resolution of the Shareholders' Meeting. The duration of the authorisation to dispose of the same shares is unlimited.

The Company is not obliged to execute the Programme and, if initiated, the Programme may be suspended, terminated or modified at any time, for any reason and without notice, in accordance with applicable laws and regulations.

Further information

Disposals may be made without any time constraints within the limits allowed by the laws, regulations and accepted practices in force at the time, where applicable, as well as in line with the purposes indicated above and with the strategic lines that the Company intends to pursue.

Any subsequent amendments to the aforesaid Programme shall be promptly notified by the Company to the public, in the manner and terms provided for by applicable law.

Any transactions carried out and details thereof shall be disclosed to the market in the manner and terms set forth in applicable law.

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The manager responsible for preparing the company's financial reports, Fabio De Masi, declares, pursuant to paragraph 2 of Article 154 bis of the Consolidated Law on Finance, that the accounting information contained in this press release corresponds to the document findings, books and accounting records.

The Group's results for the first three months of 2021 will be presented to the financial community on 14 May 2021 during a conference call at 11.30 a.m. CET

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This press release is available on the Salcef Group website https://www.salcef.com/, in the Investor Relations/Price Sensitive Press Releases section. ***

Salcef Group is an Italian corporate group employing over 1,400 people and operating on 4 continents; it is an international railway industry leader in the maintenance and construction of railway and urban transport infrastructure systems, as well as in the construction and sale of rolling stock and the production of reinforced concrete structures. Founded in 1949, the company became wholly owned by the Salciccia family in 1975, and it is currently led by the brothers Gilberto and Valeriano Salciccia, in the roles of Chairman and Chief Executive Officer respectively. Railway and metropolitan railway line maintenance and renewal account for 80% of operations and are the core business of Salcef, which in the last 20 years has renewed over 7,000 km of track and is the global leader in track renewal. Salcef Group has a consolidated business founded on a history of more than 70 years, conducted by highly skilled staff in receipt of continual training. From the 2020 IFRS consolidated financial statements Salcef achieved € 340.3 million Value of Production with a net profit of € 41.3 million.

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Contact:

Salcef Group S.p.A. Investor Relations Diego Paniccia Email: investor.relations@salcefgroup.com Tel: +39 06 416281

Barabino & Partners Stefania Bassi Email: s.bassi@barabino.it Tel: +39 335 62 82 667 www.barabino.it