Salcef Group — Investor Presentation 2021

Dec 1, 2021

Company Presentation

Mid & Small in Milan 2021

Milan, 2 December 2021

Speakers

Valeriano Salciccia Chief Executive Officer

Fabio De Masi Chief Financial Officer

Alessio Crosa

IR & Sustainability Manager

3

Agenda

02

03

Salcef Group Overview 01

9M 2021 Results 04

05

Business Units

Sustainability at Salcef

Sector and Market highlights

Useful documents & Contacts 06

Salcef Group Overview

Salcef Group in a nutshell

A unique business model to provide 360° solutions to the industry

Overview of our strategic markets

	ITALY	GERMANY	UNITED STATES
ORK WAY W RAIL NET	~ 24,500 km	~ 50,000 km	~ 221,000 km Almost entirely owned and managed by Class I railroads1
MPETITIVE O ARI SCEN O C	Few competitors with domestic operations mainly focused on specific areas	Very fragmented, with few big players and a number of small/micro local companies	Very fragmented, with big players and smaller companies with state-wide focus
MERS N AI O M CUST	(100% state-owned)	(100% state-owned)	Class I Local Transit railroads Authorities (100% state-owned)
ONTRACTS OF TYPE C	Mainly long-term contracts with framework agreement approach	Significant number of single-activity contracts of relatively small size
OCESS DER TEN PR	Public Tenders only Public Tenders only		Public Tenders and private negotiations
MENT CURRENT PLAN NVEST I	See • RFI Investment Plan 2019-2023 (€ 25 Bn) dedicated slides • NRPP 2020-2026 (€ 28 Bn) • Additional Public Investments 2022-2036 to come	DB Investment Plan 2020-2030 (€ 86 Bn)	\$ 1.2 Tn US Bipartisan Infrastructure Deal (\$ 66 Bn for passenger rail and \$ 39 Bn for public transit)

Strategy highlights

Strengthening of the competitive positioning

• Non-organic growth in the key strategic countries for the Group (Italy, Deutschland, US)

Diversification of the business

• Widen Group presence mainly in the railway industry and also in adjacent sectors characterized by same technological background but different customer bases and markets

Investments in new high technology products and on efficiency of current fleet

• Ordinary Business: maintenance of existing production capacity
• Business upgrade: new plants, machinery or equipment to increase production capacity
• New business line: design and production of new products to open new strategic business lines

ESG priorities

• Environmental: Invest in more efficient operations to reduce emissions, also using more energy from renewable sources
• Social: Assure best-in-class working conditions within and outside the organization, providing employees and collaborators with growth opportunities and implementing organizational and control systems to make operations safer
• Governance: Adopt industry-leading management systems and promote a sustainability culture among all the stakeholders

Business Units

Track & Light Civil Works

Track Maintenance Track Construction

Extraordinary Maintenance

Light Civil Works

Ordinary Maintenance

Track & Light Civil Works

Strenghts

• High barriers to entry
• Huge equipment investments
• (Salcef fleet substitution value over than € 400 mln)
• Manpower specialization
• Clients' PQ and certifications
• Highly demanding working conditions
• Around 800 employees involved

9M 2021 operational update

• 9M 2021 Revenues at € 220.6 Mln, up 31.7% YoY mainly due to:
• Consolidation of Delta
• Ramp-up of track renewal activities in Egypt on the Cairo Alexandria line and further progress in Abu Dhabi for track construction on the Ruwais - Ghuweifat railway
• First activities within the new 3-year framework agreements with RFI
• Execution of recently signed contracts for light civil works in Italy
• New contracts for trackworks in Germany
• Going forward, activities will be focused on executing new framework agreements and other domestic/international contracts

Energy, Signalling & Telecommunication

Energy, Signalling & Telecommunication

Activities

• Railway catenary, signalling, substations, telecommunication construction, ordinary & extraordinary maintenance (renewal activities)
• Construction and maintenance of infrastructure for high and medium voltage electricity transmission (aerial and underground)

Strenghts

• High barriers to entry
• Clients' PQ and certifications
• Highly demanding working conditions
• Huge Italian and European investment plan (Terna 2021–2025 plan with € 8.9 Bn investments, + 22% vs. previous Plan)

Served Markets

9M 2021 operational update

• 9M 2021 Revenues at € 41.9 Mln, up 45.9% YoY on the back of ongoing production on main contracts
• Kick-off of BU activities in Germany
• Extension of a contract with Terna for Power Transmission in Northern Italy
• Going forward, activities will be focused on executing current agreements in both business segments

Heavy Civil Works

Heavy Civil Works

• Multidisciplinary railway construction projects (civil and technological works)
• Doubling of existing railway line
• Construction of railway stations and buildings
• Bridges, viaducts and tunnels
• Environmental mitigation works

Strenghts

• Vertical integration with other Salcef Group BUs
• Salcef Group competitiveness, and all the qualifications for general and specialized works

Activities 9M 2021 operational update

• 9M 2021 Revenues at € 20.5 Mln, up 31.1% YoY mainly due to:
• Final activities on some contracts in Italy recorded in 1H
• Ramp-up of a sizeable contract in Germany
• Going forward, production volumes mainly driven by activities in Germany and the execution of the civil works portion of the new Italian High Speed contract

Served Markets

Railway Materials

Railway Materials

• Manufacturing of prestressed concrete railway sleepers
• Manufacturing of slab-track systems for unballasted tracks (metro, tramway and railway)
• Manufacturing of concrete segments for tunnels (metro lines)

Strenghts

• Clients' PQ and certifications
• Vertical Integration with Track & Light Civil Works BU
• Extensive development possibilities for unballasted solutions
• Development of new solution and patents

Served Markets

Activities 9M 2021 operational update

• 9M 2021 Revenues at € 29.0 Mln, up 43.9% YoY mainly due to a material step up in production volumes, supported by deliveries within recent contracts with Italian regional rail operator
• Testing phase of slab-track prototypes and construction of new production lines proceeding as per plan
• Going forward, activities at Overail focused on reaching operational excellence and enlarging the range of products

Railway Machines

• Design of new railway equipment and construction technologies
• Maintenance and revamping of railway equipment
• Construction of new railway wagons and equipment
• Renting of equipment and tool

Activities Strenghts

• Clients' PQ and certifications
• Vertical integration with Track & Light Civil Works and Energy, Signalling & Telecommunication BUs
• Market with high margin and few competitors
• Development of new solutions and patents

Served Markets

9M 2021 operational update

• 9M 2021 Revenues at € 7.7 Mln, up 136.3% YoY mainly due to:
• Consolidation of Delta
• Sales to third-party customers, both Delta in the US and SRT in Italy
• New sale contracts for a third-party Italian customer

• Going forward, activities will continue to be focused on expanding the third-party market and supporting Group companies

• Pre-feasibility and feasibility studies

• Preventive technical tests and market research into materials
• Topographic surveys
• Environmental impact studies
• Project management and engineering consulting services

Activities Strenghts

• Clients' PQ and certifications
• Vertical integration with Track & Light Civil Works and Energy, Signalling & Telecommunication BUs
• Development of new solutions and patents

Served Markets

Sector & Market Highlights

High barriers to entry, mainly due to availability of operating fleet and highly-specialized workforce as well as specific qualifications required by customers

Great visibility thanks to few multi-year contracts

Counter-cyclical business, especially in its maintenance component

Long-term investments in construction, upgrade and renewal of rail infrastructures structurally growing globally

Italian expertise in the sector among the best in the world

Technologies and capabilities in common with adiacent sectors

Sustainable mobility at the core of Governments' policies worldwide, with railways increasingly chosen for urban/ short-medium haul passenger transportation and for logistics

EU Green Deal seeks a 90% reduction in GHG emissions in transportation by 2050

Italian Recovery and Resilience Plan with > 30 € Bn to the railway sector by 2026

US "Bipartisan Infrastructure Deal"

includes 66 \$ Bn to improve and expand the nation's passenger and freight rail network and 39 \$ Bn for the upgrade of public transit over a decade

Germany to invest 86 € Bn in the upgrade of its rail network by 2030

2021 European year of rail

Our future mobility needs to be sustainable, safe, comfortable and affordable.

Rail offers all of that and much more!

The EU year of rail gives us the opportunity to re-discover this mode of transport.

Through a variety of actions, we will use this occasion to help rail realize its full potential.

I invite all of you to be part of the EUROPEAN YEAR OF RAIL!

European Commisioner of Transport Brussels, 30 December 2020

Regional Market expectation until 2025

Source: World Rail Market Study 2020-2025

Global and European Railway Market

Source: World Rail Market Study 2020-2025

World railway Infrastructure: 1,7M km of urban and interurban tracks.

Western Europe, Nafta, Asia Pacific: together comprising 72% of the global rail track infrastructure.

2017 – 2019: new infrastructure in operation for 23.299 km (+1,4%), primarily in the mainline and VHS track.

World Railway Market European Railway Market

Source: 7th report monitoring developments of the rail market under Article 15, Paragraph 4 of Directive 2012/34/EU of the European Parliament and Council

Europe: more than € 35Bn invested annually, around 50% for maintenance and renovation.

Germany: the value of the Deutsche Bahn 10-year Business Plan is € 86 Bn with an increase of 54%. Compared to the last BP is "the biggest railway modernization program".

Focus on Italian National Recovery and Resilience Plan (1/3)

Mission 3 Infrastructure for a sustainable mobility	EU Recovery and Resilience Facility (RRF)	Complementary Fund	TOTAL
Component 1: Investments on railway network	€ 24.8 Bn	€ 3.2 Bn	€ 28 Bn	€ 31.5 Bn
Component 2: Integrated Logistics	€ 0.6 Bn	€ 2.9 Bn	€ 3.5 Bn

Stations; 0,7 Bn Regional Lines;

0,9 Bn

	TOTAL	2020	2021	2022	2023	2024	2025	2026
1.1 High-speed railway connections to the South for passengers and freight	4,640	52	125	359	748	919	1,125	1,313	TARGET: 274 km of new HS lines
Napoli - Bari	1,400	30	80	143	180	271	352	344
Palermo - Catania - Messina	1,440	22	25	100	199	283	439	372
Salerno - Reggio Calabria	1,800	0	20	116	369	365	334	596
1.2 High-speed lines	8,570	550	881	904	758	2,030	1,935	1,512	TARGET: 274 km of new HS lines
Brescia - Verona - Padova	3,670	152	341	440	76	900	1,096	665
Liguria - Alpi	3,970	398	532	454	636	886	559	505
Verona - Brennero	930	0	8	10	46	244	280	342
1.3 Cross-country connections	1,580	2	9	52	175	301	427	614	TARGET: 87 km of new lines
Orte - Falconara	510	0	1	27	61	92	125	204
Roma - Pescara	620	0	2	16	57	125	186	234
Taranto - Metaponto - Potenza - Battipaglia	450	2	6	9	57	84	116	176
1.4 ERTMS	2,970	0	50	299	425	563	705	928	TARGET: 3,400 km of lines equipped with ERTMS
1.5 Upgrading metropolitan railway junctions and key national rail networks	2,970	172	189	280	320	616	715	680	TARGET: 1,280 km of lines upgraded
1.6 Upgrading regional railways	936	41	116	30	158	254	152	185	TARGET: 680 km of lines enhanced
1.7 Improvement, electrification and more resilience for Southern railways	2,400	0	53	187	217	506	700	737	TARGET: 573 km of lines enhanced
1.8 Enhancement of Southern Italian train stations	700	0	21	64	103	195	192	125	TARGET: 54 stations upgraded
	24,766	817	1,443	2,175	2,903	5,384	5,951	6,094

Focus on Italian National Recovery and Resilience Plan (2/3)

Mission 3 Infrastructure for a sustainable mobility	EU Recovery and Resilience Facility (RRF)	Complementary Fund	TOTAL
Component 1: Investments on railway network	€ 24.8 Bn	€ 3.2 Bn	€ 28 Bn	€ 31.5 Bn
Component 2: Integrated Logistics	€ 0.6 Bn	€ 2.9 Bn	€ 3.5 Bn

	TOTAL	2020	2021	2022	2023	2024	2025	2026
Upgrading regional railways (which are not owned/operated by RFI)	1,550	0	150	360	405	377	248	10
of regional railways Securing	454
Upgrade and renewal of rolling stock fleet	278
Enhancement of regional rail network with simultaneous upgrade and/or renewal of rolling stock fleet	140
Enhancement of regional railways	677
Renewal of rolling stock	200	0	60	50	40	30	20	0
Safe roads - Implementation of a dynamic monitoring system for remotely controlling bridges, viaducts and tunnels (A24-A25)	1,000	0	150	150	90	337	223	50
Safe roads - Implementation of a dynamic monitoring system for remotely controlling bridges, viaducts and tunnels (ANAS)	450	0	25	50	100	100	100	75
	3,200	0	385	610	635	844	591	135

• Already allocated through a decree of the Ministry of sustainable infrastructures and mobility, to 29 projects, with the overall amount allocated 81% to the South and 19% to the Centre-North
• With the only exceptions of the upgrade and renewal of the rolling stock fleet and some technological works in the signalling field, all the other projects are potentially in the scope of Group's core business

Focus on Italian National Recovery and Resilience Plan (3/3)

Component 2: Renewable Energy, hydrogen, power grids and sustainable mobility	Facility (RRF) € 23.8 Bn	€ 1.4 Bn	€ 25.2 Bn	€ 59.5 Bn
Mission 2 Green revolution and ecological transition	EU Recovery and Resilience	Complementary Fund	TOTAL

FOCUS ON AREA # 4 – DEVELOP MORE SUSTAINABLE LOCAL PUBLIC TRANSPORTATION
-----------------------------------------------------------------------------	--

	TOTAL	2020	2021	2022	2023	2024	2025	2026
4.1 Encouraging cycling	600	0	0	130	225	100	80	65
4.2 Rapid mass transportation development	3,600	0	180	476	709	967	738	530
of 4.3 Installation eletric charging infastructure	741	0	0	0	400	150	141	50
of fleets 4.4 Renovation bus and green trains	3,639	0	0	440	594	931	979	695
	8,580	0	180	1,045	1,928	2,148	1,939	1,340

SUBWAYS

€ 0.7 Bn for 11 km of new subways, rolling stock and technical/civil works

TRAMWAYS

€ 2 Bn for 85 km of new tramways, rolling stock and technical/civil works

TROLLEY WAYS and FUNICULARS

€ 0.9 Bn for 120 km of new trolley ways and 15 km of new funiculars

• Projects will be mainly focused on the metropolitan areas of the major Italian cities.
• Expenditures have been already agreed between the Ministry of sustainable infrastructures and mobility and the Local Authorities. Final Decree expected soon

Recent newsflow reassuring on NRRP implementation

23 September	Decree of the "Ministry of sustainable infrastructures and mobility"
	Out of the € 3.2 Bn of the Complementary Fund devoted to the first component of Mission 3, € 1.55 Bn assigned to the upgrade and enhancement of regional railway networks
29 September	projects1 New tenders for NRRP
	In a panel at EXPO Ferroviaria, RFI's CEO and MD stated that by April 2022 RFI will launch 55 tenders for an overall value of € 6 Bn
15 October	Additional resources to RFI
	Within a Law Decree approved by the Council on Ministry, RFI received additional € 1.3 Bn, to be used in 2021, to speed up projects on railway network, also providing more down-payments to the contractors
19 October	projects2 Design phase of NRRP
	In a conference, RFI's CEO and MD stated that by January 2022 the design phase of new projects worth € 12 Bn will be completed. Tenders for these projects will be launched during 2H 2022
27 October	Law Decree "Recovery"
	Within a Law Decree approved by the Council on Ministry to support the implementation of the NPRR, all the procedures for the approval of public investments in railway infrastructures have been simplified
9 November	NRPP funds for regional lines assigned to projects
	mln3 In a Decree of the "Ministry of sustainable infrastructures and mobility", € 836 dedicated to the upgrade of regional lines have been allocated to projects in Umbria, Friuli Venezia Giulia, Piedmont, Puglia, Campania
26 November	2020-2021 update of the 2017-2021 Programme Contract between MIMS and RFI signed
	Update of the Investments portion, worth € 31.7 Bn, to factor in the recent developments and funds, also in light of the implementation of the NRRP initiatives

^1. Source: https://www.fsnews.it/it/focus-on/infrastrutture/2021/9/28/rfi-55-bandi-gare-da-6-miliardi.html 2. Source: https://www.fsnews.it/it/focus-on/infrastrutture/2021/10/19/rfi-progetti-12-miliardi-entro-gennaio-2022.html

^3. The remaining € 100 mln have been already assigned to 2 specific projects

9M 2021 Results

9M 2021 Highlights

€ Mln

Revenues

€ Mln

• Consolidated Revenues at € 319.7 Mln, up 35.9% YoY mainly due to:
• Favourable comparison with 9M 2020, impacted by reduction of production due to Covid-19 crisis (€ 12.2 Mln)
• Change in perimeter with the consolidation of Delta (€ 30.4 Mln¹ ) and, to a lesser extent, Bahnbau Nord (€ 3.7 Mln)
• Without considering those effects, remarkable organic growth at 16.3%

	9M 2021	9M 2020	Δ (%)
Track and Light Civil Works	220. 6	167.5	31.7%
Energy, Signalling & TLC	41.9	28.8	45.9%
Heavy Civil Works	20.5	15.6	31.1%
Railway Materials	29.0	20.1	43.9%
Railway Machines	7.7	3.3	136.3%
Total	319.7	235.3	35.9%

Revenues by Country

€ Mln

• Revenues coming from outside Italy reaching 27% of the total, further growing compared to the 24% recorded in 1H 2021, mainly driven by:
• North America, now at 10% with the consolidation of Delta
• Further growth of the contribution from Middle East, thanks to ongoing activities in Abu Dhabi
• North Africa further growing thanks to the ramp-up of the new contract in Egypt
• Slowdown of Europe, partially offset by the growing contribution from Germany

	9M 2021	9M 2020	Δ (%)
Italy	234.5	190.0	23.4%
Europe [Excluding Italy]	25.5	37.9	(32.6%)
North America	32.0	1.6	N/A
Middle East	24.3	4.9	398.7%
North Africa	3.3	0.9	272.9%
Total	319.7	235.3	35.9%

Economic and Financial KPI

Mln
	9M 2021	9M 2020	Δ (%)
Revenues	319.7	235.3	35.9%
EBITDA	71.5	57.1	25.2%
EBITDA Margin	22.4%	24.3%	-
D&A1	(19.8)	(15.9)	24.0%
EBIT	51.7	41.1	25.7%
EBIT Margin	16.2%	17.5%	-
Adjusted Net Financial Income (Expenses)*	1.6	(1.9)	-
Adjusted EBT	53.3	39.3	35.7%
Adjusted Income Taxes**	(14.3)	(11.8)	21.3%
Adjusted Net Profit	39.0	27.5	41.8%

* Change in warrant fair value	(9.7)	(17.7)	(44.8%)
** DTA reversal related to revaluations	(2.4)	-	-
Net Profit	26.9	9.8	173.4%
Net Financial Position	105.3	20.02	427.6%

• EBITDA Margin down 1.9 p.p. vs. 9M 2020 due to the different mix of revenues, mainly generated by the different consolidation perimeter of the subsidiaries. Profitability in line with 1H 2021, confirming the positive result in a context of materially growing volumes
• Higher D&A on the back of higher Capex
• Tax rate adjusted at 26.9%, down compared to 30.0% in 9M 2020, which not benefitted from fiscal effects of revaluation of certain assets. On a like-for-like basis the two tax rates are comparable. Going forward, on the back of Industry 4.0 tax benefit and without additional benefits, tax rate adjusted expected to be between 27% and 28%
• P&L adjustments related to warrant are in line with 1H figure. For FY 2021, last period with this impact, the figure will be exactly the same as the one at 30 September
• NFP at € 105.3 Mln (Net Cash) doesn't include any impact related to warrant since they have been fully converted/expired during 3Q. Increase vs. YE2020 mainly due to the contribution from recent share capital increase and warrant conversion

^1. Including impairment losses

^2. Figure at 31 December 2020, adjusted to exclude financial liabilities related to outstanding "warrant in compendio e integrativi" as of 31 December 2020

NFP at 30 September 2021

Backlog

€ Mln

• Backlog¹ confirmed at the all-time high € 1.1 Bn, of which € 992 mln (88.2%) from Italian market and € 132 mln (11.8%) from foreign markets
• The different time frame of Italian contracts, typically longer than foreign ones, impacts the current composition of the backlog

• Track & Light and Civil Works and Energy Signalling & Telecommunication confirmed as the core Business Units, with 92.6% of the total backlog

• Does not include agreements between Group companies, to be considered intercompany

Focus on 2021 Capex

• FY 2021 CAPEX are expected at € 44.7 mln¹ (+36.2% vs. 2020)
• At 9M 2021 stage CAPEX are proceeding as per plan

New DHS in SRT factory

"Vulcano 34M" grinding train

Ordinary Business: investments to maintain of existing production capacity, the quality standards required by customers and the achievement of budget objectives Business upgrade: investments to upgrade existing production lines, with new plants, machinery or equipment, allowing for an increase in production capacity New business line: investments related to the design and production of new products in order to open new strategic business lines

1. FY 2020 does not include the new perimeter of Delta R.C. occurred with its acquisition

Outlook

• Business momentum supports expectations for a FY solidly confirming the growing path showed so far
• Positive outlook in our strategic markets further backed by recent news flow, including the approval of \$ 1.2 trillion US Bipartisan Infrastructure Deal, with \$ 105 Bn devoted to railways and public transit
• New contract for the Verona-Padua high speed line supports confidence in a timely implementation of NRRP projects

Evaluation of potential targets for M&A ongoing

Sustainability at Salcef

Bringing our heritage to a new dimension

For 70 years we have been committed to creating a business model focused on continuously innovating sustainable mobility infrastructure

After the listing, we started a new journey, in which we firmly believe and to which the entire organization, starting from the top management, is strongly committed

Our sustainability journey so far

Global Compact, the world's largest corporate sustainability initiative, confirming our commitment towards its principles and the SDGs

Integration of the SDGs in the business model

Preliminary analysis to assess the alignment of the business model with the UN SDGs and mapping of the company goals towards them

Strengthening of the reporting system

Internal process to adapt the existing sustainability reporting system to the GRI standards

Materiality Analysis

Development of the first Materiality Matrix through a structured process involving internal and external stakeholders

First Group Sustainability Report In October 2020 we joined the UN

• After a preliminary analysis, 7 out of the 17 SDGs have been considered primary, based on their coherence with the business model and on the Group's ability to materially contribute to their achievement
• SDG 9, SDG 11 and SDG 13 are the most impacted being more linked with Group's core business and strategic goals
• A set of ESG Company goals has been defined to support the identified SDGs

ESG Company goals	Covered SDGs
Develop technologies for integrated and sustainable mobility
Invest in new services and products
Assure quality of projects, products and machines
Pursue sustainability within all the business activities, investing in impacts reduction and new technologies
Digitalize all the processes
Safeguard employees' health and psychophysical integrity
Assess and mitigate risks related to business activities, also preventing occupational diseases and work-related injuries
Promote a culture focused on quality, environment protection, safety as well as training, effective communication and stakeholder involvement
Assure full compliance with applicable legal requirements and regulations/standards related to quality and HSE

2020 ESG Performance

Environment Energy intensity -2% vs. 2019 Water withdrawal -49% vs. 2019, -62% vs. 2018 1,258 employees (+26% vs. 2019) 17% under 30 (15% in 2019), 5% women (4% in 2019) ̴30k training hours (24 pro capite, in line with 2019) 763 suppliers completed the qualification process 90% of spending from local suppliers People Supply chain 97% of waste produced has been recovered 10% of electricity from auto-produced photovoltaic Injury rate -21% vs. 2018, broadly stable vs. 2019

Environment Management of energy and natural resources

RESULTS

49

Social Supply Chain management

Salcef Group evaluates its Suppliers through a Suppliers Qualification System

• The evaluation encompasses several dimensions among which:
• − Environmental
• − Health & Safety
• − Ethical (anticorruption, human rights, etc.)
• − Quality
• − Economic-Financial
• − Technical
• In 2020, 763 suppliers have gone through the qualification process, of which 492 are qualified.
• Moreover, the performance of the suppliers in the Supplier Qualification System are subject to dedicated analysis with reference to:
• Quality & quantity of the supply
• Execution timing
• Environment and Safety regulations
• A Supplier's Score on a 1 to 5 scale is then assigned, with impact also on the renewal of the qualification. Over 95% of the suppliers received a score greater than 3

Supply Chain 2020 – Local Suppliers

Social Human Resources

Thanks to organic growth and also external acquisitions, Salcef Group's headcount has materially increased over the last two years, from 889 employees in 2018 to 1,258 at the end of 2020

COMPOSITION OF WORKFORCE

• 74% of the workforce located in Italy, followed by North America at 11% (due to the recent acquisition of Delta)
• 5% women, up compared to 3% in 2018 and 4% in 2019
• Blue collars 73% of the total (99% men)
• 71% less than 50 years-old with 30-50 range the most represented (54%)
• In 2020 the number of employees younger than 30 increased by 46% compared to 2019

TRAINING

• Between 2018 and 2020, >78,000 training hours delivered, 29,748 in 2020
• Average amount of training hours per employee at 23.6 in 2020, broadly stable vs. 2019 and 2018 (which benefitted from acquisitions in Italy)
• Health & Safety the most covered topic, in terms of both number of courses (48) and training hours (18,633), followed by professional qualifications

HSE

• Between 2018 and 2020, 146 accidents reported, with 0 fatalities and 2 severe accidents (1 in 2020)

• Injury rate¹ in 2020 materially lower than in 2018 (24.99 vs. 31.83). Same trend recorded with regards to severity rate² (1.32 vs. 1.47)

• (Total days of absence /Total hours worked)*1,000. Excludes commuting injuries

Governance Board of Directors

The current BoD has been appointed by the AGM on 14 October 2019 - and then integrated with 2 additional Directors on 5 October 2020 (in light of the listing on the MTA market of the Italian Stock Exchange) – for the period 2019-2021

Governance Remuneration policy

The first Remuneration Report, approved by the AGM in April 2021, illustrates Group's remuneration policy, which has been developed in line with current regulations and market best-practices

The policy includes ESG targets (HR and HSE) both for short-term and long-term incentive schemes

	Fixed	Short-Term (2021)	Long-Term (2021-2023)
Chairman CEO	Weight: 50%	Weight: 20% Type: Monetary paid up-front Amount: 40% of the Fixed remuneration1 at target Payout scale: 0% till 70% of the target and then linear up to max 140% in case of overperformance Targets: Group EBITDA (55%), Group Net Profit (30%), Injury rate (10%), Avg. Training hour per employee (5%)	Weight: 30% Type: Monetary paid at the end of the period Amount: 60% of the Fixed remuneration1 at target Payout scale: 0% till 70% of the target and then linear up to max 140% in case of overperformance Targets: Cumulated Group EBITDA (55%), Cumulated Group Net Profit (30%), Avg. Injury rate (10%), Avg. Training hour per employee (5%)
Executives with strategic responsibilities2	Weight: 83%	Weight: 17% Type: Mixed with 75% monetary paid up-front and 25% in shares to be paid in two tranches (12.5% each) with different vesting periods Amount: 20% of the Fixed remuneration at target Gate: Group EBITDA Payout scale: 0% till 70% of the target and then linear up to max 140% in case of overperformance Categories of targets (individual targets and related perimeter based on the role/function): Economic-financial, business processes, Product/Process innovation, HSE, HR	-

1. In its role of Salcef S.p.A. executive, the Chairman is also part of this category. The only remuneration scheme applied to him is the one related to the role of Chairman

Next steps

Leveraging on the progress made and on a proactive engagement with the stakeholders, 2021 activities will be focused on three main streams of action

• Additional investments in the reduction of our carbon footprint
• Human Capital development, with a focus on the integration of recently acquired companies

• Engagement with third-party ESG evaluation providers

• Review of structure and contents

• Enlarge the scope of the reporting
• HSE
• Supply Chain
• Update of the Materiality Analysis
• Report of GRI KPIs using the "in accordance" approach

• Extend the work already done in 2020, with the aim to refine the analysis and get to more granular mapping and targets

Useful documents & Contacts

Useful documents

FY 2020 Results Presentation

2020 Annual Report

9M 2021 Results Presentation

Additional Financial Information at 30 Sept. 2021

2020 Sustainability Report

Remuneration Report

Corporate Governance Report

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 materials distributed at, or in connection with, the Presentation. This Presentation and the information, statements and opinions contained herein have been prepared by Salcef Group S.p.A. (the "Company" or "Salcef") for use during meetings with investors and financial analysts and is solely for information purposes and may not be reproduced or redistributed to any other person. The following applies to the Presentation, the oral presentation and any question and answer session that follows the oral presentation.

This Presentation may contain forward-looking statements about the Company, and/or the group headed by Salcef (the "Group"), based on current expectations and opinions developed by the Company, as well as based on current plans, estimates, projections and projects of the Group. Forward looking statements include (but are not limited to) statements identified generally by the use of terminology such as "may", "will", "should", "plan", "expect", "anticipate", "estimate", "believe", "intend", "project", "goal", "aim", "foresee", or "target" or the negative of these words or other variations on these words or comparable terminology. By their nature, forwardlooking statements are based upon various assumptions, expectations, projections, provisional data, many of which are based, in turn, upon further assumptions, including, without limitation, examination of historical operating trends and other data available from third parties. Projections, estimates and targets presented herein are based on information available to Salcef as at the date of this Presentation. Because these forward-looking statements are subject to risks and uncertainties, actual future results or performance may differ materially from those expressed in or implied by these statements due to any number of different factors, many of which are beyond the ability of the Company and/or the Group to control or estimate. You are cautioned not to place undue reliance on the forward-looking statements or other information contained in this Presentation. The information contained herein has a merely informative and provisional nature and does not constitute investment, legal, accounting, regulatory, taxation or other advice. This Presentation speaks as of the date hereof and the information contained herein is provided as at the date of this Presentation and, except to the extent required by applicable law, Salcef nor any other person is under any obligation to update and keep current this Presentation, nor the information contained in this Presentation or any other written, electronic or oral information provided in connection with this Presentation. The information contained herein may be subject to updating, completion, revision and amendment and may change materially without notice. Any reference to past performance or trends or activities of Salcef or the Group shall not be taken as a representation or indication that such performance, trends or activities will continue in the future.

The information contained in this Presentation does not purport to be comprehensive nor to include everything which might be material to your purposes and has not been independently verified by any third party. No representation, warranty or undertaking, express or implied, is made by the Company or any of its respective affiliates or any of its of their respective directors, officers, advisers, employees or agents or any other person as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained therein or any other statement made or purported to be made in connection with the Company and its consolidates subsidiaries, for any purpose whatsoever, including but not limited to any investment considerations. Neither the Company nor any of its respective affiliates, directors, officers, advisers, agents or employees, nor any other person shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of these materials or its contents or otherwise arising in connection with this Presentation. Neither this Presentation nor any part or copy of it may be taken or transmitted into the United States or distributed, directly or indirectly, in the United States. Any failure to comply with this restriction may constitute a violation of U.S. securities laws. The information contained in this Presentation is not for publication or distribution, directly or indirectly, in Australia, Canada or Japan. Neither this Presentation nor its delivery to any recipient will or is intended to constitute or contain or form part of any offer to sell or solicitation of any offer to purchase, or subscribe for, any securities or related financial instruments, nor shall it or any part of it form the basis of or be relied upon in connection with or act as any inducement or recommendation to enter into any contract or commitment or investment decision whatsoever. By attending the meeting where this Presentation is made, by reading the presentation slides or by accessing and/or accepting delivery of this Presentation, you agree to be bound by the foregoing limitations and restrictions. The Presentation cannot be reproduced in any form, further distributed or passed on, directly or indirectly, to any other person or published, in whole or in part, for any purpose. Any failure to comply with these restrictions may constitute a violation of applicable laws.

Contacts

Alessio Crosa Investor Relations & Sustainability Manager

Tel: +39 06 416281 E-mail: investor.relations@salcef.com

Bloomberg: SCF:IM Reuters: SCFG.MI Borsa Italiana: SCF