Salcef Group

Investor Presentation • Oct 10, 2023

Company Presentation

Italian Excellences MidCap conference

Paris, 11 October 2023

Speakers

Fabio De Masi Chief Financial Officer

Alessio Crosa IR & Sustainability Manager

3

Agenda

Salcef Group Overview 01

1H 2023 Results 04

06

Business Units 02

Sustainability at Salcef 05

Sector and Market highlights 03

Useful documents & Contacts

Salcef Group Overview

Salcef Group in a nutshell

Active in the railway sector for more than 70 years

3 years afer the IPO: A different shape with the same goal…

€ Mln

…continue growing with financial and operative discipline to deliver return to our shareholders

1. 2020 and 2021 adjusted to exclude the impact on financial expenses of the fair value gains and losses on the "warrant in compendio e integrativi" and the tax impact of the reversal of deferred tax assets on revaluations. 2022 adjusted to exclude the tax impact of the reversal of deferred tax assets on revaluations and to exclude the impact on financial expenses of the fair value change on financial investments

2022 vs. 2019

2022 vs. 2021

A unique business model to provide 360° solutions to the industry SLEEPERS/SLAB TRACK TRACK BALLAST SIGNALLING CATENARY SUBSTATION LIGHT CIVIL WORKS BRIDGES, VIADUCTS AND TUNNELS RAILWAY STATIONS AND BUILDINGS ELECTRICITY TRANSMISSION RAILWAY MACHINES Railway Infrastructures Other activities ENGINEERING ACTIVITIES Track & Light Civil Works Energy, Signalling & Telecommunication Railway Materials Heavy Civil Works Railway Machines Rail Grinding & Diagnostics 7 OPERATIVE BUSINESS UNITS Engineering

10

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	Mainly significant number of single-activity contracts of relatively small size. Type may depend on the customer
OCESS DER TEN PR	Public Tenders only	Public Tenders only	Public Tenders and private negotiations
MENT CURRENT PLANS NVEST I	• FS Investment Plan 2022-2031 (€ 110 Bn to the railway infrastructure). New PCO forecasting +80% in maintenance spending (€ 5,1 Bn extraordinary in 2022-2024 and € 1 Bn ordinary per year) See • NRPP 2020-2026 (€ 28 Bn) dedicated slides	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

Strenghts

• High barriers to entry
• Huge equipment investments
• (Salcef fleet substitution value over than € 500 mln)
• Manpower specialization
• Clients' PQ and certifications
• Highly demanding working conditions

1H 2023 operational update

• 1H 2023 Revenues at € 219.0 Mln, up 38.4% YoY mainly due to:
  • Stronger execution of the Framework Agreements in Italy
  • Consolidation of FVCF
  • Material growth in the US (+65.8%) at € 25.0 Mln
• New Orders in 1H at € 344.2 Mln (including FVCF contribution), of which more than 50% outside Italy

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 2023 Plan with € 21.0 Bn investments, + 17% vs. previous Plan)

Served Markets

1H 2023 operational update

• 1H 2023 Revenues at € 51.6 Mln, up 54.9% YoY mainly due to:
  • Activities within the new 3-year framework agreements with RFI
  • Growing contribution from the business acquired by PSC Group
• New Orders in 1H at € 91.7 Mln. Involvement in the ERTMS implementation strengthened and now covering also Sicily through Consorzio Itaca
• Signalling activities increasing their weight in the business, now at 14% of the total

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 1H 2023 operational update

1H 2023 Revenues at € 47.9 Mln, up 388.3% YoY with the activities on the Verona-Padua HS line contract reaching the peak

Served Markets

Rail Grinding & Diagnostics

Rail Grinding & Diagnostics

• Rail and turnout grinding
• Rail Diagnostics

Fleet

• Current Group's fleet for grinding activities is made of 6 Vulcano series rail grinders and a smaller grinder, all built internally by SRT
• Vulcano rail grinders, in their Heavy and Light versions, are designed with modular principles to assure high productivity. Thanks to their flexibility they can be adapted for operation on all the lines, from High Speed to metro, tramlines and narrow-gauge railways

Strenghts

• Vertical Integration with Track & Light Civil Works BU
• All-inclusive solutions
• High production capacity thanks to high performance engines and grinding motors
• Extremely accurate measuring system to optimize solutions and maximize results
• Environmental Sustainability with Stage V engines and dust extraction system

Served Markets

Activities 1H 2023 operational update

• 1H 2023 Revenues at € 11.3 Mln, up 144.9% YoY
• New contract in Italy for the Grinding of Lotto 1 "Centro-Nord", involving approximately 900 km of track
• New Vulcano Light 20M to be delivered in 3Q

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 1H 2023 operational update

• 1H 2023 Revenues at € 23.8 Mln, up 33.4% YoY
• New Orders in 1H at € 17.8 Mln, of which 95% in 2Q
• New multi-product production line completed

Railway Machines

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, Energy, Signalling & Telecommunication and Rail Grinding & Diagnostics BUs
• Market with high margin and few competitors
• Development of new solutions and patents

Served Markets

1H 2023 operational update

• 1H 2023 Revenues at € 8.0 Mln, up 19.9% YoY mainly due to stronger production in the US (+152%)
• New plant in Schieppe di Orciano completed and with all the production lines up and running
• New contract signed in July for the supply of a Vulcano Light grinder to the Polish Railways PKP
• Integration of Colmar kicked-off at industrial and commercial level

A strategic acquisition to strengthen Railway Machines

• 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

FY 2022 operational update

• 150 projects designed

• 600 km of infrastructure designed

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 28 € Bn to the railway sector by 2026 and 2022-2031 FS Industrial Plan with € 110 Bn to the railway infrastructure

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 investing 86 € Bn in the upgrade of its rail network 2021-2030

World Rail Supply Market expectations until 2027 – by geography

• World rail supply market expected to grow at a 3.0% CAGR, reaching an average yearly spending of approx. € 211 Bn in the 2025- 2027 period (+19,3% vs 2019-2021)
• Africa / Middle East and Eastern Europe are expected to have the strongest growth, while Asia Pacific and Eastern Europe are confirmed as the biggest contributor to the global market (32% and 30% respectively)

World Rail Supply Market expectations until 2027 – by sector

Services

• Infrastructure Services market (which accounts for 23% of the total services market and includes labour and parts for maintaining railway superstructure) is expected to grow by 1.9% reaching € 17.6 Bn per year in 2025-2027
• Biggest growth in NAFTA countries at 2.9%, the only area where infrastructure services are expected to grow more than rolling stock services. Eastern Europe, Africa / Middle East / Western Europe follow with 2.0%, 1.7% and 1.6% CAGR respectively

Infrastructure

• Infrastructure market (which includes all components of ballastless / ballast track and electrification while excludes all the civil works) is expected to grow by 3.8% reaching € 42.1 Bn per year in 2025-2027
• Superstructure growth mainly driven by Very High Speed (7.2%), followed by Urban (3.4%) and Mainline/Freight (3.0%), which remains by far the biggest component (57% of the total)
• Electrification (~56% of the track kilometres are not electrified, ~50% in Europe and ~28% in Italy) is the segment with the highest growth rates: 7.5% for Mainline/Freight, 4.6% for VHS and 3.4% for Urban
• Eastern Europe will grow by 8.7% (with Romania at 3.0%), Africa/Middle East by 4.1% (with remarkable 28.3% in Saudi Arabia) and Western Europe by 4.7%. 1.2% growth in Asia Pacific mainly Driven by Australia while 3.9% growth in NAFTA countries mainly driven by US (3.9%)

Rail Control

• Rail control market (which includes rail control and signalling solutions, communication equipment, operational control systems and route control systems) is expected to grow by 3.4% reaching € 22.2 Bn per year in 2025-2027
• Africa/Middle East and Eastern Europe are expected to have the highest growth (8.2% and 6.8% respectively). Western Europe is predicted to grow by 4.2%, amounting to 31% of the total market

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

2020-2021 overall expenditure at € 2.5 Bn, higher than the € 2.3 Bn budget

	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		€ 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
Securing of regional railways	454
of fleet Upgrade and renewal rolling stock	278
Enhancement of regional rail network with simultaneous upgrade and/or renewal of rolling stock fleet	140
Enhancement of regional railways	677
of Renewal rolling stock	200	0	60	50	40	30	20	0
Safe of roads - Implementation a system for dynamic monitoring remotely controlling bridges, viaducts and tunnels (A24-A25)	1,000	0	150	150	90	337	223	50
Safe of roads - Implementation 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
Encouraging cycling 4.1	600	0	0	130	225	100	80	65
Rapid mass transportation 4.2 development	3,600	0	180	476	709	967	738	530
Installation of eletric charging 4.3 infastructure	741	0	0	0	400	150	141	50
of bus fleets and 4.4 Renovation 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

Additional € 4.7 Bn (of which € 4.3 Bn from 2022 Budget Law) allocated by the Ministry of Infrastructure and Sustainable Mobility to the development of Subways and Tramways in Rome, Milan, Genova, Naples and Turin

1H 2023 Results

Key messages

• Very positive 1H confirming growth trends and impact of public investments in the railway infrastructure, also at local/regional level
• Revenue growth at 57% (of which 37% organic), with 2Q as the first quarter ever at above € 200 million, benefitting from higher production, a better-than-expected contribution from FVCF and a favourable YoY comparison
• EBITDA at € 73.8 mln confirming profitability at above 20%
• Backlog at € 1.87 Bn further growing vs. 1Q with major awards in Italy and abroad
• Acquisition of Colmar Technik completed on time and expected to support the growth of Railway Machines
• 2023 Revenues now expected to be 30% higher than 2022 on the back of stronger organic and non-organic growth

1H 2023 Highlights

€ Mln

Revenues

€ Mln

• Consolidated Revenues at € 361.6 Mln, up 56.9% YoY mainly due to:
  • Outstanding organic growth at 37.2%, with activities materially growing across all the business units and in particular Heavy Civil Works
  • Contribution of Francesco Ventura Costruzioni Ferroviarie (€ 30.8 Mln) in Track & Light Civil Works and of the railway business unit acquired from PSC Group (€ 17.2 mln) in Energy, Signalling & Telecom

	1H 2023	1H 2022	Δ (%)
Track and Light Civil Works	219.0	158.2	38.4%
Energy, Signalling & Telecom	51.6	33.3	54.9%
Heavy Civil Works	47.9	9.8	388.3%
Rail Grinding & Diagnostics	11.3	4.6	144.9%
Railway Materials	23.8	17.8	33.4%
Railway Machines	8.0	6.7	19.9%
Total	361.6	230.5	56.9%

60.6%	Track & Light Civil Works (68.7% in 1H 2022)
14.3%	Energy, Sign. & Telecom (14.5% in 1H 2022)
13.3%	Heavy Civil Works (4.3% in 1H 2022)
3.1%	Rail Grinding & Diagnostics (2.0% in 1H 2022)
6.6%	Railway Materials (7.7% in 1H 2022)
2.2%	Railway Machines (2.9% in 1H 2022)

Revenues by Geography

€ Mln

• Domestic revenues materially growing 65.7% (41.3% organic) and increasing their weight
• North America at +75.2% organic, consolidating as the second market for the Group
• During 4Q, Europe (ex-Italy) and North Africa to start benefitting form the very first activities of the contracts in Romania and Egypt

	1H 2023	1H 2022	Δ (%)
Italy	308.1	185.9	65.7%
Europe [Excluding Italy]	19.1	20.0	(4.2%)
North America	29.8	17.0	75.2%
Middle East	4.6	3.5	31.9%
North Africa	0	4.1	n.m.
Total	361.6	230.5	56.9%

85.2%	Italy (80.7% in 1H 2022)
5.3%	Europe (excl. Italy) (8.7% in 1H 2022)
8.2%	North America (7.4% in 1H 2022)
1.3%	Middle East (1.5% in 1H 2022)
0%	North Africa (1.8% in 1H 2022)

Economic and Financial KPI

1H 2023	1H 20221	Δ (%)
361.6	230.5	56.9%
73.8	46.3	59.6%
20.4%	20.1%	-
(25.3)	(17.0)	24.7%
48.5	29.2	65.8%
13.4%	12.7%	-
(4.7)	1.6	n.m.
43.8	30.8	42.2%
(12.8)	(8.6)	49.5%
31.0	22.2	39.4%

* Fair value change of financial investments 2.3 (8.2) n.m. ** DTA reversal related to fair value change of financial investments and revaluations (2.1) (0.5) (38.0%) Net Profit 31.1 13.5 129.9%

Adjusted Net Financial Position² 3.8 26.0³ (85.6%)

• EBITDA Margin in line with expectations confirming resilience.
  • FVCF gave no contribution at EBITDA level as expected. Expectations for first contribution in 4Q confirmed
  • Positive impact form governmental measures in a substantially stable cost environment
• Higher D&A on the back of higher Capex made both in 2022 and 1H 2023 in line with the Group's Capex plan. 1H 2023 and 1H 2022 D&A include the depreciation of the intangible assets following the purchase price allocation related to the acquisition of the railway business unit of PSC Group

P&L adjustments related to:

• Change in fair value of financial investments
• DTA reversal
• Tax rate at 29.1% aligned with Italy's nominal tax rate and expected to benefit in 2H from "Industry 4.0" and other tax incentives
• Adjusted NFP at € 3.8 Mln (Net Cash) factoring in the dividend payment for € 30.8 Mln, the cash outflow for the share buyback for € 8.6 Mln
• 1. Figures, where applicable, has been restated to retroactively reflect the effects resulting from the completion of the purchase price allocation related to the acquisition of the railway business unit of PSC Group, in accordance with the accounting principles in force

• Does not consider the fair value change on financial investments, the down payment on the Verona-Padua HS line contracts and the first installment for the acquisition of Colmar Technik

• Figure at 31 December 2022

Adjusted NFP at 30 June 2023

Features of financial debt: • Duration: approx. 36 months • Average of replacement: rolling € Mln

• Structure: Corporate

Backlog

Book-to-bill ratio at 1.47x

€ Mln

• Backlog¹ further up at € 1.87 Bn, of which € 1,271 mln (68.0%) from Italian market and € 599 mln (32.0%) from foreign markets
• Compared to FY2022 and 1Q 2023, further increase of the international component
• Track & Light and Civil Works and Energy Signalling & Telecommunication confirmed as the core Business Units, with 90.1% of the total backlog

1,870

32.0%

68.0%

1 H 2 0 2 2 9 M 2 0 2 2 F Y 2 0 2 2 1 Q 2 0 2 3 1 H 2 0 2 3B/B 1,751 68.8% 1,347 31.2% 84.3% 15.7% 1.63 1,701 80.0% 20.0% 1.39 73.8% 26.2% 1.89 1,350 1.31 1.47

Business Unit			Amount	%
Track Light Civil Works &			1 321 292 , ,	70.7%
	of which	Foreign	581 636 ,	31 1%
Signalling Telecom Energy & ,			362 754 ,	19.4%
	of which	Foreign	3 324 ,	0 2%
Rail Grinding Diagnostic &			9 391 ,	0.5%
	of which	Foreign	0
Railway Materials			55 241 ,	3.0%
Civil Works Heavy			111 578 ,	6.0%
	of which	Foreign	12 218 ,	0 7%
Railway Machines			9 801 ,	0.5%
	of which	Foreign	1 860 ,	0 1%
Total			870 056 1 , ,	100.0%
		Italy	1 271 019 , ,	68.0%
		Foreign	599 038 ,	32.0%
				44

2023 Outlook

• Business volumes expected to growth by 30% YoY (~ 15% organic), mainly driven by:
  • Better than expected contribution from Francesco Ventura Costruzioni Ferroviarie as well as 4-month contribution of business unit acquired from PSC
  • 5-month consolidation of the newly acquired Colmar Technik for approximately € 5 Mln
  • Further growth of the core business in Italy, with execution of the track works and energy Framework Agreements with RFI and of traditional and urban maintenance and renewal contracts for other customers
  • Construction activities on the Verona-Padua High Speed line
  • Ramp up of the activities on the ERTMS contract in Italy
  • Boost of US activities on the back of the execution of new contracts signed in 2022
  • First activities in Romania and Egypt
• In the current scenario with inflationary pression remaining fairly high and with the need to focus on the integration of Francesco Ventura Costruzioni Ferroviarie and Colmar, EBITDA margin is expected to remain broadly in line with 1H 2023, still supported by the effect on governmental measures
• Capex expected at approx. € 65 mln further up compared to 2022 to sustain organic growth. At the 1H stage, Capex at approx. € 32 mln

Focus on Capex

€ Mln

• 2023 Capex expected materially higher YoY reaching the peak at € 64.6 mln (+35%)
  • Ordinary business flat confirming historical trend
  • Business Upgrade mainly focused on new machines for Track & Light Civil Works and Rail Grinding & Diagnostics (€ 18 mln)
  • Approx. € 10 mln for the development of new production plants for Railway Machines and Railway Materials

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

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 proceeding

First Report prepared under the "In accordance – core" option of the GRI standards

• Scope 3 GHG emission - Risk/Opportunities

related to climate change

thanks to improved disclosure on:

• EU Taxonomy - Gender pay-gap

Disclosure on EU Taxonomy alignment

New Group Policies on:

• Diversity, Equity & Inclusion
• Human Rights
• Diversity of the BoD and the Board of Statutory Auditors
• Engagement with shareholders and investors

New Sustainability Committee

First Group Integrated Report

SDG mapping

• 9 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

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
Strengthen company governance, with particular focus on sustainability governance
	50

ESG Performance 2022

ESG Performance 2022 vs. 2018

Focus on EU Taxonomy

Business Unit	Sector	Cod	Description		Revenues	Capex	Opex
Track & light civil works	6	6.14	Infrastructure for rail transport	Aligned Eligible but not aligned	58.73% 0.24%	44.41% 0.18%	69.57% 0.28%
	Transport			Not eligible	0.00%	0.00%	0.00%
				Aligned	12.59%	4.56%	8.62%
Energy, signalling & Telecom	6	6.14	Infrastructure for rail transport	Eligible but not aligned	0.05%	0.02%	0.03%
	Transport			Not eligible	4.97%	2.44%	8.44%
	6			Aligned	10.58%	3.37%	8.15%
Heavy Civil Works	Transport	6.14	Infrastructure for rail transport	Eligible but not aligned	0.04%	0.01%	0.03%
				Not eligible	0.00%	0.00%	0.00%
				Aligned	3.06%	13.00%	1.64%
Rail Grinding & Diagnostics	6	6.14	Infrastructure for rail transport	Eligible but not aligned	0.01%	0.05%	0.01%
	Transport			Not eligible	0,00%	0,00%	0.00%
				Aligned	0.00%	0.00%	0.00%
Railway Materials	6 Transport	6.14	Infrastructure for rail transport	Eligible but not aligned	0.00%	0.00%	0.00%
				Not eligible	8.42%	19.44%	0.75%
				Aligned	0.00%	0.00%	0.00%
Railway Machines	3	3.3	Manufacture of low carbon	Eligible but not aligned	1.31%	12.51%	2.48%
	Manufacturing		technologies for transport	Not eligible	0.00%	0.00%	0.00%
				Aligned	84.96%	65.34%	87.98%
Salcef Group				Eligible but not aligned	1.65%	12.77%	2.83%
				Not eligible	13.39%	21.89%	9.19%

Governance Board of Directors

The current BoD has been appointed by the AGM on 29 April 2022 for the period 2022-2024

Governance Remuneration policy

The Remuneration Policy 2023, approved by the AGM on 27 April 2023, confirmed ESG targets (HR and HSE) both for short-term and longterm incentive schemes and introduced the Long-term incentive schemes also for Executives with Strategic Responsibilities (ESR)

Component	Aims and characteristics	Implementation conditions	Amount
Short-term variable remuneration (MBO)	The annual variable component aims to recognize and reward the achievement of results linked to annual economic financial and non-financial objectives, constituting an important motivational lever	Recipients: CEO, Executive Chairman Objectives: EBITDA (55%), Net profit (30%), Injury index (10%), Employees training (5%) Performance gate: Consolidated EBITDA Type: 100% monetary Recipients: ESR + other executives Objectives: EBITDA + objectives linked to the specific organizational areas of competence (20% ESG) Performance gate: Consolidated EBITDA Type: Mixed with 75% monetary paid up-front and 25% in shares (Stock Grant Plan): two tranches of equal amount, with different vesting periods and with claw-back clauses	Payout scale: 0% till 70% of the target and then linear up to max 140% in case of overperformance	40% of the Fixed rem. at target 20% of the Fixed rem. at target
Long-term variable remuneration (LTI)	The long-term variable component ensures alignment between the interests of management and the interests of shareholders over the medium to long term. Economic objectives are complemented by non-financial objectives intended to ensure the Group's viable success	Recipients: CEO, Executive Chairman Objectives: cumulative EBITDA 2021-23 (55%), Cumulative revenues 2021-23 (30%), Injury index over three-year period (10%), Employees training over three-year period (5%) Performance gate: Consolidated EBITDA Type: 100% monetary to be paid at the approval of FY 2023 Financial Statement Recipients: ESR Objectives: cumulative EBITDA 2022-23 (55%), cumulative revenues 2022-23 (30%), Injury index over two-year period (10%), Employees training over two-year period (5%) Performance gate: Consolidated EBITDA Type: 100% shares (Performance share plan): two tranches 60/40, with different vesting periods and with claw-back clauses	Payout scale: 0% till 70% of the target and then linear up to max 140% in case of overperformance	60% of the Fixed rem. at target 20% of the Fixed rem. at target

Useful documents & Contacts

Useful documents

FY 2022 Results Presentation

FY 2022 Video

1H 2023 Results Presentation

2022 Integrated Report

Report on Corporate Governance

Remuneration 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@salcefgroup.com

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