Salcef Group

Investor Presentation • Aug 9, 2024

1H 2024 Results Presentation

9 August 2024

Fabio De Masi

Chief Corporate & Financial Officer

Alessio Crosa

Chief Communication & Sustainability Officer

Key Messages

• 1H results consistently confirming growth trends and strong operating performance
• Revenue growth at 35% (of which 32% organic)
• EBITDA at € 92.6 mln, with profitability at 19.0% in line with 1Q and expectations
• Backlog further growing vs. 1Q 2024 and reaching € 2.4 Bn, with book-to-bill at 1.38x
• Guidance for FY 2024 confirmed

YE 2023 30 June 2024

€ Mln

• Consolidated Revenues at € 486.6 Mln, up 34.6% YoY mainly due to:
  • Organic growth at 31.6%, mainly supported by Heavy Civil Works (82.1%), Energy, Signalling & Telecom (43.9%) and Track & Light Civil Works (23.3%)
  • Railway Machines up 163.9% benefitting from the consolidation of Colmar (€ 10.9 mln) but still with a remarkable 28.3% organic growth
  • Railway Grinding still down 26.9% but confirming the recovery vs. 1Q

	1H 2024	1H 2023	Δ (%)
Track and Light Civil Works	270.0	219.0	23.3%
Energy, Signalling & Telecom	74.3	51.6	43.9%
Heavy Civil Works	87.3	47.9	82.1%
Rail Grinding & Diagnostics	8.2	11.3	(26.9%)
Railway Materials	25.7	23.8	8.0%
Railway Machines	21.2	8.0	163.9%
Total	486.6	361.6	34.6%

55.5% Track & Light Civil Works (60.6% in 1H 2023) 15.3% Energy, Sign. & Telecom (14.3% in 1H 2023) 4.3% Railway Machines (2.2% in 1H 2023) 5.3% Railway Materials (6.6% in 1H 2023) 17.9% Heavy Civil Works (13.3% in 1H 2023) 1.7% Rail Grinding & Diagnostics (3.1% in 1H 2023)

€ Mln

• Domestic revenues growing 35.7% (32.2% organic)
• North America confirmed as the second market for the Group at +15.9% fully organic
• Activities in North Africa, mainly Egypt, expected to ramp up in the coming months

Revenues	1H 2024	1H 2023	Δ (%)
Italy	418.0	308.1	35.7%
Europe [Excluding Italy]	30.5	19.1	59.5%
North America	34.6	29.8	15.9%
Middle East	0.7	4.6	(84.3%)
North Africa	2.8	0.0	n.m.
Total	486.6	361.6	34.6%

85.9%	Italy (85.2% in 1H 2023)
6.3%	Europe (excl. Italy) (5.3% in 1H 2023)
7.1%	North America (8.2% in 1H 2023)
0.1%	Middle East (1.3% in 1H 2023)
0.6%	North Africa (0.0% in 1H 2023)

Economic and Financial KPI

€ Mln

	1H 2024	1H 2023	Δ (%)
Revenues	486.6	361.6	34.6%
EBITDA	92.6	73.8	25.5%
EBITDA Margin	19.0%	20.4%	-
D&A	(29.8)	(25.3)	17.7%
EBIT	62.8	48.5	29.6%
EBIT Margin	12.9%	13.4%	-
Adjusted Net Financial Income (Expenses)*	(6.7)	(4.7)	43.0%
Adjusted EBT	56.1	43.8	28.2%
Adjusted Income Taxes**	(18.2)	(12.8)	42.0%
Adjusted Net Profit	37.9	31.0	22.4%
* Fair value change of financial investments	1.9	2.3	(13.8%)
** DTA on fair value changes, DTA reversal related to revaluations and non-recurring tax expenses	(4.8)	(2.1)	127.3%
Net Profit	35.1	31.1	12.7%
Net Financial Position	(36.2)	(7.2)	n.m.

• EBITDA Margin lower YoY as expected at 19.0% due to the larger consolidation perimeter
• Higher D&A for € 4.5 mln on the back of higher Capex made both in 1H 2024 and previous years, as well as € 3.2 mln for the depreciation of the assets following the purchase price allocations made starting from June 2023

P&L adjustments related to:

• Change in fair value of financial investments
• DTA reversal
• NFP at € 36.2 Mln (Net Debt) increased vs. € 7.2 mln of Net Debt at YE 2023 mainly due to the payment of the dividend for € 33.5 mln in May

• Backlog¹ at € 2.40 Bn, of which € 1,814 mln (75.5%) from Italian market and € 590 mln (24.5%) from foreign markets
• Track & Light and Civil Works and Energy Signalling & Telecommunication confirmed as the core Business Units, with 91.7% of the total backlog
• Book-to-bill ratio at 1.38x
• The Backlog covers 3 years of equivalent production

Backlog

€x1 000 ,
Business Unit		Amount	%
Track Light Civil Works &		1 499 307 , ,	62.4%
	of which Foreign	549 351 ,	22 9%
Signalling Telecom Energy & ,		703 597 ,	29.3%
	of which Foreign	476	0 0%
Rail Grinding Diagnostic &		7 692 ,	0.3%
	of which Foreign	0
Railway Materials		45 734 ,	1.9%
Civil Works Heavy		94 591 ,	3.9%
	of which Foreign	16 695 ,	0 7%
Railway Machines		52 646 ,	2.2%
	of which Foreign	23 429 ,	1 0%
Total		2 403 568 , ,	100.0%
	Italy	1 813 616 , ,	75.5%
	Foreign	589 952 ,	24.5%

Business Priorities & Outlook for 2024

• Business volumes expected to growth by around 20% YoY (~ 15% organic)
• EBITDA margin is expected at around 19%, mainly impacted by the further widening of the consolidation perimeter with activities generating lower-thanaverage margins
• Capex expected at € 70 mln further up compared to 2023 to sustain organic growth and innovation

THIS PRESENTATION IS NOT AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO PURCHASE, OR SUBSCRIBE FOR, SECURITIES

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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.

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Contacts

Alessio Crosa

Chief Communication & Sustainability Officer

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

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