Salcef Group — Investor Presentation 2024

Mar 21, 2024

Company Presentation

STAR Conference

Speakers

Fabio De Masi Chief Corporate & Financial Officer

Alessio Crosa

Chief Communication & Sustainability Officer

Salcef Group Overview 01

FY 2023 Results 04

Business Units 02

Sustainability at Salcef 05

Sector and Market highlights 03

Contacts 06

Salcef Group Overview

Salcef Group in a nutshell

Active in the railway sector for more than 70 years

1. 2022 and 2023 figures, where applicable, has been restated to retroactively reflect the effects resulting from the completion of the purchase price allocation related to the acquisitions of the railway business unit of PSC Group and of Francesco Ventura Costruzioni Ferroviarie s.r.l., in accordance with the accounting principles in force

2. 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 and 2023 adjusted to exclude the tax impact of the reversal of deferred tax assets on revaluations, the impact on financial expenses of the fair value change on financial investments and non-recurring tax expenses

8

2020 2021 2022 2023

2023 vs. 2020

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	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

Track & Light Civil Works

Light Civil Works

Ordinary Maintenance

Track & Light Civil Works

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

Served Markets

Track & Light Civil Works

FY 2023 operational update and outlook

2023 Revenues at € 461.1 Mln, up 29.9% YoY mainly due to:

• Consolidation of the better-than-expected contribution from Francesco Ventura Costruzioni Ferroviarie (€ 64.7 mln)
• Higher activities within the 3-year framework agreements with RFI
• Higher productions for urban mobility customers in US and Italy
• 2024 will benefit from first activities on contracts in Romania and Egypt, the ramp-up of some domestic renewal contracts signed in 2023 and further growth of Francesco Ventura Costruzioni Ferroviarie led by new contracts from regional railways in Southern Italy

Energy, Signalling & Telecommunication

Energy, Signalling & Telecommunication

Activities

• Construction, ordinary & extraordinary maintenance (renewal activities) of:
  • Railway catenary
  • Signalling systems
  • electrical substations
  • Telecommunication
  • Safety systems in tunnels

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)

Energy, Signalling & Telecommunication

FY 2023 operational update and outlook

• 2023 Revenues at € 115.8 Mln, up 31.2% YoY mainly due to:
  • Higher catenary activities within the 3-year framework agreements with RFI
  • Material growth of signalling activities (+257%) in execution of the ERTMS contracts
• 2024 will benefit from a material step-up on the ongoing activities on ERTMS and electrical substations, which together are expected to represent approx. 45% of the BU vs. current 27%

Heavy Civil Works

Heavy Civil Works

Activities

• 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

Served Markets

Heavy Civil Works

FY 2023 operational update and outlook

• 2023 Revenues at € 127.6 Mln, up 142.1% YoY mainly due to the peak of the contribution from the Verona-Padua HS line contract and the first activities for the Piazza Pia contract
• 2024 will continue to be focused on the execution of the Verona-Padua and Piazza Pia contracts, together with growing activities in Germany on the back of a positive 2023 order inflow

Rail Grinding & Diagnostics

Rail Grinding & Diagnostics

Activities

• Rail and turnout grinding
• Rail Diagnostics

• Current Group's fleet for grinding activities is made of 8 Vulcano series rail grinders and a smaller grinder, all built internally by SRT
• Vulcano rail grinders, in their Light, Heavy and Extreme 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, with the possibility to be tailored to the specific need of each geography

Strenghts

• Vertical Integration with Track & Light Civil Works
• 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

FY 2023 operational update and outlook

• 2023 Revenues at € 20.3 Mln up 33.7% YoY
• 2 new Vulcano rail grinders delivered in 2023 and already on the field
• 2024 will be focused on the consolidation of the activities and international business development

Railway Materials

• Manufacturing of prestressed concrete railway sleepers and turnout bearers
• 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 FY 2023 operational update and outlook

• 2023 Revenues at € 48.2 Mln, up 15.4% YoY mainly due to:

  • 400,000 sleepers produced

  • Slab production going at regime with > 1,000 units produced
• New Turnout Bearers production line activated and running
• Growth expected to continue in 2024 supported by new products, mainly slabs, and execution of new contracts for specific supplies not included in the RFI framework agreements

• 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

FY 2023 operational update and outlook

• 2023 Revenues at € 21.8 Mln, up 12.6% YoY mainly due to the consolidation of Colmar
• 2024 will be focused on the commercial and industrial integration of Colmar, on the development of the new Schieppe plant and on the continuous support to the Group production capacity

A strategic acquisition to strengthen Railway Machines

Engineering

• 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 2023 operational update

• 100 projects designed

• 800 km of infrastructure designed

Served Markets

Sector & Market Highlights

Railway infrastructure sector supported by global macrotrends

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

FY 2023 Results

Key messages

SETTING THE BAR HIGHER

The best year ever brings the Group to a different dimension, with full availability of all the operational, commercial and financial levers to unlock further growth

PERFORMANCE & VISIBILITY

• Outstanding top line performance, with Revenues up 41% YoY of which 27% organic
• EBITDA reaching € 161 mln, with profitability solidly at above 20%
• Backlog reaching all-time-high at € 2.2 Bn with € 1.1 Bn of new contract signed in the year (book-to-bill at 1.65x) and covering 2.8 years of equivalent production

ESG COMMITMENT AND DELIVERY

• Group performance and disclosure improved as per ESG strategy
• Commitment to market-oriented disclosure confirmed by first participation to the CDP questionnaire on climate change, with a satisfactory "B" score
• Well positioned to comply with the Corporate Sustainability Reporting Directive, applicable from 2024 reporting

LOOKING AHEAD WITH CONFIDENCE

• Capex for 2024 growing at € 70 mln to continue supporting product and process development and confirming Group's innovative DNA
• 2024 set to deliver additional revenue growth (approx. 20%)

Revenues by Business Unit

• Consolidated Revenues at € 794.7 Mln, up 40.5% YoY mainly due to:
  • Organic growth at 27.0%, mainly supported by Heavy Civil Works (142.1%) benefitting from the increasing volumes on the Verona-Padua HS line contract, Track & Light Civil Works (13.8%) and Energy, Signalling & Telecom (18.4%)
  • Railway Machines up 72.5% benefitting from the consolidation of Colmar (€ 8.1 mln)
  • Railway Materials continuing in its consistent organic growth trend (+15.4%) thanks to new products

	2023	2022	Δ (%)
Track and Light Civil Works	461.1	355.0	29.9%
Energy, Signalling & Telecom	115.8	88.3	31.2%
Heavy Civil Works	127.6	52.7	142.1%
Rail Grinding & Diagnostics	20.3	15.2	33.7%
Railway Materials	48.2	41.7	15.4%
Railway Machines	21.8	12.6	72.5%
Total	794.7	565.6	40.5%

58.0%	Track & Light Civil Works (62.8% in 2022)
14.6%	Energy, Sign. & Telecom (15.6% in 2022)
16.1%	Heavy Civil Works (9.3% in 2022)
2.6%	Rail Grinding & Diagnostics (2.7% in 2022)
6.1%	Railway Materials (7.4% in 2022)
2.7%	Railway Machines (2.2% in 2022)

Revenues by Geography

• Domestic revenues materially growing 52.0% (33.3% organic) and increasing its weight on the total (86% vs. 79% in 2022)
• North America confirmed as the second market for the Group at +39.3% fully organic

	2023	2023	Δ (%)
Italy	682.0	448.7	52.0%
Europe [Excluding Italy]	39.2	48.2	(18.8%)
North America	67.8	48.7	39.3%
Middle East	4.6	14.4	(68.0%)
North Africa	1.0	5.6	(80.7%)
Total	794.7	565.6	40.5%

85.8%	Italy (79.3% in 2022)
4.9%	Europe (excl. Italy) (8.5% in 2022)
8.5%	North America (8.6% in 2022)
0.6%	Middle East (2.5% in 2022)
0.1%	North Africa (1.0% in 2022)

Economic and Financial KPI

	2023	20221	Δ (%)
Revenues	794.7	565.6	40.5%
EBITDA	160.5	115.0	39.6%
EBITDA Margin	20.2%	20.3%	-
D&A	(59.8)	(37.2)	61.0%
EBIT	100.7	77.8	29.4%
EBIT Margin	12.7%	13.8%	-
Adjusted Net Financial Income (Expenses)*	(13.3)	(1.7)	n.m.
Adjusted EBT	87.3	76.1	14.8%
Adjusted Income Taxes**	(23.4)	(19.7)	18.6%
Adjusted Net Profit	64.0	56.3	13.5%

Net Financial Position	(7.2)	55.5	n.m.
Net Profit	62.1	45.5	36.5%
** DTA on fair value changes, DTA reversal related to revaluations and non-recurring tax expenses	(8.2)	(2.0)	n.m.
* Fair value change of financial investments	6.4	(8.9)	n.m.

• EBITDA Margin solidly kept at 20.2% in line with expectations, with the first limited contribution from FVCF (€ 2 mln)
• Higher D&A on the back of higher Capex made both in 2023 and previous years in line with the Group's Capex plan. FY 2023 and FY 2022 D&A include € 6.9 mln for the depreciation of the intangible assets following the purchase price allocation related to the acquisitions of the railway business unit of PSC Group and of FVCF. Without this effect, EBIT would have been € 107.7 mln (13.6% EBIT Margin)
• P&L adjustments related to:
  • Change in fair value of financial investments
  • DTA reversal
• Tax rate at 26.9%, in line with expectations and with the level going forward
• NFP at € 7.2 Mln (Net Debt) include approx. € 100 mln for M&A (of which approx. € 81 mln of shareholders' loans to support Working Capital needs of Colmar and FVCF), dividend paid for € 30.8 mln and € 20.9 mln for the buyback. Cash & Cash equivalents at year-end stood at approx. € 229 mln

²⁰²⁴ Capex 2023 Capex

• 2023 Capex at € 61.0 Mln, slightly below expectations due to some minor postponements
• 2024 Capex expected to further grow at € 70.0 mln (+15%)
  • Track & Light Civil Works confirmed as the main beneficiary, strengthening the Group focus on core business
  • Rail Grinding & Diagnostics further increasing Capex with new grinding trains (€ 15 mln)
  • Industrial development of the Railway Materials and Railway Machines Italian plants

Backlog

€ Mln

• Backlog¹ hitting all-time high at € 2.22 Bn, of which € 1,619 mln (73.0%) from Italian market and € 599 mln (27.0%) from foreign markets
• Best year ever in terms of order intake, with € 1.1 Bn of new contracts signed and the only extraordinary effect being the consolidation of Colmar order portfolio (€ 33.5 mln)
• Track & Light and Civil Works and Energy Signalling & Telecommunication confirmed as the core Business Units, with 86.6% of the total backlog

Book-to-bill ratio at 1.65x

€x1 000 ,
Business Unit		Amount	%
Track Light Civil Works &		1,381,876	62.3%
of	which Foreign	565,533	25.5%
Signalling & Telecom Energy,		539,046	24.3%
of	which Foreign	1,748	0.1%
Rail Grinding Diagnostic &		7,901	0.4%
of	which Foreign	0
Railway Materials		61,319	2.8%
Heavy Civil Works		173,955	7.8%
of	which Foreign	26,924	1.2%
Railway Machines		53,957	2.4%
of	which Foreign	4,832	0.2%
Total		2,218,054	100.0%
	Italy	1,619,018	73.0%
	Foreign	599,037	27.0%
			44

The Backlog covers 2.8 years of equivalent production

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 2022 to sustain organic growth and innovation

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

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
	49

ESG Performance 2023

ESG Performance 2023 vs. 2018

Focus on EU Taxonomy

Business Unit	Sector	Cod	Description		Revenues	Capex	Opex
				Aligned	55.69%	54.40%	67.79%
Track & light civil works	6 Transport	6.14	Infrastructure for rail transport	Eligible but not aligned	0.07%	0.07%	0.09%
				Not eligible	0.00%	0.00%	0.00%
				Aligned	13.05%	3.37%	7.76%
Energy, signalling & Telecom	6 Transport	6.14	Infrastructure for rail transport	Eligible but not aligned	0.02%	0.00%	0.01%
				Not eligible	2.89%	1.74%	2.76%
				Aligned	17.56%	0.00%	17.59%
Heavy Civil Works	6 Transport	6.14	Infrastructure for rail transport	Eligible but not aligned	0.02%	0.00%	0.02%
				Not eligible	0.00%	0.00%	0.00%
				Aligned	2.57%	21.66%	0.00%
Rail Grinding & Diagnostics	6 Transport	6.14	Infrastructure for rail transport	Eligible but not aligned	0.00%	0.03%	0.00%
				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	6.64%	9.76%	0.29%
				Aligned	0.18%	0.00%	0.00%
Railway Machines	3 Manufacturing	3.3	Manufacture of low carbon technologies for transport	Eligible but not aligned	1.29%	8.88%	3.70%
				Not eligible	0.00%	0.00%	0.00%
				Aligned	0.00%	0.08%	0.00%
Engineering	6 Transport	6.14	Infrastructure for rail transport	Eligible but not aligned	0.00%	0.00%	0.00%
			Not eligible	0.00%	0.00%	0.00%
				Aligned	89.06%	79.51%	93.13%
Salcef Group				Eligible but not aligned	1.41%	8.99%	3.82%
				Not eligible	9.53%	11.50%	52 3.06%

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 (25%), Injury index (10%), DE&I (10%) 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 2024-26 (55%), Cumulative revenues 2024-26 (25%), Injury index over three-year period (10%), Scope 1+2 emissions intensity (10%) 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

Contacts

Contacts

Alessio Crosa Chief Communication & Sustainability Officer

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

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

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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.