Webuild — Earnings Release 2021

Mar 18, 2022

Full Year 2021 Financial Results

March 18, 2022

Agenda

Pietro Salini Chief Executive Officer

General Manager Corporate and Finance Massimo Ferrari

2021 Key Highlights

RECOVERY OF OPERATIONS AND STRONG BALANCE SHEET

• Strong rebound in operations vs 2020 despite pandemic: revenues +40%; EBITDA +95%
• Positive year-end financial position (net cash) of €467m, best result ever; gross debt down by >€900m
• On track to deliver €120m cost efficiency plan: overhead costs reduced by €30m in 2021

RECORD ORDER INTAKE AND SOLID MARKET AHEAD OF US

• €11.3bn of new orders, well distributed across core markets (Italy, Australia, US, France and Austria)
• Record construction backlog(1) at over €37bn, covering >89% of 2022-24 revenue targets
• Strong momentum for infrastructure market: playing central role in delivering projects under PNRR in Italy €24bn infrastructure projects to go to tender in 2022-23

DELIVERING ON DE-RISKING STRATEGY

• Pursuing growth opportunities in developed countries, reducing exposure to emerging ones: >75% of construction backlog and >80% of revenues in low-risk areas
• Selective and structured bidding approach for projects with sustainable margins and better cash conversion cycle
• Active management of contracts during lifetime of project

PROGETTO ITALIA: ACQUIRED SCALE TO INVEST IN INNOVATION AND HEALTH & SAFETY TO BOOST COMPETITIVENESS

• Completed Astaldi and Seli Overseas acquisition, fully integrated: on track to deliver synergies
• Increased presence in domestic market in line with international peers, playing central role in sector revival

SUSTAINABILITY AS CORE TO OUR STRATEGY

• >90% of projects in Construction Backlog contribute to Sustainable Development Goals advancement
• Committed to EU taxonomy: 99% revenues are eligible

2021 Financial Highlights

Backlog €45bn €42bn in FY 2020 Backlog that contribute to SDGs(1) 92% 89% in FY 2020

Workforce(2) 80,000 70,000 in FY 2020

Total Equity €1.9bn €2.1bn in FY 2020

Dividend proposal €0.055 per share €0.055 in FY 2020

Full Year 2021 Financial Results

2021

Outstanding order intake and intense high-quality commercial activity

Italy becomes core market with major PNRR infrastructure investments

(1) Source: Cresme – Il Mercato delle Costruzioni 2022 (2) PNRR: Piano Nazionale di Ripresa e Resilienza – Italian Recovery Plan (3) Assigned to Salerno-Reggio Calabria high speed railway ⁶

Record construction backlog at over €36bn

Full Year 2021 Financial Results

(1) Including Plants and NBI (2) Including Italy, North America, Europe and Australia (3) United Nations' Sustainable Development Goals to be achieved by 2030

Pillar 1: Contribute to Global Challenges

We help clients in sustainability mobility, water, hydropower and green buildings. We build infrastructure that contributes to communities' development and well-being

Pillar 2: Act Responsibly

#WeInvest in Sustainability

Management remuneration linked to specific ESG targets

(1) Injuries occurred per 1 million worked-manhours

Full Year 2021 Financial Results

(2) tCO2 scope 1-2/€m revenue. Scope1: emissions from fuels. Scope2: emissions from electricity

(3) 2021 level marks the completion of a number of major projects and the start-up of newly acquired projects, the ramp-up of which will be reflected in coming years;

Deliver value with strong backlog, greater efficiency, cash flow and new business lines

Main drivers

• Execute order backlog that covers >89% of 2022-24 targeted revenues with strict control over cost and contract management
• Continue to consolidate presence in Italy amid increase in infrastructure spending, simplification of tender process, introduction of advance payment regime, leveraging on our capacity to invest in innovation and health & safety
• Pursue de-risking strategy with focus on developed markets(1)
• Complete €120m operational efficiency program by 2023, enabled by the digitalization of core processes and synergies with Astaldi
• Focus on cash flow generation and deleveraging as a result of de-risking, operational efficiencies, asset monetization
• Develop new business opportunities to diversify revenue and cash flow: infrastructure maintenance in Italy, strategic partnerships with infrastructure funds, Texas high-speed railway
• Focus on Environmental, Social and Governance (ESG), favoring projects that reduce CO2 emissions, guarantee high safety standards

2022-2024 financial trajectory

These targets may be susceptible to change as a result of the unpredictable nature of COVID-19 pandemic. They do not include any negative impacts resulting from the military conflict in Ukraine.

growth Rigorous project management

Efficiency

Cash generation

lines

Agenda

General Manager Corporate and Finance Massimo Ferrari

Operating performance above pre-pandemic levels

(1) Adjusted data for details please refer to the appendix; FY 2020 figures do not reflect the PPA result related to the acquisition of Astaldi (2) Figures adjusted by €32m of one-off costs, mainly related to Astaldi integration, to represent Group operating performance Full Year 2021 Financial Results

>80% Revenue generated from low-risk countries(1)

(1) Including Italy, North America, Europe and Australia (2) United Nations' Sustainable Development Goals to be achieved by 2030 (3) Revenues from contracts with customers Full Year 2021 Financial Results 14

Profit and loss

E-MARKET SDIR
CERTIFIED

(€m)	2020(1)	2021(1)	Var
EBIT	30	198	168
Financial income	81	88	7
Financial expenses	(156)	(190) 1	(35)
Net exchange rate (losses)	(44)	10	54
Net Financial income (costs)	(119)	(92)	26
Gain (losses) on investments	(15)	(25)	(10)
Net financing costs and net gains on investments	(134)	(117)	16
EBT	(104)	80	184
Income taxes	(60)	(111)	(51)
Profit (loss) from continuing operations	(164)	(31)	133
Profit (loss) from discontinued operations	(5)	0	5
Non controlling interests	5	(26)	(31)
Net Income (loss)	(164)	(56) 2	108

Net Financial expenses (€m)	2020(1)	2021(1)	Var
Bank charges, commissions and guarantees	(58)	(54)	4
Bond charges	(42)	(69)	(27)
Leasing	(6)	(8)	(2)
Other	(50)	A (59)	(9)
Financial charges	(156)	(190)	(35)

A Mainly related to de-valuation of financial assets and expenses for inflation adjustments

Tax burden - potentially recoverable in the coming years - mainly related to a positive major claim settlement 3

Settlement of the litigation on high-speed railway between Milan-Turin, inherited by Impregilo, with no monetary effects ⁴

Positive cash flow generation: 2021 closed with net cash and gross debt down by €906m

Limited debt maturities until 2024

Revenues, EBITDA development supported by solid backlog and cost efficiency plan

On track to create operating efficiencies and capture Astaldi synergies

Potential upside to targets

€9-11bn yearly

estimated addressable market for infrastructure maintenance

€13.1bn contract signed for Texas High Speed Railway

Strategic partnership with infrastructure funds

Key Facts Infrastructure network maintenance

>600,000km of roads and highways, of which the vast majority with more than 50 years, and >16,000km of railways

€9-11bn per year of investments needs in the next years

€1.5bn revenues potentially at full speed, with high single digit margin

Texas High Speed Raillway

€13.1bn civil works assigned to Webuild Group(1), still not included in backlog

~6 years expected timing for project completion

Financial closing: assist the client to accelerate on closing

Innovation as enabler to build sustainable projects efficiently

Robot monitoring/cleaning Vertical Risers

Strategic Partnership with Infrastructure funds

Talks with infrastructure funds to develop commercial activity worldwide and review opportunities in segments and markets of common interest

Focus on expanding in low-risk countries and on projects that are economically and financially sustainable over the long term

Project origination

Working with clients and governments the development of additional hydro electric projects and underground expansions

Appendix

Income Statement

Webuild Group

Reclassified statement of profit or loss adjusted

				FY 2020 Adjusted						FY 2021 Adjusted
(€/000)	Webuild Group (*)	Joint ventures not controlled by Lane	PPA backlog Astaldi	Impairment Venezuela	Condotte out-of court agreement	Impairment GUPC	Adjusted	Webuild Group (**)	Joint ventures not controlled by Lane	PPA backlog Astaldi	Ethiopian tax	CAVTOMI non recurring effect	Adjusted
Total revenue and other income	5,012,937	292,712	(539,292)	-	-	-	4,766,357	6,552,243	138,447	-	-	-	6,690,690
Gross operating profit (EBITDA)	751,115	4,056	(539,292)	-	15,000	-	230,879	445,620	5,664	-	-	-	451,285
EBITDA %	15.0%	1.4%					4.8%	6.8%	4.1%				6.7%
Impairment losses	(173,583)	-	-	122,517	20,284	-	(30,782)	(27,498)	-	-	-	-	(27,498)
Provisions, amortisation and depreciation	(184,588)	-	14,031	-	-	-	(170,557)	(451,837)	-	93,727	-	131,909	(226,201)
Operating profit (loss) (EBIT)	392,944	4,056	(525,261)	122,517	35,284	-	29,539	(33,715)	5,664	93,727	-	131,909	197,586
R.o.S. %	7.8%	1.4%					0.6%	-0.5%	4.1%				3.0%
Financing income (costs) and gains (losses) on equity investments
Financial income	80,990	-	-	-	-	-	80,990	87,537	-	-	-	-	87,537
Financial expenses	(155,606)	-	-	-	-	-	(155,606)	(190,326)	-	-	-	-	(190,326)
Net exchange gains (losses)	(43,907)	-	-	-	-	-	(43,907)	10,292	-	-	-	-	10,292
Net financing income (costs)	(118,523)	-	-	-	-	-	(118,523)	(92,497)	-	-	-	-	(92,497)
Net gains (losses) on equity investments	(108,816)	(4,056)	-	-	-	97,868	(15,004)	(19,157)	(5,664)	-	-	-	(24,821)
Net financing income (costs) and net gains (losses) on equity investments	(227,339)	(4,056)	-	-	-	97,868	(133,526)	(111,654)	(5,664)	-	-	-	(117,318)
Profit (loss) before taxes (EBT)	165,605	-	(525,261)	122,517	35,284	97,868	(103,987)	(145,369)	-	93,727	-	131,909	80,267
Income taxes	(27,182)	-	(3,367)	(29,404)	-	-	(59,953)	(133,629)	-	(22,494)	77,000	(31,658)	(110,781)
Profit (loss) from continuing operations	138,423	-	(528,628)	93,113	35,284	97,868	(163,940)	(278,998)	-	71,232	77,000	100,251	(30,515)
Profit (loss) from discontinued operations	(5,088)	-	-	-	-	-	(5,088)	232	-	-	-	-	232
Profit (loss) before non-controlling interests	133,335	-	(528,628)	93,113	35,284	97,868	(169,029)	(278,766)	-	71,232	77,000	100,251	(30,283)
Non-controlling interests	5,060	-	-	-	-	-	5,060	(26,183)	-	-	-	-	(26,183)
Profit (loss) for the period attributable to the owners of the parent	138,395	-	(528,628)	93,113	35,284	97,868	(163,969)	(304,949)	-	71,232	77,000	100,251	(56,465)

(*) The reclassified 2020 statement of profit or loss figures have been restated considering the final results of the Purchase Price Allocation of Astaldi

(**) The estimated charge of € 131.9 million relating to the development of the dispute with the Customer in relation to the C.A.V.TO.MI. contract is shown in the reclassified income statement under Provisions and Write-downs. This item is instead shown in the consolidated financial statements accompanying the Notes to the Financial Statements as a reduction of Revenues from contracts with Customers.

(€/000)	FY 2020 (*)	FY 2021 (**)
Revenue
Revenue from contracts with customers	4,247,167	6,109,730
Other income	226,478	442,513
Badwill	539,292
Total revenue and other income Total operating expenses	5,012,937 (4, 261, 822)	6,552,243 (6, 106, 623)
Gross operating profit (EBITDA)	751,115	445,620
EBITDA %	15.0%	6.8%
Impairment losses	(173, 583)	(27, 498)
Provisions, amortisation and depreciation	(184, 588)	(451, 837)
Operating profit (loss) (EBIT)	392,944	(33, 715)
$R.$ $\circ$ . $\%$	7.8%	$-0.5%$
Financing income (costs) and gains (losses) on equity investments
Financial income	80,990	87,537
Financial expenses	(155,606)	(190, 326)
Net exchange gains (losses)	(43,907)	10,292
Net financing income (costs)	(118, 523)	(92, 497)
Net gains (losses) on equity investments	(108, 816)	(19, 157)
Net financing income (costs) and net gains (losses) on equity inv	(227, 339)	(111, 654)
Profit (loss) before taxes (EBT)	165,605	(145, 369)
Income taxes	(27, 182)	(133,629)
Profit (loss) for the period attributable to the owners of the parent	138,395	(304,949)

(*) The reclassified 2020 statement of profit or loss figures have been restated considering the final results of the Purchase Price Allocation of Astaldi

(**) The estimated charge, amounting to € 131.9 million, relating to the development of the dispute with the Customer in relation to the C.A.V.TO.MI. contract is shown in the reclassified income statement under Provisions and Write-downs. This item is instead shown in the consolidated financial statements accompanying the Notes to the Financial Statements as a reduction of Revenues from contracts with Customers.

	December 31 2020 (*)	December 31 2021
(€/000)
Non-current assets	1,878,052	1,992,499
Goodwil	70,020	78,496
Non-current assets (liabilities) held for sale	(5,062)	24,848
Provisions for risks	(189,798)	(222, 591)
Post-employment benefits and employee benefits	(63, 349)	(50,687)
Net tax assets	381,967	374,999
Inventories	198,325	217,607
Contract assets	2,796,074	2,787,252
Contract liabilities	$[2, 2]$ $[2, 4]$	(3,422,846)
Receivables (*)	1,882,768	2,482,480
Liabilities (**)	[2,702,034]	(3, 208, 770)
Other current assets	1,008,839	905,056
Other current liabilities	(530, 544)	(565, 421)
Working capital	440,952	(804, 642)
Net invested capital	2,512,782	1,392,922
Equity	2,070,888	1,859,599
Net financial indebtedness	441,894	(466, 677)
Total financial resources	2,512,782	1,392,922

(*) The statement of financial position figures at 31 December 2020 have been restated considering the final results of the Purchase Price Allocation of Astaldi

(**) This item shows assets of € 15.8 million classified in net financial indebtedness and related to the Group's net amounts due from/to consortia and consortium companies (SPEs) operating under a cost recharging system and not included in the consolidation scope. The balance reflects the Group's share of cash and cash equivalents or debt of the SPEs. The Group's exposure to the SPEs was shown under "Liabilities" for € 3.3 million and "Assets" for € 1.8 million at 31 December 2020

(€/000)	December 31 2020	December 31 2021
Non-current financial assets	321,952	418,511
Current financial assets	339,002	313,241
Cash and cash equivalents	2,455,125	2,370,032
Total cash and cash equivalents and other financial assets	3,116,079	3,101,784
Bank and other loans and borrowings	(767, 494)	(317, 265)
Bonds	(1,288,620)	(1,487,852)
Lease liabilities	(98, 881)	(101, 673)
Total non-current indebtedness	(2, 154, 995)	(1,906,790)
Current portion of bank loans and borrowings and current acc	(1,077,309)	(667,066)
Current portion of bonds	(246,910)	(11,881)
Current portion of lease liabilities	(79, 557)	(68, 808)
Total current indebtedness	(1,403,776)	(747, 755)
Total other financial assets (liabilities)	798	19,438
Net financial indebtedness - continuing operations	(441, 894)	466,677
Net financial indebtedness - discontinued operations	116	23,687
Net financial indebtedness including discontinued operations	(441, 778)	490,364
Total gross indebtedness	(3,560,233)	(2,654,545)

This presentation may contain forward-looking objectives and statements about Webuild's financial situation, operating results, business activities and expansion strategy.

These objectives and statements are based on assumptions that are dependent upon significant risk and uncertainty factors that may prove to be inexact. The information is valid only at the time of writing and Webuild (Salini Impregilo) does not assume any obligation to update or revise the objectives on the basis of new information or future or other events, subject to applicable regulations.

Additional information on the factors that could have an impact on Webuild's (Salini Impregilo) financial results is contained in the documents filed by the Group with the Italian Securities Regulator and available on the Group's website at www.webuildgroup.com or on request from its head office.

Thank you