Webuild — Investor Presentation 2020

Jul 30, 2020

First Half 2020 Financial Results

30 July 2020

Agenda

Pietro Salini Chief Executive Officer

Financial Update

General Manager Corporate and Finance Massimo Ferrari

Highlights

Prompt response to COVID-19 in a challenging environment

PEOPLE & LOCAL COMMUNITY OPERATIONS LIQUIDITY

Distributed adequate personal protection equipment

Onsite enhanced sanitation and disinfection; strengthened onsite medical support

Enforcement of adequate social distancing on site, at the base camps and the canteens

Smart working adopted by the entire admin staff in Italy

Business travel cancelled except for extraordinary cases

Encouraged local hiring for managers and specialized workforce

Additional staff insurance in the event of hospitalization due to COVID-19

130,000 FFP2 masks donated to italian police forces and regions

Infrastructure building deemed essential - activity maintained at most construction sites. Slowdowns/work stoppage to adopt the site with new containment measures

Operation currently resumed on most construction sites; production expected to return at full capacity on 2H 2020

Relations with clients & partners, to ensure continuity of work and workers safety

Supply chain management able to keep projects operating

Ongoing discussion with clients for passthrough of extra costs

Launched stricter cost discipline program

Intense commercial activity notwithstanding tenders date postponement

~€750m prudentially available

cash at corporate level; €1.3bn total group liquidity

No major maturities before June 2021 on long term corporate debt. June 2021 maturing bond management started with €250m new issuance in January 2020

Positive turning point for the infrastructure sector in Italy

Key Facts

Genoa Bridge Completion

Unblocking of Strategic Projects for €1.1bn

Astaldi Homologation

Advance Payments potentially up to 30%

€40bn of Infra. projects could be unblocked in 2020-23, of which ca. €28bn in 2020-21

1H 2020 Webuild Key Achievements in Italy

• ◼ Completion of the new Genoa Bridge in record time
• ◼ Unblocking of Ionian highway and of Genoa Railway Hub for €1.1bn(1)
• ◼ First functional lot of the high-speed/highcapacity railway between Verona and Padua for €2.4bn about to start

Progetto Italia

◼ Final Court approval of Astaldi composition with creditors procedure paving the way to consolidation with Webuild

• ◼ Art. 207 establishes that until 30 June 2021 the advances on public works may be increased by up to 30% (incl. existing projects)(2)
• ^◼ Full potential impact of €1.6bn(1)

(1) Combined Webuild + Astaldi

"Decreto Rilancio" "Decreto Semplificazioni"

• ◼ Acceleration of tender process, disputes resolution and collection of receivables
• ◼ Adoption of a model with extraordinary commissioners to minimize execution times for strategic projects
• ◼ Potential acceleration of high-speed train projects in Italy

Final Approval of Astaldi Composition with Creditors

Source: Management figures as communicated by Astaldi on 27 July 2020 ("Astaldi: consolidated management figures at 30 June 2020")

First Half 2020 Financial Results

(1) Adjusted EBIT calculated excluding the non‐recurring costs related to the composition procedure

(2) The pro-forma balance sheet data reflect the effects of the debt relief as a result of the Composition with Creditors, of the capital increase and the payment of privileged and pre-deductible creditors

Geographical diversification limiting Covid-19 impact

(1) Revenues from contracts with customers (2) United Nations' Sustainable Development Goals to be achieved by 2030

Sizeable backlog, well diversified by activities, geographies & risk profile

Intense commercial activity and disciplined bidding approach

First Half 2020 Financial Results

(3) Awaiting outcome as at July 21th, 2020 (4) Low risk countries include: US, Australia and Europe.

Commercial pipeline at €40bn

First Half 2020 Financial Results (1) Source: Salini Impregilo estimates based on CIC and market intelligence data

Agenda

Financial Update

General Manager Corporate and Finance Massimo Ferrari

1H 2020 Operating Results affected by Covid-19…expected recovery in the second half of the year

1H 2020 Group net income

(€m)	1H 2019	1H 2020	Var
EBIT	138	35	(103)
Financial income	22	43	20
Financial expenses	(58)	(77)	(19)
Net exchange rate (losses)	9	(14)	1 (23)
Net Financial income (costs)	(27)	(49)	(21)
Gain (losses) on investments	11	(11)	(21)
Net financing costs and net gains on investments	(16)	(59)	(43)
EBT	122	(24)	(146)
Income taxes	(47)	(27)	21
Profit (loss) from continuing operations	75	(50)	(125)
Profit (loss) from discontinued operations	(0)	0	0
Non controlling interests	(11)	2	13
Net Income (loss)	63	(48)	(112)

Net Financial charges (€m)	1H 2019	1H 2020	Var
Bank charges	(15)	(20)	(5) A
Bond charges	(16)	(17)	(2)
Leasing	(3)	(3)	0
Refinancing amortized cost	(1)	(1)	(0)
Bond charges capitalization	(2)	(2)	(0)
Subtotal	(37)	(43)	(6)
Other	(22)	(34)	B (12)
Financial charges	(58)	(77)	(19)
Mainly related to interest on Beyond credit line, offset A by positive financial income
B Mainly impacted by evaluation of financial assets

Mainly related to Latin America currencies trend, impacted by health and sanitary emergency; no material cash impact

1H 2020 Cash Flow

(€m)	1H 2019	1H 2020	Var
EBITDA for cash purposes	228	73	(154)
ΔWC	(101)	(299) 1	(198)
Net Capex	(56)	(78) 2	(22)
Other	11	(35)	(46)
Cash flow from operations	81	(339)	(420)
Net Interests	(33)	(31)	2
Taxes	(47)	(46)	1
Variation of short fiscal items (mainly VAT)	39	(25)	(64)
OFCF before dividends & extraordinary items	39	(441)	(481)
Net dividends & other	(17)	(17)	(1)
Capital injection on investments	(128)	(8)	119
Taxes Plants & Paving	(57)	0	57
Change on net financial position	(162)	(467)	(305)

EBITDA for cash purposes (€m)	1H 2019	1H 2020
EBITDA Adjusted(1)	239	96
Lane non-cash JV's result	3	(9)
Other non-cash items adjustment	(14)	(14)
EBITDA for cash purposes	228	73

1 Slow-down on collection of receivables due to COVID-19, while continuing to serve suppliers and sub-contractors according to schedule

2 Increase of Capex mainly related to start of Snowy 2.0 to be covered by advance payments

Improving cash available at corporate level

Key Facts	Net Financial Position
	(€m)	1H 2019	FY 2019	1H 2020
	Total Cash & Other Financial Assets	1,298	1,640	1,994
~€750m Of liquidity available at	Bank Loan Bond Leasing SPV Net Debt	(1,129) (1,096) (162) (13)	(983) (1,105) (160) (22)	(1,726) (1,227) (154) (0)		Gross Debt at June 20 includes
Corporate level	Total Gross Debt	(2,400)	(2,270)	(3,107)		interim financing for Astaldi for €150m
	Net derivatives SPV Net Cash	(2) 0	(2) 0	1 14
Revolving	Net Financial Position	(1,104)	(631)	(1,099)
Credit Facilities	Beyond financial debt	0	(85)	(150)
	Gross Debt (net of Beyond debt)	(2,400)	(2,185)	(2,958)

Increase of Gross Debt related to prudential draw down of revolving credit lines and Astaldi interim financing

0.78x NFP/Net Equity ratio (versus 1.09x in 1H 2019)

prudentially and temporarily drawn down

~ €150m

Debt for Astaldi interim financing(1)

(1) In 2019, within Progetto Italia, a €150 million medium term loan facility aimed at supporting Astaldi's needs prior to court approval of its pending Plan was granted to the Issuer's subsidiary, Beyond. The line is fully draw-down as of June 2020

M/L Corporate Debt

Webuild strategic pillars for long-term growth

Progetto Italia	▪ Improved efficiency by adding scale ▪ Strengthened competitiveness via aggregation of specialised expertise ▪ Higher financial flexibility Execution of Astaldi capital increase by 2020 and consolidation of Astaldi by 2020YE ▪ ▪ Exploring complementary businesses that could stabilize cash flow
Multidomestic Strategy	▪ Increase presence in key geographies, such as Italy, North America and Australia New high potential geographies, such as Europe and Nordic countries ▪
Sector Strategy	Focus on sectors where Group is specialised: Sustainable Mobility, Clean Hydro Energy and Clean ▪ Water ▪ Focus on complex projects with high return on sale
Bidding Strategy	▪ Structured approvals, standardised process and zero-waste approach to ensure focus on bids aligned with overall Group strategy 360°analysis of project (technical, economic, risk) ▪
Operating Efficiency	▪ Structural cost optimisation and rationalisation Increased operating efficiency through centralisation of corporate functions (Procurement, Plants & ▪ Machinery, HR, Finance) and synergies

2020 outlook

• Medium-long term growth drivers confirmed
• Group average book to bill one time the revenues for the year (1x)
• Acquisition of Astaldi accretive to Groups' financial results
• Net financial position expected to improve significantly
• The Group will present a three-year Business Plan in the second half of 2020

Appendix

Income statement

Webuild Group

Reclassified statement of profit or loss adjusted

Interim financial report June 30, 2020	1st Half 2019 Adjusted			1st Half 2020 Adjusted
	Webuild Group	Joint ventures not controlled by Lane (*)	Adjusted	Webuild Group	Joint ventures not controlled by Lane (*)	Condotte out-of court agreement (**)	Adjusted
(€/000)
Revenue
Revenue from contracts with customers	2.362.788	127.963	2.490.751	1.936.417	179.929	-	2.116.346
Other income	219.165	-	219.165	96.764	-	-	96.764
Total revenue and other income	2.581.953	127.963	2.709.916	2.033.181	179.929	-	2.213.110
Operating expenses
Purchases	(298.667)	-	(298.667)	(260.380)	-	-	(260.380)
Subcontracts Services	(929.788)	-	(929.788)	(691.653)	-	-	(691.653)
Personnel expenses	(636.405) (397.512)	-	(636.405) (397.512)	(532.558) (391.981)	-	-	(532.558) (391.981)
Other operating expenses	(77.656)	- (131.294)	(208.950)	(69.482)	- (171.131)	- 15.000	(225.613)
Total operating expenses	(2.340.028)	(131.294)	(2.471.322)	(1.946.054)	(171.131)	15.000	(2.102.185)
Gross operating profit (EBITDA)	241.925	(3.331)	238.594	87.127	8.798	15.000	110.925
EBITDA %	9,4%	-2,6%	8,8%	4,3%	4,9%		5,0%
Impairment losses (***)	798	-	798	(27.118)	-	20.284	(6.834)
Provisions, amortisation and depreciation	(101.574)	-	(101.574)	(68.829)	-	-	(68.829)
Operating profit (loss) (EBIT)	141.149	(3.331)	137.818	(8.820)	8.798	35.284	35.262
R.o.S. %	5,5%	-2,6%	5,1%	-0,4%	4,9%		1,6%
Financing income (costs) and gains (losses) on equity investments
Financial income	22.174	-	22.174	42.629	-	-	42.629
Financial expenses	(58.009)	-	(58.009)	(76.773)	-	-	(76.773)
Net exchange gains (losses)	8.998	-	8.998	(14.487)	-	-	(14.487)
Net financing income (costs)	(26.837)	-	(26.837)	(48.631)	-	-	(48.631)
Net gains (losses) on equity investments	7.510	3.331	10.841	(1.726)	(8.798)	-	(10.524)
Net financing income (costs) and net gains (losses) on equity investments	(19.327)	3.331	(15.996)	(50.357)	(8.798)	-	(59.155)
Profit (loss) before taxes (EBT)	121.822	-	121.822	(59.177)	-	35.284	(23.893)
Income taxes	(47.290)	-	(47.290)	(26.577)	-	-	(26.577)
Profit (loss) from continuing operations	74.532	-	74.532	(85.754)	-	35.284	(50.470)
Profit (loss) from discontinued operations	(187)	-	(187)	-	-	-	-
Profit (loss) before non-controlling interests	74.345	-	74.345	(85.754)	-	35.284	(50.470)
Non-controlling interests	(11.057)	-	(11.057)	2.211	-	-	2.211
Profit (loss) for the period attributable to the owners of the parent	63.288	-	63.288	(83.543)	-	35.284	(48.259)

(*) The Group monitors the key figures of Lane Group for management purposes adjusting the IFRS figures prepared for consolidation purposes to present the results of the non-subsidiary joint ventures consolidated on a proportionate basis. These figures show the status of contracts managed directly by Lane Group or through non-controlling investments in joint ventures (**) The figures shown are adjusted economic data of the effects of the Settlement Agreement with Società Italiana per Condotte d'Acqua S.p.A. in A.S. ("Condotte") which, during the first half of 2020, entailed the recognition of a total amount of € 81 million to Condotte, of which € 66 million through the waiver of the Consortium's receivables from Condotte itself and € 15 million through cash payments. Considering that, at December 31, 2019, a bad debt provision of € 46 million had been posted, the overall effect of the settlement agreement is a charge of € 35 million, of which € 20 million as a loss on receivables - resulting from the waiver to the credit of 66 million net of the use of the aforementioned fund - and € 15 million classified under various management charges, as a transaction charge

(***) Starting from 2019, the Group has decided to present "Impairment losses" separately in the statement of profit or loss for their better presentation. Therefore, the 2019 first half comparative figure has been restated accordingly

Income statement

Webuild Group

Reclassified statement of profit or loss Interim financial report June 30, 2020

(€/000)	1st Half 2019	1st Half 2020
Revenue
from with Revenue contracts customers	2.362.788	1.936.417
income Other	219.165	96.764
income Total revenue and other	2.581.953	2.033.181
Operating expenses
Purchases	(298.667)	(260.380)
Subcontracts	(929.788)	(691.653)
Services	(636.405)	(532.558)
Personnel expenses	(397.512)	(391.981)
Other operating expenses	(77.656)	(69.482)
operating Total expenses	(2.340.028)	(1.946.054)
Gross operating profit (EBITDA)	241.925	87.127
% EBITDA	9,4%	4,3%
Impairment losses (*)	798	(27.118)
Provisions, amortisation and depreciation	(101.574)	(68.829)
Operating profit (loss) (EBIT)	141.149	(8.820)
R.o.S. %	5,5%	-0,4%
Financing income (costs) and gains (losses) on equity investments
Financial income	22.174	42.629
Financial expenses	(58.009)	(76.773)
Net exchange gains (losses)	8.998	(14.487)
Net financing income (costs)	(26.837)	(48.631)
Net gains (losses) on equity investments	7.510	(1.726)
financing income (costs) gains (losses) on equity investments Net and net	(19.327)	(50.357)
Profit (loss) before taxes (EBT)	121.822	(59.177)
Income taxes	(47.290)	(26.577)
Profit (loss) from continuing operations	74.532	(85.754)
Profit (loss) from discontinued operations	(187)	-
Profit (loss) before non-controlling interests	74.345	(85.754)
Non-controlling interests	(11.057)	2.211
Profit (loss) for the period attributable the owners of the to parent	63.288	(83.543)

(*) Starting from 2019, the Group has decided to present "Impairment losses" separately in the statement of profit or loss for their better presentation. Therefore, the 2019 first half comparative figure has been restated accordingly

Statement of financial position

Webuild Group Reclassified statement of financial position Interim financial report June 30, 2020

(€/000)	june 30 2019	31 december 2019	june 30 2020
Non-current assets	1 337 170	1 305 277	1 337 741
Goodwil	75 144	76 062	76 292
Non-current assets (liabilities) held for sale	683 5	976 11	-
Provisions for risks	(71 235)	(137 922)	(129 815)
Post-employment benefits and employee benefits	(59 955)	(61 868)	(70 305)
Net tax assets	286 130	333 352	377 896
Inventories	182 739	156 368	874 157
Contract assets	735 685 1	2 040 450	998 152 1
Contract liabilities	(1 113 380)	(1 186 076)	(1 240 977)
Receivables (**)	2 061 707	1 824 875	1 934 970
Liabilities (**)	(2 870) 651	(2 844) 588	(2 022) 238
Other current assets	642 484	684 995	609 099
Other liabilities current	(315 194)	(323 077)	(313 437)
Working capital	542.171	608.691	907.659
invested capital Net	2.115.108	2.135.568	2.499.468
Equity attributable owners of to the the parent	895.837	1.395.395	1.269.044
Non-controlling interests	115 551	108 750	131 876
Equity	1.011.388	1.504.145	1.400.920
Net financial indebtedness	1.103.720	631.423	1.098.548
Total financial resources	2.115.108	2.135.568	2.499.468

(**) This item shows liabilities of € 23.6 million and assets of € 37.1 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 € 23.9 million and "Assets" for € 2.3 million at 31 December 2019

Net financial position

Webuild Group Net financial indebtedness Interim financial report June 30, 2020

(€/000)	30 june 2019	31 december 2019	30 june 2020
financial Non-current assets	247 068	378 272	424 403
Current financial assets	238 347	241 249	237 901
Cash and cash equivalents	812 317	020 858 1	331 827 1
Total cash and cash equivalents and other financial assets	1.297.732	1.640.379	1.994.131
Bank and other loans and borrowings	(537 989)	(751 256)	(731 129)
Bonds	(1 008) 090	(1 890) 091	(745 491)
liabilities Lease	(98 267)	(98 709)	(93 411)
Total indebtedness non-current	(1 .726.264)	(1 .941.855)	(1 .570.031)
Current portion of bank loans and borrowings and current account facilities	(590 704)	(231 640)	(995 001)
Current portion of bonds	(6 291)	(13 295)	(481 520)
portion of liabilities Current lease	(63 799)	(61 673)	(60 924)
indebtedness Total current	(660 .794)	(306 .608)	(1 .537.445)
Derivative assets	-	268	268 1
Derivative liabilities	(1 694)	(2 012)	(7)
Net financial position with unconsolidated SPEs (**)	(12 700)	(21 595)	13 536
financial (liabilities) Total other assets	(14 .394)	(23 .339)	14.797
financial indebtedness - continuing operations Net	(1 .103.720)	(631 .423)	(1 .098.548)
Net financial indebtedness - discontinued operations	-	-	-
financial indebtedness including discontinued Net operations	(1 .103.720)	(631 .423)	(1 .098.548)
Total gross indebtedness	(2 .399.758)	(2 .270.058)	(3 .107.476)
- of which Beyond	-	(85 .089)	(149 .648)
Total gross indebtedness of Beyond net	(2 .399.758)	(2 .184.969)	(2 .957.827)

(**) This item shows the Group's net amounts due from/to unconsolidated consortia and consortium companies 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 balances are shown under trade receivables and payables in the condensed interim consolidated financial statements

Safe Harbour

This presentation may contain forward-looking objectives and statements about Webuild's (Salini Impregilo) 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