Webuild — Investor Presentation 2021

Jul 30, 2021

First Half 2021 Financial Results

30 July 2021

Agenda

Pietro Salini Chief Executive Officer

Financial Update

General Manager Corporate and Finance Massimo Ferrari

Pietro Salini Chief Executive Officer

Highlights

Key Facts

• Acceleration on de-risking process:
  • Record New Orders in Core Markets: Italy, Australia, United States, France and Switzerland
  • 70% Construction Backlog and 80% Revenues in low-risk areas
  • Net Debt more than halved: down from €1.1bn to €0.5bn in last 12 months
• Positive outlook for infrastructure market in Italy and Worldwide, facing post pandemic economics recovery
• Completed Astaldi integration process; effectiveness expected by August 1, 2021
• Solid growth in revenues (+42%) and EBITDA (+78%), as a results of operational resumption of construction sites and Astaldi acquisition
• Sharp gross debt reduction despite COVID-19 restrictions: €590m of reduction in respect of 2020 year end

Our commitment to Sustainability and Innovation

• 92% of construction backlog related to projects linked to the advancement of Sustainable Development Goals(1) goals
• Launched 2021-2023 ESG Sustainability Plan; targets linked to greenhouse gas emissions, safety, gender diversity, innovation

Solid first half of the year amid global infrastructure investment boost

Outstanding order intake: € 9.6bn, reaching € 23bn with Texas high-speed railway mega contract

Solid Backlog boosting visibility: ̴5x 2021 revenue target

Core strategic countries(1) make up bulk of revenues: over 80% in 1H 2021

First Half 2021 Financial Results

• (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

Transaction structure

On July 29th, 2021 all the conditions related to the partial and proportional demerger of Astaldi in favour of Webuild were met. The demerger is expected to become effective on August 1 st , 2021

Brennero Base Tunnel Italy

Milan Underground M4 line Italy

I-405 Motorway USA

Danube Braila Bridge Romania

Commercial efforts focused on Italy, Europe, North America and Australia

Encouraging outlook under Italian National Plan for Recovery and Resilience(1)

⁽³⁾ Including additional funds in MIMS plan as per note (2)

Agenda

General Manager Corporate and Finance Massimo Ferrari

1H 2021 Operating Results improve as activities steadily return to pre-COVID levels

• Profitability improvement: EBITDA up +78%, EBIT up +182% driven by operations recovery
• 1H margins still affected by:
  • Sub-optimal efficiency on some sites due to COVID-19 restrictions
  • Frontloaded restructuring costs related to Astaldi integration to generate benefits over 2021-23 plan
  • Marginal short-term squeeze due to raw material cost inflation

1H 2021 Group Net Income

E-MARKET SDIR
CERTIFIED

(€m)	1H 2020(1)	1H 2021(1)	Var
EBIT	35	61	26
Financial income	43	29	(14)
Financial expenses	(77)	(102)	(26)
Net exchange rate (losses)	(14)	19	34
Net Financial income (costs)	(49)	(54)	(5)
Gain (losses) on investments	(11)	(18)	(7)
Net financing costs and net gains on investments	(59)	(72)	(13)
EBT	(24)	(10)	13
Income taxes	(27)	(54)	(27)
Profit (loss) from continuing operations	(50)	(64)	(14)
Profit (loss) from discontinued operations	(0)	(3)	(3)
Non controlling interests	2	9	6
Net Income (loss)	(48)	(59)	(11)

Net Financial charges (€m)	1H 2020(1)	1H 2020(1)	Var
Bank charges and commissions	(24)	(24)	(0)
Bond charges	(19)	(36) A	(16)
Leasing	(3)	(3)	0
Other Financial charges	(31) (77)	B (39) (102)	(8) (26)

• A Including €5.6m of costs related to 2021 bond repaid in June 2021
• B 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

Key Facts					Strong cash flow generation despite typical working capital first half cyclicality
	(€m)	1H 2020(1)	1H 2021	Var	1	Working capital sharply improves against 1H 2020 and usual seasonality in an
€540m	EBITDA for cash purposes	83	178	95	thanks to:	environment still affected by pandemic,
Net Financial Position (vs €1,099m vs 1H 2020)	ΔWC	(330)	1 115	445
	Net Capex	(47)	(98) 2	(50)	▪	solid order intake and related advance payments
	Other	(52)	(26)	26	▪	improvement of cash collection
>€590m Gross Debt reduction (vs FY 2020)	Cash flow from operations	(347)	169	516	2	Mainly related to ramp up of Snowy 2.0
	Net Interests	(34)	(39)	(4)	3	Cash out on court ruling on Panama Canal for €91m
	Taxes	(27)	(60)	(33)
	OFCF before dividends & extraordinary items	(408)	70	478		Net Financial Position
	Dividends/(Capital injection) on equity	(20)	(85) 3	(65)	(€m)	1H 2020	FY 2020	1H 2021
€1.7bn of total cash and €300m of RCF undrawn	investments				Total Cash & Other Financial Assets	1,994	3,116	2,423
	Dividends to shareholders	(27)	(48)	(21)	Bank Loan and other	(1,726)	(1,845)	(1,286)
	Other	(11)	(35)	(24)	loans Bond	(1,227)	(1,536)	(1,520)
	Change on net financial position	(467)	(98)	369	Leasing SPV Net Debt	(154) (0)	(178) (1)	(157) (5)
					Total Gross Debt	(3,107)	(3,560)	(2,968)
					Net derivatives SPV Net Cash	1 14	2 0	5 0
					Net Financial Position	(1,099)	(442)	(540)

Limited debt maturities until mid-year 2022

Agenda

Chief Executive Officer Pietro Salini

Strategic Drivers 2021-23

Guidelines

Consolidate presence in Italy

• Taking advantage of the Group's greater scale to seize opportunities arising from Italy's latest measures for the infrastructure sector (PNRR(1), new advance payment regime and a simplified tender procedure)

Expand in adjacent segments that can enable greater diversification of the order backlog and cash flow, such as infrastructure maintenance in Italy

De-risk the order backlog by taking advantage of opportunities offered by a trend towards more infrastructure investment in markets with low risk profiles(2)

Continue to implement an operational efficiency program worth €120m by 2023, enabled by the digitalization of core processes (e.g. knowledge management, bid-to-win, field process automation and control, workforce planning)

Greater cash flow as a result of low risk contracts, operational efficiencies and assets monetization

Focus on Environmental, Social and Governance (ESG), favoring infrastructure projects that help reduce harmful gas emissions, all the while guaranteeing high worker safety standards.

2021-2023 Financial Trajectory of Core Business

These targets may be susceptible to change as a result of the unpredictable nature of the COVID-19 pandemic

First Half 2021 Financial Results

(1) Excluding Texas HSR

(2) Starting from 2023 include Texas HSR start-up, that is expected to go at full speed in 2024 (ca. 6 years expected timing for project completion)

Our Sustainability Strategy and priorities…

With clear and ambitious targets

-35% Carbon intensity(1) (2022 vs 2017)

-40% Lost Time Injury Frequency (LTIFR)(2) (2022 vs 2017)

20% Female identified in key roles' succession planning (by 2023)

+€30m

Additional investments in high potential innovative projects (by 2023)

…are highly appreciated by independent ratings

Main ESG Ratings

Most recent sustainability awards

Appendix

Our contribution to Sustainable Development Goals(1)

First Half 2021 Financial Results (1) United Nations' Sustainable Development Goals to be achieved by 2030 (2) From ongoing hydro, rail and metro projects once operational

Income Statement

Webuild Group

Reclassified statement of profit or loss adjusted Financial Statement June 30, 2021

		1st half	2020 Adjusted	1st half 2021 Adjusted
(€/000)	Webuild Group	Joint ventures not controlled by Lane (*)	Condotte out-of-court agreement (**)	Total Adjusted	Webuild Group	Joint ventures not controlled by Lane (*) Total Adjusted
Total revenue and other income	2,033,181	179,929	-	2,213,111	3,047,148	90,324	3,137,472
Gross operating profit (EBITDA)	87,127	8,798	15,000	110,925	183,354	14,234	197,588
EBITDA %	4.3%	4.9%		5.0%	6.0%	15.8%	6.3%
Impairment losses	(27,118)	-	20,284	(6,834)	(6,360)	-	(6,360)
Provisions, amortisation and depreciation	(68,829)	-	-	(68,829)	(129,905)	-	(129,905)
Operating profit (loss) (EBIT)	(8,820)	8,798	35,284	35,262	47,089	14,234	61,323
R.o.S. %	-0.4%	4.9%		1.6%	1.5%	15.8%	2.0%
Financing income (costs) and gains (losses) on equity investments
Financial income	42,629	-	-	42,629	29,101	-	29,101
Financial expenses	(76,773)	-	-	(76,773)	(102,360)	-	(102,360)
Net exchange gains (losses)	(14,487)	-	-	(14,487)	19,461	-	19,461
Net financing income (costs)	(48,631)	-	-	(48,631)	(53,798)	-	(53,798)
Net gains (losses) on equity investments	(1,726)	(8,798)	-	(10,524)	(3,730)	(14,234)	(17,964)
Net financing income (costs) and net gains (losses) on equity investments	(50,357)	(8,798)	-	(59,155)	(57,528)	(14,234)	(71,762)
Profit (loss) before taxes (EBT)	(59,177)	-	35,284	(23,893)	(10,439)	-	(10,439)
Income taxes	(26,577)	-	-	(26,577)	(54,052)	-	(54,052)
Profit (loss) from continuing operations	(85,754)	-	35,284	(50,470)	(64,491)	-	(64,491)
Profit (loss) from discontinued operations	-	-	-	-	(3,448)	-	(3,448)
Profit (loss) before non-controlling interests	(85,754)	-	35,284	(50,470)	(67,939)	-	(67,939)
Non-controlling interests	2,211	-	-	2,211	8,583	-	8,583
Profit (loss) for the period attributable to the owners of the parent	(83,543)	-	35,284	(48,259)	(59,356)	-	(59,356)

(*) 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

Income Statement

Webuild Group Reclassified statement of profit or loss Financial Statement June 30, 2021

(€/000)	1H 2020	1H 2021
income Total revenue and other	2,033,181	3,047,148
Gross operating profit (EBITDA)	87,127	183,354
EBITDA %	4 3%	6 0%
Impairment losses	(27 ,118)	(6 ,360)
Provisions , amortisation and depreciation	(68 ,829)	(129 ,905)
Operating profit (loss) (EBIT)	(8 ,820)	47,089
R .o.S %	-0 4%	1 5%
Financing income (costs) gains (losses) on equity investments and
Financial income	42,629	29,101
Financial expenses	(76 ,773)	(102 ,360)
Net exchange gains (losses)	(14 ,487)	19,461
financing income (costs) Net	(48 ,631)	(53 ,798)
Net gains (losses) on equity investments	(1 ,726)	(3 ,730)
Net financing income (costs) and net gains (losses) on equity investments	(50 ,357)	(57 ,528)
Profit (loss) before (EBT) taxes	(59 ,177)	(10 ,439)
taxes Income	(26 ,577)	(54 ,052)
Profit (loss) from continuing operations	(85 ,754)	(64 ,491)
Profit (loss) from discontinued operations	-	(3 ,448)
Profit (loss) before non-controlling interests	(85 ,754)	(67 ,939)
Non-controlling interests	2,211	8,583
Profit (loss) for the period attributable to the owners of the parent	(83 ,543)	(59 ,356)

Statement of Financial Position

Webuild Group Reclassified statement of financial position Financial Statement June 30, 2021

	30 2020	31 december 2020	30 2021
(€/000)	june		june
Non-current assets	1,337,742	1,868,750	1,975,269
Goodwil	76,291	70,020	72,151
Non-current assets (liabilities) held for sale	-	(5 ,061)	(4 ,561)
Provisions for risks	(129 ,815)	(196 ,351)	(197 ,009)
Post-employment benefits and employee benefits	(70 ,305)	(63 ,349)	(51 ,509)
Net tax assets	377,896	371,651	382,007
Inventories	157,874	198,325	197,793
Contract assets	1,998,152	2,754,203	2,538,749
Contract liabilities	(1 ,240,977)	(2 ,132,476)	(2 ,177,916)
Receivables (**)	1,934,971	1,888,051	2,323,709
Liabilities (**)	(2 ,238,023)	(2 ,703,236)	(2 ,895,470)
Other current assets	609,100	1,006,796	961,027
Other current liabilities	(313 ,437)	(530 ,544)	(577 ,127)
Working capital	907,659	481,118	370,766
invested capital Net	2,499,468	2,526,778	2,547,113
Equity attributable the owners of the to parent	1,269,044	1,428,990	1,355,287
Non-controlling interests	131,876	655,893	651,801
Equity	1,400,919	2,084,882	2,007,087
financial indebtedness Net	1,098,548	441,895	540,026
financial Total resources	2,499,468	2,526,778	2,547,113

(**) This item shows liabilities of € 9.4 million and assets of € 4.0 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

Net Financial Position

Webuild Group

Net financial indebtedness

Financial Statement June 30, 2021

(€/000)	30 june 2020	31 december 2020	30 june 2021
Non-current financial assets	424,403	321,951	319,094
Current financial assets	237,901	339,003	388,762
equivalents Cash and cash	1,331,827	2,455,125	1,714,739
equivalents financial Total cash and cash and other assets	1,994,132	3,116,079	2,422,595
Bank and other loans and borrowings	(731 ,129)	(767 ,494)	(778 ,487)
Bonds	(745 ,491)	(1 ,288,620)	(1 ,486,182)
Lease liabilities	(93 ,411)	(98 ,881)	(97 ,902)
Total non-current indebtedness	(1 ,570,031)	(2 ,154,995)	(2 ,362,571)
Current portion of bank loans and borrowings and current account	facilities (995 ,001)	(1 ,077,309)	(507 ,384)
portion of Current bonds	(481 ,520)	(246 ,910)	(33 ,502)
portion of liabilities Current lease	(60 ,924)	(79 ,557)	(58 ,644)
Total indebtedness current	(1 ,537,447)	(1 ,403,776)	(599 ,530)
Derivative assets	1,269	2,259	4,895
Derivative liabilities	(7)	(0)	(0)
financial position with unconsolidated Net SPEs (**)	13,536	(1 ,461)	(5 ,414)
Total other financial assets (liabilities)	14,797	797	(519)
Net financial indebtedness - continuing operations	(1 ,098,548)	(441 ,895)	(540 ,026)
financial indebtedness - discontinued operations Net	-	116	117
financial indebtedness including discontinued Net operations	(1 ,098,548)	(441 ,779)	(539 ,909)
gross indebtedness Total	(3 ,107,477)	(3 ,560,233)	(2 ,967,516)

(**) This item shows the group's net amounts due from/to unconsolidated consortia and consortium companies operating under a cost recharging system. The balance reflects the group's share of cash and cash equivalents or debt of the SPEs. The items making up these balances are shown under trade receivables and payables, respectively, in the consolidated financial statements.

Safe Harbour

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