Webuild — Investor Presentation 2021

Mar 22, 2021

Full Year 2020 Financial Results

22 March 2021

Agenda

Business Update

Pietro Salini Chief Executive Officer

Financial Update

General Manager Corporate and Finance Massimo Ferrari

Outlook & Closing Remarks

Pietro Salini Chief Executive Officer

Highlights

Key Facts

• Financial Targets exceeded, on track to achieve 2023 Strategic Targets
• Completed the acquisition of 66% of Astaldi; timing and procedure for Webuild and Astaldi merger set out
• Work on construction sites guaranteed with strictest safety measures

2020 Result and Outlook

• Order backlog of € 41.7 billion, of which € 33.3 billion construction and € 8.1 billion concessions and operation & maintenance
• Net debt better than target: € 441.9 million
• Strong growth in Total Equity: € 2.1 billion, despite write-down of certain assets to improve asset quality
• Dividend proposal: € 0.055 per ordinary share and per savings share; 4.7% dividend yield(1)
• Confirmed outlook for 2021: focus on cash generation

Our commitment to Sustainability and Innovation

• 89% of construction backlog related to projects linked to the advancement of Sustainable Development Goals(1) goals
• New targets linked to greenhouse gas emissions, safety, gender diversity, innovation
• Management remuneration linked to specific ESG targets

2020 – a year that, notwithstanding the pandemic, saw Webuild Group delivering its strategy…

…with a prompt response to COVID-19 emergency…

…and spot-on financial targets

Full Year 2020 Financial Results

• (1) Pro-forma including Astaldi's contribution for twelve months of 2020
• (2) Direct and Indirect Workforce
• (3) United Nations' Sustainable Development Goals to be achieved by 2030

Our contribution to Sustainable Development Goals(1)

(4) Values referred to the main Group's markets, based on input-output matrixes

Webuild climate change ambitions and ESG targets

Completed the acquisition of 66% of Astaldi; integration on track timing and procedure for the merger already settled

Continued de-risking: increased revenues incidence from western countries and reduced exposure to top ten projects

Key Facts

36% Top 10 projects revenues share (vs 47% in FY 2019)

89% Revenues related to projects that contribute to SDG(2) advancement; 55% from low carbon projects

Revenues by activity(1)

Sizeable backlog, well diversified by activity, geography & risk profile

Full Year 2020 Financial Results 11 (1) Including Construction, Concessions, O&M, Fisia Italimpianti and NBI (2) Including NBI (3) United Nations' Sustainable Development Goals to be achieved by 2030

Agenda

General Manager Corporate and Finance Massimo Ferrari

FY 2020 Operating Results in line with targets

Full Year 2020 Financial Results

include Astaldi (2) Pro-forma Astaldi consolidation for 12 months - management data not subjected to auditing

(3) Excluding bargain from Astaldi's acquisition

FY 2020 Group Net Income

E-MARKET SDIR
CERTIFIED

(€m)	FY 2019(1)	FY 2020(1)	Var
EBIT	184	563	379
Financial income	70	81	11
Financial expenses	(147)	(156)	(9)
Net exchange rate (losses)	4	(44)	1 (48)
Net Financial income (costs)	(73)	(119)	(45)
Gain (losses) on investments	(19)	(113)	(94) 2
Net financing costs and net gains on investments	(92)	(231)	(139)
EBT	92	332	240
Income taxes	(78)	(56)	21
Profit (loss) from continuing operations	14	275	262
Profit (loss) from discontinued operations	(1)	(5)	(4)
Non controlling interests	(8)	5	13
Net Income (loss)	5	275	270

Net Financial charges (€m)	FY 2019	FY 2020	Var
Bank charges and commissions	(41)	(57)	A (16)
Bond charges	(35)	(42)	(7)
Leasing	(7)	(6)	0
Subtotal	(83)	(105)	(22)
Other	(65)	(51)	B 14
Financial charges	(147)	(156)	(9)

• A Mainly related the RCF facilities drawdown and to bond exchange operation

• B Mainly impacted by de-valuation of financial assets

• 1 Mainly related to Latin America and Ethiopian currencies trend; no material cash impact

• 2 Mainly related to impairment test on the investment in Grupo Unidos por el Canal - GUPC

Net debt better than target

Key Facts	Net Financial Position
	(€m)	FY 2019	1H 2020	FY 2020
~€1.170m Of liquidity available at Corporate level(2)	Total Cash & Other Financial Assets Bank Loan and other loans Bond Leasing SPV Net Debt	1,640 (983) (1,105) (160) (22)	1,994 (1,726) (1,227) (154) (0)	3,116 (1,845) (1,536) (178) (1)	Net Financial Position reduction mainly due to the positive contribution of reduction in net working capital, thanks to: ▪ Cash-in of advances payments
	Total Gross Debt	(2,270)	(3,107)	(3,560)	related to Relaunch Decree
Revolving	Net derivatives SPV Net Cash	(2) 0	1 14	2 0	Recovery of receivables vs 1H ▪ 2020
Credit Facilities prudentially and	Net Financial Position	(631)	(1,099)	(442)
temporarily drawn down	Gross Debt evolution			Net Equity
€2.085m Total Equity	€ m ~300 150 3,107	3,560	~(1,170)		FY 2020

0.21x NFP/Net Equity ratio (versus 0.42x in FY 2019)

(+€580m vs FY 2019)

Venezuela fully written-off

Full Year 2020 Financial Results

Successfully managed most significant debt maturities up to mid-2022

Strategic Drivers 2021-23

Guidelines Progress

Consolidate presence in Italy

• Accelerating work on projects in the order book
• Taking advantage of the Group's greater scale to seize opportunities arising from Italy's latest measures for the infrastructure sector (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(1)

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)

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

• Unblocked €3.6bn of strategic projects
• New order and best offer in 2021for €2.5bn (highway Pedemontana Lombarda, Fortezza-Ponte Gardena railway and Messina-Catania high-capacity)
• First tenders submitted for road maintenance
• Ongoing discussion for our proposal to act as General contractor – that foresees grouping of works into big lots
• Ca 90% tenders awaiting outcome and to be presented in low-risk countries(1)
• 10% of efficiencies delivered in 2020
• Started activity on the other work-streams
• 89% construction backlog(2) related to related to projects that contribute to SDG(3)
• Non-financial KPIs included in 2020-22 LTI Plan
• Set ESG targets, to be achieved by 2022-23

(1) Including Italy, North America, central and northern Europe and Australia (2) Including Fisia Italimpianti Plants

Strong commercial pipeline, with focus on North America, Europe, Italy and Australia

Targeting development of sustainable infrastructure in Italy…

(1) With reference to projects proposed for inclusion in Next Generation EU funds (2) Combined figures for projects to be unblocked and road maintenance

(3) Reduction enabled by moving traffic from sea (current) to rail/road (post-intervention)

…with innovative solutions for environment, people and customers

Cost-saving program to improve operating efficiencies and capture synergies with Astaldi

2021-2023 Financial Trajectory of Core Business

We have come a long way…

Appendix

We build large, complex infrastructure for Sustainable Mobility, Clean Hydro Energy, Clean Water and Green buildings

Leading Builder of Large, Complex Infrastructure

114 Years

5 Continents 50

Countries

70,000(1) Direct and indirect workforce

60,000 Additional jobs created in the wider economy

>100 Nationalities

Global Footprint

Our history of iconic projects and major acquisitions

1911 Simplon Railway Line

1936 Morasco Dam

1957 Val di Lei Dam

2008 Ospedale dell'Angelo

2013 Naples Underground Line 1

2016 New Panama Canal Expansion

2019 Cityringen Metro Line

		1906 Girola and Lodigiani create their respective companies
		1936 Pietro Salini starts up his own activity, Salini Costruttori
		1959 Cogefar Costruzioni Generali Farsura is established
		1982 100% of the American company S.A. Healy is bought

1994 Impregilo is born from the merger among Cogefar Impresit, Girola, Lodigiani & Impresit-Girola-Lodigiani 2009 Salini Costruttori acquires Todini

2014 Salini Impregilo is born from the merger between the two companies

2019 Progetto Italia is announced to launch one of the largest International construction groups 1929

"Impresit" – Imprese italiane all'estero is established

1956

Impresit, Girola, Lodigiani and Torno work together to build Kariba Dam

1960 Impregilo (Impresit-Girola-Lodigiani) is established

1989 Cogefar Impresit is born from the merger between Cogefar and Impresit

1998 Impregilo acquires Fisia

2011 Salini Costruttori starts acquiring Impregilo shares

2016 Salini Impregilo acquires 100% of Lane Construction

2019 Salini Impregilo starts acquisition of Cossi and Seli

2020 Salini Impregilo changes its name to Webuild and complete the acquisition of Astaldi

1926 Mignano Dam

1946 Viaduct of Recco

1961 Akosombo Hydroelectric Plant

2009 Turin - Milan High Speed Railway

2015 Warsaw Underground Line 2

2018 Sydney Metro Northwest

Genoa San Giorgio Bridge

Full Year 2020 Financial Results

Income Statement

Webuild Group

Reclassified statement of profit or loss adjusted Financial Statement December 31, 2020

			FY 2019 Adjusted		FY 2020 Adjusted
(€/000)	Webuild Group	Joint ventures not controlled by Lane (*)	Impairment Venezuela	Total Adjusted	Webuild Group	Joint ventures not controlled by Lane (*)	Impairment Venezuela	Condotte out-of-court agreement (**)	Total Adjusted
Total revenue and other income	5.129.962	201.200	-	5.331.161	5.021.823	292.712	-	-	5.314.534
Gross operating profit (EBITDA)	531.159	(108.603)	-	422.556	760.001	4.056	-	15.000	779.056
EBITDA %	10,4%	-54,0%		7,9%	15,1%	1,4%			14,7%
Operating profit (loss) (EBIT)	256.799	(108.603)	35.724	183.919	401.398	4.056	122.517	35.284	563.255
R.o.S. %	5,0%	-54,0%		3,4%	8,0%	1,4%			10,6%
Financing income (costs) and gains (losses) on equity investments
Financial income	69.587	-	-	69.587	80.990	-	-	-	80.990
Financial expenses	(147.062)	-	-	(147.062)	(155.606)	-	-	-	(155.606)
Net exchange gains (losses)	4.288	-	-	4.288	(43.907)	-	-	-	(43.907)
Net financing income (costs)	(73.186)	-	-	(73.186)	(118.524)	-	-	-	(118.524)
Net gains (losses) on equity investments	(127.704)	108.603	-	(19.101)	(108.816)	(4.056)	-	-	(112.872)
Net financing income (costs) and net gains (losses) on equity investments	(200.890)	108.603	-	(92.287)	(227.340)	(4.056)	-	-	(231.395)
Profit (loss) before taxes (EBT)	55.908	-	35.724	91.632	174.059	-	122.517	35.284	331.860
Income taxes	(69.160)	-	(8.574)	(77.733)	(27.041)	-	(29.404)	-	(56.445)
Profit (loss) from continuing operations	(13.251)	-	27.150	13.899	147.018	-	93.113	35.284	275.415
Profit (loss) from discontinued operations	(894)	-	-	(894)	(5.088)	-	-	-	(5.088)
Profit (loss) before non-controlling interests	(14.145)	-	27.150	13.005	141.930	-	93.113	35.284	270.327
Non-controlling interests	(7.983)	-	-	(7.983)	5.061	-	-	-	5.061
Profit (loss) for the period attributable to the owners of the parent	(22.128)	-	27.150	5.022	146.990	-	93.113	35.284	275.387

(*) 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 December 31, 2020

(€/000)	FY 2019	FY 2020
Revenue
from with Revenue contracts customers	4.770.634	4.247.167
Other income	359.327	226.478
Badwill	-	548.177
Total revenue and other income	5.129.962	5.021.823
Operating expenses
Purchases	(571.283)	(575.127)
Subcontracts	(1.773.965)	(1.498.284)
Services	(1.282.093)	(1.181.931)
Personnel expenses	(791.210)	(845.062)
operating Other expenses	(180.252)	(161.418)
operating Total expenses	(4.598.802)	(4.261.822)
operating profit (EBITDA) Gross	531.159	760.001
% EBITDA	10,4%	15,1%
Impairment losses	(102.423)	(173.583)
Provisions, amortisation depreciation and	(171.938)	(185.019)
Operating profit (loss) (EBIT)	256.799	401.398
R.o.S. %	5,0%	8,0%
Financing income (costs) and gains (losses) on equity investments
Financial income	69.587	80.990
Financial expenses	(147.062)	(155.606)
Net exchange gains (losses)	4.288	(43.907)
financing income (costs) Net	(73.186)	(118.524)
gains (losses) on equity investments Net	(127.704)	(108.816)
Net financing income (costs) and net gains (losses) on equity investments	(200.890)	(227.340)
Profit (loss) before (EBT) taxes	55.908	174.059
Income taxes	(69.160)	(27.041)
Profit (loss) from continuing operations	(13.251)	147.018
Profit (loss) from discontinued operations	(894)	(5.088)
Profit (loss) before non-controlling interests	(14.145)	141.930
Non-controlling interests	(7.983)	5.061
Profit (loss) for the period attributable to the owners of the parent	(22.128)	146.990

Webuild Group Reclassified statement of financial position Financial Statement December 31, 2020

(€/000)	December 31 2019	December 31 2020
Non-current assets	1 305 277	1 868 750
Goodwil	76 062	70 020
(liabilities) for Non-current assets held sale	11 976	(5 061)
Provisions for risks	(137 922)	(196 351)
Post-employment benefits and employee benefits	(61 868)	(63 349)
Net tax assets	333 352	371 651
Inventories	156 368	198 325
assets/(liabilities) Net contract	854 374	621 727
Receivables (**)	824 875 1	888 051 1
Liabilities (**)	(2 588 844)	(2 703 236)
Other current assets	684 995	1 006 796
Other current liabilities	(323 077)	(530 544)
Working capital	608.691	481.118
Net invested capital	2.135.568	2.526.778
Equity	1.504.145	2.084.882
Net financial indebtedness	631.423	441.895
financial Total resources	2.135.568	2.526.778

(**) This item shows liabilities of € 3.3 million and assets of € 1.8 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 € 23.9 million and "Assets" for € 2.3 million at 31 December 2019

Net Financial Position

Webuild Group Net financial indebtedness Financial Statement December 31, 2020

	dicembre 31 2019	dicembre 31 2020
Non-current financial assets	378 272	321 951
financial Current assets	241 249	339 003
equivalents Cash and cash	1 020 858	2 455 125
Total cash and cash equivalents and other financial assets	1.640.379	3.116.079
Bank and other loans and borrowings	(751 256)	(767 494)
Bonds	(1 091 890)	(1 288 620)
Lease liabilities	(98 709)	(98 881)
Total non-current indebtedness	(1 .941.855)	(2 .154.995)
portion of borrowings Current bank loans and and current facilities account	(231 640)	(1 077 309)
Current portion of bonds	(13 295)	(246 910)
Current portion of lease liabilities	(61 673)	(79 557)
Total current indebtedness	(306 .608)	(1 .403.776)
Derivative assets	268	2 259
Derivative liabilities	(2 012)	(0)
Net financial position with unconsolidated SPEs (**)	(21 595)	(1 461)
Total other financial assets (liabilities)	(23 .339)	797
financial indebtedness - continuing operations Net	(631 .423)	(441 .895)
Net financial indebtedness - discontinued operations	-	116
Net financial indebtedness including discontinued operations	(631 .423)	(441 .779)
gross indebtedness Total	(2 .270.058)	(3 .560.233)

(**) 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 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