Salcef S p A : 3Q 2020 Financial Results

A global player in the railway industry

Q3 2020 Financial Results

November 19th 2020

Disclaimer

THIS PRESENTATION IS NOT AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO PURCHASE, OR SUBSCRIBE FOR, SECURITIES

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, forward- looking 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.

2

Table of Content

01		Salcef Group Overview	04		Commercial Development
02		05
	Operative Business Units		Railway Industrial Market
03		06
	Q3 2020 Financial Results		Listing Process and Securities

3

01

Salcef Group

Overview

Salcef Group Overview

HOLDING

• Listed AIM Market from 08.11.2019

• 72, 0% controlled by Finhold S.r.l. - 28,0% Floating and

Promoters

• B of D: 7 members, of which 1 indipendent

• Audit: KPMG	Coordination and control

• Head Count: 1.205 of which 85 External Staff

• 14 Operative Companies
• 9 Operative foreign Branches
• 6 Operative Business Units

BRANCHES COMPANIES

100%	100%		100%	100%	100%	100%	100%		100%			99,48%
	SALCEF S.p.A.	EURO FERROVIARIA S.r.l.	COGET IMPIANTI S.p.A.	OVERAIL S.r.l.	SRT S.r.l.	RECO S.r.l.	SALCEF BAU G.m.b.H.		SALCEF USA Inc.	SALCEF EGYPT
																CONSTRUCTION
												90%
												Delta Railroad
												Construction Inc.
		96,06%
											100%
		Consorzio Stabile Itaca
		S.c.a.r.l.									Deltarr Holding
											100%
											Delta Railroad Company
													of Canada.
100%
											100%
CROAZIA NORWAY UAE	ROMANIA SWITZERLAND				ROMANIA	POLAND SAUDI ARABIA EGYPT

5

Salcef Group Overview

Strategic

Railway Industry

Business

Unit

Operative

Track & Light

Energy, Signalling &

Heavy Civil

Railway

Railway

Engineering

Business

Civil Works

Telecommunication

Works

Materials

Machines

Units

Revenues

Q3 2020

(% Group)

71,2%

12,2%

6,6%

8,6%

1,4%

0%*

* 100% Intercompany

•

Italy

•

Italy

•

Italy

• Italy

•

Italy

•

Italy

Operative

•

Western Europe

•

Western Europe

•

Western Europe

•

Western Europe

•

Middle East

Eastern Europe

Eastern Europe

Geographic

•

•

Area

•

Middle East

•

Middle East

•

North Africa

•

North America

•

North America

6

02

Operative

Business Units

Business Unit Track & Light Civil Works

Track Maintenance

Track Construction

Extraordinary Maintenance

Track Renewal		Ballast Cleaning		Turnout Renewal		Ballasted Track		Slab Track

Light Civil Works

Ordinary Maintenance

Track Tamping & Levelling		Rail Welding		Rail Grinding		Railway Infrastructure		Minor Civil Works

8

Business Unit Track & Light Civil Works

T R A CK & LI G H T CI V I L WO R K S - R EV ENU ES *

( € M)

IFRS Data

[Q3 2019: 164,7 ]

229,6

219,3

202,4 167,5

F Y 2 0 1 7

F Y 2 0 1 8

F Y 2 0 1 9

Q 3

0 2 0

R EV ENU ES DI S T R I B UT IO N

Nat: 89,6%	Nat: 99,9%	Nat: 10,1%	Nat: 96,0%
Int: 10,4%	Int: 0,1%	Int: 89,9%	Int: 4,0%

56,2%
	31,6%
		9,8%	2,5%
E X T R A O R DIN A RY	O R D I N A RY	N E W	L I G H T C IV IL
M A I N T E N A N CE	M A I N T E N A N CE	C O S T R U CT IO N	W O R K S

Revenues Q3 2020 (€M)

** On the consolidated revenues

167,5

71,2% **

NatInt

142,9	24,6
85,3%	14,7%

Strenghts

• High barriers to entry
• Huge equipment investments

(Salcef fleet substitution value over than

€400M)

• Manpower specialization
• Clients' PQ and certifications
• Highly demanding working conditions
• Around 700 employees involved

9

* Q3 2020 / Q3 2019 IFRS data; FY 17_18_19 Ita GAAP data

* Q3 2020 / Q3 2019 IFRS data; FY 17_18_19 Ita GAAP data

Energy, Signalling & Telecommunication

Business Unit

	Activities		Strenghts		Revenues Q3 2020 (€M)
• Railway catenary, signalling, substations,	•	High barriers to entry
	telecommunication construction, ordinary	•	Clients' PQ and certifications	28,8
	& extraordinary maintenance (renewal	•	Highly demanding working conditions
	activities)	•	Huge Italian and European investment	12,2%**
• Construction and maintenance of		plan (Terna 2019-2023 plan with € 6,2
	infrastructure for high and medium		Bn investments + 20%)	** On the consolidated revenues
	voltage electricity transmission (aerial and
	underground)
			ENER G Y , S I G NA LLI NG & T ELECO MMU NI CA T I ON -
					R EV ENU ES * ( € M)
					IFRS Data
					[Q3 2019: 24,5 ]

38,9

	27,9		28,8
22,5
F Y 2 0 1 7	F Y 2 0 1 8	F Y 2 0 1 9	Q 3 2 0 2 0

10

Business Unit Railway Materials

ActivitiesStrenghts

Revenues Q3 2020 (€M)

• Manufacturing of prestressed concrete railway sleepers
• Manufacturing of slab-track systems for unballasted tracks (metro, tramway and railway)
• Manufacturing of concrete segments for tunnels (metro lines)

• Clients' PQ and certifications
• Vertical Integration with trackworks
  BU
• Extensive development possibilities for unballasted solutions
• Development of new solution and patents

20,1

8,6%**

** On the consolidated revenues

R A I LWA Y MA T ER I ALS - R EV ENU ES * ( € M)

IFRS Data

[Q3 2019: 20,7]

31,332,3

20,1

3,6

F Y 2 0 1 7

F Y 2 0 1 8

F Y 2 0 1 9

Q 3 2 0 2 0

11

* Q3 2020 / Q3 2019 IFRS data; FY 17_18_19 Ita GAAP data

Business Unit Railway Machines

ActivitiesStrenghts

Revenues Q3 2020 (€M)

• 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

• Clients' PQ and certifications
• Vertical integration with trackworks and energy BUs
• Market with high margin and few competitors
• Development of new solutions and patents

3,3

1,4%**

** On the consolidated revenues

	RAILWAY MACHINES - REVENUES* ( € M)
			IFRS Data
	13,1
10,6		10,5	[Q3 2019: 5,1 ]
			3,3
F Y 2 0 1 7	F Y 2 0 1 8	F Y 2 0 1 9	Q 3 2 0 2 0
			12

* Q3 2020 / Q3 2019 IFRS data; FY 17_18_19 Ita GAAP data

Business Unit Heavy Civil Works

		Activities		Strenghts
•	Multidisciplinary railway construction	•	Vertical integration with other Salcef
		projects (civil and technological works)		Group BUs
•	Doubling of existing railway line	•	Salcef Group competitiveness, and all
• Construction of railway stations and		the qualifications for general and
	specialized works
		buildings
• Bridges, viaducts and tunnels
•	Environmental mitigation works

* Q3 2020 / Q3 2019 IFRS data; FY 17_18_19 Ita GAAP data

Revenues Q3 2020 (€M)

15,6

6,6%**

** On the consolidated revenues

H EA V Y CI V I L WO R K S - R EV ENU ES * ( € M)

92,9			IFRS Data
			[Q3 2019: 5,0 ]
	17,2	10,1	15,6
F Y 2 0 1 7	F Y 2 0 1 8	F Y 2 0 1 9	Q 3 2 0 2 0

Most of the Revenues are referred to small projects in Germany for the renewal of railway bridges

13

Business Unit Engineering

ActivitiesStrenghts

Revenues Q3 2020 (€M)

• 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

• Clients' PQ and certifications
• Vertical integration with trackworks and energy BUs
• Market with high margin and few competitors
• Development of new solutions and patents

0,9

0%**

** On the consolidated revenues - 100% Intercompany

E N G I N E E R I N G - R E V E NU E S * ( € M)

IFRS Data

			[Q3 2019: 1,1 ]
1,4	1,6	1,5
			0,9
F Y 2 0 1 7	F Y 2 0 1 8	F Y 2 0 1 9	Q 3 2 0 2 0

14

* Q3 2020 / Q3 2019 IFRS data; FY 17_18_19 Ita GAAP data

Salcef Group Q3 2020 Production Analysis

Operative B.U. Revenues	Q3 2020	%	Q3 2019	Inc. %		(€)
€x 1.000
Track and Light Civil Works	167.517,9	71,2%	164.661,3	74,9%	2.856,6
Energy, Signalling & Telecommunication	28.751,8	12,2%	24.460,7	11,1%	4.291,1
Heavy Civil Works	15.610,5	6,6%	5.046,6	2,3%	10.564,0
Railway Machines	3.268,0	1,4%	5.104,8	2,3%	(1.836,8)
Railway Materials	20.136,6	8,6%	20.671,8	9,4%	(535,2)
Total	235.284,8	100%	219.945,2	100%	15.339,6

• Despite Covid19 emergency no relevant impact on the production value on main operative business units:
  o Track and Light Civil Works: +€2,9M (+1,7%)
  o Energy, Signalling and Telecommunication: +€4,3M (+17,5%)
  o Railway Materials: -€0,5M (-2,5%)
• Heavy Civil Works: +€10,6M (>100%) due to the contribution of Salcef Bau GmbH on the Business Unit value.
• Railway Machines: -€1,8M (-36,0%) mainly due to an increasing of sales during Q3 2019, expected in Q4 for 2020

Commercial Area Revenues

€x 1.000

Italy

Eastern Europe

Western Europe

North America

Middle East

North Africa

Total

Q3 2020	%	Q3 2019	Inc. %	(€)
189.975,9	80,7%	191.406,0	87,0%	(1.430,1)
4.621,4	2,0%	13.370,8	6,1%	(8.749,4)
33.295,5	14,2%	8.700,5	4,0%	24.595,1
1.634,3	0,7%	0,0	0,0%	1.634,3
4.877,7	2,1%	3.938,7	1,8%	939,1
880,0	0,4%	2.529,3	1,1%	(1.649,3)
235.284,8	100%	219.945,2	100%	15.339,6

Comparing last year results:

• Low decresasing of «National» production -€1,4M (-1,21%)
• Eastern Europe: -€8,7M (-68,7%) decrease in production value due to the Group strategy of decreasing business in this area.
• Western Europe: +€24,5M (>100%) due to the contribution of

1. Salcef Bau GmbH

• 1. Austrian JV of Coget Impianti S.p.A. o Increase of Norwegian production
• North Africa: decrease in production value due to the final stage of Egyptian Project
• North America: + €1,6M (+100%) related to the post-acquisition production (starting 15/09/2020) by Delta Railroad Construction

15

03

Q3 2020

Financial Results

Salcef Group Q3 2020 Financial Results

€M	Q3_2020 YTD
IFRS
Revenues	235,3
EBITDA	57,1
EBITDA Margin (%)	24,3%
EBIT	41,1
EBIT Margin (%)	17,5%
	* Adj
Net Profit	27,5
	* Adj
Net Profit Margin (%)	11,7%

€M	Q3_2020 YTD
IFRS

Delta

Contribution after acquisition

1,63

0,7%

0,46

0,8%

0,37

0,9%

0,24

0,9%

Q3_2019 YTD	(€)	(%)
IFRS	IFRS	IFRS
219,9	15,3	7,0%
48,5	8,5	17,6%
22,1%	2,2%	9,9%
37,3	3,9	10,4%
17,0%	0,5%	3,2%
24,0	3,5	14,5%
10,9%	0,8%	7,1%
FY_19 YTD	(€)	(%)
IFRS	IFRS	IFRS

IFRS Q3 2020 vs IFRS Q3 2019

Revenues: compared to LY19 increase is equal to €15,3M (+7,0%) in line with the past 1H financial results

EBITDA: compared to LY19 increase is equal to €8,5M (+17,6%) due to:

• Increasing of revenues, decreasing of material and service costs related to the internalization of works and major use of manpower on sites

EBIT: compared to LY19 increase is equal to €3,9M (+10,4%)

Adj NFP:

• Compared to FY19 decrease is equal to €33,6M (-71,5%), mainly due to:
  o €3,6M for buyback transaction
  o €16,9M for dividend distribution [20/05/2020]
  o €31,6M for acquisition of Delta Railroad Construction [15/09/2020]

	* Adj			* Adj
NFP	13,4			47,00	-33,61	-71,5%
		2,26
	* Adj	16,9%	* Adj
PN	257,9			250,0	7,90	3,2%
		2,70
		1,1%

*Adj: did not consider negative impact caused by Warrant Fair Value

17

Salcef Group Q3 2020

Financial Results - Proforma Comparing

	Salcef Group**
€M	Q3_2020 YTD
Salcef Group
Revenues	233,7
EBITDA	56,2
EBITDA Margin (%)	24,1%
EBIT	40,4
EBIT Margin (%)	17,3%
	** Adj
Net Profit	27,2
	** Adj
Net Profit Margin (%)	11,6%
€M	Q3_2020 YTD
Salcef Group
	** Adj
NFP	11,1
	* *Adj
PN	255,2

Delta	Salcef Group
ProForma Q3-2020**	ProForma Q3 2020
Q3_2020 YTD	Q3_2020 YTD
Delta	Total
36,4	270,1	16%
8,7	64,9	16%
24,0%	24,0%	--
6,8	47,1	17%
18,6%	17,5%	1%
6,1	33,3	22%
16,8%	12,3%	6%
Q3_2020 YTD	3Q_2020 YTD
Delta	Total
2,26	13,4	20%
20,2	275,4	8%

Salcef Group [net Delta] + 9 months pro forma Delta [IFRS]

• +16% of Revenues, for a total amount of €270M
• Total EBITDA of €64,9M in line with the Group results (24%), with a contribution of €8,7M
• Increasing of EBIT Margin +1%
• +22% of Net Profit amount - +6% of Net Profit Margin

Adj NFP:

• Increasing of Adj NFP (+20%), related to a positive contribution equal to €2,26M

**

Exchange rates

Balance sheet results: Spot at 30/09/2020 - Eur/Usd 1.1708

Profit&Loss: Avg at 30/09/2020 - Eur Usd 1.125

18

* Salcef Group not considering post-acquisition Delta impact - **Adj: did not consider negative impact caused by Warrant Fair Value

Salcef Group Mar - Apr 2020 Covid Impact

• Q3 2020: total Covid19 impact on Salcef Group production is - 7,2% on the scheduled production
• At Q3 2020 there was no financial impact due to Covid19 Emergency

€x1.000

-€18,2M

• During March 2020 there were first signs of a production slowdown
  o March 2020 Actual vs Budget: -€10,3M
  o Italian Production: Covid Impact on trackworks and energy operative business units due to the initial problems linked to the displacement of manpower in Italy
  o Foreign Production: no relevant impacts on the production
• April 2020 Act vs Bdg -€7,8M, lower than previous month.
• Trackwork BU : more than 100% of site convertions. Taking advantage of reduced railway line use due to COVID19, 14 new sites not in the budget were opened (e.g: extraordinary maintenance on the Rome-Naples high speed line), despite 7 blocked sites
• Energy Signalling & Telecommunication BU: Most of the relevant sites are located in Northern Italy. In particular COGET Impianti S.p.A., specialized in the Energy B.U., is located in the initial Red Zone
• No particular effects on the other operative business units
• In May and June 2020 the production has fully resumed, confirmed by an increase in full production Q3 2020 (€235,3M) compared Q3 2019 (€219,9M)

19

Salcef Group Q3 2020 Financial Results

Net Financial Position

€M

Specific of financial debt:

• Duration: approx. 36 months

• Average of replacement: rolling

• Structure: Corporate

• Coverage: the whole Italian banking system

(€52,1M)	[FY 2019: 55,9 ]

[FY 2019*: 47,0]

• Cash/Cash Equivalent: €168,7M**

• Net Cash/Cash Equivalent; €116M

• NFP Q3 2020 Ita GAAP: €26,6M before (IFRS)

• NFP Q3 2020: €13,4m total effect due to:

• Impact Lease Accounting Ex IFRS 16

• Impact FVTPL Financial Assets Ex IFRS 9

**

*NFP IFRS (Q3 2020 - FY 2019) did not consider negative impact caused by Warrant Fair Value

** Before (i) €3,6M for buyback transaction - (ii) €16,9M for dividend distribution [20/05/2020] - (iii) €31,6M for acquisition of Delta Railroad Construction

20

Salcef Group Q3 2020 Backlog

		BACKLOG EVOLUTION
			Italy Foreign
		€864M
		9,1%	€712M
	€554M		7,4%	€601M	€594M
	18,6%			17,4%	23,1%
		90,9%
			92,6%
	81,4%			82,6%	76,9%
	F Y 2 0 1 6	F Y 2 0 1 7	F Y 2 0 1 8	F Y 2 0 1 9	Q3 2 0 2 0
	€x1.000
	Business Unit			Amount	%
	Track and Light Civil Works		358.516,5	60,4%
	Track and Light Civil Works - Foreign		69.506,1	11,7%
	Energy			145.228,4	24,5%
	Railway Materials			7.442,9	1,3%
	Heavy Civil Works			8.414,3	1,4%
	Railway Machines			4.573,4	0,8%
	Total			593.681,5	100,0%

BOOK TO BILL EVOLUTION

1,97
								0,97
					0,74	0,58
			0,51
	0,07					0,36
	0,26		0,26
Y 2 0 1 7	1 H 2 0 1 8	Q3 2 0 1 8	Y 2 0 1 8	1 H 2 0 1 9	Q3 2 0 1 9	Y 2 0 1 9	1 H 2 0 2 0	Q3 2 0 2 0

• Backlog Value: €594M of which €456M (77%) from Italian market and €137M (23%) from the foreign market confirming the increase trend.
• Revenues Coverage: Salcef Group order backlog stands at €594M as at the end of Q3 2020, offering 24 month visibility (2,04 x Revenues)
• Book to Bill Ratio: the ratio (0,97), in line with 1H 2020 growing.

21

04

Commercial Development

Salcef Group Highlights Strong International Focus

• March 12th 2020: Salcef USA Inc. was established. This new Salcef Group company to develop production and infrastructure for the US and Canadian markets, the largest in the world, with around 200.000 km.

• Sweden and Denmark are target markets for the Salcef Group in order to strengthen its position in the Scandinavian peninsula area

• Australia: The railway market in Australia is growing in freight, passenger and urban transport system, with huge public and private investment.

MARKET COMMERCIAL INTEREST

ACTIVE MARKET

23

Strategic Highlights 9th acquisition in 20 years [o.w. 5 in last 5 years]

1998

2003

2007

2012

2015

2017

2018

2019

2019

*Business Combination

2020

Railroad Construction Inc.

Ohio U.S.A.

24

Salcef Group ESG

Salcef has always followed an industrial development model that embraces sustainable development: in every activity we adopt practices based on corporate social accountability, to create value for clients, for society and for the community, while respecting the environment.

2021 - 2022 Goal: Corporate Social Responsability Report

Enviroment

	E
	From 2017 to 2019
-48%	Reduction in waste
	Reduction in fuel

	-45%		consumption for cars
		-5%	Reduction in overall
		diesel consumption
-65%			Reduction in energy
		consumption

	Safety
	S
	From 2018 to 2019
			12% Increased training
			hours per worker
-18%			Reduction in average
			length of accidents
-44%			Average reduction
			in accident severity
-35%			Average reduction
			in accidents

Governance

G

Governance factors:

• Fairer management pay, increased controls
• Compliance Respect for laws and ethics
• Implementation of corporate liability and anti-corruption regulations with the Board of Directors independence criteria
• Attention to the regulation of the market in which the Salcef Group works

25

05

Railway Industrial Market

Railway Industry Market Italian Market - Ferrovie dello Stato

FS S.p.A.

Investment Plan 2019 -2023 for € 58 Billion

Metro

Infrastructure;

€2Bn	Trains and buses;

€12Bn

€58

Billion

Railway
Infrastructure;	Roads ; €14Bn
€28Bn

Other ; €2Bn

FS S.p.A. Investment Plan 2019-2023 for € 58 Billion foresees investments for € 13Bn per year, about 75% respect to 2018 (€ 7,5 Bn)

RFI S.p.A. (100% controlled by FS)

	Investment Plan 2019 -2023 for € 25 Billion
				CAGR: +9.0%
€ Bn
Investments	2,7			2,8	2,9	3,0	3,1
				2,2
					2,0
Billion					1,6
1,2			1,4
0,3	0,4	0,5	0,5	0,6
€
	2019		2020	2021	2022	2023
				Business Plan
	South Italy lines		New lines	Mantenance, safety and upgrades

RFI Investment Plan 2019-2023 (part of the FS Plan), foresees investments of over

• 25Bn, of which €14.5Bn in maintenance, safety and upgrades.

27

Railway Industry Market Global and European Market

World Railway Market

	CAGR: +3.6%
Services and	Rolling stock
Infrastructure
		192

• Bn

163

80,0

68,0

103

103,0	112,0
95,0

2 0 0 3 - 2 0 0 5 2015 - 2017 2021 - 2023

Source: World Rail Market Study 2018-2023

European Railway Market

CAGR: +9.5%

	Recostructions	Renovations
	Maintenance	New infrastructure
€ Bn
				49,6	46,1
			44,9
		38,4		10,4	7,9
	35,9	11,3
29,2	8,8	12,1		10,8	11,3
8,8			13,2
10,3	9,3		14,5
		13,8
10,7
	16,8	17	20,4	13,9	13,1
9,7
2 0 1 1	2 0 1 2	2 0 1 3	2 0 1 4	2 0 1 5	2 0 1 6

Source: 6th report monitoring developments in the railway market under Article 15, Paragraph 4 of Directive 2012/34/EU of the European Parliament and Council

Europe: more than € 45Bn invested annually, more than 50% for maintenance and renovation.

Germany: the value of the Deutsche Bahn 10-year Business Plan is € 86 Bn

with an increase of 54%. Compared to the last BP is "the biggest railway

modernization program"

Norway: NOK 120 Bn the value of the Bane Nor Business Plan 2018-2023 is approx. € 12 Billion. The BP covers new projects, renewal and investments.

28

06

Listing Process

and Securities

Listing Process and Securities Listing Information

Listing Highlights

• Total shares at 01.11.2020: 43.504.796 o.w. o 41.744.796 ordinary shares
  o 1.500.000 performance shares o 260.000 special shares
• Warrants at 01.11.2020: 15.238.328 o.w.

• 1. W1 7.926.093 o W2 7.312.235
• Floating and promoters at 01.11.2020: 28,0%
• Controlling Shareholder: Finhold S.r.l.

1. 72,0 % CS

1. 72,4% voting rights

Buyback

• Buyback planning: started on 28.05.2020
• Duration: max 18 months
• Max purchasable shares: 10% of total
• No. treasury shares at 13.10.2020: 300.000
• Totally cash out: €3,6M
• % Treasury shares on total at 01.11.2020: 0,6896%

No. treasury shares

MONTHLY BU YBACK

146.694

		84.140
8.632			25.221
M A Y - 20	J U N - 20	J U L - 20	A U G - 2 0

30

Listing Process and Securities Stock Data

• Market: AIM Italia of Borsa Italiana S.p.A.
• Ticker on Borsa Italiana: SCF
• Listing Price at 08.11.2019: €9,60
• Last Price at 18.11.2020: €11,80
• Market Cap at 18.11.20: €491M
• Max 12 months: €12,50 (September)
• Min 12 months: €8,66 (March)

40%
30%
20%
10%
0%
-10%
-20%
-30%
-40%
-50%
Nov-19	Dec-19	Jan-20	Feb-20	Mar-20	Apr-20	May-20	Jun-20	Jul-20	Aug-20	Sep-20	Oct-20	Nov-20

Source: Thomson Reuters

SCFG.MI

FTITAIM

FTMIB

FTSTAR

Current Data: 31/10/2020

Coverages: Banca Akros, Intermonte, Mediobanca → Average Target Price (ATP) at 31.10.2020: €13,3

31

Listing Process and Securities	Listed Securities
			Salcef Group - Listed Securities
	Share	SCF	ISIN IT0005388266	41.744.796
	Warrant 2024	WSCF	ISIN IT0005388183	7.926.093
	Warrant 2023	WSCF23	ISIN IT0005388191	7.312.235
	Warrant 2024 (WSCF): Warrants give right to buy shares at price of € 0,10 each
	Conversion Ratio: is variable and based on monthly share price with strike price at € 9,30 and Cap at € 13,00

Maximum converted Ordinary Shares: No. 2.273.203 (at Max Conversion Ratio 0,2868x), with capital increase of € 227.320,35

Warrants expiry on 8th November 2024 (or before, in case of "Accelerated Condition", if the Official Price of the Share reaches € 13,00 for at least 15 days out of 30 consecutive days).

Warrant 2023 (WSCF23): Warrants give right to buy shares at price of € 10,50 each

Conversion Ratio: is fix at 1,0x, strike price at € 10,50

Maximum converted Ordinary Shares: No. 7.312.235 (Conversion Ratio 1x), with capital increase of € 76,8M

Warrants expiry on 30th April 2023 (or before, in case of "Accelerated Condition", if the Official Price of the Share reaches € 13,00 for at least 15 days out of 30 consecutive days).

32

*Current Data: 01/11/2020

Listing Process and Securities	Not Listed Securities
		Salcef Group - Not Listed Securities
	Special Shares	ISIN IT0005388274	260.000
	Performance Shares	ISIN IT0005388282	1.500.000

Special Shares: Owned by ISI3 Promoters - Conversion Ratio: in Ordinary Shares 7x

1. Conversion: 100.000 Special Shares to be converted in 700.000 Ordinary Shares (No Lock-Up), at Price Threshold of € 13,50, within 60 Months from BC
2. Conversion: 160.000 Special Shares to be converted in 1.120.000 Ordinary Shares (No Lock-Up), at Price Threshold of € 11,50, within 15 January 2025, in proportion with the conversion of No. 5 Million Warrant2023 in Ordinary Shares.

Performance Shares: Owned by Finhold, No. 1.500.000 (portion of the initial Equity Value) - Conversion Ratio: in Ordinary Shares 5x

1. Conversion: 416.667 Performance Shares to be converted in 2.083.335 Ordinary Shares, at Price Threshold of € 13,00, within 60 Months from BC.
2. Conversion: 416.667 Performance Shares to be converted in 2.083.335 Ordinary Shares, at Price Threshold of € 13,50, within 60 Months from BC.
3. Conversion: 666.666 Special Shares to be converted in 3.333.330 Ordinary Shares, within 15 January 2025, in proportion with the conversion of No. 5 Million Warrant2023 in Ordinary Shares.

33

*Current Data: 01/11/2020

Contacts

Diego Paniccia

Investor Relator

Tel: [phone]

E-mail: [e-mail]