Exceeded 2016 targets, hit for the 3° year in a row

Excellent Lane performance

Net Debt at €350 million better than target

Total new orders acquired and to be finalized in the first two months 2017 for €1.7 billion

Total Group

Solid level of new orders of €7.3 billion; 2016 target of >1.1x book-to-bill exceeded

Strong Backlog of €36.9 billion and robust short pipeline of €16 billion tenders

Revenues at €6.1 billion; +1.1% vs FY15

EBITDA and EBIT growth vs. FY15, respectively at +9.3% +5.6%

Profitability increase: EBITDA margin at 9.1% (8.5% in FY15) and EBIT margin at 4.9% (4.7% in FY15)

Gross Debt reduced more than €150 million compared to June 2016 and almost unchanged vs. FY15

Lane

• Record backlog of €2.5 billion
• 2017 new orders of €850 million already acquired
• Positive cashflow generation
• Net cash position: positive for about €100 million

The Board of Directors of Salini Impregilo (MTA:SAL) met today to review the preliminary 2016 consolidated financial results, which have not yet been audited by the independent Auditors[1].

Performance by geographical segment

USA

The United States market, thanks to the acquisition of Lane Industries Inc. at the start of 2016, has become one of the biggest markets, representing 25% of Group revenues.

The growth prospects for the U.S. infrastructure market in the coming years appear to be more than promising. The need to rebuild the country’s infrastructure has been outlined by the Trump administration as a key priority. President Trump has made a specific reference to an ambitious programme involving roads, bridges, tunnels, airports, ports and railways for about $1 trillion over ten years. According to American Society of Civil Engineering estimated infrastructures investments needed US by 2020 is $3.6 trillion.

This could provide an excellent opportunity for the Group to seize through its U.S. subsidiaries Lane Industries Inc and SA Healy.

Europe & Italy

Europe including Italy, accounts for another 23% contribution to Group revenues.

In Italy, the Group is involved in two major projects: the Milan-Genoa high-speed, high-capacity railway line, or the so-called Terzo Valico, and the Verona-Padua high-speed, high-capacity railway line.

In Denmark, the Group is involved in the construction of Copenhagen’s Cityringen metro line. Work on the project, one of the Group’s largest, is progressing and is more than 84% complete.

Middle East

The Middle East, contributes for 25% to Group revenues. The three major projects in the area, the Riyadh metro in Saudi Arabia, the Red Line of the Doha metro and the Al Bayt stadium in Doha in Qatar, were respectively 40%, 69% and 21% complete at the end of 2016.

The Middle East is expected to have moderate economic growth. The most important markets in the Middle East (Saudi Arabia, United Arab Emirates and Qatar) are showing slightly more positive expectations compared with the previous year that could herald a recovery in investment in infrastructure in the region.

Africa

Africa represents a 17% contribution to Group revenues. The Group was awarded, Koysha dam in Ethiopia last May. The works started last fall for which a substantial cash advance has already received. Work is also progressing regularly on the GERD (Grand Ethiopian Renaissance Dam), one of the largest infrastructure projects in Africa that, once completed, will become the third largest dam in the world. GERD dam was 65% complete at the end of 2016.

Africa shows the strongest growth expectations among the various geographic regions (+4.4% annual average between 2016 and 2020), thanks to the recovery of investments in infrastructures and the more positive economic growth prospects.

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Net financial position

Gross debt amounts to about €2.3 billion, including bank loans of about €1.2 billion - of which about €0,9 billion medium long term facilities – about €0.9 billion for bonds and leasing for about €0.2 billion. Total cash and other financial assets amount to about €2.0 billion including €1.6 billion of cash & cash equivalents and €0.4 billion of other financial assets. Consolidated net debt was about €350 million at the end of 2016.

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New orders and backlog

New orders totaled €7.3 billion, achieving a book to bill of 1.2x, greater than the 1.1x target declared for 2016.

Main orders acquired in FY16 by Salini Impregilo include:

• Construction of the 2,200 MW Koysha hydroelectric dam in Ethiopia for €2.5 billion;
• Construction of a hydroelectric Tajikistan project worth €1.8 billion under a framework agreement worth a combined total of approximately €3.5 billion. With an installed capacity of 3,600 MW, the dam will be the tallest in the world and double the country’s energy production;
• Design, construction and maintenance of an underground passenger rail line in Perth, Australia, for €790 million;
• Creation of a 12,000-hectare urban residential development northwest of Kuwait City as part of the South Al Mutlaa Housing Project for €467 million;
• Construction of three lots of roadwork in the city of Florianopolis, Brazil for €99 million.

Main orders acquired in FY16 by Lane Industries Inc. include:

• Design and construction of the Purple Line transit system in Maryland, U.S.A.: $2 billion contract (30% of which is held by Lane for €609 million);
• Total Plants & Pavings for €518 million;
• Mid South GAH – Highway equal to €114 million;
• Charleston Port access equal to €96 million;
• Total other projects equal to €237 million.

At the end of 2016, total backlog was €36.9 billion, of which €29.4 billion (€26.9 billion related to Salini Impregilo and €2.5 billion to Lane Industries Inc.) is related to construction and € 7.5 billion to concessions.

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The Board of Directors will review for approval Salini Impregilo S.p.A.’s consolidated financial results ended December 31, 2016 on March 15 as indicated in the 2017 financial calendar.

[1] Reported data for both years refer to operating results. Moreover, 2015 figures are presented on an aggregate basis for comparison purposes. The reconciliation with the IFRS accounting data is presented in the attached annex.