• NEW ORDERS EQUAL TO €6.9 BILLION; 2016 TARGET EXCEEDED
• 2016 TARGETS CONFIRMED
• LANE REVENUES AND CASH GENERATION FOR 2016 EXPECTED HIGHER THAN PRIOR YEAR
• STRONG INFRASTRUCTURE INVESTMENT UPSIDE EXPECTED WITH NEW U.S. ADMINISTRATION

With the aim of maintaining regular and transparent communication with financial markets, Salini Impregilo, as announced on October 25, 2016, has decided to proceed, as of today, with voluntary disclosures of business performance relevant information relating to the first quarter and first nine months.

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Milan, November 10, 2016 - The Board of Directors of Salini Impregilo (MTA: SAL) examined and approved today the following data and consolidated information relating to the first nine months of 2016.

NEW ORDERS IN THE FIRST NINE MONTH OF 2016

Total new orders, including changes at the end of September, amounted to €6.9 billion, already surpassing the target set for the full 2016.

Of the total amount, €5.6 billion are related to Salini Impregilo and €1.3 billion to Lane Industries Inc.

NEW ORDERS BY:

Highlights of new orders received in the first nine months of 2016:

Salini Impregilo

• Construction of the 2,200 MW Koysha hydroelectric dam in Ethiopia for €2.5 billion;
• 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 a hydroelectric Tajikistan project worth €1.751 million 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.

Lane

• Design and construction of the Purple Line transit system in Maryland, U.S.A. in a $2 billion contract (30% of which is held by Lane for €540 million);
• Total Plants & Pavings equal to about €400 million;
• Total Roads & Highways equal to about €200 million;
• Total other minor projects equal to €180 million.

PERFORMANCE BY GEOGRAPHIC AREA

USA

In the United States, the Group has significantly increased its presence with the acquisition at the beginning of the year of Lane Industries Inc, leader in the roads and highways sector. Following the acquisition, the United States has become the biggest single market, representing 23% of revenues. Lane’s integration into the Group is proceeding as planned and is expected to be completed by the end of next year. Growth prospects for the current year are good with revenues expected to be higher than the prior year. Specifically, the Plants & Pavings division was recently strengthened with the acquisition of a production plant in West Virginia in the expectation of higher demand. Working capital dynamics and cash generation have produced better results than the prior year, becoming key contributors to the Group’s effort to reach the free cash flow target set under the business plan presented in May.

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 is seen by experts as a matter that cannot be postponed for much longer. The prospect of substantial investments in renewing existing structures and launching new projects was raised by the president-elect in his campaign as well as his victory speech in New York just after the election. Describing these investments as a priority, he has referred to an ambitious programme involving roads, bridges, tunnels, airports, ports and railways. This could prove to be an excellent opportunity for the Group to grow through its U.S. subsidiaries Lane Industries Inc and SA Healy, which are ideally placed to seize it.

Europe

In Europe, 2016 will probably turn out to be the worst year for the construction industry since 2009, but the cycle that is to begin next year is expected to reverse the trend. In the region, the sector is seen growing by an average of 2.2% per year until 2020, a moderate rate but more encouraging than the trend observed in recent years. The growth dynamics vary from country to country. In Western Europe, growth has been slow in countries like France and Spain. In Eastern Europe, however, it has shown to be more robust, especially in Poland, the largest and most dynamic market. It is in this country where the Salini Impregilo Group was awarded several major highway projects near Warsaw in 2015 and 2016. 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 normally and is more than 80% complete.

Italy

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. Italy’s CIPE (Interministerial Economic Planning Committee) recently approved €1.15 billion of financing for Lot IV of Terzo Valico, ensuring the continuity of the project. The approval brings the combined value of the lots financed so far from €2.9 billion to a total of €4.5 billion.

For the project which involves the Verona-Padua line, the Ministry of Infrastructure announced the completion of authorization procedures by year-end, which raises the prospect that work will start in the first half of 2017.

The CIPE has approved total investments of nearly €40 billion, nearly €13 billion of which is destined to various projects, including the Italian Railway Network (RFI) program, high-speed rail projects, metro lines and safety improvements for railways under concession. Recent statements by the Government about the need to resume and increase investments in infrastructure could prove to be an opportunity for the Group.

Middle East

Major projects in the area are progressing normally, in particular the Riyadh metro in Saudi Arabia and the Red Line of the Doha metro in Qatar, which are among major contributors to revenues expected for the year. Payments from these clients for these projects have been regular. In Qatar, the Group is also building the Al Bayt stadium in Doha for the FIFA World Cup scheduled for 2022. The stadium will have 70,000 seats and it is 17% complete.

The region is expected to have moderate economic growth. The main exporters of hydrocarbons are still suffering from persistently low prices but the scenario is seen to be partially improving. 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. However, geopolitical instability such as the conflicts in Yemen, Syria and Iraq could affect the economic development expected in the countries of the Middle East.

Africa

In Ethiopia, construction of the Koysha dam – a project announced last May – has begun. 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.

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 infrastructure and the economic growth prospects for this region.

Australia

Salini Impregilo has been present in Australia since 2013 when it won a contract to help build the Sydney Metro Northwest Project valued at approximately €220 million. The project is in its final phase, with its completion scheduled for the first months of 2017. The Group has begun work on a new project won early this year called the Forrestfield-Airport Link in Perth, which will establish a link to the airport. The Group recently made the short list for a new project worth €3.6 billion in Melbourne, which includes the expansion of the West Gate Freeway, a tunnel under Yarraville, a second river crossing and connections to the port. The outcome of the tender is expected in the second half of 2017.

Australia stands as one of the most interesting markets for the Group thanks to the substantial investments in infrastructure that the government is undertaking.

Latin America

In Panama, all of the civil and electromechanical work for the new canal has been completed. On May 31, as confirmed by the client, the project became operational and, on June 26, was officially opened. The canal is working regularly, greatly increasing the flow of commercial traffic through the country.

Work on projects in Venezuela, namely the Tocoma dam and the Puerto Cabello railway project, is irregular and marked by slow payments by the client due to the country’s poor economic conditions, mainly related to the drop in the price of oil. These projects are nevertheless considered of strategic importance to the Government, which continues to make periodic albeit irregular payments to guarantee the continuation of the work. The situation is being monitored and the credit exposure, deemed entirely recoverable, is under control.

Overall, South America appears to be slowly recovering, which could lead to a return to infrastructure investment. In Argentina, in particular, prospects have finally become positive as the reformist government of President Macri prepares a model for economic development that encourages open markets and investment.

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OUTLOOK

Targets for 2016 have been confirmed.

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Salini Impregilo’s management plans to participate in a conference organized by Borsa Italiana on November 17-18 in New York to promote its listed companies to U.S. investors.