FY17 Consolidated Financial Results

Milan, 15 March 2018

Economic and Financial Results – Underlying Performance  
  • New orders equal to €6.7 billion 
  • Revenues: €6.5 billion (+5.8% vs. 2016)
  • Lane Revenues in USD +16.1% compared to 2016
  • EBITDA margin 9.6%; EBIT margin 5.4%
  • Net Financial Position €457 million
Economic and Financial Results – Adjusted  
  • Net Profit equal to €117.4 million (+67.1% vs. 2016) 
  • Gross Debt equal to €2,304.3 million, down €28 million compared to 2016
Venezuela 
  • Write-off of assets in Venezuela of €314 million (equal to approximately 50% of the total), of which €292.5 million pertaining to the year ended 2017 
Equity and Financial Structure 
  • Net Equity, post Venezuela write-down, equal to approximately €1.1 billion
  • Successfully completed the corporate debt refinancing operation for approximately €1.1 billion, which together with the bond issued in 2016, allowed the Group to refinance about 95% of corporate debt. 
  • Confirmed one of the best financial structure in the industry even with the write-off in Venezuela
Dividend and Call of the Shareholders’ Meeting
  • Proposed Dividend: €0.053 per ordinary share and €0.053 per savings share
  • Annual Shareholders’ Meeting called on April 30, 2018
Outlook 2018 
  • 2018 Targets:
    • Book to bill > 1.1x
    • Expected Revenues: € 6.8 - 7 billion 
    • EBIT Margin ≥ 5%
    • Gross Debt Reduction in the range of € 50 – 100 milion 
  • The company will report the financial results in US Dollars as well as Euros, starting in the first half of 2018

 

Milan, 15 March 2018 –  The Board of Directors of Salini Impregilo (MTA: SAL) met today and approved the consolidated financial results and the separate draft financial statements of Salini Impregilo S.p.A. at December 31, 2017. The Board of Directors examined the adjusted IFRS results to account for the inclusion of the results of Lane Group non-subsidiary JVs, for the write-off of assets in Venezuela, and for the restatement at a constant exchange rate in line with 2016 (Underlying Performance), and the adjusted IFRS results to account for the inclusion of the results of Lane Group non-subsidiary JVs, for the write-off of assets in Venezuela (Adjusted).
Furthermore, the Board of Directors has proposed the distribution of dividends equal to € 0.053 per ordinary share and called the Annual Shareholders’ Meeting on April 30, 2018.
The company will report the financial results in US Dollars as well as Euros, starting in the first half of 2018.
 

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Salini Impregilo Group determined the recoverable amount of the total exposure to entities attributable to the Venezuelan Government matured as of 31 December 2017 following the recent negative developments, linked to the significant deterioration of the creditworthiness of Venezuela.
In light of the results of the analyses carried out with the help of independent experts, the recoverable value of the aforementioned total exposure was determined at € 292.5 million.


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ECONOMIC AND FINANCIAL RESULTS – UNDERLYING PERFORMANCE AT 31 DECEMBER 2017[1]

2017 Revenues amount to approximately € 6.5 billion, with an increase of approximately € 358 million and an increase of 5.8% compared to the previous period.
EBITDA for 2017 came to around € 625 million, an increase of approximately € 48 million, EBITDA margin 9.6%.
EBIT 2017 stands at around € 347 million, with an increase of approximately € 33 million, EBIT margin 5.4%.
The net financial position underlying performance at December 31, 2017 amounted to € 457 million compared to the adjusted value of € 646 million, with a net decrease of approximately € 189 million.

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ADJUSTED CONSOLIDATED INCOME STATEMENT DATA AT 31 DECEMBER 2017[2]

 

The consolidated Revenues, for the 2017 financial year, amounted to € 6,347.8 million compared to 2016 revenues of € 6,124.5 million, and include € 240.6 million and € 240.7 million of revenues respectively of Lane’s non-consolidated JVs. The main contributions to the evolution of adjusted revenues refer to some major projects, including: projects underway at Lane, the work of the Rogun dam in Tajikistan, the Forrestfield Airport Link metro project in Australia, the hydroelectric projects in Ethiopia, as well as the works for the realization of the Meydan One Mall in Dubai in the United Arab Emirates.
EBITDA amounted to € 584.3 million (€ 577.2 million), an increase of 1.2% compared to last year, while EBIT amounted to € 321.9 million (€ 313.5 million), an increase of about 2.7%. The EBITDA margin is 9.2% (9.4%) and the adjusted EBIT margin is 5.1% (5.1%).
Net financial costs amounted to approximately € 192.9 million compared to € 86.5 million in 2016. This item includes: financial costs for € 134.9 million (€ 146.5 million), net exchange rate losses for € 122.8 million (€ 15.5 million positive) partially offset by financial income for € 64.8 million (€ 44.5 million).
The change in the afforementioned items relates to the following effects:
  • an increase in financial income of € 20.3 million mainly attributable to the recognition of interest on receivables due to the Salini Impregilo Group from mostly foreign customers.
  • a decrease in interest and other financial charges of € 11.6 million relates to the refinancing of the debt completed in 2017, which led to a reduction in bank debt in connection with the issue of a bond with better interest rates than the previous ones. This decrease is partly offset by the recognition of interest relating to a tax claim notified to the Ethiopia branch and settled during the 2017 financial year.
The result of currency management equal to € 122.8 million is mainly due to the performance of the Euro against the US dollar and the Ethiopian currency (Birr). The foreign exchange rate differences are, for the most part (about 85%), used exclusively for valuation purposes and do not imply a cash payment or collection.
The gain on investments amounted to € 95.9 million, with an increase of € 111.2 million from 2016. The change is related to the increase in the results for the period of the investments valued with the equity method, mainly due to the income from investments of the associated Autopistas del Sol S.A. (AUSO.BA) and reflects the effects of the indemnity provided by the renegotiation contract in favor of Autopistas del Sol S.A. by the Argentine government.
The adjusted EBT stood at € 224.9 million, compared to € 211.7 million in 2016.
Adjusted income taxes amounted to € 82.7 million (€ 81.3 million). The adjusted tax rate is equal to 36.8% (38.4%).
 
The net result attributable to minority interests amounted to € 22.9 million (€ 39.6 million) and was mainly due to the entities in Saudi Arabia that deal with the construction of Line 3 of the Riyadh Metro for about € 13.8 million and some entities controlled by Lane for a value of € 9.3 million.

 

ADJUSTED CONSOLIDATED BALANCE SHEET DATA AT 31 DECEMBER 20172

 

 
The adjusted net financial position at 31 December 2017 is negative and equal to € 646.0 million, compared to the net financial position at 31 December 2016 negative for € 350.8 million.
 
The overall change in this item is mainly due to the following effects:
  • reduction of cash and other financial assets for € 329 million;
  • reduction of total gross debt of € 28 million.
Furthermore, it should be noted that the bonds issued on August 1, 2013, worth € 283.1 million, are due to expire on August 1, 2018. They are also covered by the refinancing operation of approx. € 1.1 billion of corporate indebtedness announced in October 2017.
 
Regarding the Statutory results, the corresponding financial statements can be found in the annex.
 
As of December 2017, all the financial covenants envisaged in the financing agreements are fully respected. 
 
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NEW ORDERS AND BACKLOG
 
For the year 2017 the total backlog amounted to €34.4 billion, of which €27.3 billion related to construction and €7.1 billion to concessions.
 
Total new orders underlying performance, comprising variation orders, amounted to €6.7 billion.
The main orders acquired by Salini Impregilo include:
  • Naples Bari High-speed Railway Line Project: €397 million (€238 million Salini stake) – The contract was won by a consortium comprising Salini Impregilo (60% ownership) for the design and construction of the Naples – Cancello segment of the railway line.
  • Meydan One Mall: $435 million – Contract with Meydan Group LLC to build the Mall as part of a massive urban development project located between Meydan and Al Khail Road (UAE). It is set to become Dubai’s number one attraction when it opens in 2020.
  • Al Faisaliah District Redevelopment Project: €172 million – Consists of the refurbishment of the renowned Al Faisaliah Mall and the demolishing of the adjacent Seyahiah buildings to make way for the construction of a mall extension.
  • ENI’s New Milan Headquarters: €171 million – Salini Impregilo has won a contract to build the new corporate headquarters of ENI, Italy’s energy giant, in Milan.  The complex will consist of three interconnected buildings on 65,000 square metres of gross leasable land. The project, to be completed in 30 months, will apply the necessary standards to meet Gold Leadership in Energy and Environmental Design (LEED).
  • Palermo – Catania railway line: €186 million – Salini Impregilo has won with a consortium a €186-million contract to design and execute the expansion of the 38-kilometre Bicocca and Catenanuova section of a railway line that runs between Palermo and Catania in Sicily, Italy.
  • Transit way section in Abu Dhabi: $200 million – Salini Impregilo has won a contract to design and build a five-kilometre section of a transit way that will cross two islands to connect the Capital District with the Central Business District, that the capital of the United Arab Emirates is building for its 2030 development plan to foster economic growth.
  • Housing and Urban Planning in Riyadh: $1.3 billion – The project, with the Saudi Arabia National Guard, includes housing and urban planning on a large scale with the construction of 6,000 villas in an area of 7 million square metres to the east of Riyadh and more than 160 kilometres of main roads and secondary routes and related services, as well as a sewage treatment plant and several water tanks above and below ground. The contract is expected to be completed in five years.

Particularly, Lane had a significant business activity, with a backlog equal to €3.0 billion and €2.6 billion in new orders year-to-date including:
  • Al Maktoum International Airport Expansion Project: $125 million – The contract includes new terminal facilities, concourses, runways, roads and tunnels at the Al Maktoum Airport in Dubai, UAE.
  • Interstate 70 Project: $118 million – In Washington County in the U.S. state of Pennsylvania, Lane won a contract to rebuild a four-lane stretch along the eastern section of the I-70 and widening along the western section.
  • Florida Turnpike Project: $177 million – In Orange County, Florida, Lane has won a project that would entail widening a seven-mile segment of the Florida Turnpike from four to eight travel lanes, three ramps, pavement milling and resurfacing and roadside improvements.
  • I-395 Express Lane Project: $336 million – A design-build contract for the eight-mile extension of the 95 Express Lanes in the U.S. state of Virginia from Edsall Road in Fairfax County to Eads Street in Arlington County and it will extend the 95 Express Lanes to the Washington, D.C. Line.
  • Three Rivers Protection & Overflow Reduction Tunnel: $188 million – A design-bid-build contract in Fort Wayne, Indiana, USA. It is a combined sewer overflow (CSO) tunnel that includes a deep rock tunnel, drop shafts and consolidation sewers to collect and convey CSO from eight locations along the St. Mary and Maumee Rivers. 
  • Northeast Boundary Tunnel (NEBT): $580 million – The contract entails the construction of a large, deep sewer tunnel that will increase the capacity of the District’s sewer system, significantly mitigating the frequency, magnitude and duration of sewer flooding and improving the water quality of the Anacostia River in the vicinity of Washington D.C. 
  • Unionport Bridge in the Bronx County, NY: $232 million ($104 million Lane stake) – The contract, the first to be won by Lane in the New York City area, comprises the replacement of the moveable “bascule” bridge that allows the Bruckner Expressway to cross Westchester Creek. Work is expected to begin shortly and be completed by mid-2021. 
  • State Road 408 in Orange County, FL: $76 million – The project entails adding a lane to a 3.24-mile (5.21 kilometres) stretch of the road in each direction so that each direction will have three rather than two lanes. Construction is scheduled to begin shortly and take about 24 months to complete.
  • Suncoast Parkway 2, FL: $ 135 million – Lane will build the second of two sections that will comprise Suncoast Parkway 2. The section will run from South of SR 700 (US 98) to SR 44 in Hernando and Citrus Counties. This project will involve the construction of 15 bridges, milling and resurfacing, base work, drainage improvements, curb and gutter, traffic signals, lighting and signing, guardrail, retaining walls, sidewalk, and a multi-use trail.
  • I-64/I-264 Interchange in Virginia Beach: $105 million – The contract involves improving an interchange in Virginia Beach as part of the second phase of the I-64/I-264 Interchange Improvements project. Work is to begin by the spring of 2018 and be completed by the fall of 2021.
  • I-66 Through-Lane in Ballston, VA: $86 million – The project involves the addition of a through-lane along part of eastbound I-66 in the Ballston area. Construction is to begin by mid-2018 and take about 30 months
  • US - Plants & Pavings: $547 million.

In line with the diversification strategy, Salini Impregilo, through its subsidiary Fisia Italimpianti, has won two contracts in 2017:
  • Desalination Plant in Shoaiba: $255 million (50% Fisia stake) – Fisia Italimpianti, together with an industrial partner, is set to design and build a water desalination plant in the Shoaiba area of Saudi Arabia for ACWA Power.
  • Desalination Plant in Shoaiba: $100 million (51% Fisia stake) – The project involves the bulding of a water desalination pant for ACWA Power which will supply potable water to the city of Salalah in southwestern Oman.
 
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OUTLOOK 2018  
 
  • Book to bill > 1.1x
  • Expected Revenues: € 6.8 - 7 billion 
  • EBIT Margin ≥ 5%
  • Gross Debt Reduction in the range of € 50 – 100 milion
The 2018 targets, compliant with IFRS 15, are based on the following assumptions: i) EUR / USD exchange rate equal to 1.25; ii) transformation of new orders into revenues based on the historical standards of the industry; iii) all other underlying assumptions remain unchanged compared to the 2016-2019 Business Plan.
 
The objectives defined may be influenced by unforeseeable exogenous factors that do not fall within the domain of management.
 
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MAIN 2016 RESULTS OF PARENT SALINI IMPREGILO S.p.A.
 
Revenues of the parent company Salini Impregilo S.p.A. they amount to € 2,886.9 million (€ 3,076.7 million in 2016). The operating result (EBIT) is negative for € 28.8 million (positive € 244.8 million in 2016). The result of the financial management of Salini Impregilo S.p.A. it is negative for € 202.1 million (negative for € 60.8 million in 2016). The net result is negative for € 91.2 million (positive for € 64.6 million in 2016).
 
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PROPOSAL FOR PROFIT ALLOCATION FOR THE PERIOD  
 
The Board of Directors decided to submit the following proposal to the Annual Shareholders’ Meeting of Salini Impregilo S.p.A., which will be called for April 30, 2018:
 
  • to cover the loss for the year of € 91,188,206.95 through the full use of the "Retained earnings" reserve for € 60,074,558.27 and the partial merger reserve for € 31,113,648.68;
  • to distribute to ordinary and savings shareholders on the merger reserve an amount equal to € 0.053 gross of the legal withholding tax for each existing share and entitled to the dividend, thus excluding the calculation of 3,104,377 treasury shares today held by the company, for a gross total dividend of € 26,006,241.66;
  • to set the date of the dividend payment on May 21, 2018 and the payment date on May 23, 2018 (record date May 22, 2018).
 
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IFRS 15
 
Starting from January 1, 2018, the new IFRS principles have come into force: IFRS 9 Financial Instruments and IFRS 15 Revenues from contracts with customers for which Salini Impregilo has started a specific adoption project.
 
As part of this project, still underway, the Group has preliminarily estimated the effects of the first application on the consolidated and parent company financial statements. It is emphasized that the estimates of the effects that will be recorded on the equity of Salini Impregilo at January 1, 2017 and December 31, 2017 are based on the assessments made so far and that the actual effects of the adoption of the aforementioned principles as of 1 January 2017 may vary.
 
It is emphasized that the impacts deriving from the adoption of the new accounting standards relate to changes in the accounting of revenues from customers made by IFRS 15 and are mainly attributable to the following cases:
a) Determination of the contractual amount. IFRS 15 requires that the recognition of revenue is attributable to 'enforceable rights' and that it is highly probable that the revenues so determined will not be reversed in the future. The main variable considerations that have implied the impacts are the fees deriving from reserves ('claims') and the fees deriving from optional works (so-called 'optional works' and 'provisional sum')
b) Contractual costs. The new regulations entailed a different accounting treatment of some categories of contract costs, providing for the capitalization of the costs for obtaining the contract deemed 'incremental' and the costs incurred for the fulfillment of the contract which allow the entity to dispose of new or greater resources to be used to meet future obligations towards customers (so-called 'pre-operational costs').
 
For a complete description of the changes to the accounting standards and significant impacts, please refer to what will be published in the annual financial report as at 31 December 2017.
 
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SIGNIFICANT EVENTS AND OPERATIONS THAT OCCURRED IN 2017
 
MARCH
 
Lane (Salini Impregilo) wins $336 million contract in Virginia
On March 1, 2017, the Lane Construction Corporation (Salini Impregilo Group) has won a $336-million design-build contract for the extension of the 395 Express Lanes in the U.S. state of Virginia. The 395 Extension project will add to Lane’s portfolio of Express Lane work in Virginia. 
 
Salini Impregilo-Astaldi consortium wins €397 million lot in Naples-Bari high-speed railway project 
On March 2, 2017, A consortium comprising Salini Impregilo and Astaldi has won a contract worth €397 million for the design and construction of the Naples - Cancello section of the Naples – Bari high- speed railway line in Italy.
The works will be carried out by Salini Impregilo (leader 60%) in a consortium with Astaldi (40%).
Commissioned by ITALFERR S.p.A., the first section of the Naples - Bari line, is a key part of the upgrading of the railway lines throughout the country.
 
Cociv Consortium
On March 6, 2017, The Prefetto di Roma has decreed the temporary extraordinary administration of Cociv Consortium pursuant to art. 32, paragraph 1, letter b of Decree 24/06/14 n. 90, converted with amendments by Law no. 114 of 11/08/14, by appointing an extraordinary Administrator for a period of six months, unless further extended.
 
Salini Impregilo wins $435 million Dubai urban development contract 
On March 16, 2017, Salini Impregilo has signed a $435 million contract with Meydan Group LLC to build the Meydan One Mall in Dubai, UAE.
According to the agreement, Salini Impregilo will prepare the area for development by overseeing the excavations and building of the sub- and super-structures for the complex, including the foundations for a ski slope and the concrete support for the steel structure above the Mall.
The Mall is the first of several phases to this urban development project, which will include a water canal, a tourist port, walking and biking tracks and one of the tallest residential buildings in the world. Added conveniences will feature two metro lines passing underneath it, one of which – the Green Line – will connect to Dubai Airport.
 
APRIL
 
Salini Impregilo and Lane’s S.A. Healy win $188 million contract in Indiana 
On April 6, 2017, Salini Impregilo and Healy Company, which is controlled by Lane Construction Corporation (Salini Impregilo Group), through its wholly owned subsidiary S.A. Healy Company, have won a design-bid-build contract in the U.S. state of Indiana, valued at $188 million.
The project includes a deep rock tunnel, drop shafts and consolidation sewers to collect and convey Combined Sewage Overflow (CSO) from eight locations along the St. Mary and Maumee Rivers. Once completed, the CSO tunnel system will reduce 90% of combined sewage overflows into the rivers, which occur during large rain storms.
 
Salini Impregilo wins $300 million contract from Al Khozama in Saudi Arabia 
On April 13, 2017, Salini Impregilo has won a $300-million contract from Al Khozama Management Company, the leading developer and manager of luxury, hospitality, retail and commercial properties in the Kingdom of Saudi Arabia, to renovate the Al Faisaliah District in the capital, Riyadh. The contract – known as the Al Faisaliah District Redevelopment Project – will start with a $53-million refurbishment of the renowned Al Faisaliah Mall, home to some of the world’s leading designer brands. It will see the demolition of the adjacent Seyahiah and Al Khozama Centre buildings to make way for an extension of the Mall and the construction of a five-star hotel and accompanying underground parking.
 
Salini Impregilo (Fisia Italimpianti) $255 million joint-venture in Saudi Arabia
On April 18, 2017, Salini Impregilo announces that its Fisia Italimpianti unit and a Spanish joint-venture partner are set to design and build a water desalination plant in Saudi Arabia in a $255 million agreement with ACWA Power. Located in the Shuaiba area on the western coast of Saudi Arabia, the plant will use reverse osmosis technology to deliver up to 250,000 cubic metres of water per day, supplying potable water to more than one million residents in the cities of Mecca, Jeddah and Taif. In a joint-venture in which it holds 50%, Fisia Italimpianti has signed a Limited Notice To Proceed (LNTP) with ACWA Power to start the preparatory work.
 
JUNE
 
Standard & Poor’s affirms Salini Impregilo’s BB+ rating; outlook stable
On June 26, 2017, Standard & Poor’s Ratings Services has affirmed its “BB+” long-term corporate credit rating for Salini Impregilo (MTA: SAL), Italy’s largest infrastructure group. The outlook remains stable.
Standard & Poor’s said the Group’s solid order backlog provides very high visibility on future revenues, with a large part to come from the United States where it has strengthened its market position through its U.S. subsidiary, Lane Construction. It also said it expected it to post resilient results over the next few years on the back of solid demand for infrastructure work.
 
JULY
 
Salini Impregilo and Lane win $580M tunnel contract in Washington, D.C. 
On July 7, 2017, Salini Impregilo and The Lane Construction Corporation have won a $580-million contract to build the Northeast Boundary Tunnel (NEBT) project in Washington, D.C.  The NEBT will be a large, deep sewer tunnel that will increase the capacity of the District’s sewer system, significantly mitigating the frequency, magnitude and duration of sewer flooding and improving the water quality of the Anacostia River. Once it is connected to the other Clean Rivers Project tunnels, the NEBT will help reduce combined sewer overflows to the Anacostia River by 98 percent and the chance of flooding in the areas it serves from about 50 percent to seven percent in any given year. 
 
Lane wins $232m contract in New York 
On July 12, 2017, Lane Construction Corporation has won a $232 million contract to replace the Unionport Bridge in Bronx County, New York. The contract, the first to be won by Lane in the New York City area, comprises the replacement of the moveable “bascule” bridge that allows the Bruckner Expressway to cross Westchester Creek. The construction of a new bridge, will be done in 10 stages in 48 months. Lane will do the project with joint-venture partner Schiavone Construction Company.
 
Salini Impregilo wins €171m contract to build ENI’s new headquarters in Milan
On July 28, 2017, Salini Impregilo has won a €171 million contract to build the new corporate headquarters of ENI, Italy’s energy giant, in Milan. Located in the municipality of San Donato Milanese in the city’s southeast, the headquarters will be based on a design by Morphosis Architects, the U.S. architecture firm led by Pritzker Prize winner Thom Mayne.
The complex will consist of three interconnected buildings for 4,600 employees on 65,000 square metres of gross leasable land or a net 57,000 square metres. The complex will include a cafeteria, a conference centre and a public exhibition space. The project is to be completed in 30 months. It will apply standards of energy efficiency and environmental sustainability to meet Gold Leadership in Energy and Environmental Design (LEED), one of the most popular green building certification programs in the world.
 
OCTOBER
 
Salini Impregilo announces re-financing of approximately €1 billion of corporate debt
On October 17, 2017, the Board of Directors of Salini Impregilo reviewed a re-financing operation of existing corporate long-term debt for an overall amount of approximately €1 billion to strengthen further the Group's financial structure and significantly reduce the cost of debt, as well as extend the average duration, taking 80% of maturities beyond 2020. The Board of Directors authorized the Chairman and the CEO to finalize the operation, which includes:
  • Issuing unsecured, euro-denominated senior bonds with a fixed rate and a 7-year maturity for an approximate total amount of €400 million. Conditions, as usual, will be set near the issuing date.
  • Two senior unsecured term loan financing lines totaling €380 million with a 2022 maturity date, and a revolving credit facility of €200 million at the same maturity.
The Group successfully places notes for € 500 million 1,75% due on october 2024
On October 19, 2017, Salini Impregilo announces the successful closing of the launch of senior unsecured notes (the “Notes”) issue having the following characteristics:
  • Nominal value: €500 million
  • Fixed-rate coupon: 1,75%
  • Redemption: 2024 (7 years)
The issue gathered orders close to 7 times the amount planned originally for the issue, meeting the interest of a significant pool of qualified investors who confirmed their confidence in the Group’s growth strategy.
 
Fitch Ratings upgrades Salini Impregilo to 'BB+', Outlook Stable
On October 24, 2017, Salini Impregilo announces that Fitch Ratings has raised its Long-Term Issuer Default Rating (IDR) to “BB+” from “BB” with a Stable Outlook. Fitch also upgraded the senior unsecured rating to “BB+” from “BB”.
Key drivers for the rating have been:
 
  • Solid Business Profile
  • Healthy Backlog
  • Effective Risk Management
  • Improving Financial Profile
  • Business Plan on Track
NOVEMBER
 
Salini Impregilo with Lane wins a $134.6M contract to build a new highway section in Florida 
On November 16, 2017, The Lane Construction Corporation has won a $134.6 million contract to build a section of Suncoast Parkway 2, a new highway leading north of Tampa, Florida.
Dagong affirms “BB+” rating for Salini Impregilo; outlook positive 
On November 27, 2017, Salini Impregilo announces that Dagong Global has affirmed its Long-Term Credit Rating at “BB+” with a positive outlook. Dagong stated: “The rating reflects Salini Impregilo’s strong business profile and the positive development within the last 12 months driven in particular by the acquisition (1Q16) and advanced integration of Lane Industries Inc. (Lane) resulting in increased business opportunities in the robust US infrastructure market, better diversification of the project portfolio and pipeline, a reinforced overall competitive position and finally higher revenues. In addition, it reflects positive trends in its financial profile, with good profitability, sound liquidity, an extended debt maturity profile and reduced cost of debt.”
 
Salini Impregilo wins €186m contract for section of Palermo-Catania railway line
On November 30, 2017 Salini Impregilo has won with a consortium a €186-million contract to design and execute the expansion of the 38-kilometre Bicocca and Catenanuova section of a railway line that runs between Palermo and Catania in Sicily, Italy.
 
DECEMBER
 
Salini Impregilo Group wins $490m in contracts in United States, Oman and United Arab Emirates
On December 11, 2017 Salini Impregilo has won four contracts worth a combined $490 million in Oman, Abu Dhabi and the United States, highlighting the infrastructure group’s breadth and scale as well as its leadership in the water and transportation sectors.
 
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SIGNIFICANT EVENTS AND OPERATIONS THAT OCCURRED AFTER THE CLOSE OF 2017 
 
Salini Impregilo announced the award $1.3b contract in Saudi Arabia 
On February 21, 2018, Salini Impregilo has announced the award of a contract in Saudi Arabia: a project worth about $1.3 billion in Riyadh with the Saudi Arabia National Guard.
The project includes housing and urban planning on a large scale with the construction of 6,000 villas in an area of 7 million square metres to the east of Riyadh and more than 160 kilometres of main roads and secondary routes and related services, as well as a sewage treatment plant and several water tanks above and below ground. The contract is expected to be completed in five years.
The Middle East, which includes Saudi Arabia, Oman and the United Arab Emirates, is rich in opportunity for Salini Impregilo, one of the foreign infrastructure groups with the biggest portfolio of contracts by value for large, complex projects in the region. At the global level, the Group has been a leader for the past five years in the water sector and one of the leaders in the transport sector.
This latest contract strengthens Salini Impregilo's role in the building and transport sectors of Saudi Arabia, which is seen investing $88 billion in infrastructure in the next five years.
 
Fisia Italimpianti (Salini Impregilo Group) wins €57m Turkey contract
On March 9, 2018, Fisia Italimpianti, has won a €57-million contract to build a plant that will treat waste water in Istanbul, Turkey.
Fisia Italimpianti and its joint-venture partners Alkatas and Alke will take 36 months to build the plant in the city’s Yenikapi neighbourhood for Istanbul Su ve Kanalizasyon Idaresi (ISKI), a municipal water utility. Once completed, the plant will treat 450,000 cubic metres of waste water per day, a volume equal to the sewage produced by two million residents.
 
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CALL OF THE ANNUAL SHAREHOLDERS 'MEETING
 
The Board of Directors decided to call, on April 30, 2018, the Annual Shareholders' Meeting for the approval of the 2017 financial statements of Salini Impregilo SpA. and of the proposal for the distribution of the dividend and for the appointment of the Board of Directors (given the upcoming end of the term) and for the determination of the related remuneration, for resolutions concerning the Remuneration Report as well as for resolutions regarding the adjustment of the remuneration of the Board of Statutory Auditors and of the Auditing Company.
The notice convening the Shareholders' Meeting, the explanatory reports on the items on the agenda, together with the annual report on corporate governance and the remuneration report, will be made available to the public within the terms and with the procedures established by law.
 
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Massimo Ferrari, in his capacity as Director in charge of the preparation of the company’s accounting documents, declares, pursuant to Section 2 of Article 154 bis of the Italian Uniform Financial Code, that the information contained in this press release corresponds to the accounting documents, books and entries.
 
Disclaimer
This press release contains forward-looking statements. These statements are based on current expectations and projections of the Group regarding future events and, by their very nature, are exposed to inherent risks and uncertainties. These statements relate to events and depend on circumstances that may or may not occur or exist in the future. Accordingly, readers should not to place undue reliance on them. Actual results may differ materially from those stated due to multiple factors, including: the volatility and deterioration of capital and financial markets, changes in commodity prices, changes in macroeconomic conditions and economic growth and other changes in business conditions, changes in atmospheric conditions, floods, earthquakes or other natural disasters, changes in the regulatory and institutional framework (both in Italy and abroad), production difficulties, including constraints on the use of plants and supplies and many other risks and uncertainties, most of which are outside the Group's control.
 
 
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[1] Adjustment of the IFRS results to account for the inclusion of the results of Lane Group non-subsidiary JVs, for the write-off of assets in Venezuela, and for the restatement at a constant exchange rate in line with 2016. The revenues, EBITDA, and EBIT in currencies other than the euro have been converted using the average exchange rate for 2016 (1.11). Positions in currencies other than the euro included in the net financial position have been converted by applying the spot rates on December 31, 2016 (1.05).
[2] Adjustment of the IFRS results to account for the inclusion of the results of Lane Group non-subsidiary JVs and for the write-off of assets in Venezuela.
 
 
 

FY17 Financial Results

Presentation

FY17 Financial Results

IN THE PRESS

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