Salcef S p A : Additional financial information at 31 March 2024

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(Translation from the Italian original which remains the definitive version)

ADDITIONAL FINANCIAL INFORMATION

AT 31 MARCH 2024

Registered office: via Salaria 1027 - 00138 Rome - Italy

Salcef Group holding company

Fully paid-up share capital €141,544,532.20

Company registration number: 08061650589 | REA no.: RM - 640930

Tax code 08061650589 | VAT no. 01951301009

www.salcef.com

Additional financial information at 31 March 2024

1

TABLE OF

CONTENTS

01

INTRODUCTION

Company officers	4
Group structure	5

02

DIRECTORS' REPORT

General Information	7
Financial figures and key	8
performance indicators
Human Resources	13
Key events of the period	14
Events after the reporting date	16
Outlook	16
Key risks and uncertainties	18
Related party transactions	20

03

INTERIM CONSOLIDATED FINANCIAL STATEMENTS AT 31 MARCH 2024

Statement of financial position	22
Income Statement	24
Statement of comprehensive	25
income
Statement of changes in equity	26

04

EXPLANATORY NOTES AT 31 MARCH 2024

General Information	28
Reporting standards	29
Basis of preparation	30
Accounting policies	31
Significant non-recurring	53
events and transactions
Statement of the manager in	54
charge of financial reporting

Additional financial information at 31 March 2024

2

INTRODUCTION

Additional financial information at 31 March 2024

3

Company officers

Board of Directors

appointed by the shareholders' meeting on 29 April 2022. In office up until the date of the shareholders' meeting called to approve the financial statements as at and for the year ended 31 December 2024.

Remuneration and appointment committee

In office up until the date of the shareholders' meeting called to approve the financial statements as at and for the year ended 31 December 2024

Chairperson	Gilberto Salciccia
CEO	Valeriano Salciccia
Director	Angelo Di Paolo
Director (independent)	Veronica Vecchi
Director (independent)	Bruno Pavesi
Director (independent)	Valeria Conti
Director (independent)	Emilia Piselli
Chairperson	Emilia Piselli
Member	Veronica Vecchi
Member	Bruno Pavesi

Audit and risk committee

In office up until the date of the shareholders' meeting called to approve the financial statements as at and for the year ended 31 December 2024

Related parties committee

In office up until the date of the shareholders' meeting called to approve the financial statements as at and for the year ended 31 December 2024

Sustainability committee

In office up until the date of the shareholders' meeting called to approve the financial statements as at and for the year ended 31 December 2024

Board of statutory auditors

appointed by the shareholders' meeting on 29 April 2022. In office up until the date of the shareholders' meeting called to approve the financial statements as at and for the year ended 31 December 2024.

Manager in charge of financial reporting

Independent auditors

appointed for the 2020/2028 nine-year period by the shareholders at their ordinary meeting of 5 October 2020.

Chairperson	Valeria Conti
Member	Veronica Vecchi
Member	Bruno Pavesi
Chairperson	Bruno Pavesi
Member	Emilia Piselli
Member	Valeria Conti
Chairperson	Veronica Vecchi
Member	Emilia Piselli
Member	Valeria Conti
Chairperson	Pier Luigi Pace
Standing auditor	Giovanni Bacicalupi
Standing auditor	Maria Assunta Coluccia
Alternate auditor	Carla Maria Melpignano
Alternate auditor	Maria Federica Izzo
Fabio De Masi
KPMG S.p.A.

Additional financial information at 31 March 2024

4

Group structure

Additional financial information at 31 March 2024

5

DIRECTORS' REPORT

AT 31 MARCH 2024

Additional financial information at 31 March 2024

6

General Information

Salcef Group S.p.A. (the 'Parent' or 'Company') is a company limited by shares with registered office in Rome (Italy) in Via Salaria 1027. It is the parent of a group of specialist companies active in the design, construction and maintenance of systems for railway infrastructure and tram and metro networks in Italy and abroad.

Salcef Group S.p.A.'s ordinary shares are traded on the Euronext STAR segment of the Euronext Milan market organised and managed by Borsa Italiana S.p.A.

This additional financial information at 31 March 2024 includes the interim financial statements of Salcef Group S.p.A. and its subsidiaries (together, the "Salcef Group" or the "Group"). The Parent's Board of Directors approved this information and authorised its publication during its meeting of 15 May 2024.

At the date of preparation of this additional financial information, Finhold S.r.l. (the "Ultimate Parent") holds the absolute majority of Salcef Group S.p.A. shares but does not manage or coordinate it.

On 6 October 2020, in accordance with articles 70.8 and 71.1-bis of the Issuers' Regulation, Salcef Group S.p.A.'s Board of Directors resolved to opt out of publishing the disclosures required by Annex 3B to the Issuers' Regulation for significant mergers, demergers, share capital increases through contribution in kind, acquisitions and sales.

Additional financial information at 31 March 2024

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Financial figures and key performance indicators

Salcef Group management assesses the Group's performance using certain performance measures not provided for by the IFRS. Although they are derived from the consolidated financial statements, they cannot be considered as substitutes of the IFRS indicators. Group management constructs the following alternative performance measures using the historical figures and they only relate to the reporting period covered by this report. They are not representative of the Group's future performance.

Reclassified income statement

(€'000)

	03.2024	03.2023	Var
Revenue	213,186	160,369	52,817
Operating costs	(177,060)	(130,175)	(46,885)
Other operating costs	(3,798)	(3,651)	(147)
Internal work capitalised	8,565	6,348	2,217
EBITDA	40,892	32,891	8,001
Amortisation, depreciation and impairment losses	(13,988)	(10,512)	(3,476)
EBIT	26,904	22,379	4,525
Adjusted financial income (expense)*	(3,388)	(2,851)	(537)
Adjusted pre-tax profit	23,516	19,528	3,988
Adjusted income taxes**	(7,677)	(5,707)	(1,970)
Adjusted profit for the period	15,840	13,821	2,019
*Changes in fair value of financial investments	1,414	1,669	(255)
** Deferred taxes on changes in fair value of financial investments and	(1,049)	(1,188)	139
reversal of deferred tax assets on revaluation
Profit for the period	16,204	14,302	1,902

Key performance indicators

(€'000)

	03.2024	03.2023
EBITDA Margin	19.18%	20.51%
EBIT Margin	12.62%	13.95%

EBITDA: Operating profit before depreciation, amortisation and impairment losses

EBIT: Pre-tax profit before net financial income (expense)

Key financial indicators

(€'000)

	31,032,024	31.12.2023
NFP	(2,164)	(7,209)
Adjusted equity	458,283		441,112

Additional financial information at 31 March 2024

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Where applicable, the alternative performance measures are presented in accordance with the ESMA Guidelines (Reference ESMA/2015/1415) as acknowledged by CONSOB (the Italian commission for listed companies and the stock exchange) communication no. 0092543 of 3 December 2015. In accordance with these documents, the criteria used to construct these measures are presented below.

• EBITDA is calculated by adjusting the profit or loss for the period to exclude taxation, net financial expense and amortisation, depreciation and impairment losses;
• EBIT is calculated by adjusting the profit or loss for the period to exclude taxation and net financial expense;
• adjusted pre-tax profit or loss is calculated by adjusting the profit or loss for the period to exclude taxation and other amounts, such as fair value gains or losses on short-term investments, related to non-recurring events, events unrelated to the core business and/or non-recurring transactions, as identified by the Group;
• adjusted profit or loss is calculated by adjusting the profit or loss for the period to exclude the effects related to non-recurring events, events unrelated to the core business and/or non-recurring transactions, as identified by the Group, such as fair value gains or losses on short-term investments as well as the tax impact arising from deferred taxes on the above-mentioned fair value gains or losses and the reversal of deferred tax assets recognised on tax revaluations, as detailed further on;
• the EBITDA margin is calculated as the ratio of EBITDA (as identified above) to total revenue;
• the EBIT margin is calculated as the ratio of EBIT (as identified above) to total revenue;
• the net financial position is calculated by deducting cash and cash equivalents and current financial assets from current and non-current financial liabilities. The net financial position is adjusted to exclude the effect of any events unrelated to the core business and/or related to non-recurring transactions with an impact on the net financial position;
• adjusted equity is calculated by deducting from equity the effects of the initial recognition in 2020 of deferred tax assets recognised on tax revaluations, as detailed further on, and the effects of the reversal of such deferred tax assets from 2021 onwards.

These indicators are shown at consolidated level in order to present the Group's financial performance, net of non-recurring events, events unrelated to the core business and non-recurring transactions, as identified by the Group. They reflect the main financial and operating figures net of non-recurring income and expense not directly related to core business activities and operations, thereby enabling an analysis of the Group's performance more consistent with that of previous periods.

In the first three months of the year, the Group recognised revenue of €213,186 thousand, up €52,817 thousand (+32.9%%) on the figure of €160,369 thousand of the same period of 2023. This increase is mainly due to the Group's continuing remarkable organic growth as well as to the changes in the consolidation scope following the acquisition of Colmar Technik S.p.A. (in August 2023) which, therefore, did not contribute to the income statement for the comparative period.

Additional financial information at 31 March 2024

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