Performance of the Group and the Parent Company in 2013

The competitive scenario of the Salini-Impregilo Group is represented by the global market for investment in the construction sector with specific reference to that of large complex infrastructures.

World economic and commercial activity has shown signs of growth in the second half of 2013 and in particular the International Monetary Fund has noted that final demand in advanced countries has grown moderately but in line with forecasts, while in emerging markets exports have been the main driver, with domestic demand remaining fairly weak and financial conditions still difficult.

Forecasts of economic progress in the Euro zone refer to a recovery from the recent period of recession. The International Monetary Fund predicts growth in the European Union of 1% in 2014 and 1.4% in 2015, although with rates differing from country to country: the German economy is expected to improve by 1.6% in 2014 and 1.4% in 2015, while for Italy the projections remain cautious, with increases of 0.6% and 1.1% in 2014 and 2015 respectively. The emerging economies, again according to the IMF, should grow by 5.1% and 5.4% in the period 2014-15.

According to a study conducted by McKinsey for the OECD, from 2014 to 2030 there will be 57,300 billion dollars of investment in infrastructure, of which approximately 29% will be investment in roads and highways, 21% in energy infrastructure, 20% in water projects, 17% in telecommunications, and 13% in metros /railways, ports and airports.

In the more immediate future (2014 – 2017), an increase of 9% per annum is predicted in global demand for infrastructure, in the segments of energy, transport and other civil infrastructure projects. In this context, an important business opportunity arises out of the need for the most economically developed countries to replace or expand existing infrastructures which are no longer adequate to meet growing energy needs, and the need for mass transport, energy and water associated with the economic development and urbanization of many emerging and developing countries.

The "Great Recession" of 2008-2011, while penalizing some segments within the construction sector, such as residential and commercial building, has not slowed the demand for major infrastructure projects which, on the contrary, continue to be a strategic priority for the growth of the economies of most industrialised and emerging countries, affecting in particular the Middle East, Central Asia, Latin America and India.

In this context, the merger between Salini and Impregilo has strengthened the Group's competitive position globally, consolidating its presence in the geographical areas already covered and providing the operational function with the skills needed to break into new markets and sustain the continued growth of the business.