FCF SmallCap / MidCap Research Series European Infrastructure & Market Study

Last Update: October 2020 FCF FOX CORPORATE FINANCE FCF Overview

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European Investment Family Office Advisory European Investment Guarantee & Debt Syndicated Loan, Capital Increase and Round Extension Transaction Support Capital Increase Factoring Facility Investment in Acquisition Financing Bank Debt Facility & Acquisition Bank Debt Facility Facilities Factoring and Inventory Round Extension Financing Facilities Leasing

[confidential] [confidential] Advisor to AkrosA Hydrogenious LOHC Infrastructure Hydrogenious LOHC Doppstadt GSE Group Immunic AG Homegoods Company ROBART GmbH Vasopharm GmbH Synapticon GmbH KMP Holding GmbH Private Equity Technologies GmbH Company Technologies GmbH Familienholding GmbH Acquisition by Finexx GmbH & Co. KG ~ EUR 25m EUR 80m [confidential] [confidential] ~ EUR 20m EUR 17m EUR 80m > EUR 10m [confidential] > EUR 10m > EUR 15m October 2020 June 2020 February 2020 December 2019 November 2019 July 2019 July 2019 June 2019 June / January 2019 March 2019 December 2018 December 2018

Syndicated Loan European Investment European Investment European Investment European Investment Syndicated Loan Bilateral European Investment Bilateral Loan Facility Capital Increase Capital Increase Promissory Note Facility Bank Debt Facility Bank Debt Facility Bank Debt Facility Bank Debt Facility Facility Loan Facility Bank Debt Facility

[confidential] [confidential]

DSD – Duales System Business Service Leading Virtual Ziegler Holzindustrie Schnellecke Group KMP Holding GmbH censhare AG AMW GmbH Voxeljet AG numares AG MagForce AG Holding Biofrontera AG Provider Reality Company GmbH & Co. KG AG & Co. KG GmbH & Co. KG [confidential] > EUR 10m < EUR 10m EUR 25m EUR 25m EUR 25m EUR 11m EUR 35m EUR 70m EUR 55m EUR 30m EUR 20m April 2018 April 2018 April 2018 December 2017 December 2017 November 2017 November 2017 July 2017 July 2017 June 2017 June 2017 May 2017

3 FCF Facts & Figures

More than Close to More than More than # 1 15 100 100 4 bn financing advisor in investment banking years of aggregated, completed total volume of advised & Germany, purely focusing professionals investment banking / transactions closed transactions since on corporate financing financing experience 2005 transactions

More than More than Network 2000 25 120 Leading access to more than contacts to family offices international conferences articles and research advisor for financing 4000 international and ultra-high-net-worth organized papers published transactions with EIB in financial institutions individuals worldwide the DACH region

4 FCF Fox Corporate Finance SmallCap / MidCap Team

Kai Frömert is a Managing Director in FCF’s Corporate Finance Team. He joined FCF with a focus on debt capital markets. Kai Frömert Managing Director Kai studied business economics in Frankfurt (D) and San Diego (USA) and holds a Diplom-Betriebswirt (FH) degree from HfB-Hochschule für Bankwirtschaft / Frankfurt School of Finance & Management. Prior to joining FCF, Kai gained more than 10 years of debt capital markets P: +49 (89) 206 0409-135 experience while working for the Markets & Investment Banking division of UniCredit and HypoVereinsbank as well as a further two years within M: +49 (173) 580 0407 the investment banking arm of Bank Vontobel. During the last 10 years, Kai focused on capital markets based corporate finance and project [email protected] finance transactions, especially in the infrastructure and energy sectors.

M arcel Lange joined FCF in April 2016 and is responsible for the Small Cap / Growth division. Marcel Lange Director Prior to joining FCF, he worked as an Associate Leveraged Finance at HSH Nordbank (today Hamburg Commercial Bank) since 2013. Marcel Lange completed his Bachelor's degree in Business Administration at the HSBA Hamburg School of Business Administration. During his studies P: +49 (89) 206 0409-126 he completed a trainee program in HSH Nordbank's Corporate Clients division and successfully completed his apprenticeship as a banker at the M: +49 (172) 839 5740 Hamburg Chamber of Commerce. [email protected]

Tristan Blümli joined FCF in September 2016, supporting the team in equity and debt financing transactions. Tristan Blümli Vice President Tristan received his Master of Arts in Economics and Finance from Heriot-Watt University and his Master of Science in Finance and Management from Cranfield School of Management. During his studies, he completed a series of internships, most recently with Morgan P: +49 (89) 206 0409-140 Stanley. M: +49 (172) 839 5716 [email protected]

M arco Buonafede-Bennardo joined FCF as an analyst in January 2019 and supports the team in equity and debt advisory transactions. Marco Buonafede Analyst Marco graduated with a bachelor’s degree in business administration from the LMU in Munich. His major study focus was on accounting and finance. After his bachelor studies, he completed an internship at PwC AG in Munich in the audit service line. Marco gained also first working P: +49 (89) 206 0409-131 experience in corporate finance at ACXIT Capital Partners in Frankfurt am Main. Later, he received his master’s degree in Finance & M: +49 (174) 207 8772 Management from the University of St. Andrews in Scotland. [email protected]

Yasmin Herrmann joined FCF in January 2019, supporting the team in equity and debt financing transactions. Yasmin Herrmann Analyst Yasmin graduated from the ISM in Dortmund with a BA in Management. Thereupon, she pursued her Master‘s Degree of Finance (MSc), with a specialization in Corporate Finance, at the Frankfurt School of Finance and Management. During her studies, Yasmin gained her first working P: +49 (89) 206 0409-122 experience in Corporate Finance as a working student at BNP Paribas in Frankfurt am Main. M: +49 (173) 683 8442 [email protected]

5 EXECUTIVE SUMMARY Executive Summary FCF European Infrastructure & Construction Market Study at a Glance

Growth Indicators Margins Valuation Credit Statistics

Revenue (Y-o-Y) EBITDA Margin EV / EBITDA Net Leverage Interest Cover Ratio Rating ’18-’19 ’19-’20 2018 2019 2020 2018 2019 LTM 2018 2019 LTM 2018 2019 LTM 2018 2019 LTM 5.3% -12.4% 8.8% 8.6% 8.8% 7.0x 9.6x 10.0x 2.2x 3.4x 3.6x 24.8x 17.4x 13.3x BB+ BB+ BB

EBITDA (Y-o-Y) EBIT Margin Current Loan-to-Value ’18-’19 ’19-’20 2018 2019 2020 2018 2019 LTM 2.7% -10.9% 6.9% 6.8% 5.9% 3.4% 3.7% 4.1%

EBIT (Y-o-Y) EV / EBIT Equity Ratio Non-Current Loan-to-Value WACC ’18-’19 ’19-’20 2018 2019 LTM 2018 2019 LTM 2018 2019 LTM 2018 2019 LTM 4.2% -24.0% 8.9x 11.9x 12.2x 37.0% 33.2% 32.8% 64.3% 57.4% 80.4% 6.3% 4.9% 4.1%

Private Equity M&A Long-Term Development

Revenue EBITDA EBIT CAGR: +1.4% CAGR: +6.6% CAGR: +5.0% in EURm in EURm 15.2% 16.7% 2018 2019 YTD 2018 2019 YTD

6.8% 22.4% 5.3% -12.4% 2.7% 4.2% 31.6% 10,766 1,980 349 5,264 162 2,909 7.5% -10.9% -24.0% Total Deal Volume Total Deal Volume

2018 2019 YTD 2018 2019 YTD 37 36 17 35 21 16 Total Deal Count Total Deal Count 2018a 2019a 2020e 2021e 2022e 2018a 2019a 2020e 2021e 2022e 2018a 2019a 2020e 2021e 2022e

Source: PitchBook as of 16/10/2020, S&P Capital IQ as of 16/10/2020, FCF Equity Research 7 Note: Numbers above represent statistics only where data was available; multiples displayed as means unless noted otherwise Executive Summary FCF European Infrastructure & Construction Market Study Overview

The FCF European Infrastructure & FCF Infrastructure & Construction Market Study Recipients Construction Market Study is a standard- is a comprehensive publication of the European infrastructure & The FCF Infrastructure & Construction Market Study targets a wide construction market. The analysis includes: audience, which includes: ized report / analysis of the public ■ Market Fundamentals: Development of key P&L metrics ■ Executives ■ Equity / debt investors European infra- (revenue, EBITDA, EBIT) and profitability metrics (EBITDA-/ ■ Key personnel in corporate ■ Shareholders structure and EBIT margin) development / financing unit construction market and provides ■ Market Valuation: Development of valuation multiples (EV / and provides in-depth and complete financial insights that highlight EBITDA, EV / EBIT) valuable industry key trends within the European infrastructure and construction market and competitive ■ Credit Statistics: Development of relevant credit metrics (net intelligence leverage ratio, equity ratio, EBITDA interest cover ratio and loan- to-value ratios), market rating and implied cost of capital (WACC) Data More advanced, ■ Private Equity and Mergers & Acquisition: Development of detailed and / or All input data is provided by S&P Capital IQ and is not independently deal volume and deal count verified by FCF. Ratio and multiple calculations are driven based on customized reports the input data available. For additional information and disclaimer, are available upon please refer to the last page request Selection of Companies Availability The selection of companies is primarily based on the following criteria: The FCF Infrastructure & Construction Market Study is available on FCF’s website at “www.fcf.de“ ■ Industry classification: Infrastructure & Construction ■ Company status: Operating ■ Ownership: Public, listed To recommend colleagues or fellow investors to be added to the ■ Geography (HQ / exchange country): Europe, excl. Russia mailing list, kindly send an email with the respective contact ■ Total revenues (last FY): EUR 25m - EUR 10,000m information ■ Market capitalization: >EUR 0m More advanced, detailed and / or customized reports can be ■ Free float: >15% ordered individually (e.g. for board reporting, strategy and ■ Total revenues (FY 2020-2022): >EUR 0m competition analysis purposes)

8 Executive Summary Universe of Construction & Infrastructure Companies

The FCF European Construction & Infrastructure Company Overview Infrastructure & Market Cap. Market Cap. Market Cap. Construction Market Company HQ [in USDm] Company HQ [in USDm] Company HQ [in USDm] Study covers 74 Ferrovial, S.A. ESP 18428.6 plc UK 691.4 plc UK 104.4 publicly listed infra- UK 10218.8 Dom Development S.A. PL 626.7 plc UK 99.6 structure and con- plc UK 6975.1 plc UK 548.4 Lehto Group Oyj FIN 96.8 struction companies The plc UK 6826.7 Implenia AG CH 545.4 ByggPartner i Dalarna Holding AB SWE 93.8 Sw eco AB SWE 6459.8 McCarthy & Stone plc UK 544.3 Consti Oyj FIN 79.5 With 21 companies plc UK 5422.5 Maire Tecnimont S.p.A. IT 520.1 Traumhaus AG GER 70.4 (almost 30% of the Bellw ay p.l.c. UK 4042.5 Renew Holdings plc UK 479.5 Torpol S.A. PL 64.8 Fomento de Construcciones y Eolus Vind AB SWE 451.5 Erbud S.A. PL 64.7 total number of Contratas, S.A. ESP 3864.4 Adapteo Oyj FIN 436.4 AST Groupe FR 61.4 companies Peab AB SWE 3061.3 Burkhalter Holding AG CH 420.2 Ronson Development SE PL 61.4 analyzed), the Royal Boskalis Westminster N.V. NL 2967.7 PORR AG AUT 420.2 Muehlhan AG GER 60.6 PLC UK 2288.8 UK 414.5 shows the highest JM AB SWE 2233.4 MJ Gleeson plc UK 391 number of Arcadis NV NL 2090.9 Eltel AB SWE 388.3 UK 2016.6 Koninklijke BAM Groep nv NL 369.2 companies in the plc UK 2013.8 Poenina Holding AG CH 312.8 industry across NCC AB SWE 1952.9 Mota-Engil, SGPS, S.A. PRT 309.9 Europe AF Gruppen ASA NOR 1809.3 Hexaom S.A. FR 251.1 Compagnie d'Entreprises CFE SA BEL 1721.8 Severfield plc UK 223.3 The DACH region Budimex SA PL 1648.9 Obrascón Huarte Lain, S.A. ESP 202.9 (Germany, Austria PLC UK 1632.1 Heijmans N.V. NL 195.9 and Switzerland) Veidekke ASA NOR 1628.3 BAUER Aktiengesellschaft GER 191.9 ranks 3rd with 8 infra- Instalco AB SWE 1260.8 TREVI - Finanziaria Industriale YIT Oyj FIN 1206.3 S.p.A. IT 191.8 structure and con- Sacyr, S.A. ESP 1116.5 HELMA Eigenheimbau struction companies Neinor Homes, S.A. ESP 958.7 Aktiengesellschaft GER 188.8 Elecnor, S.A. ESP 897.5 SRV Yhtiöt Oyj FIN 182.9 Bonava AB SWE 864.5 NRC Group ASA NOR 161.3 Per Aarsleff Holding A/S DNK 848 MT Højgaard Holding A/S DNK 157.1 Kaufman & Broad S.A. FR 834.6 PLC UK 140.6 Holdings plc UK 790.7 Serneke Group AB SWE 128 Glenveagh Properties PLC IRL 764.8 Archicom S.A. PL 125.6 Cairn Homes plc IRL 761.5 Springfield Properties Plc UK 121.8

9 MARKET FUNDAMENTALS Market Fundamentals Historical & Forecasted Revenue Development (Current Market Expectations)

1 The total revenues of Revenue Development Year-on-Year (Mean ’10 – ’22) the infrastructure & construction market 10% 4 show a moderate 2 4 7.5% historic development 6.8% (‘10 – ’19) with an 6.1% 6.4% 4.8% 5.3% average Y-o-Y growth 5% of 0.7%, mostly under- performing the real EU GDP growth 1.2% 1 0.7% 0% 2 The Y-o-Y revenue development shows -1.0% -0.8% low degrees of volatility

(growth rates between -5% -4.3% -5.3% and +6.4%) -5.3% -5.1% 2 3 The global Covid-19 pandemic strongly -10% affects the Y-o-Y revenue in ’20, resulting in a revenue -12.4% decline of 12.4% 3 -15% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 4 Growth rates are Best Historical Worst Historical Mean Mean (est) EU GDP Growth Long-Term Historical Average expected to exceed Y-o-Y Development Y-o-Y Development historical growth levels in ’21 and ’22, implying Revenue Development (Rebased 2009 = 100%) a “V”-shaped recovery 150%

100% 107%

50%

0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Rebased Revenue Development

Source: S&P Capital IQ as of 16/10/2020; FCF Equity Research; IMF 11 Note: Real European Union GDP based on IMF regional classification Market Fundamentals Historical & Forecasted EBITDA Development (Current Market Expectations)

1 The total EBITDAs of EBITDA Development Year-on-Year (Mean ’10 – ’22) the infrastructure & 4 construction market 25% 22.4% show a moderate 2 20% historic development 18.2% 4 (‘10 – ’19) with an 15.2% 15% average growth rate of 1.1% Y-o-Y 10% 8.4% 6.4% 5.3% 2 The Y-o-Y EBITDA 5% development shows 2.7% 1 0.0% 1.1% a much higher 0% degree of volatility -0.5% -1.2% compared to -5% revenue (growth rates between -10% -10.3% -10.9% -17.8% and +18.2%) -15% 3 3 EBITDA is expected -20% -17.8% to decrease by 2 10.9% Y-o-Y in ’20 -25% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 4 However, in ’21 and Mean Mean (est) Long-Term Historical Average Best Historical Worst Historical ’22 growth rates Y-o-Y Development Y-o-Y Development become positive, EBITDA Development (Rebased 2009 = 100%) surpassing the 150% historical record high 134% of ’14, implying a 100% strong “V”-shaped recovery 50% 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Rebased EBITDA Development

Source: S&P Capital IQ as of 16/10/2020; FCF Equity Research 12 Market Fundamentals Historical & Forecasted EBIT Development (Current Market Expectations)

1 The total EBITs of EBIT Development Year-on-Year (Mean ’10 – ’22) the infrastructure & construction market 40% show a positive 4 historic development 31.6% 30% (‘10 – ’19), growing 2 at an average rate of 21.5% 4 3.5% Y-o-Y 20% 16.7% 12.3% 2 The EBIT deve- 11.2% lopment Y-o-Y 10% 7.9% 7.5% 1 shows a similar 2.8% 4.2% 3.5% volatility compared 0% to EBITDA (growth -2.2% rates between -18.8% and +21.5%) -10% -11.0% 3 In line with the EBITDA develop- -20% -18.8% ment, EBIT is ex- 2 -24.0% pected to decrease -30% 3 by 24.0% in ’20 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Mean Mean (est) Long-Term Historical Average Best Historical Worst Historical 4 Thereafter, growth Y-o-Y Development Y-o-Y Development rates continue to be EBIT Development (Rebased 2009 = 100%) positive and are 200% expected to exceed 156% historical record 150% highs in ’21 100% 50%

0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Rebased EBIT Development

Source: S&P Capital IQ as of 16/10/2020; FCF Equity Research 13 Market Fundamentals Historical EBITDA / EBIT Margin Development

The European EBITDA Margin (Mean ’10 – ’22) infrastructure & construction 12.0% 3 industry is typically 2 characterized by 10.0% 1 8.7% narrow EBITDA and 8.0% EBIT margins, due to the higher compe- 6.0% 10.7% 10.0% tition 9.4% 9.6% 9.1% 9.5% 8.7% 8.4% 8.8% 8.6% 8.8% 1 4.0% 7.4% 7.8% The long-term (’10 - 2.0% ’19) average EBITDA and EBIT 0.0% margins are 8.7% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 and 6.5%, respec- Mean Mean (est) Long-Term Historical Average tively 2 Since ‘14, EBITDA EBIT Margin (Mean ’10 – ’22) and EBIT margins exceeded the long- 3 8.0% 2 term averages 3 7.0% 1 6.5% EBITDA and EBIT 6.0%

margins are 5.0% expected to rise to 4.0% 7.5% 7.9% 10.7% and 7.9% by 7.1% 7.2% 6.8% 6.9% 6.8% 7.2% ’22, respectively 3.0% 5.9% 6.2% 5.9% 5.0% 5.4% 2.0%

1.0%

0.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Mean Mean (est) Long-Term Historical Average

Source: S&P Capital IQ as of 16/10/2020; FCF Equity Research 14 MARKET VALUATION Market Valuation Historical EV / EBITDA Development

1 The long-term (’10 - EV / EBITDA Multiple (Median ’10 – LTM) ’19) average EV / in % EBITDA multiple is 10.0x 800 8.7x 2 3 4

2 The annual average 9.5x 700 EV / EBITDA multiple of the infrastructure & construction 9.0x 600 1 industry has shown a 8.7 x strong positive development 8.5x 500 between ‘11 - ’13, reaching record highs in ‘13 8.0x 400

3 Between ’13 and ‘18, 2 the EV / EBITDA 7.5x 300 multiple has shown a fluctuating but in general negative development, 7.0x 200 reaching a record 3 low in ‘18 6.5x 100 4 In ‘19, the sector experienced an

uptick in market 6.0x 0 capitalizations, 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 LTM resulting in a sharp increase of the EV / European Infrastructure & Construction Industry Multiple Long-Term Average Multiple EBITDA (Rebased 2009 = 100%) Implied EV (Rebased 2009 = 100%) EBITDA multiple

Source: S&P Capital IQ as of 16/10/2020; FCF Equity Research 16 Market Valuation Historical EV / EBIT Development

1 The long-term (’10 - EV / EBIT Multiple (Median ’10 – LTM) ’19) average EV / in % EBIT multiple is 11.1x 13.0x 450

2 3 2 The EV / EBIT multiple of the 12.5x 400 infrastructure & 5 construction market between ’11 - ’13, has 12.0x 350 shown a strong positive development

11.5x 3 300 3 After reaching record highs in ’13, the EV / 1 EBIT multiple de- 11.1 x 11.0x 250 clined and was in line with the long-term average until ‘17 10.5x 200

4 In ’18, the EV / EBIT multiple experienced a sharp decline, 10.0x 150 which was largely driven by a correction in investor sentiment 9.5x 100 within the general 2 economy 9.0x 50 5 Since then, the 4 multiple exceeded the long-term average 8.5x 0 and approaches the 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 LTM

multiple level reached European Infrastructure & Construction Industry Multiple Long-Term Average Multiple EBIT (Rebased 2009 = 100%) Implied EV (Rebased 2009 = 100%) in ‘13

Source: S&P Capital IQ as of 16/10/2020; FCF Equity Research 17 CREDIT STATISTICS Credit Statistics Historical Net Leverage / Equity Ratio Development

Within the infrastru- Net Leverage (Mean ’10 – LTM) cture & construction 1 market, firms are 3.6x generally leveraged 3.4x 1 higher than other 3.2x industries, despite 3.0x solid equity ratios 1 2.8x 2.7 x 1 From ’13 - ‘17, the 2.6x net leverage of the 2.4x sector decreased 2.2x and reached a 2.0x record low in ’17. 1 1.8x Since then, net 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 LTM leverage sharply Mean Net Leverage Long-Term Average increased. The long- term average net leverage for the Equity Ratio (Mean ’10 – LTM) period was 2.7x 40.0% EBITDA 2 39.0%

2 The equity ratio 38.0% followed an upward 37.0% trend and reached 36.0% record highs in ‘17 2 35.0% (39.1%). Since then, 34.7% the equity ratio fell 34.0% below the long-term 2 33.0% 2 average of 34.7% 32.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 LTM

Mean Equity Ratio Long-Term Average

Source: S&P Capital IQ as of 16/10/2020; FCF Equity Research 19 Credit Statistics Historical EBITDA interest Cover Ratio / Loan-to-Value Ratios Development

1 Due to the EBITDA Interest Cover Ratio (Mean ’10 – LTM) decreasing ECB’s base rate and an 28.0x 1 increasing EBITDA 26.0x within the infrastruc- 24.0x ture & construction 22.0x market, the EBITDA 20.0x interest cover ratio 1 has shown a positive 18.0x 16.4 x development from 16.0x ’13 – ’17 with a 14.0x long-term average 12.0x 1 EBITDA interest 10.0x cover ratio of 16.4x 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 LTM Mean EBITDA Interest Cover Long-Term Average 2 The long-term loan- to-value ratio showed an upward Loan-to-Value Ratios (LTV) (Mean ’10 – LTM) trend with a long- 90.0% term average of 2 80.0% 65.7%, reaching 2 3 70.0% record highs in LTM 65.7% (80.4%) 60.0% 2 50.0% 3 In general, the long- 40.0% term loan-to-value 30.0% ratios have been at 20.0% high levels due to 10.0% 3 the asset-heavy 3.7% 0.0% business model 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 LTM

Mean ST Debt / Current Assets Mean LT Debt / Non-current Assets Long-Term Average Loan-to-Value: Short- / Long-term debt as a percent of Current / Non-current Assets (explains how well Short- / Long-term debt is covered or can be repaid by Current / Non-current Assets)

Source: S&P Capital IQ as of 16/10/2020; FCF Equity Research 20 Credit Statistics Historical Implied Cost of Capital / WACC Analysis

1 The implied cost of WACC Debt / Equity equity (ROE) showed Proportion an upward develop- 18.0% 100% ment since ’13, reaching a record high 1 in ’18 and surpassing 16.0% 90% the long-term average of 13.0% 80% 14.0% 2 The implied cost of 1 debt has decreased 13.0% from 1.0% in ’10 to 70% 0.7% in ’19, following 12.0% the decreasing ECB’s 60% base rate 10.0% 3 The debt / equity 1 50% proportion has been fairly stable (’10 – ’19) 8.0% with a moderate equity 40% proportion of around 4 3 3 35% 6.0% 4 30% 5.1% 4 Due to the leverage 4 ratio and the relatively 4.0% stable cost of debt, the 20% development of the weighted average cost 2.0% of capital resembles 2 10% 2 the ROE development, 1.1% fluctuating within the 0.0% 0% corridor of 3.9% and 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 LTM 6.3% with a long-term average WACC of Weighting Equity Weighting Debt Cost of Equity Cost of Debt WACC Long-Term Average 5.1%

Source: S&P Capital IQ as of 16/10/2020 Note: Implied cost of equity based on annual return on equity values (the actual cost of equity to the firm); implied cost of debt based on annual interest expenses as reported (including financial 21 lease expenses and other components of interest expenses) as a proportion of total liabilities (implied interest rate) Rating Analysis Historical Rating Development

Historically, the overall public 1 infrastructure & 2 construction market (rated by large rating 3 agencies, e.g. Fitch, Very High Investment Grade (VHIG) Moody´s, S&P) is 4 rated as non- investment grade 5

1 6 The median rating of High Investment Grade the infrastructure & (HIG) construction market 7 has been fairly 8 stable (‘10 – ’19),

lying in the FCF FCF Rating 9 Good Investment Grade rating corridor of 11 (GIG) – 12 (corresponding 10 to S&P’s rating scale 1 of BB+ to BB) 11 1

12

13

14

15 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 LTM

Median Rating Mean Rating

Source: S&P Capital IQ as of 16/10/2020; FCF Equity Research 22 Note: FCF Rating 1 is equal to S&P Rating AAA; FCF Rating 15 is equal to S&B Rating B PRIVATE EQUITY AND MERGER & ACQUISITION Private Equity Historical Deal Volume / Deal Count Development

Overall, the infra- # of Deals EURm structure & construc- 1 tion PE market 12,0003,000 60 shows a high level of volatility in terms of deal volume 2,500 50 1 The annual deal volume (disclosed deals only) reached 1 record highs in ’18 2 EUR 1,986.8m 2,000 3 40 and relatively high 1 3 levels in ’16 and 19 (mega transactions in ’16, ‘18 and ‘19) 1,500 30 2 The average annual disclosed deal volume (’10 – ’19) is EUR 2.0bn 1,000 20

3 After a sideways development until ‘17, deal count 500 10 reached record highs in ’18 and ’19

0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020* Deal Volume Average Annual Deal Volume** Deal Count (incl. undisclosed)

Source: PitchBook as of 16/10/2020 Note: Undisclosed deals in screening included 24 *Only includes deals from 01/01 – 16/10/2020; **2020 excluded from average annual deal volume calculation Merger and Acquisition Historical Deal Volume / Deal Count Development

Overall, the infrastruc- # of Deals EURm ture & construction M&A market shows a 6,000 60 high level of volatility 1 1 The annual deal volume (disclosed 5,000 50 deals only) reached record highs in ’18 and showed relatively high deal volumes in’16, ‘17 and ‘20 4,000 40 YTD, (due to mega 3 transactions in these years) 3 1 3,000 30 2 The average annual 1 disclosed deal volume (’10 – ’19) is EUR 1.3bn 1 2,000 20 3 From ’10 – ’18, deal count showed a 2 EUR 1,325.4m sideways trajectory, reaching a record high of 35 deals in ‘18 1,000 10

4 However, after the 4 peak in ’18, deal count in the 0 0 infrastructure & 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020* construction industry declined in ‘19 Deal Volume Average Annual Deal Volume** Deal Count (incl. undisclosed)

Source: PitchBook as of 16/10/2020 Note: Undisclosed deals in screening included 25 *Only includes deals from 01/01 – 16/10/2020; **2020 excluded from average annual deal volume calculation Contact Details & Disclaimer

FCF Fox Corporate Finance GmbH Disclaimer Maximilianstrasse 12-14 This document does not constitute an offer or invitation to purchase or subscribe 80539 Munich ▪ Germany for any securities, and neither this document nor anything contained herein shall Telephone +49 (89) 206 0409-0 form the basis of or may be relied upon in connection with any contract or Facsimile +49 (89) 206 0409-299 commitment whatsoever. No representation or warranty (express or implied) is [email protected] ▪ www.fcf.de made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, neither FCF nor any of its officers, directors or Kai Frömert Marcel Lange Tristan Blümli employees accepts any liability whatsoever arising directly or indirectly from the Managing Director Director Vice President use of this document. By accepting this document you acknowledge that you will P: +49 (89) 206 0409-135 P: +49 (89) 206 0409-126 P: +49 (89) 206 0409-140 be solely responsible for your own assessment of the market and the market M: +49 (173) 580 0407 M: +49 (172) 839 5740 M: +49 (172) 839 5716 position of the Company and that you will conduct your own analysis and be [email protected] [email protected] [email protected] solely responsible for forming your own view of the potential future performance of the Company's business. This document contains certain forward-looking Marco Buonafede Yasmin Herrmann statements, including assumptions, opinions and views cited from third party sources. Various known and unknown risks, uncertainties and other factors could Analyst Analyst cause the actual results, financial position, development or performance of the P: +49 (89) 206 0409-131 P: +49 (89) 206 0409-122 M: +49 (174) 207 8772 M: +49 (173) 683 8442 Company to differ materially from the estimations expressed or implied herein. [email protected] [email protected] FCF does not guarantee that the figures, assumptions and calculations underlying such historical and forward looking statements are free from errors nor does FCF accept any responsibility for the future accuracy of the opinions expressed in this document or the actual occurrence of the forecasted developments.

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