Slide 1: 2014 Nine Months Results
2014 NINE MONTHS RESULTS 11 November 2014
Slide 2: Safe Harbor Statement
Safe Harbor Statement This Presentation contains certain forward-looking statements. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes," "expects," "predicts," "intends," "projects," "pl
Slide 3: 9M 2014 Key Highlights
9M 2014 Key Highlights Key Business Highlights • Confirmation of uptrend in new orders in Shipbuilding, notably in cruise business, where the first preliminary indications of volumes recovery in Italian shipyards are observed; within the Italian Navy’s fleet renewal program, first two vessels config
Slide 4: 9M 2014 main new orders
9M 2014 main new orders Vessel Client Delivery 2 extra-luxury cruise vessels Seabourn Cruise 2016 Undisclosed 2016 Programma Rinascimento MSC Crociere 2015 Shipbuilding Q1 2 Littoral Combat Ship units US Navy 2018 Offshore OSCV VARD 3 19 Solstad Offshore 2016 2 cruise ships (Project MSC Crociere 201
Slide 5: 9M 2014 main deliveries
9M 2014 main deliveries Vessel Client Shipyard FREMM Carlo Margottini Italian Navy Muggiano Shipbuilding Patrol boat Ubaldo Diciotti Italian Coast Guard Castellammare di Stabia Q1 PSV Troms Arcturus Troms Offshore Vard Aukra Offshore AHTS Far Sigma Farstad Shipping Vard Langsten Regal Princess Princ
Slide 6: Summary of financial performance indicators
Summary of financial performance indicators(1) Comments € MM FY 2013 9M 2013 9M 2014 • Order intake at € 4.2 BN taking backlog Order intake 4,998 3,971 4,247 up to € 9.5 BN Backlog 8,068 8,089 9,472 • Revenues at € 2.9 BN Revenues 3,811 2,715 2,935 • EBITDA at € 207 MM (7.1% on revenues) EBITDA 298
Slide 7: Order intake and backlog – by segment
Order intake and backlog – by segment Order intake Backlog Comments € MM € MM 1.5x 1.5x • Solid order intake at € 4.2 BN in 9M 2014, with book-to-bill ratio of 1.5x 4,247 Soft 3,971 backlog(1) ‒ Shipbuilding: € 3.1 BN 168 € 5.7 BN 19 units, of which 5 cruise ships, 6(2) 188 9,472 naval vessels and
Slide 8: Backlog deployment – by segment and end market
Backlog deployment – by segment and end market Shipbuilding Offshore Comments # ships deliveries (1) # ships deliveries • Cruise Cruise Naval(2) − Visibility of deliveries to 2018 − 3 units for delivery in 2017, including 4Q 2014 1 4Q 2014 4Q 2014 4 the third “Royal Princess” class vessel acquired i
Slide 9: Revenues – by segment and end market
Revenues – by segment and end market Breakdown by segment and end market(1) Comments € MM 2,935 • Shipbuilding revenues increased by 2,715 4.3% 129 8.7% at € 1.9 BN, with higher 3.8% 106 contribution of Cruise more than compensating the reduced 33.3% 991 34.5% 953 contribution of Naval following rec
Slide 10: EBITDA by segment
EBITDA(1) by segment EBITDA and EBITDA margin Comments € MM • Group EBITDA at € 207 MM, in line with 7.6% 7.1% 9M 2013, with margin at 7.1% 208 207 ‒ Shipbuilding at € 125 MM with higher contribution in terms of margins at 7.6% 8 10.3% 13 6.7%, also thanks to the positive trend of Euro/USD exchange
Slide 11: Net income before extraordinary and non recurring items
Net income before extraordinary and non recurring items(1) Net income before extraordinary and non recurring items(1) Comments € MM • Net income before extraordinary and non recurring items at € 68 MM, vs. € 88 MM in 9M 2013 mainly due to ‒ Lower EBIT (€ -9 MM) 88 68 ‒ Higher finance expenses (€ +19
Slide 12: Capital expenditures
Capital expenditures Capex Comments € MM 7.4% • Capex in 9M 2014 equal to € 110 MM, 201 of which 31 3.7% ‒ Tangible for € 90 MM, mainly related 110 to the construction of new 20 infrastructures (e.g. Vard Promar 170 90 Brazilian shipyard) and technological upgrading of facilities to improve 9M 2013
Slide 13: Net working capital
Net working capital Breakdown by main components Comments € MM 353 • Net working capital at the end of 9M Inventories and advances 481 2014 increased to € 353 MM, compared 400 to negative € 67 MM for FY 2013 with ‒ Increase in work in progress (€ 292 Work in progress net of 1,049 advances from custo
Slide 14: Net financial position
Net financial position(1) Breakdown by main components Comments € MM – Net cash / (Net debt) • Net debt at the end of 9M 2014 at € 238 MM reflecting Non-current financial receivables 41 80 ‒ Positive effect of the capital increase Current financial receivables 52 25 (€ 351 MM) following the IPO and
Slide 15: Key financial ratios
Key financial ratios Profitability ratios Debt ratios Comments ROI(1) (EBIT / Net invested capital) Net debt / EBITDA • ROI at 12.8% for 9M 2014 reflects € MM the increase in 2014 of net invested 97 238 capital • ROE at 5.3% includes effects of the 13.3% 12.8% 0.8x increase in equity in 2014 while 9
Slide 16: Outlook
Outlook • Trend of the business and better visibility due to further extension of the order book during the first nine months of 2014 suggest a higher activity during the remaining part of 2014 • In the Shipbuilding segment ‒ Gradual recovery in volumes thanks to a significant number of acquired ord
Slide 17: Investor Relations contacts
Investor Relations contacts Investor Relations Team Luca Passa - Head of Investor Relations +39 040 319 2369 luca.passa@fincantieri.it Tijana Obradovic +39 040 319 2409 tijana.obradovic@fincantieri.it Silvia Ponso +39 040 319 2371 silvia.ponso@fincantieri.it Institutional Investors investor.relation
Slide 18: Q&A
Q&A FINCANTIERI 18
Slide 19: Appendix
Appendix FINCANTIERI 19
Slide 20: 9M 2014 results by segment
9M 2014 results by segment Shipbuilding Offshore Equipment, systems and services 20
Slide 21: Shipbuilding
Shipbuilding Highlights Comments € MM 9M 2013 9M 2014 • 2 large cruise ships for MSC • Orders: solid order intake at € 3.1 BN, Crociere and 1 large cruise ship for Order intake 2,248 3,086 including 19 new ships Princess Cruises • Revenues: at € 6.8 BN driven by Backlog 5,371 6,797 • 2 extra-luxury
Slide 22: Offshore
Offshore Highlights Comments € MM 9M 2013 9M 2014 • 1 Diving Support and Construction • Orders: order intake at € 1.1 BN bringing Vessel for Technip backlog at € 2.4 BN Order intake 1,553 1,081 • 1 arctic AHTS for Bourbon • Revenues: at € 991 MM up 4% vs. 9M Backlog 2,543 2,433 • 8 PSVs (2 for Carlo
Slide 23: Equipment, systems and services
Equipment, systems and services Highlights Comments € MM 9M 2013 9M 2014 • Orders: order intake at € 168 MM Order intake 188 168 bringing backlog at € 327 MM • Revenues: up to € 129 MM, mainly due Backlog 198 327 to the increase of volumes of after sale Revenues 106 129 services for naval vessels an
Slide 24: Profit & Loss and Cash flow statement
Profit & Loss and Cash flow statement Profit & Loss statement (€ MM) 9M 2013(1) 9M 2014 Revenues 2,715 2,935 Materials, services and other costs (1,954) (2,105) Personnel costs (557) (617) Provisions and impairment losses 4 (6) EBITDA 208 207 Depreciation and amortization (67) (75) EBIT 141 132 Fina
Slide 25: Balance sheet
Balance sheet Balance sheet (€ MM) FY 2013 9M 2014 Intangible assets 539 558 Property, plant and equipment 897 951 Equity investments 70 75 Other non current assets and liabilities (14) (40) Employee indemnity benefit (60) (58) Net fixed capital 1,432 1,486 Inventories 400 481 Construction contracts