Slide 1: 2014 Preliminary Consolidated Results
2014 PRELIMINARY CONSOLIDATED RESULTS 27 February 2015
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: FY 2014 Key Highlights
FY 2014 Key Highlights Key Business Highlights • Confirmation of positive business trend, with improvements of order intake, backlog and revenues on a consolidated level • In Shipbuilding, significant cruise segment recovery, both in terms of order intake and production volumes; within the Italian N
Slide 4: FY 2014 main new orders (1/2)
FY 2014 main new orders (1/2) Vessel(1) Client Delivery 1 extra-luxury cruise ship Seabourn Cruise Line 2016 (“Seabourn Encore”) 1 extra-luxury cruise ship Undisclosed 2016 (unnamed) Programma Rinascimento MSC Crociere 2015 2 Littoral Combat Ship units US Navy 2018 Shipbuilding 2 Articulated Tug Bar
Slide 5: FY 2014 main new orders (2/2)
FY 2014 main new orders (2/2) Orders acquired in Q4 Vessel(1) Client Delivery 1 extra-luxury cruise ship Seabourn Cruise Line 2018 (“Seabourn Ovation” - “Seabourn Encore” sister ship) 1 cruise ship (“Carnival Vista” Carnival Cruise Lines 2018 Shipbuilding sister ship 1 cruise ship (“Koningsdam” Holl
Slide 6: FY 2014 main deliveries (1/2)
FY 2014 main deliveries (1/2) Vessels delivered in Q4 Vessel(1) Client Shipyard FREMM “Carlo Margottini” Italian Navy Muggiano Patrol boat “Ubaldo Diciotti” Italian Coast Guard Castellammare di Stabia Cruise ship “Regal Princess” Princess Cruises Monfalcone Oceanographic vessel University of Alaska
Slide 7: FY 2014 main deliveries (2/2)
FY 2014 main deliveries (2/2) Vessels delivered in Q4 Vessel(1) Client Shipyard PSV “Troms Arcturus“ Troms Offshore Vard Aukra AHTS “Far Sigma” Farstad Shipping Vard Langsten OSCV “Normand Reach” Solstad Offshore Vard Aukra Offshore OSCV “Normand Vision” Solstad Offshore Vard Søviknes OSCV “Siem Sti
Slide 8: Summary of financial performance indicators
Summary of financial performance indicators(1) Comments € MM FY 2013 FY 2014 • Order intake at € 5.6 BN taking backlog Order intake 4,998 5,639 up to € 9.8 BN Backlog 8,068 9,814 Revenues 3,811 4,399 • Revenues at € 4.4 BN EBITDA 298 297 • EBITDA at € 297 MM (6.8% on revenues) As a % of revenues 7.8
Slide 9: Order intake and backlog – by segment
Order intake and backlog – by segment Order intake Backlog Comments € MM € MM • Solid order intake at € 5.6 BN in 2014, 1.3x 1.3x 2.1x 2.2x with book-to-bill ratio of 1.3x 5,639 Soft ‒ Shipbuilding: € 4.4 BN 204 4,998 backlog(1) 22 units, of which 8 cruise ships, 6(2) 1,131 9,814 € 5.0 BN 205 nava
Slide 10: Backlog deployment – by segment and end market
Backlog deployment – by segment and end market Shipbuilding Offshore Comments # ship deliveries (1) # ship deliveries • Cruise Cruise Naval(2) − Visibility of deliveries to 2018 − 4 units scheduled for delivery in 2018, 2014 18 including 3 orders acquired in Q4 2014 2014 2 2014 4 • Naval − Deliverie
Slide 11: Revenues – by segment and end market
Revenues – by segment and end market Breakdown by segment and end market(1) Comments € MM 4,399 • Shipbuilding revenues increased by 12.9% at € 2.7 BN, with higher 4.3% 192 3,811 contribution of Cruise more than 4.2% 163 compensating the reduced contribution 35.3% 1,580 of Naval due to the gradual c
Slide 12: EBITDA by segment
EBITDA(1) by segment EBITDA and EBITDA margin Comments € MM • Group EBITDA at € 297 MM, in line with 7.8% 6.8% FY 2013, with margin at 6.8% 298 297 • Shipbuilding EBITDA at € 195 MM with higher contribution in terms of margins at 8.5% 14 11.1% 21 7.2%, mainly thanks to the increase in volumes and th
Slide 13: 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 € 87 MM, vs. € 137 MM in 2013 mainly due to ‒ Lower EBIT (€ -11 MM) 137 ‒ Higher finance expenses (€ +11 MM
Slide 14: Capital expenditures
Capital expenditures Capex Comments € MM 6.7% 3.7% • Capex in 2014 equal to € 162 MM, of 255 which 37 ‒ Tangible for € 124 MM, mainly related 162 to the completion of the Vard Promar 38 shipyard in Brazil, project which had 218 significantly impacted 2013 124 investments, and technological upgrading
Slide 15: Net working capital
Net working capital Breakdown by main components Comments € MM FY 2013 FY 2014 • Net working capital at the end of 2014 increased to € 69 MM, compared to 388 negative € 67 MM for FY 2013 with ‒ Increase in work in progress (€ 355 Inventories and advances 400 1,112 MM) driven by growth of volumes in
Slide 16: Net financial position
Net financial position(1) Breakdown by main components Comments € MM – Net cash / (Net debt) FY 2013 FY 2014 • Net financial position at the end of 2014 at € 44 MM reflecting 90 82 ‒ Positive effect of the capital increase (€ 351 MM) following the IPO Non-current financial receivables 41 Current fin
Slide 17: Key financial ratios
Key financial ratios Profitability ratios Debt ratios Comments ROI (EBIT / Net invested capital) Net debt / EBITDA • ROI at 13.9% for FY 2014 reflects the € MM EBIT decrease in 2014 155 (44) • ROE at 4.0% includes effects of the increase in equity and the reduction of 0.5x 15.3% profitability in 201
Slide 18: Outlook
Outlook • Sustained order intake expected in 2015, also in relation to the expected finalization of contracts for the Italian Navy fleet renewal program • In the Shipbuilding segment ‒ Despite the gradual recovery in cruise volumes thanks to a significant number of acquired orders entering productio
Slide 19: 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 20: Q&A
Q&A FINCANTIERI 20
Slide 21: Appendix
Appendix FINCANTIERI 21
Slide 22: FY 2014 results by segment
FY 2014 results by segment Shipbuilding Offshore Equipment, systems and services 22
Slide 23: Shipbuilding
Shipbuilding Highlights Comments € MM FY 2013 FY 2014 • 5 large cruise ships (2 for MSC • Orders: solid order intake at € 4.4 BN, Crociere, 1 for Princess Cruises, 1 for Order intake 3,010 4,400 including 22 new ships Holland America Line, 1 for Carnival • Revenues: at € 2.7 BN, up 12.9% vs. FY Back
Slide 24: Offshore
Offshore Highlights Comments € MM FY 2013 FY 2014 • 1 Diving Support and Construction • Orders: order intake at € 1.1 BN taking Vessel for Technip Order intake 1,816 1,131 backlog at € 2.1 BN • 1 arctic AHTS for Bourbon • Revenues: at € 1.6 BN up 19.6% vs. FY Backlog 2,480 2,124 • 8 PSV (2 for Carlo
Slide 25: Equipment, systems and services
Equipment, systems and services Highlights Comments € MM FY 2013 FY 2014 • Orders: order intake at € 204 MM Order intake 205 204 bringing backlog at € 300 MM • Revenues: up to € 192 MM, mainly due Backlog 264 300 to the increase of volumes of after sale Revenues 163 192 services for naval vessels an
Slide 26: Profit & Loss and Cash flow statement
Profit & Loss and Cash flow statement Profit & Loss statement (€ MM) FY 2013(1) FY 2014 Revenues 3,811 4,399 Materials, services and other costs (2,745) (3,234) Personnel costs (752) (843) Provisions and impairment losses (16) (25) EBITDA 298 297 Depreciation and amortization (89) (99) EBIT 209 198
Slide 27: Balance sheet
Balance sheet Balance sheet (€ MM) FY 2013 FY 2014 Intangible assets 539 508 Property, plant and equipment 897 959 Equity investments 70 60 Other non current assets and liabilities (14) (48) Employee indemnity benefit (60) (62) Net fixed capital 1,432 1,417 Inventories 400 388 Construction contracts