Slide 1: 2016 Nine Months Results
2016 NINE MONTHS RESULTS November 11, 2016
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 2016 Key Messages
9M 2016 Key Messages • Business plan targets confirmed: 9M 2016 results, with 5.7% EBITDA margin and positive net result at € 7 mln, mark a substantial improvement compared with 9M 2015 (EBITDA margin 0.2%) and are in line with the targets set out in the Business Plan 2016-2020 • Total backlog(1) at
Slide 4: 9M 2016 main orders
9M 2016 main orders Orders acquired in Q3 Vessel Client Delivery 1 ultra-luxury cruise ship Regent Seven Seas Cruises 2020 (“Seven Seas Explorer” sister ship) (Norwegian Cruise Line Holdings) 1 Littoral Combat Ship US Navy 2020 Shipbuilding 1 cruise ship Princess Cruises 2020 (fifth “Royal Princess”
Slide 5: 9M 2016 main deliveries (1/2)
9M 2016 main deliveries (1/2) Deliveries in Q3 Vessel Client Shipyard Cruise ship “Viking Sea” Viking Ocean Cruises Ancona Cruise ship “Koningsdam” Holland America Line Marghera (prototype) (Carnival Corporation) Cruise ship “Carnival Vista” Carnival Cruise Lines Monfalcone (prototype) Shipbuilding
Slide 6: 9M 2016 main deliveries (2/2)
9M 2016 main deliveries (2/2) Deliveries in Q3 Vessel Client Shipyard Littoral Combat Ship “USS US Navy Marinette Detroit” (LCS 7) Shipbuilding FREMM “Alpino” Italian Navy Muggiano OSCV “Skandi Açu” Techdof Brasil Vard Søviknes AHTS “Skandi Paraty” DOF Vard Niterói Offshore (Vard) 3 LPG carriers “Ba
Slide 7: Order intake and backlog – by segment
Order intake and backlog – by segment Order intake Backlog Comments € mln € mln • Consistent growth of backlog across all Soft 1.6x 2.0x backlog(3) segments, notably in Shipbuilding € 2.8 bln Soft 18,977 • Order intake backlog(3) Soft € 3.0 bln 908 − Shipbuilding: 12 units (2 cruise ships, 6,308 bac
Slide 8: Backlog deployment – by segment and end market
Backlog deployment – by segment and end market Shipbuilding Offshore Comments # ship deliveries(1) # ship deliveries • 106 ships in backlog at September 30, Cruise Naval(2) 2016 • Cruise: 21 vessels 2016 4 1 5 2016 6 4 10 2016 9 7 16 − Visibility of deliveries up to 2022 with 2 units scheduled after
Slide 9: Revenues – by segment and end market
Revenues – by segment and end market Breakdown by segment and end market(1) Comments € mln • Shipbuilding − Growth of volumes in cruise (13 units under construction vs. 11 in the same 3,230 3,032 period of 2015) 5.8% 193 − Decrease in other activities primarily 4.8% 149 due to the lower contribution
Slide 10: EBITDA by segment
EBITDA(1) by segment EBITDA and EBITDA margin Comments € mln • Continuous improvement of operational 0.2% 5.7% and financial performance in all segments 185 • Shipbuilding 16.6% 32 − Gradual margin recovery with the delivery of highly complex prototypes 5.1% 37 − Positive performance of naval busine
Slide 11: Net result
Net result Net result before extraordinary and non recurring items(1) Comments € mln • Result before extraordinary and non recurring items reflects 30 − Improvement of operating 35 (5) performance and margin (73) − Lower finance expenses at € 52 mln (96) (€ 109 mln in 9M 2015), which (169) include u
Slide 12: Capital expenditures
Capital expenditures Capex Comments € mln 3.5% 4.7% • Tangible capex mainly aimed at 152 − Supporting the development of production volumes, including a 106 51 larger launching system for the 18 production of cruise sections in 101 Romania and new painting systems 88 in Monfalcone to support the pro
Slide 13: Net working capital
Net working capital(1) Breakdown by main components Comments € mln FY 2015 9M 2016 • Net working capital increased to € 322 mln, from € 251 mln in FY 2015 405 Inventories and advances to • Reduction of work in progress related to suppliers 557 several deliveries over the period and the reclassificat
Slide 14: Net financial position
Net financial position(1) Breakdown by main components Comments € mln – Net cash / (Net debt) FY 2015 9M 2016 • Net debt at the end of 9M 2016 at € 625 mln, up from € 438 mln in FY 2015 ‒ Most of the Group's debt is related to the financing of current assets associated with cruise ships Non-current
Slide 15: Outlook
Outlook • Guidance 2016 confirmed • Guidance 2018 confirmed • Guidance 2020 confirmed ‒ Revenue increase 4-6% vs. 2015 ‒ Revenue increase 16-23% vs. ‒ Revenue increase 16-21% vs. Guidance ‒ EBITDA margin approx. 5% 2016 2018 ‒ Positive net result ‒ EBITDA margin approx. 6-7% ‒ EBITDA margin approx.
Slide 16: Investor Relations contacts
Investor Relations contacts Investor Relations Team Angelo Manca - VP Investor Relations +39 040 319 2457 angelo.manca@fincantieri.it Tijana Obradovic +39 040 319 2409 tijana.obradovic@fincantieri.it Silvia Ponso +39 040 319 2371 silvia.ponso@fincantieri.it Alberta Michelazzi +39 040 319 2497 albert
Slide 17: Fincantieri
< 0 Oo FINCANTIERI 17
Slide 18: Appendix
Appendix tn he FINCANTIERI
Slide 19: 9M 2016 results by segment
9M 2016 results by segment Shipbuilding Offshore Equipment, Systems and Services 19
Slide 20: Shipbuilding
Shipbuilding Highlights Comments € mln FY 2015 9M 2015 9M 2016 • 1 cruise ship for Princess • Orders: order intake at € 5,228 mln Order intake 9,262 4,148 5,228 Cruises taking backlog to € 17,054 mln Order book 18,540 13,817 20,993 • 1 cruise ship for Regent • Revenues: at € 2,412 mln, up 14.3% Seve
Slide 21: Offshore
Offshore Highlights Comments € mln FY 2015 9M 2015 9M 2016 • 4 expedition cruise vessels • Orders: order intake at € 1,084 mln taking for Ponant backlog to € 1,501 mln Order intake 402 299 1,084 • 2 expedition cruise vessels • Revenues: at € 723 mln, down 14.6% Order book 2,729 2,975 2,778 for Hapag
Slide 22: Equipment, Systems and Services
Equipment, Systems and Services Highlights Comments € mln FY 2015 9M 2015 9M 2016 • Orders: order intake at € 361 mln taking Order intake 639 473 361 backlog at € 908 mln Order book 1,181 1,083 1,450 • Revenues: up to € 193 mln Backlog 732 634 908 − Increase of volumes in after sales Revenues 226 14
Slide 23: Profit & Loss and Cash flow statement
Profit & Loss and Cash flow statement Profit & Loss statement (€ mln) FY 2015 9M 2015 9M 2016 Revenues 4,183 3,032 3,230 Materials, services and other costs (3,337) (2,368) (2,403) Personnel costs (865) (658) (626) (1) Provisions (7) - (16) EBITDA (26) 6 185 Depreciation, amortization and impairment
Slide 24: Balance sheet
Balance sheet Balance sheet (€ mln) FY 2015 9M 2015 9M 2016 Intangible assets 518 504 569 Property, plant and equipment 974 958 1,032 Investments 62 65 58 Other non-current assets and liabilities (44) (43) (21) Employee benefits (57) (57) (61) Net fixed assets 1,453 1,427 1,577 Inventories and advan