Slide 1: 2015 Half-Year Results
2015 HALF-YEAR RESULTS 22 July 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: 1H 2015 Key Highlights – Key Business Highlights
1H 2015 Key Highlights Key Business Highlights • Significant order intake leading to an all-time high backlog at € 12.0 BN, together with an important soft backlog(1) of € 7.2 BN at the end of 1H 2015, totalling € 19.2 BN, guarantees long-term visibility on Group revenues • Shipbuilding segment ‒ In
Slide 4: 1H 2015 Key Highlights – Key Financial Highlights
1H 2015 Key Highlights Key Financial Highlights • Order intake at € 4.2 BN (from € 3.4 BN in 1H 2014) with book to bill ratio at 1.9x (1.7x in 1H 2014) • Order book at € 16.0 BN (from € 14.2 BN in 1H 2014) • Group backlog at € 12.0 BN (from € 9.5 BN in 1H 2014) and soft backlog(1) at € 7.2 BN (€ 5.8
Slide 5: 1H 2015 main orders
1H 2015 main orders Vessel Client Delivery 2 Littoral Combat Ship US Navy after 2019 units(2) 2 FREMM units Italian Navy after 2020 1 Logistic Support Ship Italian Navy 2019 unit (LSS) Shipbuilding TO COME Q2(1) 6 Multipurpose Offshore Italian Navy 2021 - 2025 Patrol Ship units (PPA) 1 Multipurpose
Slide 6: 1H 2015 main deliveries
1H 2015 main deliveries Vessel Client Shipyard Cruise ship “Britannia” P&O Cruises Monfalcone Shipbuilding Cruise ship “Viking Star” Viking Ocean Cruises Marghera Q1 OSCV “Far Sleipner” Farstad Shipping Vard Langsten Offshore Research and surveillance Norwegian Navy Vard Langsten vessel “Marjata” Cr
Slide 7: Summary of financial performance indicators
Summary of financial performance indicators(1) Comments € MM FY 2014 1H 2014 1H 2015 • Order intake at € 4.2 BN Order intake 5,639 3,447 4,170 • Order book at € 16.0 BN Order book 15,019 14,184 15,968 • Backlog at € 12.0 BN Backlog 9,814 9,515 12,044 • Soft backlog at € 7.2 BN Soft backlog 5,000 5,8
Slide 8: Order intake and backlog – by segment
Order intake and backlog – by segment Order intake Backlog Comments € MM € MM • Order intake at € 4.2 BN (€ 3.4 BN in 1H 1.7x 1.9x Soft 2014) backlog ‒ Shipbuilding at € 3.8 BN, related to the 4,170 € 7.2 BN Italian Navy’s fleet renewal program (8 306 Soft Soft units), the continuation of FREMM (2 3
Slide 9: 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 up to 2018 without considering the agreements with Carnival 1H 2015 3 1H 2015 2 1H 2015 9 (5 ships with delivery over the period 20
Slide 10: Revenues – by segment and end market
Revenues – by segment and end market Breakdown by segment and end market(1) Comments € MM 2,220 • Shipbuilding revenues at € 1.6 BN, 95 increased by 25% from 1H 2014 1,983 4.2% − In 1H 2015 higher volumes in cruise 4.3% 86 27.5% 626 weighting 37% on total revenues vs. 31% in 1H 2014 34.0% 681 175 −
Slide 11: EBITDA by segment
EBITDA(1) by segment EBITDA and EBITDA margin Comments € MM • Group EBITDA at € 128 MM, down by 10% 7.1% 5.8% from 1H 2014, with margin at 5.8% affected by lower profitability in Offshore 142 128 • Shipbuilding EBITDA at € 103 MM, with 10.3% 9 margin at 6.6%, increase mainly driven by 11.9% 11 the g
Slide 12: Profit/(loss) before extraordinary and non recurring items
Profit/(loss) before extraordinary and non recurring items(1) Profit/(loss) before extraordinary and non recurring items(1) Comments € MM 48 • Profit/(loss) before extraordinary and non recurring items at € (7) MM, vs. € 48 MM 9 in 1H 2014 mainly due to: 39 − Lower EBIT (€ - 19 MM) 23 − Higher finan
Slide 13: Capital expenditures
Capital expenditures Capex Comments € MM 3.4% 3.1% • Capex in 1H 2015 equal to € 68 MM, of 68 which: 67 ‒ Tangible for € 56 MM related to the 14 12 construction of new infrastructure and technological upgrading of facilities to 53 56 improve production efficiency as well as safety and environmental
Slide 14: Net working capital
Net working capital(1) Breakdown by main components Comments € MM • Net working capital at the end of 1H FY 2014 1H 2015 2015 increased to € 299 MM, compared 461 Inventories net of advances 388 to € 69 MM for FY 2014 with: to suppliers ‒ Increase in inventories and advances (€ + 73 MM) and in work i
Slide 15: Net financial position
Net financial position(1) Breakdown by main components Comments € MM – Net cash / (Net debt) • Net financial position at the end of 1H FY 2014 1H 2015 2015 at € 220 MM of net debt, mainly due to higher financing requirements Non-current financial receivables 90 resulting from the growth of volumes i
Slide 16: Key financial ratios
Key financial ratios Profitability ratios Debt ratios Comments ROI(1) (EBIT / Net invested capital) Net debt / EBITDA • ROI at 11.2% for 1H 2015 reflects the € MM increase in net invested capital and 184 220 EBIT decrease compared to 1H 2014 • ROE at 0.3% significantly affected by 16.8% the reductio
Slide 17: Outlook
Outlook • Sustained order intake expected for the remaining part of 2015, notably related to the Shipbuilding segment given the expected conversion into orders of the agreements with (i) Carnival for 5 next-generation cruise ships and (ii) Virgin Cruises for 3 cruise prototypes • Shipbuilding segmen
Slide 18: Investor Relations contacts
Investor Relations contacts Investor Relations Team Luca Passa - VP 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.relations@fin
Slide 19: Q&A
Q&A FINCANTIERI 19
Slide 20: Appendix
Appendix FINCANTIERI 20
Slide 21: 1H 2015 results by segment
1H 2015 results by segment Shipbuilding Offshore Equipment, Systems and Services 21
Slide 22: Shipbuilding
Shipbuilding Highlights Comments € MM 1H 2014 1H 2015 • 8 units within the Italian Navy’s fleet • Orders: high order intake at € 3.8 BN, Order intake 2,396 3,752 renewal program (6 Multipurpose taking backlog to € 10.0 BN Offshore Patrol units, 1 Logistic Support ‒ Agreements with Carnival and Virgi
Slide 23: Offshore
Offshore Highlights Comments € MM 1H 2014 1H 2015 • 1 Diving Support and Construction • Orders: weak order intake at € 140 MM, Order intake 993 140 Vessel (DSCV) for Kreuz Subsea due to a persistently challenging market Order book 3,575 2,917 environment Backlog 2,607 1,609 • Revenues: at € 626 MM d
Slide 24: Equipment, Systems and Services
Equipment, Systems and Services Highlights Comments € MM 1H 2014 1H 2015 • Orders: order intake at € 306 MM taking Order intake 119 306 backlog at € 513 MM Order book 686 932 • Revenues: up to € 95 MM, mainly due to Backlog 304 513 the increase of volumes of systems and Revenues 86 95 components EBI
Slide 25: Profit & Loss and Cash flow statement
Profit & Loss and Cash flow statement Profit & Loss statement (€ MM) 1H 2014 1H 2015 Revenues 1,983 2,220 Materials, services and other costs (1,425) (1,636) Personnel costs (406) (459) Provisions and impairment losses (10) 3 EBITDA 142 128 Depreciation and amortization (49) (54) EBIT 93 74 Finance
Slide 26: Balance sheet
Balance sheet Balance sheet (€ MM) FY 2014 1H 2015 Intangible assets 508 533 Property, plant and equipment 959 977 Investments 60 69 Other non-current assets and liabilities (48) (36) Employee benefits (62) (58) Net fixed capital 1,417 1,485 Inventories and advances 388 461 Construction contracts an