Fincantieri S.p.a. · MIL:FCT
Fincantieri — Non-Deal Roadshow (November 2019)
39 slides from Fincantieri's roadshow presentation, Nov 12, 2019
Slide 1: Update post 9M 2019 results
FINCANTIERI Update post 9M 2019 results November 2019
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: Table of Contents
Table of Contents Section 1 Description of the Group Section 2 Financial overview Section 3 Balance Sheet and Capital Structure Section 4 Strategy & Outlook Appendix
Slide 4: Description of the Group
Section 1 Description of the Group
Slide 5: Fincantieri at a glance
Fincantieri at a glance We are an Italian Group with a global footprint € 5.5 bn FY18 revenues 45% of our employees are based in Italy and 82% of revenues Our come from international clients figures € 32.3 bn Total backlog(1,2) 20 shipyards 4 Our continents global reach ~ 19,300 employees > 80,000 s
Slide 6: Products, clients and backlog
Products, clients and backlog Diversified product portfolio with a wide client base and strong backlog Main products Key clients Revenues 2018(1) Backlog(2) (4) (5) Cruise • All cruise ships: Luxury/Niche(3) Upper Premium €3,226 mln Premium Contemporary 53.7% Naval € 26,720 mln Shipbuilding
Slide 7: Markets and positioning
Markets and positioning Leadership in high-potential reference markets and solid track record End markets Market Trend Main Drivers Track record Cruise • Almost 50 million passengers worldwide by 2030 (+72% compared to 2018)(1) • Passenger growth • World leader in the design and construction of vess
Slide 8: Focus: cruise client portfolio
Focus: cruise client portfolio Consolidated capability to acquire new clients and diversify product portfolio…. Today Luxury / Niche 2002 Upper Premium Premium Premium Contemporary Carnival brands Contemporary Norwegian Cruise Lines brands Royal Caribbean brands 8
Slide 9: Focus: cruise client portfolio
Focus: cruise client portfolio …while developing long-term partnerships and far-reaching visibility Delivered vessels Vessels in backlog (3) 2025 (1) 67 vessels delivered 9 2027 (2) 3 vessels delivered 10 2021 2 vessels delivered 2 2021 8 vessels delivered 3 2025 6 vessels delivered 8 2026 2 vessels
Slide 10: Key competitive strengths
Key competitive strengths Consolidated leadership, high diversification and flexible global production network Consolidated leadership in growing markets and long High diversification in terms of end market, geography 1 2 term visibility and client portfolio • Leader in fast-growing cruise market an
Slide 11: Ownership and Group structure
Ownership and Group structure A listed company with strong reference shareholders Brief description of the Group structure Simplified ownership and Group structure • Fincantieri shares are listed on the Milan Stock Exchange Italian Ministry Italian Banking Treasury Shares since July 3, 2014 of Econo
Slide 12: Key historical events
Key historical events Creation of an international leading player with a well diversified product portfolio 2002 2008 2010-2011 2013 2014 2017 2018 Business Plan 2018- Italian-French 2022 IPO shipbuilding alliance Diversification into Restructuring of Offshore • Presentation of a 5 Expansion in the
Slide 13: Key financials
Key financials Growing revenues and operating performance Revenues & EBITDA(1) / margin € mln -0.6% 6.0% 6.8% 7.6% 6,000 Revenues +31% (+9.4% CAGR) 5,474 1,000 5,020 5,000 900 4,429 4,183 800 4,000 700 600 3,000 500 400 2,000 300 414 200 1,000 341 267 100 0 0 (26) -100 FY 2015 FY 2016 FY 2017 FY 201
Slide 14: Financial overview
Section 2 Financial overview
Slide 15: 9M 2019 Key Messages
9M 2019 Key Messages Revenues up 10% and total backlog at € 32 bln with deliveries up to 2027 • Revenues up 9.7% at € 4.3 bln (€ 3.9 bln in 9M 2018) • EBITDA at € 287 mln (€ 281 mln in 9M 2018) and EBITDA margin at 6.7% (7.3% in 9M 2018): Shipbuilding +30.2% (despite negative contribution of Vard Cr
Slide 16: Ongoing strategic development
Ongoing strategic development • Building on the support of the French and Italian Governments, Fincantieri and Naval Group signed the Alliance Cooperation Agreement for the establishment of a 50/50 joint venture, a crucial step Defence industry towards the creation of a groundbreaking industrial All
Slide 17: Backlog ramp-up and conversion of soft backlog into backlog
Backlog ramp-up and conversion of soft backlog into backlog Order intake Total backlog(1) € mln € mln 4.5x 5.4x 5.2x 6.2x 2.4x 1.5x 1.7x 1.6x 3.8x 4.1x 4.4x 4.7x 33,824 10,087 8,617 8,300 8,554 26,153 24,031 4,100 6,505 18,721 5,800 3,000 25,524 22,053 5,800 18,231 5,000 15,721 4,100 3,000 FY 2015 F
Slide 18: 9M 2019 order intake and backlog: breakdown by segment
9M 2019 order intake and backlog: breakdown by segment Order intake Total backlog(1) € mln € mln 6.5 x 6.2 x 5.9 x 2.0 x 1.6 x 5.2 x 4.7 x 5.2 x 32,466 33,824 32,274 7,601 8,300 6,811 6,500 3,900 586 1,525 1,367 • Total order intake for the 869 424 1,638 836 94 1,087 987 quarter € 6.8 bln, mainly co
Slide 19: 9M 2019 backlog deployment: breakdown by segment and end market
9M 2019 backlog deployment: breakdown by segment and end market Shipbuilding Offshore & Specialized Vessels # ship deliveries(1) # ship deliveries(1) Cruise Naval(2) • 18 units delivered in 9M 2019 2019 5 3 8 2019 3 3 2019 10 8 18 and 96 ships in backlog • Cruise: 47 vessels − Deliveries up to 2027
Slide 20: 9M 2019 Revenues
9M 2019 Revenues Revenues breakdown by segment(1) € mln 4,254 3,878 3,878 12.5% 582 10.8% 458 10.8% 458 8.4% - 392 16 11.2% 475 19.3% 819 11 • Revenues up 9.7% vs 9M 2018 11 1,083 − Shipbuilding revenues up 11.1% 976 vs 9M 2018 976 79.1% 3,686 − Offshore & Specialized Vessels 78.0% 3,318 revenues do
Slide 21: 9M 2019 EBITDA
9M 2019 EBITDA EBITDA(1) and EBITDA margin € mln 6.7% 7.3% 7.3% 287 • EBITDA at € 287 mln, EBITDA margin at 6.7% (7.3% in 9M 2018) 281 281 9.5% 55 − Positive performance of the 11.4% 52 Shipbuilding (+30.2% vs 9M 11.4% 52 2018), despite the adverse contribution of Vard Cruise projects due to the rev
Slide 22: Balance Sheet and Capital Structure
Section 3 Balance Sheet and Capital Structure
Slide 23: Working capital dynamics
Working capital dynamics Indicative payment terms Illustrative phases of the shipbuilding process(1) Impact on net working capital Signing A First Cut B Launch C Delivery D Design / Project Hull Assembly and Outfitting and Development Pre-Outfitting Sea Trials • Increases during construction Cruise
Slide 24: Historical evolution of Net Working Capital and Net Financial Position
Historical evolution of Net Working Capital and Net Financial Position Net Working Capital(1) Net Financial Position(2) € mln 251 265 (120) 44 (438) (615) (314) (494) 2,841 2,660 2,376 2,393 757 426 368 432 (678) (624) (632) (263) (1,103) (453) (482) (485) (1,433) (1,889) (1,984) (601) (1,487) (264)
Slide 25: 9M 2019 Net working capital and Net Debt
9M 2019 Net working capital and Net Debt (1) Breakdown by main components € mln FY 2018 9M 2019 Inventories and advances to suppliers 863 • Net working capital and Net debt Work in progress net of dynamics mirror: advances from customers 881 1,399 − The increase in production volumes and cruise deli
Slide 26: Strategy & Outlook
Section 4 Strategy & Outlook
Slide 27: Growth strategy based on long term visibility, new horizons and markets
Growth strategy based on long term visibility, new horizons and markets, innovation and streamlined production Strong top line Greater efficiency and expansion and positive market consolidation as a momentum to drive a global champion in the structural increase in shipbuilding industry profitability
Slide 28: 9M 2019 Outlook
9M 2019 Outlook • Positive Group performance related to the propitious dynamics of cruise and naval projects across all geographies, limited by negative performance of Vard both in cruise and offshore • Efforts to align industrial management systems and economic planning of Vard to the best practice
Slide 29: Shipbuilding: quantifying main drivers of growth and increasing profitability
Shipbuilding: quantifying main drivers of growth and increasing profitability Cruise ships by delivery year: prototypes, sister ships and quasi-sister ships % Cruise: mix • Deliveries heavily skewed Sister ships prototypes/ and quasi- towards sister ships with sister ships and 80% 80% 80% sister shi
Slide 30: Appendix
Appendix FINCANTIERI The sea ahead | eel 30
Slide 31: VARD New organizational structure and segment review
VARD New organizational structure and segment review • Following the delisting of VARD, in December 2018, Offshore & Specialized Vessels Shipbuilding the full organizational integration with the Parent Company was launched, both for expedition cruise shipbuilding projects and the related shipyards,
Slide 32: Deep-dive: Vard
Deep – dive: Vard Ongoing integration and alignment to Group best practices What we did What we are working on Vard full integration process: Delisting of the subsidiary in December 2018 Change in management Additional efforts to align industrial management Operational reorganization of bo
Slide 33: STX France
STX France • In February 2018 Fincantieri(1) signed a share purchase agreement for the acquisition of 50% of STX France from the French State(2) • The signing follows the agreement between the Italian and French Governments to launch a joint process paving the way for the future creation of a progre
Slide 34: 9M 2019 main orders and main deliveries
9M 2019 main orders Segment Vessel Client # of ships Expected Delivery Oceania Cruises 2 2022-2025 Regent Seven Seas Cruises 1 2023 Cruise Ships Viking Cruises 2 2024-2025 Shipbuilding MSC Cruises 4 2023-2026 Princess Cruises 2 2023-2025 Littoral Combat Ship US Navy 1 2023 Offshore & Specialized Exp
Slide 35: Overview of financial performance indicators
Overview of financial performance indicators(1) € mln FY 2015 FY 2016 FY 2017 FY 2018 Order intake 10,087 6,505 8,554 8,617 Total backlog 18,721 24,031 26,153 33,824 Of which backlog 15,721 18,231 22,053 25,524 Of which soft backlog 3,000 5,800 4,100 8,300 Revenues 4,183 4,429 5,020 5,474 EBITDA (26
Slide 36: Financial performance: Revenues
Financial performance: Revenues Revenues(1) € mln 5,474 5,020 5,020 651 558 558 4,429 681 4,183 676 18 495 943 22 498 960 22 1,434 1,199 12 1,212 1,212 23 1,156 4,678 4,267 1,056 3,883 3,246 3,033 3,226 2,652 2,649 2,078 1,573 (166) (272) (364) (481) (536) (3) FY 2017 FY 2017 FY 2015 FY 2016 FY 2018
Slide 37: Financial performance: EBITDA
Financial performance: EBITDA EBITDA / margin(2) € mln -0.6% 6.0% 6.8% 6.8% 7.6% 414 11.2% 73 341 341 11.5% 64 11.5% 64 267 4.4% 42 6.1% 41 12.5% 62 5.3% 51 8.5% 395 6.9% 269 6.3% 270 5.7% 185 8.4% 42 -1.3% -2.9% (20) (34) (3) (31) (34) (34) -0.2% (34) (31) (4) FY 2017 FY 2017 - FY 2015 FY 2016 FY 2
Slide 38: Financial performance: EBIT and Net result
Financial performance: EBIT and Net result EBIT / margin Net result before extraordinary and non recurring items(1) € mln € mln 108 91 60 -3.3% 3.5% 4.4% 5.1% 95 111 66 (6) (4) (3) (141) (111) 277 FY 2015 FY 2016 FY 2017 FY 2018 221 157 of which Group of which minority interests Net result € mln (13
Slide 39: Capex: FY 2018
Capex: FY 2018 Capex evolution Capex by segment € mln € mln 3.8% 5.1% 3.2% 2.9% 224 20 224 8 161 31 163 161 80 163 13 13 161 161 10 27 9 18 37 31 7 6 39 55 165 144 120 124 122 124 107 108 (1) (1) FY 2015 FY 2016 FY 2017 FY 2018 FY 2015 FY 2016 FY 2017 FY 2018 Property, plant and equipment Intangible