Fincantieri S.p.a. · MIL:FCT
Fincantieri — Italian Sustainability Week 2021
37 slides from Fincantieri's conference presentation, Jun 30, 2021
Slide 1: Italian Sustainability Week 2021 - Borsa Italiana
FINCANTIERI I TA L I A N S U S TA I N A B I L I T Y W E E K 2 0 2 1 B O R S A I TA L I A N A 30th June 2021 www.fincantieri.com
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 SECTION 2 SECTION 3 SECTION 4 DESCRIPTION FINANCIAL S T R AT E G Y OF THE GROUP OVERVIEW S U S TA I N A B I L I T Y & 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 49% of our employees are based in Italy and 87% of revenues come from international clients(1) • ~ € 5.9 bn Revenues in FY2020, OUR 87% of which come from FIGURES international clients • € 34.4 bn Total Backlog(2,3) • 18 shipyar
Slide 6: Products, clients and backlog
Products, clients and backlog One of the most diversified product portfolio in the world combined with a wide client base and a strong backlog Main products Key clients Revenues 2020(1) Backlog(2) (4) (5) Cruise • All cruise ships: Luxury/Niche(3) €3,281 m Upper Premium Premium 50.1% Contemp
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 • A successful rollout of vaccination campaigns will be key to industry recovery • World leader in the design and construction of • Significant impa
Slide 8: Key competitive strengths
Key competitive strengths Consolidated leadership, high diversification and flexible global production network 1. 2. Consolidated leadership in diversified High diversification in terms of end markets and sizeable backlog market, geography and client portfolio • Leader in cruise market and in naval
Slide 9: Ownership and Group structure
Ownership and Group structure A listed company with strong reference shareholders Simplified ownership and Group structure Italian Ministry Italian Banking Treasury Shares of Economy and Finance Foundations • Fincantieri shares are listed on the Milan Stock Exchange since July 3, 2014 82.77% 15.93%
Slide 10: Financial Overview
SECTION 2 FINANCIAL OVERVIEW
Slide 11: Executive summary
Executive summary Year-end guidance confirmed, increased revenues and profitability in 1Q 2021 Year-end targets confirmed Guidance for 2021 confirmed: revenues excluding pass-through activities +25%-30%, EBITDA margin at 7%, and net financial position flat YoY. First quarter performance confirms t
Slide 12: Business update
Business update Leveraging our core competencies, while expanding our strategic capabilities… Delivery schedule carried on as expected CRUISE Viking Venus, the first out of five cruise ships to be delivered from Italian shipyards this year, was successfully handed over to Viking on April 15th in
Slide 13: Business update
Business update …and gearing up to become a key player within the missions set by the Recovery Plan D I G I TAL Cloud computing: A cooperation agreement was signed with Amazon Web Services to accelerate digital innovation and T R A N S F O R M AT I O N technological development at national level,
Slide 14: Backlog deployment
Backlog deployment Fully preserved order backlog with visibility stretching up to 2029 in Naval Shipbuilding Offshore & Specialized Vessels # ship deliveries # ship deliveries CRUISE 2021 7 NAVAL 2021 1 7 8 2021 1 3 4 2022 8 2022 9 2022 11 2023 9 2023 5 2023 5 3 8 2024 5 2024 6 2024 1 2025 5 2025 5
Slide 15: Order intake and backlog
Order intake and backlog Order intake is still limited but long-term visibility is confirmed Order intake breakdown by segment Total backlog breakdown by segment(1) € mln € mln 5.5x 6.1x 6.6x 0.2x 0.2x 4.7x 4.7x 5.1x 35.681 34.436 Limited order intake in 31.878 Shipbuilding with a wait-and-see 7.9
Slide 16: Revenues
Revenues Top-line growth on the right track: full swing of production programmes driving revenues up 9.1% YoY Revenues breakdown by segment(1) € mln 1.648 232 1.426 1.307 Revenues excluding pass-through activities up 96 232 205 96 9.1% YoY thanks to resumption of operations 126 574 and full swing of
Slide 17: EBITDA
EBITDA Operating profitability at 7.0% is in line with 4Q 2020 performance and 2021 guidance EBITDA breakdown by segment(1) € mln Significantly improved profitability on track with previous quarter positive 5.5% 6.1% 7.0% performance and guidance for 2021 Shipbuilding up 39% YoY with 101 101 margi
Slide 18: Net working capital and net financial position
Net working capital and net financial position NWC and net debt increase are consistent with the delivery schedule: deleveraging expected by year-end Net Working Capital breakdown by component Net Financial Position € mln € mln 904 881 2.775 1.963 602 580 111 51 Net debt mirrors net working capita
Slide 19: Sustainability
SECTION 3 m SUSTAINABILITY FINCANTIERI The sea ahead
Slide 20: Cruising to sustainability: a long term commitment
Cruising to sustainability: a long term commitment that is driving our business Our attention to sustainability is rooted at the very core of our business – however, in the last 5 years we formalized our commitment with a fast-paced governance evolution 2016 • Fincantieri's Board of Directors establ
Slide 21: First Group Sustainability Plan approved in 2018
Plan ahead: in 2018 the BoD approved the first Group Sustainability Plan 45 Objectives Environmental 24 Commitments Social 15 Material topics Governance 4 Pillars of the Business Plan 21
Slide 22: Focus on our Environmental strategy and main commitments
Focus on our Environmental strategy and main commitments COMMITMENTS TO REDUCE COMMITMENTS TO REDUCE TARGET TARGET IMPACT ON THE ENVIRONMENT IMPACT ON OUR PROUCTS • Tackling climate change through the 50% reduction of Scope 2 GHG • Development of ecologically Develop technologies to reduction of
Slide 23: Environmental KPIs
Environmental KPIs GHG emissions Renewable electricity Scope 1 Scope 2 Scope 3 96,610 tCO2e from non-renewable sources 2019 665,098 tCO2e 16% 72,925 tCO2e 79,875 tCO2e 2020 494,571 tCO2e 84% from renewable sources 19,995 tCO2e Total electricity 2020 100% in Italian, Romanian Total GHG emissions 2020
Slide 24: Focus on our main social commitments
Focus on our main social commitments COMMITMENTS TO OUR COMMITMENTS TO OUR TARGET TARGET EMPLOYEES CLIENTS • Promotion of growth, training, and Keep the percentage of hires of under-35s • Listen to needs and Develop a Customer enhancement of human capital above 40% of all new hires per year in I
Slide 25: Social KPIs
Social KPIs Diversity and equal opportunity Health & safety Total employees % employee - women Severity index Injury rate/frequency rate 2019 19,823 2019 13% 2019 0,21 2019 10.9 +2% +10% -18% 2020 20,150 2020 14% 2020 0,23 2020 9.0 no. of days lost due to injury / hours worked x 1,000 no. of injurie
Slide 26: Focus on the COVID-19 emergency
Focus on the COVID-19 emergency CLIENTS EMPLOYEES Fully preserved backlog Extraordinary safety measures including an Emergency steering committee, prompt No order cancellations and redefinition of delivery schedule suspension of operations and social thanks to constant dialogue with shipowners dista
Slide 27: Focus on our main Governance topics
Focus on our main Governance topics OUR COMMITMENTS TO OUR COMMITMENTS TO GOVERNANCE AND BUSINESS TARGET TARGET SUSTAINABLE SUPPLY CHAIN ETHICS • Promotion of a sustainability • Over 15% of the addressable • Promotion and support of a • Organize workshops culture in line with the Group’s workforce h
Slide 28: Governance KPIs
Governance KPIs Variable remuneration Research & Innovation of MBO Plan recipients 23.2% received at least one sustainability target 5 PILLARS Anticorruption OF RESEARCH AND In 2020 Fincantieri S.p.A. obtained ISO 37001 certification for its anticorruption management systems INNOVATION Sustainable s
Slide 29: Our commitment to sustainability is internationally recognized
Our commitment to sustainability is internationally recognized RATINGS 2016: Fincantieri joined the CDP, addressing the challenges of climate change and limiting its impact through eco-sustainable behaviour. CDP provides investors with information on environmental strategies and performances of co
Slide 30: Strategy & Outlook
SECTION 4 m STRATEGY & OUTLOOK FINCANTIERI The sea ahead
Slide 31: 2021 Company outlook
2021 Company outlook In the US, the CDC may reportedly be open to lift or modify the Conditional Sailing Order - in Europe cruise operations are about to be resumed starting from late spring/early summer Strong 2022 booking volumes for cruises are ahead of pre COVID-19 levels and are driven by p
Slide 32: Appendix
APPENDIX FINCANTIERI The sea ahead
Slide 33: Overview of financial performance indicators
Overview of financial performance indicators(1) € mln FY 2017(2) FY 2018(2) FY 2019(2) FY 2020 Order intake 8,554 8,617 8,692 4,526 Total backlog 26,153 33,824 32,690 35,681 Of which backlog 22,053 25,524 28,590 27,781 Of which soft backlog 4,100 8,300 4,100 7,900 Revenues 5,020 5,416 5,849 5,879 EB
Slide 34: Financial performance: Historical revenues
Financial performance: Historical revenues Revenues breakdown by segment(1) € mln 5.879 5.849 5.416 937 5.020 899 651 327 389 558 11 7 623 676 18 22 1.503 1.938 1.434 1.212 5.145 5.226 4.678 4.267 3.631 3.033 3.226 3.281 (481) (536) (522) (673) FY 2017(2) FY 2018(2) FY 2019(2) FY 2020 Shipbuilding O
Slide 35: Financial performance: EBITDA
Financial performance: EBITDA EBITDA breakdown by segment(1)/margin(2) € mln 6.8% 7.8% 5.5% 5.3% 421 320 11.2% 73 341 10.0% 90 314 11.5% 64 8.1% 76 6.1% 41 8.5% 395 7.2% 368 6.3% 5.4% 285 270 (34) -2.1% (13) -1.3% (5) (34) -30.4% (42) (99) (39) FY 2017(3) FY 2018(3) FY 2019(3) FY 2020 Shipbuilding O
Slide 36: Financial performance: historical EBIT and Net result
Financial performance: historical EBIT and Net result EBIT / margin Net result before extraordinary and non recurring items(1) € mln € mln 114 91 4.4% 5.3% 2.6% 2.5% 117 95 (4) (3) (37) (64) (5) (7) (42) (71) FY 2017 FY 2018 FY 2019 FY 2020 of which Group of which minority interests Net result € mln
Slide 37: Capex: historical trend
Capex: historical trend Capex evolution Capex by segment € mln € mln 3.2% 2.9% 4.8% 5.3% 309 309 279 24 279 21 32 30 3 77 61 6 163 161 163 161 13 27 18 55 37 9 7 6 250 232 222 218 124 120 124 108 FY 2017 FY 2018 FY 2019 FY 2020 FY 2017 FY 2018 FY 2019 FY 2020 Property, plant and equipment Intangible