Fincantieri S.p.a. · MIL:FCT

Fincantieri — H1 2021 Earnings Presentation

29 slides from Fincantieri's earnings presentation, Jul 30, 2021

  1. Slide 1: 1H 2021 Results

    1H 2021 R ESULTS July 30, 2021 www.fincantieri.com

  2. 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

  3. Slide 3: Agenda

    Agenda S U M M A R Y & B U S I N E S S U P D AT E F I N A N C I A L R E S U LT S OUTLOOK APPENDIX

  4. Slide 4: Summary & Business Update

    SUMMARY & BUSINESS UPDATE FINCANTIERI The sea ahead

  5. Slide 5: Executive summary

    Executive summary Back to profitability: revenues up 28%, EBITDA +84%, adjusted net income €49 mln, guidance confirmed Revenues (€ mln) 3,251 REVENUES EXCLUDING PASS-THROUGH  Confirmed guidance on FY 2021 with revenues expected to reach more than +25% 3,026 2,369 ACTIVITIES +28% YOY YoY and EBITDA

  6. Slide 6: Business update

    Business update Continuous focus on strategic development C RUISE  5 cruise ships successfully delivered, out of which 3 in July: Viking Venus to Viking Cruises (April), Hanseatic Spirit to Hapag-Lloyd (June), Valiant Lady to Virgin Voyages (July), MSC Seashore to MSC (July), and Rotterdam to Holla

  7. Slide 7: Key strategic initiatives

    Key strategic initiatives Seizing future opportunities alongside our strategic partners E COLOGICAL S U S TAI N AB L E I NDUSTRIAL TRANSITION MOBILITY A U T O M AT I O N  Letter of Intent with Enel X to build and run  Fincantieri NexTech: agreement with  LoI with Comau to develop prototypes of ne

  8. Slide 8: Update on ESG

    Update on ESG Our sustainability strategy responds to our mission of representing a global model of excellence E NVIRONMENTAL S OCIAL G OVERNANCE R AT I N G S & AWA R D S T A C K L I N G C L I M AT E PROTECTING OUR P ROMOTING AN EFFECTIVE SPOTLIGHT ON CHANGE P E O P L E ’ S H E ALT H & TAX R I S K C

  9. Slide 9: New orders and main deliveries

    New orders New orders received across all segments with a cumulative value of €1.7 bn Segment Vessel Client Expected Delivery  Shipbuilding FFG-62 frigate(1) US Navy - Somnio(1) Somnio Superyachts 2024  Offshore & 3 Service Operation Vessels North Star Renewables 2023 Specialized Vessels Main deli

  10. Slide 10: Backlog deployment

    Backlog deployment Well-balanced visibility both in Cruise and Naval, 3 new orders in Offshore and Specialized Vessels Shipbuilding Offshore & Specialized Vessels # ship deliveries # ship deliveries CRUISE 2021 2 6 8 NAVAL 2021 3 5 8 OSV 2021 2 2 4 35 VESSELS 2022 7 36 VESSELS 2022 9 22 VESSELS 2022

  11. Slide 11: Financial Results

    FINANCIAL RESULTS FINCANTIERI The sea ahead

  12. Slide 12: Order intake and backlog

    Order intake and backlog Sizeable order intake in ESS and hefty soft backlog Order intake breakdown by segment Total backlog breakdown by segment(1) € mln € mln 0.7x 0.6x 6.5x 6.1x 7.1x 37,912 37,012 35,681  Stable order intake at €1.8 bn, thanks to the positive impact of 9,900 9,400 ESS 1,753 7,90

  13. Slide 13: Revenues

    Revenues Record-high production volumes in shipbuilding drive robust revenue performance in line with guidance on 2021 Revenues breakdown by segment(1) € mln +27.7% 3,251 3,026 481 Revenues excluding pass-through activities 220 481 2,369 are up 27.7% YoY thanks to record-high 220 production volumes

  14. Slide 14: EBITDA

    EBITDA Better operating margin thanks to higher production volumes and marginality despite higher steel prices EBITDA breakdown by segment(1) € mln +84.0% EBITDA margin at 7.2% excluding 5.0% 7.2% pass-through activities mainly thanks 6.7% to the positive contribution from 219 219 Shipbuilding despi

  15. Slide 15: EBITDA growth

    EBITDA growth Better operating margin thanks to higher production volumes and improved marginality EBITDA breakdown by segment(1)  Shipbuilding: EBITDA improvement mainly driven by higher production volumes and improved operating margin  Offshore and Specialized Vessels: increased operating profit

  16. Slide 16: Net result

    Net result Back on track towards profitability despite €42 mln extraordinary items weighting on the bottom line 1H 2021 net result and adjusted net result(1) € mln Profit/(loss) COVID-19 Asbestos related Other Tax effect Adjusted  Adjusted net profit at €49 mln (€49 extraordinaries litigations extr

  17. Slide 17: Capex

    Capex Investments aimed at strenghtening our execution capabilities at global level Capex by segment € mln 5.2% 5.3% 160 11  Scale up of European and US % of Revenues 12 shipyards in order to compress lead 122 2 times and improve efficiency,  Other activities 16 including completion of the upgrade

  18. Slide 18: Net working capital and net financial position

    Net working capital and net financial position With 6 cruise ships being delivered in 2H, cash-in is skewed towards the second half of the year Net Working Capital breakdown by component Net Financial Position breakdown by component(1) € mln € mln 826 881 1,666 96 1,963 76 131  Net debt dynamics ar

  19. Slide 19: Outlook

    OUTLOOK FINCANTIERI The sea ahead

  20. Slide 20: Update on cruise

    Update on cruise 141 ocean ships should enter service by the end of July with 50 brands already operating at global level  From May 2021 Europe has pioneered the cruise restart on national routes and with enhanced safety protocols  In the UK, the cruise ban was lifted on 17 May. Domestic cruises a

  21. Slide 21: Business outlook

    Business outlook Confirmed FY 2021 guidance despite increasing steal prices  FY 2021 revenues expected at above +25% YoY and REVENUES EBITDA margin 7.0% despite increasing trend in  Net debt at €1.2 bn as of July 2021 (3 cruise ships & commodity prices NET delivered in July with cumulative cash-in

  22. Slide 22: Investor Relations contacts

    Investor Relations contacts I N V E S T O R R E L AT I O N S T E A M Caterina Venier-Romano +39 040 319 2229 caterina.venierromano@fincantieri.it Valentina Fantigrossi +39 040 319 2243 valentina.fantigrossi@fincantieri.it Martina Saiu martina.saiu@fincantieri.it INSTITUTIONAL INVESTORS investor.rela

  23. Slide 23: Q&A

    Q&A FINCANTIERI The sea ahead

  24. Slide 24: Appendix

    APPENDIX FINCANTIERI The sea ahead

  25. Slide 25: Financial overview – Shipbuilding

    Financial overview – Shipbuilding Orders, backlog and deliveries Revenues EBITDA Capex € mln € mln € mln 5.7% 7.1% 7.7%  Orders: €1,080 mln (€1,364 mln in 1,014 789 1H 2021) 527 - Residential yacht Somnio 2,916 2,691 - Second Constellation-class 2,031 1,902 1,902 206 206 135 frigate to the US Navy

  26. Slide 26: Financial overview – Offshore & Specialized Vessels

    Financial overview – Offshore & Specialized Vessels Orders, backlog and deliveries Revenues EBITDA Capex € mln € mln € mln  Orders: €174 mln (€164 mln in 1H -0.4% 1.9% 2020)  Backlog: €879 mln (€744 mln in 228 220 1H 2020) 4 1H 2020 2 2  Deliveries(1): 1H 2020 1H 2021 (1) 1H 2021 1H 2020 1H 2021

  27. Slide 27: Financial overview – Equipment, Systems & Services

    Financial overview – Equipment, Systems & Services Orders, backlog and deliveries Revenues EBITDA Capex € mln € mln € mln 6.0% 6.6%  Orders: €481 mln including new MSC cruise terminal at PortMiami (vs €392 mln in 1H 2020) 481  Backlog: €3,606 mln vs €1,951 392 32 12 12 24 mln in 1H 2020 1H 2020 1H

  28. Slide 28: Financial overview – Profit & Loss and Cash flow statement

    Financial overview – Profit & Loss and Cash flow statement € mln 1H 2020 1H 2021 1H 2021 – ex pass through Revenues 2,369 3,251 3,026 Materials, services and other costs (1,810) (2,472) (2,247) Personnel costs (432) (546) (546) Provisions (8) (14) (14) EBITDA 119 219 219 Depreciation, amortization a

  29. Slide 29: Financial overview – Balance sheet

    Financial overview – Balance sheet € mln FY 2020 1H 2021 Intangible assets 629 628 Right-of-use asset 85 106 Property, plant and equipment 1,301 1,390 Investments 105 119 Other non-current assets and liabilities (25) (25) Employee benefits (60) (60) Net fixed assets 2,035 2,158 Inventories and advan

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