Fincantieri S.p.a. · MIL:FCT
Fincantieri — Q1 2022 Earnings Presentation
27 slides from Fincantieri's earnings presentation, May 6, 2022
Slide 1: 1Q 2022 Results
1Q 2022 R ESULTS May 6, 2022 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: Agenda
Agenda E X E C U T I V E 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
Slide 4: Executive Summary & Business Update
E XECUTIVE S UMMARY & B USINESS U PDATE
Slide 5: Executive summary
Executive summary Revenues up by 17.8% and EBITDA +17.2%. Backlog at €34.4 bn Revenues (€ mln) ▪ Total backlog with 111 units at €34.4 bn, 5.2x 2021 revenues: backlog with 93 units at 1,681 REVENUES +17.8% YOY €24.8 bn and soft backlog at €9.6 bn 1,426 ▪ Order intake at €0.5 bn 1Q21 1Q22 EBITDA (€ m
Slide 6: Business update
Business update Positive business operating performance across all segments SHIPBUILDING ▪ Successfully delivered Discovery Princess, the sixth unit of the Royal class, for Princess Cruises, a Carnival Group brand ▪ Program for the Qatari Ministry of Defence: - delivery of the first Offshore Patrol
Slide 7: Strategic ESG initiatives
Strategic ESG initiatives Fully committed to guarantee the highest environmental, social and governance standards D E C A R B O N I Z AT I O N & I N N O VAT I O N O UR P EOPLE & O UR COMMUNITIES ▪ ENEA: MoU to develop R&I program regarding energy efficiency, renewable ▪ Fincantieri’s subsidiary VARD
Slide 8: ESG ratings and awards
ESG ratings and awards Tireless effort to become a model of excellence acknowledged at the international level Ratings Awards CDP In 2021 Fincantieri was awarded with the A- score (scale from A to D) for its UNIVERSUM commitment and transparency in fighting climate change Fincantieri ranked as Italy
Slide 9: Main deliveries & New orders
Main deliveries & New orders 5 vessels delivered and 7 ships ordered in 1Q 2022 5 deliveries ◼ Cruise #1 ◼ Naval #2 ◼ Offshore #2 ORDER INTAKE at 0.5 bn o/w 7 Offshore ships ordered Cruise – Italy ◼ Offshore #7delivery Exp. Discovery Princess (Princess Cruises) 6 Marine Robotic Vessels 2025 (Ocean I
Slide 10: Backlog deployment
Backlog deployment Well-balanced visibility both in Cruise and Naval, 7 new orders in Offshore and Specialized Vessels Shipbuilding Offshore & Specialized Vessels # ship deliveries # ship deliveries CRUISE 2022 1 7 NAVAL 2022 2 8 OSV 2022 2 8 28 VESSELS 34 VESSELS 31 VESSELS1 2023 7 2023 7 2023 14 I
Slide 11: Financial Results
FINANCIAL RESULTS FINCANTIERI The sea ahead
Slide 12: Order intake and backlog
Order intake and backlog Positive order intake with a solid contribution of ESS and Offshore. Sustained backlog and a robust soft backlog in line with 1Q 2021 Order intake breakdown by segment Total backlog breakdown by segment1 € mln € mln ▪ Order intake at €0.5 bn, driven mainly by 0.2x 0.3x 6.6x
Slide 13: Revenues
Revenues Revenues up 17.8%, with positive contribution across all segments Revenues breakdown by segment1 € mln +17.8% Revenues up 17.8% YoY with positive contribution across all segments 1,681 ▪ Shipbuilding up 6.0% YoY, mainly thanks to 1,426 Naval, accounting for 22.8% of total revenues 359 274 1
Slide 14: EBITDA
EBITDA EBITDA at €118 mln (+17.2%) with an EBITDA margin at 7.0% EBITDA breakdown by segment1 € mln EBITDA margin at 7.0% mainly thanks to the positive contribution from Shipbuilding, despite the 7.0% 7.0% impact from increased commodities’ prices +17.2% ▪ Shipbuilding EBITDA is up €12 mln YoY with
Slide 15: EBITDA growth
EBITDA growth Better operating margin thanks to higher production volumes and improved margins EBITDA breakdown by segment ▪ Shipbuilding: EBITDA improvement driven by higher production volumes and operating margins ▪ Offshore and Specialized Vessels: increased EBITDA thanks to positive production v
Slide 16: Capex
Capex Investments underpinning further efficiencies in engineering and production processes Capex by segment € mln 4.6% 3.2% ▪ Capex at €53 mln to support further efficiencies to address new production scenarios ▪ Upgrade of Marghera and Monfalcone shipyards along 66 with US and Italian naval sites
Slide 17: Net working capital and net financial position
Net working capital and net financial position NFP broadly in line with FY 2021. Construction loans consistent with 2022 delivery schedule Net Working Capital breakdown by component Net Financial Position(1) € mln € mln ▪ Net financial position at €940 mln 910 consistent with production volumes and
Slide 18: Outlook
OUTLOOK FINCANTIERI The sea ahead
Slide 19: Focus on core business
Focus on core business Competitive positioning confirmed. Cruise full recovery expected in 2023. Naval likely to benefit from higher defence budget. ▪ The U.S. Centers for Disease Control and Prevention (CDC) has dropped cruise travel warning after two years and Australia lifted cruise ban too from
Slide 20: Investor Relations contacts
Investor Relations contacts I N V E S TO R R E L AT I O N S T E A M Paola Dimario +39 040 319 2279 paola.dimario@fincantieri.it Caterina Venier-Romano +39 040 319 2229 caterina.venierromano@fincantieri.it Martina Saiu +39 040 319 2672 martina.saiu@fincantieri.it INSTITUTIONAL INVESTORS investor.rela
Slide 21: Q&A
Q&A FINCANTIERI The sea ahead
Slide 22: Appendix
APPENDIX FINCANTIERI The sea ahead
Slide 23: Financial overview – Shipbuilding
Financial overview – Shipbuilding Orders, backlog and deliveries Revenues EBITDA Capex € mln € mln € mln ▪ Orders: €77 mln (€99 mln in 1Q 2021) ▪ Backlog: €21,018 mln (€24,681 mln in 1,255 1,330 7.8% 8.3% 1Q 2021) ▪ Deliveries: 352 427 - Discovery Princess for Princess Cruises 903 903 98 110 - OPV M
Slide 24: Financial overview – Offshore & Specialized Vessels
Financial overview – Offshore & Specialized Vessels Orders, backlog and deliveries Revenues EBITDA Capex € mln € mln € mln ▪ Orders: €291 mln (€142 mln in 1Q 2021) - 6 marine robotic vessels for Ocean Infinity 1.3% 3.2% - 1 fishery for Deutsche Fischfang - Union ▪ Backlog: €1,148 mln (€944 mln in 1Q
Slide 25: Financial overview – Equipment, Systems & Services
Financial overview – Equipment, Systems & Services Orders, backlog and deliveries Revenues EBITDA Capex € mln € mln € mln ▪ Orders: €309 mln (vs €153 in 1Q 2021) ▪ Backlog: €3,616 mln vs € 1,862 mln in 4.7% 3.6% 1Q 2021 359 274 13 13 13 8 1Q 2021 1Q 2022 1Q 2021 1Q 2022 1Q 2021 1Q 2022 EBITDA Margin
Slide 26: Glossary
Glossary Book-to-bill ratio Order intake/revenues Construction loans Committed working capital financing facilities, treated as part of Net working capital, not in Net debt, as they are not general purpose loans and can be a source of financing only in connection with ship contracts EBITDA Earnings
Slide 27: Glossary
Glossary Net working capital Capital employed in ordinary operations which includes Inventories and advances, risks and charges, and Other current assets and liabilities (including Income tax assets, Income tax liabilities, Deferred tax assets and Deferred tax liabilities, as well as the fair value