Fincantieri S.p.a. · MIL:FCT
Fincantieri — Non-Deal Roadshow (May 2015)
29 slides from Fincantieri's roadshow presentation, May 21, 2015
Slide 1: Update post Q1 2015 Results
FINCANTIERI Update post Q1 2015 Results Paris, 21 May 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: Fincantieri speakers
Fincantieri speakers Giuseppe Dado • Chief Financial Officer of FINCANTIERI (since 2014) • Former Vice President Group Treasury and Corporate Finance of Chief Financial Officer FINCANTIERI (2008 - 2014) • Former Permasteelisa, Ernst & Young and Electrolux Luca Passa • Vice President Investor Relatio
Slide 4: Table of Contents
Table of Contents Section 1 Introduction Section 2 Financial performance Section 3 Working capital, Net financial position and key ratios Q&A Royal Princess Princess Cruises 1° cruise ship fully compliant with the new safety and environmental rules
Slide 5: Introduction
Section 1 Introduction Littoral Combat Ship "Freedom" US Navy World's fastest steel frigate
Slide 6: Fincantieri at a glance
Fincantieri at a glance #1 Western designer & shipbuilder(1) with 230 years of history & >7,000 ships built Norway • 5 shipyards €4,399 MM revenues 21 shipyards Romania • 2 shipyards UAE • 1 Joint Venture 4 continents €297 MM EBITDA USA Vietnam 13 countries • 3 shipyards • 1 shipyard Brazil Italy ~€
Slide 7: Products and end-markets
Products and end-markets = Key area SHIPBUILDING EQUIPMENT, OFFSHORE SYSTEMS Cruise Naval Others & SERVICES Leisure Defence Transportation / Oil & Gas Equipment / Luxury / Life Cycle Management End Maintenance markets • All cruise ships • All surface vessels • High tech ferries • Offshore Support •
Slide 8: Track record, top clients and technological leadership
Track record, top clients and technological leadership SHIPBUILDING OFFSHORE Cruise Naval • Since 1990 69 • Since 1990 96(2) • Since 1990 344(3) Track record • Since 2002 46 • Since 2002 45(2) • Since 2002 272(3) ships deliveries(1) • 2014 2 • 2014 4(2) • 2014 18 • Q1 2015 2 • Q1 2015 -(2) • Q1 2015
Slide 9: Financial performance
Section 2 Financial performance AMC Connector AMC Connector / Ezra World’s largest cable layer
Slide 10: Overview of financial performance indicators
Overview of financial performance indicators(1) € MM FY 2013(2) FY 2014 Q1 2014 Q1 2015 Order intake 4,998 5,639 1,707 85 Backlog 8,068 9,814 8,809 8,992 Revenues 3,811 4,399 923 1,110 EBITDA 298 297 66 59 As a % of revenues 7.8% 6.8% 7.1% 5.3% EBIT 209 198 42 33 As a % of revenues 5.5% 4.5% 4.5% 2.
Slide 11: Order intake and backlog
Order intake and backlog Order Intake Backlog(1) € MM € BN (33) 205 FY 2013 3,010 1,816 4,998 1.3x Soft Soft backlog backlog € 9.2 BN (96) 204 € 5.0 BN FY 2014 4,400 1,131 5,639 1.3x 9,814 3% 8,992 300 3% (38) 79 284 22% 2,124 20% 1,790 Q1 2014 1,004 662 1,707 76% 7,465 78% 6,982 (15) 25 Q1 2015 45
Slide 12: Backlog deployment
Backlog deployment Shipbuilding Offshore # ships deliveries(1) # ships deliveries Cruise Naval(2) Q1 2015 2 Q1 2015 Q1 2015 5 (3) (4) 2015 3 2015 7 2015 17 2016 5 2016 9 2016 17 2017 5 2017 6 2017 3 2018 4 2018 3 2018 2019 2019 1 2019 • Visibility of deliveries to 2018 • Deliveries of FREMM units up
Slide 13: Financial performance
Financial performance Revenues(1) EBITDA / margins(2) € MM € MM 4,399 7.8% 6.8% 3,811 192 298 297 163 1,580 8.5% 14 11.1% 21 1,321 11.8% 6.8% 108 206 155 193 1,059 1,126 2,394 2,704 6.5% 7.2% 195 1,439 155 1,075 (67) (77) (26) (27) FY 2013 FY 2014 FY 2013 FY 2014 1,110 7.1% 5.3% 923 41 66 59 37 330
Slide 14: Financial performance
Financial performance EBIT / margins Net Income before extraordinary and non recurring items(1) € MM € MM 5.5% 4.5% 137 28 87 Breakeven result 209 198 attributable to the 109 99 Group 16 5 11 0 (12) (21) FY 2013 FY 2014 FY 2013 FY 2014 Q1 2014 (21) of which Group of which minority interests Q1 2015
Slide 15: Capex
Capex Capex evolution FY 2014 Capex by segment € MM 7% 3% 6.7% 3.7% 255 29% € 162 MM 61% 37 162 3.0% 2.6% Q1 2015 Capex by segment 38 3% 4% 218 24% 124 27 29 € 29 MM 4 6 69% 23 23 (1) FY 2013 FY 2014 Q1 2014 Q1 2015 Shipbuilding Property, plant and equipment Intangible assets % of Revenues Offshore
Slide 16: Working capital, Net financial position and key ratios
Section 3 Working capital, Net financial position and key ratios Serene Private owner 2012 World Super Yacht Award (134 meters)
Slide 17: Working capital dynamics
Working capital dynamics Indicative payment terms Main 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 Duration
Slide 18: Net working capital
Net working capital(1) Breakdown by main components € MM FY 2013 FY 2014 Q1 2015 388 439 Inventories and advances 400 1,112 1,217 Work in progress net of advances from customers 757 Trade receivables 344 610 539 Other current assets and liabilities 57 (18) (186) (563) Construction loans (847) (859)
Slide 19: Net financial position
Net financial position(1) Breakdown by main components € MM – Net cash / (Net debt) FY 2013 FY 2014 Q1 2015 92 Non-current financial receivables 90 62 82 Current financial receivables 41 52 643 552 Cash & cash equivalents 385 Short term financial liabilities (70) (80) (103) Long term financial liabi
Slide 20: Key financial ratios
Key financial ratios Profitability ratios Debt ratios ROI(1) (EBIT / Net invested capital) Net debt / EBITDA € MM 155 (44) 417 (81) 15.3% 13.9% 13.1% 12.1% 1.4x 0.5x Net Cash Net cash FY 2013 FY 2014 Q1 2014 Q1 2015 FY 2013 FY 2014 Q1 2014 Q1 2015 = Net debt or (Net cash) ROE(1) (Net income / Equity
Slide 21: Q&A
Q&A Frigates Fremm Class Italian Navy ART 17 Azimuthal Retractable Thruster
Slide 22: Appendix: Q1 2015 results by segment
Appendix Q1 2015 results by segment Amerigo Vespucci Italian Navy One of the most ancient training ships
Slide 23: Shipbuilding
Shipbuilding Highlights Comments € MM Q1 2014 Q1 2015 • Orders: weak order intake at € 45 MM, Order intake 1,004 45 mainly related to ship repairs Backlog 5,935 6,982 ‒ Agreement with Carnival for 5 next- Revenues 571 754 generation cruise ships, included in soft backlog EBITDA 36 46 • Revenues: at
Slide 24: Offshore
Offshore Highlights Comments € MM Q1 2014 Q1 2015 • Orders: weak order intake at € 30 MM, Order intake 662 30 due to a persistently challenging market Backlog 2,616 1,790 environment Revenues 322 330 • Revenues: at € 330 MM up 2% vs. Q1 EBITDA 32 16 2014 despite the negative effect of NOK/EUR exchan
Slide 25: Equipment, Systems and Services
Equipment, Systems and Services Highlights Comments € MM Q1 2014 Q1 2015 • Orders: order intake at € 25 MM taking Order intake 79 25 backlog at € 284 MM Backlog 315 284 • Revenues: up to € 41 MM, mainly due to Revenues 37 41 the increase of volumes in after sale EBITDA 4 4 services for naval vessels
Slide 26: Financial Appendix
Financial Appendix Destriero World record for the fastest crossing of the Atlantic Ocean without refueling (58 hours at an average speed of 53.1 knots)
Slide 27: Profit & Loss and Cash flow statement
Profit & Loss and Cash flow statement Profit & Loss statement (€ MM) FY 2013(1) FY 2014 Q1 2014 Q1 2015 Revenues 3,811 4,399 923 1,110 Materials, services and other costs (2,745) (3,234) (656) (818) Personnel costs (752) (843) (197) (237) Provisions and impairment losses (16) (25) (4) 4 EBITDA 298 2
Slide 28: Net income before extraordinary and non recurring items
Net income before extraordinary and non recurring items(1) Net income before extraordinary and non recurring items (€ MM) FY 2013(2) FY 2014 Q1 2014 Q1 2015 A Net profit/(loss) for the year 85 55 10 (27) B Extraordinary and non recurring items gross of tax effect 80 44 8 8 ̶ Of which extraordinary w
Slide 29: Balance sheet
Balance sheet Balance sheet (€ MM) FY 2013 FY 2014 Q1 2015 Intangible assets 539 508 533 Property, plant and equipment 897 959 970 Equity investments 70 60 63 Other non current assets and liabilities (14) (48) (42) Employee indemnity benefit (60) (62) (61) Net fixed capital 1,432 1,417 1,463 Invento