Fincantieri S.p.a. · MIL:FCT
Fincantieri — H1 2020 Earnings Presentation
25 slides from Fincantieri's earnings presentation, Jul 31, 2020
Slide 1: 1H 2020 Results
“ 1H 2020 RESULTS July 31, 2020 FINCANTIERI The sea ahead
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: 1H 2020 Key Messages
1H 2020 Key Messages No order cancellation and record-high total backlog up to almost €38 bln • No cancelled orders thanks to effective backlog preservation strategy • Slowdown of the production schedule and postponement of deliveries has impacted revenues COVID-19 (-15.6% YoY) update • 3 cruise shi
Slide 4: Key Messages: Continuing focus on strategic developments
Key Messages Continuing focus on strategic developments • FMM prime contractor within the FFG(X) program: awarded a nearly $800 mln contract for the design and FFG(X) construction of the first-in-class guided missile frigate for the US Navy. The contract also includes options for 9 program additiona
Slide 5: 1H 2020 main orders and main deliveries
1H 2020 main orders Segment Vessel Client # of ships Expected Delivery Shipbuilding FFG(X) first-in-class frigate US Navy 1 2026 Fishing vessel Framherij 1 2022 Offshore & Specialized Fishing Nergard Havfiske 1 2022 Vessels Service operation vessel Ta San Shang Marine 1 2022 1H 2020 main deliveries
Slide 6: FFG(X) Program
FFG(X) Program Design and construction of the first-in-class guided missile frigate for the US Navy Overview • In 2018, FMM was awarded a $15 mln contract for the study of a Delivery: 2026 Options for 9 additional units Value: $ ~ 800 mln bring cumulative contract value to $ 5.5 bn customized versio
Slide 7: Overview of 1H 2020 main deliveries
Overview of 1H 2020 main deliveries Seven Seas Splendor (Regent) Scarlet Lady (Virgin Voyages) Le Bellot (Ponant) LCS 19 “St. Louis” (US Navy) Ferry (Boreal Sjø) Island Victory (Island Offshore) Delivered in 1H 7
Slide 8: Order intake and backlog
Order intake and backlog Breakdown by segment Order intake Total backlog(1) € mln 2.3x 0.7x € mln 6.1x 5.6x 6.5x 5.4x 4.9x 4.8x 6,627 37,912 349 52 9,900 33,127 32,690 3,600 4,100 1,604 1,736 1,951 881 888 744 • Order intake at € 1.7 bln • Total backlog with 117 units at € 37.9 bln, approximately 6.
Slide 9: Backlog deployment
Backlog deployment Breakdown by segment and end market Shipbuilding Offshore & Specialized Vessels # ship deliveries # ship deliveries Cruise Naval(1) • 10 units delivered in 1H 2020 2020 4 4 8 2020 1 5 6 2020 5 4 9 and 92 ships in backlog • Cruise: 42 vessels − Deliveries up to 2027 2021 8 2021 7 2
Slide 10: Revenues
Revenues Revenues breakdown by segment(1) € mln 2,837 2,808 12.0% • Revenues down 15.6% YoY, with an 371 12.1% 371 2,369 estimated shortfall of €790 mln 10.1% 314 7.6% 234 10 10 14.8% 392 due to the production downtime 8.6% 228 1 − Shipbuilding revenues down 723 723 17.5% vs 1H 2019 (Cruise 526 reve
Slide 11: EBITDA
EBITDA EBITDA(1) and EBITDA margin € mln 7.6% 8.1% • EBITDA at € 119 mln (-47.5% YoY) and EBITDA margin at 5.0% (8.1% 215 227 in 1H 2019) 10.5% 39 39 10.6% 5.0% • COVID-19 related reduced EBITDA contribution of € 65 mln − Shipbuilding segment lags 119 behind performance due to 246 239 6.0% 24 suspen
Slide 12: Net result
Net result Adjusted Net result(1) € mln 1.7% -1.2% 47 51 (4) (27) (2) (29) • Increased extraordinary and non 1H 2019 1H 2020 recurring items − €114 mln COVID-19 related Attributable to owners of the parent Attributable to non-controlling interests Adjusted Net income margin costs € mln 1H 2019 - Res
Slide 13: Capital expenditures
Capital expenditures Capex € mln 3.5x 5.2x 122 102 25 22 • Capex mainly dedicated to: 80 97 − Improving Italian yards for 1H 2019 1H 2020 higher efficiency − Adjusting Vard Tulcea and Tangible Intangible % of Revenues Braila production capacity Capex by segment € mln − Enhancing safety and environme
Slide 14: Net working capital
Net working capital (1) Breakdown by main components € mln FY 2019 1H 2020 Inventories and advances to suppliers 828 876 • Main drivers include: Work in progress net of 981 − Reduced production advances from customers 1,415 activities at Italian premises as a consequence of suspension 1,083 of opera
Slide 15: Net financial position
Net financial position(1) Breakdown by main components € mln – Net cash / (Net debt) FY 2019 1H 2020 98 18 Non-current financial receivables 91 897 2 382 Current financial receivables • Increase of net debt (+244 mln vs FY 2019) mainly due to the Cash & cash equivalents (399) postponement of one uni
Slide 16: Cruise industry outlook
Cruise industry outlook Cruise • Results of a survey on cruise traveler sentiment shows 32% of respondents are already looking to book their travelers next cruise and 37% said that they are likely to book a future cruise once restrictions ease(1) Cruise • Major cruise operators are disposing older v
Slide 17: Company outlook
Company outlook Production • Production volumes are expected to come back to pre-Covid levels in the second half of the year volumes • Second-half 2020 revenues are expected to be broadly in line with second-half 2019 revenues Cruise • 3 units scheduled for delivery from Italian shipyards in the sec
Slide 18: Investor Relations contacts
Investor Relations contacts Giuseppe Dado - CFO Investor Relations Team Caterina Venier-Romano +39 040 319 2229 caterina.venierromano@fincantieri.it Valentina Fantigrossi +39 040 319 2243 valentina.fantigrossi@fincantieri.it Institutional Investors investor.relations@fincantieri.it Individual Shareh
Slide 19: Q&A
Q&A FINCANTIERI The sea ahead eee
Slide 20: Appendix
Appendix a ——— FINCANTIERI The sea ahead =
Slide 21: Financial overview - Shipbuilding
Financial overview - Shipbuilding Revenues € mln 10 10 723 723 1 526 • Revenues: € 2,031 mln (-17.5% vs 1H 2019) 2,463 − Lower volumes both in Cruise (-13.1% vs 1H 2019) and 2,410 2,031 in Naval (- 27.3 % vs. 1H 2019) due the suspension of 1,677 1,730 1,504 Other Shipbuilding production activities a
Slide 22: Financial overview - Offshore & Specialized Vessels
Financial overview - Offshore & Specialized Vessels Revenues € mln • Revenues: € 228 mln (-2.6% vs 1H 2019) 314 234 228 − Decrease mainly due negative EUR/NOK conversion 1H 2019 - 1H 2019 - 1H 2020 • EBITDA: € (1) mln with margin at -0.4% Reported Restated − Positive effect of the restructuring plan
Slide 23: Financial overview - Equipment, Systems and Services
Financial overview - Equipment, Systems and Services Revenues € mln 371 392 • Revenues: € 392 mln (+5,7% vs 1H 2019) − Confirmation of the growth trend despite the negative 1H 2019 - 1H 2020 impact of the production suspension Restated − Positive impact from Fincantieri Infrastructure (Polcevera EBI
Slide 24: Profit & Loss and Cash flow statement
Profit & Loss and Cash flow statement Profit & Loss statement (€ mln) FY 2019 1H 2019(5) 1H 2020 Revenues 5,849 2,808 2.369 Materials, services and other costs (4,497) (2,063) (1,810) Personnel costs (996) (504) (432) Provisions(1) (36) (14) (8) EBITDA 320 227 119 Depreciation, amortization and impa
Slide 25: Balance sheet
Balance sheet Balance sheet (€ mln) FY 2019 1H 2019 1H 2020 Intangible assets 654 621 623 Right of use 90 85 81 Property, plant and equipment 1,225 1,152 1,230 Investments 75 74 105 Other non-current assets and liabilities (79) (14) (93) Employee benefits (60) (59) (59) Net fixed assets 1,905 1,859