Slide 1: 1H 2019 Results
1H 2019 RESULTS July 25, 2019 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 2019 Key Messages
1H 2019 Key Messages Revenues up 12%, EBITDA up 17%, record order intake at € 6.6 bln • Revenues up 12% at € 2.8 bln • EBITDA up 17% at € 215 mln and EBITDA margin at 7.6% (vs 7.3% in 1H 2018) Financials • Adjusted Net income € 34 mln and Net income at € 12 mln, net of charges for asbestos-related c
Slide 4: 1H 2019 main orders and main deliveries
1H 2019 main orders Segment Vessel Client # of ships Expected Delivery Oceania Cruises 2 2022-2025 Regent Seven Seas Cruises 1 2023 Cruise Ships Viking Cruises 2 2024-2025 Shipbuilding MSC Cruises 4 2023-2026 Princess Cruises 2 2023-2025 Littoral Combat Ship US Navy 1 2023 Offshore & Specialized Exp
Slide 5: Overview of 1H 2019 main deliveries
Overview of 1H 2019 main deliveries Viking Jupiter Costa Venezia LCS 15 Billings FREMM Marceglia Shipbuilding Ponant Le Dumont d'Urville Ponant Le Bougainville Hapag-Lloyd Hanseatic Nature Offshore & Specialized Vessels OSCV Topaz (x2) OSCV Skandi Olinda (DOF) Coral Adventurer Delivered in Q2 5
Slide 6: Order intake and backlog: breakdown by segment
Order intake and backlog Breakdown by segment Order intake Total backlog(1) € mln € mln 5.9x 6.2x 6.1x 0.9x 2.3x 4.3x 4.7x 5.4x 6,627 33,824 33,127 349 8,300 • Record order intake at 29,787 3,600 57 € 6.6 bln 1,604 7,800 885 1,638 • Contracts signed for 15 units, 987 1,289 including 11 cruise ships
Slide 7: Backlog deployment: breakdown by segment and end market
Backlog deployment Breakdown by segment and end market Shipbuilding Offshore & Specialized Vessels # ship deliveries(1) # ship deliveries(1) Cruise Naval(2) • 15 units delivered in 1H 2019 2019 5 3 8 2019 2 1 3 2019 8 12 20 and 98 ships in backlog • Cruise: 47 vessels − Deliveries up to 2027 2020 8
Slide 8: Revenues
Revenues Revenues breakdown by segment(1) € mln 2,837 2,527 2,527 12.0% 371 11.6% 321 11.5% 321 10.1% 314 - 10 • Revenues up 12% vs 1H 2018 12.0% 333 20.3% 564 10 − Shipbuilding revenues up 13.2% 10 723 vs 1H 2018 (Cruise revenues up 592 9.8% and Naval revenues up 592 22.1%) 77.9% 2,410 76.5% 2,129
Slide 9: EBITDA
EBITDA EBITDA(1) and EBITDA margin € mln 7.6% 215 7.3% 7.3% • EBITDA at € 215 mln (+17% vs 1H 10.5% 39 2018), EBITDA margin at 7.6% 183 183 (7.3% in 1H 2018) 10.7% 34 − Good operating performance of 10.7% 34 the Shipbuilding segment 1.2% 7 confirming the soundness of Business Plan drivers 10.2% 246
Slide 10: Net result
Net result Adjusted Net result(1) € mln 1.5% 1.2% 39 34 45 38 • Increased FX charges (partially non-cash) (6) (4) • Extraordinary and non recurring 1H 2018 1H 2019 items in line with 1H 2018 Attributable to owners of the parent Attributable to non-controlling interests − €18 mln for asbestos-related
Slide 11: Capital expenditures
Capital expenditures Capex € mln 1.7% 3.6% 102 22 44 • Capex mainly aimed at: 6 80 38 − Upgrading of Italian yards to enable the construction of (1) 1H 2018 1H 2019 larger ships Tangible Intangible % of Revenues − Adjusting Vard Tulcea and Capex by segment Braila production capacity € mln − Improvin
Slide 12: Net working capital
Net working capital (1) Breakdown by main components € mln FY 2018 1H 2019 Inventories and advances to suppliers 881 807 • Main drivers include: Work in progress net of advances from customers 936 969 − Delivery of a vessel previously classified as inventory Trade receivables 749 647 − Typical busin
Slide 13: Net financial position
Net financial position(1) Breakdown by main components € mln – Net cash / (Net debt) FY 2018 1H 2019 63 72 17 12 677 683 Non-current financial receivables Current financial receivables • Increase of net debt consistent Cash & cash equivalents (485) with investments of the period and (670) cruise bus
Slide 14: Outlook
Outlook • The good performance of the Shipbuilding segment allows us to reiterate the Group guidance for 2019, despite the challenging context in the Offshore and Specialized Vessels sector, • 2019 results expected to be in line with 2018 and consistent with 2018-2022 Business Plan guidelines ‒ Grow
Slide 15: Investor Relations contacts
Investor Relations contacts Investor Relations Team Tijana Obradovic – Head of Investor Relations +39 040 319 2409 tijana.obradovic@fincantieri.it Emanuela Cecilia Salvini +39 040 319 2614 emanuelacecilia.salvini@fincantieri.it Marco Pesaresi +39 040 319 2663 marco.pesaresi2@fincantieri.it Instituti
Slide 16: Q&A
Q&A FINCANTIERI The sea ahead —
Slide 17: Appendix
Appendix FINCANTIER! ——
Slide 18: Financial overview - Shipbuilding
Financial overview - Shipbuilding Revenues € mln 10 • Revenues: € 2,410 mln (+ 13.2% vs 1H 2018) 10 10 723 592 − Higher volumes in Cruise (+9.9% vs 1H 2018) driven by 592 the construction of larger vessels 2,410 − Substantial progress of production activities in naval (+ 1,892 2,129 1,527 1,677 Othe
Slide 19: Financial overview - Offshore & Specialized Vessels
Financial overview - Offshore & Specialized Vessels Revenues € mln • Revenues: € 314 mln (vs € 333 in 1H 2018) − Volume contraction related to the reduction of capacity 564 utilization 333 314 • EBITDA: € (52) mln, with margins at -16.6 % − Development of the complex, highly challenging 1H 2018 1H 2
Slide 20: Financial overview - Equipment, Systems and Services
Financial overview - Equipment, Systems and Services Revenues € mln 371 • Revenues: € 371 mln, up 15.3% vs 1H 2018 321 321 − Confirmation of the growth trend started in 2017 − Positive impact of the backlog related to naval contracts 1H 2018 1H 2018 1H 2019 Reported Restated and higher volumes in sh
Slide 21: Profit & Loss and Cash flow statement
Profit & Loss and Cash flow statement Profit & Loss statement (€ mln) FY 2018 1H 2018 1H 2019 Revenues 5,474 2,527 2,837 Materials, services and other costs (4,089) (1,855) (2,100) Personnel costs (946) (482) (508) Provisions(1) (25) (7) (14) EBITDA 414 183 215 Depreciation, amortization and impairm
Slide 22: Balance sheet
Balance sheet Balance sheet (€ mln) FY 2018 1H 2018 1H 2019 Intangible assets 618 625 621 Right of use - - 85 Property, plant and equipment 1,074 1,031 1,152 Investments 60 51 74 Other non-current assets and liabilities 8 72 (14) Employee benefits (57) (58) (59) Net fixed assets 1,703 1,721 1,859 In