Slide 1: 1H 2017 Results
1H 2017 RESULTS July 26, 2017 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 2017 Key Messages
1H 2017 Key Messages • 1H 2017 results in line with Business Plan 2016-2020 targets: revenues up 1.3% vs 1H 2016 and EBITDA margin at 6.3%, 20% higher than the 5.0% in 1H 2016; Business Plan targets confirmed • Total backlog(1) at € 25.5 bln covering ~5.8 years of work if compared to 2016 revenues:
Slide 4: 1H 2017 main orders
1H 2017 main orders Orders acquired in Q2 Vessel Client Delivery 4 cruise ships Norwegian Cruise Line 2022-2025 TBU Shipbuilding 1 cruise ship Holland America Line 2021 (Carnival Corporation) 1 krill fishing vessel Aker BioMarine 2018 1 live fish transportation vessel Fjordlaks Aqua 2018 Offshore 1
Slide 5: 1H 2017 main deliveries
1H 2017 main deliveries Deliveries in Q2 Vessel Client Delivery Cruise ship “Viking Sky” Viking Ocean Cruises Ancona Cruise ship “Majestic Princess” Princess Cruises Monfalcone (Carnival Corporation) Cruise ship “Silver Muse” Silversea Cruises Sestri Ponente Shipbuilding FREMM “Rizzo” Italian Navy M
Slide 6: Order intake and backlog – by segment
Order intake and backlog – by segment Order intake Total backlog(1) € mln € mln 2.6x 1.9x 5.2x 5.4x 5.8x 5,100 5,851 5,800 2,500 1,288 318 1,024 1,403 729 1,266 1,155 4,369 1,361 323 379 Backlog Backlog 20,424 17,565 Backlog 18,231 18,512 5,073 16,372 19,290 3,872 (269) (205) (565) (657) (779) (3) (
Slide 7: Backlog deployment – by segment and end market
Backlog deployment – by segment and end market Shipbuilding Offshore Comments # ship deliveries(1) # ship deliveries • 8 units delivered in 1H 2017, 11 units Cruise Naval(2) acquired in the period, 102 ships in backlog at June 30, 2017 2017 3 2 5 2017 2 8 10 2017 3 16 19 • Cruise: 22 vessels − Deliv
Slide 8: Revenues – by segment and end market
Revenues – by segment and end market Breakdown by segment and end market(1) Comments € mln • Shipbuilding − Growth of revenues in cruise, 2,266 2,295 reaching 51% of Group’s total (3 units 9.3% 227 delivered and 11 units under 10.7% 256 construction vs. 4 units delivered and 18.4% 448 9 units under
Slide 9: EBITDA by segment
EBITDA(1) by segment EBITDA and EBITDA margin Comments € mln • EBITDA margin 20% higher than 1H 5.0% 6.3% 2016 • Shipbuilding − Good performance in cruise thanks to 146 the sister ships acquired after crisis at better margins and to actions finalized 11.1% 25 113 to increase efficiency and 4.8% 22 c
Slide 10: Net result
Net result Net result before extraordinary and non recurring items(1) Comments € mln • The result before extraordinary and non recurring items reflects 28 − Improvement of operating performance and margin 19 − Increase finance expenses at € 39 30 19 mln (vs € 32 mln in 1H 2016), due to the reduction
Slide 11: Capital expenditures
Capital expenditures Capex Comments € mln 4.1% 3.3% • Tangible capex chiefly aimed at − Supporting the development of production volumes, the introduction 94 76 of new sandblasting and painting 31 26 systems at the Monfalcone yard, the reorganization of operational areas 63 50 and technological upgr
Slide 12: Net working capital
Net working capital(1) Breakdown by main components Comments € mln FY 2016 1H 2017 • Net working capital decrease to € 206 mln, from € 265 mln in FY 2016 Inventories and advances to 575 • Increase of Work in progress and Trade suppliers 590 payables, principally related to the growth of cruise produ
Slide 13: Net financial position
Net financial position(1) Breakdown by main components Comments € mln – Net cash / (Net debt) FY 2016 1H 2017 • Net debt at the end of 1H 2017 at € 631 mln (€ 615 mln in FY 2016) ‒ Most of the Group's debt is related to the financing of current assets associated with cruise ship Non-current financia
Slide 14: Outlook
Outlook • 2H revenues are expected to increase compared to 1H 2017, following the trend outlined in the Business Plan Shipbuilding • Further volume growth and margin improvement thanks to ‒ the start of construction works for cruise sister ships acquired after crisis at higher prices ‒ production of
Slide 15: Investor Relations contacts
Investor Relations contacts Investor Relations Team Cristiano Pasanisi – VP Group Treasury, Corporate Finance & Investor Relations +39 040 319 2375 Cristiano.pasanisi@fincantieri.it Matteo David Masi – Head of Investor Relations +39 040 319 2334 MatteoDavid.masi@fincantieri.it Alberta Michelazzi +39
Slide 16: Q&A
Q&A FINCANTIERI The sea ahead 16
Slide 17: Appendix
Appendix FINCANTIER! =
Slide 18: 1H 2017 results by segment
1H 2017 results by segment Shipbuilding Offshore Equipment, Systems and Services 18
Slide 19: Shipbuilding
Shipbuilding Revenues Comments € mln 4 • Revenues: € 1,757 mln, up 9.9% vs 1H 2016 10 515 − Growth of volumes in cruise reaching 51% of 559 Other Shipbuilding total Group revenues (3 units delivered and 11 1,599 1,757 Naval units under construction vs. 4 units delivered 1,238 and 9 units under const
Slide 20: Offshore
Offshore Revenues Comments € mln • Revenues: € 448 mln, down 16.4% vs 1H 2016 − Reduction of production volumes due to the downturn in production activities in European 536 shipyards of VARD, pending the contribution of 448 the diversification strategy − Shut down of Niterói yard in Brazil − Positiv
Slide 21: Equipment, Systems and Services
Equipment, Systems and Services Revenues Comments € mln • Revenues: € 227 mln, down 11.3% vs 1H 2016 − The decline in revenues is mainly due to a lower contribution from ship conversion 256 227 activities • EBITDA: € 25 mln with margin at 11.1% (1) − Decrease due to a change in the mix of 1H 2016 1H
Slide 22: Profit & Loss and Cash flow statement
Profit & Loss and Cash flow statement Profit & Loss statement (€ mln) FY 2016 1H 2016 1H 2017 Revenues 4,429 2,266 2,295 Materials, services and other costs (3,291) (1,712) (1,671) Personnel costs (846) (431) (462) (1) Provisions (25) (10) (16) EBITDA 267 113 146 Depreciation, amortization and impai
Slide 23: Balance sheet
Balance sheet Balance sheet (€ mln) FY 2016 1H 2016 1H 2017 Intangible assets 595 546 583 Property, plant and equipment 1,064 1,014 1,049 Investments 58 57 55 Other non-current assets and liabilities (69) (28) 42 Employee benefits (58) (61) (58) Net fixed assets 1,590 1,528 1,671 Inventories and adv