Slide 1: 2014 Half-Year Results
2014 HALF-YEAR RESULTS July 22, 2014
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 2014 Key Highlights
1H 2014 Key Highlights Key Business Highlights • Solid order intake and confirmation of positive revenue trend across all segments and end markets • Continuous conversion of soft backlog(1) into backlog confirmed by MSC Project Seaside which testifies ‒ Technological know how and innovation capabili
Slide 4: 1H 2014 main new orders
1H 2014 main new orders Vessel Client Delivery 2 extra-luxury Seabourn Cruise 2016 cruise vessels Undisclosed 2016 Programma MSC Crociere 2015 Shipbuilding Rinascimento Q1 2 Littoral Combat US Navy 2018 Ship units Offshore OSCV VARD 3 19 Solstad Offshore 2016 2 cruise ships MSC Crociere 2017 / 2018
Slide 5: 1H 2014 main deliveries
1H 2014 main deliveries Vessel Client Shipyard FREMM Carlo Italian Navy Muggiano Margottini Shipbuilding Patrol boat Italian Coast Guard Castellammare di Ubaldo Diciotti Stabia Q1 PSV Troms Troms Offshore Vard Aukra Arcturus Offshore AHTS Far Sigma Farstad Shipping Vard Langsten Regal Princess Princ
Slide 6: Summary of financial performance indicators
Summary of financial performance indicators(1) Comments € MM FY 2013 1H 2013 1H 2014 Order intake 4,998 1,843 3,447 • Order intake at € 3.4 BN bringing backlog up to € 9.5 BN Backlog 8,068 6,830 9,515 • Revenues at € 2.0 BN Revenues 3,811 1,894 1,983 • EBITDA at € 142 MM (7.1% on EBITDA 298 140 142
Slide 7: Order intake and backlog – by segment
Order intake and backlog – by segment Order intake Backlog Comments € MM € MM 1.7x • Solid order intake at € 3.4 BN in 1H 3,447 2014, with book-to-bill ratio of 1.7x Soft 119 backlog(1) ‒ Shipbuilding: € 2.4 BN € 5.8 BN 9,515 14 units, of which 4 cruise ships 993 1.0x 304 and 10(2) naval vessels 6
Slide 8: Backlog deployment – by segment and end market
Backlog deployment – by segment and end market Shipbuilding Offshore Comments # ships (1) # ships • Cruise: orders bringing visibility of Cruise Naval(2) deliveries to 2018 2H 2014 1 2H 2014 1 2H 2014 11 • Naval: deliveries of LCS units up to 2018; still waiting for conversion into backlog of Italia
Slide 9: Revenues – by segment and end market
Revenues – by segment and end market Breakdown by segment and end market(1) Comments € MM 1,983 • Shipbuilding revenues increased by 1,894 4.7% at € 1.24 BN, with 4.3% 86 3.4% 65 ‒ Higher contribution of Cruise, where signs of recovery have been 34.0% 681 34.4% 663 observed ‒ Reduced contribution of
Slide 10: EBITDA by segment
EBITDA(1) by segment EBITDA and EBITDA margin Comments € MM • Group EBITDA at € 142 MM, in line with 7.4% 7.1% 1H 2013 although affected by Provisions and impairment losses for € 10 MM, with 140 142 margin at 7.1% 8.4% 5 10.3% 9 ‒ Shipbuilding at € 80 MM with higher contribution in terms of margins
Slide 11: 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(1) Comments € MM 2.9% 2.4% • Net income before extraordinary and non recurring items at € 48 MM, 2.4% on revenues (vs. 2.9% in 1H 55 2013) 48 ‒ Extraordinary and non recurring items gro
Slide 12: Capital expenditures
Capital expenditures Capex Comments € MM 6.7% • Capex in 1H 2014 equal to € 67 MM, of 128 which 26 3.4% ‒ Tangible for € 53 MM, mainly related 67 to the construction of new 14 infrastructures (e.g. Vard Promar 102 53 Brazilian shipyard) and technological upgrading of facilities in Italy and 1H 2013
Slide 13: Net working capital
Net working capital Breakdown by main components Comments € MM • Net working capital in 1H 2014 at € (52) Inventories and advances 475 400 MM, stable compared to FY 2013 with ‒ Increase in inventories and advances Work in progress net of 735 757 (€ 75 MM) driven by growth in advances from customers
Slide 14: Net financial position
Net financial position(1) Breakdown by main components Comments € MM – Net cash / (Net debt) • Net financial position in 1H 2014 at 15 75 € (184) MM of net debt, stable Non-current financial receivables 41 Current financial receivables 52 compared to FY 2013 due to the inflows from the delivery of a
Slide 15: Key financial ratios
Key financial ratios Profitability ratios Debt ratios Comments ROI(1) (EBIT / Net invested capital) Net debt / EBITDA • ROI and ROE show an improvement € MM in Group profitability for 1H 2014 (157) 184 mainly due to changes in Net 0.6x invested capital and Equity, 16.8% 13.8% respectively, for the p
Slide 16: Outlook
Outlook • Trend of the business suggests a higher activity during the remaining part of 2014, with expectations of a better visibility due to further extension of the order book • In the Shipbuilding segment ‒ Positive cruise market outlook supported by order intake (MSC Project Seaside) and ongoing
Slide 17: Investor Relations contacts
Investor Relations contacts Head of Investor Relations Luca Passa +39 040 319 2369 luca.passa@fincantieri.it Institutional Investors investor.relations@fincantieri.it Individual Shareholders azionisti.individuali@fincantieri.it www.fincantieri.com 17
Slide 18: Appendix
Appendix FINCANTIERI 18
Slide 19: Shipbuilding
Shipbuilding Highlights Comments € MM 1H 2013 1H 2014 • 2 large cruise ships for MSC • Orders: solid order intake at € 2.4 BN, Crociere including 14 new ships Order intake 1,258 2,396 • 2 extra-luxury cruise ships for • Revenues: at € 1.2 BN driven by Backlog 4,803 6,664 Seabourn Cruise and an incre
Slide 20: Offshore
Offshore Highlights Comments • Orders: healthy order intake at € 1 BN € MM 1H 2013 1H 2014 • 1 Diving Support and Construction bringing backlog up at € 2.6 BN Vessel for Technip Order intake 532 993 • Revenues: at € 681 MM up 2.8% vs. 1H • 1 arctic AHTS for Bourbon 2013 mainly due to full consolidat
Slide 21: Equipment, systems and services
Equipment, systems and services Highlights Comments € MM 1H 2013 1H 2014 • Orders: good order intake at € 119 MM, up from € 62 MM in 1H 2013, Order intake 62 119 with backlog at € 304 MM Backlog 183 304 • Revenues: up to € 86 MM, mainly due Revenues 65 86 to the increase of volumes of after sale ser
Slide 22: Profit & Loss and Cash flow statement
Profit & Loss and Cash flow statement Profit & Loss statement (€ MM) 1H 2013 1H 2014 Revenues 1,894 1,983 Materials, services and other costs (1,386) (1,425) Personnel costs (369) (406) Provisions and impairment losses 1 (10) EBITDA 140 142 Depreciation and amortization (44) (49) EBIT 96 93 Finance
Slide 23: Balance sheet
Balance sheet € MM FY 2013 1H 2014 Intangible assets 539 548 Property, plant and equipment 897 926 Equity investments 70 76 Other non current assets and liabilities (14) (17) Employee indemnity benefit (60) (60) Net fixed capital 1,432 1,473 Inventories 400 475 Construction contracts net of advances