Slide 1: 1Q 2023 Results & 2023-2027 Strategic Plan
1°20 esults & 2023-2027 Strategic Plan May 10, 2023 FINCANTIERI www. fincantieri.com
Slide 2: Safe harbour statement
1Q 2023 Results & 2023-2027 Strategic Plan FINCANTIER! Safe harbour 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 "beli
Slide 3: Speakers
1Q 2023 Results & 2023-2027 Strategic Plan FINCANTIER! Speakers Pierroberto Folgiero Claudio Cisilino Bent Erik Nedrevold Giuseppe Dado Chief Executive Officer Executive VP Operations, Project Manager VARD Electro Chief Financial Officer Corporate Strategy and Innovation
Slide 4: Agenda
Slide 5: 1Q 2023 Financial & Operating Highlights
Highlights FINCANTIERI 1Q 2023 Financial & Operating Highlights Net Financial (€ mln) Revenues EBITDA Order Intake Position 909 2,922 1,764 _ 2,531 CT — 118 513 —| 87 —— Qi 2022 Qi 2023 Qi 2022 Qi 2023 Qi 2022 Qi 2023 Fy 2022 Qi 2023 e Revenues at € 1,764 mln, up by 4.9%, in line with expectations e
Slide 6: Agenda
Slide 7: • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • 7
Slide 8: 1Q 2023 Order Intake & Total Backlog
Financials FINCANTIER! 1Q 2023 Order Intake & Total Backlog Order Intake breakdown by segments Total backlog breakdown by segment? (€ min) (€ mln) 0.3x 0.5x 33,987 909 <—- 1,148 1,344 —— pay Backlog Backlog 24,798 | eee 22,687 19,248 252 125 (36) Cia) (384) (416) Qi 2022 Qi 2023 Qi 2022 Qi 2023 (Boo
Slide 9: 1Q 2023 Revenues & EBITDA
Financials 1Q 2023 Revenues & EBITDA Revenues breakdown by segmentt EBITDA breakdown by segment (€ min) (€ mln) 4.9% +4.9% Pz 1,764 1,681 118 a 3.2% 87 493 484 Shipbuilding] Shipbuilding 7 1,429] 4,427 8.3% 5.4% (182) (166) (14) (10) Qi 2022 Qi 2023 Qi 2022 Qi 2023 % of Total revenues Equipment, off
Slide 10: 1Q 2023 Net Financial Position & Net Working Capital
Financials FINCANTIER! 1Q 2023 Net Financial Position & Net Working Capital Net Working Capital breakdown by component Net Financial Position? (€ mtn) (© min) + Net financial position at € 2,922 min, in line with production 864 schedule for the quarter 4,669 * Two cruise ships already delivered in A
Slide 11: Agenda
10 2023 Results & 2023-2027 Strategic Plan Agenda 1. 1Q 2023 Results Highlights Financials 027 St d Strategi f - Pierroberto Folgiero Stre oyment 7 Claudio Cisilino Case afi a ik Nedrevold ials and 4 : = eppe Dado uding Rema 7 ie olgiero
Slide 12: Italian Group with a global footprint
FINCANTIER! Markets and Strategic Pillars @ Shipyards Italian Group with a global footprint + Leading player in Shipbuilding with a strong competitive positioning thanks to technology, innovation and best-in-class execution Romania * Growth led by organic diversification, global production capacity
Slide 13: Markets and Strategic Pillars
Markets and Strategic Pillars FINCANTIERI We are leading shipbuilders with a vision to provide a comprehensive service proposition of the life-cycle of green and digital ships Shipbuilding Infrastructure @anfep Defence Offshore Infrastructure capabilities in sectors adjacent to shipbuilding >40% glo
Slide 14: Leading global positions across all business segments
Markets and Strategic Pillars FINCANTIERI Leading global positions across all business segments Underpinned by total backlog at € 34 bn, including soft backlog of € 11.3 bn in Q1 2023 een Offshore & Shipbuildin Pr P e Specialized Vessels * Offshore Wind Electronics, systems & Cruise Marine Interiors
Slide 15: Fincantieri has unique competitive strengths to meet customer needs
Markets and Strategic Pillars FINCANTIERI Fincantieri has unique competitive strengths to meet customer needs Consolidated leadership, flexible global production network and vertical integration * Scale and cross-fertilization of competencies * Capability to address geopolitical demand enabling the
Slide 16: Ready to exploit opportunities driven by market macro-trends
Markets and Strategic Pillars FINCANTIER! Ready to exploit opportunities driven by market macro-trends Current business outlook underpins potential to accelerate growth and global market share Cruise market rebounding Military market in a Offshore market driven by Growth and volatility in Sector wit
Slide 17: Cruise: passenger rate to grow ~6% annually until 2030
Markets and Strategic Pillars FINCANTIER! Cruise: passenger rate to grow ~ 6% annually until 2030, & with new ships needed from 2023 - 2024 Cruise Market Passengers 50 a] = With a substantial resumption in cruise activities, cruise passengers in 2022 o - ae amounted to 20 million! - ’ ! + 38 mln pas
Slide 18: Defence: foreign accessible markets opportunities for €20 bn
Markets and Strategic Pillars Defence: foreign accessible markets opportunities for € 20 bn in 2023 - 2027 FINCANTIER! ey Global defence budget * Geopolitical context and foreign policy impact industrial defence sector and demand for larger fleets with more advanced technological requirements * Glob
Slide 19: Naval: supporting the Italian Navy fleet renewal and expansion
Naval: supporting the Italian Navy fleet ay renewal and expansion Italian Navy + Fincantieri is the strategic partner of the Italian Navy with more than 50 deliveries since 1990 and the reference player for the design and construction of naval vessels, including submarines, as well as after sale ser
Slide 20: Offshore & Specialized Vessels: expansion in offshore wind
Markets and Strategic Pillars Offshore & Specialized Vessels: expansion in offshore wind with significant attention to renewable energies FINCANTIER! 8S Wind Offshore * Offshore wind farms: total installed capacity expected to rise from 59.2 GW to c. 269 GW by 2080!, spurring strong demand for speci
Slide 21: Future vessel requirements in 2030-2040-2050
Markets and Strategic Pillars FINCANTIER! Future vessel requirements in 2030-2040-2050 Customer needs undergoing a complete transformation for a full service proposition Sensor & data analytics All vessel equipment will be monitored, optimized & maintained through sensor data collection & analysis G
Slide 22: Capitalizing upon additional competitive advantages
Markets and Strategic Pillars FINCANTIER! Capitalizing upon additional competitive advantages With an ambition to create long term customer value as a life cycle partner Focused on increasing efficiency and productivity Distinctiveness is the name of the game * Global industrial excellence across th
Slide 23: New strategy deployed in key projects aggregated in 5 pillars
Markets and Strategic Pillars FINCANTIER! Our new strategy deployed in a set of key projects aggregated in 5 pillars Aimed at strengthening existing global leadership and preparing the Group for extending its leadership in the long term Focus on Core Business Review product portfolio, maximize effic
Slide 24: Focused on core business: Cruise, Naval and Offshore
Markets and Strategic Pillars FINCANTIER! Focused on core business: Cruise, Naval and Offshore Actions Group Revenues EBITDA Margins Maintain leadership in cruise Execute backlog Strengthen commercial effort on refitting business Strong commercial push, capturing domestic and foreign markets Enhance
Slide 25: Cross-fertilization of expertise, accelerated by green and digital transition
Markets and Strategic Pillars FINCANTIERI Cross-fertilization of expertise, top-notch competences and best-practices throughout the core business, accelerated by green and digital transition va / 4 Green Cruise Naval Offshore Digital Defining clear targets to reach net-zero emissions by 2035, includ
Slide 26: Repositioning of ESS unit to support green and digital journey
Markets and Strategic Pillars FINCANTIER! Supported by repositioning of ESS unit to support green and digital journey ESS reorganised as enabler for comprehensive life-cycle service offering Electrical, electronic and digital services Area of Activities Group Companies Delivering Marine systems and
Slide 27: Technological leadership in complex electronic and digital systems
Markets and Strategic Pillars Technological leadership in complex electronic and digital systems to enhance Fincantieri offering FINCANTIER! Platform Automation & Integration Cybersecurity Maritime Platform system automation and optimized integration with key mission support and combat subsystems Fo
Slide 28: ESG & Sustainability fully integrated in the Strategic Plan
Markets and Strategic Pillars FINCANTIER! ESG & Sustainability fully integrated in the Strategic Plan 2023-2027 Group Sustainability Plan based on 3 pillars and 15 material topics T 4 > > < ¢ v Innovation Inclusion Integrity Innovative and technological development Protection, inclusion and developm
Slide 29: Decisive actions to refocus and de-risk the Infrastructure business unit
Markets and Strategic Pillars FINCANTIER! Decisive actions to refocus and — de-risk the Infrastructure business unit Fully committed to reduce riskiness and restore profitability to foster strategic optionality + Structural steel components iviti * Maritime works Infrastructure Activities + Technica
Slide 30: Revenues at c. €9.8 bn in 2027, driven by naval and offshore
Markets and Strategic Pillars Revenues at c. € 10 bn in 2027, mainly driven by growth in naval and offshore Higher margins leading to net profit from 2025 and significant deleveraging FINCANTIER! FY 2019! FY 2022 FY 2023 FY 2024 FY 2025 FY 2027 Revenues 5.8 bn 74 bn ~7.6 bn ~8.0 bn ~8.8 bn ~9.8 bn E
Slide 31: Pierroberto Folgiero
Pierroberto Folgiero
Slide 32: Strategy Deployment: strategic pillars to support delivery of 2023-2027 targets
Strategy Deployment 5 strategic pillars to support delivery of 2023-2027 targets Positioning Fincantieri for long term opportunities FINCANTIER! Successfully delivering 2023-2027 Targets Focus on Core Business Financial Discipline Xie KA oOo Industrial Sustainability Life-Cycle Management System Int
Slide 33: Strategic projects underpinning the 5 strategic pillars
Strategy Deployment FINCANTIER! 10 strategic projects underpinning the 5 strategic pillars 10 Working Teams fully committed to successfully reaching milestones and targets Successfully delivering 2023-2027 targets © gy Or a 000 Laying the foundation for the next industrial cycle Targets Focus on Cor
Slide 34: Pillar Initiatives: Key Initiatives
Strategy Deployment Pillar 1 Initiatives Key Initiatives FINCANTIER! 1. Operations Excellence Speeding up new technologies adoption and maximize efficiency to bolster productivity: + Industrial efficiency through automation of low value-added activities * Digitalization of shipyards adopting of stat
Slide 35: Digitalization of Shipyards: the Shipyard of the Future
Strategy Deployment FINCANTIER! Pillar 1 — Digitalization of Shipyards: the Shipyard of the Future © 2.Design ~ —_ -_ wei Ay {3.Digital Manufacturing om 4.Hull e Digitalized Detail Design with full Control tower for digitally aided q y High efficiency, high quality and bd ia E2E integration from Fun
Slide 36: Digitalization of Shipyards is a key priority
Strategy Deployment FINCANTIER! Pillar 1 — Digitalization of Shipyards is a key priority © Example of ongoing initiatives to improve productivity and efficiency Initiative: Initiative: Initiative: Cooperative Welding robot Hololens Unmanned vehicles Welding robot vehicle consisting of an Augmented r
Slide 37: Pillar Key Initiatives: procurement and SG&A
Strategy Deployment FINCANTIER! Pillar 2 — Key Initiatives Turning every stone to mitigate risks via close attention to costs management and optimization of Cash Flows * Optimize purchasing expenditure, secure supply chain and reduce risks: + Sharing of best practices on should cost and design to va
Slide 38: Pillar Key Initiatives: green transition and ESG strategy
Strategy Deployment FINCANTIER! Pillar 3 — Key Initiatives + Defining a clear roadmap of product development in order to achieve the net-zero emissions target in all business segments: + Enable and integrate onboard new technologies and new fuels 7. Green transitioning towards Net-Zero + Implement p
Slide 39: Road Map to Net-Zero for a large cruise vessel
Strategy Deployment FINCANTIER! Pillar 3 —- Road Map to Net-Zero for a large cruise vessel hon OT ‘ a loos Fe 2030 MM 70.35 First ‘local First LNG Minimal . First LNG High zero emissions vessel zero emissions in Net-Zero with Milestone High efficiency vessel with cease small vessel emissions in port
Slide 40: Fincantieri pioneering on industrial sustainability
Strategy Deployment Pillar 3 — Fincantieri pioneering on industrial sustainability FINCANTIER! LOY Discussions with leading cruise operators are ongoing with significant progress and agreement on the way forward Le Commandant Charcot Ponant LNG and battery First electric hybrid polar expedition crui
Slide 41: Key technologies needed and identified
Strategy Deployment FINCANTIER! Pillar 3 — Key technologies needed and identified Net-Zero achievement needs internal and external technologies which have been identified and are available & 22s Cruise Naval Offshore Internal Technologies Make Buy External Technologies ‘including HVAC and peak shavi
Slide 42: Key ESG Targets
Strategy Deployment FINCANTIER! Pillar 3 — Key ESG Targets how Top Managers variable compensation linked to ESG KPIs and ESG ratings Objectives Innovation and \> bea technological development for energy and digital transition \ Industrial excellence _ Protection, inclusion and development of people
Slide 43: Pursuing a new business model
Strategy Deployment Pillar 4 —- Pursuing a new business model FINCANTIER! Long term opportunity by transitioning from Capex to Opex, with a full service offering that maximizes operating efficiency throughout the lifecycle of the ship 9. Cruise digital offering + Pushing the boundaries of data colle
Slide 44: Already developed capabilities within our ecosystem
Strategy Deployment FINCANTIER! Pillar 4 — Already developed capabilities within our ecosystem Possible cross-fertilization between different businesses Automation / YARD [ote oy +a VARD Data Science FINCANTIERI | sean Data Platform FINCANTIER! | @ News applicant ia Fincantieri pplication wpeye soft
Slide 45: A new digital service business positioning for Navies
Strategy Deployment Pillar 4 — A new digital service business positioning for Navies FINCANTIER! rm Offering an integrated fleet digital support solution with a complete service proposition throughout the ship’s life cycle & Digitally-enabled seal Digital asset management Training & Simulation Cyber
Slide 46: Naval integration capabilities to be enhanced
Strategy Deployment FINCANTIER! Pillar 5 — Naval integration capabilities to be enhanced Enhance status as prime contractor in all defense programs by reinforcing combat system capabilities Status Quo . ee . A naval vessel and main system components * Fincantieri is already prime contractor on some
Slide 47: Case Study: Ocean Infinity
Slide 48: The Armada Series
© Remote Vessel Operation : The Armada Series i ee ee oie . i 5 Cee
Slide 49: Case Study: Ocean Infinity - The Project
Case Study: Ocean Infinity FINCANTIER! The Project + Part of the Armada series for Ocean Infinity + 14 Vessels in total, built in Vietnam, commissioned in Norway * Top-side and remote solution finalized in Norway * Two types of design, 78m vessel and 86m vessel * Flexible deck layout for multi use o
Slide 50: Case Study: Ocean Infinity - Green Transition
Case Study: Ocean Infinity FINCANTIER! Green Transition * Optimized hull design + Efficient MGO usage + Battery hybrid * Fuel ready (Ammonia) notation + Fuel-cell prepared * Hybrid electric propulsion system
Slide 51: Case Study: Ocean Infinity - Digitalization
FINCANTIER! Study: Ocean Infinity Digitalization The digital strategy of Finca is moving to reality by this project Remote Support Dee GOA) Greener & Safer Navigation Operations Safety Situational awareness AUTOMATED ROBOTICS Periodically Unmanned Bridge Automated Operations &. Autonomous > THE FUTU
Slide 52: SeaQ Remote Control Center
FINCANTIER! SeaQ Remote Control Center
Slide 53: Seafincantieri
Seakincantier “=
Slide 54: Case Study: Ocean Infinity - Plan moving forward
Case Study: Ocean Infinity FINCANTIER! Plan moving forward Delivery ist Remote Remote Fleet Autonomous Vessel Navigation Operations Operations Operations | i | | | i i i i i i ' ' i i H Remote Potential on board H H H Engineering Engineering crew reduction H H | 1 1 | | | ' H I I ' I I ' i ' i i ' '
Slide 55: We are what we do
We are what we do We explore We take action We become*experts a Fincantieri company
Slide 56: Concluding Remarks
onclud ing Remarks
Slide 57: Key Assumptions for the Business Plan — Top Line
Financials & Guidance Key Assumptions for the Business Plan — Top Line FINCANTIER! Shipbuilding Offshore & Specialized Vessels Equipment, Systems and Services Healthy Market Prospects Across all Sectors Strategic Focus on Growth and Profitability High Quality Backlog and Visibility on Revenues Order
Slide 58: Key Assumptions for the Business Plan — Margins & Leverage
Financials & Guidance FINCANTIER! Key Assumptions for the Business Plan — Margins & Leverage De-risking and Financial Discipline Key Cost Item and Financial Management Mitigation of Risk Profile + Reviewing the core business portfolio and structural assessment of risk, strategic and value-based para
Slide 59: Solid Order Book with Strong Visibility up to 2029
Financials & Guidance FINCANTIER! Solid Order Book with Strong Visibility up to 2029 with 89 ships in portfolio Consolidated backlog of € 22.7 bn at Q1 2023 equating to 3.0x 2022 Revenues Soft Backlog of € 11.3 bn equating to further 1.5x 2022 Revenues Shipbuilding - Cruise Segment Shipbuilding - Na
Slide 60: Shipbuilding Segment Evolution
Financials & Guidance FINCANTIER! & & Shipbuilding Segment Evolution Solid Revenue growth, particularly in Naval segment, coupled with a gradual increase in profitability Historical Trends Targets . Revenues, € bn Hi Cruise Naval * Cruise order intake rebounded in 2022as per improved sector outlook
Slide 61: Offshore Segment Evolution
Financials & Guidance FINCANTIER! SS Offshore Segment Evolution Significant Revenue and margin upside from the successful VARD turnaround and opportunities from renewables sector Historical Trends + Resumption in order intake from 2019 from successful offering for renewables sector * Revenue growth
Slide 62: Mechanical components and Electronics Infrastructure
Mechanical components and Electronics Infrastructure • • • • • • 2022 • 62
Slide 63: Consolidated Financials: Income Statement
Financials & Guidance FINCANTIER! Consolidated Financials Income Statement Gradual improvement in Revenues and EBITDA margins underpinned by solid assumptions Historical Trends Targets Consolidated R »€ bi + Revenues grew 8.4% CAGR from 2019 to 2022, despite Covid-19 onsotidated Revenues " + Average
Slide 64: Consolidated Financials: Cash Flows & Balance Sheet
Financials & Guidance FINCANTIER! Consolidated Financials Cash Flows & Balance Sheet Financial discipline aimed at maximising cash flows and reducing financial leverage to 2.5-3.5x by 2027 Historical Trends Targets CAPEX/D&A, € mln + NWC quickly recovered from Covid-19 impact reaching 7-8% of Revenu
Slide 65: Financials & Guidance
Financials & Guidance FINCANTIERI 2023 2024 2025 2027 Revenues ~7.6 bn ~8.0 bn ~8.8 bn ~9.8 bn Strong Revenues thanks to backlog and robust order intake to 2027 streamlining Fincantieri’s undisputed market leadership position EBITDA Margins ~ Bio ~ 6% ~ 7% ~ 8% Margin factor in inflation volatility
Slide 66: Agenda
Slide 67: Business, Financials, ESG & Sustainability
• • Business • • • • Financials • • • ESG & • Sustainability • 67
Slide 68: Q&A
Slide 69: 2023-2027 Strategic Plan
2023-2027 Strategic Plan FINCANTIERI