Slide 1: FY 2020 Results
FY 2020 R ESULTS February 26, 2021 www.fincantieri.com
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: Agenda
Agenda S T R AT E G I C O V E R V I E W S U M M A R Y & B U S I N E S S U P D AT E F I N A N C I A L R E S U LT S OUTLOOK APPENDIX
Slide 4: Strategic overview
Strategic overview Resilience: let’s start again from where we never stopped Effective response to the COVID-19 pandemic with the paramount goal of protecting our people Long-standing credibility and financial soundness have enabled us to keep our backlog and delivery schedule intact Strong project
Slide 5: Summary & Business Update
SUMMARY & BUSINESS UPDATE FINCANTIERI The sea ahead
Slide 6: Executive summary
Executive summary Ensuring employee health and safety and preserving backlog are our top priorities Ready to get back on our growth path Succesfully managed to keep our people safe, with ~4% tested positive and 91% satisfaction expressed by our employees over the COVID-19 spread prevention measure
Slide 7: Executive summary
Executive summary Solid FY results despite COVID-19 related shortfall in revenue of ~€1 bn and ~3.2 mln production hours EBITDA (€ mln) Net debt (€ mln) €1,055 mln COVID-19 related shortfall in revenue, Revenues (€ mln) i.e. ~3.2 mln production hours lost 5.5% 5.3% 6.1% 1,062 5,849 5,879 5,191 €
Slide 8: Business update
Business update Continuous focus on strategic development 7 cruise ships successfully delivered, 5 from the Italian shipyards and 2 from the Norwegian shipyards, testify the CRUISE resilience of the cruise industry, that is firmly committed to a new restart Outstanding commercial achievements in
Slide 9: New orders
New orders Leveraging our solid track-record in the Naval, while expanding our presence in Wind Offshore Segment Vessel Client Expected Delivery Shipbuilding FFG(X) first-in-class frigate US Navy 2026 2 FREMM frigates(1) Italian Navy 2025 2 U212 NFS submarines(1) Italian Navy 2027-2029 Offshore
Slide 10: Main deliveries
Main deliveries 7 cruise ships successfully delivered as per pre-pandemic schedule The delivery of Enchanted Princess, our 100th cruise ship, amid the pandemic, is an historic achievement Segment Vessel Client Shipyard Shipbuilding Cruise ship “Seven Seas Splendor” Regent Seven Seas Cruises Ancona
Slide 11: Backlog deployment
Backlog deployment Improved visibility up to 2029 in the Naval and 13 new units acquired in the Offshore & Specialized Vessels Shipbuilding Offshore & Specialized Vessels # ship deliveries # ship deliveries CRUISE 2020 8 NAVAL 2020 4 2020 7 2021 7 2021 8 2021 4 2022 8 2022 9 2022 2 9 11 2023 9 2023
Slide 12: Financial Results
FINANCIAL RESULTS FINCANTIERI The sea ahead
Slide 13: Order intake and backlog
Order intake and backlog Strong contribution from the Naval and significant recovery of the Offshore on Y/Y comparison Order intake breakdown by segment Total backlog breakdown by segment(1) € mln € mln 5.6x 6.1x 1.5x 0.8x 4.9x 4.7x Order intake at €4.5 bn 35,681 32,690 ~ €1.3 bn order for 2 subma
Slide 14: Revenues
Revenues Steady top line YoY despite the effect of €1,055 mln Covid-19 related shortfall in revenue Revenues breakdown by segment(1) € mln 5,879 5,849 5,191 Steady top line YoY (+0.5%) including the 899 937 effect of €690 mln pass-through activities 327 389 7 937 (Naval), despite Covid-19 related re
Slide 15: EBITDA
EBITDA Robust EBITDA despite €80 mln COVID-19 related EBITDA shortfall EBITDA breakdown by segment(1) € mln 5.5% 5.3% 6.1% EBITDA margin at 6.1% excluding 320 pass-through activities 10.0% 90 314 314 €58 mln lost EBITDA contribution 76 76 8.1% 8.1% from Shipbuilding due to Covid-19 368 Offshore
Slide 16: 2020 performance by quarter
2020 performance by quarter Beyond COVID-19: our route towards recovery € mln Revenues, 1,657 1,307 1,165 EBITDA, 1,062 6.9% 5.5% 7.0% EBITDA Margin (%) 4.4% 72 81 114 - excluding pass-though 47 activities Q1 Q2 Q3 Q4 50 Lost EBITDA First half was heavily impacted by contribution 15 6 9 COVID-19 Q
Slide 17: Net result
Net result Impact from COVID-19 extraordinary costs, including reduced operating leverage after production halt FY 2020 net result and adjusted net result(1) € mln -0.7% 0 Extraordinary and non-recurring items include: €196 mln COVID-19 Profit/(loss) Asbestos related Other Tax effect Discontinued
Slide 18: Capex
Capex Preserving our long-term capex program for enhancing technological innovation and scale up of US operations Capex by segment € mln 4.8% 5.3% 309 279 24 Adjusting production capacity at 21 32 Italian yards % of Revenues 30 3 Improving general safety and Other activities 6 environmental co
Slide 19: Net working capital and net financial position
Net working capital and net financial position Improved quality of total debt q/q with greater reliance on construction loans Net Working Capital breakdown by component Net Financial Position breakdown by component(1) € mln € mln 881 96 828 76 1,963 Net financial position impacted by 1,415 the pos
Slide 20: Outlook
OUTLOOK FINCANTIERI The sea ahead
Slide 21: Focus on cruise
Focus on cruise More efficient and eco-friendly fleets will make shipbuilding demand thrive EU operations partially resumed, while US operations still voluntarily suspended U P D AT E O N The success of vaccination programs is key to industry recovery, with a phased-in return expected from 2H 20
Slide 22: 2021 Company outlook (1/2)
2021 Company outlook (1/2) Programmed production ramp-up in order to catch-up with the revenue shortfall in 2020 SHIPBUILDING Cruise: 5 ships to be delivered from Italy and 2 from Norway Naval: 5 vessels to be delivered from Italy and 3 from the US. Kick-off of the preliminary operations for t
Slide 23: 2021 Company outlook (2/2)
2021 Company outlook (2/2) Revenues(1) € bn +25/30% 6.5 – 6.8 Significant ramp-up expected with acceleration in production programmes and 5.2 REVENUES strong focus on the execution of the backlog, in view of the substantial program of deliveries 2020A 2021E EBITDA margin(1) EBITDA Return to prof
Slide 24: Investor Relations contacts
Investor Relations contacts I N V E S T O R R E L AT I O N S T E A M 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 SHAREHOLD
Slide 25: Fincantieri - The sea ahead
FINCANTIERI The sea ahead
Slide 26: Appendix
APPENDIX FINCANTIERI The sea ahead
Slide 27: Financial overview – Shipbuilding
Financial overview – Shipbuilding Orders, backlog and deliveries Revenues EBITDA Capex € mln € mln € mln 11 7 7.2% 5.4% 6.3% Orders: €3,716 mln (€8,098 mln in 7 1,503 1,938 FY 2019 - Restated) 1,250 - 1 guided-missile frigate(1) 5,145 5,226 - 2 FREMM frigates 4,538 368 3,631 3,281 3,281 285 285 25
Slide 28: Financial overview – Offshore & Specialized Vessels
Financial overview – Offshore & Specialized Vessels Orders, backlog and deliveries Revenues EBITDA Capex € mln € mln € mln -30.4% -1.3% Orders: €487 mln (€165 mln in FY 2019 - Restated) including: - 3 fishing vessels -5 - 1 SOV 389 327 -99 - 1 cable-laying vessel 6 - 8 robotic vessels 3 FY 2019 –
Slide 29: Financial overview – Equipment, Systems & Services
Financial overview – Equipment, Systems & Services Orders, backlog and deliveries Revenues EBITDA Capex € mln € mln € mln 10.0% 8.1% Orders: €649 mln vs €842 mln in FY 2019 Backlog: €1,839 mln vs €1,736 899 937 mln in FY 2019 90 76 30 32 FY 2019 FY 2020 FY 2019 FY 2020 FY 2019 FY 2020 EBITDA Mar
Slide 30: Financial overview – Profit & Loss and Cash flow statement
Financial overview – Profit & Loss and Cash flow statement € mln FY 2019 FY 2020 FY 2020(1) Revenues 5,849 5,879 5,191 Materials, services and other costs (4.497) (4,613) (3,925) Personnel costs (996) (917) (917) Provisions(1) (36) (35) (35) EBITDA 320 314 314 Depreciation, amortization and impairme
Slide 31: Financial overview – Balance sheet
Financial overview – Balance sheet € mln FY 2019 FY 2020 Intangible assets 654 629 Right-of-use asset 90 85 Property, plant and equipment 1,225 1,301 Investments 75 105 Other non-current assets and liabilities (79) (25) Employee benefits (60) (60) Net fixed assets 1,905 2,035 Inventories and advance