Slide 1: Update post FY 2016 Results
FINCANTIERI Update post FY 2016 Results April, 2017
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: Table of Contents
Table of Contents Section 1 Introduction Section 2 Financial performance Section 3 Working capital and net financial position Q&A Carnival Vista Carnival Cruise Lines “ECO Notation” by Lloyd‘s Register for exceeding environmental standards
Slide 4: Introduction
Section 1 Introduction FREMM “Alpino” Italian Navy Best in class in terms of endurance
Slide 5: Fincantieri at a glance
Fincantieri at a glance #1 Western designer & shipbuilder(1) with 230 years of history & >7,000 ships built Norway • 5 shipyards 20 shipyards € 4,429 mln revenues 4 continents Romania China • 2 shipyards • 1 Joint Venture ~ € 24.0 bln total backlog(2) ~ 19,200 employees • € 18.2 bln backlog ~ 80,000
Slide 6: Business units, products and positioning
Business units, products and positioning End markets Main products Positioning Revenues 2016(4) Backlog Cruise • All cruise ships • #1 worldwide (from contemporary to luxury) (~45% market share(1)) € 2,078 mln (44.2% on total) Naval • All surface vessels (also stealth) • Leader: • Support & Special
Slide 7: Track record, clients and technological leadership
Track record, clients and technological leadership 1 Track record 2 Clients 3 Technological leadership Cruise (3) Ship deliveries • Carnival Vista: “ECO Notation” by Lloyd‘s • Twofold Register for exceeding environmental standards • 1990 – 2001 23 • Royal Princess: 1st cruise ship fully compliant in
Slide 8: Financial performance
Section 2 Financial performance Skandi Africa DOF Ship of the Year 2015
Slide 9: Overview of financial performance indicators
Overview of financial performance indicators(1) € mln FY 2014 FY 2015 FY 2016 Order intake 5,639 10,087 6,505 Total backlog 14,814 18,721 24,031 Of which backlog 9,814 15,721 18,231 Of which soft backlog 5,000 3,000 5,800 Revenues 4,399 4,183 4,429 EBITDA 297 (26) 267 As a % of revenues 6.8% -0.6% 6
Slide 10: Order intake and backlog
Order intake and backlog Order Intake Total backlog(1,2) € mln € mln 4.5x 5.4x 1.0x 1.7x 2.4x 1.5x 3.8x 4.1x 22,231 24,031 1,641 2,671 10,087 5,800 18,721 773 402 6% 1,155 3,000 1,361 5% 934 8% 6,505 1,143 7% 664 8,254 1,138 18,785 Backlog 474 9,194 Backlog 18,231 1,816 15,721 90% 16,372 89% 14,067
Slide 11: Backlog deployment
Backlog deployment Shipbuilding Offshore # ships deliveries(1) # ships deliveries Cruise Naval(2) 2016 5 2016 8 2016 13 2017 5 2017 10 2017 14 6 20 2018 5 2018 3 2 5 2018 17 2019 4 2019 4 2019 4 2020 2 2 4 2020 2 1 3 2020 - 2021 1 2021 2 4 6 2021 - Delivered in FY 2016 New orders in FY 2016 • Additi
Slide 12: Financial performance
Financial performance Revenues(1) EBITDA / margins(2) € mln € mln 6.8% -0.6% 6.0% 4,429 4,399 4,183 (3) 495 297 192 498 267 11.1% 21 960 1,580 62 1,199 12 12.5% 6.8% 108 206 23 1,156 5.3% 51 1,056 1,059 3,246 2,704 2,652 7.2% 195 5.7% 185 2,078 1,439 1,573 8.4% 42 (77) (166) (272) (27) -1.3% (34) (3
Slide 13: Financial performance
Financial performance EBIT / margins Net result before extraordinary and non recurring items(1) € mln € mln 87 60 99 66 4.5% -3.3% 3.5% (12) (6) (141) (111) (252) FY 2014 FY 2015 FY 2016 198 157 of which Group of which minority interests Net result € mln 55 14 (137) 67 25 (12) (11) (175) FY 2014 FY
Slide 14: Capex
Capex Capex evolution Capex by segment € mln € mln 3.7% 3.8% 5.1% 224 224 20 8 80 31 162 161 162 161 12 13 5 10 38 39 47 31 165 144 124 122 98 107 (1) FY 2014 FY 2015 FY 2016 FY 2014 FY 2015 FY 2016 Shipbuilding Property, plant and equipment Intangible assets % of Revenues Offshore Equipment, System
Slide 15: Working capital and net financial position
Section 3 Working capital and net financial position Serene Private owner 2012 World Super Yacht Award (134 meters)
Slide 16: Working capital dynamics
Working capital dynamics Indicative payment terms Main phases of the shipbuilding process(1) Impact on net working capital Signing A First Cut B Launch C Delivery D Design / Project Hull Assembly and Outfitting and Development Pre-Outfitting Sea Trials • Increases during construction Cruise Duration
Slide 17: Net working capital
Net working capital(1) Breakdown by main components € mln FY 2014 FY 2015 FY 2016 405 Inventories and advances to suppliers 590 388 1,876 604 Work in progress net of advances from customers 1,112 1,123 Trade receivables 610 560 Other current assets and liabilities (18) 59 (196) (678) Construction lo
Slide 18: Net financial position
Net financial position(1) Breakdown by main components € mln – Net cash / (Net debt) FY 2014 FY 2015 FY 2016 Non-current financial receivables 90 82 Current financial receivables 113 552 53 115 Cash & cash equivalents 33 260 220 Short term financial liabilities (80) (263) (453) (600) Long term finan
Slide 19: Q&A
Q&A Serene Variable Pitch Propeller Private owner Horizon 2012class Worldfrigates Super Italian Navy Yacht Award (134 meters)
Slide 20: Appendix: FY 2016 results
Appendix FY 2016 results MSCVespucci Amerigo Armonia MSC - Renaissance Italian Programme Navy One of the most ancient training ships
Slide 21: FY 2016 Key Messages
FY 2016 Key Messages • Positive net result: at € 14 mln, up more than € 300 mln vs 2015 • Business Plan targets confirmed: FY 2016 results show substantial improvement compared to FY 2015 and confirm short and medium term guidance. Revenues up 5.9% (in line with 2016 target), EBITDA margin at 6.0% (
Slide 22: FY 2016 main orders
FY 2016 main orders Vessel Client Delivery 1 ultra-luxury cruise ship Regent Seven Seas Cruises 2020 (“Seven Seas Explorer” sister ship) (Norwegian Cruise Line Holdings) 1 Littoral Combat Ship US Navy 2020 Shipbuilding 1 cruise ship Princess Cruises 2020 (fifth “Royal Princess” class vessel) (Carniv
Slide 23: FY 2016 main deliveries (1/2)
FY 2016 main deliveries (1/2) Deliveries in Q4 Vessel Client Shipyard Cruise ship “Viking Sea” Viking Ocean Cruises Ancona Cruise ship “Koningsdam” (prototype) Holland America Line Marghera (Carnival Corporation) Cruise ship “Carnival Vista” Carnival Cruise Lines Monfalcone (prototype) Cruise ship “
Slide 24: FY 2016 main deliveries (2/2)
FY 2016 main deliveries (2/2) Deliveries in Q4 Vessel Client Shipyard OSCV “Skandi Açu” Techdof Brasil Vard Søviknes AHTS “Skandi Paraty” DOF Vard Niterói Offshore 3 LPG carriers “Barbosa Transpetro Vard Promar (Vard) Lima Sobrinho”, “Darcy Ribeiro” and “Lucio Costa” OSCV “Normand Maximus” Solstad O
Slide 25: Outlook
Outlook • 2017 results expected to be in line with the Business Plan guidance, following the positive performance in 2016 • Confirmed dividend distribution on 2017 net profit Shipbuilding • Further volume growth and margin improvement thanks to ‒ the start of construction works for cruise sister shi
Slide 26: Shipbuilding
Shipbuilding Highlights Comments € mln FY 2015(1) FY 2016 • 1 cruise ship for Princess • Orders: order intake at € 5,191 mln Order intake 9,194 5,191 Cruises taking backlog to € 16,372 mln Order book 18,539 20,825 • 1 cruise ship for Regent • Revenues: at € 3,246 mln, up 22.4% Seven Seas Cruises Bac
Slide 27: Offshore
Offshore Highlights Comments € mln FY 2015(1) FY 2016 • 4 expedition cruise vessels • Orders: order intake at € 1,138 mln taking for Ponant backlog to € 1,361 mln Order intake 402 1,138 • 2 expedition cruise vessels • Revenues: at € 960 mln, down 19.9% Order book 2,729 2,366 for Hapag-Lloyd − Reduct
Slide 28: Equipment, Systems and Services
Equipment, Systems and Services Highlights Comments € mln FY 2015(1) FY 2016 • Orders: order intake at € 664 mln taking Order intake 773 664 backlog at € 1,155 mln Order book 1,446 1,742 • Revenues: at € 495 mln Backlog 934 1,155 − The increase of volumes in after Revenues 498 495 sales services for
Slide 29: Financial appendix
Financial appendix
Slide 30: Profit & Loss and Cash flow statement
Profit & Loss and Cash flow statement Profit & Loss statement (€ mln) FY 2014 FY 2015 FY 2016 Revenues 4,399 4,183 4,429 Materials, services and other costs (3,234) (3,337) (3,291) Personnel costs (843) (865) (846) (1) Provisions (25) (7) (25) EBITDA 297 (26) 267 Depreciation, amortization and impai
Slide 31: Net result before extraordinary and non recurring items
Net result before extraordinary and non recurring items(1) Net result before extraordinary and non recurring items (€ mln) FY 2014 FY 2015 FY 2016 A Net result before extraordinary and non recurring items(1) 87 (252) 60 Attributable to owners of the parent 99 (141) 66 B Extraordinary and non recurri
Slide 32: Balance sheet
Balance sheet Balance sheet (€ mln) FY 2014 FY 2015 FY 2016 Intangible assets 508 518 595 Property, plant and equipment 959 974 1,064 Investments 60 62 58 Other non-current assets and liabilities (48) (44) (69) Employee benefits (62) (57) (58) Net fixed assets 1,417 1,453 1,590 Inventories and advan