Fincantieri S.p.a. · MIL:FCT
Fincantieri — Equita Engineering & Construction Conference 2021
35 slides from Fincantieri's conference presentation, Apr 15, 2021
Slide 1: Equita Engineering & Construction Conference
FINCANTIERI E Q U I TA - E N G I N E E R I N G & C O N S T R U C T I O N CONFERENCE 15th April 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: Table of Contents
Table of Contents SECTION 1 SECTION 2 SECTION 3 DESCRIPTION FINANCIAL S T R AT E G Y OF THE GROUP OVERVIEW & OUTLOOK APPENDIX
Slide 4: Description of the Group
SECTION 1 DESCRIPTION OF THE GROUP
Slide 5: Fincantieri at a glance
Fincantieri at a glance We are an Italian Group with a global footprint 49% of our employees are based in Italy and 87% of revenues come from international clients • ~ € 5.9 bn Revenues in FY2020, OUR 87% of which come from FIGURES international clients • € 35.7 bn Total Backlog(1) • 18 shipyards in
Slide 6: Products, clients and backlog
Products, clients and backlog Diversified product portfolio with a wide client base and strong backlog Main products Key clients Revenues 2020(1) Backlog(2) (4) (5) Cruise • All cruise ships: Luxury/Niche(3) €3,281 m Upper Premium Premium 50.1% Contemporary Naval € 26,088 m Shipbuilding Ital
Slide 7: Markets and positioning
Markets and positioning Leadership in high-potential reference markets and solid track record End markets Market Trend Main Drivers Track Record Cruise • A successful rollout of vaccination campaigns will be key to industry recovery • World leader in the design and construction of • Significant impa
Slide 8: Focus: cruise client portfolio
Focus: cruise client portfolio Consolidated capability to acquire new clients and diversify product portfolio Today Luxury / Niche 2002 Premium Upper Premium Contemporary Premium Carnival brands Norwegian Cruise Lines brands Contemporary Royal Caribbean brands 8
Slide 9: Key competitive strengths
Key competitive strengths Consolidated leadership, high diversification and flexible global production network 1. 2. Consolidated leadership in diversified High diversification in terms of end markets and sizeable backlog market, geography and client portfolio • Leader in cruise market and in naval
Slide 10: Ownership and Group structure
Ownership and Group structure A listed company with strong reference shareholders Simplified ownership and Group structure Italian Ministry Italian Banking Treasury Shares of Economy and Finance Foundations • Fincantieri shares are listed on the Milan Stock Exchange since July 3, 2014 82.77% 15.93%
Slide 11: Financial Overview
SECTION 2 FINANCIAL OVERVIEW
Slide 12: 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 13: Executive summary
Executive summary Solid 2020 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 14: 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 15: 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 16: Backlog ramp-up and conversion of soft backlog into backlog
Backlog ramp-up and conversion of soft backlog into backlog Order intake Total backlog(1) € mln € mln 1.7x 1.6x 1.5x 0.8x 5.2x 6.2x 5.6x 6.1x 4.4x 4.7x 4.9x 4.7x 8,554 8,617 8,692 35,681 33,824 32,690 4,100 7,900 26,153 8,300 4,100 4,526 8,300 5,800 28,590 27,781 25,524 22,053 4,100 4,100 FY 2017 FY
Slide 17: 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 18: 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 19: 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 7.2% 368 Offs
Slide 20: 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- 47 through activities Q1 Q2 Q3 Q4 50 Lost EBITDA First half was heavily impacted by contribution 15 6 9 COVID-19
Slide 21: 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 22: Historical evolution of Net Working Capital and Net Financial Position
Historical evolution of Net Working Capital and Net Financial Position Net Working Capital(1) Net Financial Position(2) € mln € mln (120) 44 (125) (202) (314) (494) (736) (1,062) 3,045 3,557 2,393 2,660 1,447 757 475 432 (624) (632) (811) (482) (485) (399) (375) (1,325) (264) (1,889) (1,984) (766) (
Slide 23: 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 881 828 96 76 1,963 Net financial position impacted by 1,415 the pos
Slide 24: Strategy & Outlook
SECTION 3 m STRATEGY & OUTLOOK FINCANTIERI The sea ahead
Slide 25: 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 26: 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 27: 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 28: Appendix
APPENDIX FINCANTIERI The sea ahead
Slide 29: Deep dive on VARD
Deep dive on VARD Structural growth in sustainable business Additional global installation capacity (GW/Y)(1) 3.7 x 26 7% 19 5% 5% 24% 18% • Yearly additional global installation capacity expected to almost quadruple by 7 2030 3 42% 2 • The EU is raising its climate targets for 2030 and is committed
Slide 30: Overview of financial performance indicators
Overview of financial performance indicators(1) € mln FY 2017(2) FY 2018(2) FY 2019(2) FY 2020 Order intake 8,554 8,617 8,692 4,526 Total backlog 26,153 33,824 32,690 35,681 Of which backlog 22,053 25,524 28,590 27,781 Of which soft backlog 4,100 8,300 4,100 7,900 Revenues 5,020 5,416 5,849 5,879 EB
Slide 31: Financial performance: Historical revenues
Financial performance: Historical revenues Revenues breakdown by segment(1) € mln 5,879 5,849 5,416 937 5,020 899 651 327 389 558 11 7 623 676 18 22 1,503 1,938 1,434 1,212 5,145 5,226 4,678 4,267 3,631 3,033 3,226 3,281 (481) (536) (522) (673) FY 2017(2) FY 2018(2) FY 2019(2) FY 2020 Shipbuilding O
Slide 32: Financial performance: EBITDA
Financial performance: EBITDA EBITDA breakdown by segment(1)/margin(2) € mln 6.8% 7.8% 5.5% 5.3% 421 320 11.2% 73 341 10.0% 90 314 11.5% 64 8.1% 76 6.1% 41 8.5% 395 7.2% 368 6.3% 5.4% 285 270 (34) -2.1% (13) -1.3% (5) (34) -30.4% (42) (99) (39) FY 2017(3) FY 2018(3) FY 2019(3) FY 2020 Shipbuilding O
Slide 33: Financial performance: historical EBIT and Net result
Financial performance: historical EBIT and Net result EBIT / margin Net result before extraordinary and non recurring items(1) € mln € mln 114 91 4.4% 5.3% 2.6% 2.5% 117 95 (4) (3) (37) (64) (5) (7) (42) (71) FY 2017 FY 2018 FY 2019 FY 2020 of which Group of which minority interests Net result € mln
Slide 34: Capex: historical trend
Capex: historical trend Capex evolution Capex by segment € mln € mln 3.2% 2.9% 4.8% 5.3% 309 309 279 24 279 21 32 30 3 77 61 6 163 161 163 161 13 27 18 55 37 9 7 6 250 232 222 218 124 120 124 108 FY 2017 FY 2018 FY 2019 FY 2020 FY 2017 FY 2018 FY 2019 FY 2020 Property, plant and equipment Intangible
Slide 35: 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
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