Fincantieri S.p.A. · MIL:FCT
Fincantieri — Investor Day (December 2023)
50 slides from Fincantieri's investor day presentation, Dec 15, 2023
Slide 1: Investors Meeting
TING TORS www.fincantieri.com INCANTIERI
Slide 2: Agenda
Agenda Fincantieri at a glance 9M 2023 fully on track with guidance Business Plan 2023-2027 update Focus on Underwater domain Remazel acquisition Concluding remarks 2
Slide 3: Italian Group with a global footprint
Italian Group with a global footprint • Leading player in Shipbuilding with a strong competitive positioning thanks to technology, innovation and best-in-class execution • Growth led by organic diversification, global production capacity and wide client base. 3
Slide 4: We are leading shipbuilders with a vision for green and digital ships
We are leading shipbuilders with a vision to provide a comprehensive service proposition of the life-cycle of green and digital ships Shipbuilding Infrastructure Cruise Defence Offshore Infrastructure capabilities in >40% global market share Sole supplier to the Italian Navy Prime mover in Offshore
Slide 5: Fincantieri has unique competitive strengths to meet customer needs
Fincantieri has unique competitive strengths to meet customer needs 18 Shipyards In 4 Continents Cruise Leadership Production Global Production & Scale to address Project Services Naval in the geopolitical 3 Core Businesses macrotrends Offshore Vertical Integration to Drive the New Paradigm • Scale
Slide 6: Ready to exploit opportunities driven by market macro-trends
Ready to exploit opportunities driven by market macro-trends Cruise market rebound, Expenditure on naval Growth in offshore wind Commodity and energy Challenging Emissions with passengers estimated assets is projected to grow sector offers strong costs increased as a result reduction targets (-40% i
Slide 7: Agenda
Agenda Fincantieri at a glance 9M 2023 fully on track with guidance Business Plan 2023-2027 update Focus on Underwater domain Remazel acquisition Concluding remarks 7
Slide 8: 9M 2023 fully on track with guidance
9M 2023 fully on track with guidance Revenues EBITDA Order Intake Net Financial Position 5,315 5,383 276 4,040 2,531 2,705 3,285 172 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 FY 2022 9M 2023 8
Slide 9: Focus on Net debt profile
Focus on Net debt profile € Mln • • 9
Slide 10: Medium-long term debt maturity profile fully sustainable
Medium-long term debt maturity profile fully sustainable MLT debt maturity profile @30sept23 ~ 4.3% € Mln Variable rate ~20% Fixed rate ~80% ~ 67% ~ 44% 10
Slide 11: Newly awarded landmark projects
Newly awarded “landmark” projects CRUISE NAVAL OFFSHORE • • • • • • • • • 11
Slide 12: Solid backlog with strong visibility up to 2030
Solid backlog with strong visibility up to 2030 Shipbuilding – Cruise Segment Shipbuilding – Naval Segment Offshore & Specialized Vessels 12
Slide 13: Cruise and Environmental Sustainability
Cruise and Environmental Sustainability ▪ ▪ ▪ ▪ ▪ ▪ CRUISE ▪ ▪ ▪ ▪ 13
Slide 14: Naval and Offshore
Naval and Offshore ▪ ▪ NAVAL ▪ ▪ ▪ ▪ ▪ OFFSHORE ▪ ▪ ▪ 14
Slide 15: Agenda
Agenda Fincantieri at a glance 9M 2023 fully on track with guidance Business Plan 2023-2027 update Focus on Underwater domain Remazel acquisition Concluding remarks 15
Slide 16: Key Assumptions for the Business Plan – Top Line
Key Assumptions for the Business Plan – Top Line € 33 bn at Q3 2023 Order intake resumption driven Maintain global leadership, Total backlog including by passenger dynamics and green deliver backlog, improve softbacklog at € 10.4 bn transition profitability Shipbuilding Growth in defence budgets, Ex
Slide 17: Key Assumptions for the Business Plan – Margins & Leverage
Key Assumptions for the Business Plan – Margins & Leverage • • • • • • • • • • • • • 17
Slide 18: Income Statement
Income Statement Consolidated Revenues, € bn • Revenues grew 8.4% CAGR from 2019 to 2022, despite Covid-19 • Average EBITDA margin of 6.3% from 2019 to 2021, demonstrating the solidity of the core business ~8.8 ~9.8 7.4 ~7.6 ~8.0 • 2022 EBITDA impacted by raw material and inflationary pressures and
Slide 19: Cash Flows & Balance Sheet
Cash Flows & Balance Sheet CAPEX/D&A, € mln • NWC quickly recovered from Covid-19 impact reaching 7-8% of Revenues in 2021 and 2022 • Cumulative capex in excess of € 1.2 bn from 2019 to 2022 resulting in state of the art facilities 1.3 1.2 0.9 0.9 0.7 • Financial indebtedness with no covenants 2022
Slide 20: 2023-27 Business Plan guidelines
2023-27 Business Plan guidelines 2023 2024 2025 2027 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 5% 6% 7% 8% Margin factor in inflation volatility Execution of strategic
Slide 21: 5 strategic pillars to support delivery
5 strategic pillars to support delivery Focus on Core Financial Industrial Life-Cycle System Business Discipline Sustainability Management Integration Review product portfolio, Optimization of First Net Zero vessel Development of digital Strengthen Fincantieri maximize efficiency and push procuremen
Slide 22: 10 strategic projects underpinning the 5 strategic pillars
10 strategic projects underpinning the 5 strategic pillars 10 Working Teams fully committed to successfully reaching milestones and targets 1. Operations 5. Procurement 7. Green 9. Cruise digital 10.Whole warship excellence best practices transitioning offering capabilities 2. Competitive VARD 6. SG
Slide 23: Operations Excellence
Operations Excellence WORK PLAN & MILESTONE • • 98% • • Key Performance Indicators PLA Optimization Hull Stabilization Pre-assembly • • • • • • KEY GOALS 2024 additional savings 25 welding robots Operations Automation 23
Slide 24: Infrastructure de-risking & partnering
Infrastructure de-risking & partnering • consistent workload WORK PLAN & MILESTONE business profitability • De-risking and partnering • key competencies assets 98% Progress Update • • • • • KEY GOALS 2024 • data-driven risk awareness • order portfolio • best practice IT infrastructure 24
Slide 25: Whole Warship Integration
Whole Warship Integration Leonardo Orizzonte Sistemi Navali Whole Warship architecture Combat System Design Authority WORK PLAN & MILESTONE Objectives • capabilities and expertise high performance systems to the national customer • Position Fincantieri Prime Contractor in international contracts • •
Slide 26: Cruise Digital Offering
Cruise Digital Offering ANCILLARY Advanced Analytics SERVICES DATA SCIENCE AI/Other App OPEX DATALAKE SUPPLIER Progess Update TO BE Data CYBERSECURITY ANALYSIS CAPEX SUPPLIER Logic AUTOMATION Digital Integrator DNA Data-Driven decisions ENGINEERING Full ship integration Energy Efficiency TELCO Cyber
Slide 27: Energy Transition
Energy Transition WORK PLAN & MILESTONE 100% Progress Update • Green solutions • new fuels (methanol and hydrogen) for new cruise ship orde • Original Equipment Manufacturers (OEMs) introduction of new fuels • nuclear technology marine applications and a strategic agreement with Wartsila to define a
Slide 28: Road Map to Net-Zero for a large cruise vessel
Road Map to Net-Zero for a large cruise vessel 2022 2024 2025 2026 2027 2030 2035 Milestone First local zero First LNG vessel Minimal emissions Net-Zero with First LNG vessel High efficiency High efficiency emissions with zero emissions in in port with dual new fuels, ICE- with dual fuel MGO vessel
Slide 29: Marine Interiors
Marine Interiors WORK PLAN & MILESTONE • • 97% Key Performance Indicators Tendering Engineering Subcontracting Bill of materials KEY GOALS 2024 digital tools GEA and SAP Automation of the Bill Of Material Design for assembly 29
Slide 30: Vard Business Model
Vard Business Model much more promising WORK PLAN & MILESTONE volume of new orders 100% Key Performance Indicators Financials Order intake (€ mln) +70% 1,136 70% 1,016 12% 668 Q1 Q2 Q3 KEY GOALS 2024 Breakeven Leadership consolidation financial independence 30
Slide 31: Procurement Excellence
Procurement Excellence Optimizing procurement costs and identifying cross-functional and cross-divisional efficiencies on WORK PLAN & MILESTONE product, process and market levers 100% Roadmap • Analysis Group's expected expenditure over the Business Plan horizon • Focus • economic saving targets ove
Slide 32: Subcontractors
Subcontractors WORK PLAN & MILESTONE • • 100% • Progress • • • • KEY GOALS 2024 32
Slide 33: SG&A and Industrial Governance
SG&A and Industrial Governance WORK PLAN & MILESTONE Industrial Governance: defining and implementing effective processes to improve the governance 90% of the subsidiaries at an operational and managerial level, adapting the structure of the regulatory body and its methods of adoption PROGRESS SG&A
Slide 34: 3 ESG drivers responding to global socio-economic trends
3 ESG drivers responding to global socio-economic trends Innovation Inclusion Integrity Innovative and technological Protection, inclusion and development development for energy and digital Industrial excellence of people and communities transition 6 material topics and 18 goals 5 material topics an
Slide 35: Agenda
Agenda Fincantieri at a glance 9M 2023 fully on track with guidance Business Plan 2023-2027 update Focus on Underwater domain Remazel acquisition Concluding remarks 35
Slide 36: Strategic technologies for underwater domain
Strategic technologies for underwater domain CRITICAL INFRASTRUCUTRE ACOUSTIC MANNED – UNMANNED SIGNATURE UuV SWARM OPERATION UNDERWATER COMMUNICATION INTEROPERABILITY POWER SUPPLY NATIONAL UNDERWATER HUB 36
Slide 37: Required innovations in the naval defence field
Required innovations in the naval defence field Management of increased on-board electrical needs Reduction of needed crew Unmanned units New systems to be integrated on and remote control naval platforms Drone swarms and sensors Management of dynamic operational scenarios Digitalization of systems
Slide 38: Global Underwater Economy
Global Underwater Economy (Estimates 2024 - 2030) 38
Slide 39: Fincantieri as the national leader in the underwater space
Fincantieri as the national leader in the underwater space • • • • • • • • • • 1896 Today 180 submarines built since the early 1st Italian submarine 1900s "Delfino" 39
Slide 40: The challenges of the underwater domain
The challenges of the underwater domain Hostile environment Navigation and positioning DEFENCE OPERATIONS Communication Limited endurance Environmental impact Safety 40
Slide 41: Agenda
Agenda Fincantieri at a glance 9M 2023 fully on track with guidance Business Plan 2023-2027 update Focus on Underwater domain Remazel acquisition Concluding remarks 41
Slide 42: Agreement on the acquisition of Remazel
Agreement on the acquisition of Remazel A step forward in the execution of the 2023-2027 Business Plan, consolidating Fincantieri positioning as system integrator in fast growing sectors The deal Ramazel Rationale for the profile acquisition Set the main terms and conditions Global leader in the des
Slide 43: Investment in Remazel to accelerate the Business Plan
Investment in Remazel to accelerate the Business Plan Underwater • Offshore Wind (fixed and floating) Fincantieri • 2023-2027 Oil&Gas • After sales services 43
Slide 44: Strategic vision
Strategic vision CORE BUSINESS LINES OTHER BUSINESSES Underwater Offshore Offshore Combustion and Service & Wind Oil&Gas Cranes After sales 44
Slide 45: Market expectations for the 6 business lines
Market expectations for the 6 business lines Business lines Market expectations and new orders estimation Underwater and • Wind Offshore • CORE LINES Offshore • Oil&Gas Cranes • OTHER LINES Combustion • Service & Spare • Parts 1. Original Equipment Manufacturer 45
Slide 46: High potential opportunities for Fincantieri
High potential opportunities for Fincantieri Underwater Offshore vessels ADDITIONAL Floating Wind offshore POTENTIAL Mechanical components BENEFITS Lifting systems After-sale services Further growth 46
Slide 47: Remazel key KPIs
Remazel key KPIs FY 2022 FY 2023E REVENUES 107.3 104.4 EBITDA 9.1 11.9 EBITDA MARGIN 8.5% 11.4% 47
Slide 48: Agenda
Agenda Fincantieri at a glance 9M 2023 fully on track with guidance Business Plan 2023-2027 update Focus on Underwater domain Remazel acquisition Concluding remarks 48
Slide 49: Concluding remarks
Concluding remarks ▪ ▪ ▪ ▪ ▪ ∼ ▪ ∼ ▪ ▪ 49
Slide 50: Investors Meeting
INVESTORS MEETING www.fincantieri.com FINCANTIERI