Slide 1: 1H 2022 Results
1H 2022 R ESULTS July 27, 2022 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
E xe c u t i ve S u m m a r y B u s i n e s s U p d ate F i n a n c i a l Re s u l t s Outlook C o n c l u d i n g Re m a r ks Appendix
Slide 4: Executive Summary
EXECUTIVE SUMMARY FINCANTIERI The sea ahead
Slide 5: Observations and early strategic priorities
1H 2022 Results Executive Summary Business update Financial results Outlook Concluding Remarks Observations and early strategic priorities Strategic review of infrastructure projects and other non core businesses Enhanced collaboration with Leonardo on defence business, envisioning a fully fledged p
Slide 6: Opening remarks
1H 2022 Results Executive Summary Business Update Financial Results Market Outlook Concluding Remarks Opening remarks + 16% € 90 mln € 24.1 bn 113 ships 8 ships 8.6 mln EBITDA backlog total backlog production revenues YoY delivered hours Positive operating performance affected by: - the results of a
Slide 7: Financial and operating highlights
1H 2022 Results Executive Summary Business Update Financial Results Market Outlook Concluding Remarks Financial and operating highlights (€ mln) Revenues EBITDA Net profit/(loss) 7.2% 2.6% 7 (234) 3,510 3,026 219 (234) 1H 2 021 1H 2 022 90 1H 2021 1H 2022 1H 2021 1H 2022 1H 2021 1H 2022 Net Financia
Slide 8: Business Update
BUSINESS UPDATE FINCANTIERI The sea ahead
Slide 9: Positive business operating performance across all segments
1H 2022 Results Executive Summary Business Update Financial Results Market Outlook Concluding Remarks Positive business operating performance across all segments 1H July ▪ Delivered Discovery Princess, the sixth unit ▪ Delivered Viking Mars, eighth unit of the ▪ MoA with MSC for the construction of
Slide 10: Implementing cutting-edge technologies to improve environmental performance
1H 2022 Results Executive Summary Business Update Financial Results Market Outlook Concluding Remarks Implementing cutting-edge technologies to improve environmental performance FIRST MAJOR AGREEMENT FOR NEW CONSTRUCTION AFTER THE PANDEMIC ▪ Long term partnership with MSC Cruises strengthened with a
Slide 11: Key ESG initiatives signed in 2022
1H 2022 Results Executive Summary Business Update Financial Results Market Outlook Concluding Remarks Key ESG initiatives signed in 2022 GREEN R&I program on energy efficiency, renewable energy generation systems for the production and distribution of hydrogen, fuel cells and circular economy Develo
Slide 12: Tireless effort to become a model of excellence acknowledged internationally
1H 2022 Results Executive Summary Business Update Financial Results Market Outlook Concluding Remarks Tireless effort to become a model of excellence acknowledged at the international level A- (D>A) Stable 56 (0>100) Positive Ratings 19.7 and (40>0) Positive (low risk) scores 1 70 (0>100) Positive 8
Slide 13: Innovation as key for future growth
1H 2022 Results Executive Summary Business Update Financial Results Market Outlook Concluding Remarks Innovation as key for future growth HYDROGEN AND ALTERNATIVE FUELS • ZEUS, Zero Emissions Ultimate Ship, the first experimental fuel cell-powered marine vessel equipped with a lithium-ion battery •
Slide 14: 8 vessels delivered and 10 ships ordered in 1H 2022
1H 2022 Results Executive Summary Business Update Financial Results Market Outlook Concluding Remarks 8 vessels delivered and 10 ships ordered in 1H 2022 8 deliveries Offshore – Brattvåg, Norway Offshore – Vung Tau, Vietnam Fishing vessel (Nergård Havfiske) – Q1 SOV (Ta San Shang Marine) – Q1 ◼ Crui
Slide 15: Well-balanced visibility and deliveries up to 2029
1H 2022 Results Executive Summary Business Update Financial Results Market Outlook Concluding Remarks Well-balanced visibility and deliveries up to 2029 Shipbuilding Offshore & Specialized Vessels # ship deliveries # ship deliveries CRUISE 2022 2 5 7 NAVAL 2022 3 4 7 OSV 2022 3 5 8 27 VESSELS 34 VES
Slide 16: Financial Results
FINANCIAL RESULTS FINCANTIERI The sea ahead
Slide 17: Solid backlog despite lower order intake
1H 2022 Results Executive Summary Business Update Financial Results Market Outlook Concluding Remarks Solid backlog despite lower order intake impacted by COVID-related sector slowdown Order intake breakdown by segment Total backlog breakdown by segment1 € mln € mln ▪ Order intake at €1.5 bn, impact
Slide 18: Revenues up 16.0% with positive contribution across all segments
1H 2022 Results Executive Summary Business Update Financial Results Market Outlook Concluding Remarks Revenues up 16.0% with positive contribution across all segments Revenues breakdown by segment1 € mln Revenues up 16.0% YoY at €3,510 mln +16.0% ▪ Shipbuilding up 6.5% YoY, with record production 3,
Slide 19: Positive operating performance over 7% margin, net of one offs
1H 2022 Results Executive Summary Business Update Financial Results Market Outlook Concluding Remarks Positive operating performance over 7% margin, net of 1H 2022 one offs EBITDA breakdown by segment € mln EBITDA margin at 2.6% impacted by lower marginality in Infrastructure, increased raw material
Slide 20: Net loss at €234 mln, due to 1H 2022 extraordinary items
1H 2022 Results Executive Summary Business Update Financial Results Market Outlook Concluding Remarks Net loss at €234 mln, due to 1H 2022 extraordinary items Walk EBITDA to Net Loss € mln ▪ Net result for 1H 2022 negative at €234 mln, despite positive business operating performance ▪ Extraordinary
Slide 21: Capex underpinning further efficiencies in engineering and production
1H 2022 Results Executive Summary Business Update Financial Results Market Outlook Concluding Remarks Capex underpinning further efficiencies in engineering and production processes Capex by segment € mln 5.3% 3.1% ▪ Capex at €108 mln to support further efficiencies to address new production scenari
Slide 22: NFP aligned to ESMA recommendations still affected by COVID-19 measures
1H 2022 Results Executive Summary Business Update Financial Results Market Outlook Concluding Remarks NFP aligned to ESMA recommendations still affected by COVID-19 measures Net Working Capital1 breakdown by component Net Financial Position1 breakdown by component € mln € mln ▪ Net financial positio
Slide 23: Market Outlook
MARKET OUTLOOK FINCANTIERI The sea ahead
Slide 24: Cruise full recovery expected in 2023. Naval likely to benefit from defence budgets
1H 2022 Results Executive Summary Business Update Financial Results Market Outlook Concluding Remarks Cruise full recovery expected in 2023. Naval likely to benefit from higher defence budget ▪ The US Centers for Disease Control and Prevention (CDC) has ended its COVID-19 program for cruise ships wh
Slide 25: Concluding Remarks
CONCLUDING REMARKS FINCANTIERI The sea ahead
Slide 26: Concluding remarks
1H 2022 Results Executive Summary Business Update Financial Results Market Outlook Concluding Remarks Concluding remarks Assuming no further deterioration of the current scenario, we expect: - Operations in full swing in 2H 2022 - 2022 revenues higher than in FY 2021 - Marginality improving, but at
Slide 27: Q&A
Q&A FINCANTIERI The sea ahead
Slide 28: Investor Relations contacts
Investor Relations contacts I N V E S TO R R E L AT I O N S T E A M Paola Dimario +39 040 319 2279 paola.dimario@fincantieri.it Caterina Venier-Romano +39 040 319 2229 caterina.venierromano@fincantieri.it Martina Saiu +39 040 319 2672 martina.saiu@fincantieri.it INSTITUTIONAL INVESTORS investor.rela
Slide 29: Appendix
APPENDIX FINCANTIERI The sea ahead
Slide 30: Focus on Shipbuilding
1H 2022 Results Focus on Shipbuilding Orders, backlog and deliveries Revenues EBITDA Capex € mln € mln € mln ▪ Orders: €691 mln (€1,077 mln in 1H 2021) 2,642 2,812 ▪ Backlog: €20,223 mln (€24,072 mln in 7.6% 6.0% 1H 2021) 789 911 ▪ Deliveries: - Discovery Princess for Princess 1,901 1,853 Cruises 20
Slide 31: Focus on Offshore & Specialized Vessels
1H 2022 Results Focus on Offshore & Specialized Vessels Orders, backlog and deliveries Revenues EBITDA Capex € mln € mln € mln ▪ Orders: €445 mln (€167 mln in 1H 2021) - 6 marine robotic vessels for Ocean Infinity 1.5% 2.5% - 1 fishery for Deutsche Fischfang – Union - 2 CSOV for Norwind 376 9 ▪ Back
Slide 32: Focus on Equipment, Systems & Services
1H 2022 Results Focus on Equipment, Systems & Services Orders, backlog and deliveries Revenues EBITDA Capex € mln € mln € mln ▪ Orders: €704 mln (vs €674 in 1H 2021) ▪ Backlog: €3,705 mln vs €3,642 mln in 6.9% -9.1% 1H 2021 729 39 19 562 12 (66) 1H 2021 1H 2022 1H 2021 1H 2022 1H 2021 1H 2022 EBITDA