Fincantieri S.p.a. · MIL:FCT
Fincantieri — Kepler Cheuvreux Italian Investment Conference 2018
28 slides from Fincantieri's conference presentation, May 2018
Slide 1: Update post Q1 2018 Results
FINCANTIERI Update post Q1 2018 Results May, 2018
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 Q1 2018 results and outlook Section 3 Appendix - Historical financial performance 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 € 5,020 mln 2017 revenues 4 continents Romania China • 2 shipyards • 1 Joint Venture ~ € 27.7 bln total backlog(2,3) ~ 19,500 employees • € 21.8 bln backlog
Slide 6: Business units, products and positioning
Business units, products and positioning End markets Main products Positioning Revenues 2017(4) Backlog(5) Cruise • All cruise ships • #1 worldwide (from large contemporary ships to (~45% market share(1)) small luxury and expedition ships) € 2,649 mln (49.2% on total) Naval • All surface vessels (al
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: Q1 2018 results
Section 2 Q1 2018 results Skandi Africa DOF Ship of the Year 2015
Slide 9: Q1 2018 Key Messages
Q1 2018 Key Messages • Q1 2018 results in line with Business Plan 2018-2022 targets: revenues up 11% vs Q1 2017 and EBITDA margin at 7.3% vs 6.0% in Q1 2017 (+22%) • Total backlog(1) at € 27.7 bln covering ~5.5 years of work if compared to 2017 revenues: • Backlog at € 21.8 bln (104 ships) up from €
Slide 10: Q1 2018 main orders and main deliveries
Q1 2018 main orders Vessel Client Delivery Shipbuilding 2 Cruise ships Viking Ocean Cruises 2022-2023 Offshore 2 Expedition cruise vessels Ponant 2020 Q1 2018 main deliveries Cruise ship “Carnival Horizon” Carnival Cruise Line Monfalcone (Carnival Corporation) Shipbuilding Oceanographic vessel Insti
Slide 11: Overview of financial performance indicators
Overview of financial performance indicators(1) € mln FY 2015 FY 2016 FY 2017 Q1 2017 Q1 2018 Order intake 10,087 6,505 8,554 3,546 1,076 Total backlog 18,721 24,031 26,153 26,560 27,730 Of which backlog 15,721 18,231 22,053 20,760 21,830 Of which soft backlog 3,000 5,800 4,100 5,800 5,900 Revenues
Slide 12: Order intake and backlog – by segment
Order intake and backlog – by segment Order intake Total backlog(1) € mln € mln 3.2x 0.9x 6.0x 5.2x 5.5x 3,546 5,900 5,800 4,100 129 210 1,186 1,196 1,180 1,418 1,363 1,444 3,301 Backlog Backlog Backlog 20,760 20,238 22,053 20,005 21,830 1,076 18,859 167 217 750 (94) (58) (723) (789) (734) Q1 2017 Q
Slide 13: Backlog deployment
Backlog deployment Shipbuilding Offshore # ships deliveries(1) # ships deliveries Cruise Naval(2) 2018 1 4 5 2018 1 6 7 2018 6 26 32 2019 4 2019 4 2019 15 2 17 2020 5 2020 4 2020 2 2021 5 2021 5 2021 1 2022 3 1 4 2022 5 2022 - Delivered in Q1 2018 New orders in Q1 2018 • Additional 5 units scheduled
Slide 14: Revenues and EBITDA – by segment
Revenues and EBITDA(1) – by segment Breakdown by segment(2) EBITDA and EBITDA margin € mln € mln 1,226 6.0% 7.3% 1,104 167 12.6% 97 8.3% 245 210 89 18.4% 18.1% 9.2% 15 67 9 3.5% 11.0% 11 4.4% 9 857 916 73.6% 69.0% 8.0% 74 6.4% 55 (60) (102) (8) (9) Q1 2017 Q1 2018 Q1 2017 Q1 2018 Shipbuilding Offsho
Slide 15: Net working capital and net debt
Net working capital and net debt(1) Breakdown by main components Comments € mln FY 2017 Q1 2018 • Net working capital and net debt dynamics related to the production volumes in cruise and the cash-in of Inventories and advances to the final installments for the cruise suppliers 869 835 ships deliver
Slide 16: Outlook
Outlook • 2018 results expected to be in line with 2018-2022 Business Plan targets Shipbuilding • Expected delivery of 10 units, of which 4 cruise ships and 6 naval vessels • Italian Navy’s fleet renewal program fully operational • Start of design activities related to the Qatari order Offshore • On
Slide 17: Short and medium term financial targets
Short and medium term financial targets € BN, % +18/20% +17/21% +3/6% 5.0 Revenues 2017A 2018E 2020E 2022E ~7.5% ~8.0% 8.0-9.0% 6.8% EBITDA margin 2017A 2018E 2020E 2022E € BN 0.4-0.6 Net debt 0.3 0.2-0.4 0-0.1 2017A 2018E 2020E 2022E 17
Slide 18: Shipbuilding: quantifying main drivers of growth and increasing profitability
Shipbuilding: quantifying main drivers of growth and increasing profitability Cruise ships by delivery year: prototypes, sister ships and quasi-sister ships % Cruise: mix • Deliveries heavily skewed Sister ships prototypes/ and quasi- towards sister ships with sister ships and 80% 80% 80% sister shi
Slide 19: Appendix: Historical financial performance
Section 3 Appendix Historical financial performance
Slide 20: Financial performance
Financial performance Revenues(1) EBITDA / margins(2) € mln € mln 5,020 -0.6% 6.0% 6.8% 558 4,429 341 4,183 495 943 498 64 11.5% 22 267 960 42 4.4% 1,199 12 1,212 62 12.5% 23 1,156 51 5.3% 1,056 3,883 3,246 269 6.9% 2,652 2,649 2,078 185 5.7% 1,573 42 8.4% (166) (272) (364) (31) (34) -1.3% (34) (3)
Slide 21: Financial performance
Financial performance EBIT / margins Net result before extraordinary and non recurring items(1) € mln € mln 91 60 66 95 -3.3% 3.5% 4.4% (6) (4) (141) (111) (252) FY 2015 FY 2016 FY 2017 221 157 of which Group of which minority interests Net result € mln 14 53 (137) 25 57 (11) (4) (175) FY 2015 FY 20
Slide 22: Capex
Capex Capex evolution Capex by segment € mln € mln 3.8% 5.1% 3.2% 224 224 20 8 80 31 161 163 161 163 13 27 39 55 10 9 31 37 165 144 122 108 107 90 (1) (1) FY 2015 FY 2016 FY 2017 FY 2015 FY 2016 FY 2017 Property, plant and equipment Intangible assets % of Revenues Shipbuilding Offshore Equipment, Sy
Slide 23: Net working capital
Net working capital(1) Breakdown by main components € mln FY 2015 FY 2016 FY 2017 405 Inventories and advances to suppliers 590 835 1,876 604 Work in progress net of advances from customers 648 Trade receivables 1,123 909 560 Other current assets and liabilities 59 1 (196) (678) (624) Construction l
Slide 24: Net financial position
Net financial position(1) Breakdown by main components € mln – Net cash / (Net debt) FY 2015 FY 2016 FY 2017 Non-current financial receivables 113 123 Current financial receivables 53 115 35 33 260 220 274 Cash & cash equivalents (263) Short term financial liabilities (453) (482) Long term financial
Slide 25: 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 26: Profit & Loss and Cash flow statement
Profit & Loss and Cash flow statement Profit & Loss statement (€ mln) FY 2015 FY 2016 FY 2017 Revenues 4,183 4,429 5,020 Materials, services and other costs (3,337) (3,291) (3,742) Personnel costs (865) (846) (909) (1) Provisions (7) (25) (28) EBITDA (26) 267 341 Depreciation, amortization and impai
Slide 27: 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 2015 FY 2016 FY 2017 A Net result before extraordinary and non recurring items(1) (252) 60 91 Attributable to owners of the parent (141) 66 95 B Extraordinary and non recurri
Slide 28: Balance sheet
Balance sheet Balance sheet (€ mln) FY 2015 FY 2016 FY 2017 Intangible assets 518 595 582 Property, plant and equipment 974 1,064 1,045 Investments 62 58 53 Other non-current assets and liabilities (44) (69) 122 Employee benefits (57) (58) (59) Net fixed assets 1,453 1,590 1,743 Inventories and adva
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