Fincantieri S.p.A. · MIL:FCT
Fincantieri — Engineering & Construction Conference 2016 - Equita
28 slides from Fincantieri's conference presentation, Apr 7, 2016
Slide 1: Engineering & Construction Conference 2016 - Equita
FINCANTIERI Engineering & Construction Conference 2016 - Equita Milan, 7 April 2016
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, Net financial position and key ratios Q&A Royal Princess Princess Cruises 1° cruise ship fully compliant with the new safety and environmental rules
Slide 4: Introduction
Section 1 Introduction Littoral Combat Ship "Freedom" US Navy World's fastest steel frigate
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 21 shipyards € 4,183 MM revenues 4 continents Romania • 2 shipyards ~ € 15.7 BN backlog ~ 20,000 employees ~ € 3.0 BN soft backlog(2) ~ 80,000 subcontractors USA • 3 shipy
Slide 6: Products and end-markets
Products and end-markets = Key area SHIPBUILDING EQUIPMENT, OFFSHORE SYSTEMS Cruise Naval Others & SERVICES Leisure Defence Transportation / Oil & Gas / Other Equipment / Luxury / Life Cycle Management End Maintenance markets • All cruise ships • All surface vessels • High tech ferries • Offshore Su
Slide 7: Track record, top clients and technological leadership
Track record, top clients and technological leadership SHIPBUILDING OFFSHORE Cruise Naval • Since 1990 70 • Since 1990 101(2) • Since 1990 351(3) Track record • Since 2002 47 • Since 2002 50(2) • Since 2002 279(3) ships deliveries(1) • 2015 3 • 2015 5(2) • 2015 12(3) • Carnival Group(4) • Italian Na
Slide 8: Financial performance
Section 2 Financial performance AMC Connector AMC Connector / Ezra World’s largest cable layer
Slide 9: Overview of financial performance indicators
Overview of financial performance indicators(1) € MM FY 2013(2) FY 2014 FY 2015 Order intake 4,998 5,639 10,087 Order book 12,900 15,019 22,061 Backlog 8,068 9,814 15,721 Soft backlog 5,000 5,000 3,000 Revenues 3,811 4,399 4,183 EBITDA 298 297 (26) As a % of revenues 7.8% 6.8% -0.6% EBIT 209 198 (13
Slide 10: Order intake and backlog
Order intake and backlog Order Intake Backlog(1) € MM € MM (33) 205 2.1x 2.2x 3.8x Soft FY 2013 3,010 1,816 4,998 1.3x backlog(2) € 3.0 BN 15,721 Soft 5% backlog(2) 732 (96) 204 Soft 7% 1,143 € 5.0 BN backlog(2) € 5.0 BN FY 2014 4,400 1,131 5,639 1.3x 9,814 3% 300 8,068 3% 22% 2,124 264 89% 14,067 (
Slide 11: Backlog deployment
Backlog deployment Shipbuilding Offshore # ships deliveries(1) # ships deliveries Cruise Naval(2) 2015 3 2015 5 2015 12 2016 5 2016 10 2016 18 2017 5 2017 8 2017 10 2018 5 2018 3 2018 1 2019 4 2019 5 2019 Additional 2 units Additional 9 units 2020 2 scheduled after 2020 2020 1 scheduled after 2020 2
Slide 12: Financial performance
Financial performance Revenues(1) EBITDA / margins(1,2) € MM € MM 7.8% 6.8% -0.6% 4,399 4,183 3,811 192 298 (3) 297 (3) 226 163 8.5% 14 11.1% 21 1,580 1,199 1,321 6.8% 108 142 11.8% 155 206 193 1,056 1,059 1,126 2,704 2,847 2,394 7.2% 195 1,649 6.5% 155 1,439 (26) 1,075 13.8% 31 (67) (77) (89) (26)
Slide 13: Financial performance
Financial performance EBIT / margins Profit/(loss) before extraordinary and non recurring items(1) € MM € MM 137 28 87 109 99 5.5% 4.5% -3.3% (12) (141) (111) (252) 209 198 FY 2013 FY 2014 FY 2015 Attributable to owners of the parent Attributable to non-controlling interests Profit/(loss) for the pe
Slide 14: Capex
Capex Capex evolution FY 2014 Capex by segment € MM 7% 3% 6.7% 3.7% 3.8% 255 29% € 162 MM 61% 37 162 161 FY 2015 Capex by segment 38 39 8% 218 3% 124 122 19% € 161 MM 70% (1) FY 2013 FY 2014 FY 2015 Shipbuilding Property, plant and equipment Intangible assets % of Revenues Offshore Equipment, system
Slide 15: Working capital, Net financial position and key ratios
Section 3 Working capital, Net financial position and key ratios 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 € MM FY 2013 FY 2014 FY 2015 405 Inventories and advances 388 Work in progress net of 1,876 advances from customers 400 1,112 757 Trade receivables 344 610 560 Other current assets and liabilities 57 (18) (196) (563) Construction loans (847) (1,103
Slide 18: Net financial position
Net financial position(1) Breakdown by main components € MM – Net cash / (Net debt) FY 2013 FY 2014 FY 2015 Non-current financial receivables 90 82 Current financial receivables 41 52 113 552 53 Cash & cash equivalents 385 260 Short term financial liabilities (70) (80) (263) Long term financial liab
Slide 19: Key financial ratios
Key financial ratios Profitability ratios Debt ratios ROI(1) (EBIT / Net invested capital) Net debt / EBITDA € MM 155 (44) 438 15.3% 13.9% 0.5x n.a. n.m. – -8.6% FY 2013 FY 2014 FY 2015 = Net debt or (Net cash) FY 2013 FY 2014 FY 2015 ROE(1) (Net income / Equity) Gross debt / Shareholders' equity 0.
Slide 20: Q&A
Q&A Frigates Fremm Class Italian Navy ART 17 Azimuthal Retractable Thruster
Slide 21: Appendix: FY 2015 results by segment
Appendix FY 2015 results by segment Amerigo Vespucci Italian Navy One of the most ancient training ships
Slide 22: Shipbuilding
Shipbuilding Highlights Comments € MM FY 2014 FY 2015 • Orders: high order intake at € 9.3 BN, Order intake 4,400 9,262 taking backlog to € 14.1 BN Order book 10,945 18,540 • Revenues: at € 2.8 BN, up 5.3% from FY Backlog 7,465 14,067 2014, thanks to Revenues 2,704 2,847 ‒ Higher volumes in cruise p
Slide 23: Offshore
Offshore Highlights Comments € MM FY 2014 FY 2015 • Orders: weak order intake at € 402 MM, Order intake 1,131 402 due to a persistently challenging Oil & Gas market environment Order book 3,623 2,729 Backlog 2,124 1,143 • Revenues: at € 1.2 BN down 24.1% vs. FY 2014 due to reduced activity at some R
Slide 24: Equipment, Systems and Services
Equipment, Systems and Services Highlights Comments € MM FY 2014 FY 2015 • Orders: order intake at € 639 MM taking Order intake 204 639 backlog at € 732 MM Order book 663 1,181 ‒ Mainly related to Italian Navy’s fleet Backlog 300 732 renewal program and the conversion of 4 “Minerva” class corvettes
Slide 25: Financial Appendix
Financial Appendix Destriero World record for the fastest crossing of the Atlantic Ocean without refueling (58 hours at an average speed of 53.1 knots)
Slide 26: Profit & Loss and Cash flow statement
Profit & Loss and Cash flow statement Profit & Loss statement (€ MM) FY 2013(1) FY 2014 FY 2015 Revenues 3,811 4,399 4,183 Materials, services and other costs (2,745) (3,234) (3,337) Personnel costs (752) (843) (865) Provisions (16) (25) (7) EBITDA 298 297 (26) Depreciation, amortization and impairm
Slide 27: Net income before extraordinary and non recurring items
Net income before extraordinary and non recurring items(1) Net income before extraordinary and non recurring items (€ MM) FY 2013(2) FY 2014 FY 2015 A Net profit/(loss) for the year 85 55 (289) B Extraordinary and non recurring items gross of tax effect 80 44 50 ̶ Of which extraordinary wages 15 10
Slide 28: Balance sheet
Balance sheet Balance sheet (€ MM) FY 2013 FY 2014 FY 2015 Intangible assets 539 508 518 Property, plant and equipment 897 959 974 Investments 70 60 62 Other non-current assets and liabilities (14) (48) (44) Employee benefits (60) (62) (57) Net fixed capital 1,432 1,417 1,453 Inventories and advance
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