Fincantieri S.p.a. · MIL:FCT
Fincantieri — Non-Deal Roadshow (March 2015)
28 slides from Fincantieri's roadshow presentation, Mar 2, 2015
Slide 1: Update post FY 2014 Preliminary Consolidated Results
FINCANTIERI Update post FY 2014 Preliminary Consolidated Results London, 2 March 2015
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: Fincantieri speakers
Fincantieri speakers Giuseppe Bono • CEO of FINCANTIERI (since 2002) • Chairman of VARD (since 2013) Chief Executive Officer (CEO) • 40 years of experience in industrial & multinational companies (restructuring & IPO of Finmeccanica, restructuring of Agusta Westland) Giuseppe Dado • Chief Financial
Slide 4: 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 5: Introduction
Section 1 Introduction Littoral Combat Ship "Freedom" US Navy World's fastest steel frigate
Slide 6: 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 €4,399 MM revenues 21 shipyards Romania • 2 shipyards UAE • 1 Joint Venture 4 continents €297 MM EBITDA USA Vietnam 13 countries • 3 shipyards • 1 shipyard Brazil Italy ~€
Slide 7: Products and end-markets
Products and end-markets = Key area SHIPBUILDING EQUIPMENT, OFFSHORE SYSTEMS Cruise Naval Others & SERVICES Leisure Defence Transportation / Oil & Gas Equipment / Luxury / Life Cycle Management End Maintenance markets • All cruise ships • All surface vessels • High tech ferries • Offshore Support •
Slide 8: Track record, top clients and technological leadership
Track record, top clients and technological leadership SHIPBUILDING OFFSHORE Cruise Naval • Since 1990 67 • Since 1990 96(2) • Since 1990 339(3) Track record ships • Since 2002 44 • Since 2002 45(2) • Since 2002 267(3) deliveries(1) • 2014 2 • 2014 4(2) • 2014 18 • Carnival Group(4) • Italian Navy a
Slide 9: Financial performance
Section 2 Financial performance AMC Connector AMC Connector / Ezra World’s largest cable layer
Slide 10: Overview of financial performance indicators
Overview of financial performance indicators(1) € MM FY 2011 FY 2012 FY 2013(2) FY 2014 Order intake 1,863 1,394 4,998 5,639 Backlog 5,373 4,735 8,068 9,814 Revenues 2,380 2,381 3,811 4,399 EBITDA 141 147 298 297 As a % of revenues 5.9% 6.2% 7.8% 6.8% EBIT 75 87 209 198 As a % of revenues 3.1% 3.7%
Slide 11: Order intake and backlog
Order intake and backlog Order Intake Backlog(1) € MM € BN (71) 142 2011 1,792 1,863 0.8x 2.1x 2.2x Soft backlog 127 € 5.0 BN (31) 9.8 2012 1,298 1,394 3% 0.3 0.6x 8.1 2.1 3% 0.3 22% (33) 205 31% 2.5 2.5 2013 3,010 1,816 4,998 1.3x 76% 7.5 204 5.3 (96) 66% 2014 4,400 1,131 5,639 1.3x (0.1) 2013 2014
Slide 12: Backlog deployment
Backlog deployment Shipbuilding Offshore # ships deliveries(1) # ships deliveries Cruise Naval(2) 2014 2 2014 4 2014 18 2015 3 2015 7 2015 21 2016 7 2016 9 2016 15 2017 3 2017 6 2017 3 2018 4 2018 3 2018 2019 2019 1 2019 • Visibility of deliveries to 2018 • Deliveries of FREMM units up to 2019 • In
Slide 13: Financial performance
Financial performance Revenues(1) EBITDA / margins(2) € MM € MM 4,399 5.9% 6.2% 7.8% 6.8% VARD 3,811 192 VARD (5) (5) 298 297 163 1,580 8.5% 11.1% 2,380 2,381 1,321 131 165 141 147 11.8% 6.8% 7.9% 9.3% 2,292 2,394 2,704 2,288 6.8% 6.8% 6.5% 7.2% (39) (76) (67) (77) (4) (4) 2011 2012 2013 2014 2011 2
Slide 14: Capex
Capex Capex evolution 2014 Capex by segment € MM 3.3% 3.7% 11.1% 3.7% 7% VARD 3% 424 169 29% € 162 MM 37 61% 162 78 89 38 218 3 4 124 74 86 Shipbuilding Equipment, systems & services 2011 2012 2013 2014 Offshore Property, plant and equipment Intangible assets Acquisitions (net of cash acquired) Othe
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 2011 2012 2013 2014 388 Inventories and advances 400 1,112 Work in progress net of advances from customers 276 757 Trade receivables 149 273 318 268 344 610 Other current assets and liabilities 116 107 57 (18) (56) Construction loans (577) (56
Slide 18: Net financial position
Net financial position(1) Breakdown by main components € MM – Net cash / (Net debt) 2011 2012 2013 2014 17 Non-current financial receivables 45 90 82 17 41 Current financial receivables 44 52 692 552 432 385 Cash & cash equivalents (70) (80) (187) (149) Short term financial liabilities (80) (146) (5
Slide 19: Key financial ratios
Key financial ratios Profitability ratios Debt ratios ROI(1) (EBIT / Net invested capital) Net debt / EBITDA € MM VARD (226) (459) VARD 155 (44) 0.5x Net Cash Net Cash 14.2% 15.3% 13.9% Net Cash 9.6% 2011 2012 2013 2014 2011 2012 2013 2014 = Net debt or (Net cash) ROE(1) (Net income / Equity) Gross
Slide 20: Q&A
Q&A Frigates Fremm Class Italian Navy ART 17 Azimuthal Retractable Thruster
Slide 21: Appendix: 2014 preliminary results by segment
Appendix 2014 preliminary results by segment Amerigo Vespucci Italian Navy One of the most ancient training ships
Slide 22: Shipbuilding
Shipbuilding Highlights Comments € MM FY 2013 FY 2014 • 5 large cruise ships (2 for MSC • Orders: solid order intake at € 4.4 BN, Crociere, 1 for Princess Cruises, 1 for Order intake 3,010 4,400 including 22 new ships Holland America Line, 1 for Carnival • Revenues: at € 2.7 BN, up 12.9% vs. FY Back
Slide 23: Offshore
Offshore Highlights Comments € MM FY 2013 FY 2014 • 1 Diving Support and Construction • Orders: order intake at € 1.1 BN taking Vessel for Technip Order intake 1,816 1,131 backlog at € 2.1 BN • 1 arctic AHTS for Bourbon • Revenues: at € 1.6 BN up 19.6% vs. FY Backlog 2,480 2,124 • 8 PSV (2 for Carlo
Slide 24: Equipment, systems and services
Equipment, systems and services Highlights Comments € MM FY 2013 FY 2014 • Orders: order intake at € 204 MM Order intake 205 204 bringing backlog at € 300 MM • Revenues: up to € 192 MM, mainly due Backlog 264 300 to the increase of volumes of after sale Revenues 163 192 services for naval vessels an
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 2011 FY 2012 FY 2013(1) FY 2014 Revenues 2,380 2,381 3,811 4,399 Materials, services and other costs (1,768) (1,727) (2,745) (3,234) Personnel costs (458) (507) (752) (843) Provisions and impairment losses (13) - (16) (25) EBITD
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(1) € MM FY 2011 FY 2012 FY 2013(2) FY 2014 A Net profit/(loss) for the year 9 15 85 55 B Extraordinary and non recurring items gross of tax 51 41 80 44 effect ̶ Of which extraordinary w
Slide 28: Balance sheet
Balance sheet Balance sheet (€ MM) FY 2011 FY 2012 FY 2013 2014 Intangible assets 110 104 539 508 Property, plant and equipment 555 585 897 959 Equity investments 16 17 70 60 Other non current assets and liabilities (50) (40) (14) (48) Employee indemnity benefit (65) (71) (60) (62) Net fixed capital