Slide 1: Update post 9M 2016 Results
FINCANTIERI Update post 9M 2016 Results January 2017
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 20 shipyards € 4,183 mln revenues 4 continents Romania • 2 shipyards ~ € 21.8 bln total backlog(2,3) ~ 20,000 employees • € 19.0 bln backlog ~ 80,000 subcontractors • € 2.
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 / Maintenance Life Cycle Management End markets • All cruise ships • All surface vessels (also • High tech ferries • Offsh
Slide 7: Track record, top clients and technological leadership
Track record, top clients and technological leadership SHIPBUILDING OFFSHORE Cruise Naval • 1990 – 2001 23 • 1990 – 2001 51(1) • 1990 – 2001 72(2) Track record ships • 2002 – 2015 47 • 2002 – 2015 50(1) • 2002 – 2015 279(2) deliveries • 9M 2016 4 • 9M 2016 6 • 9M 2016 9 • Carnival Group(3) • Italian
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) € mln FY 2014 FY 2015 9M 2015 9M 2016 Order intake 5,639 10,087 4,852 6,308 Backlog 9,814 15,721 11,558 18,977 Soft backlog 5,000 3,000 8,200 2,800 Revenues 4,399 4,183 3,032 3,230 EBITDA 297 (26) 6 185 As a % of revenues 6.8% -0.6% 0.2% 5.7% EBIT 198
Slide 10: Order intake and backlog
Order intake and backlog Order Intake Backlog(1) € mln € mln 4.5x 5.2x 1.0x 1.8x 1.6x 2.0x 3.8x 4.5x 15.726 Soft backlog(2) € 2.8 bln 843 Soft backlog(2) 5% 18.977 1.533 6.308 908 € 3.0 bln 361 8% 1.501 5% 15.721 4.852 1.084 732 7% 1.143 8.254 473 474 299 1.816 13.662 90% 17.054 5.228 89% 14.067 4.1
Slide 11: Backlog deployment
Backlog deployment Shipbuilding Offshore # ships deliveries(1) # ships deliveries Cruise Naval(2) 2016 4 1 5 2016 6 4 10 2016 9 7 16 2017 5 2017 8 2017 11 6 17 2018 5 2018 3 2 5 2018 17 2019 4 2019 5 2019 4 2020 2 2 4 2020 11 2 2020 Delivered in 9M 2016 New orders in 9M 2016 • Additional 2 units sch
Slide 12: Financial performance
Financial performance Revenues(1) EBITDA / margins(2) € mln € mln 4.399 6.8% -0.6% 4.183 192 226 (3) 297 1.580 1.199 11.1% 21 206 142 6.8% 108 1.056 1.059 2.704 2.847 7.2% 195 (26) 1.439 1.649 13.8% 31 (77,0) (89,0) (27) (23) -0.8% (3) (31) -0.2% FY 2014 FY 2015 FY 2014 FY 2015 3.230 3.032 0.2% 5.7%
Slide 13: Financial performance
Financial performance EBIT / margins Net result before extraordinary and non recurring items(1) € mln € mln 4.5% -3.3% 87 30 99 35 (12) (5) (73) 198 (141) (96) (111) (137) (252) (169) FY 2014 FY 2015 9M 2015 9M 2016 FY 2014 FY 2015 of which Group of which minority interests Net result € mln -2.4% 3.
Slide 14: Capex
Capex Capex evolution Capex by segment € mln € mln 3.7% 3.8% 3.5% 4.7% 162 161 162 161 152 12 13 5 5 38 39 51 31 106 47 18 124 122 101 112 88 98 FY 2014 FY 2015 9M 2015 9M 2016 FY 2014 FY 2015 Shipbuilding Property, plant and equipment Intangible assets % of Revenues Offshore Equipment, Systems & Se
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 € mln FY 2014 FY 2015 9M 2016 405 Inventories and advances to suppliers 557 388 1.876 Work in progress net of advances from customers 1.112 1.445 Trade receivables 610 560 424 Other current assets and liabilities (18) 61 (196) Construction loans (8
Slide 18: Net financial position
Net financial position(1) Breakdown by main components € mln – Net cash / (Net debt) FY 2014 FY 2015 9M 2016 90 Non-current financial receivables 82 Current financial receivables 113 552 53 117 Cash & cash equivalents 260 67 75 Short term financial liabilities (80) (263) (379) (600) Long term financ
Slide 19: Q&A
Q&A Frigates Fremm Class Italian Navy ART 17 Azimuthal Retractable Thruster
Slide 20: Appendix 9M 2016 results
Appendix 9M 2016 results Amerigo Vespucci Italian Navy One of the most ancient training ships
Slide 21: 9M 2016 Key Messages
9M 2016 Key Messages • Business plan targets confirmed: 9M 2016 results, with 5.7% EBITDA margin and positive net result at € 7 mln, mark a substantial improvement compared with 9M 2015 (EBITDA margin 0.2%) and are in line with the targets set out in the Business Plan 2016-2020 • Total backlog(1) at
Slide 22: 9M 2016 main orders
9M 2016 main orders Orders acquired in Q3 Vessel Client Delivery 1 ultra-luxury cruise ship Regent Seven Seas Cruises 2020 (“Seven Seas Explorer” sister ship) (Norwegian Cruise Line Holdings) 1 Littoral Combat Ship US Navy 2020 Shipbuilding 1 cruise ship Princess Cruises 2020 (fifth “Royal Princess”
Slide 23: 9M 2016 main deliveries (1/2)
9M 2016 main deliveries (1/2) Deliveries in Q3 Vessel Client Shipyard Cruise ship “Viking Sea” Viking Ocean Cruises Ancona Cruise ship “Koningsdam” Holland America Line Marghera (prototype) (Carnival Corporation) Cruise ship “Carnival Vista” Carnival Cruise Lines Monfalcone (prototype) Shipbuilding
Slide 24: 9M 2016 main deliveries (2/2)
9M 2016 main deliveries (2/2) Deliveries in Q3 Vessel Client Shipyard Littoral Combat Ship “USS US Navy Marinette Detroit” (LCS 7) Shipbuilding FREMM “Alpino” Italian Navy Muggiano OSCV “Skandi Açu” Techdof Brasil Vard Søviknes AHTS “Skandi Paraty” DOF Vard Niterói Offshore (Vard) 3 LPG carriers “Ba
Slide 25: Outlook
Outlook • Guidance 2016 confirmed • Guidance 2018 confirmed • Guidance 2020 confirmed ‒ Revenue increase 4-6% vs. 2015 ‒ Revenue increase 16-23% vs. ‒ Revenue increase 16-21% vs. Guidance ‒ EBITDA margin approx. 5% 2016 2018 ‒ Positive net result ‒ EBITDA margin approx. 6-7% ‒ EBITDA margin approx.
Slide 26: Shipbuilding
Shipbuilding Highlights Comments € mln FY 2015 9M 2015 9M 2016 • 1 cruise ship for Princess • Orders: order intake at € 5,228 mln Order intake 9,262 4,148 5,228 Cruises taking backlog to € 17,054 mln Order book 18,540 13,817 20,993 • 1 cruise ship for Regent • Revenues: at € 2,412 mln, up 14.3% Seve
Slide 27: Offshore
Offshore Highlights Comments € mln FY 2015 9M 2015 9M 2016 • 4 expedition cruise vessels • Orders: order intake at € 1,084 mln taking for Ponant backlog to € 1,501 mln Order intake 402 299 1,084 • 2 expedition cruise vessels • Revenues: at € 723 mln, down 14.6% Order book 2,729 2,975 2,778 for Hapag
Slide 28: Equipment, Systems and Services
Equipment, Systems and Services Highlights Comments € mln FY 2015 9M 2015 9M 2016 • Orders: order intake at € 361 mln taking Order intake 639 473 361 backlog at € 908 mln Order book 1,181 1,083 1,450 • Revenues: up to € 193 mln Backlog 732 634 908 − Increase of volumes in after sales Revenues 226 14
Slide 29: 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 30: Profit & Loss and Cash flow statement
Profit & Loss and Cash flow statement Profit & Loss statement (€ mln) FY 2014 FY 2015 9M 2015 9M 2016 Revenues 4,399 4,183 3,032 3,230 Materials, services and other costs (3,234) (3,337) (2,368) (2,403) Personnel costs (843) (865) (658) (626) (1) Provisions (25) (7) - (16) EBITDA 297 (26) 6 185 Depr
Slide 31: 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 2014 FY 2015 9M 2015 9M 2016 A Net result before extraordinary and non recurring items(1) 87 (252) (169) 30 Attributable to owners of the parent 99 (141) (73) 35 B Extraordin
Slide 32: Balance sheet
Balance sheet Balance sheet (€ mln) FY 2014 FY 2015 9M 2015 9M 2016 Intangible assets 508 518 504 569 Property, plant and equipment 959 974 958 1,032 Investments 60 62 65 58 Other non-current assets and liabilities (48) (44) (43) (21) Employee benefits (62) (57) (57) (61) Net fixed assets 1,417 1,45