Fincantieri S.p.a. · MIL:FCT
Fincantieri — Goldman Sachs 13th Annual Industrial Conference (November 2021)
28 slides from Fincantieri's conference presentation, Nov 30, 2021
Slide 1: Goldman Sachs – 13th Annual Industrial Conference
FINCANTIERI G OLDMAN S ACHS – 1 3 TH A NNUAL I NDUSTRIAL C ONFERENCE November 30, 2021 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: Table of Contents
Table of Contents SECTION 1 SECTION 2 SECTION 3 DESCRIPTION FINANCIAL S T R AT E G Y OF THE GROUP OVERVIEW & OUTLOOK APPENDIX
Slide 4: Description of the Group
SECTION 1 DESCRIPTION OF THE GROUP
Slide 5: Fincantieri at a glance
Fincantieri at a glance We are an Italian Group with a global footprint 49% of our employees are based in Italy and 87% of revenues come from international clients(1) • ~ € 5.9 bn Revenues in FY2020, OUR 87% of which come from international FIGURES clients • € 36.0 bn Total Backlog(2,3) • 18 shipyar
Slide 6: Products, clients and backlog
Products, clients and backlog One of the most diversified product portfolio in the world combined with a wide client base and a strong backlog Main products Key clients Revenues 2020(1) Backlog(2) (4) (5) Cruise • All cruise ships: − Luxury/Niche(3) €3,281 m − Upper Premium − Premium 50.1% − Contemp
Slide 7: Markets and positioning
Markets and positioning Leadership in high-potential reference markets and solid track record End markets Market Trend Main Drivers Track Record Cruise • A successful rollout of vaccination campaigns will be key to industry recovery • World leader in the design and construction of • Significant impa
Slide 8: Key competitive strengths
Key competitive strengths Consolidated leadership, high diversification and flexible global production network 1. 2. Consolidated leadership in diversified High diversification in terms of end market, markets and sizeable backlog geography and client portfolio • Leader in cruise market and in naval
Slide 9: Ownership and Group structure
Ownership and Group structure A listed company with strong reference shareholders Simplified ownership and Group structure Italian Ministry Italian Banking Treasury Shares of Economy and Finance Foundations • Fincantieri shares are listed on the Milan Stock Exchange since July 3, 2014 82.77% 15.93%
Slide 10: Financial Overview
SECTION 2 FINANCIAL OVERVIEW
Slide 11: Executive summary
Executive summary Revenues up by 28% and EBITDA +65%, Backlog at €36 bn, 2021 guidance fully confirmed Revenues (€ mln) REVENUES EXCLUDING PASS-THROUGH 4,536 4,771 ▪ FY 2021 guidance fully confirmed with revenues expected to reach +25-30% YoY and 3,534 ACTIVITIES +28.3% YOY EBITDA margin over 7% ▪ T
Slide 12: Business update
Business update Positive business operating performance across all segments CRUISE ▪ Sound operating performance with 4 units delivered in 3Q: - Valiant Lady, the second of four ships ordered by Virgin Voyages - MSC Seashore, the largest cruise ship ever built in Italy - Rotterdam, third unit of the
Slide 13: Sustainable strategy
Sustainable strategy Tireless effort to become a model of excellence E S G A WARDS G REEN FINANCE • Range “Advanced” and #1 among its • Group’s first trade finance credit line to peers in 2021 support the construction of custom-built • Score A- and Leader score (A) in the green cable layer for a Van
Slide 14: New orders and main deliveries
New orders New orders across all segments amount to € 2.3 bn Segment Vessel Client Expected Delivery ◼ Shipbuilding FFG-62 frigate US Navy Beyond 2025 Somnio Somnio Superyachts 2024 ◼ Offshore & 3 Service Operation Vessels North Star Renewables 2023 Specialized Vessels 2 Service Operation Vessels(1)
Slide 15: Backlog deployment
Backlog deployment Well-balanced visibility both in Cruise and Naval, 4 new orders in Offshore and Specialized Vessels in 3Q Shipbuilding Offshore & Specialized Vessels # ship deliveries # ship deliveries CRUISE 2021 6 2 8 NAVAL 2021 4 4 8 OSV 2021 3 1 4 31 VESSELS 2022 7 36 VESSELS (1) 2022 9 25 VE
Slide 16: Order intake and backlog
Order intake and backlog Solid order intake and hefty soft backlog Order intake breakdown by segment Total backlog breakdown by segment(1) ▪ No orders cancellation € mln € mln 0.5x 0.5x 6.3x 6.9x 6.9x ▪ Sizeable order intake at € 2.3 bn, thanks to the positive impact of Offshore & Special Vessels an
Slide 17: Revenues
Revenues Revenue growth in line with 2021 guidance, with positive contribution across all segments Revenues breakdown by segment(1) € mln +28.3% 4.771 Revenues excluding pass-through activities are up 4.536 764 28.3% YoY thanks to record-high production 764 volumes in the 9M 2021 (12.3 mln productio
Slide 18: EBITDA
EBITDA Remarkable increase in volumes and margins EBITDA breakdown by segment(1) € mln +65.0% EBITDA margin at 7.3% excluding pass-through activities mainly thanks to the positive contribution from Shipbuilding despite the impact 5.7% 7.3% 6.9% from increased steel prices 330 330 ◼ Shipbuilding EBIT
Slide 19: EBITDA growth
EBITDA growth Better operating margin thanks to higher production volumes and improved margins EBITDA breakdown by segment ◼ Shipbuilding: EBITDA improvement driven by higher production volumes and improved operating margin ◼ Offshore and Specialized Vessels: increased EBITDA thanks to higher operat
Slide 20: Capex
Capex Significant investments creating further efficiencies in engineering and production scenarios Capex by segment ▪ Capex up 50% vs 9M 2020 to support € mln 4.9% 5.7% shipyards upgrade and further efficiencies to address new productive scenarios 258 16 ▪ Investments breakdown as follows: 20 - Int
Slide 21: Net working capital and net financial position
Net working capital and net financial position NFP in line with expectations with 2 cruise units to be delivered in 4Q Net Working Capital breakdown by component Net Financial Position breakdown by component(1) € mln € mln ▪ NWC negative at €398 mln, - € 196 mln vs 881 FY 2020, mainly due to the del
Slide 22: Strategy & Outlook
SECTION 3 my STRATEGY & OUTLOOK FINCANTIERI The sea ahead
Slide 23: Update on cruise
Update on cruise Around 57% of the global fleet in service with 65 brands already operating by the end of October ▪ The Conditional Sailing Order will expire in January 2022; After January 15, CDC will transition to a voluntary program in coordination with cruise ship operators CRUISE ▪ Pent up dema
Slide 24: Business outlook
Business outlook Confirmed FY 2021 guidance E XPECTED FINANCIAL PERFORMANCE IN 2 0 2 1 • Revenues +25%-30% YoY and EBITDA margin over 7.0% despite the surge in commodity and energy prices • FY 2021 net debt to be in line with FY 2020 levels M E D I U M T O L O N G T E R M E X P E C TAT I O N S • Bac
Slide 25: Appendix
APPENDIX FINCANTIERI The sea ahead
Slide 26: Financial overview – Shipbuilding
Financial overview – Shipbuilding Orders, backlog and deliveries Revenues EBITDA Capex € mln € mln € mln ▪ Orders: €1,366 mln (€1,406 mln in 1.140 1.375 6.2% 7.6% 7.2% 9M 2020) 837 - Residential yacht Somnio 3,989 4,224 - Second Constellation-class frigate 3,104 2.849 2.849 to the US Navy 2.267 303
Slide 27: Financial overview – Offshore & Specialized Vessels
Financial overview – Offshore & Specialized Vessels Orders, backlog and deliveries Revenues EBITDA Capex € mln € mln € mln ▪ Orders: €382 mln (€186 mln in 9M 0.0% 2.0% 2020) ▪ Backlog: €995 mln (€712 mln in 9M 2020) 271 313 6 ▪ Deliveries(1): 0 2 3 9M 2020 9M 2021 9M 2020 9M 2021 9M 2020 9M 2021 - 1
Slide 28: Financial overview – Equipment, Systems & Services
Financial overview – Equipment, Systems & Services Orders, backlog and deliveries Revenues EBITDA Capex € mln € mln € mln 6.3% 6.9% ▪ Orders: €822 mln including new MSC cruise terminal at PortMiami (vs €480 mln in 9M 2020) 764 21 20 591 ▪ Backlog: €3,515 mln vs € 1,795 mln in 52 37 9M 2020 9M 2020 9
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