Fincantieri S.p.a. · MIL:FCT
Fincantieri — Non-Deal Roadshow (September 2016)
33 slides from Fincantieri's roadshow presentation, Sep 28, 2016
Slide 1: Update post 1H 2016 Results
FINCANTIERI Update post 1H 2016 Results September 28, 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 20 shipyards € 4,183 mln revenues 4 continents Romania • 2 shipyards ~ € 21.8 bln total backlog(2,3) ~ 20,000 employees • € 19.3 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 • 1H 2016 4 • 1H 2016 3 • 1H 2016 8 • 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 1H 2015 1H 2016 Order intake 5,639 10,087 4,170 5,851 Backlog 9,814 15,721 12,044 19,290 Soft backlog 5,000 3,000 7,200 2,500 Revenues 4,399 4,183 2,220 2,266 EBITDA 297 (26) 128 113 As a % of revenues 6.8% -0.6% 5.8% 5.0% EBIT 19
Slide 10: Order intake and backlog
Order intake and backlog Order Intake Backlog(1) € mln € mln 4.5x 5.2x 1.0x 1.8x 1.9x 2.6x 3.8x 4.6x Soft 15,726 backlog(2) € 2.5 bln 843 5,851 Soft 19,290 1,533 backlog(2) 5% 271 € 3.0 bln 873 7% 1,266 729 5% 15,721 4,170 732 7% 1,143 8,254 306 140 474 1,816 13,662 5,112 91% 17,565 89% 14,067 3,752
Slide 11: Backlog deployment
Backlog deployment Shipbuilding Offshore # ships deliveries(1) # ships deliveries Cruise Naval(2) 2016 4 1 5 2016 3 7 10 2016 8 9 17 2017 5 2017 8 2017 10 6 16 2018 5 2018 3 2 5 2018 12 2019 4 2019 5 2019 2 2020 2 2 4 2020 11 2 2020 Delivered in 1H 2016 New orders in 1H 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) (89) (27) (23) -0.8% (3) (31) -0.2% FY 2014 FY 2015 FY 2014 FY 2015 2,220 2,266 131 5.8% 5.0%
Slide 13: Financial performance
Financial performance EBIT / margins Net result before extraordinary and non recurring items(1) € mln € mln 19 87 99 23 19 (12) 198 (141) (30) (111) (7) (137) (252) FY 2014 FY 2015 1H 2015 1H 2016 FY 2014 FY 2015 of which Group of which minority interests Net result € mln 55 5 67 12 7 (12) (2) 74 (1
Slide 14: Capex
Capex Capex evolution Capex by segment € mln € mln 3.7% 3.8% 3.1% 4.1% 162 161 162 161 12 13 5 5 38 39 47 31 94 68 31 124 122 12 112 98 56 63 FY 2014 FY 2015 1H 2015 1H 2016 FY 2014 FY 2015 Shipbuilding Property, plant and equipment Intangible assets % of Revenues Offshore Equipment, Systems & Servi
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 1H 2016 405 Inventories and advances to suppliers 530 388 1,876 Work in progress net of advances from customers 1,112 1,442 Trade receivables 610 560 419 Other current assets and liabilities (18) (44) (196) Construction loans
Slide 18: Net financial position
Net financial position(1) Breakdown by main components € mln – Net cash / (Net debt) FY 2014 FY 2015 1H 2016 90 Non-current financial receivables 82 Current financial receivables 113 115 552 53 85 Cash & cash equivalents 260 186 Short term financial liabilities (80) (263) (271) Long term financial l
Slide 19: Q&A
Q&A Frigates Fremm Class Italian Navy ART 17 Azimuthal Retractable Thruster
Slide 20: Appendix: 1H 2016 results
Appendix 1H 2016 results Amerigo Vespucci Italian Navy One of the most ancient training ships
Slide 21: 1H 2016 Key Messages
1H 2016 Key Messages • Guidance 2016 and medium term targets confirmed: solid 1H 2016 results, with positive net result at € 5 mln after extraordinary and non recurring items and 5.0% EBITDA margin, mark a turning point for the Group compared to the second half of 2015 (margin of 5.0% in 1H 2016 vs
Slide 22: Contract with Qatari Ministry of Defence: a true commercial milestone
Contract with Qatari Ministry of Defence: a true commercial milestone • In June 2016 Fincantieri and the Qatari Ministry of Defence have signed a contract for the construction of seven new generation surface vessels included in the national naval acquisition programme of the Qatar Emiri Naval Forces
Slide 23: JV agreement with China State Shipbuilding Corporation
JV agreement with China State Shipbuilding Corporation Description • In July 2016, Fincantieri and China State Shipbuilding Corporation (CSSC) have signed an agreement for the constitution of a joint venture aimed at developing and supporting the growth of the Chinese cruise industry • The agreement
Slide 24: 1H 2016 main orders
1H 2016 main orders Orders acquired in Q2 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 25: 1H 2016 main deliveries
1H 2016 main deliveries Deliveries in Q2 Vessel Client Shipyard Cruise ship “Viking Sea” Viking Ocean Cruises Ancona Cruise ship “Koningsdam” Holland America Line Marghera (Carnival Corporation) Shipbuilding Cruise ship “Carnival Vista” Carnival Cruise Lines Monfalcone Cruise ship “Seven Seas Explor
Slide 26: 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 ~ 5% 2016 2018 ‒ Positive net result ‒ EBITDA margin ~ 6-7% ‒ EBITDA margin ~ 7-8% ‒ Net debt at
Slide 27: Shipbuilding
Shipbuilding Highlights Comments € mln FY 2015 1H 2015 1H 2016 • 1 cruise ship for Princess • Orders: order intake at € 5,112 mln Order intake 9,262 3,752 5,112 Cruises taking backlog to € 17,565 mln Order book 18,540 12,353 21,804 • 1 cruise ship for Regent • Revenues: at € 1,659 mln, up 6.7% Seven
Slide 28: Offshore
Offshore Highlights Comments € mln FY 2015 1H 2015 1H 2016 • 4 small-sized cruise vessels • Orders: order intake at € 729 mln taking Order intake 402 140 729 for Ponant backlog to € 1,266 mln • 15 module carrier vessels for • Revenues: at € 536 mln, down 14.4% Order book 2,729 2,917 2,447 Topaz Ener
Slide 29: Equipment, Systems and Services
Equipment, Systems and Services Highlights Comments € mln FY 2015 1H 2015 1H 2016 • Orders: order intake at € 271 mln taking Order intake 639 306 271 backlog at € 873 mln Order book 1,181 932 1,390 • Revenues: up to € 131 mln Backlog 732 513 873 − Increase of volumes both in after Revenues 226 95 13
Slide 30: 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 31: Profit & Loss and Cash flow statement
Profit & Loss and Cash flow statement Profit & Loss statement (€ mln) FY 2014 FY 2015 1H 2015 1H 2016 Revenues 4,399 4,183 2,220 2,266 Materials, services and other costs (3,234) (3,337) (1,636) (1,712) Personnel costs (843) (865) (459) (431) (1) Provisions (25) (7) 3 (10) EBITDA 297 (26) 128 113 De
Slide 32: 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 1H 2015 1H 2016 A Net result before extraordinary and non recurring items(1) 87 (252) (7) 19 Attributable to owners of the parent 99 (141) 23 19 B Extraordinary
Slide 33: Balance sheet
Balance sheet Balance sheet (€ mln) FY 2014 FY 2015 1H 2016 Intangible assets 508 518 546 Property, plant and equipment 959 974 1,014 Investments 60 62 57 Other non-current assets and liabilities (48) (44) (28) Employee benefits (62) (57) (61) Net fixed assets 1,417 1,453 1,528 Inventories and advan