Slide 1: 2015 Nine Months Results
2015 NINE MONTHS RESULTS 11 November 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: 9M 2015 Key Highlights
9M 2015 Key Highlights Key Business Highlights • Important commercial agreements in cruise and naval led to the expected backlog and order portfolio of approx. euro 20 and 26 billion respectively, including both firm contracts and agreements being finalized(1) • Shipbuilding segment ‒ Significant or
Slide 4: 9M 2015 Key Highlights
9M 2015 Key Highlights Key Financial Highlights • Order intake at € 4.9 BN (from € 4.2 BN in 9M 2014) with book to bill ratio at 1.6x (1.5x in 9M 2014) • Order book at € 17.6 BN (from € 14.6 BN in 9M 2014) • Group backlog at € 11.6 BN (from € 9.5 BN in 9M 2014) and soft backlog(1) at € 8.2 BN (€ 5.7
Slide 5: 9M 2015 main orders
9M 2015 main orders Vessel Client Delivery 2 Littoral Combat Ship units(1) US Navy after 2019 2 FREMM units Italian Navy after 2020 1 Logistic Support Ship unit Italian Navy 2019 Shipbuilding TO COME (LSS) Q2 6 Multipurpose Offshore Patrol Italian Navy 2021 - 2025 Ship units (PPA) 1 Multipurpose Amp
Slide 6: 9M 2015 main deliveries
9M 2015 main deliveries Vessel Client Shipyard Cruise ship “Britannia” P&O Cruises Monfalcone Shipbuilding Cruise ship “Viking Star” Viking Ocean Cruises Marghera Q1 OSCV “Far Sleipner” Farstad Shipping Vard Langsten Offshore Research and surveillance vessel “Marjata” Norwegian Navy Vard Langsten Cr
Slide 7: Summary of financial performance indicators
Summary of financial performance indicators(1) Comments € MM FY 2014 9M 2014 9M 2015 • Order intake at € 4.9 BN Order intake 5,639 4,247 4,852 • Order book at € 17.6 BN Order book 15,019 14,590 17,605 • Backlog at € 11.6 BN Backlog 9,814 9,472 11,558 • Soft backlog at € 8.2 BN Soft backlog 5,000 5,7
Slide 8: Order intake and backlog – by segment
Order intake and backlog – by segment Order intake Backlog Comments € MM € MM • Order intake at € 4.9 BN (€ 4.2 BN in 9M 1.5x 1.6x 2014), with book-to-bill ratio at 1.6x Soft 4,852 backlog ‒ Shipbuilding at € 4.1 BN, related to the € 8.2 BN Italian Navy’s fleet renewal program (8 4,247 473 Soft Soft
Slide 9: Backlog deployment – by segment and end market
Backlog deployment – by segment and end market Shipbuilding Offshore Comments # ship deliveries(1) # ship deliveries • Cruise Cruise Naval(2) − Visibility of deliveries up to 2018 without considering the agreements with Carnival and Virgin 9M 2015 3 9M 2015 3 9M 2015 11 − Extension of delivery dates
Slide 10: Revenues – by segment and end market
Revenues – by segment and end market Breakdown by segment and end market(1) Comments € MM 3,032 • Shipbuilding revenues at € 2.1 BN, 2,935 increased by 13.7% from 9M 2014 4.3% 4.8% 149 129 − Higher volumes in cruise partially offset by the effects of cost overruns 847 33.3% 27.3% on work in progress
Slide 11: EBITDA by segment
EBITDA(1) by segment EBITDA and EBITDA margin Comments € MM • Group EBITDA at € 6 MM (from € 207 MM in 9M 2014), with margin at 0.2% 7.1% 0.2% • Shipbuilding EBITDA at € 26 MM, with 207 margin at 1.2% − Margins impacted by low prices of 10.3% 13 ships under construction, higher costs 8.9% 89 caused
Slide 12: Profit/(loss) before extraordinary and non recurring items
Profit/(loss) before extraordinary and non recurring items(1) Profit/(loss) before extraordinary and non recurring items(1) Comments € MM • Profit/(loss) before extraordinary and non 68 recurring items at € (169) MM, vs. € 68 1 MM in 9M 2014 mainly due to: 67 − Lower EBIT (€ -206 MM) mainly (73) rel
Slide 13: Capital expenditures
Capital expenditures Capex Comments € MM • Capex in 9M 2015 equal to € 106 MM, 3.7% 3.5% of which: 110 106 ‒ Tangible for € 88 MM related to the 20 18 construction of new infrastructure and technological upgrading of facilities, 90 88 notably for hull construction and logistic support, to improve pr
Slide 14: Net working capital
Net working capital(1) Breakdown by main components Comments € MM • Net working capital at the end of 9M FY 2014 9M 2015 2015 increased to € 431 MM, compared to € 69 MM for FY 2014 with: Inventories net of advances 456 to suppliers ‒ Increase in work in progress (€ +614 388 MM) and inventories and a
Slide 15: Net financial position
Net financial position(1) Breakdown by main components Comments € MM – Net cash / (Net debt) • Net financial position at the end of 9M FY 2014 9M 2015 2015 at € 506 MM of net debt due to: ‒ Growth of volumes in cruise business Non-current financial receivables 90 where payment terms foresee Current
Slide 16: Key financial ratios
Key financial ratios Profitability ratios Debt ratios Comments ROI(1) (EBIT / Net invested capital) Net debt / EBITDA • ROI at -0.5% and ROE at -12.2% for € MM 9M 2015 significantly affected by the 238 506 negative results for the period and not directly comparable to 9M 2014 12.8% 0.8x • Net debt /
Slide 17: Outlook
Outlook • Convert the cruise strategic agreements signed into firm orders • Focus on managing the significant increase in engineering and production volumes in cruise business • Margins in Q4 2015 will continue to be affected by low profitability of cruise ships currently under construction, before
Slide 18: Investor Relations contacts
Investor Relations contacts Investor Relations Team Angelo Manca - VP Investor Relations +39 040 319 2457 angelo.manca@fincantieri.it Federica Capuzzo +39 040 319 2612 federica.capuzzo@fincantieri.it Tijana Obradovic +39 040 319 2409 tijana.obradovic@fincantieri.it Silvia Ponso +39 040 319 2371 silv
Slide 19: FINCANTIERI
< 0 Oo FINCANTIERI 19
Slide 20: Appendix
Appendix tn he FINCANTIERI
Slide 21: 9M 2015 results by segment
9M 2015 results by segment Shipbuilding Offshore Equipment, Systems and Services 21
Slide 22: Shipbuilding
Shipbuilding Highlights Comments € MM 9M 2014 9M 2015 • 8 units within the Italian Navy’s fleet • Orders: high order intake at € 4.1 BN, Order intake 3,086 4,148 renewal program (6 Multipurpose taking backlog to € 9.5 BN Order book 10,549 13,817 Offshore Patrol units, 1 Logistic Support ‒ Agreements
Slide 23: Offshore
Offshore Highlights Comments € MM 9M 2014 9M 2015 • 1 Diving Support and Construction Vessel • Orders: weak order intake at € 299 MM, (DSCV) for Kreuz Subsea due to a persistently challenging market Order intake 1,081 299 • 1 coastal fishing vessel for Breivik AS environment Order book 3,564 2,975 •
Slide 24: Equipment, Systems and Services
Equipment, Systems and Services Highlights Comments € MM 9M 2014 9M 2015 • Orders: order intake at € 473 MM taking Order intake 168 473 backlog at € 634 MM Order book 721 1,083 ‒ Mainly related to Italian Navy’s fleet renewal program and the conversion Backlog 327 634 of 4 “Minerva” class corvettes
Slide 25: Profit & Loss and Cash flow statement
Profit & Loss and Cash flow statement Profit & Loss statement (€ MM) 9M 2014 9M 2015 Revenues 2,935 3,032 Materials, services and other costs (2,105) (2,368) Personnel costs (617) (658) (1) Provisions (6) - EBITDA 207 6 Depreciation, amortization and impairment (75) (80) EBIT 132 (74) (2) Finance in
Slide 26: Balance sheet
Balance sheet Balance sheet (€ MM) FY 2014 9M 2015 Intangible assets 508 504 Property, plant and equipment 959 958 Investments 60 65 Other non-current assets and liabilities (48) (43) Employee benefits (62) (57) Net fixed capital 1,417 1,427 Inventories and advances 388 456 Construction contracts an