Fincantieri S.p.a. · MIL:FCT
Fincantieri — Non-Deal Roadshow (October 2021)
32 slides from Fincantieri's roadshow presentation, Oct 20, 2021
Slide 1: Intermonte – Virtual Roadshow
FINCANTIERI I NTERMONTE – V IRTUAL R OADSHOW October 20, 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 FIGURES international clients • € 37.0 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 markets and sizeable backlog market, 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 Back to profitability: revenues up 28%, EBITDA +84%, adjusted net income €49 mln, guidance confirmed Revenues (€ mln) 3,251 REVENUES EXCLUDING PASS-THROUGH Confirmed guidance on FY 2021 with revenues expected to reach more than +25% 3,026 2,369 ACTIVITIES +28% YOY YoY and EBITDA
Slide 12: Business update
Business update Continuous focus on strategic development CRUISE 5 cruise ships successfully delivered, out of which 3 in July: Viking Venus to Viking Cruises (April), Hanseatic Spirit to Hapag-Lloyd (June), Valiant Lady to Virgin Voyages (July), MSC Seashore to MSC (July), and Rotterdam to Hollan
Slide 13: Key strategic initiatives
Key strategic initiatives Seizing future opportunities alongside our strategic partners E COLOGIC AL S U S TAI N AB L E I NDUSTRIAL TRANS ITION MOBILITY A U T O M AT I O N Letter of Intent with Enel X to build and run Fincantieri NexTech: agreement with LoI with Comau to develop prototypes of
Slide 14: Update on ESG
Update on ESG Our sustainability strategy responds to our mission of representing a global model of excellence E NVIRONMENTAL S OCIAL G OVERNANCE R AT I N G S & AWA R D S TACKLING C L I M AT E PROTECTING OUR P ROMOTING AN EFFECTIVE SPOTLIGHT ON CHANGE P E O P L E ’ S H E ALT H & TAX R I S K C O N T
Slide 15: New orders and main deliveries
New orders New orders received across all segments with a cumulative value of €1.7 bn Segment Vessel Client Expected Delivery FFG-62 frigate(1) US Navy - Somnio(1) Somnio Superyachts 2024 3 Service Operation Vessels North Star Renewables 2023 Specialized Vessels Main deliveries 7 ships successfully
Slide 16: Backlog deployment
Backlog deployment Well-balanced visibility both in Cruise and Naval, 3 new orders in Offshore and Specialized Vessels Shipbuilding Offshore & Specialized Vessels # ship deliveries # ship deliveries CRUISE 2021 2 6 8 NAVAL 2021 3 5 8 OSV 2021 2 2 4 35 VESSELS 2022 7 36 VESSELS 2022 9 22 VESSELS 2022
Slide 17: Order intake and backlog
Order intake and backlog Sizeable order intake in ESS and hefty soft backlog Order intake breakdown by segment Total backlog breakdown by segment(1) € mln € mln 0.7x 0.6x 6.5x 6.1x 7.1x 37.912 37.012 35.681 Stable order intake at €1.8 bn, thanks to the positive impact of 9.900 9.400 ESS 1.753 7.90
Slide 18: Revenues
Revenues Record-high production volumes in shipbuilding drive robust revenue performance in line with guidance on 2021 Revenues breakdown by segment(1) € mln +27.7% 3.251 3.026 481 Revenues excluding pass-through activities 481 2.369 220 are up 27.7% YoY thanks to record-high 220 production volumes
Slide 19: EBITDA
EBITDA Better operating margin thanks to higher production volumes and marginality despite higher steel prices EBITDA breakdown by segment(1) € mln +84.0% EBITDA margin at 7.2% excluding 5.0% 7.2% pass-through activities mainly thanks 6.7% to the positive contribution from 219 219 Shipbuilding despi
Slide 20: EBITDA growth
EBITDA growth Better operating margin thanks to higher production volumes and improved marginality EBITDA breakdown by segment mainly driven by higher production volumes and improved operating margin increased operating profitability despite Production volumes Operating margin Other EBITDA lower pro
Slide 21: Net result
Net result Back on track towards profitability despite €42 mln extraordinary items weighting on the bottom line 1H 2021 net result and adjusted net result(1) € mln Profit/(loss) COVID-19 Asbestos related Other Tax effect Adjusted Adjusted net profit at €49 mln (€49 extraordinaries litigations extr
Slide 22: Capex
Capex Investments aimed at strenghtening our execution capabilities at global level Capex by segment € mln 5.2% 5.3% 160 11 Scale up of European and US % of Revenues 12 shipyards in order to compress lead 122 2 times and improve efficiency, Other activities 16 including completion of the upgrade
Slide 23: Net working capital and net financial position
Net working capital and net financial position With 6 cruise ships being delivered in 2H, cash-in is skewed towards the second half of the year Net Working Capital breakdown by component Net Financial Position breakdown by component(1) € mln € mln 826 881 1.666 96 1.963 76 131 Net debt dynamics ar
Slide 24: Strategy & Outlook
SECTION 3 m STRATEGY & OUTLOOK FINCANTIERI The sea ahead
Slide 25: Update on cruise
Update on cruise 141 ocean ships should enter service by the end of July with 50 brands already operating at global level From May 2021 Europe has pioneered the cruise restart on national routes and with enhanced safety protocols In the UK, the cruise ban was lifted on 17 May. Domestic cruises a
Slide 26: Business outlook
Business outlook Confirmed FY 2021 guidance despite increasing steal prices FY 2021 revenues expected at above +25% YoY and REVENUES EBITDA margin 7 .0 % despite increasing trend in Net debt at €1 .2 bn as of July 2021 (3 cruise ships & commodity prices NET delivered in July with cumulative cash
Slide 27: Appendix
APPENDIX FINCANTIERI The sea ahead
Slide 28: Financial overview – Shipbuilding
Financial overview – Shipbuilding Orders, backlog and deliveries Revenues EBITDA Capex € mln € mln € mln 5.7% 7.1% 7.7% Orders: €1,080 mln (€1,364 mln in 1.014 789 1H 2021) 527 - Residential yacht Somnio 2,916 2,691 - Second Constellation-class 2,031 1.902 1.902 206 206 135 frigate to the US Navy
Slide 29: Financial overview – Offshore & Specialized Vessels
Financial overview – Offshore & Specialized Vessels Orders, backlog and deliveries Revenues EBITDA Capex € mln € mln € mln Orders: €174 mln (€164 mln in 1H -0.4% 1.9% 2020) Backlog: €879 mln (€744 mln in 228 220 1H 2020) 4 1H 2020 2 2 Deliveries(1): 1H 2020 1H 2021 (1) 1H 2021 1H 2020 1H 2021
Slide 30: Financial overview – Equipment, Systems & Services
Financial overview – Equipment, Systems & Services Orders, backlog and deliveries Revenues EBITDA Capex € mln € mln € mln 6.0% 6.6% Orders: €481 mln including new MSC cruise terminal at PortMiami (vs €392 mln in 1H 2020) 481 Backlog: €3,606 mln vs €1,951 392 32 24 12 12 mln in 1H 2020 1H 2020 1H
Slide 31: Financial overview – Profit & Loss and Cash flow statement
Financial overview – Profit & Loss and Cash flow statement € mln 1H 2020 1H 2021 Revenues 2,369 3,251 3,026 Materials, services and other costs (1,810) (2,472) (2,247) Personnel costs (432) (546) (546) Provisions (8) (14) (14) EBITDA 119 219 219 Depreciation, amortization and impairment (65) (96) (9
Slide 32: Financial overview – Balance sheet
Financial overview – Balance sheet € mln FY 2020 1H 2021 Intangible assets 629 628 Right-of-use asset 85 106 Property, plant and equipment 1,301 1,390 Investments 105 119 Other non-current assets and liabilities (25) (25) Employee benefits (60) (60) Net fixed assets 2,035 2,158 Inventories and advan