Slide 1: Update post 9M 2017 Results
FINCANTIERI Update post 9M 2017 Results December, 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 9M 2017 results and outlook Section 3 Appendix - Historical financial performance Carnival Vista Carnival Cruise Lines “ECO Notation” by Lloyd‘s Register for exceeding environmental standards
Slide 4: Introduction
Section 1 Introduction FREMM “Alpino” Italian Navy Best in class in terms of endurance
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 € 4,429 mln revenues 4 continents Romania China • 2 shipyards • 1 Joint Venture ~ € 25.3 bln total backlog(2,3) ~ 19,200 employees • € 20.3 bln backlog ~ 80,0
Slide 6: Business units, products and positioning
Business units, products and positioning End markets Main products Positioning Revenues 2016(4) Backlog(5) Cruise • All cruise ships • #1 worldwide (from contemporary to luxury) (~45% market share(1)) € 2,078 mln (44.2% on total) Naval • All surface vessels (also stealth) • Leader: • Support & Speci
Slide 7: Track record, clients and technological leadership
Track record, clients and technological leadership 1 Track record 2 Clients 3 Technological leadership Cruise (3) Ship deliveries • Carnival Vista: “ECO Notation” by Lloyd‘s • Twofold Register for exceeding environmental standards • 1990 – 2001 23 • Royal Princess: 1st cruise ship fully compliant in
Slide 8: 9M 2017 results
Section 2 9M 2017 results Skandi Africa DOF Ship of the Year 2015
Slide 9: 9M 2017 Key Messages
9M 2017 Key Messages • 9M 2017 results in line with Business Plan 2016-2020 targets: revenues up 10.7% vs 9M 2016 and EBITDA margin at 6.5% vs 5.7% 9M 2016 • Total backlog(1) at € 25.3 bln covering ~6 years of work if compared to 2016 revenues: − Backlog at € 20.3 bln (97 ships) up from € 19.0 bln i
Slide 10: 9M 2017 main orders
9M 2017 main orders Orders acquired in Q3 Vessel Client Delivery 4 cruise ships Norwegian Cruise Line 2022-2025 TBU 1 cruise ship Holland America Line 2021 (Carnival Corporation) Shipbuilding 1 cruise ship Princess Cruises 2022 (sixth “Royal Princess” class vessel) (Carnival Corporation) 1 cruise sh
Slide 11: 9M 2017 main deliveries (1/2)
9M 2017 main deliveries (1/2) Deliveries in Q3 Vessel Client Delivery Cruise ship “Viking Sky” Viking Ocean Cruises Ancona Cruise ship “Majestic Princess” Princess Cruises Monfalcone (Carnival Corporation) Cruise ship “Silver Muse” Silversea Cruises Sestri Ponente FREMM “Rizzo” Italian Navy Muggiano
Slide 12: 9M 2017 main deliveries (2/2)
9M 2017 main deliveries (2/2) Deliveries in Q3 Vessel Client Delivery OSCV “Skandi Buzios” Techdof Vard Søviknes OSCV “Far Superior” Farstad Vard Vung Tau OSCV “Skandi Vinland” DOF Vard Langsten Offshore 2 Module Carrier Vessels Topaz Energy and Marine Vard Vung Tau 2 Module Carrier Vessels Kazmortr
Slide 13: Overview of financial performance indicators
Overview of financial performance indicators(1) € mln FY 2014 FY 2015 FY 2016 9M 2016 9M 2017 Order intake 5,639 10,087 6,505 6,308 5,485 Total backlog 14,814 18,721 24,031 21,777 25,299 Of which backlog 9,814 15,721 18,231 18,977 20,299 Of which soft backlog 5,000 3,000 5,800 2,800 5,000 Revenues 4
Slide 14: Order intake and backlog – by segment
Order intake and backlog – by segment Order intake Total backlog(1) € mln € mln 2.0x 1.5x 5.2x 5.4x 5.7x 6,308 5,000 538 5,800 5,485 2,800 1,227 1,084 465 1,151 1,300 1,501 1,155 486 1,361 Backlog Backlog 20,299 5,133 Backlog 18,231 18,572 4,848 17,022 16,372 18,977 (447) (314) (697) (657) (800) (3)
Slide 15: Backlog deployment
Backlog deployment Shipbuilding Offshore # ships deliveries(1) # ships deliveries Cruise Naval(2) 2017 4 1 5 2017 5 4 9 2017 7 7 14 2018 5 2018 5 2018 23 5 28 2019 4 2019 4 2019 4 2 6 2020 4 1 5 2020 4 2020 - 2021 1 1 2 2021 4 2021 - Delivered in 9M 2017 New orders in 9M 2017 • Additional 6 units sc
Slide 16: Revenues and EBITDA – by segment
Revenues and EBITDA(1) – by segment Breakdown by segment(2) EBITDA and EBITDA margin € mln € mln 5.7% 6.5% 3,575 233 3,230 9.6% 367 11.0% 40 10.5% 360 185 17.5% 666 4.9% 33 21.2% 723 13.5% 49 5.1% 37 72.9% 2,779 6.6% 184 68.3% 2,333 5.2% 121 (186) (237) (22) (24) (3) (3) 9M 2016 9M 2017 9M 2016 9M 2
Slide 17: Net working capital and net debt
Net working capital and net debt(1) Breakdown by main components Comments € mln FY 2016 9M 2017 • Net working capital and net debt dynamics related to the production Inventories and advances to volumes in cruise and the cash-in of suppliers the final installments for the cruise Work in progress net
Slide 18: Outlook
Outlook Shipbuilding • Further increase of revenues in the last quarter of 2017 ‒ Delivery of a prototype for MSC, the largest ship ever built in Italy ‒ Italian Navy’s fleet renewal program fully operational ‒ Full swing of design activities related to the Qatari order Offshore • Crisis persisting
Slide 19: Short and medium term financial targets
Short and medium term financial targets 2016 2018 2020 € BN, % +16/21% +16/23% +4/6% vs 2015 (4.3/4.4) 4.4 Revenues 2016E 2016A 2018E 2020E ~7-8% ~6-7% 6.0% ~5% EBITDA margin 2016E 2016A 2018E 2020E € BN ~ 0.7/0.8 0.6 ~ 0.4/0.6 Net debt ~ 0.1/0.3 2016E 2016A 2018E 2020E 19
Slide 20: Shipbuilding: quantifying main drivers of growth and increasing profitability
Shipbuilding: quantifying main drivers of growth and increasing profitability Cruise ships by delivery year: prototypes, sister ships and quasi-sister ships % • Fewer prototypes to be 20% Cruise: mix Sister ships delivered from 2017: lower 67% prototypes/ 80% 100% 100% 80% and quasi- execution risks
Slide 21: Appendix: Historical financial performance
Section 3 Appendix Historical financial performance
Slide 22: Financial performance
Financial performance Revenues(1) EBITDA / margins(2) € mln € mln 6.8% -0.6% 6.0% 4,399 4,429 4,183 192 495 (3) 297 498 267 960 11.1% 21 1,580 1,199 12 12.5% 62 6.8% 108 206 23 1,156 51 5.3% 1,056 1,059 3,246 2,704 2,652 7.2% 195 185 2,078 5.7% 1,439 1,573 8.4% 42 (77) (166) (272) (27) -1.3% (34) (3
Slide 23: Financial performance
Financial performance EBIT / margins Net result before extraordinary and non recurring items(1) € mln € mln 87 60 99 66 4.5% -3.3% 3.5% (12) (6) (141) (111) (252) FY 2014 FY 2015 FY 2016 198 157 of which Group of which minority interests Net result € mln 55 14 (137) 67 (12) 25 (11) (175) FY 2014 FY
Slide 24: Capex
Capex Capex evolution Capex by segment € mln € mln 3.7% 3.8% 5.1% 224 224 20 8 80 31 162 161 162 161 12 13 5 10 38 39 47 31 165 144 124 122 98 107 (1) FY 2014 FY 2015 FY 2016 FY 2014 FY 2015 FY 2016 Shipbuilding Property, plant and equipment Intangible assets % of Revenues Offshore Equipment, System
Slide 25: Net working capital
Net working capital(1) Breakdown by main components € mln FY 2014 FY 2015 FY 2016 405 Inventories and advances to suppliers 590 388 1,876 604 Work in progress net of advances from customers 1,112 1,123 Trade receivables 610 560 Other current assets and liabilities (18) 59 (196) (678) Construction lo
Slide 26: Net financial position
Net financial position(1) Breakdown by main components € mln – Net cash / (Net debt) FY 2014 FY 2015 FY 2016 Non-current financial receivables 90 82 Current financial receivables 113 552 53 115 Cash & cash equivalents 33 260 220 Short term financial liabilities (80) (263) (453) (600) Long term finan
Slide 27: 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 28: Profit & Loss and Cash flow statement
Profit & Loss and Cash flow statement Profit & Loss statement (€ mln) FY 2014 FY 2015 FY 2016 Revenues 4,399 4,183 4,429 Materials, services and other costs (3,234) (3,337) (3,291) Personnel costs (843) (865) (846) (1) Provisions (25) (7) (25) EBITDA 297 (26) 267 Depreciation, amortization and impai
Slide 29: 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 FY 2016 A Net result before extraordinary and non recurring items(1) 87 (252) 60 Attributable to owners of the parent 99 (141) 66 B Extraordinary and non recurri
Slide 30: Balance sheet
Balance sheet Balance sheet (€ mln) FY 2014 FY 2015 FY 2016 Intangible assets 508 518 595 Property, plant and equipment 959 974 1,064 Investments 60 62 58 Other non-current assets and liabilities (48) (44) (69) Employee benefits (62) (57) (58) Net fixed assets 1,417 1,453 1,590 Inventories and advan