Slide 1: 2019 Full Year Results
2019 FULL YEAR RESULTS April 02, 2020
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: Key Messages: Preserving backlog in the COVID-19 emergency
Key Messages Preserving backlog in the COVID-19 emergency • Timely implemented countermeasures aimed at safeguarding employees' health and well-being, with the suspension of production activities starting from March 16, 2020 COVID-19 • To the extent that the situation stabilizes within a reasonable
Slide 4: Key Messages: Continuing focus on strategic developments
Key Messages Continuing focus on strategic developments • Incorporated Naviris, 50/50 joint venture with Naval Group, currently fully operating • The milestone falls within the consolidation strategy of the European naval industry aiming JV Naval at creating a worldwide leader in product performance
Slide 5: FY 2019 main orders: cruise ships and naval vessels in the US
FY 2019 main orders 13 cruise ships and 5 naval vessels in the US Segment Vessel Client # of units Expected Delivery Oceania Cruises 2 2022-2025 Regent Seven Seas Cruises 1 2023 Cruise Ships Viking Cruises 2 2024-2025 MSC Cruises 4 2023-2026 Princess Cruises 2 2023-2025 Ponant 2 2022 Shipbuilding Fe
Slide 6: FY 2019 main deliveries: 26 ships from 12 shipyards
FY 2019 main deliveries(1) 26 ships from 12 shipyards Segment Vessel Client Shipyard Cruise ship “Viking Jupiter” Viking Cruises Ancona Cruise Ship “Carnival Panorama” Carnival Marghera Cruise ship “Costa Venezia” Costa Crociere Monfalcone Cruise Ship “Sky Princess” Carnival Monfalcone Expedition cr
Slide 7: Overview of 2019 main deliveries
Overview of 2019 main deliveries Viking Jupiter Costa Venezia LCS 15 – USS Billings FREMM Marceglia Shipbuilding Ponant Le Dumont d'Urville Ponant Le Bougainville Hapag-Lloyd Hanseatic Nature LCS 17 – USS Indianapolis Hapag-Lloyd Hanseatic Inspiration Carnival Sky Princess Carnival Panorama Offshore
Slide 8: Order intake and backlog
Order intake and backlog Breakdown by segment Order intake Total backlog(1) € mln € mln 6.2x 5.6x 1.6x 1.5x 4.7x 4.9x 4,100 8,300 1,736 • Total backlog at €32.7 bln, 888 8,617 8,692 1,638 covering ~6 years of work if 1,006 842 987 compared to 2019 revenues 207 913 • Backlog up 12.0% vs 2018 Backlog
Slide 9: Backlog deployment
Backlog deployment Breakdown by segment and end market Shipbuilding Offshore & Specialized Vessels # ship deliveries # ship deliveries Cruise Naval(1) 2019 15 • 26 units delivered in FY 2019, 98 2019 8 2019 3 ships in backlog • Cruise: 46 vessels 2020 5 1 6 2020 8 1 9 2020 8 − Deliveries up to 2027
Slide 10: Revenues
Revenues Revenues breakdown by segment(1) € mln 5,849 5,474 5,416 899 10.8% 651 10.9% 651 14.0% 440 • Record-high revenues at €5,849 681 623 11 11.3% 10.5% 6.8% mln (+8.0% vs FY 2018) 18 18 − Shipbuilding revenues up 8.8% 1,503 on the back of increased volumes 1,434 1,434 both in Italy and at Vard −
Slide 11: EBITDA
EBITDA EBITDA(1) and EBITDA margin € mln 7.6% 7.8% 5.5% 414 421 320 73 73 • EBITDA at €320 mln with EBITDA 11.2% 11.2% 10.0% 90 margin at 5.5% − Excellent profitability of the Italian operations negatively affected by Vard cruise performance 8.5% 395 8.5% 395 7.4% 375 − Positive contribution from Eq
Slide 12: Net result
Net result Adjusted Net result(1) € mln 2.0% 2.1% -1.2% 108 114 • Increased FX charges (partially non-cash) 111 117 • Increased extraordinary and non (71) recurring items: (3) (3) (64) − €53 mln for litigations (€40 mln (7) for asbestos-related claims) FY 2018 - FY 2018 - Reported Restated FY 2019 −
Slide 13: Capital expenditure
Capital expenditure Capex € mln 2.9% 4.8% 279 61 161 • Tangible capex mainly related to: 37 218 − Upgrading Italian yards in order 124 to adjust the production capacity FY 2018 FY 2019 to the construction of large vessels and substantially higher Tangible Intangible % of Revenues volumes Capex by se
Slide 14: Net working capital
Net working capital(1) Breakdown by main components € mln FY 2018 FY 2019 Inventories and advances to suppliers 828 Work in progress net of 881 advances from customers • Increase of Work in progress and 1,415 trade payables due to the growth 936 of production volumes with 2 Trade receivables cruise
Slide 15: Net financial position
Net financial position Breakdown by main components € mln – Net cash / (Net debt) FY 2018 FY 2019 63 17 Non-current financial receivables 91 2 677 382 Current financial receivables • Increase of net debt mainly related to investments and cruise-specific financial dynamics Cash & cash equivalents (39
Slide 16: Outlook
Outlook • COVID-19: since its outbreak, COVID-19 posed a major threat to national healthcare systems, social wellbeing and the global economy, thus urging Government Authorities to undertake strict countermeasures and lockdown protocols • Tackling the emergency: Fincantieri reacted promptly to prote
Slide 17: Investor Relations contacts
Investor Relations contacts Investor Relations Team Tijana Obradovic – Head of Investor Relations +39 040 319 2409 tijana.obradovic@fincantieri.it Caterina Venier Romano +39 040 319 2229 caterina.venierromano@fincantieri.it Valentina Fantigrossi +39 040 319 2243 valentina.fantigrossi@fincantieri.it
Slide 18: Q&A
Q&A FINCANTIERI The sea ahead
Slide 19: Appendix
Appendix he sea ahea d
Slide 20: Financial Overview - Shipbuilding
Financial Overview - Shipbuilding Revenues • Revenues: €5,088 mln (+8.8% vs FY 2018) € mln 18 18 11 − Cruise up 10,8%, driven by the construction of bigger and 1,503 more valuable vessels in Italy and higher volumes in Vard 1,434 1,434 Other Shipbuilding − Volumes in Naval guaranteed both by the pro
Slide 21: Financial Overview – Offshore and Specialized Vessels
Financial Overview – Offshore and Specialized Vesels Revenues € mln • Revenues: €440 mln (-29.4% vs FY 2018) − Decrease in volumes related to the lack of order intake in 681 623 core business 440 • EBITDA: €(107) mln, with margin at -24.2% − Impacted by the review of estimated costs at completion FY
Slide 22: Financial Overview – Equipment, Systems & Services
Financial Overview – Equipment, Systems & Services Revenues € mln 899 651 651 • Revenues: €899 mln (+38.1% vs FY 2018) − Increased volumes mainly attributable to navel services, FY 2018 FY 2018 Reported Restated FY 2019 repair and conversion activities, as well as to the contribution from Fincantier
Slide 23: Profit & Loss and Cash flow statement
Profit & Loss and Cash flow statement Profit & Loss statement (€ mln) FY 2018 Reported FY 2018 Restated FY 2019 Revenues 5,474 5,416 5,849 Materials, services and other costs (4,089) (4,029) (4,497) Personnel costs (946) (941) (996) Provisions(1) (25) (25) (36) EBITDA 414 421 320 Depreciation, amort
Slide 24: Balance sheet
Balance sheet Balance sheet (€ mln) FY 2018 FY 2019 Intangible assets 618 744(1) Property, plant and equipment 1,074 1,225 Investments 60 75 Other non-current assets and liabilities 8 (79) Employee benefits (57) (60) Net fixed assets 1,703 1,905 Inventories and advances 881 828 Construction contract