Fincantieri S.p.a. · MIL:FCT
Fincantieri — Investor Day (March 2016)
15 slides from Fincantieri's investor day presentation, Mar 31, 2016
Slide 1: Business Plan 2016-2020
Business Plan 2016-2020 31 March 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: Contents
Contents Key messages Strategy overview Short and medium term financial targets 3
Slide 4: Key messages
Key messages BUSINESS PLAN KEY MESSAGES STRATEGIC GOALS Growth Long term visibility Strengthening and development of Fincantieri All time high backlog at € 18.7 BN, of which global leadership in the Cruise, Naval, Offshore soft backlog € 3.0 BN, and substantial and high value-added Equipment, System
Slide 5: Shipbuilding - Cruise: growing market
Shipbuilding - Cruise: growing market Dynamics of cruise ships market Dynamics of global tourism and cruise passengers MM people CAGR Historical trends (2013-2015) ’08-’14 ’14-’20 Total tourists • Starting in 2014, significant recovery of demand, with record orders in 2015 (19 Cruise tourists 1,800
Slide 6: Shipbuilding - Cruise: strategy and action plan
Shipbuilding - Cruise: strategy and action plan Description Timing/status Revenue growth • Development of the important backlog and soft backlog as of today (over 90% of • Ongoing 2016-2020 revenues covered by contracts and/or MOA), driven by a strong and dedicated management team • Commercial syner
Slide 7: Shipbuilding - Naval: market opportunities
Shipbuilding - Naval: market opportunities Description Estimated defense spending for naval vessels (foreign markets accessible to Fincantieri(1)) € BN Fincantieri’s accessible markets • Countries with naval shipbuilding capabilities where the Group already 10.4 operates 8.7 6.8 − Italy: Italian Nav
Slide 8: Shipbuilding - Naval: commercial strategy
Shipbuilding - Naval: commercial strategy Description Timing/status Consolidation and • Italy: execution of Italian Navy’s fleet renewal program development of − 9 vessels in backlog (7 Multipurpose Offshore Patrol units, 1 Logistic Support Ship, 1 • Deliveries up to 2026 existing programs Multipurp
Slide 9: 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 10: Offshore: market overview
Offshore: market overview Description E&P Capex USD BN Offshore Oil&Gas: forecast (2016-2020) 410 446 446 347 345 313 310 340 360 • Negative outlook for PSV and AHTS 292 264 299 demand due to oversupply following oil price fall and significant postponements of 2008 2009 2010 2011 2012 2013 2014 2015
Slide 11: Offshore: strategy and action plan
Offshore: strategy and action plan Description Timing/status Revenue growth • Diversification into new vessel segments: • Started in 2015 – 100% of − aquaculture Vard 2015 orders came − offshore wind from new clients − passenger (exploration cruise) and Offshore Patrol Vessel (OPV) in cooperation wi
Slide 12: Equipment, Systems and Services: strategy
Equipment, Systems and Services: strategy Description Timing/status Continuous growth of • Systems & Components: development of the relevant backlog (e.g. renewal of • Ongoing traditional businesses Italian Navy’s fleet) and increase of non-captive business (e.g. turbines) • Naval after-sales: expan
Slide 13: Short and medium term financial targets (1/2)
Short and medium term financial targets (1/2) 2015 2016 2018 2020 € BN, % +16/21% +4/6% +16/23% 4.2 ~7-8% Revenues and EBITDA ~6-7% margin ~5% -0.6% 2015A 2016E 2018E 2020E € BN ~ 0.4/0.5 ~ 0.0/0.3 ~ 0.1/0.3 0.3 Net working capital Consolidated – (including construction Fincantieri Group loans) 2015
Slide 14: Short and medium term financial targets (2/2)
Short and medium term financial targets (2/2) • Current funding needs driven by higher cruise volumes, implying a relevant amount of working capital employed in construction projects due to payment terms of cruise contracts • This trend is expected to continue during 2016 due to deployment of cruise
Slide 15: FINCANTIERI
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