Slide 1: 2016 Half-Year Results
2016 HALF-YEAR RESULTS 21 July 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: 1H 2016 Key Messages
1H 2016 Key Messages • Guidance 2016 and medium term targets confirmed: solid 1H 2016 results, with positive net result at € 5 mln after extraordinary and non recurring items and 5.0% EBITDA margin, mark a turning point for the Group compared to the second half of 2015 (margin of 5.0% in 1H 2016 vs
Slide 4: Contract with Qatari Ministry of Defence: a true commercial milestone
Contract with Qatari Ministry of Defence: a true commercial milestone • In June 2016 Fincantieri and the Qatari Ministry of Defence have signed a contract for the construction of seven new generation surface vessels included in the national naval acquisition programme of the Qatar Emiri Naval Forces
Slide 5: JV agreement with China State Shipbuilding Corporation
JV agreement with China State Shipbuilding Corporation Description • In July 2016, Fincantieri and China State Shipbuilding Corporation (CSSC) have signed an agreement for the constitution of a joint venture aimed at developing and supporting the growth of the Chinese cruise industry • The agreement
Slide 6: 1H 2016 main orders
1H 2016 main orders Orders acquired in Q2 Vessel Client Delivery 1 ultra-luxury cruise ship Regent Seven Seas Cruises 2020 (“Seven Seas Explorer” sister ship) (Norwegian Cruise Line Holdings) 1 Littoral Combat Ship US Navy 2020 Shipbuilding 1 cruise ship Princess Cruises 2020 (fifth “Royal Princess”
Slide 7: 1H 2016 main deliveries
1H 2016 main deliveries Deliveries in Q2 Vessel Client Shipyard Cruise ship “Viking Sea” Viking Ocean Cruises Ancona Cruise ship “Koningsdam” Holland America Line Marghera (Carnival Corporation) Shipbuilding Cruise ship “Carnival Vista” Carnival Cruise Lines Monfalcone Cruise ship “Seven Seas Explor
Slide 8: Order intake and backlog – by segment
Order intake and backlog – by segment Order intake Backlog Comments € mln € mln Soft • Consistent growth of backlog across all backlog(3) segments, notably in Shipbuilding 1.9x 2.6x € 2.5 bln Soft 19,290 • Order intake backlog(3) − Shipbuilding: 12 units (2 cruise ships, Soft € 3.0 bln 873 backlog(3
Slide 9: Backlog deployment – by segment and end market
Backlog deployment – by segment and end market Shipbuilding Offshore Comments # ship deliveries(1) # ship deliveries • 103 ships in backlog at 30 June 2016 Cruise Naval(2) • Cruise: 21 vessels − Visibility of deliveries up to 2022 with 2016 4 1 5 2016 3 7 10 2016 8 9 17 2 units scheduled after 2020
Slide 10: Revenues – by segment and end market
Revenues – by segment and end market Breakdown by segment and end market(1) Comments € mln • Shipbuilding 2,220 2,266 − Growth of volumes in cruise (13 units under construction) now representing 4.2% 95 5.6% 131 44% of total Group revenues − Decrease in other activities primarily 23.1% 536 27.5% 626
Slide 11: EBITDA by segment
EBITDA(1) by segment EBITDA and EBITDA margin Comments € mln • Turning point vs. negative EBITDA of 2H 5.8% -7.8% 5.0% 2015 caused by extra costs on cruise ships in delivery in 2016 128 113 • Shipbuilding 11.9% 11 16.4% − Gradual margin recovery with the 29 22 4.6% delivery of highly complex prototy
Slide 12: Net result
Net result Profit before extraordinary and non recurring items(1) Comments € mln • Result before extraordinary and non recurring items reflects 19 − Lower finance expenses at € 32 mln 23 19 (€ 62 mln in 1H 2015), which include unrealized foreign exchange income (30) for € 19 mln related to a Vard Pr
Slide 13: Capital expenditures
Capital expenditures Capex Comments € mln • Tangible capex mainly aimed at 3.1% 4.1% supporting the development of 94 production volumes, including a larger 68 31 launching system for the production of 12 cruise sections in Romania, and improving safety conditions and 56 63 compliance with environme
Slide 14: Net working capital
Net working capital(1) Breakdown by main components Comments € mln FY 2015 1H 2016 • Net working capital decreased to € 135 mln, from € 251 mln in FY 2015 due to 405 ‒ Delivery of several cruise ships Inventories and advances to suppliers 530 ‒ Reduction of volumes at VARD yards ‒ Positive variation
Slide 15: Net financial position
Net financial position(1) Breakdown by main components Comments € mln – Net cash / (Net debt) FY 2015 1H 2016 • Net debt at the end of 1H 2016 at € 408 mln, down from € 438 mln in FY 2015 ‒ Cash generated from deliveries in 1H 2016 partially offset by cash absorption of investing activities and Non-
Slide 16: Outlook
Outlook • Guidance 2016 confirmed • Guidance 2018 confirmed • Guidance 2020 confirmed ‒ Revenue increase 4-6% vs. 2015 ‒ Revenue increase 16-23% vs. ‒ Revenue increase 16-21% vs. Guidance ‒ EBITDA margin ~ 5% 2016 2018 ‒ Positive net result ‒ EBITDA margin ~ 6-7% ‒ EBITDA margin ~ 7-8% ‒ Net debt at
Slide 17: 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 18: Fincantieri
< 0 Oo FINCANTIERI
Slide 19: Appendix
Appendix tn he FINCANTIERI
Slide 20: 1H 2016 results by segment
1H 2016 results by segment Shipbuilding Offshore Equipment, Systems and Services 20
Slide 21: Shipbuilding
Shipbuilding Highlights Comments € mln FY 2015 1H 2015 1H 2016 • 1 cruise ship for Princess • Orders: order intake at € 5,112 mln Order intake 9,262 3,752 5,112 Cruises taking backlog to € 17,565 mln Order book 18,540 12,353 21,804 • 1 cruise ship for Regent • Revenues: at € 1,659 mln, up 6.7% Seven
Slide 22: Offshore
Offshore Highlights Comments € mln FY 2015 1H 2015 1H 2016 • 4 small-sized cruise vessels • Orders: order intake at € 729 mln taking Order intake 402 140 729 for Ponant backlog to € 1,266 mln • 15 module carrier vessels for • Revenues: at € 536 mln, down 14.4% Order book 2,729 2,917 2,447 Topaz Ener
Slide 23: Equipment, Systems and Services
Equipment, Systems and Services Highlights Comments € mln FY 2015 1H 2015 1H 2016 • Orders: order intake at € 271 mln taking Order intake 639 306 271 backlog at € 873 mln Order book 1,181 932 1,390 • Revenues: up to € 131 mln Backlog 732 513 873 − Increase of volumes both in after Revenues 226 95 13
Slide 24: Profit & Loss and Cash flow statement
Profit & Loss and Cash flow statement Profit & Loss statement (€ mln) FY 2015 1H 2015 1H 2016 Revenues 4,183 2,220 2,266 Materials, services and other costs (3,337) (1,636) (1,712) Personnel costs (865) (459) (431) (1) Provisions (7) 3 (10) EBITDA (26) 128 113 Depreciation, amortization and impairme
Slide 25: Balance sheet
Balance sheet Balance sheet (€ mln) FY 2015 1H 2015 1H 2016 Intangible assets 518 533 546 Property, plant and equipment 974 977 1,014 Investments 62 69 57 Other non-current assets and liabilities (44) (36) (28) Employee benefits (57) (58) (61) Net fixed assets 1,453 1,485 1,528 Inventories and advan