Slide 1: Business Plan 2018-2022
Business Plan 2018-2022 FINCANTIERI The sea ahead
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 Market overview and strategic developments Section 2 Short and medium term financial targets
Slide 4: The story so far…
The story so far… What we said… …what we did… ….what we will achieve Cruise • Only 3 prototype ships to be delivered • Delivered 5 prototypes on time in in 2018-2022 • Backlog de-risking 2016 - 2017 • Continuing operational integration of • Synergies with Vard: integration of • Tonnage delivered to
Slide 5: ...and continuing successfully on a profitable growth path
...and continuing successfully on a profitable growth path Strong top line Greater efficiency expansion and and positive market consolidation as a momentum to drive global champion in a structural the shipbuilding increase in industry profitability Targets Key pillars of the 2018-2022 Business Plan
Slide 6: Market overview and strategic developments
Section 1 Market overview and strategic developments LCS 7 LCS 7 US US Navy FREMM FREMM Navy MSC Seaside Iitalian Iitalian Navy Navy MSC Cruises
Slide 7: Shipbuilding - Cruise: growing market
Shipbuilding - Cruise: growing market Dynamics of cruise ships market Dynamics of global tourism and cruise passengers Historical trends (2013-2017) MM people CAGR(1) Total tourists ’08-’17 ’17-’22 • Starting from 2014, significant recovery Cruise tourists +4.0% +2.4% in demand, with record orders i
Slide 8: Shipbuilding - Cruise: strategy and action plan
Shipbuilding - Cruise: strategy and action plan Description Revenue growth • Deployment of vast backlog − over 90% of cruise revenues spanning the Plan’s horizon covered by existing contracts and/or MOAs • Acquisition of new clients and expansion into new geographical areas Positive market • Confirm
Slide 9: Shipbuilding - Naval: market opportunities
Shipbuilding - Naval: market opportunities Description Programs value and expenditure Fincantieri’s accessible markets(1) Value of programs 2018 -2022 Expenditure 2018-2022 • The value of high-likelihood programs(2), with expected allocation date in the 2018-2022 period, amounts to approx. €52 billi
Slide 10: Shipbuilding - Naval: commercial strategy
Shipbuilding - Naval: commercial strategy Description Consolidation and • Italy: continuing execution of Italian Navy’s fleet renewal program development of − 9 vessels in backlog (7 Multipurpose Offshore Patrol units, 1 Logistic Support Ship, 1 existing programs Multipurpose amphibious unit), with
Slide 11: 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 # of ships 5 5 5 5 • Deliveries heavily skewed Cruise: mix Sister ships 4 prototypes/ and quasi- towards sister ships with sister ships and 80%
Slide 12: Offshore: market overview
Offshore: market overview Description E&P Expenditure Offshore Oil&Gas: forecast USD BN 365 • Exploration & Production Expenditure is expected to reach a 320 345 310 275 285 minimum in 2018, then slowly return to growth 245 260 230 220 235 • Negative outlook for PSV and AHTS demand due to oversupply
Slide 13: Offshore: strategy and action plan
Offshore: strategy and action plan Description Revenue growth • Tender driven approach in the Offshore market, where first signs of recovery are becoming visible • Furthering diversification efforts in expedition cruises, fishery/aquaculture and select opportunities in the military segment, in count
Slide 14: Equipment, Systems and Services: strategy
Equipment, Systems and Services: strategy Description Continuous growth of • Development of large backlog already acquired traditional businesses • Strong focus on expanding non-captive markets (in both System & Components, and After Sales) • Enhancing After Sales services − to include full lifecycl
Slide 15: Short and medium term financial targets
Section 2 Short and medium term financial targets LCS 7 US Navy FREMM Iitalian Navy FREMM Iitalian Navy
Slide 16: Short and medium term financial targets
Short and medium term financial targets +18/20% +17/21% € bln +3/6% 5.0 Revenues 2017A 2018E 2020E 2022E ~7.5% ~8.0% 8.0-9.0% 6.8% EBITDA margin Consolidated – 2017A 2018E 2020E 2022E Fincantieri Group 3.0-4.0% Adjusted 2.0-3.0% 1.8% 1.8-2.0% Net income(1) margin 2017A 2018E 2020E 2022E € bln 0.4-0.
Slide 17: Short and medium term financial targets – key take away messages
Short and medium term financial targets – key take away messages • Revenues expected to increase between 3% and 6% driven by the progress of cruise construction volumes, also supported by the increasing workload of Romanian yards 2018 • EBITDA margin around 7.5% thanks to the increased contribution
Slide 18: Q&A
Q&A FINCANTIERI The sea ahead