Slide 1: 2018 Full Year Results
2018 FULL YEAR RESULTS February 26, 2019
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: FY 2018 Key Messages: Solid financial and operating performance
FY 2018 Key Messages Solid financial and operating performance • Robust order intake at €8.6 bln with orders for 27 new vessels − 14 new cruise ships for 8 different shipowners Order intake − Acquisition of a new important client: TUI Cruises (RCL Group) • Record-high Total backlog(1) with 116 units
Slide 4: FY 2018 Key Messages: Ongoing strategic development
FY 2018 Key Messages Ongoing strategic development • Building on the support of the French and Italian Governments, Fincantieri and Naval Group laid the grounds for the establishment of a 50/50 joint venture, a crucial step towards the creation of a Defence industry groundbreaking industrial Allianc
Slide 5: VARD: New organizational structure and segment review
VARD New organizational structure and segment review • Following the delisting of VARD, in December 2018, Offshore & Specialized Vessels Shipbuilding the full organizational integration with the Parent Company was launched, both for expedition cruise shipbuilding projects and the related shipyards,
Slide 6: FY 2018 main orders
FY 2018 main orders Sector Vessel Client Number of ships Expected Delivery Viking Cruises 2 2022-2023 Silversea Cruises 1 2021 Norwegian Cruise Line 2 2026-2027 Cruise Ships Cunard Line 1 2022 Virgin Cruises 1 2023 Shipbuilding TUI Cruises 2 2024-2026 Ponant 2 2020 Expedition Cruise Vessels Hapag-Ll
Slide 7: FY 2018 main deliveries
FY 2018 main deliveries Sector Vessel Client Shipyard Carnival Cruise Line Cruise ship “Carnival Horizon” Monfalcone (Carnival Corporation) Riva Trigoso – Muggiano/ Oceanographic vessel “Kronprins Haakon” Institute of Marine Research Vard Langsten Cruise ship “Seabourn Ovation” Seabourn Cruise Line
Slide 8: FY 2018 main deliveries
FY 2018 main deliveries Carnival Horizon Seabourn Ovation MSC Seaview Viking Orion Shipbuilding HAL Nieuw Statendam Ponant Le Champlain Ponant Le Laperouse Kronprins Haakon FREMM Martinengo LCS 11 Sioux City LCS 13 Wichita Offshore & Specialized Vessels Module Carrier Vessel (x12) LPG Carrier Jorge
Slide 9: Order intake and backlog: Breakdown by segment
Order intake and backlog Breakdown by segment Order intake Total backlog(1) € mln € mln 1.7x 1.6x 5.2x 6.2x • Record-high total backlog at €33.8 8,300 bln, covering 6.2 years of work if 8,554 8,617 573 1,006 1,638 compared to 2018 revenues 471 4,100 987 913 1,186 595 • Total backlog up 29% vs FY 201
Slide 10: Backlog deployment: Breakdown by segment and end market
Backlog deployment Breakdown by segment and end market Shipbuilding Offshore & Specialized Vessels # ship deliveries(1) # ship deliveries(1) Cruise Naval(2) • 35 units delivered in FY 2018, 98 ships in backlog 2018 7 2018 6 2018 22 • Cruise: 41 vessels − Deliveries up to 2027 2019 8 2019 3 2019 19 3
Slide 11: Revenues
Revenues Revenues breakdown by segment(1) € mln 5,474 5,020 5,020 10.8% 651 • Record-high revenues at €5,474 10.4% 558 10.1% 558 mln (+9% vs FY 2017) 11.3% 681 12.3% 676 18 17.5% 943 − Shipbuilding revenues up 9.6% vs 22 22 FY 2017 1,434 1,212 − Offshore & Specialized Vessels 1,212 revenues in line
Slide 12: EBITDA
EBITDA EBITDA(1) and EBITDA margin € mln • Healthy operating performance: EBITDA at €414 mln (up 21% vs FY 6.8% 6.8% 7.6% 2017), EBITDA margin at 7.6% (vs 6.8% of FY 2017) 414 11.2% 73 • Strong performance in 341 341 Shipbuilding: positive performance 11.5% 64 11.5% 64 of some cruise projects and 4.
Slide 13: Net result
Net result Adjusted Net result(1) € mln 1.8% 2.0% 108 91 • Increased FX charges (partially non cash) compensated by lower costs 111 95 from affiliates • Extraordinary and non recurring (4) (3) items in line with FY 2017 − €39 mln for litigations (of which FY 2017 FY 2018 Attributable to owners of th
Slide 14: Capital expenditures
Capital expenditures Capex € mln 3.2% 2.9% 163 161 55 37 108 124 • Tangible capex mainly aimed at: − Upgrading of Italian yards FY 2017 FY 2018 − Adjusting Vard Tulcea production Tangible Intangible % of Revenues capacity Capex by segment − Improving safety and € mln environmental conditions in all
Slide 15: Net working capital
Net working capital(1) Breakdown by main components € mln FY 2017 FY 2018 Inventories and advances to suppliers 881 835 • Growth of production volumes in Work in progress net of 936 cruise and naval implies increase of advances from customers 648 Work in progress and Trade payables 909 749 Trade rec
Slide 16: Net financial position
Net financial position(1) Breakdown by main components € mln – Net cash / (Net debt) FY 2017 FY 2018 63 17 Non-current financial receivables 123 677 35 Current financial receivables 274 • Increase of net debt consistent with Cash & cash equivalents the cruise business dynamics showing higher product
Slide 17: Outlook
Outlook • 2019 results expected to be in line with 2018 and consistent with 2018-2022 Business Plan guidelines ‒ Further growth of revenues and EBITDA margin in line with 2018 ‒ Expected increase in net debt due to working capital financing needs Shipbuilding • Expected delivery of 11 units, of whic
Slide 18: Investor Relations contacts
Investor Relations contacts Investor Relations Team Tijana Obradovic – Head of Investor Relations +39 040 319 2409 tijana.obradovic@fincantieri.it Emanuela Cecilia Salvini +39 040 319 2614 emanuelacecilia.salvini@fincantieri.it Marco Pesaresi +39 040 319 2663 marco.pesaresi2@fincantieri.it Instituti
Slide 19: Q&A
Q&A FINCANTIERI The sea ahead 19
Slide 20: Appendix
Appendix FINCANTIER! =
Slide 21: Financial overview - Shipbuilding
Financial overview - Shipbuilding Revenues • Revenues: €4,678 mln (+9.6% vs FY 20171) € mln 18 22 − Substantial progress in the construction process of cruise 22 1,434 units in the last months of the year 1,212 1,212 − Strong growth of volumes in naval (+18.3%) driven by 4,678 two projects with the
Slide 22: Financial overview – Offshore & Specialized Vessels
Financial overview – Offshore & Specialized Vessels Revenues • Revenues: €681 mln, in line with FY 20171 € mln − Positive effects of diversification strategy: new orders for fisheries and ferries, important new order from Norwegian Coast Guard − Negative impact of the NOK/EUR exchange rate 943 676 6
Slide 23: Financial overview - Equipment, Systems and Services
Financial overview - Equipment, Systems and Services Revenues € mln 651 558 558 • Revenues: €651 mln, up 16.7% vs FY 2017 − Increased volumes in cabins and public areas for cruise ships FY 2017 FY 2017 FY2018 Reported Restated • EBITDA: €73 mln with margin at 11.2% EBITDA − Higher volumes and impact
Slide 24: Profit & Loss and Cash flow statement
Profit & Loss and Cash flow statement Profit & Loss statement (€ mln) FY 2017 FY 2018 Revenues 5,020 5,474 Materials, services and other costs (3,742) (4,089) Personnel costs (909) (946) Provisions(1) (28) (25) EBITDA 341 414 Depreciation, amortization and impairment (120) (137) EBIT 221 277 Finance
Slide 25: Balance sheet
Balance sheet Balance sheet (€ mln) FY 2017 FY 2018 Intangible assets 582 618 Property, plant and equipment 1,045 1,074 Investments 53 60 Other non-current assets and liabilities 122 8 Employee benefits (59) (57) Net fixed assets 1,743 1,703 Inventories and advances 835 881 Construction contracts an