Slide 1: 1H 2018 Results
1H 2018 RESULTS July 27, 2018 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: 1H 2018 Key Messages
1H 2018 Key Messages • 1H 2018 revenues up 10% vs 1H 2017, EBITDA at €183 mln (+25%), EBITDA margin at 7.3% (up 16% compared to 6.3% in 1H 2017); Adjusted profit of €39 mln (+39%) • Total backlog(1) at record €29.8 bln amounting to ~ 6 times 2017 revenues: − Backlog at €22 bln (99 ships) up from €20
Slide 4: 1H 2018 main orders
1H 2018 main orders Orders acquired in Q2 Vessel Client Delivery 2 Cruise ships Viking Ocean Cruises 2022-2023 Shipbuilding Silversea Cruises 2021 1 Cruise ship 2 Expedition cruise vessels Ponant 2020 1 Cable laying vessel Prysmian 2020 Offshore 3 Offshore Patrol Vessels Norwegian Defence 2022-2024
Slide 5: 1H 2018 main deliveries
1H 2018 main deliveries Deliveries in Q2 Vessel Client Delivery Cruise ship “Carnival Horizon” Carnival Cruise Line Monfalcone (Carnival Corporation) Oceanographic vessel Institute of Marine Riva Trigoso - “Kronprins Haakon” Research Muggiano Cruise ship “Seabourn Ovation” Seabourn Cruise Line Sestr
Slide 6: Order intake and backlog – by segment
Order intake and backlog – by segment Order intake Total backlog(1) € mln € mln 1.9x 0.9x 5.1x 5.2x 5.9x 7,800 4,100 5,100 1,186 1,289 1,288 1,418 1,990 1,403 4,369 323 379 Backlog 2,388 Backlog 21,987 Backlog 20,238 22,053 19,496 376 18,512 20,424 3,872 1,106 1,132 (205) (226) (779) (789) (788) 1H
Slide 7: Backlog deployment – by segment and end market
Backlog deployment – by segment and end market Shipbuilding Offshore(3) Comments # ship deliveries(1) # ship deliveries • 20 units delivered in 1H 2018, 13 units Cruise Naval(2) acquired in the period • Cruise: 25 vessels 2018 4 1 5 2018 2 4 6 2018 14 18 32 − Deliveries up to 2027, after confirmatio
Slide 8: Revenues – by segment and end market
Revenues – by segment and end market Breakdown by segment and end market(1) Comments € mln 2,527 • Shipbuilding − Growth of revenues in cruise, 11.6% 321 2,295 standing at 46.4% of Group’s total (4 9.3% 227 units delivered and 9 units under 20.3% 564 construction vs. 3 units delivered and 18.4% 448
Slide 9: EBITDA by segment
EBITDA(1) by segment EBITDA and EBITDA margin Comments € mln • EBITDA margin increase of 16% from 6.3% 7.3% 1H 2017 183 • Shipbuilding 10.7% − Further improvement due to the 34 146 construction of cruise ships at higher 1.2% 7 margins and to the positive 11.1% 25 contribution of Italian Navy's fleet
Slide 10: Net result
Net result Adjusted net result (1) Comments € mln • The result before extraordinary and non recurring items reflects 39 28 − Improvement of operating performance and margin 45 30 − Increased finance expenses at €52 mln (vs €39 mln in 1H 2017), due to (6) increased unrealized foreign exchange losses
Slide 11: Capital expenditures
Capital expenditures Capex Comments € mln • Tangible capex mainly aimed at 3.3% 1.7% supporting the development of production volumes: 76 − Upgrade of operating areas and 26 44 safety standards of the Italian yards, 6 in particular the Monfalcone, 50 38 Marghera, Sestri and Ancona yards 1H 2017 1H 2
Slide 12: Net working capital
Net working capital(1) Breakdown by main components Comments € mln FY 2017 1H(198) 2018 • Net working capital at €(198) mln, from €(120) mln in FY 2017 Inventories and advances to • Decrease of Work in progress net of suppliers advances from customers, due to the 835 deliveries occurred in the perio
Slide 13: Net financial position
Net financial position(1) Breakdown by main components Comments € mln – Net cash / (Net debt) FY 2017 1H 2018 • Net debt at the end of 1H 2018 at €264 mln (€314 mln in FY 2017) ‒ Most of the Group's debt is related to 130 the financing of current assets 30 associated with cruise ship Non-current fin
Slide 14: Outlook
Outlook • Full year results expected to be in line with 2018-2022 Business Plan targets Shipbuilding • Expected delivery of 5 units, of which 1 cruise ship and 4 naval vessels • Italian Navy’s fleet renewal program fully operational • Start of production activities related to the Qatari order Offsho
Slide 15: Investor Relations contacts
Investor Relations contacts Investor Relations Team Cristiano Pasanisi – VP Group Treasury, Corporate Finance & Investor Relations +39 040 319 2375 cristiano.pasanisi@fincantieri.it Matteo David Masi – Head of Investor Relations +39 040 319 2334 matteodavid.masi@fincantieri.it Alberta Michelazzi +39
Slide 16: Q&A
Q&A FINCANTIERI The sea ahead 16
Slide 17: Appendix
Appendix FINCANTIER! =
Slide 18: 1H 2018 results by segment
1H 2018 results by segment Shipbuilding Offshore Equipment, Systems and Services 18
Slide 19: Shipbuilding
Shipbuilding Revenues Comments € mln 10 • Revenues: €1,892 mln, up 7.7 % vs 1H 2017 4 − Growth of volumes in cruise reaching 46.4 % of 515 592 Other Shipbuilding total Group revenues (4 units delivered and 9 1,892 units under construction vs. 3 units delivered 1,757 Naval 1,290 and 11 units under co
Slide 20: Offshore
Offshore Revenues Comments € mln • Revenues: €564 mln, up 25.9% vs 1H 2017 − Despite negative effect of EUR/NOK exchange rate (€25 mln) − Ongoing implementation of diversification 564 strategy, which generated an increase in 448 production volumes especially in Romanian yards • EBITDA: €7 mln, with
Slide 21: Equipment, Systems and Services
Equipment, Systems and Services Revenues Comments € mln • Revenues: €321 mln, up 41 % vs 1H 2017 − Thanks to workload related to the Italian Navy fleet renewal program and the Qatari Ministry of 321 Defense order, besides the uptick in volumes of 227 cabins and public areas • EBITDA: €34 mln with ma
Slide 22: Profit & Loss and Cash flow statement
Profit & Loss and Cash flow statement Profit & Loss statement (€ mln) FY 2017 1H 2017 1H 2018 Revenues 5,020 2,295 2,527 Materials, services and other costs (3,742) (1,671) (1,855) Personnel costs (909) (462) (482) (1) Provisions (28) (16) (7) EBITDA 341 146 183 Depreciation, amortization and impair
Slide 23: Balance sheet
Balance sheet Balance sheet (€ mln) FY 2017 1H 2017 1H 2018 Intangible assets 582 583 625 Property, plant and equipment 1,045 1,049 1,031 Investments 53 55 51 Other non-current assets and liabilities 122 42 72 Employee benefits (59) (58) (58) Net fixed assets 1,743 1,671 1,721 Inventories and advanc