Fincantieri S.p.a. · MIL:FCT
Fincantieri — FY 2021 Earnings Presentation
30 slides from Fincantieri's earnings presentation, Mar 24, 2022
Slide 1: FY 2021 Results
FY 2021 R ESULTS 24 March 2022 www.fincantieri.com
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: Agenda
Agenda S T R AT E G I C O V E R V I E W E X E C U T I V E S U M M A R Y & B U S I N E S S U P D AT E F I N A N C I A L R E S U LT S OUTLOOK CONCLUDING REMARKS APPENDIX
Slide 4: Strategic overview
Strategic overview A technological platform with a global footprint, ready to seize further opportunities across businesses • Solid financial results with revenues up 28.3% YoY, EBITDA at €495 mln up 57% YoY (EBITDA margin at 7.4%) • Back to profitability with net result adjusted at €92 mln (€-42 ml
Slide 5: Executive Summary & Business Update
E XECUTIVE S UMMARY & B USINESS U PDATE
Slide 6: Executive summary
Executive summary Revenues up by 28.3% and EBITDA +57.4%, total backlog at €35.5 bn. 2021 guidance on marginality exceeded Revenues (€ mln) EBITDA (€ mln) Revenues and EBITDA by quarter Net debt (€ mln) 5.5% 6.1% 7.4% 7.0% 7.4% 7.4% 7.7% 6,662 5,849 2,126 5,191 1,426 1,600 1,510 1,062 859 736 495 16
Slide 7: Business update: quarterly key events
Business update: quarterly key events Consistent business operating performance throughout the year Q1 Q2 Q3 Q4 ▪ MoU between Naviris and Navantia to ▪ Prime contractor for the supply of 6 ▪ 4 cruise ships delivered, 3 in a ▪ First corvette of the Program for the Shipbuilding develop the European Pa
Slide 8: ESG Update
ESG Update Fully committed to guarantee the highest environmental, social and governance standards Renewable electricity Carbon intensity R&D costs Variable remuneration % total electricity s c o p e 1 - 2 T C O 2e / € m l n r e v e n u e s € mln % sustainability - linked MBO recipients 84 84 155 14
Slide 9: ESG ratings and awards
ESG ratings and awards Tireless effort to become a model of excellence acknowledged at the international level Ratings Awards CDP In 2021 Fincantieri was awarded with the score A- , from a scale from A, the UNIVERSUM maximum, to D for its commitment and transparency in fighting climate Fincantieri r
Slide 10: Main deliveries & New orders
Main deliveries & New orders New orders across all segments amount to €3.3 bn Naval - USA Cruise - Norway 19 deliveries ORDER INTAKE at €3.3 bn LCS21 USS Minneapolis St. Paul (US Navy) - Q2 Hanseatic Spirit (Hapag-Lloyd) - Q2 # 15 ships ordered Exp. delivery ◼ Cruise #8 LCS23 USS Cooperstown (US Nav
Slide 11: Backlog deployment
Backlog deployment Well-balanced visibility both in Cruise and Naval, 9 new orders in Offshore and Specialized Vessels Shipbuilding Offshore & Specialized Vessels1 # ship deliveries # ship deliveries CRUISE 2021 8 8 NAVAL 2021 7 OSV 2021 4 4 29 VESSELS 2022 7 36 VESSELS 26 VESSELS2 2022 8 2022 8 IN
Slide 12: Financial Results
FINANCIAL RESULTS FINCANTIERI The sea ahead
Slide 13: Order intake and backlog
Order intake and backlog Positive order intake despite cruise contraction with a solid contribution of ESS. Sustained backlog and a hefty soft backlog Order intake breakdown by segment Total backlog breakdown by segment1 € mln € mln ▪ Sizeable order intake at €3.3 bn, thanks to the 1.5x 0.9x 0.5x 5.
Slide 14: Revenues
Revenues Revenue up 28.3%, with positive contribution across all segments Revenues breakdown by segment1 € mln +13.9% Revenues excluding pass-through activities are up 28.3% YoY thanks to record-high production +28.3% 6,662 volumes in the FY 2021 (16.4 mln production 5,849 1,404 hours) 5,191 1,106 4
Slide 15: EBITDA
EBITDA Record-high EBITDA with a remarkable increase in volumes and margins EBITDA breakdown by segment1 € mln EBITDA margin at 7.4% mainly thanks to the 5.5% 6.1% 7.4% positive contribution from Shipbuilding, despite the impact from increased commodities’ prices +54.9% ▪ Shipbuilding EBITDA is up €
Slide 16: EBITDA growth
EBITDA growth Better operating margin thanks to higher production volumes and improved margins EBITDA breakdown by segment ▪ Shipbuilding: EBITDA improvement driven by higher production volumes and improved operating margin ▪ Offshore and Specialized Vessels: increased EBITDA thanks to higher operat
Slide 17: Net result
Net result Back to profitability at €22 mln, thanks to the positive business operating performance, notwithstanding extraordinary items FY 2021 € mln 1.4% Net result for 2021 at €22 mln, thanks to the revamp of productivity and improved margins, notwithstanding: ▪ €55 mln asbestos-related litigation
Slide 18: Capex
Capex Significant investments creating further efficiencies in engineering and production processes Capex by segment € mln ▪ Capex up 10% vs FY 2020 to support shipyards upgrade 4.8% 6.0% 5.4% and further efficiencies to address new production scenarios 358 ▪ Investments breakdown as follows: 24 309
Slide 19: Net working capital and net financial position
Net working capital and net financial position Improved quality of NFP, better than guidance. Lower reliance on construction loans Net Working Capital breakdown Net Financial Position breakdown1 € mln € mln ▪ Net financial position up €203 mln Y/Y 881 thanks to an improved net working capital 828 88
Slide 20: Outlook
OUTLOOK FINCANTIERI The sea ahead
Slide 21: Focus on core business
Focus on core business Cruise full recovery expected in 2023, Naval benefiting from higher defence budget ▪ The big 3 cruise groups concluded 2021 with 65-80% of their capacity back in operation, with nearly 100% of CLIA oceangoing member lines are projected to be in operation by summer season 2022,
Slide 22: 2022 Company outlook
2022 Company outlook MACRO ASSUMPTIONS • Raising uncertainties due to geopolitical and macroeconomic tensions, whose impacts still hard to estimate • Gradual ease of Covid 19 restrictions EXPECTED FINANCIAL PERFORMANCE FOR 2022 Assuming no further relevant deterioration in the geopolitical and globa
Slide 23: Investor Relations contacts
Investor Relations contacts I N V E S TO R R E L AT I O N S T E A M Paola Dimario +39 040 319 2279 paola.dimario@fincantieri.it Caterina Venier-Romano +39 040 319 2229 caterina.venierromano@fincantieri.it Martina Saiu +39 040 319 2672 martina.saiu@fincantieri.it INSTITUTIONAL INVESTORS investor.rela
Slide 24: Q&A
Q&A FINCANTIERI The sea ahead
Slide 25: Appendix
APPENDIX FINCANTIERI The sea ahead
Slide 26: Financial overview – Shipbuilding
Financial overview – Shipbuilding Orders, backlog and deliveries Revenues EBITDA Capex € mln € mln € mln 7.4% 6.1% 8.3% ▪ Orders: €1,816 mln (€3,703 mln in FY 5,088 5,654 2020) 4,448 1,728 1,503 - Second Constellation-class frigate 1,250 to the US Navy 467 375 298 3,585 3,926 273 222 250 3,198 ▪ Bac
Slide 27: Financial overview – Offshore & Specialized Vessels
Financial overview – Offshore & Specialized Vessels Orders, backlog and deliveries Revenues EBITDA Capex € mln € mln € mln -32.7% -0.9% 2.1% ▪ Orders: €508 mln (€461 mln in FY 2020) -3 10 ▪ Backlog: €972 mln (€849 mln in FY 456 369 -99 2020) 303 6 4 3 ▪ Deliveries: - 2 expedition cruise vessel FY 20
Slide 28: Financial overview – Equipment, Systems & Services
Financial overview – Equipment, Systems & Services Orders, backlog and deliveries Revenues EBITDA Capex € mln € mln € mln 7.4% 7.8% 4.4% ▪ Orders: €1,418 mln including new MSC cruise terminal at PortMiami (vs €689 mln in FY 2020) 82 86 32 32 ▪ Backlog: €3,627 mln vs € 1,875 mln in 1,106 1,100 1,404
Slide 29: Glossary
Glossary Book-to-bill ratio Order intake/revenues Construction loans Committed working capital financing facilities, treated as part of Net working capital, not in Net debt, as they are not general purpose loans and can be a source of financing only in connection with ship contracts EBITDA Earnings
Slide 30: Glossary
Glossary Net working capital Capital employed in ordinary operations which includes Inventories and advances, risks and charges, and Other current assets and liabilities (including Income tax assets, Income tax liabilities, Deferred tax assets and Deferred tax liabilities, as well as the fair value