Slide 1: 2015 First Quarter Results
2015 FIRST QUARTER RESULTS 13 May 2015
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: Q1 2015 Key Highlights
Q1 2015 Key Highlights Key Business Highlights • Intense commercial negotiations leading to increase of soft backlog(1) to € 9.2 BN at the end of Q1 2015 which shall result in greater revenue visibility through a further backlog increase • In Shipbuilding, with regards to Cruise, signing of a strate
Slide 4: Q1 2015 main deliveries
Q1 2015 main deliveries Vessel Client Shipyard Cruise ship “Britannia” P&O Cruises Monfalcone Shipbuilding Cruise ship “Viking Star” Viking Ocean Cruises Marghera OSCV “Far Sleipner” Farstad Shipping Vard Langsten Research and surveillance Norwegian Navy Vard Langsten vessel “Marjata” Offshore PSV “
Slide 5: Summary of financial performance indicators
Summary of financial performance indicators(1) Comments € MM FY 2014 Q1 2014 Q1 2015 • Order intake at € 85 MM Order intake 5,639 1,707 85 • Backlog at € 9.0 BN Backlog 9,814 8,809 8,992 • Revenues at € 1.1 BN Revenues 4,399 923 1,110 • EBITDA at € 59 MM (5.3% on revenues) EBITDA 297 66 59 • EBIT at
Slide 6: Order intake and backlog – by segment
Order intake and backlog – by segment Order intake Backlog Comments € MM € MM • Weak order intake at € 85 MM (€ 1.7 BN in Q1 2014) 1,707 Soft • Backlog increased to € 9.0 BN from € 8.8 Soft backlog 79 BN in Q1 2014 (€ 9.8 BN in FY 2014) Soft backlog € 9.2 BN backlog € 5.0 BN ‒ Shipbuilding at € 7.0
Slide 7: Backlog deployment – by segment and end market
Backlog deployment – by segment and end market Shipbuilding Offshore Comments # ship deliveries(1) # ship deliveries • Cruise Cruise Naval(2) − Postponement of delivery dates from 2016 to 1H 2017 for two cruise ships Q1 2015 agreed with clients in order to reach a Q1 2015 2 Q1 2015 5 better workload
Slide 8: Revenues – by segment and end market
Revenues – by segment and end market Breakdown by segment and end market(1) Comments € MM • Shipbuilding revenues at € 754 MM, 1,110 increased by 32% from Q1 2014 3.7% 41 − In Q1 2015 higher volumes in cruise 923 330 weighting 57% on segment’s revenues 4.0% 37 29.3% vs. 48% in Q1 2014 322 41 − In na
Slide 9: EBITDA by segment
EBITDA(1) by segment EBITDA and EBITDA margin Comments € MM • Group EBITDA at € 59 MM, decreased by 7.1% 5.3% 11% from Q1 2014, with margin at 5.3% affected by lower marginality in Offshore 66 • Shipbuilding EBITDA at € 46 MM, with 59 9.5% 4 margin at 6.1%, slight reduction mainly 10.3% 4 driven by
Slide 10: Net income/(loss) before extraordinary and non recurring items
Net income/(loss) before extraordinary and non recurring items(1) Net income/(loss) before extraordinary and non recurring items(1) Comments € MM • Net income/(loss) before extraordinary and non recurring items at € (21) MM, vs. 16 € 16 MM in Q1 2014 mainly due to − Lower EBIT (€ -9 MM) − Higher fin
Slide 11: Capital expenditures
Capital expenditures Capex Comments € MM 3.0% 2.6% • Capex in Q1 2015 equal to € 29 MM, of which 27 29 ‒ Tangible for € 23 MM related to the 4 6 completition of the Vard Promar shipyard in Brazil and technological 23 23 upgrading of Italian facilities to improve production efficiency as well as safe
Slide 12: Net working capital
Net working capital(1) Breakdown by main components Comments € MM • Net working capital at the end of Q1 FY 2014 Q1 2015 2015 decreased to € 10 MM, compared Inventories net of advances 388 439 to € 69 MM for FY 2014 with to suppliers ‒ Increase in inventories and advances (€ +51 MM) and in work in p
Slide 13: Net financial position
Net financial position(1) Breakdown by main components Comments € MM – Net cash / (Net debt) • Net financial position at the end of Q1 FY 2014 Q1 2015 2015 at € 81 MM of net cash, mainly due 92 to the increase in cash & cash Non-current financial receivables 90 62 equivalents (€ +91 MM) Current fina
Slide 14: Key financial ratios
Key financial ratios Profitability ratios Debt ratios Comments ROI(1) (EBIT / Net invested capital) Net debt / EBITDA • ROI at 12.1% for Q1 2015 reflects the € MM EBIT decrease compared to Q1 2014 417 (81) • ROE at 1.3% includes effects of the increase in equity and the reduction of 13.1% 1.4x profi
Slide 15: Outlook
Outlook • Sustained order intake expected for the remaining part of 2015, in particular related to the Shipbuilding segment given (i) in Naval the confirmation of the Italian Navy’s fleet renewal program and the continuation of FREMM and LCS programs, as well as (ii) in Cruise the expected conversio
Slide 16: Investor Relations contacts
Investor Relations contacts Investor Relations Team Luca Passa - VP Investor Relations +39 040 319 2369 luca.passa@fincantieri.it Tijana Obradovic +39 040 319 2409 tijana.obradovic@fincantieri.it Silvia Ponso +39 040 319 2371 silvia.ponso@fincantieri.it Institutional Investors investor.relations@fin
Slide 17: Q&A
Q&A FINCANTIERI 17
Slide 18: Appendix
Appendix FINCANTIERI 18
Slide 19: Q1 2015 results by segment
Q1 2015 results by segment Shipbuilding Offshore Equipment, Systems and Services 19
Slide 20: Shipbuilding
Shipbuilding Highlights Comments € MM Q1 2014 Q1 2015 • Orders: weak order intake at € 45 MM, Order intake 1,004 45 mainly related to ship repairs Backlog 5,935 6,982 ‒ Agreement with Carnival for 5 next- Revenues 571 754 generation cruise ships, included in soft backlog EBITDA 36 46 • Revenues: at
Slide 21: Offshore
Offshore Highlights Comments € MM Q1 2014 Q1 2015 • Orders: weak order intake at € 30 MM, Order intake 662 30 due to a persistently challenging market Backlog 2,616 1,790 environment Revenues 322 330 • Revenues: at € 330 MM up 2% vs. Q1 EBITDA 32 16 2014 despite the negative effect of NOK/EUR exchan
Slide 22: Equipment, Systems and Services
Equipment, Systems and Services Highlights Comments € MM Q1 2014 Q1 2015 • Orders: order intake at € 25 MM taking Order intake 79 25 backlog at € 284 MM Backlog 315 284 • Revenues: up to € 41 MM, mainly due to Revenues 37 41 the increase of volumes in after sale EBITDA 4 4 services for naval vessels
Slide 23: Profit & Loss and Cash flow statement
Profit & Loss and Cash flow statement Profit & Loss statement (€ MM) Q1 2014 Q1 2015 Revenues 923 1,110 Materials, services and other costs (656) (818) Personnel costs (197) (237) Provisions and impairment losses (4) 4 EBITDA 66 59 Depreciation and amortization (24) (26) EBIT 42 33 Finance income /
Slide 24: Balance sheet
Balance sheet Balance sheet (€ MM) FY 2014 Q1 2015 Intangible assets 508 533 Property, plant and equipment 959 970 Equity investments 60 63 Other non current assets and liabilities (48) (42) Employee indemnity benefit (62) (61) Net fixed capital 1,417 1,463 Inventories 388 439 Construction contracts