Slide 1: Update post 9M 2018 Results
FINCANTIERI Update post 9M 2018 Results November, 2018
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 Introduction Section 2 9M 2018 results and outlook Section 3 Appendix - Historical financial performance Carnival Vista Carnival Cruise Lines “ECO Notation” by Lloyd‘s Register for exceeding environmental standards
Slide 4: Introduction
Section 1 Introduction FREMM “Alpino” Italian Navy Best in class in terms of endurance
Slide 5: Fincantieri at a glance
Fincantieri at a glance #1 Western designer & shipbuilder (1) with 230 years of history & >7,000 ships built Norway • 5 shipyards 20 shipyards € 5,020 mln 2017 revenues 4 continents Romania China • 2 shipyards • 1 Joint Venture ~ € 32.5 bln total backlog(2,3) ~ 19,500 employees • € 26 bln backlog ~
Slide 6: Business units, products and positioning
Business units, products and positioning End markets Main products Positioning Revenues 2017(4) Backlog(5) Cruise • All cruise ships • #1 worldwide (from large contemporary ships to (~45% market share(1)) small luxury and expedition ships) € 2,649 mln (49.2% on total) Naval • All surface vessels (al
Slide 7: Track record, clients and technological leadership
Track record, clients and technological leadership 1 Track record 2 Clients 3 Technological leadership (3) Cruise Ship deliveries • Carnival Vista: “ECO Notation” by Lloyd‘s • Twofold Register for exceeding environmental standards • 1990–2001 23 • Royal Princess: 1st cruise ship fully compliant incr
Slide 8: 9M 2018 results
Section 2 9M 2018 results Skandi Africa DOF Ship of the Year 2015
Slide 9: 9M 2018 Key Messages
9M 2018 Key Messages • 9M 2018 results in line with Business Plan 2018-2022 targets: revenues up 8.5% vs 9M 2017 and EBITDA margin at 7.3% vs 6.5% in 9M 2017 (+11%) • Total backlog(1) at € 32.5 bln, almost 6.5 times 2017 revenues: − Backlog at € 26 bln (104 ships) up from € 20.3 bln in 9M 2017 − Sof
Slide 10: 9M 2018 main orders (1/2)
9M 2018 main orders (1/2) Orders acquired in Q3 Vessel Client Delivery 2 Cruise ships Viking Cruises 2022-2023 1 Cruise ship Silversea Cruises 2021 2 Cruise ships Norwegian Cruise Line 2026-2027 Shipbuilding 2 LNG Cruise ships TUI Cruises 2024-2026 1 Cruise ship Cunard Line 2022 1 Littoral Combat Sh
Slide 11: 9M 2018 main orders (2/2)
9M 2018 main orders (2/2) Orders acquired in Q3 2 Expedition cruise vessels Ponant 2020 1 Cable laying vessel Prysmian 2020 3 Offshore Patrol Vessels Norwegian Defence 2022-2024 Offshore Materiel Agency 1 Expedition cruise vessel Hapag-Lloyd Cruises 2021 2 Expedition cruise vessels Viking Cruises 20
Slide 12: 9M 2018 main deliveries
9M 2018 main deliveries Deliveries in Q3 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 13: Overview of financial performance indicators
Overview of financial performance indicators(1) € mln FY 2015 FY 2016 FY 2017 9M 2017 9M 2018 Order intake 10,087 6,505 8,554 5,485 7,601 Total backlog 18,721 24,031 26,153 25,299 32,466 Of which backlog 15,721 18,231 22,053 20,299 25,966 Of which soft backlog 3,000 5,800 4,100 5,000 6,500 Revenues
Slide 14: Order intake and backlog – by segment
Order intake and backlog – by segment Order intake Total backlog(1) € mln € mln 1.5x 2.0x 5.7x 5.2x 6.5x 6,500 7,601 586 1,367 4,100 2,493 5,000 1,826 1,186 5,485 1,227 1,418 465 1,300 486 Backlog Backlog 25,966 Backlog 22,053 22,975 5,603 20,299 20,238 18,572 4,848 (314) (414) (800) (789) (869) 9M
Slide 15: Backlog deployment – by segment and end market
Backlog deployment – by segment and end market Shipbuilding Offshore Comments # ship deliveries(1) # ship deliveries • 27 units delivered in 9M 2018, 104 ships Cruise Naval(2) in backlog at September 30, 2018 • Cruise: 30 vessels 2018 4 1 5 2018 4 2 6 2018 19 13 32 − Deliveries up to 2027, thanks to
Slide 16: Revenues and EBITDA – by segment
Revenues and EBITDA(1) – by segment Revenues breakdown by segment(2) EBITDA and EBITDA margin € mln € mln 6.5% 7.3% 3,878 3,575 10.8% 458 281 9.6% 367 11.4% 52 19.3% 819 233 17.5% 666 11.0% 40 4.9% 33 2,959 270 72.9% 2,779 69.9% 9.1% 6.6% 184 (237) (24) -1.9% (16) (358) (25) 9M 2017 9M 2018 9M 2017
Slide 17: Net working capital and net debt
Net working capital and net debt(1) Breakdown by main components Comments € mln FY 2017 9M 2018 • Net working capital and net debt dynamics related to the production volumes in cruise and the receipt of Inventories and advances to the final installments for the cruise suppliers 835 842 ships deliver
Slide 18: Outlook
Outlook • 2018 results expected to be in line with 2018-2022 Business Plan targets Shipbuilding • Expected delivery of 3 units, of which 1 cruise ship and 2 naval vessels • Italian Navy’s fleet renewal program fully operational • First phase of production activities related to the Qatari order Offsh
Slide 19: 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 2017A 2018E 2020E 2022E 3.0-4.0% Adjusted 2.0-3.0% 1.8% 1.8-2.0% Net income(1) margin 2017A 2018E 2020E 2022E € bln 0.4-0.6 0.3 0.2-0.4 Net Debt 0-0.1 2017
Slide 20: 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 % Cruise: mix • Deliveries heavily skewed Sister ships prototypes/ and quasi- towards sister ships with sister ships and 80% 80% 80% sister shi
Slide 21: Appendix - Historical financial performance
Section 3 Appendix Historical financial performance
Slide 22: Financial performance
Financial performance Revenues(1) EBITDA / margins(2) € mln € mln 5,020 -0.6% 6.0% 6.8% 558 4,429 341 4,183 495 943 498 64 11.5% 22 267 960 42 4.4% 1,199 12 1,212 62 12.5% 23 1,156 51 5.3% 1,056 3,883 3,246 269 6.9% 2,652 2,649 2,078 185 5.7% 1,573 42 8.4% (166) (272) (364) (31) (34) -1.3% (34) (3)
Slide 23: Financial performance
Financial performance EBIT / margins Net result before extraordinary and non recurring items(1) € mln € mln 91 60 66 95 -3.3% 3.5% 4.4% (6) (4) (141) (111) (252) FY 2015 FY 2016 FY 2017 221 157 of which Group of which minority interests Net result € mln 14 53 (137) 25 57 (11) (4) (175) FY 2015 FY 20
Slide 24: Capex
Capex Capex evolution Capex by segment € mln € mln 3.8% 5.1% 3.2% 224 224 20 8 80 31 161 163 161 163 13 27 39 55 10 9 31 37 165 144 122 108 107 90 (1) (1) FY 2015 FY 2016 FY 2017 FY 2015 FY 2016 FY 2017 Property, plant and equipment Intangible assets % of Revenues Shipbuilding Offshore Equipment, Sy
Slide 25: Net working capital
Net working capital(1) Breakdown by main components € mln FY 2015 FY 2016 FY 2017 405 Inventories and advances to suppliers 590 835 Work in progress net of 1,876 604 advances from customers 648 Trade receivables 1,123 909 560 Other current assets and liabilities 59 1 (196) (678) (624) Construction l
Slide 26: Net financial position
Net financial position(1) Breakdown by main components € mln – Net cash / (Net debt) FY 2015 FY 2016 FY 2017 Non-current financial receivables 113 123 Current financial receivables 53 115 35 33 260 220 274 Cash & cash equivalents (263) Short term financial liabilities (453) (482) Long term financial
Slide 27: Working capital dynamics
Working capital dynamics Indicative payment terms Main phases of the shipbuilding process(1) Impact on net working capital Signing A First Cut B Launch C Delivery D Design / Project Hull Assembly and Outfitting and Development Pre-Outfitting Sea Trials • Increases during construction Cruise Duration
Slide 28: Profit & Loss and Cash flow statement
Profit & Loss and Cash flow statement Profit & Loss statement (€ mln) FY 2015 FY 2016 FY 2017 Revenues 4,183 4,429 5,020 Materials, services and other costs (3,337) (3,291) (3,742) Personnel costs (865) (846) (909) (1) Provisions (7) (25) (28) EBITDA (26) 267 341 Depreciation, amortization and impai
Slide 29: Net result before extraordinary and non recurring items
Net result before extraordinary and non recurring items(1) Net result before extraordinary and non recurring items (€ mln) FY 2015 FY 2016 FY 2017 A Net result before extraordinary and non recurring items(1) (252) 60 91 Attributable to owners of the parent (141) 66 95 B Extraordinary and non recurri
Slide 30: Balance sheet
Balance sheet Balance sheet (€ mln) FY 2015 FY 2016 FY 2017 Intangible assets 518 595 582 Property, plant and equipment 974 1,064 1,045 Investments 62 58 53 Other non-current assets and liabilities (44) (69) 122 Employee benefits (57) (58) (59) Net fixed assets 1,453 1,590 1,743 Inventories and adva