Fincantieri S p A : 9M 2020 presentation

1H 2020 RESULTS

July 31, 2020

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," "plans," "estimates," "aims," "foresees," "anticipates," "targets," and similar expressions. The forward-looking statements contained in this Presentation, including assumptions, opinions and views of the Company or cited from third party sources, are solely opinions and forecasts reflecting current views with respect to future events and plans, estimates, projections and expectations which are uncertain and subject to risks. Market data used in this Presentation not attributed to a specific source are estimates of the Company and have not been independently verified. These statements are based on certain assumptions that, although reasonable at this time, may prove to be erroneous. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. If certain risks and uncertainties materialize, or if certain underlying assumptions prove incorrect, Fincantieri may not be able to achieve its financial targets and strategic objectives. A multitude of factors which are in some cases beyond the Company's control can cause actual events to differ significantly from any anticipated development. Forward-looking statements contained in this Presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. No one undertakes any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Market data used in this Presentation not attributed to a specific source are estimates of the Company and have not been independently verified. Forward-looking statements speak only as of the date of this Presentation and are subject to change without notice. No representations or warranties, express or implied, are given as to the achievement or reasonableness of, and no reliance should be placed on, any forward-looking statements, including (but not limited to) any projections, estimates, forecasts or targets contained herein.

Fincantieri does not undertake to provide any additional information or to remedy any omissions in or from this Presentation. Fincantieri does not intend, and does not assume any obligation, to update industry information or forward-looking statements set forth in this Presentation. This presentation does not constitute a recommendation regarding the securities of the Company.

Declaration of the Manager responsible for preparing financial reports

Pursuant to art. 154-BIS, par. 2, of the Unified Financial Act of February 24, 1998, the executive in charge of preparing the corporate accounting documents at Fincantieri, Felice Bonavolontà, declares that the accounting information contained herein correspond to document results, books and accounting records.

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1H 2020 Key Messages

No order cancellation and record-high total backlog up to almost €38 bln

COVID-19

update

Business

update

Financials

• No cancelled orders thanks to effective backlog preservation strategy
• Slowdown of the production schedule and postponement of deliveries has impacted revenues (-15.6% YoY)
• 3 cruise ships scheduled for delivery from Italian shipyards in 2H 2020
• Production activities gradually resumed in all the Italian shipyards starting from April 20th, 2020
• As of June 30th, 90% of production staff safely back at work
• 10 ships delivered from 7 shipyards, among which 3 cruise ships, 1 fishery and 1 naval vessel
• Ongoing diversification strategy:
• • in infrastructures, electronics, and cyber security, as well as complete accommodation in the cruise segment, contributing to revenue growth in the ESS (1H 2020 revenues +5.7%)
  • new orders acquired in the renewable energy sector (1 Service Operation Vessel), 2 fishing vessels, 1 order and 1 agreement for the Port of Rapallo and the «Renato Dall'Ara» Stadium respectively
• Total backlog(1) with 117 units at €37.9 bln: backlog at ~ €28 bln and soft backlog(2) €9.9 bln
• Revenues at €2,369 mln (down 15.6% vs 1H 2019(3)): €790 mln shortfall in revenues due to production downtime
• EBITDA at €119 mln (€227 mln in 1H 2019(3)) and EBITDA margin at 5.0% (8.1% in 1H 2019): shortfall in EBITDA contribution of €65 mln
• Adjusted net result €(29) mln and net result €(137) mln, with COVID-19 related extra-ordinary costs of €114 mln
• Net debt(4) at €980 mln mainly due to the postponed delivery of one cruise vessel to 2H

1. Sum of backlog and soft backlog
2. Soft backlog represents the value of existing contract options and letters of intent as well as contracts in advanced negotiation, none of which yet reflected in the order backlog

(3)	Restated following the disposal of small fishery and aquaculture support vessels business and the closure of the Aukra yard, as well as the riallocation of VARD Electro	3
	from the Offshore and Specialized Vessels segment to the Shipbuilding
(4)	Excluding Construction loans

Key Messages

Continuing focus on strategic developments

• FMM prime contractor within the FFG(X) program: awarded a nearly $800 mln contract for the design and

FFG(X)	construction of the first-in-class guided missile frigate for the US Navy. The contract also includes options for 9
program
additional units, thus bringing the contract cumulative value to $5.5 bn

Genoa	•	On April 28th the last steel span of the bridge was raised, completing the structure
	in one year from the steel-cutting ceremony held on March 11, 2019
bridge
•	Opening ceremony scheduled on August 3rd

	JV	• Naviris signed its first contract with OCCAR: an R&T program involving 5 different projects with the goal of
	Naviris	enhancing the performance of Fincantieri's and Naval Group's vessels

•	Obtained the B-rating within the CDP(1) Climate Change Programme for the fight
	against climate change. First in the Mechanical Components & Equipment sector within
Sustainability	the Vigeo Eiris ranking

1. • Update of the 2018-2022 Sustainability Plan
   • Extended the agreement with Eni within the circular economy and decarbonisation
2. Carbon Disclosure Project is a British organization whose goal is to improve the management of environmental risks. In 2019, Fincantieri obtained the B rating on a scale ranging from D (minimum) to A (maximum)

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