Fincantieri S p A : Half-Year Financial Report at 30 June 2024

2024

Half-Year Financial Report as at 30 June 2024

2024

2024

Half-Year Financial Report as at 30 June 2024

2024

Index

Parent Company Directors and Officers	4
The Fincantieri Group	8
Vision	10
Purpose on Board	10
Mission on Board	11
Who we are	11
Group Overview	15
Report on operation as at 30 June 2024	18
Overview	20
Group Performance	30
Operational review by segment	42
Risk Management	50
Market capitalization	51
Reconciliation of the reclassified financial statements used in the report	60
on operations with the mandatory ifrs statements
Condensed Consolidated Interim Financial Statements at 30 June 2024	62
Consolidated statement of financial position	64
Consolidated statement of comprehensive income	65
Consolidated statement of changes in equity	66
Consolidated statement of cash flows	67
Notes to the Condensed Consolidated Interim Financial Statements	68
Note 1 - Form, contents and other general information	70
Note 2 - Scope and basis of consolidation	74
Note 3 - Accounting standards	76
Note 4 - Critical accounting estimates and assumptions	77
Note 5 - Intangible assets	78
Note 6 - Rights of use	80
Note 7 - Property, plant and equipment	81
Note 8 - Investments accounted for using the equity method
and other investments	82
Note 9 - Non-current financial assets	83
Note 10 - Other non-current assets	84
Note 11 - Deferred tax assets and liabilities	85

Note 12 - Inventories and advances	86
Note 13 - Contract assets and liabilities	87
Note 14 - Trade receivables and other current assets	88
Note 15 - Income tax assets	90
Note 16 - Current financial assets	90
Note 17 - Cash and cash equivalents	91
Note 18 - Equity	92
Note 19 - Provisions for risks and charges	96
Note 20 - Employee benefits	97
Note 21 - Non-current financial liabilities	98
Note 22 - Other non-current liabilities	99
Note 23 - Trade payables and other current liabilities	100
Note 24 - Current financial liabilities	101
Note 25 - Revenue and income	102
Note 26 - Operating costs	103
Note 27 - Financial income and expenses	105
Note 28 - Income and expense from investments	106
Note 29 - Income taxes	106
Note 30 - Other information	107
Note 31 - Cash flows from operating activities	120
Note 32 - Segment information	121
Note 33 - Assets held for sale	125
Note 34 - Acquisitions	126
Note 35 - Events after 30 June 2024	128
Companies included in the scope of consolidation	130

Management representation on the Consolidated Financial Statements	137
Report by the independent auditors	141

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		Parent Company Directors and Officers	4

Parent Company Directors and Officers

Board of Directors	Three-year period 2022-2024
Chairman	Claudio Graziano*
Chief Executive Officer and General Manager	Pierroberto Folgiero
Directors	Paolo Amato
	Barbara Debra Contini
	Alberto Dell'Acqua
	Massimo Di Carlo
	Paola Muratorio
	Cristina Scocchia
	Valter Trevisani
	Alice Vatta
Secretary	Alessandra Battaglia
Board of Statutory Auditors	Three-year period 2023-2025
Chairman	Gabriella Chersicla
Standing Auditor	Elena Cussigh
	Antonello Lillo
Alternate Auditor	Ottavio De Marco
	Arianna Pennacchio
	Marco Seracini
Manager responsible for preparing financial reports
Felice Bonavolontà
Supervisory Body	Ex D-Lgs231/01 Three-year period 2024-2026
Chairman	Attilio Befera (external member)
Member	Davide Carlino (internal member)
	Iole Anna Savini (external member)
Independent auditors	Nine-year period 2020-2028
Deloitte & Touche S.p.A.

*General Claudio Graziano passed away prematurely on 17 June 2024. On that date, the Board of Directors resolved to confer on Mr Pierroberto Folgiero, Chief Executive Officer and General Manager, ad interim, the powers conferred on the Chairman with regard to the supervision and coordination of the internal control system and the development and governance of the corporate security system until the Chairman is replaced.

For detailed information on the composition and functions of the Board Committees (the Control and Risk Committee, which is also responsible for the functions of the committee responsible for related party transactions except for resolutions on remuneration, the Remuneration Committee, which is assigned the functions of the committee responsible for transactions with related parties in the case of resolutions on remuneration associated with related party transactions, the Nomination Committee and the Sustainability Committee) reference should be made to the Report on corporate governance and ownership structure available on the Company website in the "Ethics and Governance - Corporate Governance System - Corporate Governance Reports".

DISCLAIMER

Forecast data and information must be regarded as forward-looking statements and therefore, not being based on simple historical facts, contain, by their nature, an element of risk and uncertainty because they also depend on the occurrence of future events and developments outside the Company's control. Actual results could therefore be materially different from those expressed in forward-looking statements. Forward-looking statements refer to the information available at the date of their publication; Fincan- tieri S.p.A. undertakes no obligation to revise, update or correct its forward-looking statements after such date, other than in the circumstances strictly required by applicable regulations. The forward-looking statements provided do not constitute and shall not be considered by users of the financial statements as advice for legal, accounting, tax or investment purposes nor is it the intention for such statements to create any type of reliance and/or induce such users to invest in the Company.

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The Fincantieri Group	Report on operations at 30 June 2024	Condensed Consolidated Interim Financial Statements at 30 June 2024	Notes to the Condensed Consolidated Interim Financial Statements

The Fincantieri Group	8
Vision	10
Purpose on Board	10
Mission on Board	11
Who we are	11
Group Overview	15

The Fincantieri Group

Report on operations at 30 June 2024

Condensed Consolidated Interim Financial Statements at 30 June 2024	Notes to the Condensed Consolidated Interim Financial Statements

Vision

Purpose on Board

Values

Creating a sustainable, high-tech maritime fleet of ships, where new technologies and innovation are integrated seamlessly in order to reduce environmental impact and improve naval system efficiency.

We move society forward by crafting, shaping and leading the Green and Digital future of the international shipbuilding industry.

Future on Board: is the signature of the Fincantieri brand. We bring on board a future based on our proven expertise and credibility as a digital design authority and integrator of complex solutions. A future in which the power of our workforce is integrated with technology, big data and artificial intelligence and in which ships, powered by non-polluting fuels and next-generation engines, will have zero impact on the planet.

Mission on Board

Who we are

Global leadership in the development and lifecycle management of digital and green ships.

Our every action, project, initiative or decision is based on strict observance of the law, labour protection and protection of the environment, safeguarding the interests of our shareholders, employees, clients, trade and financial partners, local communities and groups, creating value for every stakeholder.

Fincantieri is one of the world's leading shipbuilding groups, the only one active in all areas of high technology shipbuilding. It is a leader in the design and construction of cruise ships, and a reference operator for defence ships. It is also a leader in the offshore segment, in particular in the marine energy sector (e.g. wind, oil&gas), as well as in the production of mechatronic and electronic ship systems, ship accommodation solutions and the offer of after-sales services, such as logistical support and assistance to fleets in service.

In recent years, the push towards the green transition has continued, through the creation of products characterised by the increasing application of new propulsion technologies and new fuels on board ships, a growing digi- talisation and focus on cyber security, which has enabled the Group to become one of the world's leading players in the design and construction of innovative vessels. This achievement testifies its commitment and ability to be a player in the ecological transition, with a clear sustainability strategy setting out a detailed roadmap to respond to increasingly stringent regulations. The Group also operates in engineering services, critical infrastructure monitoring systems, advanced energy management systems for land-based applications, in facility management and as a technological integrator in the underwater segment.

The Group stands out in terms of its industrial expertise and capacity, developed over the years, to manage highly complex projects, enabling it to offer one of the most advanced integrated platforms in the world.

With over 230 years of history and more than 7,000 ships built, Fincantieri maintains its know-how and management centres in Italy, where has more 11,000 employees. The production network stretches across 18 shipyards on three continents and employs more than 22,000 direct workers.

People

Everything we do focuses on enabling the growth, enhancement and training of people,

based on the daily attention that we pay to the quality of our work and our relations with others.

Safety

We ensure high levels of health and safety at work

to protect workers' well-being.

Integrity

We take responsibility for our actions and we put great care into our work, adhering to strict principles of ethics, loyalty and professional fairness.

Customer focus

We meet customer requirements and we rigorously

honor our commitments.

Innovation

We aim at continuously improving our products

and working methods through technological innovation.

Shareholders

28,32%

General market

0,36%

Fincantieri S.p.A. (treasury shares)

71,32%

CDP Equity S.p.A.

As at 30 June 2024, 71.32% of Fincantieri S.p.A.'s Share Capital of euro 862,980,725.70 is held, through the subsidiary CDP Equity S.p.A., by Cassa Depositi e Prestiti S.p.A., a company controlled by the Ministry of Economy and Finance. The remaining part of the Share Capital is distributed between a number of private investors and institutional investors (none of whom hold significant interests of 3% or above) and treasury shares (of around 0.36% of shares representing the Share Capital)1.

1 These values do not reflect the capital increase concluded on 16 July 2024, which resulted in a Share Capital increase of euro 15,241,941.00, corresponding to a value of euro 0.10 per share, on 152,419,410 new shares issued at a price of euro 2.62

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The Fincantieri Group	Report on operations at 30 June 2024	Condensed Consolidated Interim Financial Statements at 30 June 2024	Notes to the Condensed Consolidated Interim Financial Statements

Shipyards and Docks

Main Subsidiaries

Europe

Italy

Trieste

Monfalcone

Marghera

Sestri Ponente

Genova

Riva Trigoso - Muggiano

Ancona

Castellammare di Stabia

Palermo

Norway

Brattwaag

Langsten

Søviknes

Romania

Braila

Tulcea

Asia

Vietnam

Vung Tau

Americas

USA

Marinette

Sturgeon Bay

Green Bay

Brazil

Suape

€ 7.7 bln Revenues 2023

Ships designed
+7,000 and built
Principal Western shipbuilder
+230 ofYearshistory
> 22,000 atEmployees30.06.2024	48% Other countries; 52% Italy
18 Shipyards

Europe

Italy

Cetena

Isotta Fraschini Motori

Fincantieri Oil&Gas

Marine Interiors

Marine Interiors Cabins

Fincantieri NexTech

Seanergy - a Marine

Interiors company

Fincantieri SI

Fincantieri Infrastructure

Opere Marittime

Fincantieri Infrastrutture Sociali

IDS Ingegneria Dei Sistemi

SOF Issel Nord

MI E-Phors B0P6

HMS IT S.L.S. - Support Logistic Services OPERAE - A Marine Interiors company

MTM Remazel Engineering Norway Vard Group Vard Design Vard Electro

Vard Interiors Seaonics Romania

Vard Shipyards Romania France Team Turbo Machines Croatia

Vard Design Liburna Poland Seaonics Polska

Asia

China

Fincantieri (Shanghai)

Trading

India

Fincantieri India

Vard Electrical Installation

and Engineering (India)

Qatar

Fincantieri Services Doha

Singapore

Vard Holdings

Vard Shipholdings

Singapore

Japan

FMSNA YK

Vietnam

Vard Vung Tau

United Arab Emirates

Fincantieri Naval Services

Saudi Arabia

Fincantieri Arabia for Naval Services

Americas

USA

Fincantieri Marine Group

Fincantieri Marine System

North America

Fincantieri Services USA

Fincantieri USA

Canada

Vard Marine

Brazil

Vard Promar

backlogTotal € 41.1 bln

1st	Player in diversification
and innovation
96 invesselsorder book

Suppliers +7,000 in Italy alone

Continents 3

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The Fincantieri Group	Report on operations at 30 June 2024	Condensed Consolidated Interim Financial Statements at 30 June 2024	Notes to the Condensed Consolidated Interim Financial Statements

Group Overview

The Group operates through the following three segments:

• Shipbuilding: includes the Cruise ships, Defence vessels and Ship Interiors business areas;
• Offshore and Specialized Vessels: encompassing the design and construction of high-end offshore support vessels for offshore wind farms and the Oil & Gas industry, specialized ships such as cable-laying vessels and ferries, unmanned vessels, offering innovative products with reduced environmental impact;
• Equipment, Systems and Infrastructure: includes the following business areas: i) Electronics and Digital Products Cluster2, which focuses on advanced technological solutions, from the design and integration of complex systems (system integration) to telecommunications and critical infrastructure, ii) Mechanical Systems and Components Cluster3, i.e., integration of mechanical components and power electronics in naval and onshore applications and iii) Infrastructure Cluster, which includes the design, construction and installation of steel structures for largescale projects as well as the production and construction of maritime works and the supply of technology and facility management for the health segment, industry and the service sector.

It should be noted that, following a reorganisation at the beginning of the year, the activities of the Vard Electro Group, included in the Mechanical Systems and Components Cluster until 31 December 2023, were reallocated to the Electronics and Digital Products Cluster. Comparative figures as at 31 December 2023 and 30 June 2023, appropriately reclassified, are shown below as restated values.

It should also be noted that as at February 2024, the newly acquired company Remazel Engineering S.p.A. is consolidated into the Mechanical Systems and Components Cluster.

The structure of the Fincantieri Group and overview of the companies included in its consolidation will now be presented.

2 As	at	31	December	2023	named	Electronics Cluster
3 As	at	31	December	2023	named	Mechatronics Cluster

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The Fincantieri GroupReport on operations at 30 June 2024Condensed Consolidated Interim Financial Statements at 30 June 2024Notes to the Condensed Consolidated Interim Financial Statements

Segments

Shipbuilding

Offshore

Equipment, Systems

Other

and Specialized vessels

and Infrastructure

	Business Areas		Cruise	Naval	Ship	Offshore	Electronics	Mechatronics	Infrastructure	Corporate
			ships	vessels	Interiors	and Specialized vessels	Cluster	Cluster	Cluster	Functions
			Contemporary	Aircraft carriers	Cabins	Drilling units	Design and	Energy generation/	Design, construction	Strategic direction
			Premium	Destroyers	Wet units	Offshore	integration	storage systems:	and assembly	and coordination:
			of complex systems	- Electrical,	of steel structures	- Governance, Legal
						support vessels
			Upper Premium	Frigates	Public Areas	(system integration)	electronic and	on large projects	and Corporate
			(AHTS-PSV-OSCV)
						with a focus	electromechanical	such as:	- Affairs
			Luxury	Corvette	Catering
			Special vessels	on automation	integrated systems	- Bridges	- Accounting and
			Exploration/Niche	Patrol vessels	Glazing	Fishery/Aquaculture	Cyber security	- Stabilization	- Viaducts	Finance
			systems,	- Airports	- Human Resource
			Expedition cruise	Amphibious ships	Interior Design
			Wind offshore	Telecommunications	propulsion,	- Ports	- Information
			vessels	Logistic support		Cable laying vessels	Critical	positioning and	- Maritime/hydraulic	Systems
					generation	works	- Research
				ships
						infrastructures	- Steam turbines	- Large commercial	& Innovation
	Product Portfolio			Multirole and					and industrial	- Purchasing
			research vessels					buildings
				Special vessels
				Submarines

Product lifecycle management:

• Integrated logistic support
• In-servicesupport

Training and assistance

Ship repairs

Refitting

Refurbishment

Conversions

Fincantieri S.p.A.

Fincantieri India Pte Ltd.

Fincantieri S.p.A.

Fincantieri NexTech

Fincantieri S.p.A.

Fincantieri

Fincantieri S.p.A.

• Monfalcone

S.p.A.

• Riva Trigoso

Infrastructure S.p.A.

• Marghera

Fincantieri USA Inc.

Fincantieri Oil&Gas S.p.A.

• Sestri Ponente

Issel Nord S.r.l.

Isotta Fraschini

Fincantieri

• Cantiere Integrato Navale

Fincantieri Arabia for Naval

Vard Group AS

Motori S.p.A.

Infrastructure

Riva Trigoso e Muggiano

Services LLC

• Brattvaag

Cetena S.p.A.

Opere Marittime

• Ancona

• Langsten

Fincantieri SI S.p.A.

S.p.A.

• Castellammare di Stabia

Fincantieri (Shanghai)

• Søviknes

E-PHORS S.p.A.

• Palermo

Trading Co. Ltd.

Power4Future S.p.A.

Fincantieri

• Arsenale Triestino San Marco

Vard Promar SA

IDS Ingegneria

Infrastructure

• Bacino di Genova

Etihad Ship Building LLC

• Suape

Dei Sistemi S.p.A.

FINMESA S.c.a.r.l.

Florida Inc.

CSSC - Fincantieri Cruise

Orizzonte Sistemi

Vard Vung Tau Ltd.

HMS IT S.p.A.

Remazel

Fincantieri

Industry Development Ltd.

Navali S.p.A.

• Vung Tau

Engineering S.p.A.

INfrastrutture

S.L.S. - Support

SOciali S.p.A.

FMSNA Inc.

Naviris S.p.A.

Vard Shipyards Romania SA

Logistic Services

Seaonics AS

Main Subsidiaries/Associates/Joint Ventures

• Tulcea

S.r.l.

SOF S.p.A.

Fincantieri Services Doha LLC

Marine Interiors Cabins S.p.A.

• Braila

Team Turbo

Fincantieri Services USA LLC

Marine Interiors S.p.A.

Vard Interiors AS

Vard Electro AS

Machines S.A.S.

BOP6 S.c.a.r.l.

Fincantieri Marine

Seanergy a Marine Interiors

Vard Design AS

Group Holdings Inc.

company S.r.l.

Vard Marine Inc.

FMG LLC

MI S.p.A.

• Sturgeon Bay

OPERAE a Marine Interiors

Marinette Marine

Company S.r.l.

Corporation LLC

• Marinette

Fincantieri Naval Services - Sole

ACE Marine LLC

Proprietorship LLC

• Green Bay

MTM S.c.a.r.l.

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