Fincantieri-2019 consolidated financial statements and draft financial statements of the parent company

Record-high revenues at euro 5.8 billion, order intake at euro 8.7 billion and total backlog at almost euro 33 billion.

COVID-19 emergency

All necessary actions to counter the emergency and ensure the health of all Fincantieri employees, including the interruption of production activities since March 16^th, have been promptly deployed
The COVID-19 outbreak is affecting 2020 Group performance, however, with the resolution of the situation in a reasonable time frame, the Group's financial structure will be able to face the impacts
Group priority and commitment is focused on the safeguard of clients and strategic partners to ensure the acquired backlog, notably in the cruise sector, among the hardest hit by COVID-19 crisis
2020-2024 Business Plan will be finalized as soon as the development of the emergency allows a clearer analysis of the potential impact

Consolidated 2019 results^{^[1]}

Operational results

Order intake remarkably higher than revenues for over 5 years: euro 8.7 billion consisting in 28 units, 13 of which are cruise ships for 6 different brands (Oceania, Regent Seven Seas, Viking, MSC Crociere, Princess Cruises, Ponant) and 5 of which are naval vessels in the USA (LCS and MMSC programs)
Total backlog^{^[2]} with 109 units and euro 32.7 billion, almost six times 2019 revenues:backlog at euro 28.6 billion (+11.8%) with 98 units to be delivered up to 2027 and soft backlog at almost euro 4.1 billion
Delivery of 26 units from 12 different shipyards, 4 of which are cruise ships, 4 are expedition cruise vessels and 3 naval vessels, and launch of 3 vessels for the Italian Navy
Headcount increase: 550 direct jobs and 2.650 indirect jobs

Financial results

Sound performance of Fincantieri SpA (Revenues at euro 4.3 billion, EBITDA at 489 million, EBITDA margin at 11.3% and a Net income at euro 151 million, net of Vard share write down for euro 50 million and net of extraordinary items for asbestos at euro 40 million)
Negative performance of the subsidiary Vard, for which a restructuring plan was implemented following the delisting at the end of 2018, has had an impact on Group results

- Record-high revenues at euro 5.8 billion increased by 8.0% compared to 2018

- EBITDA at euro 320 million (euro 421 million in 2018), with a margin of 5.5% (7.8% in 2018)

- Negative adjusted^{^[3]} Net incomeat 71 million (euro 114 million in 2018) and negative Net Income at euro 148 million (euro 69 million in 2018) net of taxes (euro 73 million), extraordinary items (euro 67 million) and losses from discontinued operations at euro 24 million

- Net debt^{^[4]}at euro 736 million, representing a capital structure consistent with the growth in production volumes in the cruise ships business and its deliveries schedule

[1]In addition to the standard financial indicators required by IFRS, Fincantieri uses certain alternative performance measures for the purpose of better assessing its operating performance and financial position. The meaning and content of these measures are described in the appendices, in accordance with Consob Communication no. 0092543 of December 3, 2015 which implements the ESMA guidelines (document no. ESMA/2015/1415)

[2] Sum of backlog and soft backlog

[3] Net result before extraordinary and non-recurring items

[4] Excluding construction loans

Full report here https://www.fincantieri.com/en/media/press-releases/2020/2019-consolidated-financial-statements-and-draft-financial-statements-of-the-parent-company/

Apr 02 2020