The Board of Directors of Fincantieri S.p.A., chaired by Claudio Graziano, examined and approved the strategic guidelines of the 2023-2027 Business Plan presented by Chief Executive Officer Pierroberto Folgiero.
The Business Plan is rooted in a post pandemic context, also affected by geopolitical dynamics and a constantly evolving macroeconomic scenario. However, such situation might offer significant opportunities, thanks to Fincantieri distinctive competencies in the high value-added shipbuilding industry.
The Plan testifies the Group ambition to become a global leader in the development and lifecycle management of green and digital ships for the cruise, defence and energy sectors. Furthermore, thanks to its industrial excellence, it aims at strengthening the international competitive positioning of the Group and of the Italian shipbuilding industry, creating value for the entire supply chain.
With this regard, synergies among cruise, defence and offshore businesses will be strengthened benefitting from the green transition and technological innovations.
Within the cruise industry, Fincantieri is leader with over 40% of the market share and 120 cruise ships built since 1990, namely over a third of the global fleet. The Group counts 28 ships in portfolio (as of September 30, 2022), with deliveries up to 2028 and has globally leading shipowners among its clients.
The next industrial cycle of the sector will factor two drivers: (i) the resumption of tourism, after the pandemic, with a clear preference for cruises, at higher levels than 2019, and with new luxury niche operators entering the market, (ii) digitalization and green transition, with higher demand for ships equipped with the most innovative technological features and next generation engines.
With a long-standing presence in the defence industry, since 1990 the Group has delivered over 130 defence units, of which around 50 to Italy, another 50 to the USA and around 30 vessels to foreign navies. Moreover, Fincantieri is a strategic partner of the Italian Navy, among the most advanced worldwide. It also holds a leading position in the construction of highly technological surface vessels, consolidating the production of new generation submarines, and continuing to demonstrate its ability
to meet both national and international clients’ requests.
Spending for naval vessels is expected to grow in line with global defence budgets, led by Western European and Asia Pacific countries. Strong of its role as system integrator and the existing programs, the Group aims at strengthening its positioning towards globally recognized navies through the development of new projects in foreign accessible markets, such as Asia and the Middle East.
Fincantieri continues to be a prime mover in the construction of support vessels for the wind offshore sector, with ten Construction Service Operations Vessels (CSOV) - Service Operation Vessels (SOV) in portfolio, and two cable laying vessels. Furthermore, the development of cutting-edge offshore units, featuring green propulsion and remote-control solutions, is carrying on at full speed to support future offshore operations. Among these, Fincantieri counts 14 marine robotic vessels, designed to use green ammonia as a propeller.
The decarbonization together with the higher investments in renewable energy will lead to increased demand for specialized vessels to be deployed in offshore wind farms. Thanks to its know-how and its leadership in the construction of SOV, the Group will seize further opportunities stemming from the rise of total installed capacity expected by 2030 and the additional need for vessels in the wind farms.
The Management Team will present further details on the Business Plan at the FY22 results. Pierroberto Folgiero, Fincantieri Chief Executive Officer, commented: “Distinctiveness and sustainability are the defining traits of our new Plan, allowing us to continuously
grow by turning macroeconomic and sector related challenges into opportunities. The 2023-2027 Business Plan is grounded on five strategic pillars fostering Fincantieri global leadership, enabling the green transition on large vessels and in the construction and management of automated and digital ships. Such evolution spurs from (i) the focus on our three core businesses – cruise, defence
and specialized offshore vessels – wherein we will act as pioneers in developing new technologies.
The Plan entails a continuous effort on the modernization and digitalization of shipyards’ operations, up to outstanding levels, and the relentless pursuit of financial discipline and deleveraging.”
In order to further strengthen the competitive positioning and distinctiveness in the international shipbuilding industry, the Group identified a set of actions and strategic projects to be carried out in the Plan horizon, with specific focus on human capital, technological enhancement and supply chain.
Utmost focus on core business, naval, cruise, offshore and on backlog execution
• Thorough review and digitalization of shipyards to enhance efficiencies in engineering and production processes
• Improving competitive positioning in the specialized vessels business to seize opportunities in the fast-moving offshore wind industry
• De-risking and partnering of the infrastructure business
• Strengthening the accommodation business to support captive activities and the expansion in non captive markets
• Supporting suppliers’ network through programs to develop further competence
Expanding service offering in order to maximize operating efficiency throughout the lifecycle of the ship
• Further strengthening the role as digital design authority and complex system, including automation, data management and AI
Consolidating the competences as platform integrator
• Reinforcing Orizzonte Sistemi Navali know-how to improve combat system integration
Value creation through constant risk mitigation, close attention to the management of costs and optimization of cash flow dynamics
• Interfunctional and interdivisional approach, spreading procurement best practices
• Financial discipline, assigning specific and cross functional responsibilities to monitor cost and standardize processes
Industrial commitment to a sustainable strategy
• Enabling the application of new propulsion technologies (new internal combustion engines and fuel cells) and new fuels (LNG, methanol, ammonia and hydrogen) leveraging on solid in-house skills and production capabilities
• Identifying a clear sustainability strategy aimed at (i) safeguarding competences, enhancing our human capital within an inclusive and international environment, (ii) setting a roadmap to address tighter regulations while providing clients with top-notch solutions to reach Net Zero targets, (iii) fostering competitiveness, through continuous improvement in efficiency and safety, maintaining top-notch standards in the whole supply chain