Fincantieri: 2017 results in line with Business Plan 2016-2020
The Board of Directors of FINCANTIERI S.p.A. ("Fincantieri" or the "Company"), chaired by Giampiero Massolo, has approved the Consolidated financial statements at December 31, 2017, the draft financial statements of the parent company at December 31, 2017, prepared in accordance with international financial reporting and accounting standards (IAS/IFRS) and the Consolidated Non-financial Statement at December 31, 2017 pursuant to Legislative Decree No. 254/2016.
During the Board meeting Giuseppe Bono, Fincantieri's Chief Executive Officer, said: “The results we have presented confirm the state of good health of our Company, that can boast unchallenged leadership position in several areas, obtained thanks to our capabilities and our diversified presence in the global arena. We have demonstrated our capacity to deal with truly complex project and tenders. This level of excellence translates into a more than decade long work load ahead of us, in the unfailing ability to transform soft backlog into firm orders, all the while respecting project times and deadlines of ever more demanding clients.
This strategy has been a winning one, and is confirmed by the creation and distribution of value for our shareholders. We will now put this wealth of experience at the service of our country and of the European shipbuilding sector, the consolidation of which we have been working on for years, favouring an irreversible process of which we are proud to be protagonists.”
Bono concluded: “In this watershed moment for Fincantieri, I would like to thank all our employee and contractors who, with their daily efforts and passion, contribute to the realization of a product that is among the most beautiful in the world”.
Consolidated 2017 results
• 2017 results in line with Business Plan 2016-2020
• Record high revenues, exceeding euro 5 billion, (13% improvement vs FY 2016), EBITDA at euro 341 million (+28% vs FY 2016), Adjusted Net income at euro 91 million (+52%) and Net income at euro 53 million (+279%)
• Orders intake at euro 8.6 billion (+31%), reconfirming the commercial effectiveness of the Group and the positive market scenario. The important order for new client Norwegian Cruise Line and the order for two new Seaside EVO cruise ships by MSC highlight the ability to attract new clients and retain existing ones.
• Total backlog at euro 26 billion, covering approximately 5 years of work if compared to 2017 revenues: backlog as at December 31, 2017 was euro 22 billion (+21%) with 106 ships in the order book and the soft backlog was approximately euro 4.1 billion
• Sound operational performance in Shipbuilding with 12 units delivered, of which 5 cruise ships (including MSC “Seaside”, the first prototype unit for MSC Cruises)
• Net debt at euro 314 million (down from euro 615 million in FY 2016)
• Signed a share purchase agreement for the acquisition of 50% of the share capital of STX France and lunched the activities for the integration with Naval Group, starting a major step towards the creation of a leading global player in the cruise and military naval sectors
• Announced delisting proposal for VARD
• Increased employment in Italy, with the creation of almost 400 new jobs in Italy, and around 1600 in the subcontractor network
• Proposed Dividend payment of € 0.01 per share
Main financial and strategic targets of 2018-2022 Business Plan (current perimeter)
• 2022 revenues increase up to +50% versus 2017
• Significant increase of profitability with a 2022 EBITDA margin expected between 8% and 9% (corresponding to a growth in EBITDA of up to 100% versus 2017)
• 2022 Adjusted net result expected between 3% and 4%
• Cash generation from operations to finance investments, debt reduction and shareholder remuneration, through a sustainable dividend distribution
• Continuous focus on organization system necessary to achieve the growth objectives foreseen by the Plan in order to ensure a correct implementation of the strategic actions identified
• Consolidation of leadership in Cruise segment and further expansion in Naval, leveraging confirmed track record of well proven products, as well as concept design and development capabilities for all types of clients
• Further diversification in the Offshore business, increasing intra-Group synergies, expanding product offering and strengthening the operational and innovation capabilities needed to seize opportunities in the Offshore sector
• Renewed focus on After Sales, to provide clients with ever more complete solutions
• Approval of Consolidated Non-financial Statement pursuant to Legislative Decree No. 254/2016
• Ordinary and Extraordinary Shareholders’ Meeting convened for May 11, 2018 on single call