Presentazione 1H 2022

• Strategic review of infrastructure projects and other non core businesses

• Enhanced collaboration with Leonardo on defence business, envisioning a fully fledged prime contractorship model and key international alliances

• Continuous engagement on modernization and digitalization of shipyards operations up to excellence

• Firm focus on the core business of cruise and defence shipbuilding and increased entrepreneurial approach on green propulsion systems (e.g. LNG, methanol, ammonia, hydrogen) and on digital solutions (e.g. digital twins, simulators, energy management, predictive maintenance) leveraging Fincantieri global and undisputed leadership

• Maximum attention to financial discipline and deleveraging

• Utmost focus on Fincantieri human capital at any organizational level

• Positive operating performance affected by:
- the results of a strategic review in Infrastructure
- raw materials prices impact on shipbuilding projects’ whole life costs
- write-off of some financial assets
- goodwill impairment related to the Norwegian subsidiary Vard and US subsidiary Fincantieri Marine Group

• Revenues at € 3,510 mln, up 16% YoY, in line with expectations

• Net loss at € 234 mln due to 1H 2022 extraordinary items (€ 156 mln)

• First signs of resumption in cruise orders

Please note that throughout the entire presentation:
- 1H 2021 and 1H 2022 data are reported excluding the effect of pass-through activities
- 1H 2021 data have been restated following the reallocation of VARD Electro and Seonics respectively from the Shipbuilding and the Offshore & Specialized Vessels segment to the Equipment, Systems & Services segment
1. Group Net financial position has been aligned with ESMA guidelines and it includes (i) construction loans, (ii) non-current financial liabilities on hedging instruments and (iii) liabilities for fair-value options investments that were previously excluded, furthermore it excludes non-current financial receivables

FIRST MAJOR AGREEMENT FOR NEW CONSTRUCTION AFTER THE PANDEMIC

▪ Long term partnership with MSC Cruises strengthened with a total of six Explora Journeys luxury cruise ships equipped with industry top-notch features

▪ Four cruise ships powered by liquefied natural gas (LNG), the cleanest marine fuel currently available, reducing CO₂ emissions by up to 25% vs standard marine fuels

▪ MoA signed in July 2022 for two additional cruise ships featuring new generation hydrogen powered engines, that will tackle the issue of methane slip

▪ Hydrogen to power a 6 MW fuel cell allowing emissions-free hotel operations and zero emissions in ports, with engines turned off

1. Initiative launched by IPCEI (Important Projects of Common European Interest) that brings together companies and research centers from different EU Member States providing significant benefits to strategic EU goals

1. Formerly known as V.E
2. Ranked fourth for sustainability communication

HYDROGEN AND ALTERNATIVE FUELS

• ZEUS, Zero Emissions Ultimate Ship, the first experimental fuel cell-powered marine vessel equipped with a lithium-ion battery

• LNG-powered cruise ships for a more sustainable and energy efficient cruise industry, in line with IMO regulations

• Next generation hydrogen-powered cruise ships to be developed for MSC Cruises


COLD IRONING AND GREEN PORTS

• Target of zero emissions in ports by 2030

• Development of next generation port infrastructure with a low environmental impact


DIGITAL INNOVATION

• Marine robotic vessels featuring next generation technologies such as fuel cells and green ammonia fuel systems, onshore remote control and unmanned operations

• Infrastructure monitoring solutions such as digital twins, to reproduce a structure’s features using drones and AI to detect structural imperfections

1. The Offshore & Specialized Vessels business generally has shorter production times and, as a consequence, shorter backlog and quicker order turnaround than Cruise and Naval

▪ Order intake at €1.5 bn, impacted by shipbuilding slowdown, partially offset by offshore positive momentum

▪ First signs of resumption in cruise orders registered already in July 2022

▪ Total backlog representing 5.2x 2021 revenues

1. Total backlog is the sum of backlog and soft backlog. Backlog coverage calculated as Total Backlog/ previous year revenues ex pass through activities
2. Order intake/revenues ex pass-through
3. 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

Revenues up 16.0% YoY at €3,510 mln

▪ Shipbuilding up 6.5% YoY, with record production volumes at the Group’s Italian shipyards. Cruise accounts for 48.5% of total revenues and Naval for 23.3%

▪ Offshore & Specialized Vessels up 78.8% YoY, thanks to the effective repositioning strategy

▪ Equipment, Systems & Services up 29.6% YoY mainly related to the Mechatronics, Complete Accommodation and Infrastructure business areas


88% of revenues from international clients

1. Breakdown calculated before eliminations

EBITDA margin at 2.6% impacted by lower marginality in Infrastructure, increased raw materials’ prices and 1H 2022 non-recurring items in Shipbuilding

▪ Shipbuilding: EBITDA mainly affected by a write-down (according to IFRS9) of work in progress due reassessment of a client credit rating for a ship to be initially delivered in July 2022, now delayed in 2H 2022. Net of this one off, EBITDA margin at over 8%

▪ Offshore: increased EBITDA thanks to the repositioning strategy towards more promising sectors

▪ ESS: EBITDA impacted by the reduction in marginality of the Infrastructure business area, raw materials inflation and FX rates effects

▪ Net result for 1H 2022 negative at €234 mln, despite positive business operating performance

▪ Extraordinary items include:

- €107 mln for goodwill impairments and other intangible assets

- €29 mln for asbestos related litigations

- €20 mln due to provisions for risks of probable non-fulfillment of obligations related to offset agreements

▪ Capex at €108 mln to support further efficiencies to address new production scenarios

▪ Strategic investments in Monfalcone and Marghera shipyards expected to be completed by year end

▪ Investments breakdown per category:

- Capacity increase for €39 mln

- Safety and maintenance for €34 mln

- Efficiency improvements for €19 mln

- IT, digitalization and advanced robotics for €16 mln

▪ Investments breakdown as follows:

- Intangible activities for €23 mln

- Tangible activities for €85 mln

▪ Net financial position at €3,296 mln, consistent with 2022 deliver schedule, to be aligned to the ESMA recommendations from now onwards

▪ NFP consistent with production volumes and reflecting net working capital dynamics

▪ Net financial position still impacted by the strategy of deferrals granted to clients (€317 mln) during COVID-19 pandemic, of which €251 mln already repaid as of July 1, 2022

1. Group Net Working Capital aligned with ESMA guidelines excludes (i) construction loans, (ii) current portion of derivative liabilities for non-financial items, and (iii) the current portion of the fair value of option on equity investment
2. Group Net financial position has been aligned with ESMA guidelines and it includes (i) construction loans, (ii) non-current financial liabilities on hedging instruments and (iii) liabilities for fair-value options investments that were previously excluded, furthermore it excludes non-current financial receivables