Presentazione 9M 2021

• FY 2021 guidance fully confirmed with revenues expected to reach +25-30% YoY and EBITDA margin over 7%

• Total backlog with 110 units at €36.0 bn, 6.9x 2020 revenues: backlog with 92 units at €26.6 bn and soft backlog at €9.4 bn

• Order intake at €2.3 bn

• Record-high production volumes with 12.3 mln production hours at Italian sites, +34% YoY

• 13 ships successfully delivered from 10 different shipyards, of which 3 cruise ships delivered in July

• Operating cash flow more than compensates Capex needs, also after €350 mln repayment of construction loans

• COVID-19 managed effectively

(1) Articulated Tug Barge (ATB) is an articulated unit consisting of a barge and a tug, thus being counted as two vessels in one unit
(2) The Offshore & Specialized Vessels business generally has shorter production times and, as a consequence, shorter backlog and quicker order turnaround than Cruise and Naval

• No orders cancellation

• Sizeable order intake at € 2.3 bn, thanks to the positive impact of Offshore & Special Vessels and ESS

• Soft backlog includes the agreement of Fincantieri as prime contractor for the supply of 6 frigates to the Indonesian Navy

• Total backlog represents 6.9x 2020 revenues

(1) Total backlog is the sum of backlog and soft backlog
(2) Order intake/revenues
(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 excluding pass-through activities are up 28.3% YoY thanks to record-high production volumes in the 9M 2021 (12.3 mln production  hours)

 Shipbuilding up 28.5% YoY thanks to the programmed production ramp-up

 Offshore & Specialized Vessels up 15.3% YoY

 Equipment, Systems & Services up 29.1% YoY mainly related to the complete accommodation business area

88% of revenues from international clients

^{(1) Breakdown calculated before eliminations}

EBITDA margin at 7.3% excluding pass-through activities mainly thanks to the positive contribution from Shipbuilding despite the impact  from increased steel prices

 Shipbuilding EBITDA is up €112 mln YoY with margin at 7.6%

 Offshore EBITDA is up €6 mln YoY thanks to the effective repositioning strategy in more promising sectors

 ESS EBITDA is up €15 mln YoY despite the lower Ship Repair and Conversion margins

^{(1) EBITDA is a Non-GAAP Financial Measure. The Company defines EBITDA as profit/(loss) for the period before (i) income taxes, (ii) share of profit/(loss) from equity investments, (iii) income/expense from investments, (iv) finance costs, (v) finance income, (vi) depreciation and amortization (vii) expenses for corporate restructuring, (viii) accruals to provision and cost of legal services for asbestos claims, (ix) other non recurring items} 

 Shipbuilding: EBITDA improvement driven by higher production volumes and improved operating margin

 Offshore and Specialized Vessels: increased EBITDA thanks to higher operating margins

 ESS: positive effect brought about by higher production volumes and better margins

• Capex up 50% vs 9M 2020 to support shipyards upgrade and further efficiencies to address new productive scenarios

• Investments breakdown as follows:
- Intangible activities for €33 mln, in line with 9M 2020
- Tangible activities for €225 mln

• Solid coverage of industrial fixed costs structure, allowing greater cash generation and progressive deleveraging

• NWC negative at €398 mln, - € 196 mln vs FY 2020, mainly due to the deliveries in the period

• Net debt at €1,059 mln in line with FY 2020 and FY 2021 expectations

• NFP still affected by the strategy of deferrals granted to clients (€ 298 mln), with cash-in to occur in 4Q and in 2022

• Operating cash flow more than compensates the Capex needs, allowing also €350 mln repayment of construction loans



^{(1) Construction loans are comlnitted working capital financing facilities, treated as part of Net working capital, not in Net debt, as they are not general purpose loans and can be a source of financing only in connection with ship contracts}