Executive summary

Year-end guidance confirmed, increased revenues and profitability in 1Q 2021

Year-end targets confirmed

Guidance for 2021 confirmed: revenues excluding pass-through activities +25%-30%, EBITDA margin at 7%, and net financial position flat YoY. First quarter performance confirms the targets outlined for year-end

Total backlog at € 34.4 bn including order intake at €0.3 bn: backlog at €26.5 bn (98 units) and soft backlog at €7.9 bn

Two units delivered during the quarter: LSS «Vulcano» to the Italian Navy and expedition cruise vessel «Coral Geographer» to Coral Expeditions


Revenues excluding pass-through activities up 9.1% YoY confirming the growth trend outlined in the previous quarter


(1) Excluding pass-through activities 


EBITDA margin at 7.0% improving consistently with year-end target thanks to higher production volumes and sound execution

• COVID-19 related extraordinary costs at €14 mln

(1) Excluding pass-through activities 

Net debt

Net debt increase owing to a delivery schedule concentrated in 3Q - expected to reverse from 3Q


Business update

Leveraging our core competencies, while expanding our strategic capabilities and gearing up to become a key player within the missions set by the Recovery Plan


Delivery schedule carried on as expected
Viking Venus, the first out of five cruise ships to be delivered   from Italian shipyards this year, was successfully handed over to Viking   on April 15th in Ancona


• Fincantieri to officially partake in the Sea   Defence Project, aimed at providing technologies generation of naval   platforms and pursued in further European development programmes
• A Memorandum of Understanding was signed between JV Naviris and Navantia   for an international industrial cooperation to develop the European Patrol   Corvette, and falling within the PESCO European Program (1)


• VARD to design a cable repair vessel for   Orange Marine, specifically developed for the maintenance of submarine   cables with special attention to sea-keeping capabilities, maneuverability   and low fuel consumption
• VARD to design and construct 3 Service Operation Vessels for North Star   Renewables: the units will be delivered in 2023 from VARD Vung Tau and   will be deployed in the Dogger Bank Wind Farm

(1) Permanent Structured Cooperation


Cloud computing: A cooperation agreement was signed with Amazon Web Services to accelerate digital innovation and technological development at national level, with special focus on cloud computing to provide technological and infrastructural solutions to institutions, large companies, SMEs, and startups


Connected vehicles and smart roads: an agreement was signed with Almaviva to support and enhance the digitalisation process in the transportation and logistics sector
Innovative projects for reducing emissions: a Memorandum of Understanding was signed with Arcelor Mittal and Paul Wurth to consider drawing up a reconversion plan for the existing integrated cycle of the AMI steel-making plant in Taranto, using eco-friendly technologies
Hydrogen. The first Zero Emission Ultimate Ship will be completed in 2021: it is an experimental fuel cell powered marine vessel   testifying our commitment to developing alternative sustainable propulsion systems


• Cold ironing: a letter of intent was signed with Enel X to collaborate on building and running next-generation port infrastructure with a low environmental impact and developing electricity-powered solutions for ground logistics services


3 new orders in wind offshore and 2 deliveries in the quarter

New orders




Expected   Delivery

 Offshore Specialized Vessels

3 Service Operation Vessels

North Star Renewables








LSS “Vulcano”

Italian Navy


 Offshore & Specialized Vessels

Cruise “Coral Geographer” (1)

Coral Expeditions

Vung Tau

(1) For reasons connected to the organizational responsibility of VARD yards split between Cruise and Offshore, “Coral Geographer” for Coral Expeditions delivered in Q1 2021 is included in the Offshore & Specialized Vessels deliveries

Backlog deployment

Fully preserved order backlog with visibility stretching up to 2029 in Naval

1Q 2021


units delivered


new orders


ships in backlog


Order intake and backlog

Order intake is still limited but long-term visibility is confirmed

Limited order intake in Shipbuilding with a wait-and-see attitude on the restart of cruise operations

3 Service Operation Vessels acquired in the Wind Offshore segment

Total backlog at €34.4, approximately 6.6x 2020 revenues



(1) Total backlog is the sum of backlog and soft backlog
(2) Order intake/revenues excluding pass-through activities
(3) Excluding pass-through activities
(4) 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


Top-line growth on the right track: full swing of production programmes driving revenues up 9.1% YoY

Revenues excluding pass-through activities up 9.1% YoY thanks to resumption of operations and full swing of production programmes

 Shipbuilding up 12.8% YoY excluding pass-through activities

 Offshore & Specialized Vessels down 23.5% due to (i) disposal of Brevik shipyard (ii) effects of market repositioning on  higher-value added segments still to unwind

 Equipment, Systems & Services: up 13.4%


(1) Breakdown calculated before eliminations


Operating profitability at 7.0% is in line with 4Q 2020 performance and 2021 guidance

Significantly improved profitability on track with previous quarter positive performance and guidance for 2021

 Shipbuilding up 39% margin at 7.8% confirming backlog profitability

 Offshore & Specialized Vessels up to € 2 mln from negative €1 mln as a result of the successful turnaround strategy implemented in 2019 and market repositioning

 Equipment, Systems & Services down 16.7% YoY due to lower profitability in Ship Repair and Conversion


(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


Net working capital and net financial position

NWC and net debt increase are consistent with the delivery schedule: deleveraging expected by year-end

• Net debt mirrors net working capital dynamics driven by a concentrated delivery schedule


• Deleveraging starting from 3Q

 (1) Construction loans are committed 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


2021 Company outlook


• In the US, the CDC may reportedly be open to lift or modify the Conditional Sailing Order - in Europe cruise operations are about to be resumed starting from late spring/early summer

• Strong 2022 booking volumes for cruises are ahead of pre COVID-19 levels and are driven by pent-up demand


Operations and financials

• Operations to run at full swing with a production ramp-up expected to bridge the gap experienced in 2020

• Long-term growth and profitability are ensured by a fully preserved order portfolio in Cruise and a highly diversified backlog

• Sound revenue growth expected to accelerate in the remaining part of the year

• Increase in net financial position (owing to a delivery schedule concentrated in 3Q) expected to rapidly reverse in the second half of 2021

Guidance 2021

Confirmed guidance on year-end:

• Revenues excluding pass-through activities will be up 25%-30% and EBITDA margin is expected at ~7.0%

• Net financial position is expected to come in broadly in line with 2020