Non price-sensitive communications

• Revenues increased comparing to first half of 2007 (+9%).
• Operating Result (EBIT) amounted to 40 Euro/million.
• Net Income equal to 15,1 Euro/million which is still affected by the residual consequences of the negative Euro/dollar exchange rate and by the increase in raw material costs, in particular steel and oil.
• Growing order backlog (+9%) that will guarantee an average workload for the next 3 years; even being a significant result, it can not ensure the saturation of all the company production plants in the medium term.
• High investments level as during year 2007 to guarantee company asset competitiveness.

Trieste, October 17th , 2008 – The Fincantieri’s Board of Directors met today and offered his sympathy to the relatives for the loss of the worker caused by the fatal incident occurred at the Monfalcone yard.
Moreover, as proposed by the CEO, the Board of Directors approved the set-up of a committee made up of experts, that, in accordance with trade unions and public institutions, will outline a wide project to face the safety issue in all his aspects, from the investments to the workers training and to the communication matters.

The Board of Directors reviewed the first half 2008 consolidated results which confirmed the positive Group’s performances even being affected by the residual consequences of the Euro/dollar exchange rate and by the extraordinary growth of the raw material costs (primarily steel price up to 25% during the first half of 2008 from the average cost of 2007). 

• Consolidated revenues for the first half 2008 amounted to 1.372 Euro/million, up to 9% from 1.256 Euro/million of the first half of 2007, confirming the positive trend of the last years. EBITDA decreased from the first half of 2007 (74,6 Euro/million compared to the 103,2 Euro/million of the same period of 2007) following the negative impacts of the Euro/dollar exchange rate, of the exceptional increase of raw materials costs (primarily steel and oil) and of the economical impact of the renewal of the labour contract agreement. As a consequence Adjusted Operating Result (EBIT excluding non-recurring income and expenses) decreased to 44,6 Euro/million from 74,4 Euro/million of the same period of 2007. Due to the above mentioned results Net income was 15,1 Euro/million, compared to 37,0 Euro/million of the first semester of 2007.

• With regard to commercial activity new orders for 1.425 Euro/million have been acquired (compared to 2.764 Euro/million in the first half of 2007) despite a changed market scenario recently even worsen by the crisis of the financial markets. These new contracts, added to the value of production of the orders to be delivered, raised the order portfolio to 11,6 Euro/billion (compared to 10,6 Euro/billion from the first half of 2007), extending the Company workload. The resulting average backlog (equal to 8,2 Euro/billion, is equivalent to approximately 3 years, and up from 7,9 Euro/billion of the first half of 2007) even being robust and impressive, can not guarantee saturation of all company shipyards in the medium term, considering also the specific products lifecycle requirements.

• Capital expenditure in tangible and intangible assets for the first six months of 2008 which amounted to 51,5 Euro/million showed a light growth from the value of the first half of 2007 (50,8 Euro/million), and represented the continuation of projects started in the previous years, as the postponement of the Company’s capital increase will probably shift the new ones.

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