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FINCANTIERI BOARD APPROVES Q1 2016 RESULTS: POSITIVE NET RESULT, PERFORMANCE IN LINE WITH BUSINESS PLAN TARGETS, TOTAL BACKLOG EURO 19.2 BILLION, REVENUE EURO 1 BILLION
11 mag 2016
11 mag 2016
Legislative Decree no. 25/2016, in force since 18 March 2016, has, amongst other things, partially reworded art. 154-ter, par. 5 of the Italian Consolidated Financial Act and in so doing has eliminated the requirement to publish interim management statements. The Company has nonetheless decided to publish, through this press release, voluntary financial information for the first quarter of 2016 prepared in accordance with International Financial Reporting Standards and unaudited. This decision does not intend to bind the Company in the future and may be reviewed also in light of possible changes in the Italian regulatory framework by Consob. The Company will ensure that adequate information is provided about its subsequent decisions concerning voluntary financial information.
Results for the first three months of 2016
• 2016 and medium-term guidance confirmed: the solid results for the first quarter of 2016 mark a turning point from the second half of 2015, with which Fincantieri left behind the industry's longest period of crisis, and are in line with the targets outlined in the Business Plan 2016-2020. With regards to 2016, confirmed expected growth of revenues, EBITDA margin of approximately 5% and a positive net result
• Total backlog of euro 19.2 billion. The Group has confirmed its ability to continuously convert major commercial negotiations into firm contracts: the backlog is euro 15,374 million at 31 March 2016 (euro 8,992 million at 31 March 2016), while soft backlog is approximately euro 3.8 billion (approximately euro 9.2 billion at 31 March 2015)
• The Group has confirmed its ability to deliver highly complex prototype ships within contractual deadlines: the prototype cruise ship "Koningsdam" and the cruise ship "Viking Sea" were delivered in the same week at two different shipyards to two different clients. Several naval and offshore vessels were also delivered during the quarter. The prototype cruise ship "Carnival Vista" was delivered after the end of the quarter. Overall, the deliveries in the first four months of 2016 generated cash inflows totaling some euro 1.9 billion
• Group capital structure, considering the fully consolidated subsidiaries, is substantially balanced, with equity almost entirely covering net fixed assets
• Order intake: euro 713 million (euro 85 million at 31 March 2015)
• Revenue and income: euro 1,048 million (euro 1,110 million at 31 March 2015)
• Result before extraordinary and non-recurring income and expenses: net profit of euro 5 million (net loss of euro 21 million at 31 March 2015). The Group share of this result was a net profit of euro 3 million, compared with a breakeven at 31 March 2015.
• Result for the period: net profit of euro 0.3 million (net loss of euro 27 million at 31 March 2015). The Group share of this result was a net loss of euro 2 million (net loss of euro 6 million at 31 March 2015)
• EBITDA: euro 51 million (euro 59 million at 31 March 2015). The VARD Group made a positive contribution of euro 15 million. Consolidated EBITDA margin of 4.9% (5.3% at 31 March 2015)
• Net financial position: cash inflows from deliveries in the quarter more than offset funding requirements of volume growth particularly in the cruise ship business, resulting in a net debt position of euro 363 million (net debt of euro 438 million at 31 December 2015). The guidance provided in the Business Plan 2016-2020 is confirmed, with net debt of approximately euro 0.7-0.8 billion expected at the end of 2016, with a significant improvement in subsequent years thanks to substantial cash inflows before working capital changes typical of this business
Rome, 11 May 2016 – The Board of Directors of FINCANTIERI S.p.A. ("Fincantieri" or the "Company"), chaired by Vincenzo Petrone, has examined and approved the consolidated results for the first quarter ended 31 March 2016, prepared in accordance with international financial reporting and accounting standards (IAS/IFRS) and which are unaudited.
During the Board meeting Giuseppe Bono, Fincantieri's Chief Executive Officer, said: "We have managed and developed our business with determination in the first few months of 2016, finalizing major agreements, including those with Carnival Corporation and Norwegian Cruise Line Holdings for the Regent Seven Seas Cruises brand. The backlog at 31 March demonstrates the Group's ability to continuously transform into firm contracts the major commercial negotiations that a year ago, being still in progress, were included in the soft backlog. The total backlog remains at record levels, having exceeded euro 19 billion at the end of the first quarter.
The Group has also confirmed that it is able to complete highly complex projects within contractual deadlines, with the first four months of the year seeing delivery of three cruise ships, including two prototypes, namely the "Koningsdam" for Holland America Line and the "Carnival Vista" for Carnival Cruise Lines. As testimony to this capability, the "Koningsdam" and "Viking Sea" were delivered in the same week at two different yards to two different clients. All this has been possible thanks to the cohesive way in which the Group's employees have worked, with a clear focus and awareness of our Group’s goals.
Today we are presenting a solid set of quarterly results that mark a turning point from the second half of 2015, with which Fincantieri left behind the industry's longest period of crisis, showing a clear recovery in operating and economic performance."
Bono concluded: "The important operational and economic objectives achieved in the first few months of 2016 allow us to confirm the Business Plan's targets in terms of revenue growth, increased profitability, cash generation and shareholder remuneration."
Financial highlights
Financial and economic results for the first three months of 2016
Revenue and income amounted to euro 1,048 million in the first three months of 2016, with year-on-year changes shown in the table below.
Revenue generated by foreign clients accounted for 86% of the total in the period ended 31 March 2016, basically in line with the figure of 85% reported in the corresponding period of 2015.
As already stated, the solid results for the first quarter of 2016 mark a turning point from the second half of 2015 and are in line with the targets set out in the Business Plan 2016-2020, with 2016 results forecast to see growth in revenue, an EBITDA margin of approximately 5% and a positive net result.
EBITDA was euro 51 million at 31 March 2016 (euro 59 million in the first quarter of 2015), with an EBITDA margin of 4.9% compared to 5.3% in the first quarter of 2015.
EBIT was euro 25 million in the first three months of 2016 (euro 33 million in the first three months of 2015).
Profit before extraordinary and non-recurring income and expenses was euro 5 million at 31 March 2016, improving from a net loss of euro 21 million in the first quarter of 2015. Net finance costs amounted to euro 20 million in the period (euro 42 million at 31 March 2015): the improvement is primarily attributable to the recognition of euro 10 million unrealized foreign exchange gains on translating a loan held by Vard Promar from US Dollars into Brazilian Reals (the same loan had generated euro 20 million unrealized exchange losses at 31 March 2015). The Group share of profit before extraordinary items was a net profit of euro 3 million, compared to a breakeven at 31 March 2015.
Extraordinary and non-recurring income and expenses were euro 6 million in net expenses (euro 8 million at 31 March 2015) and mainly include costs for claims under asbestos-related lawsuits (euro 4 million) and charges for business reorganization plans, mainly related to VARD (euro 2 million).
Profit for the period, reflecting the factors described above, was euro 0.3 million (net loss of euro 27 million at 31 March 2015). The Group share of this result was a net loss of euro 2 million, compared to a net loss of euro 6 million in the same period last year.
Net invested capital amounted to euro 1,634 million at 31 March 2016, down from euro 1,704 million at 31 December 2015. In detail, Net fixed assets posted an increase of euro 27 million to euro 1,480 million (euro 1,453 million at 31 December 2015), mainly reflecting a positive change in the fair value of currency derivatives classified in Other non-current assets and liabilities; Net working capital decreased by 97 million to euro 154 million (from euro 251 million at 31 December 2015), mainly reflecting the positive impact of the two cruise ships delivered in the period and the reduction in VARD Group production volumes. In addition, Other current assets and liabilities reported a positive change of euro 112 million due to the fair value measurement of currency derivatives.
The Net financial position, which excludes construction loans, was a net debt of euro 363 million (euro 438 million net debt at 31 December 2015). The change in net financial position is primarily attributable to cash inflows from cruise ship deliveries in the first quarter of 2016.
Construction loans amounted to euro 1,098 million at 31 March 2016 (euro 1,103 million at 31 December 2015), of which euro 951 million related to the subsidiary VARD (euro 983 million at 31 December 2015) and euro 147 million to the Parent Company (euro 120 million at 31 December 2015).
Group operational results and performance indicators for the first three months of 2016
Order intake and backlog
During the first three months of 2016, the Group was awarded euro 713 million in new orders, compared to euro 85 million in the corresponding period of 2015, with a book-to-bill ratio (order intake/revenue) of 0.7 (0.1 at 31 March 2015).
The Shipbuilding segment accounted for 90% of the quarter's order intake before consolidation adjustments (53% in the first quarter of 2015), the Offshore segment for 10% (35% in the first quarter of 2015) and the Equipment, Systems and Services segment for 28% (29% in the first quarter of 2015).
With reference to the Shipbuilding segment, at the end of the quarter Fincantieri reached an agreement in the cruise ships business with Norwegian Cruise Line Holdings for the construction of a second ultra-luxury cruise ship for the Regent Seven Seas Cruises brand. On 2 April 2016, after quarter end, the Company also secured an additional order from Carnival Corporation & plc for the construction of a fifth ship for the Princess Cruises brand, as an addendum to the memorandum of agreement previously signed at the end of 2015 for four ships. This fifth order has been included in the soft backlog at 31 March 2016, while the first four ships were already part of the backlog at 31 December 2015. These contracts, finalized for the construction of five cruise ships, with a total value of over euro 3 billion, mark the most important success achieved in recent years with Carnival Corporation & plc.
With reference to the naval vessels business, Fincantieri Group has been awarded, through its subsidiary Marinette Marine Corporation, a contract to build another fully funded "Freedom" class LCS (LCS 25) under an option exercised by the US Navy, with delivery scheduled for 2020. In addition, an order was placed during the quarter for an ATB (Articulated Tug Barge) for chemical/petroleum transportation, which will be built at the Sturgeon Bay shipyard.
The Offshore segment, whose global market environment remains extremely depressed following the steep decline in oil prices, started to benefit from VARD's measures to diversify into new sectors and new markets. As a result of this strategy, VARD Group won an order in the first quarter to design and build a stern trawler for HAVFISK ASA and it also signed an important agreement with PONANT for four small luxury cruise ships, to be built entirely in Romania and Norway, with support and supply of key components by Fincantieri. This agreement has been included in the soft backlog at 31 March 2016.
Over the course of the first three months of 2016, the Equipment, Systems and Services segment saw the finalization of euro 203 million in orders (compared to euro 25 million in the same period last year), mainly in connection with the Italian Navy's fleet renewal program.
The Group's total backlog amounted to euro 19.2 billion at 31 March 2016, of which euro 15.4 billion in backlog (euro 9.0 billion at 31 March 2015) and euro 3.8 billion in soft backlog (euro 9.2 billion at 31 March 2015), with the order delivery profile extending until 2026. The total backlog guarantees about 4.6 years of work in relation to the 2015 level of revenue, with most of it in the Shipbuilding segment. Before consolidation adjustments, the Shipbuilding segment accounts for 91% of backlog (78% in the first quarter of 2015), the Offshore segment for 6% (20% in the first quarter of 2015) and the Equipment, Systems and Services segment for 6% (3% in the first quarter of 2015).
The growth in backlog on the same period last year confirms the Group's ability to transform soft backlog, representing the value of existing contract options and letters of intent as well as of contracts at an advanced stage of negotiation, into firm orders.
Capital expenditure
Capital expenditure amounted to euro 28 million in the first three months of 2016, of which euro 8 million for intangible assets (including euro 5 million for development projects) and euro 20 million for property, plant and equipment.
Capital expenditure in the period mainly related to continuation of work on projects to support the growth in production volumes and improve health and safety and compliance with environmental regulations within the production sites. There was also continued investment in developing new technologies, particularly with regard to cruise ships.
Headcount
Period-end headcount decreased from 20,019 at 31 December 2015 (of whom 7,771 in Italy) to 19,417 at 31 March 2016 (of whom 7,819 in Italy). This is due to a reduction in the number of resources employed at the VARD yards, particularly in Romania as a result of cost-cutting measures in response to the contraction in workload triggered by the difficulties in the Oil&Gas market in which the subsidiary operates, and in Brazil as a result of phasing out newbuilding activities at the Vard Niterói yard.
Deliveries
The table shows the deliveries scheduled each year for vessels currently in the order book, split by business unit. With reference to 2016, the table presents deliveries completed as at 31 March 2016 in addition to the total number of deliveries scheduled for the year.
Outlook for 2016
The Group confirms the guidance for 2016 outlined in the Business Plan 2016-2020, i.e. revenue growth of 4-6%, an EBITDA margin of around 5% and a positive net result.
As for the Shipbuilding segment, the solid results for the first quarter of 2016 and the ability demonstrated once again in the first few months of this year to manage a large number of deliveries of highly complex prototype ships to different clients at different production sites, support the expectation of margins recovery in the remainder of the year from the levels seen in the final quarters of 2015. Furthermore, to cope with the significant increase in volumes expected over the Business Plan period, particularly within the cruise business, the Company is engaged in developing important production synergies with VARD by using the Romanian shipyard in Tulcea to support the Italian production network.
As for the Offshore segment, 2016 is still characterized by a widespread and protracted market crisis entailing problems for all industry players, with a significant number of OSV owners embarking on restructuring processes with a consequent rise in counterparty risk. Furthermore, the international industry context is particularly challenging, with persistent political and economic troubles in Brazil and international geo-political issues limiting the opportunities to access certain strategic markets. To confront this market situation, the subsidiary VARD is carrying on the actions already successfully initiated to diversify and reorganize itself and is now working with clients and financial institutions to secure the current order book.
The Equipment, Systems and Services segment is expected not only to see further growth in volumes in 2016, thanks to the Italian Navy's fleet renewal program and the Company's strategic actions to diversify and in-source key systems and components, but also to confirm the positive margins recorded in the previous year.
Operational review by segment
SHIPBUILDING
Revenue and income
Revenue from the Shipbuilding segment amounted to euro 784 million at 31 March 2016, up 4.0% from euro 754 million in the first quarter of 2015, and comprised euro 515 million from the cruise ships business (euro 430 million at 31 March 2015) and euro 248 million from the naval vessels business (euro 283 million at 31 March 2015). There was an increase in cruise ship production volumes in the period compared with the first three months of 2015, with 11 ships under construction at the Group's Italian yards (of which 2 delivered in the period). The decrease in naval revenues was due to the lower volume of activity in Italy pending full start of work on the Italian Navy's fleet renewal program. Revenue from other activities decreased to euro 21 million from euro 41 million at 31 March 2015, mainly reflecting a lower contribution from repairs and conversions.
EBITDA
The solid results for the first quarter of 2016mark a turning point from the second half of 2015, heavily affected by significant extra costs related to the ships delivered in 2016. These results and the ability demonstrated once again in the first few months of 2016 to manage a large number of deliveries of highly complex prototype ships support the expectations consolidated margins in the remainder of the year. The segment's EBITDA was euro 36 million at 31 March 2016 (euro 46 million at 31 March 2015), with a margin of 4.7% (6.1% at 31 March 2015).
Deliveries
A total of 3 ships were delivered in the period:
• "Viking Sea", the second of a series of six cruise ships for Viking Ocean Cruises, was delivered at the shipyard in Ancona;
• "Koningsdam", a prototype ship for Holland America Line, a brand of the Carnival Group, the world's largest cruise operator, was delivered at the shipyard in Marghera;
• "Itarus", a semisubmersible floating platform for RosRAO, Russia's federal state unitary enterprise for radioactive waste management, was delivered at the shipyard in Muggiano (La Spezia).
OFFSHORE
Revenue and income
Revenue from the Offshore segment amounted to euro 236 million at 31 March 2016, down 28.5% from euro 330 million in the first three months of 2015, primarily due to the reduction in activities at VARD's European and Brazilian shipyards, particularly at the Niterói yard where newbuilding activity is being phased out as the vessel currently under construction reaches completion, and to the negative impact of changes in the Norwegian krone/Euro exchange rate (euro 21 million).
EBITDA
The Offshore segment reported euro 14 million in EBITDA at 31 March 2016, compared to euro 16 million in the first three months of 2015, with a margin of 6.0% versus 4.8% in the first three months of 2015. The period under review saw a margins recovery in the VARD Group's Brazilian shipyards with the gradual completion of outfitting activities of the vessels under construction at Promar and Niterói yards. The profitability of the Group's European yards continued to be affected by the drop in offshore market order volumes since the fourth quarter of 2014. It is recalled in this context that VARD has embarked on a series of short and medium-term actions which involve not only implementing programs to reorganize its operations, with the aim of achieving a structural reduction in the cost base, but also stepping up actions to develop synergies with the Italian cruise ship business.
Deliveries
A total of 3 vessels were delivered in the period:
• "Barbosa Lima Sobrinho", the first LPG carrier for Transpetro to be entirely built at Vard Promar shipyard (Brazil);
• "MMA Brewster", a PSV (Platform Supply Vessel), delivered to Mermaid Marine Australia Offshore at Vard Vung Tau shipyard (Vietnam);
• "Bourbon Artic", an AHTS (Anchor Handling Tug Supply Vessel), delivered to Bourbon at Vard Brattvag shipyard (Norway).
EQUIPMENT, SYSTEMS AND SERVICES
Revenue and income
Revenue from the Equipment, Systems and Services segment amounted to euro 53 million at 31 March 2016, an increase of 29.3% on the prior year corresponding figure of euro 41 million. This improvement was primarily due to higher volumes of both after-sales services for naval vessels and sales of ship automation systems, in line with the development prospects for this business.
EBITDA
The segment's EBITDA amounted to euro 8 million at 31 March 2016 (euro 4 million at 31 March 2015), with the margin improving to 14.7% from 10.3% in the first three months of 2015, mainly thanks to a higher contribution from sales of marine systems and equipment.
OTHER ACTIVITIES
Other activities primarily refer to the costs incurred by corporate headquarters for directing, controlling and coordinating the business, not allocated to other operating segments.
Other information
Other significant events in the period
On 2 March 2016, the Group signed an exclusive partnership agreement with a major Chinese shipyard for the development of technical skills, project management and logistics procedures in the field of ship repairs and conversions.
On 21 March 2016, Mrs. Anna Molinotti tendered her resignation to Fincantieri as a member of the Board of Directors and of the Compensation Committee.
Key events after 31 March 2016
On 18 April 2016, the first feed barge for the aquaculture market was delivered to Marine Harvest, the sector's largest player, at the Vard Aukra shipyard in Norway.
On 20 April 2016, an Artic Anchor Handling Tug Supply (AHTS) vessel was delivered to DOF at Vard Niterói shipyard in Brazil.
On 29 April 2016, "Carnival Vista", a prototype ship and new flagship of the fleet of Carnival Cruise Line, a brand of the Carnival Group, the world's largest cruise operator, was delivered at Fincantieri's shipyard in Monfalcone.
On 9 May 2016, VARD has communicated that its client Harkand Group has entered into administration. VARD is currently evaluating its position towards Harkand.
On 11 May 2016 VARD has announced a contract worth about usd 300 million with Topaz Energy and Marine for the construction of 15 module carrier vessels.
The present document must be read together with the separate and consolidated annual financial reports of Fincantieri S.p.A. at 31 December 2015, available on the Company's website (www.fincantieri.it) in the section "Investor Relations – Financial Statements".
The Manager Responsible for Preparing Financial Reports, Carlo Gainelli, declares, pursuant to paragraph 2 of article 154-bis of Italian Legislative Decree no. 58 dated 24 February 1998, that the accounting information contained in this document corresponds to the underlying accounting books and records.
The present press release is made available to the public at the Company’s registered office, on the Company’s website (www.fincantieri.com) in the section “Investor Relations - Financial Statements” and on the website of the authorized storage mechanism “NIS-Storage” (www.emarketstorage.com), also as a document.
DISCLAIMER
Forecast data and information must be regarded as forward-looking statements and therefore, not being based on simple historical facts, contain, by their nature, an element of risk and uncertainty because they also depend on the occurrence of future events and developments outside the Company's control. Actual results could therefore be materially different from those expressed in forward-looking statements. Forward-looking statements refer to the information available at the date of their publication; Fincantieri S.p.A. reserves the right to communicate any changes in its forward-looking data and information within the time and in the manner required by law.
The financial results for the first three months of 2016 will be presented to the financial community during a conference call scheduled for Thursday 12 May 2016 at 9:00 CET.
To take part in the conference call, it is necessary to call one of the following numbers:
Italy +39 028020911
United Kingdom +44 1212818004
United States +1 7187058796
Hong Kong +852 58080984 then press *0
The slide presentation will be available 10 minutes before the start of the conference in the Investor Relations section of the website www.fincantieri.com.
Fincantieri is one of the world's largest shipbuilding groups and number one for diversification and innovation. It is leader in cruise ship design and construction and a reference player in all the shipbuilding industry's high-tech sectors, from naval to offshore vessels, from highly complex special vessels and ferries to mega-yachts, as well as in ship repairs and conversions, the production of marine systems and equipment and the provision of after-sales services.
Headquartered in Trieste (Italy), the Group has built more than 7,000 vessels in its over 230 years of maritime history. With around 19,500 employees, of whom more than 7,800 in Italy, 21 shipyards in 4 continents, Fincantieri is now the leading Western shipbuilder. Its client portfolio includes the world's largest cruise operators, the Italian Navy and the U.S. Navy, as well as several other foreign navies, and it is partner to some of the leading European defense companies in connection with supranational programs.
www.fincantieri.com
APPENDICES
Presented below are the reclassified consolidated versions of the income statement, statement of financial position and statement of cash flows and the breakdown of consolidated net financial position, used by management to monitor business performance.
RECLASSIFIED CONSOLIDATED INCOME STATEMENT
RECLASSIFIED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(*) Net cash flows from operating activities include the change in construction loans, which used euro 5 million in cash flow in the three months ended 31 March 2016 (euro 36 million at 31 March 2015).
Results for the first three months of 2016
• 2016 and medium-term guidance confirmed: the solid results for the first quarter of 2016 mark a turning point from the second half of 2015, with which Fincantieri left behind the industry's longest period of crisis, and are in line with the targets outlined in the Business Plan 2016-2020. With regards to 2016, confirmed expected growth of revenues, EBITDA margin of approximately 5% and a positive net result
• Total backlog of euro 19.2 billion. The Group has confirmed its ability to continuously convert major commercial negotiations into firm contracts: the backlog is euro 15,374 million at 31 March 2016 (euro 8,992 million at 31 March 2016), while soft backlog is approximately euro 3.8 billion (approximately euro 9.2 billion at 31 March 2015)
• The Group has confirmed its ability to deliver highly complex prototype ships within contractual deadlines: the prototype cruise ship "Koningsdam" and the cruise ship "Viking Sea" were delivered in the same week at two different shipyards to two different clients. Several naval and offshore vessels were also delivered during the quarter. The prototype cruise ship "Carnival Vista" was delivered after the end of the quarter. Overall, the deliveries in the first four months of 2016 generated cash inflows totaling some euro 1.9 billion
• Group capital structure, considering the fully consolidated subsidiaries, is substantially balanced, with equity almost entirely covering net fixed assets
• Order intake: euro 713 million (euro 85 million at 31 March 2015)
• Revenue and income: euro 1,048 million (euro 1,110 million at 31 March 2015)
• Result before extraordinary and non-recurring income and expenses: net profit of euro 5 million (net loss of euro 21 million at 31 March 2015). The Group share of this result was a net profit of euro 3 million, compared with a breakeven at 31 March 2015.
• Result for the period: net profit of euro 0.3 million (net loss of euro 27 million at 31 March 2015). The Group share of this result was a net loss of euro 2 million (net loss of euro 6 million at 31 March 2015)
• EBITDA: euro 51 million (euro 59 million at 31 March 2015). The VARD Group made a positive contribution of euro 15 million. Consolidated EBITDA margin of 4.9% (5.3% at 31 March 2015)
• Net financial position: cash inflows from deliveries in the quarter more than offset funding requirements of volume growth particularly in the cruise ship business, resulting in a net debt position of euro 363 million (net debt of euro 438 million at 31 December 2015). The guidance provided in the Business Plan 2016-2020 is confirmed, with net debt of approximately euro 0.7-0.8 billion expected at the end of 2016, with a significant improvement in subsequent years thanks to substantial cash inflows before working capital changes typical of this business
Rome, 11 May 2016 – The Board of Directors of FINCANTIERI S.p.A. ("Fincantieri" or the "Company"), chaired by Vincenzo Petrone, has examined and approved the consolidated results for the first quarter ended 31 March 2016, prepared in accordance with international financial reporting and accounting standards (IAS/IFRS) and which are unaudited.
During the Board meeting Giuseppe Bono, Fincantieri's Chief Executive Officer, said: "We have managed and developed our business with determination in the first few months of 2016, finalizing major agreements, including those with Carnival Corporation and Norwegian Cruise Line Holdings for the Regent Seven Seas Cruises brand. The backlog at 31 March demonstrates the Group's ability to continuously transform into firm contracts the major commercial negotiations that a year ago, being still in progress, were included in the soft backlog. The total backlog remains at record levels, having exceeded euro 19 billion at the end of the first quarter.
The Group has also confirmed that it is able to complete highly complex projects within contractual deadlines, with the first four months of the year seeing delivery of three cruise ships, including two prototypes, namely the "Koningsdam" for Holland America Line and the "Carnival Vista" for Carnival Cruise Lines. As testimony to this capability, the "Koningsdam" and "Viking Sea" were delivered in the same week at two different yards to two different clients. All this has been possible thanks to the cohesive way in which the Group's employees have worked, with a clear focus and awareness of our Group’s goals.
Today we are presenting a solid set of quarterly results that mark a turning point from the second half of 2015, with which Fincantieri left behind the industry's longest period of crisis, showing a clear recovery in operating and economic performance."
Bono concluded: "The important operational and economic objectives achieved in the first few months of 2016 allow us to confirm the Business Plan's targets in terms of revenue growth, increased profitability, cash generation and shareholder remuneration."
Financial highlights
|
31.12.2015 |
Economic data |
|
31.03.2016 |
31.03.2015 |
|
4,183 |
Revenue and income |
euro/million |
1,048 |
1,110 |
|
(26) |
EBITDA |
euro/million |
51 |
59 |
|
(0.6)% |
EBITDA margin (*) |
percentage |
4.9% |
5.3% |
|
(137) |
EBIT |
euro/million |
25 |
33 |
|
(3.3)% |
EBIT margin (**) |
percentage |
2.4% |
2.9% |
|
(252) |
Profit/(loss) before extraordinary and non-recurring income and expenses |
euro/million |
5 |
(21) |
|
(50) |
Extraordinary and non-recurring income and (expenses) |
euro/million |
(6) |
(8) |
|
(289) |
Profit/(loss) for the period |
euro/million |
- |
(27) |
|
(175) |
Group share of profit/(loss) for the period |
euro/million |
(2) |
(6) |
|
31.12.2015 |
Financial data |
|
31.03.2016 |
31.03.2015 |
|
1,704 |
Net invested capital |
euro/million |
1,634 |
1,473 |
|
1,266 |
Equity |
euro/million |
1,271 |
1,554 |
|
(438) |
Net financial position |
euro/million |
(363) |
81 |
|
31.12.2015 |
Other indicators |
|
31.03.2016 |
31.03.2015 |
|
10,087 |
Order intake (***) |
euro/million |
713 |
85 |
|
22,061 |
Order book (***) |
euro/million |
21,616 |
14,062 |
|
15,721 |
Order backlog (***) |
euro/million |
15,374 |
8,992 |
|
3.0 |
Soft backlog |
euro/billion |
3.8 |
9.2 |
|
161 |
Capital expenditure |
euro/million |
28 |
29 |
|
(459) |
Free cash flow |
euro/million |
77 |
25 |
|
90 |
Research and Development costs |
euro/million |
23 |
24 |
|
20,019 |
Employees at the end of the period |
number |
19,417 |
21,905 |
|
21 |
Vessels delivered (****) |
number |
6 |
7 |
(*) Ratio between EBITDA and Revenue and income
(**) Ratio between EBIT and Revenue and income
(***) Net of eliminations and consolidation adjustments
(****) Number of vessels over 40 meters long
Percentages have been calculated with reference to amounts expressed in thousands of euros.
Financial and economic results for the first three months of 2016
Revenue and income amounted to euro 1,048 million in the first three months of 2016, with year-on-year changes shown in the table below.
|
Revenue and income (euro/million) |
31.03.2016 |
31.03.2015 |
Delta |
Delta % |
|
Shipbuilding |
784 |
754 |
30 |
4.0% |
|
Offshore |
236 |
330 |
(94) |
(28.5)% |
|
Equipment, Systems and Services |
53 |
41 |
12 |
29.3% |
|
Consolidation adjustments |
(25) |
(15) |
(10) |
n.a. |
|
Total |
1,048 |
1,110 |
(62) |
(5.6)% |
|
n.a. = not applicable |
|
|
|
|
Revenue generated by foreign clients accounted for 86% of the total in the period ended 31 March 2016, basically in line with the figure of 85% reported in the corresponding period of 2015.
As already stated, the solid results for the first quarter of 2016 mark a turning point from the second half of 2015 and are in line with the targets set out in the Business Plan 2016-2020, with 2016 results forecast to see growth in revenue, an EBITDA margin of approximately 5% and a positive net result.
EBITDA was euro 51 million at 31 March 2016 (euro 59 million in the first quarter of 2015), with an EBITDA margin of 4.9% compared to 5.3% in the first quarter of 2015.
EBIT was euro 25 million in the first three months of 2016 (euro 33 million in the first three months of 2015).
Profit before extraordinary and non-recurring income and expenses was euro 5 million at 31 March 2016, improving from a net loss of euro 21 million in the first quarter of 2015. Net finance costs amounted to euro 20 million in the period (euro 42 million at 31 March 2015): the improvement is primarily attributable to the recognition of euro 10 million unrealized foreign exchange gains on translating a loan held by Vard Promar from US Dollars into Brazilian Reals (the same loan had generated euro 20 million unrealized exchange losses at 31 March 2015). The Group share of profit before extraordinary items was a net profit of euro 3 million, compared to a breakeven at 31 March 2015.
Extraordinary and non-recurring income and expenses were euro 6 million in net expenses (euro 8 million at 31 March 2015) and mainly include costs for claims under asbestos-related lawsuits (euro 4 million) and charges for business reorganization plans, mainly related to VARD (euro 2 million).
Profit for the period, reflecting the factors described above, was euro 0.3 million (net loss of euro 27 million at 31 March 2015). The Group share of this result was a net loss of euro 2 million, compared to a net loss of euro 6 million in the same period last year.
Net invested capital amounted to euro 1,634 million at 31 March 2016, down from euro 1,704 million at 31 December 2015. In detail, Net fixed assets posted an increase of euro 27 million to euro 1,480 million (euro 1,453 million at 31 December 2015), mainly reflecting a positive change in the fair value of currency derivatives classified in Other non-current assets and liabilities; Net working capital decreased by 97 million to euro 154 million (from euro 251 million at 31 December 2015), mainly reflecting the positive impact of the two cruise ships delivered in the period and the reduction in VARD Group production volumes. In addition, Other current assets and liabilities reported a positive change of euro 112 million due to the fair value measurement of currency derivatives.
The Net financial position, which excludes construction loans, was a net debt of euro 363 million (euro 438 million net debt at 31 December 2015). The change in net financial position is primarily attributable to cash inflows from cruise ship deliveries in the first quarter of 2016.
Construction loans amounted to euro 1,098 million at 31 March 2016 (euro 1,103 million at 31 December 2015), of which euro 951 million related to the subsidiary VARD (euro 983 million at 31 December 2015) and euro 147 million to the Parent Company (euro 120 million at 31 December 2015).
Group operational results and performance indicators for the first three months of 2016
Order intake and backlog
During the first three months of 2016, the Group was awarded euro 713 million in new orders, compared to euro 85 million in the corresponding period of 2015, with a book-to-bill ratio (order intake/revenue) of 0.7 (0.1 at 31 March 2015).
The Shipbuilding segment accounted for 90% of the quarter's order intake before consolidation adjustments (53% in the first quarter of 2015), the Offshore segment for 10% (35% in the first quarter of 2015) and the Equipment, Systems and Services segment for 28% (29% in the first quarter of 2015).
With reference to the Shipbuilding segment, at the end of the quarter Fincantieri reached an agreement in the cruise ships business with Norwegian Cruise Line Holdings for the construction of a second ultra-luxury cruise ship for the Regent Seven Seas Cruises brand. On 2 April 2016, after quarter end, the Company also secured an additional order from Carnival Corporation & plc for the construction of a fifth ship for the Princess Cruises brand, as an addendum to the memorandum of agreement previously signed at the end of 2015 for four ships. This fifth order has been included in the soft backlog at 31 March 2016, while the first four ships were already part of the backlog at 31 December 2015. These contracts, finalized for the construction of five cruise ships, with a total value of over euro 3 billion, mark the most important success achieved in recent years with Carnival Corporation & plc.
With reference to the naval vessels business, Fincantieri Group has been awarded, through its subsidiary Marinette Marine Corporation, a contract to build another fully funded "Freedom" class LCS (LCS 25) under an option exercised by the US Navy, with delivery scheduled for 2020. In addition, an order was placed during the quarter for an ATB (Articulated Tug Barge) for chemical/petroleum transportation, which will be built at the Sturgeon Bay shipyard.
The Offshore segment, whose global market environment remains extremely depressed following the steep decline in oil prices, started to benefit from VARD's measures to diversify into new sectors and new markets. As a result of this strategy, VARD Group won an order in the first quarter to design and build a stern trawler for HAVFISK ASA and it also signed an important agreement with PONANT for four small luxury cruise ships, to be built entirely in Romania and Norway, with support and supply of key components by Fincantieri. This agreement has been included in the soft backlog at 31 March 2016.
Over the course of the first three months of 2016, the Equipment, Systems and Services segment saw the finalization of euro 203 million in orders (compared to euro 25 million in the same period last year), mainly in connection with the Italian Navy's fleet renewal program.
The Group's total backlog amounted to euro 19.2 billion at 31 March 2016, of which euro 15.4 billion in backlog (euro 9.0 billion at 31 March 2015) and euro 3.8 billion in soft backlog (euro 9.2 billion at 31 March 2015), with the order delivery profile extending until 2026. The total backlog guarantees about 4.6 years of work in relation to the 2015 level of revenue, with most of it in the Shipbuilding segment. Before consolidation adjustments, the Shipbuilding segment accounts for 91% of backlog (78% in the first quarter of 2015), the Offshore segment for 6% (20% in the first quarter of 2015) and the Equipment, Systems and Services segment for 6% (3% in the first quarter of 2015).
The growth in backlog on the same period last year confirms the Group's ability to transform soft backlog, representing the value of existing contract options and letters of intent as well as of contracts at an advanced stage of negotiation, into firm orders.
Capital expenditure
Capital expenditure amounted to euro 28 million in the first three months of 2016, of which euro 8 million for intangible assets (including euro 5 million for development projects) and euro 20 million for property, plant and equipment.
Capital expenditure in the period mainly related to continuation of work on projects to support the growth in production volumes and improve health and safety and compliance with environmental regulations within the production sites. There was also continued investment in developing new technologies, particularly with regard to cruise ships.
Headcount
Period-end headcount decreased from 20,019 at 31 December 2015 (of whom 7,771 in Italy) to 19,417 at 31 March 2016 (of whom 7,819 in Italy). This is due to a reduction in the number of resources employed at the VARD yards, particularly in Romania as a result of cost-cutting measures in response to the contraction in workload triggered by the difficulties in the Oil&Gas market in which the subsidiary operates, and in Brazil as a result of phasing out newbuilding activities at the Vard Niterói yard.
Deliveries
The table shows the deliveries scheduled each year for vessels currently in the order book, split by business unit. With reference to 2016, the table presents deliveries completed as at 31 March 2016 in addition to the total number of deliveries scheduled for the year.
|
|
Deliveries | |||||||
|
(number) |
31.03.16 completed |
2016 |
2017 |
2018 |
2019 |
2020 |
Beyond | |
|
Cruise ships |
2 |
5 |
5 |
5 |
4 |
3 |
2 | |
|
Naval >40 m. |
1 |
10 |
10 |
3 |
5 |
2 |
9 | |
|
Offshore |
3 |
18 |
10 |
2 |
|
|
| |
Outlook for 2016
The Group confirms the guidance for 2016 outlined in the Business Plan 2016-2020, i.e. revenue growth of 4-6%, an EBITDA margin of around 5% and a positive net result.
As for the Shipbuilding segment, the solid results for the first quarter of 2016 and the ability demonstrated once again in the first few months of this year to manage a large number of deliveries of highly complex prototype ships to different clients at different production sites, support the expectation of margins recovery in the remainder of the year from the levels seen in the final quarters of 2015. Furthermore, to cope with the significant increase in volumes expected over the Business Plan period, particularly within the cruise business, the Company is engaged in developing important production synergies with VARD by using the Romanian shipyard in Tulcea to support the Italian production network.
As for the Offshore segment, 2016 is still characterized by a widespread and protracted market crisis entailing problems for all industry players, with a significant number of OSV owners embarking on restructuring processes with a consequent rise in counterparty risk. Furthermore, the international industry context is particularly challenging, with persistent political and economic troubles in Brazil and international geo-political issues limiting the opportunities to access certain strategic markets. To confront this market situation, the subsidiary VARD is carrying on the actions already successfully initiated to diversify and reorganize itself and is now working with clients and financial institutions to secure the current order book.
The Equipment, Systems and Services segment is expected not only to see further growth in volumes in 2016, thanks to the Italian Navy's fleet renewal program and the Company's strategic actions to diversify and in-source key systems and components, but also to confirm the positive margins recorded in the previous year.
Operational review by segment
SHIPBUILDING
|
31.12.2015 |
(euro/million) |
31.03.2016 |
31.03.2015 |
|
2,847 |
Revenue and income (*) |
784 |
754 |
|
(23) |
EBITDA (*) |
36 |
46 |
|
(0.8)% |
EBITDA margin (*) (**) |
4.7% |
6.1% |
|
9,262 |
Order intake (*) |
639 |
45 |
|
18,540 |
Order book (*) |
18,402 |
10,363 |
|
14,067 |
Order backlog (*) |
13,976 |
6,982 |
|
112 |
Capital expenditure |
21 |
20 |
|
9 |
Vessels delivered (number) (***) |
3 |
2 |
|
|
(*) Before eliminations between operating segments (**) Ratio between segment EBITDA and Revenue and income (***) Vessels over 40 meters long |
|
|
Revenue and income
Revenue from the Shipbuilding segment amounted to euro 784 million at 31 March 2016, up 4.0% from euro 754 million in the first quarter of 2015, and comprised euro 515 million from the cruise ships business (euro 430 million at 31 March 2015) and euro 248 million from the naval vessels business (euro 283 million at 31 March 2015). There was an increase in cruise ship production volumes in the period compared with the first three months of 2015, with 11 ships under construction at the Group's Italian yards (of which 2 delivered in the period). The decrease in naval revenues was due to the lower volume of activity in Italy pending full start of work on the Italian Navy's fleet renewal program. Revenue from other activities decreased to euro 21 million from euro 41 million at 31 March 2015, mainly reflecting a lower contribution from repairs and conversions.
EBITDA
The solid results for the first quarter of 2016mark a turning point from the second half of 2015, heavily affected by significant extra costs related to the ships delivered in 2016. These results and the ability demonstrated once again in the first few months of 2016 to manage a large number of deliveries of highly complex prototype ships support the expectations consolidated margins in the remainder of the year. The segment's EBITDA was euro 36 million at 31 March 2016 (euro 46 million at 31 March 2015), with a margin of 4.7% (6.1% at 31 March 2015).
Deliveries
A total of 3 ships were delivered in the period:
• "Viking Sea", the second of a series of six cruise ships for Viking Ocean Cruises, was delivered at the shipyard in Ancona;
• "Koningsdam", a prototype ship for Holland America Line, a brand of the Carnival Group, the world's largest cruise operator, was delivered at the shipyard in Marghera;
• "Itarus", a semisubmersible floating platform for RosRAO, Russia's federal state unitary enterprise for radioactive waste management, was delivered at the shipyard in Muggiano (La Spezia).
OFFSHORE
|
31.12.2015 |
(euro/million) |
31.03.2016 |
31.03.2015 |
|
1,199 |
Revenue and income (*) |
236 |
330 |
|
(3) |
EBITDA (*) |
14 |
16 |
|
(0.2)% |
EBITDA margin (*) (**) |
6.0% |
4.8% |
|
402 |
Order intake (*) |
68 |
30 |
|
2,729 |
Order book (*) |
2,414 |
3,243 |
|
1,143 |
Order backlog (*) |
900 |
1,790 |
|
31 |
Capital expenditure |
4 |
7 |
|
12 |
Vessels delivered (number) |
3 |
5 |
|
|
(*) Before eliminations between operating segments (**) Ratio between segment EBITDA and Revenue and income |
|
|
Revenue and income
Revenue from the Offshore segment amounted to euro 236 million at 31 March 2016, down 28.5% from euro 330 million in the first three months of 2015, primarily due to the reduction in activities at VARD's European and Brazilian shipyards, particularly at the Niterói yard where newbuilding activity is being phased out as the vessel currently under construction reaches completion, and to the negative impact of changes in the Norwegian krone/Euro exchange rate (euro 21 million).
EBITDA
The Offshore segment reported euro 14 million in EBITDA at 31 March 2016, compared to euro 16 million in the first three months of 2015, with a margin of 6.0% versus 4.8% in the first three months of 2015. The period under review saw a margins recovery in the VARD Group's Brazilian shipyards with the gradual completion of outfitting activities of the vessels under construction at Promar and Niterói yards. The profitability of the Group's European yards continued to be affected by the drop in offshore market order volumes since the fourth quarter of 2014. It is recalled in this context that VARD has embarked on a series of short and medium-term actions which involve not only implementing programs to reorganize its operations, with the aim of achieving a structural reduction in the cost base, but also stepping up actions to develop synergies with the Italian cruise ship business.
Deliveries
A total of 3 vessels were delivered in the period:
• "Barbosa Lima Sobrinho", the first LPG carrier for Transpetro to be entirely built at Vard Promar shipyard (Brazil);
• "MMA Brewster", a PSV (Platform Supply Vessel), delivered to Mermaid Marine Australia Offshore at Vard Vung Tau shipyard (Vietnam);
• "Bourbon Artic", an AHTS (Anchor Handling Tug Supply Vessel), delivered to Bourbon at Vard Brattvag shipyard (Norway).
EQUIPMENT, SYSTEMS AND SERVICES
|
31.12.2015 |
(euro/million) |
31.03.2016 |
31.03.2015 |
|
226 |
Revenue and income (*) |
53 |
41 |
|
31 |
EBITDA (*) |
8 |
4 |
|
13.8% |
EBITDA margin (*) (**) |
14.7% |
10.3% |
|
639 |
Order intake (*) |
203 |
25 |
|
1,181 |
Order book (*) |
1,354 |
674 |
|
732 |
Order backlog (*) |
881 |
284 |
|
5 |
Capital expenditure |
- |
1 |
|
44 |
Engines produced in workshops (number) |
5 |
9 |
|
|
(*) Before eliminations between operating segments (**) Ratio between segment EBITDA and Revenue and income |
|
|
Revenue and income
Revenue from the Equipment, Systems and Services segment amounted to euro 53 million at 31 March 2016, an increase of 29.3% on the prior year corresponding figure of euro 41 million. This improvement was primarily due to higher volumes of both after-sales services for naval vessels and sales of ship automation systems, in line with the development prospects for this business.
EBITDA
The segment's EBITDA amounted to euro 8 million at 31 March 2016 (euro 4 million at 31 March 2015), with the margin improving to 14.7% from 10.3% in the first three months of 2015, mainly thanks to a higher contribution from sales of marine systems and equipment.
OTHER ACTIVITIES
|
31.12.2015 |
(euro/million) |
31.03.2016 |
31.03.2015 |
|
- |
Revenue and income |
- |
- |
|
(31) |
EBITDA |
(7) |
(7) |
|
n.a. |
EBITDA margin |
n.a. |
n.a. |
|
13 |
Capital expenditure |
3 |
1 |
|
|
n.a. not applicable |
|
|
Other activities primarily refer to the costs incurred by corporate headquarters for directing, controlling and coordinating the business, not allocated to other operating segments.
Other information
Other significant events in the period
On 2 March 2016, the Group signed an exclusive partnership agreement with a major Chinese shipyard for the development of technical skills, project management and logistics procedures in the field of ship repairs and conversions.
On 21 March 2016, Mrs. Anna Molinotti tendered her resignation to Fincantieri as a member of the Board of Directors and of the Compensation Committee.
Key events after 31 March 2016
On 18 April 2016, the first feed barge for the aquaculture market was delivered to Marine Harvest, the sector's largest player, at the Vard Aukra shipyard in Norway.
On 20 April 2016, an Artic Anchor Handling Tug Supply (AHTS) vessel was delivered to DOF at Vard Niterói shipyard in Brazil.
On 29 April 2016, "Carnival Vista", a prototype ship and new flagship of the fleet of Carnival Cruise Line, a brand of the Carnival Group, the world's largest cruise operator, was delivered at Fincantieri's shipyard in Monfalcone.
On 9 May 2016, VARD has communicated that its client Harkand Group has entered into administration. VARD is currently evaluating its position towards Harkand.
On 11 May 2016 VARD has announced a contract worth about usd 300 million with Topaz Energy and Marine for the construction of 15 module carrier vessels.
* * *
The present document must be read together with the separate and consolidated annual financial reports of Fincantieri S.p.A. at 31 December 2015, available on the Company's website (www.fincantieri.it) in the section "Investor Relations – Financial Statements".
The Manager Responsible for Preparing Financial Reports, Carlo Gainelli, declares, pursuant to paragraph 2 of article 154-bis of Italian Legislative Decree no. 58 dated 24 February 1998, that the accounting information contained in this document corresponds to the underlying accounting books and records.
* * *
The present press release is made available to the public at the Company’s registered office, on the Company’s website (www.fincantieri.com) in the section “Investor Relations - Financial Statements” and on the website of the authorized storage mechanism “NIS-Storage” (www.emarketstorage.com), also as a document.
* * *
DISCLAIMER
Forecast data and information must be regarded as forward-looking statements and therefore, not being based on simple historical facts, contain, by their nature, an element of risk and uncertainty because they also depend on the occurrence of future events and developments outside the Company's control. Actual results could therefore be materially different from those expressed in forward-looking statements. Forward-looking statements refer to the information available at the date of their publication; Fincantieri S.p.A. reserves the right to communicate any changes in its forward-looking data and information within the time and in the manner required by law.
* * *
The financial results for the first three months of 2016 will be presented to the financial community during a conference call scheduled for Thursday 12 May 2016 at 9:00 CET.
To take part in the conference call, it is necessary to call one of the following numbers:
Italy +39 028020911
United Kingdom +44 1212818004
United States +1 7187058796
Hong Kong +852 58080984 then press *0
The slide presentation will be available 10 minutes before the start of the conference in the Investor Relations section of the website www.fincantieri.com.
* * *
Fincantieri is one of the world's largest shipbuilding groups and number one for diversification and innovation. It is leader in cruise ship design and construction and a reference player in all the shipbuilding industry's high-tech sectors, from naval to offshore vessels, from highly complex special vessels and ferries to mega-yachts, as well as in ship repairs and conversions, the production of marine systems and equipment and the provision of after-sales services.
Headquartered in Trieste (Italy), the Group has built more than 7,000 vessels in its over 230 years of maritime history. With around 19,500 employees, of whom more than 7,800 in Italy, 21 shipyards in 4 continents, Fincantieri is now the leading Western shipbuilder. Its client portfolio includes the world's largest cruise operators, the Italian Navy and the U.S. Navy, as well as several other foreign navies, and it is partner to some of the leading European defense companies in connection with supranational programs.
www.fincantieri.com
* * *
APPENDICES
Presented below are the reclassified consolidated versions of the income statement, statement of financial position and statement of cash flows and the breakdown of consolidated net financial position, used by management to monitor business performance.
RECLASSIFIED CONSOLIDATED INCOME STATEMENT
|
31.12.2015 |
(euro/million) |
31.03.2016 |
31.03.2015 |
|
4,183 |
Revenue and income |
1,048 |
1,110 |
|
(3,337) |
Materials, services and other costs |
(769) |
(818) |
|
(865) |
Personnel costs |
(223) |
(237) |
|
(7) |
Provisions |
(5) |
4 |
|
(26) |
EBITDA |
51 |
59 |
|
(0.6)% |
EBITDA margin |
4.9% |
5.3% |
|
(111) |
Depreciation, amortization and impairment |
(26) |
(26) |
|
(137) |
EBIT |
25 |
33 |
|
(3.3)% |
EBIT margin |
2.4% |
2.9% |
|
(135) |
Finance income/(costs)* |
(20) |
(42) |
|
(3) |
Income/(expense) from investments |
- |
- |
|
23 |
Income taxes |
- |
(12) |
|
(252) |
Profit/(loss) before extraordinary and non-recurring income and expenses |
5 |
(21) |
|
(141) |
of which attributable to Group |
3 |
- |
|
(50) |
Extraordinary and non-recurring income and (expenses) |
(6) |
(8) |
|
13 |
Tax effect of extraordinary and non-recurring income and expenses |
1 |
2 |
|
(289) |
Profit/(loss) for the period |
- |
(27) |
|
(175) |
of which attributable to Group |
(2) |
(6) |
*Of which euro 9 million in finance costs for construction loans at 31 March 2016 (euro 9 million at 31 March 2015).
RECLASSIFIED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
|
31.03.2015 |
(euro/million) |
31.03.2016 |
31.12.2015 |
|
533 |
Intangible assets |
522 |
518 |
|
970 |
Property, plant and equipment |
974 |
974 |
|
63 |
Investments |
63 |
62 |
|
(42) |
Other non-current assets and liabilities |
(23) |
(44) |
|
(61) |
Employee benefits |
(56) |
(57) |
|
1,463 |
Net fixed capital |
1,480 |
1,453 |
|
439 |
Inventories and advances |
428 |
405 |
|
1,217 |
Construction contracts and client advances |
1,526 |
1,876 |
|
(859) |
Construction loans |
(1,098) |
(1,103) |
|
539 |
Trade receivables |
597 |
560 |
|
(1,022) |
Trade payables |
(1,108) |
(1,179) |
|
(118) |
Provisions for risks and charges |
(107) |
(112) |
|
(186) |
Other current assets and liabilities |
(84) |
(196) |
|
10 |
Net working capital |
154 |
251 |
|
1,473 |
Net invested capital |
1,634 |
1,704 |
|
|
|
|
|
|
863 |
Share capital |
863 |
863 |
|
465 |
Reserves and retained earnings attributable to the Group |
283 |
274 |
|
226 |
Non-controlling interests in equity |
125 |
129 |
|
1,554 |
Equity |
1,271 |
1,266 |
|
(81) |
Net financial position |
363 |
438 |
|
1,473 |
Sources of funding |
1,634 |
1,704 |
RECLASSIFIED CONSOLIDATED STATEMENT OF CASH FLOWS
|
31.12.2015 |
(euro/million) |
31.03.2016 |
31.03.2015 |
|
(287) |
Net cash flows from operating activities (*) |
105 |
54 |
|
(172) |
Net cash flows from investing activities |
(28) |
(29) |
|
167 |
Net cash flows from financing activities |
(1) |
56 |
|
(292) |
Net cash flows for the period |
76 |
81 |
|
|
|
|
|
|
552 |
Cash and cash equivalents at beginning of period |
260 |
552 |
|
|
Effects of currency translation difference on opening cash and cash equivalents |
1 |
10 |
|
260 |
Cash and cash equivalents at end of period |
337 |
643 |
|
|
|
|
|
|
31.12.2015 |
(Euro/million) |
31.03.2016 |
31.03.2015 |
|
(459) |
Free cash flow |
77 |
25 |
CONSOLIDATED NET FINANCIAL POSITION
|
31.03.2015 |
(euro/million) |
31.03.2016 |
31.12.2015 |
|
643 |
Cash and cash equivalents |
337 |
260 |
|
62 |
Current financial receivables |
52 |
53 |
|
(51) |
Current bank debt |
(203) |
(187) |
|
(50) |
Current portion of bank loans and credit facilities |
(60) |
(63) |
|
(2) |
Other current financial liabilities |
(13) |
(13) |
|
(103) |
Current debt |
(276) |
(263) |
|
602 |
Net current cash/(debt) |
113 |
50 |
|
92 |
Non-current financial receivables |
115 |
113 |
|
(303) |
Non-current bank debt |
(291) |
(299) |
|
(297) |
Bonds |
(298) |
(298) |
|
(13) |
Other non-current financial liabilities |
(2) |
(4) |
|
(613) |
Non-current debt |
(591) |
(601) |
|
81 |
Net financial position |
(363) |
(438) |