Presentazione 1H 2021

• Confirmed guidance on FY 2021 with revenues expected to reach more than +25% YoY and EBITDA margin at 7%, despite increasing commodity prices

• Total backlog with 111 units at €37 bn, 7.1x 2020 revenues: backlog with 93 units at €27.6 bn and soft backlog at €9.4 bn

• Record-high production volumes (with 8.4 mln production hours at Italian sites, up ~50% YoY) in order to execute the hefty backlog and stick to the planned delivery schedule

• Corporate vaccination program successfully launched in June at Italian yards, addressing both our employees and subcontractors

• 7 ships successfully delivered from 6 different shipyards and 6 cruise ships to be handed over in the second half of the year (out of which 3 delivered in July)

• Awards: Second FFG-62 frigate for the US Navy; prime contractor of the program for 6 frigates for the Indonesian Navy; new MSC cruise terminal at PortMiami

^{(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}

• Stable order intake at €1.8 bn, thanks to the positive impact of ESS

• Soft backlog keeps momentum thanks to recent achievements in defence – i.e. Indonesian program

• Total backlog represents 7.1x 2020 revenue

^{(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 27.7% YoY thanks to record-high production volumes in the semester (8.4 mln production hours)

 Shipbuilding up 32.5% YoY thanks to the programmed production ramp-up

 Offshore & Specialized Vessels down only 3.5% YoY

 Equipment, Systems & Services 22.8% YoY mainly attributable to the complete accommodation business


88% of revenues from international clients

^{(1) Breakdown calculated before eliminations}

EBITDA margin at 7.2% excluding pass-through activities mainly thanks to the positive contribution from Shipbuilding despite the impact from increased steel prices

 Shipbuilding EBITDA is up €91 mln YoY with margin at 7.7%

 Offshore EBITDA is positive (up €5 mln YoY) thanks to the effective restructuring strategy implemented

 ESS EBITDA is up €8 mln YoY despite the effect of the Ship repair and conversion business

^{(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 mainly driven by higher production volumes and improved operating margin

 Offshore and Specialized Vessels: increased operating profitability despite lower production volumes

 ESS: balanced effect brought about by higher production volumes and better marginality

• Adjusted net profit at €49 mln (€49 mln excluding minorities)

• Net profit at €7 mln (€6 mln excluding minorities)

^{(1) Net result before extraordinary and non-recurring items}

•  Scale up of European and US shipyards in order to compress lead times and improve efficiency, including completion of the upgrade program at Marghera shipyard and revamping of US shipyards before the start of the construction phase of the FFG-62 program

• Net debt dynamics are consistent with production volumes and delivery schedule

• Net debt impacted by the postponement of cruise ships expected installments (€423 mln)  

• 6 cruise ships to be delivered in 2H 2021 (3 already delivered in July)

^{(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}