Fincantieri

Investor Presentation • May 12, 2017

Safe Harbor Statement

This Presentation contains certain forward-looking statements. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes," "expects," "predicts," "intends," "projects," "plans," "estimates," "aims," "foresees," "anticipates," "targets," and similar expressions. The forward-looking statements contained in this Presentation, including assumptions, opinions and views of the Company or cited from third party sources, are solely opinions and forecasts reflecting current views with respect to future events and plans, estimates, projections and expectations which are uncertain and subject to risks. Market data used in this Presentation not attributed to a specific source are estimates of the Company and have not been independently verified. These statements are based on certain assumptions that, although reasonable at this time, may prove to be erroneous. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. If certain risks and uncertainties materialize, or if certain underlying assumptions prove incorrect, Fincantieri may not be able to achieve its financial targets and strategic objectives. A multitude of factors which are in some cases beyond the Company's control can cause actual events to differ significantly from any anticipated development. Forward-looking statements contained in this Presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. No one undertakes any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Market data used in this Presentation not attributed to a specific source are estimates of the Company and have not been independently verified. Forward-looking statements speak only as of the date of this Presentation and are subject to change without notice. No representations or warranties, express or implied, are given as to the achievement or reasonableness of, and no reliance should be placed on, any forward-looking statements, including (but not limited to) any projections, estimates, forecasts or targets contained herein.

Fincantieri does not undertake to provide any additional information or to remedy any omissions in or from this Presentation. Fincantieri does not intend, and does not assume any obligation, to update industry information or forward-looking statements set forth in this Presentation. This presentation does not constitute a recommendation regarding the securities of the Company.

Declaration of the Manager responsible for preparing financial reports

Pursuant to art. 154-BIS, par. 2, of the Unified Financial Act of February 24, 1998, the executive in charge of preparing the corporate accounting documents at Fincantieri, Carlo Gainelli, declares that the accounting information contained herein correspond to document results, books and accounting records.

Q1 2017 Key Messages

• Q1 2017 results in line with Business Plan 2016-2020 targets: revenues up 5.3% vs Q1 2016 and EBITDA margin at 6.0% vs 4.9% Q1 2016; Business Plan targets confirmed
• Total backlog(1) at € 26.6 bln covering ~6 years of work if compared to 2016 revenues:
• − Backlog at € 20.8 bln (103 ships) up from € 18.2 bln in FY 2016 thanks to the conversion of soft backlog into firm orders
• − Soft backlog(2) at € 5.8 bln, at same high levels as in FY 2016 thanks to new commercial opportunities
• Extraordinary commercial success with the signing, in the first months of the year, of orders and agreements for a total of 19 cruise ships (including options) to be built at the Italian shipyards, Vard shipyards and through the joint venture in China:
• − MoA for 2 cruise ships for Carnival brands Princess Cruises and Holland America Line;
• − Order for 4 cruise ships (with options for additional 2) for Norwegian Cruise Line brand;
• − First binding agreements with CSSC and Carnival for the construction in China of 2 ships (with options for additional 4);
• − LOI signed by Vard for an expedition cruise vessel;
• − MoA, signed in April, for 2 cruise ships (with option for additional 2) for Viking Ocean Cruises
• Sound operating performance with the delivery of three cruise ships from three different shipyards during the first months of the year ("Viking Sky", "Majestic Princess" and "Silver Muse" )
• Significant progress in the acquisition of STX France with the signing of the Heads of Terms with the France State in April: the agreement is a key step for the finalization of the final agreements among future shareholders and also includes the guidelines of the business plan prepared by Fincantieri for STX France. Fincantieri is working with the Court of Seoul in order to finalize the acquisition of STX France as soon as possible

Q1 2017 main orders

	Vessel		Client	Delivery
Shipbuilding	TBU	4 cruise ships	Norwegian Cruise Line	2022-2025
Offshore		1 krill fishing vessel	Aker BioMarine	2018

Q1 2017 main deliveries

	Vessel		Client	Shipyard
Shipbuilding		Cruise ship "Viking Sky"	Viking Ocean Cruises	Ancona
		Cruise ship "Majestic Princess"	Princess Cruises (Carnival Corporation)	Monfalcone
	TBU	OSCV "Skandi Buzios"	Techdof	Vard Søviknes
Offshore		OSCV "Far Superior"	Farstad	Vard Vung Tau

Order intake and backlog – by segment

• (1) Sum of backlog and soft backlog
• (2) 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
• (3) For comparison purposes, Q1 2016 figures are restated following the redefinition of operating segments. Following the operational reorganization carried out in November 2016, the repair & conversion services, cabins & public areas business, as well as integrated systems business, all previously included in the Shipbuilding segment, have been relocated to the Equipment, Systems & Services segment starting from FY 2016 results.

Backlog deployment – by segment and end market

• 103 ships in backlog at March 31, 2017
• Cruise: 22 vessels
• − Deliveries up to 2025, stretching to 2027 in case of confirmation of the option for 2 ships for Norwegian Cruise Line
• Naval: 38 vessels
• − Deliveries up to 2026, with 10 units scheduled after 2021
• Offshore(3): 43 vessels
• − 20 module carrier vessels in backlog, scheduled for delivery in 2017-2018
• − 6 expedition cruise vessels in backlog, without considering the LOI for an additional vessel signed by

(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) Ships with length > 40 m

(3) Offshore business generally has shorter production times and, as a consequence, shorter backlog and quicker order turnaround than Cruise and Naval

Revenues and EBITDA(1) – by segment

(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) wages guarantee fund – Cassa Integrazione Guadagni , (viii) expenses for corporate restructuring, (ix) accruals to provision and cost of legal services for asbestos claims, (x) other non recurring items

(2) Breakdown calculated on total revenues before eliminations

(3) For comparison purposes, Q1 2016 figures are restated following the redefinition of operating segments. Following the operational reorganization carried out in November 2016, the repair & conversion services, cabins & public areas business, as well as integrated systems business, all previously included in the Shipbuilding segment, have been relocated to the Equipment, Systems & Services segment starting from FY 2016 results. (4) Other costs

Shipbuilding

Comments

• Revenues: € 857 mln, up 13% vs Q1 2016
• − Growth of volumes in cruise reaching 51% of total Group revenues, with 13 units under construction vs 11 in Q1 2016
• EBITDA: € 55 mln, margin at 6.4%
• − Good performance of cruise projects, with 3 cruise ships delivered on time during the first months of 2017
• Capex: € 19 mln
• Orders: € 3,301 mln vs € 620 mln in Q1 2016
• − 4 cruise ships for Norwegian Cruise Line
• Backlog: € 18,859 mln vs € 13,960 mln in Q1 2016
• Deliveries: 2 ships
• − "Viking Sky" for Viking Ocean Cruises
• − "Majestic Princess" for Princess Cruises

(1) For comparison purposes, Q1 2016 figures are restated following the redefinition of operating segments. Following the operational reorganization carried out in November 2016, the repair & conversion services, cabins & public areas business, as well as integrated systems business, all previously included in the Shipbuilding segment, have been relocated to the Equipment, Systems & Services segment starting from FY 2016 results.

Offshore

Equipment, Systems and Services

(1) For comparison purposes, Q1 2016 figures are restated following the redefinition of operating segments. Following the operational reorganization carried out in November 2016, the repair & conversion services, cabins & public areas business, as well as integrated systems business, all previously included in the Shipbuilding segment, have been relocated to the Equipment, Systems & Services segment starting from FY 2016 results.

Net working capital and net debt(1)

Breakdown by main components Comments

€ mln		FY 2016	Q1 2017	• Net working capital and net debt
				dynamics related to the increase of the
	Inventories and advances to suppliers			production volumes in cruise and the
				cash-in of the final installments for the
	Work in progress net of advances from customers	590	604	2 cruise ships delivered during the
		604	1,108	quarter
	Trade receivables			• Construction loans at € 744 mln of
	Other current assets and	1,123	573	which € 594 mln related to VARD and
	liabilities	59	92	€ 150 mln related to Fincantieri
	Construction loans	(678)	(744)	• Most of the Group's debt is related to
	Trade payables			the financing of current assets
		(1,307)	(1,376)	associated with cruise ships
	Provisions for risks & charges	(126)	(120)	construction and therefore consistent

Net working capital	265	137
Net debt	615	540

(1) Construction loans are committed working capital financing facilities, treated as part of Net working capital, not in Net financial position, as they are not general purpose loans and can be a source of financing only in connection with ship contracts

• dynamics related to the increase of the production volumes in cruise and the cash-in of the final installments for the 2 cruise ships delivered during the quarter
• Construction loans at € 744 mln of which € 594 mln related to VARD and € 150 mln related to Fincantieri
• Most of the Group's debt is related to the financing of current assets associated with cruise ships construction and therefore consistent with net working capital changes

Outlook

• 2017 results expected to be in line with the Business Plan

Shipbuilding

• Further volume growth and margin improvement thanks to
• ‒ the start of construction works for cruise sister ships acquired after crisis at higher prices
• ‒ full swing production of the Italian Navy's fleet renewal program and of design activities related to the Qatari order
• Continuing effort to increase profitability thanks also to production synergies with VARD

2017 Guidance

Offshore

• Expected growth of volumes related to the diversification strategy implemented by Vard
• Oil&Gas sector crisis persists, with possible impacts on backlog

Equipment, Systems & Services

• Deployment of the significant backlog related to the Italian Navy's fleet renewal program
• Continuous focus on the insourcing of high value added activities, in order to strengthen the focus on core products and further develop after sales activities

Business Plan Guidance

• Guidance 2018 confirmed
• ‒ Revenue increase 16-23% vs. 2016
• ‒ EBITDA margin approx. 6-7%

• ‒ Net debt at approx. € 0.4-0.6 bln*

• Guidance 2020 confirmed

• ‒ Revenue increase 16-21% vs. 2018
• ‒ EBITDA margin approx. 7-8%
• ‒ Net debt at approx. € 0.1-0.3 bln*

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Investor Relations contacts

Investor Relations Team

Cristiano Pasanisi - VP Corporate Finance & Investor Relations +39 040 319 2375 cristiano.pasanisi@fincantieri.it

Tijana Obradovic +39 040 319 2409 tijana.obradovic@fincantieri.it

Silvia Ponso +39 040 319 2371 silvia.ponso@fincantieri.it

Alberta Michelazzi +39 040 319 2497 alberta.michelazzi@fincantieri.it

Institutional Investors

investor.relations@fincantieri.it

Individual Shareholders

azionisti.individuali@fincantieri.it

www.fincantieri.com

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