Danieli & C — Interim / Quarterly Report 2017

Oct 4, 2017

DANIELI FINANCIAL TEAM FINANCIAL STATEMENT YEAR 2017

Anna Mareschi Danieli Vice President, Finance

Andrea Deana Vice President, Accounting

Michele Marinutti Vice President, Controlling

Millions of Euro	30/06/2017	30/06/2016	VARIATION
Revenues	2.490,9	2.493,4	0%
Ebitda	202,5	211,4	-4%
Adjusted Ebitda	225,0	211,4	6%
Ebit	70,3	90,2	-22%
Net profit attributable to the Group	50,5	88,3	-43%
Group shareholders' equity	1.817,8	1.777,2	2%
Net financial position	912,5	908,2	0%
Number of employees	8.959	9.419	-5%
Group order book	2.532	2.814	-11%
(of which Steel Making)	375	162 0	131%

FINANCIAL TEAM YEAR ENDED JUNE 30th, 2017

FINANCIAL TEAM SALES

FINANCIAL TEAM ADJUSTED EBITDA AND EBITDA

Millions of Euro	30/06/2017	30/06/2016	VARIATION
Plant making	153,9	149,3	+3%
Steel making	71,1	62,1	+14%
Total	225,0	211,4	+6%
Millions of Euro	30/06/2017	30/06/2016	VARIATION
Plant making	137,1	149,3	-8%
Steel making	65,4	62,1	+5%
Total	202,5	211,4	-4%

EBITDA

FINANCIAL TEAM EBIT

Millions of Euro	30/06/2017	30/06/2016	VARIATION
Plant making	57,1	70,9	-19%
Steel making	13,2	19,3	-32%
Total	70,3	90,2	-22%

FINANCIAL TEAM NET PROFIT FOR THE PERIOD ATTRIBUTABLE TO THE GROUP

Millions of Euro	30/06/2017	30/06/2016	VARIATION
Plant making	41,3	76,6	-45%
Steel making	9,2	11,7	-21%
Total	50,5	88,3	-42%

FINANCIAL TEAM SUSTAINABILITY REPORT

GLOBAL VALUE ADDED

Millions of Euro 30/06/2017 30/06/2016

A. Value of production 2.490,9 2.493,4

B. Intermediate costs of production (-1.986,4) (1.952,0)

(A - B) Core global value added 504,5 541,4

C. Ancillary components (0,5) (23,0)

Global value added (A - B + C) 505,0 564,4

FINANCIAL TEAM SUSTAINABILITY REPORT

DISTRIBUTION OF GLOBAL VALUE ADDED

Millions of Euro	30/06/2017	%	30/06/2016	%
A. Personnel	425,1	84,2%	443,8	78,6%
B. Public Administration	20,9	4,1%	23,5	4,2%
C. Venture capital	8,2	1,6%	8,2	1,5%
D. Third parties	(0,4)	(0,1%)	(0,3)	(0,1%)
E. Company reinvestment	42,3	8,4%	80,1	14,2%
F. Lenders	7,7	1,5%	7,7	1,4%
G. Donations and sponsorships	1,2	0,2%	1,4	0,2%
Global value added	505,0	100,0%	564,4	100%

M i l l i o n s o f E u r o

FINANCIAL TEAM NET FINANCIAL POSITION

Millions of Euro	30/06/2017	30/06/2016	Variation
Securities and other financial receivables	557,1	456,1	101,0
Cash at banks	1.078,5	1.389,5	(311,0)
A. TOTAL CURRENT FINANCIAL ASSETS	1.635,6	1.845,6	(210,0)
B. CURRENT FINANCIAL LIABILITIES	(564,1)	(527,4)	(37,6)
C. NON-CURRENT FINANCIAL LIABILITIES	(159,0)	(410,0)	(251,0)
Positive net financial position (A) - (B) - (C)	912,5	908,2	4,3

FINANCIAL TEAM NET FINANCIAL POSITION

1 . 8 1

M i l l i o n s o

f E u r o

FINANCIAL TEAM GROUP NET EQUITY

Millions of Euro

FINANCIAL TEAM EQUITY TREND

How

much What How

FINANCIAL TEAM DIFFERENT INTERPRETATION

Productive plants Shippings Sites Customers

Productive plants

¹⁰⁰ Airbus A380

50,000 t Equipment and machines

Shippings

70,000,000 Kilometers

Sites

1200 Employees from 47 different countries

137 Jobsites

83 New plants

55 New customers

Customers

Research and development

Training Digitalization

more than 240,000 Hours

FINANCIAL TEAM INVESTMENTS

Research and development

more than 1300 Specialized training courses

more than 4000 Employees involved

FINANCIAL TEAM INVESTMENTS

Digitalization

Research and development

Training

Digitalization

FINANCIAL TEAM INVESTMENTS

Research and development

Training

Research and development

Training Performance indicator

BUSINESS SCORECARD
Product Line			Period Type	ACT 14/15	ACT 15/16	ACT 16/17	Target	06/16	07/16	¢
1 - FINANCIAL PERSPECTIVE
	% Operating Income	MBO	Q	2.0%	2.8%	5.4%	5.0%	2.8%	$-8.8%$	٩
	Kevenues	KPI	Q	311.103	264,910	210,248	240,000	264,910	34,046	з
P&L	Operating Income	KPI	٥	6.263	7,432	11,377	12,000	7,432	$-3,008$	ś
	% Inefficiencies (MMC + VARIANCES) on Full A	KPI	Q	9.7%	10.7%	9.4%	5.0%	10.7%	14.9%	1
	Order Intake	KPI	М	200,171	166,014	247,554	230,000	٥	4,658	f
	% Gross Margin Intake	KPI	м	38.5%	10.2%	9.2%	13.0%	7,669,000.0	20.7%	7
SALES	03.1 KIO Offer Status	KPI	м	25.0%	20.0%	61.6%	90.0%		16.7%	5
	Jet RIO Upload	KP1	м	11.1%	19.6%	52.9%	90.0%			4
	Velocity (CII- - JE12)	KPI	м	76.2%	75.0%	65.0%	90.0%		50.0%
	% 10 Incidence on CostA I + FDI	KPI	M	4.5%	4.7%	4.5%	4.4%	4.7%	4.1%	á
	% Modification	PI	М	$0.0\%$	5.5%	3.1%	5.0%	3.1%	3.1%	ź
$TO + TT$	% NCR	PI	м	0.5%	0.6%	0.6%	0.5%	0.5%	0.5%	I
	% Effectiveness (costs)	PI	м	197.1%	104.2%	113.4%	90.0%	114.5%	125.1%	9
	% Efficiency (hours)	PI	м	92.3%	98.5%	95.4%	90.0%	105.8%	124.3%	8
	Operating Income x Pax	KPI	Υ	o	29	47	50	29
PRODUCTIVITY	Revenues x Pax	KPI	Υ	۰	1,047	872	1,000	1,047
3 - CUSTOMER PERSPECTIVE
	O1D 5530	MBO	М	8.4%	31.1%	14.0%	90.0%	22.9%	0.5%	3
	010 4060	PI	м	28.1%	33.9%	30.5%	90.0%	19.9%	42.9%	3
OTD	010 2040	PI	м	78.2%	77.6%	83.9%	90.0%	73.9%	83.0%	9
	010 2030	PI	м	78.4%	81.7%	86.9%	90.0%	79.9%	84.7%	9

Digitalization

PROFIT PRODUCTIVITY EFFICIENCY ON TIME QUALITY ORDER INTAKE

Research and development

Training

Digitalization

On line project control

COSTS TIME RISK MANAGEMENT

Research and development

Training

Digitalization

:metyou

Direction Execution

FINANCIAL TEAM RESULTS

More than 200 projects

12 business units

More than 300 people involve d

100 improvement targets

Results

HOSHIN KANRI projects

Customer satisfaction Quality Quickness Team spirit

FINANCIAL TEAM RESULTS