Fincantieri — Investor Presentation 2018

May 8, 2018

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 2018 Key Messages

• Q1 2018 results in line with Business Plan 2018-2022 targets: revenues up 11% vs Q1 2017 and EBITDA margin at 7.3% vs 6.0% in Q1 2017 (+22%)
• Total backlog(1) at € 27.7 bln covering ~5.5 years of work if compared to 2017 revenues:
• − Backlog at € 21.8 bln (104 ships) up from € 20.8 bln in Q1 2017
• − Soft backlog(2) at € 5.9 bln (€ 5.8 bln in Q1 2017)
• Further commercial developments in cruise business with an agreement for 6 cruise vessels with Viking; an order for two luxury expedition cruise vessels from Ponant acquired through Vard, which has also signed a Letter of Intent with Viking for the design and construction of two special cruise vessels, with an option for two more
• Fincantieri, through the Ship Repair and Conversion unit of the Services division, and Grimaldi Group signed a contract for the lengthening and refurbishing of the cruise ferries "Cruise Roma" and "Cruise Barcelona"
• Sound operational performance, with the delivery of Carnival Horizon
• Net debt at € 446 mln (vs € 314 mln in FY 2017)

Q1 2018 main orders

	Vessel		Client	Delivery
Shipbuilding		2 Cruise ships	Viking Ocean Cruises	2022-2023
Offshore		2 Expedition cruise vessels	Ponant	2020

Q1 2018 main deliveries

	Vessel		Client	Delivery
		Cruise ship "Carnival Horizon"	Carnival Cruise Line (Carnival Corporation)	Monfalcone
Shipbuilding		Oceanographic vessel "Kronprins Haakon"	Institute of Marine Research	Riva Trigoso - Muggiano
Offshore		5 Module Carrier Vessels	4 for Topaz Energy and Marine; 1 for Kazmortransflot	Vard Braila Vard Tulcea 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

Backlog deployment – by segment and end market

(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

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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) Other costs

Shipbuilding

Offshore

Revenues				Comments
€ mln	210	245		• Revenues: € 245 mln, up ~17% vs Q1 2017 − Despite negative effect of NOK/EUR exchange rate (€ 18 mln) − Ongoing implementation of diversification strategy, which generated an increase in production volumes especially in Romanian yards
EBITDA € mln	Q1 2017	Q1 2018		• EBITDA: € 9 mln, with margin at 3.5% − Reflects the continuing process of adjustment of the production structure to the challenges of the portfolio diversification efforts
Capex € mln	9 Q1 2017	4.4% 9 Q1 2018	3.5% % of Revenues	• Capex: € 5 mln • Orders: € 217 mln vs € 210 mln in Q1 2017 − One Fishing Vessel For Remøybuen AS − Two Luxury Expedition Cruise Vessels for Ponant − One Fully Electrical Battery-Powered Car-And Passenger Ferry For Boreal
	10 Q1 2017	4.8% 5 Q1 2018	2.0% % of Revenues	• Backlog: € 1,363 mln vs € 1,444 mln in Q1 2017 • Deliveries: 6 ships − One Stern Trawler for Havfisk − Five MCV (4 for Topaz Energy and Marine and 1 for Kazmortransflot)

Equipment, Systems and Services

Revenues					Comments
€ mln			167		• Revenues: € 167 mln, up 72% vs Q1 2017 − Growth in volumes of after sales activities, of life cycle management services and in the cabins and public areas business
	97 Q1 2017		Q1 2018		• EBITDA: € 15 mln with margin at 9.2 % − Reflects the change in the mix of products, heavily influenced by the strong growth in cruise volumes
EBITDA € mln					• Orders: € 167 mln vs € 129 mln in Q1 2017
	11	11.0%	15	9.2% % of Revenues	• Backlog: € 1,196 mln vs € 1,180 mln in Q1 2017
Capex € mln	Q1 2017		Q1 2018
	1 Q1 2017	1.0%	2 Q1 2018	1.2% % of Revenues

Net working capital and net debt(1)

Breakdown by main components Comments

€ mln	FY 2017	Q1 2018	• Net working capital and net debt dynamics related to the production
Inventories and advances to suppliers			volumes in cruise and the cash-in of
Work in progress net of advances from customers	835	869	the final installments for the cruise ship delivered during the period
Trade receivables	648	904	• Construction loans at € 684 mln of which € 634 mln related to VARD and
Other current assets and liabilities	909 1	658 20	€ 50 mln related to Fincantieri
Construction loans	(624)	(684)	• Most of the Group's debt is related to the financing of current assets
Trade payables			associated with cruise ships
Provisions for risks & charges	(1,748)	(1,664)	construction and therefore consistent with net working capital changes
	(141)	(143)

Net working capital	(120)	(40)
Net debt	314	446

• dynamics related to the production volumes in cruise and the cash-in of the final installments for the cruise ship delivered during the period
• Construction loans at € 684 mln of which € 634 mln related to VARD and € 50 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

(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

Outlook

2018 Guidance

Business

Plan Guidance

• Shipbuilding • 2018 results expected to be in line with 2018-2022 Business Plan targets
• Expected delivery of 10 units, of which 4 cruise ships and 6 naval vessels
• Italian Navy's fleet renewal program fully operational
• Start of design activities related to the Qatari order

Offshore

• Ongoing implementation of Vard's diversification strategy, coupled with an enhanced focus on products with greater potential in its reference markets
• Synergies with Fincantieri's cruise business
• Margins will reflect the continuing process of adjustment of the production structure to the challenges of the portfolio diversification efforts

Equipment, Systems & Services

• Confirmation of the growth trend, thanks to backlog deployment related to the Italian Navy's fleet renewal program and to the Qatari order
• Commercial and organizational actions will be implemented to ensure stronger foothold and development of the after sales business in the cruise ship segment and in the most important geographical areas
• Guidance 2018 confirmed
• ‒ Revenue increase 3-6% vs. 2017
• ‒ EBITDA margin approx. 7.5%
• ‒ Net debt at approx. € 0.4-0.6 bln

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Investor Relations contacts

Investor Relations Team

Cristiano Pasanisi – VP Group Treasury, Corporate Finance & Investor Relations +39 040 319 2375 Cristiano.pasanisi@fincantieri.it

Matteo David Masi – Head of Investor Relations +39 040 319 2334 MatteoDavid.masi@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

Q&A