Fincantieri

Investor Presentation • Nov 8, 2019

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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, Felice Bonavolontà, declares that the accounting information contained herein correspond to document results, books and accounting records.

9M 2019 Key Messages Revenues up 10% and total backlog at € 32 bln with deliveries up to 2027

	• Revenues up 9.7% at € 4.3 bln (€ 3.9 bln in 9M 2018)
	• EBITDA at € 287 mln (€ 281 mln in 9M 2018) and EBITDA margin at 6.7% (7.3% in 9M 2018): Shipbuilding +30.2% (despite negative contribution of Vard Cruise), negative Offshore & Specialized vessels margin
Financials	• Positive operating performance in all areas limited by the negative contribution of Vard, which is currently undergoing a reorganizational process
	debt(1) • Net at € 904 mln (€ 494 mln at December 31, 2018), in line with expectations and consistent with cruise delivery schedule
Order intake	• Total order intake at € 6.8 bn for 17 new units including: − 11 cruise ships for 5 different brands (Oceania, Regent Seven Seas, Viking, MSC, Princess) − 1 LCS for the US Navy (LCS 31) backlog(2) backlog(3) • Total with 106 units at € 32.3 bln: backlog at € 28.4bln (+9.3% vs. 9M 2018) and soft at € 3.9 bln
Business update	• Delivery of 18 units from 11 shipyards; launch of two units within the Italian Navy fleet renewal program • Development of electronic and IT excellence center: acquisition of 60% if INSIS Group • Progress of the French-Italian cooperation aimed at creating a more efficient and competitive European Shipbuilding Industry • Ongoing interactions with the EU Antitrust Authorities on the acquisition of Chantiers de l'Atlantique with the opening of an additional investigation phase

(3) Soft backlog which 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

9M 2019 main orders

Segment	Vessel	Client	# of ships	Expected Delivery
Shipbuilding	Cruise Ships	Oceania Cruises	2	2022-2025
		Regent Seven Seas Cruises	1	2023
		Viking Cruises	2	2024-2025
		MSC Cruises	4	2023-2026
		Princess Cruises	2	2023-2025
	Littoral Combat Ship	US Navy	1	2023
Offshore & Specialized Vessels	Expedition Cruise Vessel "Coral Geographer"	Coral Expeditions	1	2020

9M 2019 main deliveries

Segment	Vessel	Client	Shipyard
Shipbuilding	Cruise ship "Viking Jupiter"	Viking Cruises	Ancona
	Cruise ship "Costa Venezia"	Costa Crociere	Monfalcone
	Littoral Combat Ship "Billings" (LCS 15)	US Navy	Marinette
	FREMM "Antonio Marceglia"	Italian Navy	Muggiano
	Expedition cruise vessel "Le Bougainville"	Ponant	Vard Søviknes
	Expedition cruise vessel "Le Dumont d'Urville"	Ponant	Vard Søviknes
	Expedition cruise vessel "Hanseatic Nature"	Hapag-Lloyd Cruises	Vard Langsten
	Littoral Combat Ship (LCS 17)	US Navy	Marinette
Offshore & Specialized Vessels	OSCV (3 vessels)	2 for Topaz Energy and Marine 1 for Dofcon Navegação	Vard Brattvaag Vard Promar
	Expedition cruise vessel "Coral Adventurer"	Coral Expeditions	Vard Vung Tau

Overview of 9M 2019 main deliveries

Ponant Le Dumont d'Urville

Ponant Le Bougainville

Hapag-Lloyd Hanseatic Nature

LCS 17 – USS Indianapolis

OSCV Topaz (x2) OSCV Skandi Olinda (DOF)

Coral Adventurer

Order intake and backlog Breakdown by segment

• Total order intake for the quarter € 6.8 bln, mainly coming from Shipbuilding
• Total backlog with 106 units at € 32.3 bln, approximately 5.9 times 2018 revenues

(1) Sum of backlog and soft backlog

(2) Restated following the reorganization of VARD

(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

Backlog deployment Breakdown by segment and end market

(1) For reasons connected to the organizational responsibility of VARD yards split between Cruise and Offshore, one fishery vessel (for Havfisk) scheduled for delivery in 2020 is included in the cruise deliveries and two Expedition cruise vessels (for Coral Expeditions) the first one delivered in 2019 and the second scheduled for delivery in 2020 are included in Offshore & Specialized Vessels

(2) Articulated Tug Barge (ATB) is an articulated unit consisting of a barge and a tug, thus being counted as two vessels in one unit

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

:

Revenues

• Revenues up 9.7% vs 9M 2018

• − Shipbuilding revenues up 11.1% vs 9M 2018
• − Offshore & Specialized Vessels revenues down 17.5% vs 9M 2018
• − Equipment, Systems & Services revenues up 27.1% vs 9M 2018

(1) Breakdown calculated on total revenues before eliminations

EBITDA

(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

• EBITDA at € 287 mln, EBITDA margin at 6.7% (7.3% in 9M 2018)

• − Positive performance of the Shipbuilding (+30.2% vs 9M 2018), despite the adverse contribution of Vard Cruise projects due to the revision of the estimated costs at completion
• − Negative profitability of the Offshore and Specialized Vessels segment

(2) Other costs

Deep – dive: Vard Ongoing integration and alignment to Group best practices

	What we did	What we are working on
Action	 Vard full integration process:  Delisting of the subsidiary in December 2018  Change in management  Operational reorganization of both Cruise and Offshore & Specialized Vessels business units, including the revision of industrial management and economic planning of the projects  Revision of production footprint to minimize operational costs  Exit from the small fishery and aquaculture support vessels business	 Additional efforts to align industrial management and economic planning of projects to the Group best practices  Optimization of Vard operations and Vard reorganization plan
Outcome	 Recovery of production delays of 2019 deliveries  Review of estimated costs at completion of the projects weighting on the 9M 2019 results  Resizing of Promar shipyard in Brazil and disposal of Aukra and Brevik shipyards in Norway	 Margin recovery in medium-to-long term  Potential adjustments of estimated costs at completion on long-term projects

Net working capital and net debt(1)

Breakdown by main components

€ mln	FY 2018	9M 2019
Inventories and advances to suppliers		863
Work in progress net of advances from customers	881
Trade receivables	936	1,399
Other current assets and liabilities	749 94	775 149
Construction loans	(632)	(793)
Trade payables	(1,849)	(2,067)
Provisions for risks & charges	(135)	(76)
Net working capital	44	250
Net Debt	494	904

• Net working capital and Net debt dynamics mirror:
• − The increase in production volumes and cruise delivery schedule (3 ships delivered in October)
• − The use of provisions due to the settlement of the "Serene" litigation
• − The delivery of a vessel previously classified as inventory
• Construction loans at € 793 mln (€ 293 mln Vard and € 500 mln Fincantieri)

(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

2019 Guidance

• Net debt expected to slightly decrease following the delivery of 3 cruise ships in October, even if financing needs for the units in production and scheduled for delivery remain high

Shipbuilding

• 3 cruise ships delivered in October
• Full swing of production activities related to the order for the Qatari Ministry of Defense with 3 units under construction, the first of which is scheduled for delivery in 2021

Offshore & Specialized Vessels

• Focus on execution of Vard's diversified backlog and organizational and production adjustments
• Commercial activities aimed at developing innovative products and cutting-edge solutions for non O&G related sectors

Equipment, Systems & Services

• Confirmation of the revenues growth trend thanks to: backlog development relating to naval contracts, higher volumes for the production of cabins and public areas for cruise ships, as well as infrastructure activities

Investor Relations contacts

Investor Relations Team

Tijana Obradovic – Head of Investor Relations +39 040 319 2409 tijana.obradovic@fincantieri.it

Emanuela Cecilia Salvini +39 040 319 2614 emanuelacecilia.salvini@fincantieri.it

Institutional Investors

investor.relations@fincantieri.it

Individual Shareholders

azionisti.individuali@fincantieri.it

www.fincantieri.com

Q&A

Appendix

Financial overview - Shipbuilding

• Revenues: € 3,686 mln (+ 11.1% vs 9M 2018)
  • − Higher volumes in Cruise driven by the construction of bigger and more valuable vessels
  • − Good progress of production activities in naval
• EBITDA: € 336 mln (+30.2% vs 9M 2018), with margin at 9.1%
  • − Good performance both in cruise and naval activities
  • − Margins impacted by the lower-than-expected performance of Vard Cruise projects
• Capex: € 138 mln
• Orders: € 6,477 mln (€ 6,494 mln in 9M 2018)
  • − 11 Cruise ships(1)
  • − 1 Littoral Combat Ship (LCS 31)
  • − 1 Interlake Bulk Carrier for Interlake Steamship Co.
  • − 1 Ferry for Washington Island Ferry Line
  • − 1 LNG Barge for NorthStar Midstream
• Backlog: € 26,720 mln (€ 24,315 mln in 9M 2018)
• Deliveries:
  • − 5 Cruise ships(2)
  • − 3 Naval vessels(3)

(1) 2 for Oceania Cruises, 1 for Regent Seven Seas Cruises, 2 for Viking Cruises, 4 for MSC Cruises, 2 for Princess Cruises

(2) "Viking Jupiter" for Viking Cruises; "Costa Venezia" for Costa Cruises; "Le Bougainville" and "Le Dumont d'Urville" for Ponant; "Hanseatic Nature" for Hapag-Lloyd Cruises

(3) LCS 15 "USS Billings" and LCS 17 "USS Indianapolis" for the US Navy; FREMM "Antonio Marceglia" for the Italian Navy

Financial overview - Offshore & Specialized Vessels

• Revenues: € 392 mln (vs € 475 in 9M 2018)
  • − Volume contraction related to the lack of order intake in the core sector
• EBITDA: € (75) mln, with margins at -19.3 %
  • − Impacted by the review of estimated costs at completion of units under construction
  • − Negative impact also from low utilization rate of yards and high complexity of special vessels in order portfolio
• Capex: € 3 mln
• Orders: € 94 mln (€ 586 mln in 9M 2018)
• Backlog: € 836 mln (€ 1,366 mln in 9M 2018)
• Deliveries: 10 ships
  • − 3 OSCV units: 2 to Topaz Energy and Marine, 1 to Dofcon Navegação
  • − 3 fishing vessels: 1 to Aker BioMarine, 1 to Bergur-Huginn and 1 to Gjögur HF
  • − 2 ferries to Torghatten Nord
  • − 1 aquaculture support vessel to Solstrand
  • − 1 expedition cruise vessel to Coral Expeditions

Financial overview - Equipment, Systems and Services

• Revenues: € 582 mln, up 27.1% vs 9M 2018
  • − Positive impact of the backlog related to naval contracts and higher volumes in ship repairs and conversion
  • − Include the contribution from the activities related to Fincantieri Infrastructure operations
• EBITDA: € 55 mln with margin at 9.5%
  • − Major contribution of infrastructure and conversion & refurbishment projects with strategic importance but limited margins
• Capex: € 20 mln
• Orders: € 424 mln vs € 869 mln in 9M 2018
• Backlog: € 1,527 mln vs € 1,087 mln in 9M 2018