Fincantieri - results at 30 June 2021 approved: revenues up 28%, ebitda + 84%

(To Fincantieri)
29/07/21

Economic and financial results

  • Confirmed guidance 2021: revenues up by more than 25% and EBITDA margin at 7% which is affected by the growing trend in the prices of raw materials

  • Revenues and income: EUR 3.026 million1 + 28 % compared to 1H 2020 (euro 2.369 million)

  • EBITDA2 equal to euro 219 million (+ 84% vs. 1H 2020) e EBITDA margin a 7,2%, excluding pass-through assets (vs. 5,0% 1H 2020)

  • Result for the period adjusted3 positive for euro 49 million (negative for euro 29 million in 1H 2020)

  • Result of the period it is positive for euro 7 million (negative for euro 137 million in 1H 2020) after discounting charges for asbestos (euro 29 million) and for COVID-19 (euro 22 million)

  • Net financial debt4 equal to euro 1.617 million (euro 1.062 million at December 31, 2020), stable in the quarter and consistent with the production program and the delivery plan (three cruise units in July alone with collections of approximately euro 1,5 billion); values ​​at the end of 2021 expected in line with those at the end of 2020

Operating performance

  • Overall workload5 for 111 ships, € 37 billion equal to 7,1 times 2020 revenues, excluding revenues from pass-through activities, of which:

  • Backlog: € 27,6 billion and 93 ships for delivery until 2029

  • Soft backlog: approx. € 9,4 billion

  • Production volumes at record levels for the development of the huge workload and compliance with the delivery plan, with 8,4 million hours worked vs. 5,6 million in 1H 2020

  • COVID-19: successfully started the vaccination campaign at the Group's Italian sites

  • Deliver 7 ships from 6 establishments in 1H delivery of 6 cruise ships in 2H 2021

  • Fincantieri choice like prime contractor for the supply of 6 FREMM frigates to Indonesian Navy

  • Fincantieri Marinette Marine: confirmed the order for the second unit of the FFG-62 program for the US Navy

  • Infrastructure: signed contract for the construction of a terminal cruise for MSC in Miami (US)

  • VARD: order for the construction of the Somnio residential super-yacht

  • Fincantieri NexTech: activities started up as part of the partnership with Autostrade Tech and IBM, for a system of predictive monitoring infrastructure

Strategic initiatives

  • Cold ironing: Agreement with Enel X for the construction and management of port infrastructures with low environmental impact and for the electrification of onshore logistics activities

  • Ecological transition: made up Power4Future for the production of lithium batteries

  • Connected vehicles and smart roads: Agreement with Almaviva for the digitalization process of the transport and logistics sector

  • Industrial automation: Agreement with Comau aimed at developing robotic welding solutions

Sustainability

  • Gaïa rating: assigned to Fincantieri the score of 85/100 and 2nd place out of 512 companies evaluated for the results and integration of sustainability policies in corporate governance

  • Green Star 2021: Fincantieri al 1st place in Italy, in the "Engineering, construction and infrastructure" sector for its commitment to green economy according to the German Institute of Quality (ITQF)

  • Excellence in Safety Award: Shipbuilders Council of America (SCA) awarded the "Excellence in Safety Award" to Fincantieri Marinette Marine and to Fincantieri Bay Shipbuilding (Sturgeon Bay) the "Improvement in Safety Award", for the health and safety of the two shipyards

* * *

Marghera, July 29, 2021 - The Board of Directors of FINCANTIERI SpA ( "Fincantieri"Or the"Society"), Which met under the chairmanship of Giampiero Massolo, examined and approved the Semiannual Financial Report at 30 June 2021, Prepared in accordance with International Accounting Standards (IFRS).

In the margins of the Council meeting Giuseppe Bono, CEO of Fincantieri, commented: "We hope that, thanks to the stringent measures adopted to combat the pandemic, the vaccination campaign above all, it will be confirmed la strong acceleration of the recovery, as demonstrated by the results we presented today, both from an economic-financial point of view and in terms of exceptional performance in the military sector, where we believe we can boast world leadership in surface ships, which is accompanies the one we already hold in the cruise ship sector. "

Bono then concluded: "Furthermore swe are very pleased to be present, together with top-level partners, on all the new technologies and related projects for their grounding such as, to name just one, that for the electrification of the Italian port system ".

Main management data






31.12.2020

Economic data

30.06.2021

30.06.2020

5.879

Revenues and income

euro / million

3.251

2.369

5.191

Revenues and income excluding pass-through assets(1)

euro / million

3.026

2.369

314

EBITDA(2)

euro / million

219

119

5,3%

EBITDA margin (*)

%

6,7%

5,0%

6,1%

EBITDA margin (*) excluding pass-through activities(1)

%

7,2%

5,0%

(42)

Result of the period adjusted (3)

euro / million

49

(29)

(245)

Result of the period

euro / million

7

(137)

(240)

Group result for the period

euro / million

6

(135)






31.12.2020

Balance sheet-financial data

30.06.2021

30.06.2020

1.839

Net invested capital

euro / million

2.421

1.867

777

Net assets

euro / million

804

887

(1.062)

Net financial position(4)

euro / million

(1.617)

(980)






31.12.2020

Other indicators

30.06.2021

30.06.2020

4.526

Orders (***)

euro / million

1.753

1.723

36.770

Order backlog (***)

euro / million

38.278

36.676

35.681

Total workload (***) (****)

euro / million

37.012

37.912

27.781

- of which backlog (***)

euro / million

27.612

28.012

309

investments

euro / million

160

122

20.150

Headcount at the end of the period

number

20.784

19.668

(*) Ratio between EBITDA and Revenues and income

(**) Ratio between EBIT and Revenues and income

(***) Net of eliminations and consolidations

(****) Sum of backlog and soft backlog

(1) See definition contained in the paragraph Alternative Performance Indicators

(2) This value does not include income and expenses unrelated to ordinary and non-recurring operations, including expenses due to the impacts deriving from the spread of COVID-19; see definition contained in the paragraph Alternative Performance Indicators

(3) Result for the year before income and expenses unrelated to ordinary and non-recurring operations

(4) This value does not include construction loans and includes non-current financial receivables

The percentage data contained in this Press Release are calculated with reference to amounts expressed in euro / thousand

Economic and financial results in the first half of 2021







Detail Revenues and income (euro / million)

30.06.2021

30.06.2021 (excluding pass-through activities6)

30.06.2020

Delta vs. 30.06.2020

Delta% vs. 30.06.2020

ship building

2.916

2.691

2.031

660

32,5%

Offshore

220

220

228

(8)

(3,5%)

Systems, Components and Services

481

481

392

89

22,8%

Consolidations

(366)

(366)

(282)

(84)

29,8%

Total

3.251

3.026

2.369

657

27,7%

I Revenues and income in the first half of 2021 equal to euro 3.026 million, excluding pass-through activities equal to euro 225 million, an increase of 27,7% compared to the same period of 2020. The increase in revenues reflects the positive trend of the Shipbuilding sector (+32,5 , 2020% excluding pass-through activities) and testifies to the full resumption of production activities in the Group's Italian yards which have recovered the volumes lost in 19 following the production stoppage induced by COVID-22,8. The Systems, Components and Services sector shows an increase in revenues (+ 2021%) driven by activities in support of the construction of cruise and military ships. The Offshore and Specialty Vessels segment reported revenues in the first half of 2020 substantially in line with those of the corresponding period of 3,5 (-2021%), recovering part of the volumes lost in the first quarter of 15. The revenue trend is affected by the net impact negative (euro XNUMX million) of the conversion into euro of the revenues denominated in US dollars and Norwegian kroner generated by the foreign subsidiaries.

At 30 June 2021, the revenues generated by the Group with foreign customers were 88%, an increase compared to the previous half year (84%).

THEEBITDA of the Group at 30 June 2021, equal to euro 219 million (euro 119 million at 30 June 2020), benefits from both the increase in volumes and the improvement in margins, also net of the effects of the increase in the prices of raw materials. L'EBITDA margin, excluding pass-through activities, in fact it went from 5,5% on 30 June 2020 to 7,2% on 30 June 2021, making it possible to recover well beyond the margins lost following the production shutdown, in the first half of 2020, in the Italian sites of the Group due to COVID-19 (euro 65 million). The increase in margins is mainly attributable to the Shipbuilding sector (EBITDA margin equal to 7,7% excluding pass-through activities). VARD Offshore closed the first half of 2021 with a positive EBITDA, confirming the strategic choices made by the management starting from 2019 through the restructuring started after the delisting of the Norwegian Group.

THEEBIT achieved in the first six months of 2021 is equal to euro 123 million compared to euro 54 million in the same period of the previous year with a EBIT margin (percentage incidence on Revenues and income excluding pass-through activities) equal to 4,1% (2,3% in the first half of 2020). The increase in EBIT is attributable to the reasons already illustrated in reference to the Group's EBITDA. There is a lower incidence of depreciation in the first half of 2020 following the reclassification of operating depreciation relating to the period of production stoppage induced by COVID-19 to expenses unrelated to the ordinary management.

Il Result of the period adjusted it is positive for euro 49 million at June 30, 2021 (negative for euro 29 million at June 30, 2020). Financial income and charges present a negative value of euro 45 million (negative for euro 63 million at June 30, 2020). The positive change is mainly attributable to the gains and losses on exchange rates (down by euro 21 million compared to the loss recorded last half year for the conversion of the loan taken out in US dollars by the Brazilian subsidiary Vard Promar) and to the reduction (for approximately euro 10 million) of the financial component linked to hedging derivatives (in 2020 one of the two ships denominated in US dollars was delivered). These improvements were partially offset by the greater write-down of financial receivables (up by € 9 million), and by the higher net financial charges on the exposure for the period. Income and charges on equity investments have a value of zero at June 30, 2021 (negative for € 3 million at June 30, 2020) as a net effect of the income of € 14 million, the difference between the contractual price and the assets of the INSO Group at the acquisition date, offset by the recognition losses realized by some associated companies.

I Income and charges unrelated to ordinary operations and non-recurring are negative for euro 53 million (euro 139 million at June 30, 2020) and include costs relating to disputes for asbestos damage for euro 29 million, expenses related to COVID-19 for euro 22 million related to the implementation of prevention measures adopted to guarantee the health and safety of personnel, in addition to other charges related to non-recurring activities for € 2 million. At 30 June 2020, COVID-19 costs also included the failure to absorb fixed production costs for the period of production stoppage (approximately € 65 million, of which € 17 million in depreciation).

Il Result of the period, as a result of the above, it stands at a positive value of € 7 million (negative for € 137 million at 30 June 2020). The result attributable to the Group is positive for € 6 million, compared to a loss of € 135 million in the same period of the previous year.

Il Net invested capital at June 30, 2021, it was equal to euro 2.421 million, an increase compared to euro 1.867 million at June 30, 2020. Specifically, the Net fixed capital it shows an overall increase of euro 123 million. Among the most significant effects we note in particular i) the registration in the Rights of use against new lease agreements signed by some subsidiaries; ii) the increase in the value of property, plant and equipment for euro 89 million, where the investments made in the half year (euro 136 million) and the positive impact of the translation of financial statements in foreign currency (euro 9 million) were partially offset depreciation for the period (euro 51 million), and the reduction in fixed assets (euro 20 million) as a result of the transfer by VARD to a shipping company operating in the offshore sector of a ship previously registered under construction in progress and iii) the increase in the item Equity investments (euro 14 million) due to the same transfer operation.

Il Net working capital it is positive for euro 263 million (negative for euro 202 million at December 31, 2020) with an increase of euro 465 million. The main changes concerned: i) the reduction in contract work in progress and advances from customers (euro 297 million) as a net effect of the progress of the orders in the period and the invoicing of the final installment of a cruise unit to be delivered in the month of July; ii) the increase in trade receivables (euro 753 million) due to the aforementioned invoicing; iii) the reduction in Trade payables (euro 99 million) mainly for the payment of the payable recognized at the end of 2020 for the repurchase of two FREMM units from the subsidiary Orizzonte which were subsequently resold by Fincantieri and iv) the reduction in Other current assets and liabilities (euro 75 million) mainly due to the reduction of sundry receivables from shipowners and the increase in payables to personnel for deferred salaries.

La Consolidated net financial position, which does not include i construction loans, presents a negative balance (debit) of euro 1.617 million (debit balance of euro 1.062 million at December 31, 2020). The increase, in line with forecasts, is consistent with the trend in the production volumes developed and with the delivery plan which envisages six cruise units in the remainder of the year (three in July alone with collections equal to approximately € 1,5 billion). The collections for the month of July bring the Net Financial Position to a negative value close to € 1,2 billion and then settle, at the end of the year, at expected values ​​lower than the peak in March and in line with those recorded as at 31 December 2020. This highlights once again how the trend in financial debt is strongly conditioned by the production program and the delivery plan. It should also be noted that the Net Financial Position is affected by the strategy adopted in 2020 to grant commercial extensions to its customers (€ 423 million at 30 June 2021), in order to safeguard the large workload acquired and to strengthen relations with shipping companies. The repayment of these amounts, on the basis of the extensions agreed with the shipowners, is expected during the second half of 2021 and during 2022.

I construction loans, at June 30, 2021, they totaled € 1.278 million, with a decrease of € 47 million compared to December 31, 2020, and relate to the Parent Company for € 1.090 million and to the subsidiary VARD for € 188 million. Please note that, in consideration of the operational characteristics of the construction loans and, in particular, of the circumstance that these credit instruments are obtained and can be used exclusively to finance the orders to which they refer, they are considered by management in the same way as the advances received from customers and are therefore classified within the Capital net operating year.

In the first half of 2021 the income indicators ROI and ROE are respectively 5,8% and 0,9%. The changes in ROI and ROE, compared to the previous half year, are mainly attributable to operating results, EBIT and Net income, which saw a recovery in margins.

- solidity and efficiency indicators of the capital structure they reflect the increase in total financial debt and in the net financial position of the Group mainly attributable to the delivery plan which envisages six cruise units in the second half of 2021 (three of which in July alone).

Group operating results and performance indicators for the first six months of 2021

Orders, Workload (backlog) and Deliveries
In the first six months of 2021, the Group recorded new orders for € 1.753 million compared to € 1.723 million in the corresponding period of 2020, with a book-to-bill ratio (new orders / revenues) of 0,6 (0,7 as at 30 June 2020).








31.12.2020

Order details (millions of euros)

30.06.2021

30.06.2020

Amounts

%

Amounts

%

Amounts

%

2.969

66

FINCANTIERI SpA

273

16

610

35

1.557

34

Rest of the Group

1.480

84

1.113

65

4.526

100

Total

1.753

100

1.723

100

3.716

82

ship building

1.080

62

1.364

79

487

11

Offshore and special ships

174

10

164

10

649

14

Systems, Components and Services

665

38

322

19

(326)

(7)

Consolidations

(166)

(10)

(127)

(8)

4.526

100

Total

1.753

100

1.723

100

Il overall workload of the Group reached the level of € 30 billion at 2021 June 37, of which € 27,6 billion for backlogs (€ 28,0 billion as at 30 June 2020) and € 9,4 billion for soft backlogs (€ 9,9 billion at 30 June 2020). June 2029) with a development of the orders in the portfolio expected until XNUMX.

The backlog and the overall workload respectively guarantee approximately 5,3 and approximately 7,1 years of work if compared to the revenues developed in the 2020 financial year, excluding pass-through activities.

The composition of the backlog by sector is shown in the table below.

 








31.12.2020

Detail Overall workload (millions of euros)

30.06.2021

30.06.2020

Amounts

%

Backlog detail

Amounts

%

Amounts

%

23.953

86

FINCANTIERI SpA

21.901

79

23.853

85

3.828

14

Rest of the Group

5.711

21

4.159

15

27.781

100

Total

27.612

100

28.012

100

26.088

94

ship building

24.084

87

26.333

94

874

3

Offshore and special ships

879

3

744

3

1.839

7

Systems, Components and Services

3.606

13

1.951

7

(1.020)

(4)

Consolidations

(957)

(3)

(1.016)

(4)

27.781

100

Total

27.612

100

28.012

100

7.900

100

Soft backlog (*)

9.400

100

9.900

100

35.681

100

Overall workload

37.012

100

37.912

100

(*) The Soft backlog represents the value of the contractual options, the letters of intent in place, as well as the orders under negotiation not yet reflected in the workload

The details of the numbers of ships delivered, acquired and those in the portfolio are shown in the table below.






31.12.2020

Deliveries, Orders and Portfolio (number of ships)

30.06.2021

30.06.2020

19

Ships delivered

7

10

18

Ships acquired

5

4

97

Ships in portfolio

93(*)

92

(*) At 30 June 2021, two ships were excluded from the order book due to the failure to verify the conditions precedent necessary for the definitive effectiveness of the contract.

investments

- investments carried out in the first six months of 2021 amount to euro 160 million, an increase of 31% compared to the previous year. The incidence of investments on revenues developed by the Group was 5,3% in the first six months of 2021 compared to 5,2% in the first six months of 2020.

The investments made in the first six months of 2021 are mainly aimed at further strengthening Fincantieri's positioning in the naval, civil and military shipbuilding sector. The initiatives being implemented are aimed at adapting European and American shipyards to the relevant backlog acquired and making the production process more efficient and technologically advanced, helping to improve the margins of the orders that will go into production.

organici

- organic have gone from 20.150 units at 31 December 2020 a 20.784 units as of June 30, 2021. In Italy, the increase was + 5,0%, from 9.844 units at 31 December 2020 to 10.336 units at 30 June 2021. This increase is mainly attributable to the absorption of the workforce of INSO and its subsidiary SOF following the completion of the acquisition, completed at the beginning of June.

Returns

The table below shows the expected deliveries for the units in the portfolio for the main business areas, broken down by year.










(number)

Performed on 30.06.21

2021(*)

2022

2023(**)

2024

2025

Beyond 2025

Total(***)

Cruise ships

2

6

7

7

6

5

4

35

Military

3

5

9

5

6

5

6

36

Offshore and special ships

2(****)

2

11

8

1

-

-

22

Total

7

13

27

20

13

10

10

93

(*) The data does not include the units delivered as at 30.06.21 It should be noted that the delivery of a unit under construction for the Viking shipping company was brought forward from January 2022 to December 2021.

(**)At 30 June 2021, two ships were excluded from the order book due to the failure to verify the conditions precedent necessary for the definitive effectiveness of the contract.

(***) Number of units in the portfolio by main business areas as at 30.06.21

(****) For the purposes of representing the operating segments of the Fincantieri Group, the VARD shipyards have been divided into Cruise or Offshore. For this reason, the cruise unit, Coral Geographer built in an offshore shipyard for the Australian company Coral Expeditions, was included in the Offshore and Special Ships deliveries.

Foreseeable evolution of management

In a context in which the health emergency still determines significant effects on the working and social life of individuals, the Group continues to apply strict health protocols. These efforts made it possible to achieve, in the first week of July, the goal of zero infections within its production sites. Furthermore, Fincantieri has recently activated the vaccination campaign in all its construction sites, starting from that of Sestri, deciding to bear the burden deriving from the management of the company vaccination points also for the related staff.

With regard to the cruise sector, heavily penalized by the spread of the pandemic, on the basis of the programs communicated on 13 July by cruise operators, a significant resumption of activities is expected: as many as 141 ships in service by the end of July while there are already 50 operators cruise ships which, on that date, restarted their activities all over the world7. The restart of cruises, together with the growth in bookings and the confidence given to the main shipping companies by the financial market, once again demonstrate the resilience of the sector. In fact, most cruise lines have witnessed an increase in bookings, the trend of which is not only again in line with historical trends, but for some operators it is even higher.

On the basis of these premises and the results as at 30 June, the Group, as of today, confirms for 2021 a forecast for an increase in volumes consistent with growth expectations (revenues up by more than 25%, former pass-through activities) and a margins in line with expectations, despite the growing trend in raw material prices on production planned for the years to come.

In line with what was previously planned and based on the cruise ship delivery plan in the second half of 2021, the Net Financial Position reached a negative value of approximately € 1,2 billion at the end of July, taking into account the collection of € 1,5 billion following the delivery of three cruise units in the month. Financial indebtedness will settle, at the end of the year, at expected values ​​lower than the peak in March and in line with 2020. This trend highlights how the trend in the net financial position is strongly influenced by the production program and the delivery plan.

For the Shipbuilding sector, for the second half of the year, the forecast of a significant increase in business volumes is confirmed compared to the levels reached in 2020.

In the cruise sector, the delivery of four ships is planned at the Italian plants of the Group (of which three delivered in July: Valiant Lady for Virgin Voyages, MSC Seashore for MSC and Rotterdam for HAL, and one in the fourth quarter - the Silver Dawn for SilverSea) and two units in the luxury-niche segment by VARD's cruise division (Ponant Icebreaker, Viking Octantis).

In the military ships business area, the expected business volumes are confirmed for the current year, with the delivery of three ships by the Italian shipyards, as well as two units to be delivered to the Group's US shipyards. Construction of the first unit of the FFG-2021 program for the US Navy (due for delivery in 62) is also scheduled to begin in the fourth quarter of 2026.

In the Offshore and Specialty Vessels sector, business volumes are expected to grow over the period compared to 2020 levels and the delivery of two vessels.

For the Systems, Components and Services sector, the following is expected:

  • in the Service business area, the development of the backlog deriving from the contracts signed with the Italian Navy and the Ministry of Defense of Qatar, in addition to the completion of the repair and transformation activities for the Windstar shipowner

  • in Complete Accommodation, an increase in volumes, supported by greater activities for the supply of cabins, hygiene boxes and public rooms, as well as windows and catering

  • for Electronics, Systems and Software, significant growth driven by the activities carried out in the business of defense system in the naval sector and in solutions for monitoring and safety of critical infrastructure

  • in the Energy business area, the synergistic development of activities relating to mechanical and electronic power systems, as well as the continuation of developments for the integration of new strategic technologies (e.g. hybrid ship propulsion, reduction of emissions, generation of clean energy)

  • for Infrastructures, the start of activities for the construction of the MSC Terminal in Miami and the progressive consolidation of the existing activities of the companies recently acquired by the INSO Group

In the medium to long term, the Group remains committed to developing the workload acquired over the years. Due to the acknowledgments received for the versatility and quality of its products, Fincantieri has further strengthened its position in the defense sector through signed contracts and important ongoing negotiations with various international navies. These successes will lead the Group to always have a greater contribution from the military ships business area, with expected benefits in terms of margins and financial flows.

It should also be noted that a possible stabilization of the prices of raw materials at values ​​higher than those of the beginning of 2021, the effects of which could affect future production, to date, is not believed to have significant impacts on the growth expectations of margins in the medium term. This stability is ensured among other things by the benefits deriving from investments in progress to make the production process even more efficient and technologically advanced.

The strategic choices made have allowed the Group to rapidly resume activities, following the pandemic crisis of 2020, and to achieve the positive results highlighted. These goals confirm the ability to respond promptly to the emergency and promptly bring Fincantieri back to the growth guidelines outlined, demonstrating the ability to return to the levels of margins envisaged in the development of the current order backlog.

Trends in the sectors

SHIPBUILDING





31.12.2020

(euro / million)

30.06.2021

30.06.2020

5.226

Revenues and income (*)

2.916

2.031

4.538

Revenues and income (*) excluding pass-through assets(1)

2.691

2.031

285

EBITDA(2) (*)

206

115

5,4%

EBITDA margin (*) (**)

7,1%

5,7%

6,3%

EBITDA margin (*) (**) excluding pass-through activities(1)

7,7%

5,7%

3.716

Orders (*)

1.080

1.364

33.929

Order backlog (*)

32.888

34.158

26.088

Workload (*)

24.084

26.333

250

investments

135

92

12

Ships delivered (number)

5

5

(*) Gross of eliminations between operating segments

(**) Ratio between EBITDA and Revenues and income of the sector

(1) See definition contained in the paragraph Alternative Performance Indicators

(2) This value does not include income and expenses unrelated to ordinary and non-recurring operations, including expenses due to the impacts deriving from the spread of COVID-19. See definition contained in the paragraph Alternative Performance Indicators

Revenues and income

The revenues of the Shipbuilding sector as at 30 June 2021, excluding pass-through activities for euro 225 million, amounted to euro 2.691 million, an increase of 32,5% compared to the same period of 2020. Revenues for the period refer to euro 1.902 million to the cruise ship business area (euro 1.504 million at June 30, 2020) with an increase of 26,4% and to the military ships business area (euro 789 million at June 526, 30) with a increase of 2020%. The incidence on the Group's revenues, equal to 49,8% and 56% respectively, marks a greater incidence of revenues from military ships compared to the final balance as at 23 June 30 (2020% and 57%).

The revenue trend of the cruise ships business area confirms the trend already highlighted in the fourth quarter of 2020 and is an expression of the return to full capacity of the activities in all the Group shipyards engaged in the development of the important workload acquired. In the first half of 2021, two of the eight cruise units planned for the year were delivered. Three of the six cruise units are being delivered in July alone (Valiant Lady for Virgin Voyages, MSC Seashore for MSC Cruises and Rotterdam for Holland America Line).

The increase in the production value of the military vessels business area, excluding pass-through activities relating to the FREMM unit delivered in April, reflects the progress of the program for the renewal of the Italian Navy fleet, whose first LSS (Logistic Support Ship), the “Vulcano” ship, was delivered in March while the first of the seven PPAs (Multipurpose Offshore Patrol) is expected to be delivered in the second half of the year. The increase in revenues is also to be referred to the progress of the orders for the Ministry of Defense of Qatar, whose first corvette is scheduled to be delivered for the second half, and of the activities for the other orders acquired by the Parent Company. The revenues of the business area also record the contribution of the US subsidiary FMG, which continues to develop the LCS program to which the Foreign Military Sales program between the United States and Saudi Arabia is added, which provides for the supply of four Multi- Mission Surface Combatant and the FFG-62 program.

EBITDA

THEEBITDA of the sector, as at 30 June 2021, amounted to € 206 million, an increase compared to the first half of 2020 (€ 115 million), confirming the growth strategy and development guidelines outlined by the Group prior to the spread of the pandemic. EBITDA margin, at 7,7% excluding pass-through activities (7,1% if total revenues are considered), is a net increase compared to 5,7% as at 30 June 2020 and confirms the Group's ability to return to the expected margin levels from the current backlog.

Returns

The deliveries of the period were:

  • LSS “Vulcano”, the first unit of the Italian Navy fleet renewal program, at the Muggiano plant;

  • “Viking Venus”, the first of the five cruise ships to be delivered by the Italian shipyards for the Viking shipping company, at the Ancona plant;

  • LCS 21 “USS Minneapolis St. Paul” at the US plant in Marinette (Wisconsin);

  • a multi-role frigate (FREMM), at the Muggiano (La Spezia) plant;

  • “Hanseatic Spirit”, third unit of a new series of small luxury cruise ships for Hapag-Lloyd Cruises at the Langsten shipyard (Norway).

 

OFFSHORE AND SPECIAL SHIPS





31.12.2020

(euro / million)

30.06.2021

30.06.2020

389

Revenues and income (*)

220

228

(5)

EBITDA(1) (*)

4

(1)

-1,3%

EBITDA margin (*) (**)

1,9%

-0,4%

487

Orders (*)

174

164

1.436

Order backlog (*)

1.351

1.257

874

Workload (*)

879

744

3

investments

2

2

7

Ships delivered (number)

2

5

(*) Gross of eliminations between operating segments

(**) Ratio between EBITDA and Revenues and income of the sector

(1) This value does not include income and expenses unrelated to ordinary and non-recurring operations, including expenses due to the impacts deriving from the spread of COVID-19. See definition contained in the paragraph Alternative Performance Indicators

Revenues and income

The revenues of the Offshore and Special Vessels sector at 30 June 2021, equal to € 220 million, are substantially in line with those recorded in the corresponding period of 2020 (-3,5%), recovering part of the volumes lost in the first quarter of 2021. This trend highlights the recovery of lost volumes following the reduction in production capacity with the closure of the Brevik site, still active in the first half of 2020, thanks to the redefinition of the range of products and the order portfolio in the face of repositioning in more promising sectors such as that of offshore wind.

EBITDA

The EBITDA of the sector, at 30 June 2021, was positive for € 4 million (negative for € 1 million at 30 June 2020), with an EBITDA margin at 1,9% (-0,4% at 30 June 2020). EBITDA in the first half of 2021 benefits from the effects of the restructuring and reorganization strategy launched in 2019 and reflects the first signs of repositioning in sectors with broader market prospects.

Returns

The deliveries of the period were:

  • 1 Expedition cruise unit delivered at the Vung Tau shipyard (Vietnam) to the Australian shipping company Coral Expeditions;

  • 1 Fishery unit delivered at the shipyard in Vung Tau (Vietnam) to the shipping company Luntos Co.

 

SYSTEMS, COMPONENTS AND SERVICES





31.12.2020

(euro / million)

30.06.2021

30.06.2020

937

Revenues and income (*)

481

392

76

EBITDA(1) (*)

32

24

8,1%

EBITDA margin (*) (**)

6,6%

6,0%

649

Orders (*)

665

322

3.045

Order backlog (*)

5.726

2.761

1.839

Workload (*)

3.606

1.951

32

investments

12

12

(*) Gross of eliminations between operating segments

(**) Ratio between EBITDA and Revenues and income of the sector

(1) This value does not include income and expenses unrelated to ordinary and non-recurring operations, including expenses due to the impacts deriving from the spread of COVID-19. See definition contained in the paragraph Alternative Performance Indicators

Revenues and income

Revenues in the Systems, Components and Services sector amounted to euro 481 million, an increase of 22,8% compared to the first half of 2020. This growth is mainly attributable to the Complete accommodation business area, driven by the cruise volumes generated in the period and the development of the important workload for services rendered in the context of military contracts. The business areas of the sector are also engaged in starting the development of the backlog and in strengthening their positioning in the reference markets.

EBITDA

The EBITDA of the sector at June 30, 2021, amounted to euro 32 million (euro 24 million at June 30, 2020) with an EBITDA margin which stood at 6,6% (6,0% at 30 June 2020). The profitability of the half-year, clearly improved compared to the first quarter of 2021 (4,5%), reflects the positive contribution of the various business areas but is still affected by the lower margins of the Ship Repair and Conversion business area.

 

 

OTHER ACTIVITIES





31.12.2020

(euro / million)

30.06.2021

30.06.2020

2

Revenues and income

1

1

(42)

EBITDA (1)

(23)

(19)

did

EBITDA margin

did

did

24

investments

11

16

na not applicable

(1) See the definition contained in the paragraph Alternative Performance Indicators

Other activities mainly include Corporate costs for guidance, control and coordination activities that are not allocated to the other sectors.

Further information

Other significant events of the period

On January 25, 2021, Naviris, the 50/50 joint venture of Fincantieri and Naval Group, officially received the ISO 9001: 2015 and AQAP 2110 certifications from Lloyd's Register, in accordance with the provisions of the supplementary NATO regulation for the main defense suppliers. These certifications are a further step in the development of the joint venture, whose purpose is to manage export and cooperation programs for surface vessels as well as research and development projects.

On February 3, 2021, Fincantieri officially started its activities as part of the SEA Defense project. The project, which started last December and selected as part of the European Defense Development Program (EDIDP 2019), is aimed at defining a roadmap of development of technologies to be included in the next generation of naval platforms.

On February 8, 2021, Fincantieri, through its subsidiary E-phors, specialized in the supply of cybersecurity services and products, provided a pilot training course, in partnership with the Italian Mercantile Navy Academy, with the aim of introduce Deck Officers to the fundamentals of cybersecurity.

On 11 February 2021, Naviris, the 50/50 joint venture between Fincantieri and Naval Group which is responsible for the development of cooperation programs, and Navantia signed a Memorandum of Understanding (MoU) aimed at expanding industrial cooperation for the program of the European Patrol Corvette (EPC), the most important naval initiative within the European Permanent Structured Cooperation (PESCO) project.

On March 24, 2021, Enel X and Fincantieri signed a letter of intent to collaborate in the construction and management of new generation port infrastructures with low environmental impact and for the electrification of onshore logistics activities. The agreement, initially dedicated to national projects, concerns the implementation of cold ironing, that is the technology for the shore power supply of ships moored during stops; the management and optimization of energy exchanges in new infrastructures; systems for the storage and production of electricity, also through the use of renewable sources, and the application of fuel cells.

On 31 March 2021, the N / R Laura Bassi, the only Italian research oceanographic icebreaker, owned by the National Institute of Oceanography and Experimental Geophysics - OGS, returning from the mission in Antarctica, arrived in Trieste at the Fincantieri plant (the Arsenale Triestino San Marco - ATSM) where it will undergo an important and delicate work to complete its scientific equipment for the study and exploration of the entire marine ecosystem. Work on the unit will be carried out by Fincantieri, which will work together with a group of local companies.

On April 26, 2021, Fincantieri, through its subsidiary Fincantieri NexTech, and Almaviva, the leading Italian group in digital innovation, signed a collaboration agreement to support and accelerate the digitalization process in the transport and logistics sector. The goal is to promote a mobility system that is closer to the new needs for the movement of people and goods, with particular attention to environmental impact and safety.

On May 20, 2021, Fincantieri and Comau, two Italian excellences and global leaders in their respective sectors of reference, signed a letter of intent for the development of prototype robotic solutions for steel welding, and subsequently for the construction of the related series of machines. , to be initially allocated to the Fincantieri plants. The agreement was signed by Paolo Carmassi, CEO of Comau, and Fabio Gallia, General Manager of Fincantieri.

On May 28, 2021, Fincantieri SI, a subsidiary of Fincantieri leader in the integration of electric propulsion systems and complex electromechanical systems in the marine segment (cold ironing) and terrestrial, and Faist Electronics, a subsidiary of Faist Group specializing in the development and supply of complete systems for the storage of electrical energy including electronic control and power devices, have set up the joint venture Power4Future, dedicated to the production of lithium batteries, highly strategic in multiple industrial sectors and considered a source of competitive advantage for the companies and countries that own the technology.

On 1 June 2021, Fincantieri, through its subsidiary Fincantieri Infrastructure, completed the acquisition of the main business unit headed by INSO - Sistemi per le Infrastruttura Sociali SpA, and its subsidiary SOF, already part of the group Condotte, and now controls it under the NewCo “FINSO - Fincantieri INfrastructure SOciali”. The same company holds 90% of the shares in the new company and Sviluppo Imprese Centro Italia SGR SpA (“SICI”) for the remaining share.

On 10 June 2021, during MADEX (International Maritime Defense Industry Exhibition) 2021, one of the main naval shows in Asia Pacific, Fincantieri signed a contract with Daewoo Shipbuilding & Marine Engineering (DSME) to support the Conceptual Design of the new class of aircraft carrier "CVX" for the Navy of the Republic of Korea (South Korea). The program relating to the class leader unit foresees the tender for the Basic Design starting from the second half of 2021, while the detailed design and construction will start in the following years.

Main events after 30 June 2021

On 2 July 2021, the delivery of "Valiant Lady" and the launch of "Resilient Lady", the second and third of four cruise ships commissioned from Fincantieri by Virgin Voyages, new operator of the sector, were held at the Sestri Ponente shipyard. cruise ship and Virgin Group brand of Sir Richard Branson.

On 19 July 2021, Fincantieri is confirmed in first place as Most Attractive Employer among companies in the Manufacturing, Mechanical and Industrial Engineering sector in the ranking of Universum, a Swedish company that certifies the most attractive companies for Italian university students through a detailed questionnaire.

On 26 July 2021, the Cruise Division of the MSC Group, the third largest company in the world, Fincantieri, one of the largest shipbuilding groups in the world, and SNAM, one of the main international energy infrastructure operators, signed a Memorandum of Understanding (MoU ) to jointly assess the conditions for the design and construction of the world's first hydrogen-powered cruise ship, which would allow zero-emission operations in specific shipping areas, as well as the development of the related hydrogen storage infrastructure.

On 26 July 2021, the delivery of MSC Seashore, the third of four ships of the innovative Seaside class, took place at the Monfalcone shipyard. The ship will be the longest of the Company and the largest ever built in Italy.

* * *

The manager in charge of preparing the accounting and corporate documents Felice Bonavolontà declares pursuant to paragraph 2 of article 154 bis of legislative decree no. 24 that the information contained in this press release corresponds to the documentary results, books and accounting records.

* * *

This press release is available to the public at the registered office, as well as on the Company's website (www.fincantieri.com) in the "Investor Relations - Financial Statements and Reports" section and on the centralized storage mechanism called eMarket STORAGE accessible from the site www.emarketstorage.com.

* * *

DISCLAIMER

The forward-looking data and information must be considered "forward-looking statements" and therefore, not based on mere historical facts, have for them nature a component of risk and uncertainty, since they also depend on the occurrence of future events and developments beyond the control of the Company, the final data may therefore vary substantially with respect to forecasts. The forecast data and information refer to the information available on the date of their disclosure; in this regard FINCANTIERI SpA reserves the right to communicate any changes to the information and forecast data within the terms and in the manner provided for by current legislation.

* * *

The results for the first half of 2021 will be illustrated to the financial community during a conference call to be held on Friday 30 July 2021, at 9:00 CEST.

To participate in the conference you will need to connect in the following ways:

Access to the audio webcast service through the following link.

Diamond Pass: access with pre-registration and personal PIN to the following link.

Telephone connection via operator:

Italy +39 028020911

United Kingdom +44 1212818004

United States +1 7187058796

Hong Kong +852 58080984 then dial * 0

The presentation slides will be made available on the web page www.fincantieri.com Investor Relations section 10 minutes before the start of the conference.

* * *

Attached: Accounting statements, not audited by the company in charge of the Group's statutory audit.

* * *

Fincantieri is one of the main shipbuilding complexes in the world, the only one active in all sectors of high-tech naval engineering. It is a leader in the construction and transformation of cruise, military and offshore units in the sectors oil & gas and wind power, as well as in the production of systems and components, in the offer of after-sales services and in naval furnishing solutions. Thanks to the skills developed in the management of complex projects, the Group boasts references of excellence in infrastructures, and is a reference operator in digital and in cybersecurity, in electronics and advanced systems.

With over 230 years of history and more than 7.000 ships built, Fincantieri maintains its know-how and management centers in Italy, where it employs 10.000 employees and activates around 90.000 jobs, which double on a global scale thanks to a production network of 18 factories on four continents and over 20.000 direct workers.

 

www.fincantieri.com

FINANCE



Press Office

Investor Relations

Tel. +39 040 3192473

Tel. +39 040 3192111

press.office@fincantieri.it

investor.relations@fincantieri.it

 

ATTACHMENTS

Below are the reclassified consolidated income statement, balance sheet and cash flow statement schedules and the consolidated net financial position layout used by the management to monitor the progress of management.

RECLASSIFIED CONSOLIDATED INCOME STATEMENT







31.12.2020

31.12.2020

Excluding pass-through activities(1)

(Euro / million)

30.06.2021

30.06.2021

Pass-through activities excluded(1)

30.06.2020

5.879

5.191

Revenues and income

3.251

3.026

2.369

(4.613)

(3.925)

Purchases, provision of services and various costs

(2.472)

(2.247)

(1.810)

(917)

(917)

Staff Price

(546)

(546)

(432)

(35)

(35)

Provisions

(14)

(14)

(8)

314

314

EBITDA (2)

219

219

119

5,3%

6,1%

EBITDA margin

6,7%

7,2%

5,0%

(166)

(166)

Depreciation and write-downs

(96)

(96)

(65)

148

148

EBIT

123

123

54

2,5%

2,9%

EBIT margin

3,8%

4,1%

2,3%

(131)

Financial income and (expenses)

(45)

(63)

(13)

Income and (expenses) on equity investments

-

(3)

(46)

Taxes for the period

(29)

(17)

(42)

Adjusted result for the period (1)

49

(29)

(37)

of which Group

49

(27)

(258)

Income and (expenses) unrelated to ordinary and non-recurring operations

(53)

(139)

(196)

- of which charges related to the impacts deriving from the spread of the COVID-19 virus(3)

(22)

(114)

(52)

- of which costs relating to disputes for asbestos damage

(29)

(23)

(10)

- of which other charges related to non-recurring activities

(2)

(2)

55

Tax effect on non-recurring income and expenses unrelated to management

11

31

(245)

Result of the period

7

(137)

(240)

of which Group

6

(135)

(1) See definition contained in the paragraph Alternative Performance Indicators

(2) This value does not include income and charges unrelated to ordinary and non-recurring operations, including charges due to the impacts deriving from the spread of COVID-19; see definition contained in the paragraph Alternative Performance Indicators

(3) Of which Amortization, depreciation and write-downs of € 20 million and Financial charges of € 9 million at December 31, 2020 and Amortization, depreciation and write-downs of € 17 million and Financial charges of € 3 million at June 30, 2020.

 

 

 

RECLASSIFIED CONSOLIDATED BALANCE SHEET STRUCTURE





30.06.2020

(euro / million)

30.06.2021

31.12.2020

623

Intangible assets

628

629

81

Rights of use

106

85

1.230

Property, plant and machinery

1.390

1.301

105

Wedding invitations

119

105

(93)

Other non-current assets and liabilities

(25)

(25)

(59)

Employee Benefits Fund

(60)

(60)

1.887

Net fixed capital

2.158

2.035

876

Inventories and advances

826

881

981

Work in progress on order and advances from customers

1.666

1.963

(1.001)

Construction loans

(1.278)

(1.325)

1.083

Commercial credits

1.355

602

(1.982)

Commercial debts

(2.262)

(2.361)

(69)

Provisions for sundry risks and charges

(80)

(73)

86

Other current assets and liabilities

36

111

(26)

Net working capital

263

(202)

6

Net assets (liabilities) held for sale and discontinued

operations

-

6

1.867

Net invested capital

2.421

1.839

863

Share capital

863

863

(5)

Group reserves and profits

(76)

(101)

29

Third party equity

17

15

887

Net assets

804

777

980

Net financial position

1.617

1.062

1.867

Funding sources

2.421

1.839

RECLASSIFIED CONSOLIDATED CASH FLOW STATEMENT





31.12.2020

(Euro / million)

30.06.2021

30.06.2020

(14)

Cash flow generated / (absorbed) by operating activities

(392)

(177)

(376)

Cash flow generated / (absorbed) by investing activities

(141)

(117)

1.291

Cash flow generated / (absorbed) by financing activities

50

814

901

Net cash flow for the period

(483)

520

382

Cash and cash equivalents at the beginning of the period

1.275

382

(8)

Exchange differences on initial availability

7

(5)

1.275

Cash and cash equivalents at the end of the period

799

897

 

CONSOLIDATED NET FINANCIAL POSITION





30.06.2020

(euro / million)

30.06.2021

31.12.2020

897

Liquid assets

799

1.275

18

Other current financial assets

65

76

(737)

Current financial debt

(230)

(153)

(156)

Debt instruments - current portion

(153)

(100)

(115)

Current portion of bank loans

(130)

(122)

(1.008)

Current financial debt

(513)

(375)

(93)

Net current financial debt

351

976

98

Non-current financial receivables

131

96

(985)

Non-current financial debt

(2.099)

(2.134)

(985)

Non-current financial debt

(2.099)

(2.134)

(980)

Net financial position

(1.617)

(1.062)

EXCHANGE RATES

The exchange rates adopted for the translation of the financial statements of companies that have a "functional currency" other than the euro are shown in the following table:








30.06.2021

31.12.2020

30.06.2020

Medium

On time

Medium

On time

Medium

On time

Dollar (USD)

1,2053

1,1884

1,1422

1,2271

1,1020

1,1198

Australian dollar (AUD)

1,5626

1,5853

1,6549

1,5896

1,6775

1,6344

Dirham (AED)

4,4266

4,3644

4,1947

4,5065

4,0473

4,1125

Canadian Dollar (CAD)

1,5030

1,4722

1,5300

1,5633

1,5033

1,5324

Real (BRL)

6,4902

5,9050

5,8943

6,3735

5,4104

6,1118

Norwegian krone (NOK)

10,1759

10,1717

10,7228

10,4703

10,7324

10,9120

Indian rupee (INR)

88,4126

88,3240

84,6392

89,6605

81,7046

84,6235

New Leu (RON)

4,9016

4,9280

4,8383

4,8683

4,8173

4,8397

Chinese Yuan (CNY)

7,7960

7,6742

7,8747

8,0225

7,7509

7,9219

Swedish Krona (SEK)

10,1308

10,1110

10,4848

10,0343

10,6599

10,4948

ALTERNATIVE INDICATORS OF PERFORMANCE

Il management Fincantieri assesses the performance of the Group and of the business segments on the basis of some indicators not envisaged by the IFRS. In particular, EBITDA, in the configuration monitored by the Group, is used as the main profitability indicator, as it allows to analyze the Group's margins, eliminating the effects deriving from the volatility originating from non-recurring economic elements or elements unrelated to ordinary operations (yes see reclassified consolidated income statement); the EBITDA configuration adopted by the Group may not be homogeneous with that adopted by other companies.

Described below, as required by Consob Communication no. 0092543 of 3 December 2015 which transposes the ESMA / 2015/1415 guidelines on the subject of alternative performance indicators, the components of each of these indicators:

  • EBITDA: is equal to the pre-tax result, before financial income and charges, before income and charges on equity investments and amortization and write-downs, as reported in the financial statements, adjusted by the following elements:

  • provisions for legal costs and expenses associated with disputes with personnel for asbestos damage;

  • charges related to the impacts deriving from the spread of the COVID-19 virus, mainly referable to the non-absorption of fixed production costs in the period of stoppage in 2020, to the impacts resulting from the lower efficiency deriving from the implementation of the prevention measures adopted and to the costs for safeguards health and expenses to ensure the health and safety of personnel;

  • expenses connected with reorganization plans and other non-recurring personnel costs;

  • other charges or income unrelated to ordinary operations.

  • EBIT: is equal to EBITDA net of amortization and write-downs of a recurring nature (excluding the write-downs of goodwill and intangible assets and of Property, plant and machinery recognized following impaired).

  • Operating result adjusted: is equal to the result for the year before adjustments for non-recurring economic elements or elements unrelated to ordinary operations, which are shown net of the related tax effect.

  • Net fixed capital: it is equal to the fixed capital used for company operations which includes the items: Intangible assets, Rights of use, Property, plant and machinery, Equity investments and Other non-current assets (including fair value of derivatives included in the items Non-current financial assets and Non-current financial liabilities) net of the employee benefit provision.

  • Net working capital: it is equal to the capital employed for typical company operations which includes the items: Inventories and advances, Contract work in progress and advances from customers, Construction loans, Trade receivables, Trade payables, Provisions for sundry risks and charges, Other current assets and liabilities (including Direct tax credits, Direct tax payables, Deferred tax assets, Deferred tax liabilities in addition to fair value derivatives included in the items Current financial assets and Current financial liabilities).

  • Net invested capital: it is equal to the total of net fixed capital, net working capital and net assets (liabilities) held for sale and discontinued operations.

  • Net financial position monitored by the Group includes:

  • Net current financial debt: cash and cash equivalents, current financial assets, current financial payables (excluding i Construction loans) and the current portion of medium / long-term loans;

  • Net non-current financial debt: non-current financial receivables, non-current financial payables and debt instruments.

  • ROI: the ROI (Return on investment) is calculated as the ratio between the EBIT of the period and the arithmetic average of the net invested capital at the beginning and at the end of the reference period.

  • ROE: the ROE (Return on equity) is calculated as the ratio between the Profit / Loss for the period and the arithmetic average of the Total Equity at the beginning and at the end of the reference period.

  • Total financial debt / Total equity ratio: this indicator is calculated as the ratio between Total financial debt and Total equity.

  • Net financial position / EBITDA ratio: this indicator is calculated by the Group as the ratio between the net financial position as monitored by the Group and EBITDA.

  • Net financial position / Total equity ratio: this indicator is calculated as the ratio between the net financial position as monitored by the Group and Total equity.

  • Revenues and income excluding pass-through activities: they exclude the portion of revenues relating to sales contracts with pass-through activities and which are mirrored in the cost item; pass-through assets are those contracts for which the Group invoices the entire contractual amount to the end customer but does not directly manage the construction order.

  • Provisions: these refer to provisions to provisions for risks and charges and write-downs of trade receivables and other non-current and current assets.

 

Below are the reconciliation schedules between the items in the reclassified schedules and those in the financial statements (mandatory schedules).

 

CONSOLIDATED INCOME STATEMENT






30.06.2021

30.06.2020

 (euro / million)

Mandatory schema values

Reclassified schedule values

Mandatory schema values

Reclassified schedule values

A - Revenues

3.251

2.369

Management revenues

3.214

2.323

Other income

37

46

B - Purchases, provision of services and various costs

(2.472)

(1.810)

Purchases, provision of services and various costs

(2.493)

(1.863)

Recl. a I - Income and (expenses) unrelated to ordinary operations and non-recurring

21

53

C - Cost of personnel

(546)

(432)

Staff Price

(551)

(478)

Recl. a I - Income and (expenses) unrelated to ordinary operations and non-recurring

5

46

D - Provisions

(14)

(8)

Provisions

(41)

(28)

Recl. a I - Income and (expenses) unrelated to ordinary operations and non-recurring

27

20

E - Amortization, depreciation and write-downs

(96)

(65)

Depreciation and write-downs

(96)

(82)

Recl. a I - Income and (expenses) unrelated to ordinary operations and non-recurring

17

F - Financial income and (expenses)

(45)

(63)

Financial income and (expenses)

(45)

(66)

Recl. a I - Income and (expenses) unrelated to ordinary operations and non-recurring

3

G - Income and (expenses) on equity investments

-

(3)

Income and (expenses) on equity investments

(3)

H - Taxes for the period

(29)

(17)

Income taxes

(18)

14

Recl. L - Tax effect of expenses unrelated to ordinary and non-recurring operations

(11)

(31)

I - Income and (expenses) unrelated to ordinary operations and non-recurring

(53)

(139)

Recl. from B - Purchases, provision of services and various costs

(21)

(53)

Recl. from C - Cost of personnel

(5)

(46)

Recl. from D - Provisions

(27)

(20)

Recl. from E - Amortization, depreciation and write-downs

(17)

Recl. from F - Financial income and (expenses)

(3)

L - Tax effect (charges) unrelated to ordinary operations and non-recurring

11

31

Recl. from H - Taxes for the period

11

31

M - Result of the period continuing operations

7

(137)

N - Net result for discontinued operations

Net result for discontinued operations

Result of the period

7

(137)

CONSOLIDATED BALANCE SHEET








30.06.2021

31.12.2020

 (euro / million)

Partial values ​​from mandatory scheme

Values ​​from reclassified format

Partial values ​​from mandatory scheme

Values ​​from reclassified format

A)

Intangible assets

628

629

Intangible assets

628

629

B)

Rights of use

106

85

Rights of use

106

85

C)

Property, plant and machinery

1.390

1.301

Property, plant and machinery

1.390

1.301

D)

Wedding invitations

119

105

Wedding invitations

119

105

E)

Other non-current assets and liabilities

(25)

(25)

Active derivatives

8

4

Other non-current assets

27

27

Other liabilities

(55)

(39)

Passive derivatives

(5)

(17)

F)

Employee Benefits Fund

(60)

(60)

Employee benefit fund

(60)

(60)

G) 

Inventories and advances

826

881

Inventories and advances

826

881

H)

Work in progress on order and advances from customers

1.666

1.963

Activities for work in progress on order

3.047

3.124

Liabilities for work in progress and advances from customers

(1.381)

(1.161)

I)

Construction loans

(1.278)

(1.325)

Construction loans

(1.278)

(1.325)

L)

Commercial credits

1.355

602

Trade receivables and other current assets

1.713

982

Recl. a O) Other Activities

(358)

(380)

M)

Commercial debts

(2.262)

(2.361)

Trade payables and other current liabilities

(2.578)

(2.627)

Recl. a O) Other liabilities

316

266

N)

Provisions for sundry risks and charges

(80)

(73)

Provisions for risks and charges

(80)

(73)

O)

Other current assets and liabilities

36

111

Deferred tax assets

87

78

Direct tax credits

10

12

Active derivatives

6

10

Recl. from L) Other current assets

358

380

Deferred tax liabilities

(51)

(51)

Payables for direct taxes

(14)

(7)

Passive and PV derivatives on options

(44)

(45)

Recl. from M) Other current liabilities

(316)

(266)

P)

Net assets (liabilities) held for sale and discontinued operations

-

6

NET INVESTED CAPITAL

2.421

1.839

Q)

Net assets

804

777

R)

Net financial position

1.617

1.062

SOURCES OF FINANCING

2.421

1.839

1 Excluded le pass-through assets of approximately Euro 225 million. See the definition of "pass-through assets" contained in the paragraph Alternative Performance Indicators

2 This value does not include income and expenses unrelated to ordinary and non-recurring operations; see description given in the paragraph Alternative Performance Indicators

3 Result for the year before income and expenses unrelated to ordinary and non-recurring operations

4 This value does not include construction loans and includes non-current financial receivables

5 Sum of backlog and soft backlog

6 See definition contained in the paragraph Alternative Performance Indicators

7 Cruise Industry News - Special Report "Cruise Ships in Service - July 2021" link: www.cruiseindustrynews.com/pdf/wp-content/uploads/2021/06/CIN2021_July_ShipsinService.pdf

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