Interim Financial Report at 31 March 2024

INDEX

PARENT COMPANY DIRECTORS AND OFFICERS

5

REPORT ON OPERATIONS AT 31 MARCH 2024

7

KEY FINANCIALS

8

GROUP PERFORMANCE

9

OPERATIONAL REVIEW BY SEGMENT

17

BUSINESS OUTLOOK

24

RECONCILIATION OF THE RECLASSIFIED FINANCIAL STATEMENTS USED IN THE REPORT ON

OPERATIONS WITH THE MANDATORY IFRS STATEMENTS

30

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS AT 31 MARCH 2024

33

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FIANANCIAL STATEMENTS

39

NOTE 1 - FORM, CONTENTS AND OTHER GENERAL INFORMATION

40

NOTE 2 - SCOPE AND BASIS OF CONSOLIDATION

45

NOTE 3 - ACCOUNTING STANDARDS

47

NOTE 4 - CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS

47

NOTE 5 - INTANGIBLE ASSETS

48

NOTE 6 - RIGHTS OF USE

50

NOTE 7 - PROPERTY, PLANT AND EQUIPMENT

51

NOTE 8 - INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD AND OTHER

INVESTMENTS

53

NOTE 9 - NON-CURRENT FINANCIAL ASSETS

54

NOTE 10 - OTHER NON-CURRENT ASSETS

55

NOTE 11 - DEFERRED TAX ASSETS AND LIABILITIES

56

NOTE 12 - INVENTORIES AND ADVANCES

57

NOTE 13 - CONTRACT ASSETS AND LIABILITIES

58

NOTE 14 - TRADE RECEIVABLES AND OTHER CURRENT ASSETS

59

NOTE 15 - INCOME TAX ASSETS

61

NOTE 16 - CURRENT FINANCIAL ASSETS

61

NOTE 17 - CASH AND CASH EQUIVALENTS

61

NOTE 18 - EQUITY

62

NOTE 19 - PROVISIONS FOR RISKS AND CHARGES

66

NOTE 20 - EMPLOYEE BENEFITS

67

NOTE 21 - NON-CURRENT FINANCIAL LIABILITIES

68

NOTE 22 - OTHER NON-CURRENT LIABILITIES

69

NOTE 23 - TRADE PAYABLES AND OTHER CURRENT LIABILITIES

69

NOTE 24 - CURRENT FINANCIAL LIABILITIES

70

NOTE 25 - REVENUE AND INCOME

72

NOTE 26 - OPERATING COSTS

73

NOTE 27 - FINANCIAL INCOME AND EXPENSES

75

NOTE 28 - INCOME AND EXPENSE FROM INVESTMENTS

76

NOTE 29 - INCOME TAXES

77

NOTE 30 - OTHER INFORMATION

78

NOTE 31 - CASH FLOWS FROM OPERATING ACTIVITIES

91

NOTE 32 - SEGMENT INFORMATION

92

NOTE 33 - ASSETS HELD FOR SALE

95

NOTE 34 - ACQUISITION OF THE REMAZEL GROUP

95

NOTE 35 - EVENTS AFTER 31 MARCH 2024

97

Interim Financial Report at 31 March 2024

COMPANIES INCLUDED IN THE SCOPE OF CONSOLIDATION

....................................................................................................99

INDEPENDENT AUDITOR'S REPORT

105

GLOSSARY

108

Interim Financial Report at 31 March 2024

PARENT COMPANY DIRECTORS AND OFFICERS

BOARD OF DIRECTORS

BOARD OF STATUTORY AUDITORS

Three-year period 2022-2024

Three-year period 2023-2025

Claudio Graziano (Chairman)

Gabriella Chersicla (Chairman)

Pierroberto Folgiero (Chief Executive Officer

Elena Cussigh (Standing Auditor)

and General Manager)

Antonello Lillo (Standing Auditor)

Paolo Amato

Ottavio De Marco (Alternate Auditor)

Barbara Debra Contini

Arianna Pennacchio (Alternate Auditor)

Alberto Dell'Acqua

Marco Seracini (Alternate Auditor)

Massimo Di Carlo

Paola Muratorio

Cristina Scocchia

Valter Trevisani

Alice Vatta

Alessandra Battaglia (Secretary)

MANAGER RESPONSIBLE FOR PREPARING FINANCIAL REPORTS

Felice Bonavolontà

INDEPENDENT AUDITORS

SUPERVISORY BODY Pursuant to Legislative Decree

231/01

Nine-year period 2020-2028

Three-year period 2024-2026

Deloitte & Touche S.p.A.

Attilio Befera (Chairman - External Member)

Davide Carlino (Internal Member)

Iole Anna Savini (External Member)

For detailed information on the composition and functions of the Board Committees (the Control and Risk Committee, which is also responsible for the functions of the committee responsible for related party transactions except for resolutions on remuneration, the Remuneration Committee, which is assigned the functions of the committee responsible for transactions with related parties in the case of resolutions on remuneration associated with related party transactions, the Nomination Committee and the Sustainability Committee) reference should be made to the Report on corporate governance and ownership structure available on the Company website in the "Ethics and Governance - Corporate Governance System - Corporate Governance Reports".

DISCLAIMER

Forecast data and information must be regarded as forward-looking statements and therefore, not being based on simple historical facts, contain, by their nature, an element of risk and uncertainty because they also depend on the occurrence of future events and developments outside the Company's control. Actual results could therefore be materially different from those expressed in forward-looking statements. Forward-looking statements refer to the information available at the date of their publication; Fincantieri S.p.A. undertakes no obligation to revise, update or correct its forward-looking statements after such date, other than in the circumstances strictly required by applicable regulations. The forward-looking statements provided do not constitute and shall not be considered by users of the financial statements as advice for legal, accounting, tax or investment purposes nor is it the intention for such statements to create any type of reliance and/or induce such users to invest in the Company.

Interim Financial Report at 31 March 2024

Interim Financial Report at 31 March 2024

REPORT ON OPERATIONS AT 31 MARCH 2024

Interim Financial Report at 31 March 2024

KEY FINANCIALS

31.12.2023

Economic data

31.03.2024

31.03.2023

and income

euro/million

1,767

1,764

(1)

euro/million

100

87

5.2%EBITDA margin(*)

%

5.7%

4.9%

(7)Adjusted profit/(loss) for the period(2)

euro/million

(9)

4

for the period

euro/million

(20)

(7)

share of profit/(loss) for the period

euro/million

(18)

(7)

31.12.2023

Financial data

31.03.2024

31.03.2023

2,705Net invested capital

euro/million

2,855

3,474

euro/million

442

552

2,271Net financial position(3)

euro/million

2,413

2,922

31.12.2023

Other indicators

31.03.2024

31.03.2023

(**)

euro/million

539

909

34,629Order book(**)

euro/million

33,519

34,737

34,772Total backlog(**)(***)

euro/million

39,256

33,987

23,072- of which backlog(**)

euro/million

21,956

22,687

expenditure

euro/million

35

40

at the end of the period

number

21,729

20,777

85Vessels in order book

number

85

89

  1. Ratio between EBITDA and Revenue and income. (**) Net of eliminations and consolidation adjustments. (***) Sum of backlog and soft backlog.
    (1) This figure does not include Extraordinary and non-recurring income and expenses. See the definition contained in the section Alternative Performance Measures.
    (2) Profit/(loss) for the period before extraordinary and non-recurring income and expenses
    (3) See the definition contained in the section Alternative Performance Measures.
    The percentages contained in this report have been calculated with reference to amounts expressed in thousands of euros

Interim Financial Report at 31 March 2024

GROUP PERFORMANCE

ORDER INTAKE, ORDER BACKLOG AND DELIVERIES

In the first three months of 2024, the Group recorded euro 539 million in new orders, compared with euro 909 million in the corresponding period of 2023, with a book-to-bill ratio (order intake/revenue) of 0.3 (0.5 at 31 March 2023).

31.12.2023

intake analysis (euro/million)

31.03.2024

31.03.2023(*)

Amounts %

Amounts

%

Amounts

%

3,336

51

S.p.A.

103

19

82

9

3,264

49

of Group

436

81

827

91

6,600

100

539

100

909

100

4,148

63

141

26

252

28

1,801

27

and Specialized vessels

498

92

533

59

1,050

16

Systems and Infrastructure

207

38

238

26

(399)

(6)Consolidation adjustments

(307)

(57)

(114)

(13)

6,600

100Total

539

100

909

100

(*) Comparative figures have been restated following the redefinition of the operating segments.

The Group's total backlog reached a record level of about euro 39.3 billion at 31 March 2024, comprising euro 22.0 billion of backlog (euro 23.1 billion at 31 December 2023) and euro 17.3 billion of soft backlog (euro 11.7 billion at 31 December 2023) with development of the projects in the order book expected to continue up to 2030.

The backlog and total backlog guarantee about 2.9 years and 5.1 years of work respectively in relation to 2023 revenues. The composition of the backlog by segment is shown in the following table.

31.12.2023

backlog analysis (euro/million)

31.03.2024

31.03.2023(*)

Amounts

%

Amounts

%

Amounts

%

15,883

69

S.p.A.

14,882

68

16,537

73

7,189

31

of Group

7,074

32

6,150

27

23,072

100

21,956

100

22,687

100

18,908

82

17,755

81

19,246

85

1,866

8

and Specialized vessels

2,086

10

1,344

6

2,688

12

Systems and Infrastructure

2,730

12

2,513

11

(390)

(2)Consolidation adjustments

(615)

(3)

(416)

(2)

23,072

100

21,956

100

22,687

100

11,700

100

backlog (**)

17,300

100

11,300

100

34,772

100Total backlog

39,256

100

33,987

100

(*) Comparative figures have been restated following the redefinition of the operating segments.

  1. Soft backlog represents the value of contract options, existing letters of intent and projects at an advanced stage of negotiation not yet reflected in the order backlog.

Interim Financial Report at 31 March 2024

The analysis of the numbers of ships delivered and those in the order book is shown in the following table.

Deliveries, Order Intake and Order book (number of ships)

31.03.2024

31.03.2023

Ships delivered

4

5

Vessels ordered

4

6

Vessels in order book

85

89

CAPITAL EXPENDITURE

31.12.2023(*)

Capital expenditure analysis

31.03.2024

31.03.2023(*)

(euro/million)

Amounts

%

Amounts

%

Amounts

%

124

48Fincantieri S.p.A.

15

43

20

50

134

52Rest of Group

20

57

20

50

258

100Total

35

100

40

100

162

63Shipbuilding

21

60

28

70

24

9Offshore and Specialized vessels

6

17

2

5

35

14Equipment, Systems and Infrastructure

5

14

6

15

37

14Other activities

3

9

4

10

258

100Total

35

100

40

100

55

21Intangible assets

9

26

8

20

203

79Property, plant and equipment

26

74

32

80

258

100Total

35

100

40

100

(*) Comparative figures have been restated following the redefinition of the operating segments.

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Fincantieri S.p.A. published this content on 12 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 June 2024 21:24:01 UTC.