Fincantieri Group Overview and Experiences Implemented
in Foreign Countries
Canberra, 9th February 2016
Highlights Fincantieri Group
Royal Princess
Princess Cruises
First cruise ship fully compliant
with new regulation
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Employees by location
€4,399 MM revenues
~€11.6 BN backlog(2)
~€8.2 BN soft backlog(2,3)
21 shipyards
4 continents
~ 20,900 employees
~ 80,000 subcontractors
€297 MM EBITDA
#1 Western designer & shipbuilder(1)
with 230 years of history & >7,000 ships built
Revenues by geography
Vietnam
• 1 shipyard
USA
• 3 shipyards
Brazil
• 2 shipyards
Norway
• 5 shipyards
Italy
• 8 shipyards
Romania
• 2 shipyards
UAE
• 1 Joint Venture
Italy 37%
RoW 63%
Italy 18%
RoW 82%
~20,900 €4.4 BN
2
FINCANTIERI AT A GLANCE
Note: all figures reported at 31 December 2014, except for backlog and soft backlog which are referred to 9M 2015 (at 30 September 2015) (1)By revenues, excluding naval contractors in the captive military segment. Based on Fincantieri estimates of shipbuilders’ revenues in 2014 (2)At 30 September 2015 (3)Soft backlog represents the value of existing contract options and letters of intent as well as contracts under negotiation, none of which yet reflected in the order backlog
Operating subsidiary Representative / Sales office
Corporate/BU headquarters Joint Venture Shipyard
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By client’s country By end market(1)
Cruise ()
Ferries ()
Mega-Yachts
Naval
Offshore
After sales
Business diversification
Equipment & Systems
Repair & Conversion
( ) = under divestment
2014 revenues breakdown
3
Source: Company information
(1) Breakdown calculated based on revenues gross of consolidation effects
…WITH A UNIQUE PRESENCE IN ALL VALUE ADDED SEGMENTS
Italy 18%
RoW 82%
€4.4 BN €4.4 BN
Cruise 32%
Naval 24%
Equipment, Systems & Services
4%
Others 5%
Offshore 35%
• World most
diversified player
active in all high
value added
segments
• Balanced
exposure to
Cruise, Naval and
Offshore
• Significant share
of revenues
coming from
countries outside
of Italy
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TRACK RECORD, TOP CLIENTS AND TECHNOLOGICAL LEADERSHIP
(1) At 30 September 2015 (2) Includes other products delivered by Naval business unit. Includes US subsidiaries pre Fincantieri acquisition, excluding 174 RB-M delivered since 2002, of which 28 in 2014 and 3 in 2015) (3) Includes other products delivered by Offshore business unit. Includes VARD and predecessor companies (4) Parent company of several brands: Carnival Cruise Lines, Costa Crociere, Cunard, Holland America Line, P&O Cruises, Princess Cruise Lines and Seabourn Cruise Lines (5) Parent company of Oceania Cruises and Regent Seven Seas Cruise. Acquired by Norwegian Cruise Line Holdings in September 2014 (6) In terms of bollard pull at the date of construction (423 tons) (7) In terms of loading capacity (2011) (8) Award instituted by the major Nordic shipping magazine Skipsrevyen
• Royal Princess: 1st cruise ship fully
compliant with new regulations
• Costa Luminosa & Costa Pacifica:
Guinness World Record for joint-
christening of 2 cruise ships
• LCS Freedom: world’s fastest steel
frigate
• Far Samson: most powerful
offshore vessel(6)
• Normand Prosper: 1st AHTS providing
significantly higher stability (24m beam)
• AMC Connector: world’s largest cable layer(7)
• Skandi Africa: “Ship of the Year”(8)
Technological
leadership
Track record
ships deliveries(1)
SHIPBUILDING OFFSHORE
Cruise Naval
• Carnival Group(4)
• MSC Crociere
• Prestige Cruise Holdings(5)
• Silversea Cruises
• Viking Ocean Cruises
• Virgin Cruises
• Italian Navy and Coast Guard
• US Navy
• United Arab Emirates Navy
• Algerian Navy
• Indian Navy
• DOF
• Farstad
• Island Offshore
• Siem Offshore
• Solstad Offshore
• Technip
Top clients
• Since 1990
• Since 2002
• 2014
• 9M 2015
• Since 1990
• Since 2002
• 2014
• 9M 2015
• Since 1990
• Since 2002
• 2014
• 9M 2015
70 99(2) 350(3)
278(3) 47 48(2)
18 2 4(2)
3 3(2) 11
Products overview: naval vessels
FREMM Frigate “Bergamini” Class
Italian Navy
Best in class in terms of endurance
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FINCANTIERI NAVAL VESSELS FROM THE YEAR 2000 ALREADY BUILT WARSHIPS, SUBMARINES AND SMALL COMBATANTS
Vessel Type Quantity Displacement (t) Speed (kts)
Cavour Aircraft Carrier 1 28,000 29
Horizon Class* DDG AAW 2 7,200 29
FREMM Class* Frigate 10 6,600 27
Freedom Class
US Navy* Littoral Combat Ship 10 3,200 40
P.71 Aircraft Carrier
India* Propulsion System Integration 1 4 LM 2,500 GT 2 shafts
Total 24
Vessel Type Quantity Displacement (t) Speed (kts)
Todaro Submarine 4 1,720 (submerged) >16
Vessel Type Quantity Displacement (t) Speed (kts)
Comandanti Class Patrol Corvette 4 1,600 >26
Abu Dhabi
UAE Corvette 1 1,650 >25
Falaj Class
Saettia Mk5 UAE Stealth 2+8 550 22
Total 7
Total 4
* International Programme
* Transfer of Technology
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FINCANTIERI NAVAL VESSELS FROM THE YEAR 2000 ALREADY BUILT PATROL VESSELS AND AUXILIARY VESSELS
Vessel Type Quantity Displacement (t) Speed (kts)
Saettia Mk2 IPV 5 400 34
Sirio Class OPV 2 1,600 >22
Malta Mk3 IPV 1 400 23
Iraq Mk4 IPV 4 400 23
CG SARS Turkey* OPV 4* 1,750 >22
Dattilo Class
Italian CG OPV 2 3,300 >18
Total 18
Vessel Type Quantity Displacement (t) Speed (kts)
Elettra Multirole Research Ship 1 3,000 >17
Deepak Class
India Fleet Tanker 2 28,000 20
“Prometeus”
Etna Class - Greece** LSS 1 13,400 21
BDSL
Algeria LPD 1 8,300 20
Total 5 * RMK Shipyard - **Elefsis Shipyard Transfer of Technology
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Contractual Delivery Date 16th Feb 2016 16th Feb 2017 16th Apr 2018 16th Apr 2019
Delivered
29th May 2013
(Muggiano
Shipyard)
Delivered
19th Dec 2013
(Muggiano
Shipyard)
Delivered
28th Apr 2015
(Muggiano
Shipyard)
Delivered
27th Feb 2014
(Muggiano
Shipyard)
Assembly
workshop
(Riva Trigoso
Shipyard)
Launched
13th Dec 2014
(Riva Trigoso
Shipyard)
F590
C. Bergamini
F591
V. Fasan
F592
C. Margottini
F593
Carabiniere
F594
Alpino
F595
L. Rizzo
8
Launched
19th Dec 2015
(Riva Trigoso
Shipyard)
F596
F. Martinengo
Cutting steel
(Riva Trigoso
Shipyard)
F597
Hull 6248
Order confirmed for F598 - F599
ITALIAN FREMM - “BERGAMINI” CLASS
FREMM Frigates for Italian Navy: Production Status at a glance
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SIGNIFICANT PRESENCE OF FINCANTIERI ENTRY MODES IN FOREIGN COUNTRIES
*accomplished
Construction
in the foreign
country
Award of construction orders from foreign
countries and delivery of “turn-key” vessels or
without and fitted-for combat system to be
installed in the receiver Country
Establish a local presence through the
acquisition of a foreign company in order to
design and construct ships locally
Construction
in Italy
Development of
the project in
Italy
Acquisition of a
shipyard for
local
construction
Establishment
of a partnership
/ agreements
with local player
• Establish a local presence through partnership
in order to design and construct ships locally
• Support foreign players in the design and
construction of ships providing Transfer of
Technology, training and components
Country Description International entry mode
1
2
3
• India
• Turkey*
• Greece*
• Perù*
• USA
• UAE
• Brazil
• Algeria
• Norway
• Russia
• UAE
• Perù*
• Malta*
• India*
• Iraq*
• Kenya*
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• Length overall
• Moulded breadth
• Design displacement
• Max speed at 100% MCR
88.40 m
12.20 m
abt. 1,620 t
over 25 knots
Supplier of a complete platform derived from the well
proven “Cigala Fulgosi” Class able to fit onboard a
complete new Combat System suite supplied by the
customer, in particular composed by new sensors
(3D search radars, ESM, HMS & TAS) and new
weapons (SSM, Secondary Guns & TLS)
ESTABLISHMENT OF A PARTNERSHIP / AGREEMENTS WITH LOCAL PLAYER: UAE
Program /
contract
Corvette “Abu Dhabi” Class
Role of
Fincantieri
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ESTABLISHMENT OF A PARTNERSHIP / AGREEMENTS WITH LOCAL PLAYER: UAE
• Length o.a.
• Moulded breadth
• Full load displacement
• Max speed at 100% MCR
about 55 m
8.60 m
about 520 t
over 21 knots
• Supplier of a two complete whole-warship units
derived from the well proven “ Saettia ” Class,
including a fully integrated new Combat System
suite
• Transfer of technology for the construction of four
additional units in a local shipyard
• Establishment of a JV between Fincantieri and a
local shipyard to pursue and manage newbuildings
contracts
Program /
contract
Role of
Fincantieri
Stealth Attack Craft “Falaj 2” Class
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ESTABLISHMENT OF A PARTNERSHIP / AGREEMENTS WITH LOCAL PLAYER: TURKEY (ACCOMPLISHED)
• Length overall
• Beam
• Full load displacement
• Top speed
88.4 m
12.2 m
1,700 t
22 knots
• Fincantieri provides the Turkish Coast
Guard with:
– Functional Design of the new
project (partly derived from SIRIO
class)
– Supply of Material Packages
– Transfer of Technology
– Technical Assistance to
Construction
Program /
contract
Role of
Fincantieri
Patrol Vessel - CG SARS
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ACQUISITION OF A SHIPYARD FOR LOCAL CONSTRUCTION: USA
Role of
Fincantieri
• Length o.a.:
• Beam
• Full load displacement
• Draft
• Top speed
• Propulsion CODAG
118.1 m
17.6 m
3,400 t
4.3 m
40+ knots
85 MW
• Fincantieri joined the Lockheed Martin LCS Consortium
in 2004 to provide HM&E Components and Design
Support
• In 12/2008 Fincantieri acquired a local shipbuilding
company and established Fincantieri Marine Group LLC
• Over the following 6 years Fincantieri invested over
$100 million in facilities improvements and transferred a
significant amount of process know-how and key
personnel
• As of 11/2015, 3 LCS ships have been delivered, 6
more are under construction and 3 additional are under
contract
Littoral Combat Ship Program /
contract
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FINCANTIERI IN THE USA - 2015
14
Other Locations Wisconsin
Miami,
FL
Fincantieri Marine Systems N.A.
Washington,
DC
San Diego,
CA Houston,
TX
Fincantieri Marine Group
Fincantieri S.p.A. (Rep Office).
Vard Marine
Chesapeake,
VA
FINCANTIERI employs 2,300+ people in the US in addition to 1,500+ contractors
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Overview
A Fincantieri Company, with Lockheed Martin as a minority
shareholder
Offers complete and cost-effective marine solutions
Investments in excess of USD100M in facilities
Large and experienced naval architecture and marine
engineering staff
Highly trained and skilled workforce, committed to safe
operation
Distinguished history of building quality ships
Marinette Marine Corp. (“MMC”) in Marinette, WI.
Founded in 1942. Built more than 1,500 vessels for
government and commercial clients
Bay Shipbuilding Co. in Sturgeon Bay, WI. Traces its
roots to 1918. Built 700+ ships
ACE Marine, located in Green Bay, WI. Center of
excellence for aluminum boats
Shipyards recent main programs
Littoral Combat Ship (LCS), one of the
main new programs for the US Navy
Advanced Scientific Exploration
Vessels for leading institutions such as
the ARRV and NOAA
Construction of Articulated Tug Barge
(ATB) units
Construction of Offshore Platform
Supply Vessels
Leader in repair and conversions of
ships on the Great Lakes
Response Boat – Medium for the Coast
Guard (delivered 184 boats program for
USCG)
Aluminum deckhouse for LCS
FINCANTIERI MARINE GROUP: A DIVERSIFIED BUSINESS PORTFOLIO
FINCANTIERI brought to the US a uniquely diversified business model
15
Bay Shipbuilding
.
Marinette Marine
Marinette Marine
.
.
ACE Marine
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Operations MRO&C
Maintenance Repair Overhaul & Conversion
Conversions 1.Mid-life docking activities
2.Modernization
3.Platform Upgrade & Restoring
4.CS Upgrade & Restoring
5.Refurbishment & Revamping
Services ISS
In Service Support
1. Maintenance & Repair # Preventive # Predictive # Corrective
2. Change & obsolesc. Mng
3. Documentation Updates
4. Archives
5. Follow-on Training
6. Spare Replenishment
ILS
Integrated Logistic Support 1. Engineering Activities
# Logistic Engineering # BOM & Configuration # Manuals & Tech.Spec.
2. Provisioning Spare Parts # On Board # Ashore provisioning
3. Training # Base & Board Oper. # Computer-based
T[0]
Contract
definition Engineering Construction Delivery Service Support De-Commiss.
T[0]
Product Lifecycle Management
40 Years
First
Sea Going
Tender
Request
Contract
Signed
Start
Production
Hand
Over
De-Commissioning
In Service Support
Warranty
BUSINESS OVERVIEW
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• Unique presence in all value added segments (Naval, Cruise, Ferries, Mega-Yachts, Repair &
Conversion, Offshore, Equipment & Systems, After Sales)
o Unique track record of naval vessels delivered for top client (Italian Navy and Coast
Guard, US Navy, United Arab Emirates Navy, Algerian Navy, Indian Navy, etc.) and
technological leadership
o Spectrum of well-proven and flexible ship designs
• Unique experience and commitment in technology and know-how transfer to build locally
o Whole warship program management to deliver on time and within budget
o Contribution to reduce overall program risk as Fincantieri does for USN (LCS Program) and
USCG (Response Boat Medium)
WHAT FINCANTIERI COULD BRING TO AUSTRALIA
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• Fincantieri, with the full support of the Italian Government and the Italian Navy, believes to
have both the pedigree to effectively manage the upcoming Australian Naval Programs SEA
1180 and SEA 5000 for which is fully committed
• Fincantieri is ready to establish strategic partnerships with the Australian Shipbuilding
Industries to maximising the possible benefits associated with this important economic sector
transferring its experience in conducting past and current shipbuilding programs in the
Customers’ Country
• Fincantieri could grant a business model of Prime Contractorship for the whole warship and for
after sales services for product lifecycle management (ILS and ISS), also having regard to the
model applied for the contract recently formalised with the Italian Navy for the renewal of the
Italian Fleet
WHAT FINCANTIERI COULD BRING TO AUSTRALIA
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