Fincantieri S.p.A.

Good morning. This is the course call conference operator. Welcome, and thank you for joining the Cinque Terre full year 2021 results conference call. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone. At this time, I would like to turn the conference over to Mr. Bono, Chief Executive Officer. Please go ahead, sir.

Good morning, ladies and gentlemen. Thank you for joining us, and we call for the financial result for the 2021 conference call. Let me start by saying that I am very proud that even during the year, I still affect By the pandemic and the increase of raw materials prices, we at Fincantieri achieved excellent results. In such difficult times, we did react with great determination and overcome challenges that affected the full sector, and in particular, still now, our clients in the Swiss business. Indeed, we managed to preserve our orders and operations while keeping our workforce safe. In 2021, we reached a record high EBITDA at 495 million, with a margin of 7.4%. exceeding the guidance for this year. In terms of the ratings, we go 28.3%. This is for last year, improving across four segments if compared to the pre-pandemic levels. Bottom line, in 2021, we recorded an adjusted net profit at 92 million versus the negative 42 million recorded last year. And the last result at 22 million compared to the negative 245 million in 2020. This shows the need and determination of this company react to profitability during a year and how the strategy is taken to here. We are best in class in Exxon. We believe in the promise. We are seeing the progress of our investment program. Creating different production efficiencies and the cost of automation. Once again, our strategy proved to be successful. Our performance is robust. Our solutions are innovative and tailor-made. Our client base is extremely loyal and in some sectors we are within such range. Our business is sustainable to give long-term value for our stakeholders. Those are elements essential to maintain our leadership in the sector the competencies in the current global economic scenario. We are a technological platform with a global footprint. We characterize our unique sector, our wide competencies, long lasting experience and complex projects. Our project management skills and and our system integration capabilities to create the synergies across the company business, fitted from mutual know-how to sales and trust opportunities. I am also pleased to our effort in ESG has been internationally recognized. Confirming our full commitment to a sustainable business, the foundation for long-term growth are set. I am personally proud of the commitment and the determination, the sense of belonging of our people, our suppliers and also all together make Finca Gary an even stronger global leader. We think global, but we act local. Thank you.

Thank you, Giuseppe. Good morning to everybody. At page six, you have an executive summary of the main numbers regarding 21 results. As has been said with our CEO, there's a very robust set of numbers in an unprecedented difficult environment with revenues going above $6 billion, $600 million. With EPDI growth, which is almost 60 percent and reaching almost half a billion, maintaining a very solid and sustainable backlog, and very importantly, notwithstanding what happened to raw materials and other constraints we have to face, we met the guidance given a year ago. I would also mention, beyond the numbers you can find here, that almost 90% of our revenue comes from international clients, while almost 80% of the production is being performed, made locally in Italy. That really gives you the sense of a global leadership by an Italian manufacturing company. There has been a record volume in production, more than 16 million hours in our yards that also thanks to the the the economy of scales reached the investment which has been done over the years and the reaction the reactivity by by by our colleagues allowed us to maintain and significantly improve profitability and that has been done notwithstanding the environment you know well we've been also able to preserve the backlog while also capturing new orders with a different mix, but we'll go to that afterwards. It's also important to highlight that we've been delivering 19 ships in the last 12 months, and that has been done in 12 different yards from three different continents, which tells you about the global reach of FinCAP. Operating cash flow has been positive. It has been supported by our capex plan and the investments which will be commented later on will also tell you that we are building and improving our competitive advantage versus our competitors. So this is basically the sense of page six. If you go to page seven, helicopter view of the major events quarter by quarter. I won't go through any information, but you can see that this company is really large, is engaged in several different businesses, has been delivering in each of these segments. In the shipbuilding, you can see the very important European project for a European patrol corvette, the order from Indonesia and the Ministry of Defense, and very importantly, US Navy confirmed exercising the second option for the FFG new class frigates. MSC seashorts represent the largest ship ever built in Italy and the first corvette for the Qatari Ministry of Defense has been delivered just like the second logistics support ship or LSS for the Italian Navy. In the offshore specialized vessels, no new orders have been, I would say, captured by anybody in the oil and gas. On the other hand, we've been able to transform VARD and make it a leader, a global leader in SOV business, which relates to the maintaining, manufacturing and maintaining offshore wind farms. In terms of ESCs and the other division, ESS, the important landmark project of Port Miami for the cruise terminal for MSC, and we've also been finalizing IDS acquisition, which is a small but very important company for the technology it embodies. Partnership, you can find here at page 7 what has been already announced. It's also important to note that we're very active also in sustainable finance. It has been testified that the first trade finance credit line for the manufacturing of green cable layers and the first sustainability link construction loans. Page 8, an update on ESG. As you can see, numbers speak for themselves. Renewable electricity, we more than doubled the percentage of electricity done by renewable sources. Carbon intensity measures as tons of CO2 over revenues and is less by half. Why continuing to commit our capital in R&D, an important factor to keep and improve our competitive position? Safety is still at the very heart of what we do. Why on the gender distribution on our board, you can see that it's being represented in a very balanced way. Why continue also to invest in talent and in people? That has been somehow endorsed by the most important rating agencies and other institutions, which basically awarded us with one of the most important, highest ratings, and that is true for CDP or BE. We also committed, as we promised, new rating agencies like S&P Global and Sustainalytics, and being For us, a kind of debut, the ranking has been really, really high, and we're very proud of that. Some awards have also been saying, as far as our attractiveness on the labor market, on health and safety, which is really important, that is coming from U.S. authority. Also, sustainability, Green Star awarded us with one of the most important and best-run company with that respect. If we flip to page 10, deliveries and orders, you can see not just the numbers, but we highlight how diversified our client base and our ability to be competitive in different segments of our sectors, by far exceeding results of our competition. And even when we look at orders, clearly the mix, as I said before, has been changing because the pandemic really hit the cruise sector, but we've been able to compensate with the naval business and with the offshore. In terms of backlog, at page 11, you can see that it's well-balanced, diversified. You can see 29 vessels in portfolio. in the cruise portfolio, 36 in naval, and 26 in offshore and specialized vessels. This breadth, this diversification, and we've got to that also soft backlog, allows Fincantieri to count on a long-term visibility, on a diversification, and even new sources of emerging growth in our business. Now I hand it over to Giuseppe Rado, our CFO.