Fincantieri S.p.A.

Good afternoon, this is the Chorus Call Conference Operator. Welcome, and thank you for joining the Fincantieri First Quarter 2025 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. Folgero, Chief Executive Officer and Managing Director. Please go ahead, sir.

Good afternoon, ladies and gentlemen, and thank you for joining us on Fincantieri's first quarter 2025 results conference call. We are pleased to present a strong set of results for the first quarter of the year, building on an highly successful 2024. We continue to see the tangible results of our strategy well ahead of our plan and are consistently delivering substantial value generation for Fincantieri and its stakeholders. We recorded a solid performance in all of our key financial metrics, putting the group firmly on track to achieve its 2025 guidance. Following the recent acquisitions, we launched the new underwater segment which marks a key milestone in the Group's industrial vision. Further details will be provided in the upcoming pages. Let's now move to page four for a brief summary of the financial and commercial highlights for Q1 2025. Revenues increased by 34.5 percent year-on-year to 2.376 million euro. underpinned by a positive contribution from all segments. In particular, shipbuilding, which posted at 39.5% growth compared to the first quarter of 2024, also thanks to the positive impact of the Indonesia contract. Thanks to the virtuous path pursued by Fincantieri over the last years, we are also delivering a significant increase in profitability. EBITDA recorded an impressive growth of 53.5%, reaching €154 million, with margin at 6.5%, a material increase compared to the 5.7% achieved in Q1 2024, and 6.3% reported at the end of 2024. Our net debt improved significantly compared to the first quarter of 2024 and was marginally better than full year 2024 with a net debt to EBITDA ratio of 2.9 times. Moving on to our commercial performance on page five, we achieved impressive results in the first quarter. We recorded out best ever quarterly performance with order intake totaling 11.7 billion euro showing an extraordinary growth compared to Q1 2024 and approximately three-quarters of the entire record order intake of 2024 with a book-to-bill ratio of 4.9 times revenues. As a result, the backlog reached 40.3 billion euro, up 30.2% compared to the full year 2024, with the total backlog reaching an impressive 57.6 billion euro, and equal to 7.1 times full year 2024 revenues. As previously mentioned, starting from January 2025, we have created the new underwater segment to fully unlock Fincantieri's potential in this market. Building on the solid legacy in submarines, effectors, and sonars, Fincantieri is expanding into the broader underwater ecosystem, combining expertise, well-established technologies and non-conventional innovation to lead the transformation. At the organizational level, the new underwater segment combines all the entities contributing to the underwater dimension under one single roof. The new segment includes vast submarine systems consolidated at the beginning of 2025, The submarine business previously included in the shipbuilding NAVAL segment, including the U-212 near-future submarine program for the Italian Navy. Remazel Engineering, formerly part of mechatronics cluster, and unmanned systems and underwater business line of IDS, previously part of the electronics and digital products cluster. Moving to our order book at page eight, as you can see, as of 31 March 2025, we delivered four units. As we speak, we have a full slate of deliveries scheduled for the medium to long term, offering a clear and profound visibility for the years to come. Our impressive backlog has been further enriched with the order of four jumbo cruise ships for the Norwegian Cruise Line brand, which extends the delivery time to 2036. As of end of March 2025, cruise accounted for 34 units in portfolio, defense for 29, underwater for four submarines, and offshore for 35, for a total of 102 units, four more units compared to the end of 2024, with a robust backlog of 40.3 billion euro. Looking ahead, we see further opportunities in strengthening our order intakes thanks to a commercial pipeline in which we are actively participating of approximately 21 billion euro across all business segments. Now I will end the call over to Giuseppe who will discuss our financial results in more detail.

Please, Giuseppe. Yes, good afternoon, everybody. Moving on to page 10 and 11, which I'll do together on other intake, Piero Berto has said almost everything. But, you know, on the deep dive on the 11 billion, we have four ships for Norwegian cruise lines, four further cruise ships for Viking cruises, and for this client, we have reached a total number of 22 ships. of the same type built all in Italy and of course the two multi-purpose combat vessels for Indonesia also the underwater closed with 84 million euros in orders and we expect a further pickup on this segment for the quarters to come and when when we go to page 11 and we can see that the total backlog reached almost 58 billion euros, but we can appreciate also the quality of the numbers because soft backlog, well, hard backlog increased by 9 billion notwithstanding the revenues and also the soft backlog has been increased comparatively to the numbers at the end of 2024 with further opportunities that will quickly become orders in the next quarters. Soft backlog as well includes the opportunities we have within the Italian Navy under the Italian Defense Multi-Year Plan of 2024-2026. So we expect orders coming in the next quarters and next year. And let's now move to page 12, revenues. 2.4 billion up to 34.5% quarter over quarter, with an increase, a strong increase in shipbuilding, which posted a 39.5% increase compared to the same period of last year. And of course, this has come also from the positive impact of the Indonesia contract. Shipbuilding accounted for almost 72% of group revenues, uh, cruise 41.1 and defense, uh, increased to 30.3%. Uh, we have offshore specialized vessels that grew, uh, almost 7% quarter over quarter, and they, uh, take a roughly 12.5% of the total revenues. And also for the first time, of course, underwater revenues, uh, and this, this, uh, underwater revenues at this point in time, constitute 3.7% of the group revenues. And in this quarter, we have consolidated VAS starting from mid-January. In this segment, we expect a significant acceleration of revenue growth in the second half of the year in line with our expected order and delivery schedule. Equipment systems and infrastructure represented 12% of total revenues and delivered almost 14% year-on-year increase, thanks to the good performance across all clusters. Substantial, I would say, increase of EBDA up 53.5% to 154 million euros, with a margin at 6.5%. with a growth of 80 basis points year-on-year, and improved also compared to what we reported at the end of 2024. Going through the segments, shipbuilding recorded an EBITDA of 125 million euros, increasing by 53.3 percent versus first quarter of last year, with a margin of 6.8 percent, up 60 basis points. And this is a result of the continuous improvement of operational efficiency initiatives and, you know, the more profitable business mix that we recorded in this first quarter. Offshore EBITDA, 15 million euros, increased by almost 17%, compared to end of March 2024 with a margin of 4.7%, also improved 40 basis points. Underwater delivered an EBDA of 60 million euros and an EBDA margin of 17%. And this, you know, it testifies the sector's premium profitability, which is significantly higher compared to our legacy shipbuilding business. In the equipment systems and infrastructure segment, EBDA increased by 11.8%. reaching 50 million euros with a margin of 4.9, which is roughly in line with the first quarter of 2024. And this is despite the fact that Ramazel exited this segment being now aggregated within the underwater business. On page 14, the leveraging is accelerating. As Pierroberto mentioned before, We are roughly below three times CBDA, considering last 12 months CBDA at 2.9%, a net debt slightly improved compared to the figure as of the end of 2024. The $1.668 billion does not include the proceeds from the capital increase, which were expended in the first quarter through the payment of the purchase price of a bus. Networking capital is broadly in line, I would say, with the end of 2024 with an increase in accounts payable that offset the increase of the main components of the asset side of the networking capital. Now back to Pierroberto for the final wrap-up and some key takeaways.