Italy, Maritime Market Snapshot

Italy - Maritime Market Snapshot

Agenda

How to do business with Fincantieri

Shipyards

Get started!

2

Maritime market

Maritime market

3

Vast network of players

4

EPCEngineering procurement

contractors

Big sizeFincantieri, Ferretti, Apuania

Medium and small sizeMore than 600

ShipyardsInterior designers

Ship designers

System providers

Component providers

IndustryAssociations

Assonave

Universities

Ship owners

Research Center

Italian Ship Register

RINA

/ 5

One of the European market leaders

SICILIA

SARDEGNA

PUGLIA

CALABRIA

BASILICATA

MARCHE

ABRUZZILAZIO

TOSCANA

EMILIA-ROMAGNA

FRIULI-

VENEZIA GIULIA

TRENTINO-

ALTO ADIGE

VENETO

VALLE

D’AOSTA

PIEMONTE

UMBRIA

CAMPANIA

MOLISE

LOMBARDIA

•Rome

•Milan

LIGURIA

Worldwide leader in

boat building > 14 %

market share

680 shipyards

Beauty through design

with a perfect match of

high technology

solutions

Production

87 % motor yachts

4 % sailing boats

8% pneumatic /

rubber boats

Strong producer of

mega yachts (>24 m)

Clusters:

Cesena-Forli 145

Ravenna 118

Shipyards

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Shipyards are divided into public and private

Public

Few players

Large dimensions

• Fincantieri: 9250 employees

• Apuania: 200 employees

87,9% of the employment

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PrivateMany players > 30 (Mid sized)

>500 (Small sized)

• Highly fragmented

production

• Employ 1350 persons

• More than 30 different

shipyards

12,1% of the total

employment

More than 40.000 employees are related to shipbuilding industry: working as suppliers/subcontractors or external recruits

Shipyards and other players are spread all over Italy

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Fincantieri Shipyard

(Rovaniemi )

Lat 46° N

Apuania

Fincantieri HQ



(Helsinki)

Lat 36° N

Ferretti CRN


Shipyards are specialized in specificproductions only

Public:

Large cruise

Large ferries

Ro-Ro

Navy-submarines

Mega yachts

Special duties-Offshore

Private:

Passengers

Ferries

Fast ships

Chemical carriers

Gas carriers

Tugs and supply vessel

Super yachts – Small cabotage

Sailing yachts

Motor yachts

Special ships for offshore duties

Ships for governative use

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Offshore

Italy owns only few onshore and offshore oil and gas rigs and fields.

Oil and gas is fully imported from Russia and Middle East countries throughpipeline. This segment does not represent a big business opportunity in Italy.

LNG liquid to gas conversion plants is not yet a developed infrastucture, so notmany opportunities are available for LNG carriers.

Potential in oil and gas technologies is offered by Saipem, known companyoperating worldwide in offshore constructions, pipelines and field research. Goodopportunities for the implementation of new technologies and related services.

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How to do business with Fincantieri

Fincantieri: The order book is full until 2022!

9250 employees8 shipyards

Most important Customers

Costa Crociere (Carnival) Holland America Line Carnival-P&O, SNCM

Marghera

Sestri Ponente

Ancona

Palermo

Castellamare

Muggiano Riva Trigoso

Genova

Procurement and HQin Trieste

R&D , design centers in in Genova and Trieste

Orders are for medium passenger ships, large and medium size cruising ships.

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TRIESTE HEAD OFFICE & CENTRAL PROCUREMENTMERCHANT – PASSENGER SHIPSSHIP REPAIRS AND CONVERSIONSOFFSHORER&D

GENOVANAVAL VESSELS (NAVY)MARINE SYSTEMS AND COMPONENTSAFTER SALESORIZZONTE SISTEMI NAVALI S.p.A.CETENA S.p.A.DELFI S.r.l.SEASTEMA S.p.A.R&D

MUGGIANO (La Spezia)MEGA YACHTSNAVAL VESSELS (NAVY)

Fincantieri main locations

Cruise ships orderbook - Fincantieri

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YEAR

Cruise

Line

Ship Cost M $ GWT

kTon

Capacity

Passengers

Yard Sailing Delivery

2015

P&O

Cruises

Britannia $760 141 3611 Fincantieri Europe March

Viking

OceanViking Star TBA 47 944 Fincantieri Europe Spring

2016

Holland

America

Koningsdam $520 99 2660 Fincantieri TBA Feb

Viking

OceanViking Sea TBA 47 944 Fincantieri Europe Spring

Carnival Vista $780 135 4000 Fincantieri TBA Spring

Regent Explorer $450 54 738 Fincantieri World Summer

Seabourn Encore TBA 41 604 Fincantieri World Second

Half


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YEAR

Cruise

Line

Ship Cost M $ GWT

kTon

Capacity

Passengers


2017

Viking

OceanUnnamed TBA 47 944 Fincantieri Europe

Early

2017

Princess Unnamed $760 141 3600 Fincantieri TBA May

Viking

OceanViking Sky TBA 47 944 Fincantieri Europe June

MSC

CruisesSeaside $950 154 4140 Fincantieri TBA

Novemb

er

2018 Carnival Unnamed $780 135 4000 Fincantieri TBA March

MSC

CruisesUnnamed $950 154 4140 Fincantieri TBA May

Seabourn Ovation TBA 41 604 Fincantieri World Spring

Holland

America

Unnamed $520 99 2660 Fincantieri TBA Novemb

er


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YEAR

Cruise

Line

Ship Cost M $ GWT

kTon

Capacity

Passengers


2019

Carnival

Corp.

Unnamed TBA TBA Est. 4,000 Fincantieri TBA TBA

2020

Carnival

Corp.

Unnamed TBA TBA Est. 4,000 Fincantieri TBA TBA

2021

MSC

CruisesUnnamed $950 154 4140 Fincantieri TBA TBA

Carnival

Corp.

Unnamed TBA TBA Est. 4000 Fincantieri TBA TBA

2022

Carnival

Corp.


Carnival

Corp.


Vast categories of products

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These are just examples!

( 6 to 12 months procedure)

Don’t go there alone! Ask support for basic preparation and local assistance!

Get in touch with the Purchasing Dpt and gain a Company presentation meeting in Trieste.

The meeting is crucial for initial evaluation: be prepared with Company data, product samples, approval certifications, pictures, catalogs, reference list and a bit of Italian immagination.

Fincantieri will evaluate the benefits/features offered by the candidate Company and will recommend (or not) to apply to E-procurement portal.

Fincantieri will also check Company potential and reliability (size, credit check and financial status, references…)

If OK, then Candidate is approved, ranked and allowed to bidding.

The offered products/services must be of interest of Fincantieri.No business if the Company is not qualified as selected supplier.

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Supplier selection is a long process

How Fincantieri places orders to Suppliers

The list of selected suppliers is sorted per product,estimated amount of the order, company rank.

Fincantieri will ask the supplier to quote (e-procurement)

The offers are technically balanced and price aligned

Total Cost of Ownership is the key word Price

Innovative solution

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What do you need to have if you want to enter the market?

• Have an innovative and/or a niche product

• Compliance to the newest safety or environmental regulations

• Standard product ? = Competitive pricing!

• Good sales and marketing material

• Show benefits, business cases and references

• Local support / partner is needed!

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Get started!

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Key takeaways

The Italian market is an opportunity for you!

The order books are full for cruise and luxury vessels.

The access to the main shipyards is challenging but not impossible.

Access to shipbuilding industry requires adequate preparation and planning in advance. Need of local support is crucial for success for business and language reasons.

Ship owners are your final customers – Do not forget them as opinion leaders

Complete solutions are easier to sell than single products (less tech discussion and more added value)

Start now to collect fruits in the future!

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Business

Italy, Maritime Market Snapshot