Slide 1: 1H 2017 Results Presentation
1H 2017 Results Presentation Alessandro Profumo Chief Executive Officer Gian Piero Cutillo Chief Financial Officer London, 28 July 2017
Slide 2: Introduction (CEO)
INTRODUCTION (CEO) 1H2017 RESULTS AND OUTLOOK (CFO) Q&A
Slide 3: Why I joined Leonardo
Why I joined Leonardo not just a business, but a pathway into the future “Leonardo is a high-tech industrial and manufacturing group, strategic for Italy and for every country in which it operates. It is now a healthy, efficient and integrated Company, rich in professionalism, know-how and talent, w
Slide 4: Clear priorities for Leonardo's sustainable leadership in the long term
Clear priorities for Leonardo’s sustainable leadership in the long term EXECUTION Relentless Project focus on Management efficiencies CUSTOMERS PRODUCTS Affordable and Commercial focused product approach and portfolio Culture relationships & Values Customer Customer Support & intimacy Service Cash I
Slide 5: Roadmap towards the strategic update and new Industrial Plan
Roadmap towards the strategic update and new Industrial Plan 2 Strategy and New Industrial Plan 1 Organization & People May 2H early 2017 2017 2018 5
Slide 6: 1H2017 Results and Outlook (CFO)
INTRODUCTION (CEO) 1H2017 RESULTS AND OUTLOOK (CFO) Q&A 6
Slide 7: 1H Key messages
1H Key messages On track and fully focused on delivering the Industrial Plan Good commercial performance Stable revenues RoS solidly improved at 9.0% thanks to Aeronautics and E,D&SS FOCF benefitted of Kuwait contract advance payment Net Debt includes the cash outflow due to strategic initiatives (D
Slide 8: New Orders
New Orders Good momentum in 2017 confirmed + 19.2% -5.2% -81.2% -60.7% % Ch. vs. 1H2016 € Mln € 7.95 bln EFA Kuwait Ca. € 4.9 bln 1H 2017 8
Slide 9: Revenues
Revenues Closing the gap with 2016 - 6.4% +0.8% +5.0% -1.6% % Ch. vs. 1H2016 € Mln Net of ca. € 75 mln of negative exchange rate 1H 2017 9
Slide 10: EBITA and Profitability
EBITA and Profitability Steady improvement driven by efficiencies, despite challenges - 13.9% +13.0% +14.8% +2.1% % Ch. vs. 1H2016 € Mln 1H 2017 10
Slide 11: Net Result Before Extraordinary Transactions
Net Result Before Extraordinary Transactions Solid bottom line 1H2016 1H2017 +2.1% Unch. -3.0% € Mln € Mln 472 482 399 400 200 194 Better tax management offset higher Net financial expenses (benefitting from positive fair value in 2016 for approx. € 30 mln) 11
Slide 12: FY2017 Guidance reaffirmed
FY2017 Guidance reaffirmed FY2016A FY2017E* Higher than 2016 (excluding Kuwait) still in a New orders € bn 20.0 12.0 – 12.5 context of challenging markets Stabilising and consolidating the current focus on Revenues € bn 12.0 ca. 12.0 the core business EBITA €mln 1,252 1,250 – 1,300 further improveme
Slide 13: Q&A
Q&A 13
Slide 14: Sector Results
SECTOR RESULTS 14
Slide 15: 1H2017 results Helicopters
1H2017 results Helicopters 2Q 1H FY % % 2017 2016 2017 2016 2016 € Mln Change Change Orders 683 574 19.0% 1,142 958 19.2% 3,737 Revenues 887 898 (1.2%) 1,598 1,708 (6.4%) 3,639 EBITA 101 119 (15.1%) 174 202 (13.9%) 430 ROS % 11.4% 13.3% (1.9) p.p. 10.9% 11.8% (0.9) p.p. 11.8% Higher orders YoY, stil
Slide 16: 1H2017 results Electronics, Defence & Security Systems
1H2017 results Electronics, Defence & Security Systems* 2Q 1H FY Good commercial % % 2017 2016 2017 2016 2016 performance even with € Mln Change Change some expected declines Orders 1,321 1,273 3.8% 2,360 2,490 (5.2%) 6,726 Revenues 1,310 1,303 0.5% 2,456 2,437 0.8% 5,468 Revenues in line YoY EBITA
Slide 17: 1H2017 results Aeronautics
1H2017 results Aeronautics 2Q 1H FY % % 2017 2016 2017 2016 2016 € Mln Change Change Orders 543 8,492 (93.6%) 1,780 9,485 (81.2%) 10,158 Revenues 792 741 6.9% 1,448 1,379 5.0% 3,130 EBITA 86 74 16.2% 132 115 14.8% 347 ROS % 10.9% 10.0% 0.9 p.p. 9.1% 8.3% 0.8 p.p. 11.1% Significant New Orders in both
Slide 18: 1H2017 results Space
1H2017 results Space 2Q 1H FY % % 2017 2016 2017 2016 2016 € Mln Change Change EBITA 19 25 (24.0%) 27 29 (6.9%) 77 Results substantially in line with 2016 with flattish Manufacturing and a slight decline in Services 2017 Profitability in line with 2016, with growing Manufacturing Revenues 18
Slide 19: Appendix
APPENDIX 19
Slide 20: 1H2017 results Group Performance
1H2017 results Group Performance 2Q 1H FY % % 2017 2016 2017 2016 2016 Change Change € Mln New Orders 2,414 10,303 (76.6%) 5,061 12,867 (60.7%) 19,951 Backlog 33,923 34,996 (3.1%) 34,798 Revenues 2,850 2,877 (0.9%) 5,326 5,413 (1.6%) 12,002 EBITA 295 308 (4.2%) 482 472 2.1% 1,252 ROS % 10.4% 10.7% (
Slide 21: Financial position and Rating
Financial position (as of end of June 2017) and Rating FINANCIAL POSITION Bond 4.822 Bank Debt including EIB Loan 294 Cash Available (1.842) Other Financial Asset/Liabilities 303 3.577 (€mil) Average life: ≈ 6 years Debt maturity profile Dollar Bond Sterling Bond Euro Bond EIB As of today Before las
Slide 22: Availability of adequate committed liquidity lines
Liquidity position (as of end of June 2017) In order to cope with possible swings in financing needs, Leonardo can leverage: – 30 June cash balance of approx. €1.8 Billion Availability of – Credit lines worth €2.7 Billion (confirmed and unconfirmed) The Revolving Credit Facility was renegotiated on
Slide 23: Safe Harbor Statement
SAFE HARBOR STATEMENT NOTE: Some of the statements included in this document are not historical facts but rather statements of future expectations, also related to future economic and financial performance, to be considered forward-looking statements. These forward-looking statements are based on Co
Slide 24: Contacts
ir@leonardocompany.com www.leonardocompany.com/investors Contacts Raffaella Luglini EVP External Relations, Communication, Investor Relations and Sustainability +39 06 32473.066 raffaella.luglini@leonardocompany.com Valeria Ricciotti Alessio Crosa Manuel Liotta Equity Analysts & Investors Fixed Inco