Slide 1: 1Q2016 Results Presentation
1Q2016 Results Presentation Gian Piero Cutillo Chief Financial Officer 5 May 2016
Slide 2: Key messages
Key messages Solid start to the year reflecting a better balanced business Continuous improvement in Electronics, Defence & Security and Aeronautics Offsetting increasingly challenging Helicopters market Material step up in Net Result FY expectations confirmed Very positive incremental impact from E
Slide 3: New Orders
New Orders In line with 1Q2015, with book-to-bill at 1 - 71.5% + 21.5% +201.8% - 2.9% % Ch. vs. 1Q2015 € Mln 2,641 993 (30) 2,564 1,217 384 1Q2015 Helicopters Electronics, Defence Aeronautics Eliminations & Other 1Q2016 1Q and Security Systems 2016 3
Slide 4: Revenues
Revenues In line with 1Q2015 despite the change in perimeter - 12.3% + 2.3% -3.3% - 4.4% % Ch. vs. 1Q2015 € Mln 2,654 638 (46) 2,536 1,134 810 1Q2015 Helicopters Electronics, Defence Aeronautics Eliminations & Other 1Q 1Q2016 and Security Systems 2016 4
Slide 5: Profitability improvement
Profitability improvement Growing EBITDA and 210bp higher EBITDA Margin YoY - 1.6 p.p. +4.0 p.p. +2.7 p.p. + 2.1 p.p. Ch. vs. 1Q2015 € Mln 108 326 (Margin 16.9%) 4 (6) (Margin 12.9%) 287 (Margin 10.8%) 117 (Margin 10.3%) 103 (Margin 12.7%) 1Q2015 Helicopters Electronics, Aeronautics Space Other acti
Slide 6: Profitability improvement
Profitability improvement Sustainable growth of EBITA and ROS - 1.9 p.p. +1.9 p.p. + 1.2 p.p. + 0.6 p.p. Ch. vs. 1Q2015 € Mln 41 4 (20) (RoS 6.4%) 164 157 (RoS 6.5%) (RoS 5.9%) 56 (RoS 4.9%) 83 (RoS 10.2%) 1Q2015 Helicopters Electronics, Aeronautics Space Corporate & 1Q2016 1Q Defence and Others Sec
Slide 7: Net Result
Net Result Material step up of EBIT and Net Result 1Q2015 1Q2016 € Mln € Mln 164 164 (6) 157 157 (23) (24) (24) 134 134 (71) 110 110 (102) (7) 56 56 (4) 44 EBITA Restructuring PPA EBIT Net financial Income Taxes Net Result EBITA Restructuring PPA EBIT Net financial Income Taxes Net Result costs expe
Slide 8: Eurofighter Kuwait contract
Eurofighter Kuwait contract Preliminary impact on Group figures Contract signed on April 5th 2016 with the Kuwait Ministry of Defence for the supply of 28 Eurofighter Typhoon in the most advanced configuration, including the cutting-edge new E-Scan radar Leonardo as prime contractor will lead all th
Slide 9: FY2016 Guidance
FY2016 Guidance Updated to factor in the impact of the EFA-Kuwait contract Orders: increasingly selective with tighter return criteria, to FY2016E* FY2016E* FY2015A reduce execution risk and Pre-Kuwait New Guidance improve quality of results, boosted by the EFA Kuwait contract New orders € bn 12.4 1
Slide 10: Contribution to 2016 Guidance
MORE BALANCED TODAY Contribution to 2016 Guidance* 14% ROS% Helicopters LEONARDO GROUP FINMECCANICA GROUP 12% Aeronautics 10% Electronics, Defence and Security Systems 8% 6% EBITA 4% 2% 0% € Mln 10 0 200 400 600 800 1,000 1,200 1,400 EBITA *Space sector consolidated under the Equity Method Eur mln
Slide 11: Sector Results
SECTOR RESULTS 11
Slide 12: Helicopters
HELICOPTERS 1Q FY % 2016 2015 2015 € Mln Change Orders 384 1,348 (71.5%) 3,910 Revenues 810 924 (12.3%) 4,479 EBITA 83 112 (25.9%) 558 ROS % 10.2% 12.1% (1.9) p.p. 12.5% Challenging market conditions in some relevant segments affecting order intake in 1Q2016. 1Q2015 benefitted from UK AW101 IOS cont
Slide 13: Electronics, Defence & Security Systems
ELECTRONICS, DEFENCE & SECURITY SYSTEMS (Now includes Defence Systems as a Division , DRS and MBDA) 1Q FY Of which 1Q FY DRS: % % 2016 2015 2015 2016 2015 2015 € Mln Change $ Mln Change Orders 1,217 1,002 21.5% 6.974 Orders 422 567 (25.6%) 2,022 Revenues 1,134 1,108 2.3% 5.656 Revenues 364 401 (9.2%
Slide 14: Aeronautics
AERONAUTICS 1Q FY % 2016 2015 2015 € Mln Change Orders 993 329 n.a. 1,741 Revenues 638 660 (3.3%) 3,118 EBITA 41 34 20.6% 312 ROS % 6.4% 5.2% 1.2 p.p. 10% Significant level of new orders both in Aircrafts (9 additional M-346 to the Italian Air Force) and Aerostructures (B787), recovering the postpon
Slide 15: Space
SPACE 1Q FY % 2016 2015 2015 € Mln Change EBITA 4 1 n.a. 37 Good performance in Manufacturing, with higher volumes and better profitability offsetting lower margins in Services EBITA and profitability expected to recover in 2016 15
Slide 16: Appendix
APPENDIX 16
Slide 17: Group Performance
GROUP PERFORMANCE 1Q FY % 2016 2015 2015 Change € Mln New Orders 2,564 2,641 (2.9%) 12,371 Backlog 27,863 30,169 (7.6%) 28,793 Revenues 2,536 2,654 (4.4%) 12,995 EBITDA 326 287 13.6% 1,866 EBITDA Margin 12.9% 10.8% 2.1 p.p 14.4% EBITA 164 157 4.5% 1,208 ROS % 6.5% 5.9% 0.6 p.p. 9.3% EBIT 134 110 21,
Slide 18: Disciplined financial strategy aimed at cash flow improvement and Net Debt reduction
Disciplined financial strategy aimed at cash flow improvement and Net Debt reduction FOCF 2015A FOCF 2016E € Mln ca. 150 1,000-1,050 183 ca. 200 EFA impact 747 500-600 (600) - (650) 307 (543)* (80) Cash from operations Dividends Investments Transportation & FYFOCF FY2015 Cash from operations Dividen
Slide 19: Financial Position as of end of March 2016
FINANCIAL POSITION as of end of March 2016 No refinancing needs before end 2017 Key Strong liquidity position Messages Bonds have neither financial covenants nor rating pricing grids Average life > 7 years (€mil) Dollar Bond Maturity 401 Sterling Bond 739 Schedule 521 500 381 556 500 401 Euro Bond 2
Slide 20: Liquidity Position
LIQUIDITY POSITION as of end of March 2016 In order to cope with possible swings in financing needs, Finmeccanica can leverage: 31 March cash balance of approx. €0.9Billion Availability of Credit lines worth €2.8 Billion (confirmed and unconfirmed) The Revolving Credit Facility was renegotiated on 6
Slide 21: 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 22: Investor Relations Contacts
Investor Relations & Sustainable Responsible Investors (SRI) Contacts Raffaella Luglini Head of Investor Relations & SRI +39 06 32473.066 raffaella.luglini@finmeccanica.com Valeria Ricciotti Alessio Crosa Financial Communication Fixed Income +39 06 32473.697 +39 06 32473.337 valeria.ricciotti@finmec