Leonardo Spa · MIL:LDO
Leonardo Spa — H1 2020 Earnings Presentation
26 slides from Leonardo Spa's earnings presentation, Jul 30, 2020
Slide 1: 2Q/1H2020 Results Presentation
2Q/1H2020 Results Presentation Alessandro Profumo Chief Executive Officer Alessandra Genco Chief Financial Officer Rome, 30 July 2020
Slide 2: Agenda
Agenda > Key messages Chief Executive Officer > 1H 2020 Results Chief Financial Officer > Sector Results > Appendix © 2019 Leonardo - Società per azioni 2
Slide 3: Key messages
2Q/1H2020 Results Presentation Key messages Resilient 1H in face of unprecedented challenges. Confidence in the long term fundamentals unchanged • We have responded robustly to the pandemic and we remained resilient in extreme market conditions • We continue to actively manage the situation with mit
Slide 4: Demonstrating resilience in extreme market conditions
2Q/1H2020 Results Presentation Demonstrating resilience in extreme market conditions • Stable orders vs 2019, reflecting Group weighting to military / governmental programmes across COMMERCIALLY businesses • Strong support from governments in all our domestic markets • Leonardo strategically relevan
Slide 5: Demonstrating resilience in extreme market conditions
2Q/1H2020 Results Presentation Demonstrating resilience in extreme market conditions • 1H on track despite extreme market conditions • In FY2020, excluding COVID-19 resurgence and additional lockdowns, we expect • Order Intake slightly down YoY • Revenues substantially flat YoY • EBITA not immune bu
Slide 6: Agenda
Agenda > Key messages Chief Executive Officer > 1H 2020 Results Chief Financial Officer > Sector Results > Appendix © 2019 Leonardo - Società per azioni 6
Slide 7: 1H 2020 highlights
2Q/1H2020 Results Presentation 1H 2020 highlights Resilient top line with COVID-19 impacting performance • Our Group has remained resilient in the face of unprecedented market conditions • We have continued to perform well • Orders at € 6.1 bn flat YoY with Book to Bill at ≈ 1 • Solid Group Revenues
Slide 8: 1H 2020 drivers for Orders and Revenues
2Q/1H2020 Results Presentation 1H 2020 drivers for Orders and Revenues ORDER INTAKE € mln 6,145 6,104 • Civil market slowdown, especially from civil helicopter market (-50%) • Export campaign delays due to travel restrictions • Increase in domestic military/governmental orders 1H2019A Civil Market E
Slide 9: 1H 2020 drivers for EBITA and FOCF
2Q/1H2020 Results Presentation 1H 2020 drivers for EBITA and FOCF EBITA € mln • Lower JV contribution (ATR and Space Manufacturing) Costs Savings 487 • Lower activity and profitability on the civil side 292 • Worse mix due to higher activities in developmental/low rate initial production or in contr
Slide 10: Order Intake
2Q/1H2020 Results Presentation Order Intake Stable orders vs 2019, reflecting strength of domestic military / governmental business € mln ∆ % YoY 1H2019A 6,145 Higher domestic military/Governmental orders (IMOS UK, AW169 and NEES for HELICOPTERS 2,526 +48.0% Italy and TH-73A in US) ELECTRONICS EUROP
Slide 11: Revenues
2Q/1H2020 Results Presentation Revenues EFA Kuwait ramp up and Leonardo DRS offsetting COVID-19 effects € mln ∆ % YoY 1H2019A 5,962 Slowdown in operations and lower civil deliveries due to COVID-19, partially HELICOPTERS 1,693 -10.7% offset by CS&T and NH90 Qatar ELECTRONICS EUROPE* 1,812 -3.2% Redu
Slide 12: EBITA and Profitability
2Q/1H2020 Results Presentation EBITA and Profitability Slowdown driven by JVs, civil business and mix € mln (RoS) RoS ∆ % YoY 1H2019A 487 8.2% Driven by slowdown in Revenues and lower efficiencies due to COVID-19. 1H2019 HELICOPTERS 139 8.2% -30.5% benefitted from revision of UK pension scheme Lower
Slide 13: From EBITA to Net Result
2Q/1H2020 Results Presentation From EBITA to Net Result Net Result affected by EBITA performance and higher financial expenses associated with FX hedging 1H 2019A 1H 2020A -40.0% -50.9% -82.8% YoY YoY YoY 487 -4 -7 -14 462 -109 292 -45 -15 -86 97 349 227 -6 -14 -110 € mln € mln -29 -29 1 60 EBITA No
Slide 14: Balanced debt maturity profile Successful issuance of € 500 mln bond
2Q/1H2020 Results Presentation Balanced debt maturity profile Successful issuance of € 500 mln bond July 2020 bond Bond Dollar In € mln partially refinancing Bond Euro bond expiring in 2021 EIB DEBT MATURITY * Term Loan Average life: ≈ 5.3 years ** CDP • Taking advantage of the improved financial ma
Slide 15: Liquidity position remains robust, especially given these exceptional times
2Q/1H2020 Results Presentation Liquidity position remains robust, especially given these exceptional times In order to cope with possible swings in financing needs, we can leverage • 30 June cash balance of approx. € 0.9 bn, pro forma cash-in associated with the €500mln early July bond issuance • Av
Slide 16: 2020 Guidance
2Q/1H2020 Results Presentation 2020 Guidance Assuming no COVID-19 resurgence and no further lockdowns in 2H 2020 FY2020 FY2019A Guidance New Orders (€ bn) 14.105 12.5 – 13.5 Revenues (€ bn) 13.784 13.2 – 14.0 EBITA (€ mln) 1,251 900 – 950 FOCF (€ mln) 241 heading to neutral Group Net Debt (€ bn) 2.8
Slide 17: Q&A
Q&A © 2019 Leonardo - Società per azioni 17
Slide 18: Sector Results
SECTOR RESULTS © 2019 Leonardo - Società per azioni 18
Slide 19: Helicopters
2Q/1H2020 Results Presentation Helicopters DELIVERIES BY PROGRAMME 2Q 2019 2Q 2020 % Change 1H2019 1H2020 % Change FY 2019 € mln Orders 1,019 1,040 +2.1% 1,707 2,526 +48.0% 4,641 1H2020 = 30 new units AW101 Revenues 1,082 989 -8.6% 1,895 1,693 -10.7% 4,025 NH90 2 AW109 / AW119 AW189 /149 3 7 EBITA 1
Slide 20: Defence Electronics & Security
2Q/1H2020 Results Presentation Defence Electronics & Security ELECTRONICS - EU 2Q 2019 2Q 2020 % Change 1H2019 1H2020 % Change FY 2019 € mln Orders 1,185 558 -52.9% 2,008 1,420 -29.3% 4,444 Revenues 997 966 -3.1% 1,871 1,812 -3.2% 4,289 EBITA 96 56 -41.7% 172 102 -40.7% 427 RoS 9.6% 0.6% -9.0 p.p. 9
Slide 21: Aeronautics
2Q/1H2020 Results Presentation Aeronautics AIRCRAFT 2Q 2019 2Q 2020 % Change 1H2019 1H2020 % Change FY 2019 € mln Orders 578 155 -73.2% 987 669 -32.2% 1,904 Revenues 479 643 +34.2% 861 1,074 +24.7% 2,329 EBITA 71 95 +33.8% 130 122 -6.2% 320 RoS 14.8% 14.8% +0.0 p.p. 15.1% 11.4% -3.7 p.p. 13.7% AEROS
Slide 22: Space
2Q/1H2020 Results Presentation Space 2Q 2019 2Q 2020 % Change 1H2019 1H2020 % Change FY 2019 € mln EBITA 12 -8 -166.7% 13 -10 -176.9% 39 © 2020 Leonardo - Società per azioni 22
Slide 23: Appendix
APPENDIX © 2019 Leonardo - Società per azioni 23
Slide 24: 2Q/1H 2020 Results
2Q/1H2020 Results Presentation 2Q/1H 2020 Results Group Performance 2Q 2019 2Q 2020 % Change 1H2019 1H2020 % Change FY 2019 € mln New Orders 3,627 2,683 -26.0% 6,145 6,104 -0.7% 14,105 Backlog 36,321 35,920 -1.1% 36,513 Revenues 3,237 3,287 +1.5% 5,962 5,878 -1.4% 13,784 EBITA 324 251 -22.5% 487 292
Slide 25: Covenant FY2019
2Q/1H2020 Results Presentation Covenant FY2019 FY2019A FY2019A Post IFRS 16 Post IFRS 16 EBITDA(1) € 1,743 mln Group Net Debt € 2,847 mln Net Interest - € 182 mln Leasing (IFRS 16) - € 451 mln Financial Debt to MBDA - € 651 mln Group Net Debt for Covenant € 1,745 mln EBITDA € 1,743 mln EBITDA / Net
Slide 26: Contacts
Contacts Valeria Ricciotti Head of Investor Relations and Credit Rating Agencies +39 06 32473.697 valeria.ricciotti@leonardocompany.com Leonardo Investor Relations and Credit Rating Agencies +39 06 32473.512 ir@leonardocompany.com leonardocompany.com © 2019 Leonardo - Società per azioni 26