Leonardo Spa · MIL:LDO
Leonardo Spa — Finmeccanica — 9M 2015 Earnings Presentation
24 slides from Leonardo Spa's earnings presentation, Nov 4, 2015
Slide 1: 3Q/9M 2015 Results Presentation
3Q/9M 2015 Results Presentation Gian Piero Cutillo Chief Financial Officer Rome, 4 November 2015
Slide 2: Key Messages
Key Messages 9M2015 results confirming we are proceeding in the right direction Good performance across all sectors Improvement in New Orders and Revenues due to FOREX Material step up in EBITA (+45% YoY) with RoS at 8.3% from 6%, confirming the positive trend mainly in Selex and DRS Positive Net Re
Slide 3: Focus on Group Orders
Focus on Group Orders Commercial Performance in line with 9M 2014; Book to Bill remains close to 1 - 6.6% + 15.8% + 33.0% - 17.7% +79.3% + 2.6% % Ch. vs. 9M 2014 € Mln 269 7.597 1.259 7.791 - 258 1.381 2.259 2.881 9M 9M2014 Helicopters Selex ES DRS Aeronautics Defence Eliminations & 9M 9M2015 System
Slide 4: Focus on Group Revenues
Focus on Group Revenues Good performance in line with expectations + 5.8% +5.2% + 20.1% + 0.2% - 7.7% + 4.6% % Ch. vs. 9M 2014 € Mln 301 9.001 2.140 8.604 - 200 1.164 2.384 3.212 9M 9M2014 Helicopters Selex ES DRS Aeronautics Defence Eliminations & 9M 9M2015 Systems Other 2014 2015 DRS consolidating
Slide 5: Focus on Group Profitability
Focus on Group Profitability Material step up in EBITA and ROS - 0.6 p.p. + 2.6 p.p. + 9.9 p.p. + 0.7 p.p. + 6.0 p.p. + 2.3 p.p. ROS Ch. vs. 9M2014 € Mln 44 27 163 (RoS 14.6%) 745 (RoS 7.6%) (RoS 8.3%) - 80 83 (RoS 7.2%) 515 127 (RoS 6.0%) (RoS 5.3%) 381 (RoS 11.9%) 9M 9M2014 Helicopters Selex ES DR
Slide 6: Focus on Group Net Result before extraordinary transactions
Focus on Group Net Result before extraordinary transactions “below the line” items under control 9M 2014 9M 2015 € Mln € 73 mln 745 9 64 € Mln “below the line” € 128 mln - 43% 73 515 33 599 347 95 62 325 321 102 150 -58 -54 Strong improvement in Net Result before extraordinary transactions driven by
Slide 7: Focus on Group FOCF
Focus on Group FOCF 9M2015 and FY expectations COMMENTS ON 9M 2015 2015E € Mln Usual seasonality affecting 9M 2015 ca. 130 ca. 900 YoY improvement in 9M 2015, also excluding the impact of €256mln outflows on Indian Helicopters and extraordinary dividend from JVs in 9M2014 200 - 300 ca. - 750 4Q rema
Slide 8: FY2015 Assumptions and Guidance
FY2015 Assumptions and Guidance EBITA expectations raised ASSUMPTIONS FY2014A Orders and Revenues: moderate FY2015E* growth, taking into account the changes Reported Pro forma in perimeter Profitability: important step up of 10% New orders € bn 15.6 12.7 12.0 – 12.5 Revenues € bn 14.7 12.8 12.0 – 12
Slide 9: Delivering the Plan
Delivering the Plan Continued progress 2015 Progress Good performance YTD STRENGTHEN -The Industrial Plan - Delivering efficiencies Transportation disposal closed DEVELOP - The Strategic Plan - Disposal of FATA signed 9
Slide 10: Transportation disposal
Transportation disposal Details of the closing On November 2nd Finmeccanica and Hitachi announced the closing of the transactions relating to the acquisition by Hitachi of the entire going concern of AnsaldoBreda, except for some revamping activities and certain residual contracts, and Finmeccanica’
Slide 11: Sector Results
SECTOR RESULTS
Slide 12: Helicopters
HELICOPTERS 3Q 9M FY % % 2015 2014 2015 2014 2014 € Mln Change Change Orders 624 398 56.8% 2,881 3,083 (6.6%) 4,556 Revenues 1,098 995 10.4% 3,212 3,036 5.8% 4,376 EBITA 121 116 4.3% 381 379 0.5% 543 ROS % 11.0% 11.7% (0.7) p.p. 11.9% 12.5% (0.6) p.p. 12.4% Orders up in Q3 driven by the contract for
Slide 13: EU Defence Electronics and Security - Selex ES
EU DEFENCE ELECTRONICS AND SECURITY-Selex ES 3Q 9M FY % % 2015 2014 2015 2014 2014 € Mln Change Change Orders 556 552 0.7% 2,259 1,951 15.8% 3,612 Revenues 764 713 7.2% 2,384 2,267 5.2% 3,577 EBITA 55 15 n.a. 127 62 n.a. 185 ROS % 7.2% 2.1% 5.1 p.p. 5.3% 2.7% 2.6 p.p. 5.2% Good commercial performanc
Slide 14: US Defence Electronics and Security - DRS
US DEFENCE ELECTRONICS AND SECURITY – DRS 3Q 9M FY % % 2015 2014 2015 2014 2014 $ Mln Change Change Orders 537 456 17.8% 1,539 1,407 9.4% 1,945 Revenues 443 485 (8.7%) 1,297 1,313 (1.2%) 1,877 EBITA 44 28 57.1% 93 (36) n.a. 31 ROS % 9.9% 5.8% 4.1 p.p. 7.2% (2.7%) 9.9 p.p. 1.7% Good commercial perfor
Slide 15: Aeronautics
AERONAUTICS 3Q 9M FY % % 2015 2014 2015 2014 2014 € Mln Change Change Orders 568 525 8.2% 1,259 1,529 (17.7%) 3,113 Revenues 726 756 (4.0%) 2,140 2,135 0.2% 3,144 EBITA 77 74 4.1% 163 148 10.1% 237 ROS % 10.6% 9.8% 0.8 p.p. 7.6% 6.9% 0.7 p.p. 7.5% GtoG agreement signed in 3Q between Italy and Kuwait
Slide 16: Space and Defence Systems
SPACE 3Q 9M FY % % 2015 2014 2015 2014 2014 € Mln Change Change EBITA 5 9 (44.4%) 27 26 3.8% 52 Revenues expected to grow, mainly thanks to manufacturing and launch operations services Business performance in line with expectations DEFENCE SYSTEMS 3Q 9M FY % % 2015 2014 2015 2014 2014 € Mln Change C
Slide 17: Appendix
APPENDIX
Slide 18: Group Performance
GROUP PERFORMANCE 3Q 9M FY % % 2015 2014 (*) 2015 2014 (*) 2014 (*) Change Change € Mln New Orders 2,252 1,803 24.9% 7,791 7,597 2.6% 12,667 Backlog 28,071 28,598 (1.8%) 29,383 Revenues 3,028 2,895 4.6% 9,001 8,604 4.6% 12,764 EBITA 295 205 43.9% 745 515 44.7% 980 ROS % 9.7% 7.1% 2.6 p.p. 8.3% 6.0%
Slide 19: Financial Position
FINANCIAL POSITION (as of end of September 2015) No refinancing needs before end 2017 Key Strong liquidity position Messages Bonds have neither financial covenants nor rating pricing grids Average life ≈ 8 years (€mil) Dollar Bond Maturity 432 Sterling Bond Schedule 521 500 739 555 Euro Bond 388 500
Slide 20: Liquidity Position
LIQUIDITY POSITION (as of end of September 2015) In order to cope with possible volatilities in financial needs, Finmeccanica can leverage: – 30 September cash balance of approx. €0.4Billion Availability of – Credit lines worth €2.7 Billion (confirmed and unconfirmed) adequate The Revolving Credit
Slide 21: Disposal of FATA
Disposal of FATA On October 6 2015 Finmeccanica and Danieli Group signed an agreement for the sale of: 100% of Fata S.p.A, active in the field of turn key industrial plant (Engineering, Procurement and Construction) Fata subsidiaries in USA (Fata Hunter), India (Fata Engineering), China (Fata Shangh
Slide 22: Delivering on Industrial Plan: Medium Term Objectives
Delivering on Industrial Plan: Medium Term Objectives EBITA +20% and RoS +150b.p. from 2014 to 2016 SG&A reduction > 10% from 2013 to 2015 CAPEX and capitalized R&D rationalization > 20% from 2013 to 2017, rebalancing depreciation/investments ratio, significantly improving self-financing capacity Op
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: 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 Paolo Salomone Financial Communication Fixed Income ESG +39 06 32473.697 +39 06 32473.337 +39 0