Leonardo Spa · MIL:LDO
Leonardo Spa — Leonardo Spa Ord — Q1 2023 Earnings Presentation
26 slides from Leonardo Spa's earnings presentation, Jul 30, 2024
Slide 1: 1Q 2023 Results Presentation
1Q 2023 Results Presentation Rome 3 May 2023
Slide 2: Agenda
Agenda • Key messages Alessandro Profumo, Chief Executive Officer • Financial review Alessandra Genco, Chief Financial Officer • Q&A • Sector results • Appendix 2 © 2022 Leonardo - Società per azioni 1Q23 Results
Slide 3: Good start to the year: progressing in line with expectations
Good start to the year: progressing in line with expectations Leonardo is stronger, more resilient, sustainable and better set up to capture commercial opportunities • Progressing well with our plans • Order intake of € 4.9 bn, up 29.3%* with no jumbo orders included • Backlog at € 39.1 bn and Book-
Slide 4: Agenda
Agenda • Key messages Alessandro Profumo, Chief Executive Officer • Financial review Alessandra Genco, Chief Financial Officer • Q&A • Sector results • Appendix 4 © 2022 Leonardo - Società per azioni 1Q23 Results
Slide 5: 1Q 2023 Highlights
1Q 2023 Highlights 1Q2022A 1Q2022 Adj.1 1Q2023 % Δ1 ORDERS (€bn) 3.8 3.8 4.9 +29.3% • Strong commercial activity • Continued strong demand for our REVENUES 3.0 3.0 3.0 +2.6% (€bn) products supports growing top line EBITA (€mln) 132 121 105 • Solid profitability from all divisions +4.4% with expected
Slide 6: Order Intake
Order Intake Confirming commercial success € mln ∆ % YoY 1Q2022A* 3,765 18 AW169M LUH for Austria; 3 AW159 MLU; 2 AW101 export; 13 MH-139 for the US Air Force; other orders in HELICOPTERS 1,889 118.9% civil, mainly AW139 Growing in all business areas i.e modernization of terrestrial multi-domain C2
Slide 7: Revenues
Revenues Strong program delivery driving top line growth € mln ∆ % YoY 1Q2022A* 2,958 HELICOPTERS 880 -4.7% Phasing effect and expected lower contribution from NH90 Qatar ELECTRONICS EUROPE 1,046 9.5% Growing volumes in Defence Up YoY excluding GES. 1Q22 benefited from non-recurring step-up on the L
Slide 8: EBITA and Profitability
EBITA and Profitability Continued solid profitability from all divisions, with growing EBITA and expected €21mln lower contribution from JVs € mln RoS ∆ % YoY 1Q2022A* 121 4.1% HELICOPTERS 38 4.4% 5.6% Solid performance driven by programme mix ELECTRONICS EUROPE 88 8.4% 17.3% Confirming strong profi
Slide 9: From EBITA to Net Result
From EBITA to Net Result Net Result in line with last year adjusted for GES, Hensoldt and strategic JVs 1Q 2022A 1Q 2023A +4.4% +1.9% -3.6% YoY* YoY* YoY* 114* 105* 56* 119** 107** 54** -1 -2 -6 -30 132 -3 -1 -8 -41 *** 123 € mln € mln -19 105 93 74 -12 40 EBITA Non- Restructuring PPA EBIT Net finan
Slide 10: Stepping up cash flow generation and disciplined financial strategy leading to Investment Grade
Stepping up cash flow generation and disciplined financial strategy leading to Investment Grade • On 3 May, 2023 Moody’s upgraded Leonardo to Baa3, outlook stable • The Investment Grade upgrade reflects MOODY’S • Leonardo’s strong execution through the pandemic UPGRADED LEONARDO TO • Solid growth pr
Slide 11: 2023 Guidance Confirmed
2023 Guidance Confirmed 2022A 2023E1 ORDERS (€bn) 17.3 ca.17 REVENUES (€bn) 14.7 15-15.6 • Continued solid commercial momentum, with book-to-bill>1x • Successfully navigating inflationary EBITA (€mln) 1,218 1,260-1,310 pressures • Continued improvement in FOCF and focus on deleveraging FOCF (€mln) 5
Slide 12: Agenda
Agenda • Key messages Alessandro Profumo, Chief Executive Officer • Financial review Alessandra Genco, Chief Financial Officer • Q&A • Sector results • Appendix 12 © 2022 Leonardo - Società per azioni 1Q23 Results
Slide 13: Q&A
Q&A 13 © 2022 Leonardo - Società per azioni
Slide 14: Agenda
Agenda • Key messages Alessandro Profumo, Chief Executive Officer • Financial review Alessandra Genco, Chief Financial Officer • Q&A • Sector results • Appendix 14 © 2022 Leonardo - Società per azioni 1Q23 Results
Slide 15: Helicopters
Helicopters Confirmed strong performance 2018-2022 Results 1Q23 Results Orders (€ mln) Revenues (€ mln) EBITA (€ mln) and Profitability 6,208 4,547 6,060 4,025 4,157 3,972 1Q 2022 1Q 2023 % Change 3,810 10.7% 9.1% 9.8% 4,641 4,494 9.6% € mln 4,370 9.4% 431 406 415 359 Orders 863 1,889 118.9% 383 Rev
Slide 16: Electronics
Electronics Strong commercial performance 2018-2022 Results 1Q23 Results ELECTRONICS - EU Orders Revenues EBITA and Profitability 5,392 5,628 4,519 4,712 1Q 2022 1Q 2023 % Change 4,289 4,147 € mln 4,710 4,011 4,409 4,444 11.7% Orders 1,489 1,624 9.1% 10.7% 10.0% 553 Revenues 955 1,046 9.5% 2,757 2,8
Slide 17: Aircraft
Aircraft Solid profitability 1Q23 Results 2018-2022 Results Orders (€ mln) Revenues (€ mln) EBITA (€ mln) and Profitability 2,668 2,800 3,268 3,085 1Q 2022 1Q 2023 % Change 2,634 13.2% 13.7% € mln 2,031 2,329 1,904 13.8% 13.7% 13.5% 432 1,700 1,932 421 Orders 781 731 -6.4% 355 320 Revenues 571 559 -
Slide 18: Aerostructures and ATR
Aerostructures and ATR Recovery on track 2018-2022 Results 1Q23 Results Orders (€ mln) Revenues (€ mln) EBITA (€ mln) and Profitability Aerostructures 925 948 1,125 1,020 € mln 1Q 2022 1Q 2023 % Change Aerostructures 819 97 ATR Orders 94 126 34.0% 581 53 Revenues 123 151 22.8% EBITA -46 -40 13.0% 42
Slide 19: Space
Space Manufacturing slowdown and confirmed solid performance of Satellite services 2018-2022 Results 1Q23 Results EBITA (€m) 58 62 1Q 2022 1Q 2023 % Change 31 € mln 39 EBITA 7 1 -85,7% 23 2018 2019 2020 2021 2022 2023 Outlook(*) • Growing volumes driven by solid and increasing backlog • Satellite bu
Slide 20: Agenda
Agenda • Key messages Alessandro Profumo, Chief Executive Officer • Financial review Alessandra Genco, Chief Financial Officer • Q&A • Sector results • Appendix 20 © 2022 Leonardo - Società per azioni 1Q23 Results
Slide 21: 1Q 2023 Results
1Q 2023 Results Group Performance 1Q 2022 1Q 2023 % Change FY 2022 € mln New Orders 3,789 4,868 28.5% 17,266 Backlog 36,278 39.126 7.9% 37,506 Revenues 3,006 3,034 0.9% 14,713 EBITA 132 105 -20.5% 1,218 RoS 4.4% 3.5% -0.9 p.p. 8.3% EBIT 123 93 -24.4% 961 EBIT Margin 4.1% 3.1% -1.0 p.p. 6.5% Net resu
Slide 22: Solid Group liquidity ensures adequate financial flexibility
Solid Group liquidity ensures adequate financial flexibility • Available credit lines • ESG Credit Line signed in October 2021 equal to € 2.4 bn • Existing unconfirmed credit lines equal to € 0.9 bn • Commercial Paper, signed in August 2022, equal to € 1.0 bn • New «Sustainability-Linked» EIB loan e
Slide 23: Balanced debt maturity profile
Balanced debt maturity profile TL DRS RADA Bond Dollar Bond Euro EIB Term Loan CDP Debt maturity Average life: ≈ 3 years € mil CREDIT RATING As of today Before last review Date of review Moody’s Baa3 / Stable Outlook Ba1 / Positive Outlook May 2023 S&P BB+ / Positive Outlook BB+ / Stable Outlook May
Slide 24: Covenants FY2022
Covenants FY2022 FY2022A FY2022A Post IFRS 16 Post IFRS 16 EBITDA* € 1,671 mln Group Net Debt € 3,016 mln Net Interest € 104 mln Leasing (IFRS 16) - € 570 mln Financial Debt to MBDA - € 713 mln Group Net Debt for Covenant € 1,733 mln EBITDA* € 1,671 mln EBITDA / Net Interest 16.1 Group Net Debt / EB
Slide 25: 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 26: Contacts
CONTACTS Valeria Ricciotti Head of Investor Relations and Credit Rating Agencies +39 06 32473.697 valeria.ricciotti@leonardo.com Leonardo Investor Relations and Credit Rating Agencies +39 06 32473.512 ir@leonardo.com leonardo.com 26 © 2022 Leonardo - Società per azioni