Slide 1: FY 2019 Results Presentation
FY 2019 Results Presentation Rome, 13 March 2020
Slide 2: Agenda
Agenda Part 1: Setting the business up to succeed in the long term Alessandro Profumo, Chief Executive Officer • Strengthen our core o Focus on top line growth & profitability improvement William J. «Bill» Lynn III, CEO of Leonardo DRS o Customer satisfaction…our daily effort and ultimate goal Gian
Slide 3: Setting the business up to succeed in the long term
Setting the business up to succeed in the long term Alessandro Profumo Chief Executive Officer Rome, 13 March 2020
Slide 4: We are very clear on the company we want to be
4Q/FY2019 Results Presentation We are very clear on the company we want to be • A company delivering long-term sustainable growth • Clear ambitions in our priority sectors • Significant actions behind those ambitions • Doing what we said we would do © 2019 Leonardo - Società per azioni 4
Slide 5: Delivering long term sustainable growth
4Q/FY2019 Results Presentation Delivering long term sustainable growth Stronger international footprint WORLDWIDE PRESENCE Outstanding achievements • FY2019 Backlog* • Cumulated 2018-2019 Orders • i.e. NH90 in Qatar ca. € 30 bn • i.e. MH-139, TH-119 and MFoCS in US € 36.5 bn 12% • i.e. M345 in Italy
Slide 6: Long term sustainable growth underpinned by Customer Support, Services & Training
4Q/FY2019 Results Presentation Long term sustainable growth underpinned by Customer Support, Services & Training CUSTOMER SUPPORT & SERVICE (% of Group Revenues) Really valuable part of our business • Higher margin • Multi year revenue visibility 2017 2019 < 20% 22% Making significant progress at Gr
Slide 7: Delivering on long term sustainable growth
4Q/FY2019 Results Presentation Delivering on long term sustainable growth Strong focus on cost control and efficiencies • LEAP 2020 and Leonardo Production System launched, with results so far > € 200 mln 80% above target annualised reinvested • Continuous improvement identifying more opportunities
Slide 8: Clear targets in our priority sectors
4Q/FY2019 Results Presentation Clear targets in our priority sectors GLOBAL • World leader in Helicopters and in Simulation solutions & Training • Leader in Europe in Defence Electronics and reference partner for DoD and US primes • Key player in international cooperation programmes (i.e. Eurofighte
Slide 9: Clear view of the strategic path
4Q/FY2019 Results Presentation Clear view of the strategic path MASTER THE NEW STRENGTHEN TRANSFORM ACCELERATING OUR CORE TO GROW INNOVATION • Keep strong focus on our core to fuel • Adding new capabilities • Identify, develop, leverage, scale new growth • Leveraging these capabilities in a technolo
Slide 10: Strengthen our core
Strengthen our core Focus on top line growth & profitability improvement William J. «Bill» Lynn III CEO of Leonardo DRS Rome, 13 March 2020
Slide 11: Leonardo DRS – past performance an indicator of sustained success
4Q/FY2019 Results Presentation Leonardo DRS – past performance an indicator of sustained success • Predictable defence spending with emphasis on ‘near peer’ adversaries o 2020 Defence spending projects healthy 3% growth o Growth curve ‘flattens’ in 2021 & beyond but spending at historically high lev
Slide 12: US Defence spending
4Q/FY2019 Results Presentation US Defence spending DoD overview, priorities, and outlook Geopolitical trends assure strong DoD spending • Near peer threats require rapid fielding of capabilities in new domains • Persistent threats from recent conflict zones require resources, modernisation, and new
Slide 13: Leonardo DRS continuing to outperform US Defence market
4Q/FY2019 Results Presentation Leonardo DRS continuing to outperform US Defence market REVENUE TRENDS EXCEED LEONARDO DRS MULTI YEAR GROWTH US DEFENCE MARKET TREND > 2X INDUSTRY AVERAGE REVENUE TREND DRIVEN BY FAVORABLE MARKET POSITIONING AS A MID-TIER $ mln 2,729 The benefit of US market consolidat
Slide 14: Defence Electronics & propulsion key modernisation priorities
4Q/FY2019 Results Presentation Defence Electronics & propulsion key modernisation priorities ARMY DEFENCE ELECTRONICS MODERNISATION PRIORITIES Electrical Ground Electronic Soldier Force Network Power Vehicle Warfare & Lethality Protection Computing Generation Sensors Cyber and Propulsion Peer and ne
Slide 15: Alignment with Warfighter Needs Propelling Growth
4Q/FY2019 Results Presentation Alignment with Warfighter Needs Propelling Growth SOLID BACKLOG SIGNALS DRS AWARDS WITHIN DEFENCE ELECTRONICS SUSTAINED GROWTH & PROPULSION PRIORITIES • Trophy Active Protection Systems • 2nd and 3rd Generation FLIR 2019 BACKLOG POSITION • IR countermeasures Sensing •
Slide 16: Driving improving profitability
4Q/FY2019 Results Presentation Driving improving profitability DOUBLE DIGIT EBITA GROWTH MARGIN EXPANSION • 17.5% EBITA CAGR since 2016 – driving increased shareholder return • Increased EBITA margins drive improved free cash flow generation o Programme portfolio / required investments allow for abo
Slide 17: Key Takeaways
4Q/FY2019 Results Presentation Key Takeaways • Optimistic outlook for sustained growth o 2016-2019 multi year revenue and EBITA CAGR of 15.9% and 17.3% respectively confirm continued growth exceeding industry peers • Confident for sustained future growth over the Budget Plan period • In a stable bud
Slide 18: Customer satisfaction…our daily effort and ultimate goal
Strenghten the core Customer satisfaction…our daily effort and ultimate goal Gian Piero Cutillo MD Helicopters Rome, 13 March 2020
Slide 19: Customer satisfaction… our daily effort and ultimate goal
4Q/FY2019 Results Presentation Customer satisfaction… our daily effort and ultimate goal Helicopters Customer Centric approach enabling long term business sustainability 2019 IN A NUTSHELL… • Strong position in the civil market, reinforced through Kopter acquisition • Key achievements in military, a
Slide 20: Solid offer to respond to global market trends
4Q/FY2019 Results Presentation Solid offer to respond to global market trends Further increasing Customer satisfaction and intimacy GLOBAL MARKET TRENDS OUR RESPONSE Asset Business utilisation partnership SUCCESSFUL PRODUCT LINE • Dual Use platforms for full spectrum of missions Digital • Family con
Slide 21: Comprehensive product portfolio aimed at matching all mission needs
4Q/FY2019 Results Presentation Comprehensive product portfolio aimed at matching all mission needs Continuously capabilities improvements to satisfy the most demanding rotary wing requirements < 3.2 t >3.2t and < 10t Dual-use product SH09 portfolio SH09: fulfilling state-of-the-art products value pr
Slide 22: Our effective Customer centric approach… to an increasing fleet utilisation
4Q/FY2019 Results Presentation Our effective Customer centric approach… to an increasing fleet utilisation We are a business partner, not only Original Equipment Manufacturers CS&T MARKET OUTLOOK CUSTOMER CENTRIC SUPPORT & TRAINING OFFER 5,000+ helicopters in fleet FIRST CLASS PROCESSES DIGITAL SERV
Slide 23: Worldwide presence to be close to our Customers
4Q/FY2019 Results Presentation FIRST CLASS PROCESSES DIGITAL SERVICES GLOBAL REACH Worldwide presence to be close to our Customers Our global network assures direct access to our support and training services everywhere ADVANCED TRAINING SOLUTIONS SUPPORT & SERVICES NETWORK SERVICE CENTRES LOGISTIC
Slide 24: End-to-end support services thanks to streamlined processes
4Q/FY2019 Results Presentation FIRST CLASS PROCESSES DIGITAL SERVICES GLOBAL REACH End-to-end support services thanks to streamlined processes Well recognised by the market ADVANCED TRAINING SOLUTIONS WE ARE THE 1st HELICOPTERS MANUFACTURER IN PRODUCT SUPPORT, FOR THE 2nd YEAR IN A ROW Speed in Resp
Slide 25: Full set of Training solutions: to maximize Customer value
4Q/FY2019 Results Presentation FIRST CLASS PROCESSES DIGITAL SERVICES GLOBAL REACH Full set of Training solutions: to maximize Customer value Combining Advanced Simulation with Unparalleled Flexibility ADVANCED TRAINING SOLUTIONS TRAINING FOR THE WHOLE CREW… 1 1. Flight Training for air crew 2. Main
Slide 26: We boost the whole Customer value chain through digital services
4Q/FY2019 Results Presentation FIRST CLASS PROCESSES DIGITAL SERVICES GLOBAL REACH We boost the whole Customer value chain through digital services ADVANCED TRAINING SOLUTIONS Messaging & Diagnostics & Training Flight Assistance Web Support Communication Maintenance AW TRAINING SKYFLIGHT HERMES HELI
Slide 27: Real-time diagnostics to increase Safety
4Q/FY2019 Results Presentation Real-time diagnostics to increase Safety Co-developed with our Customers • Fast and clear alert messaging system • Reduced time to clear the helicopter for Sat/ GPS next flight • Prompt analysis during flight Cell/ WiFi WiFi ISAT Anticipate all maintenance decisions In
Slide 28: On track for sustainable growth
4Q/FY2019 Results Presentation On track for sustainable growth Successful product + excellent Customer Service offer = long run business sustainability • Customer Centric approach to meet Customers requirement to secure long term sustainability of the business • Focused investments to improve our va
Slide 29: Towards more efficient organisation
Transform to grow Towards more efficient organisation Norman Bone MD Electronics Rome, 13 March 2020
Slide 30: Agenda – Transform to Grow
4Q/FY2019 Results Presentation Agenda – Transform to Grow 1. The rationale – a reminder 2. The journey – so far 3. The Plan - update 4. The benefit © 2019 Leonardo - Società per azioni 30
Slide 31: Key messages
4Q/FY2019 Results Presentation Key messages TODAY • The global Defence Marketplace is evolving and consolidating o Political/Financial o Our transformation journey so far o Market o Industrial o Key elements to our strategy o Technology • Electronics is one of our biggest Divisions, addressing the l
Slide 32: Our strategy
4Q/FY2019 Results Presentation Our strategy OVERALL • Integrate the division & set strategy for growth, ensuring delivery of performance and synergies • “Empower” our people to increase our market share and improve our profitability FINANCIAL GOALS • Grow the division at above the market CAGR • Repo
Slide 33: Order Intake World Map 2020
4Q/FY2019 Results Presentation Order Intake World Map 2020 NATO / EU AFRICA LATINA AMERICA CENTRAL / EASTERN ASIA 4.0% 2.1% 0.9% OCEANIA 4.5% 0.4% FAR EAST 4.7% USA – 4.9% CANADA 24.0% ITALY TOP 3 REGIONS 1. EUROPE 11.8% MIDDLE-EAST 11.7% 2. MIDDLE EAST 11.7% 3. USA – CANADA 4.9% EUROPE 11.8% 14.4%
Slide 34: Focusing on Performance…
4Q/FY2019 Results Presentation Focusing on Performance… 1st February 2019 Leonardo creates a new Electronics division as shown below, which brings together the former: Electronics • Airborne and Space Systems division Norman Bone • Land and Naval Defence Electronics division • Defence Systems divisi
Slide 35: How we are transforming our business…
4Q/FY2019 Results Presentation How we are transforming our business… ORGANISED FOR PARTNERSHIPS BECOME MORE INTERNATIONAL COHERENT MARKET OFFERINGS MARKET CHANGE THE CULTURE PEOPLE EMPOWER OUR PEOPLE PROCESS DRIVE EFFICIENCIES ADDRESS THE COST BASE PROMULGATE BEST PRACTICE © 2019 Leonardo - Società
Slide 36: Our path to double digit profitability…
4Q/FY2019 Results Presentation Our path to double digit profitability… 2019 EBITA – ROS (%) Defence Systems Airborne & Space Systems (Italy) Overall Division Electronics (UK) RoS % TARGET Land and Naval Defence Electronics SIZE = REVENUES EBITA © 2019 Leonardo - Società per azioni Consistency of del
Slide 37: The Future - Tempest
4Q/FY2019 Results Presentation The Future - Tempest • Building from the Inside Out • In July 2018 the UK Government launched its Combat Air Strategy, delivering an ambitious vision for the future. The strategy confirmed the UK’s intent to remain at the cutting edge of combat air systems development
Slide 38: Key messages
4Q/FY2019 Results Presentation Key messages • The global Defence Marketplace is evolving and consolidating • Electronics is one of our biggest Divisions, addressing the largest part of the A&D market • Bringing Business Units together to make them stronger, through: o Internationalisation o Focus on
Slide 39: From product seller to solution provider
Transform to grow From product seller to solution provider Lucio Valerio Cioffi MD Aircraft Rome, 13 March 2020
Slide 40: Confirming strong growth, profitability and cash generation
4Q/FY2019 Results Presentation Confirming strong growth, profitability and cash generation • Comprehensive product range already in the market providing solid and profitable base STRONG BACKLOG REVENUES PROFITABILITY €10+bn €2.3bn 14% >10% +20%YoY CAGR (2018-2023) SOLIDLY • Clear strategy to transfo
Slide 41: Strong and comprehensive product range…
4Q/FY2019 Results Presentation Strong and comprehensive product range… • 550+ aircraft flying • Production strong ramp-up International Collaborations • 580,000 hours achieved • …..Additional opportunities (Fighters) EUROFIGHTER • Efa Kuwait Program JSF F-35 • MR&O Start-Up • Best in class Advanced
Slide 42: How we are transforming to grow – International Collaborations
4Q/FY2019 Results Presentation How we are transforming to grow – International Collaborations Solid, competitive and profitable in a long term growing market EUROPEAN DEFENCE OPPORTUNITIES TO REQUIREMENT LEVERAGE OUR PLATFORM • Networked Information Eurofighter Long Term • Air platform resiliency, E
Slide 43: How we are transforming to grow – delivering training solutions
4Q/FY2019 Results Presentation How we are transforming to grow – delivering training solutions Leader in a growing market thanks to our ability to deliver training solutions for next generation pilots worldwide OPPORTUNITIES TO BUILD OUR LEADERSHIP POSITION • Cost-effective training solutions M-346
Slide 44: Strong Outlook
4Q/FY2019 Results Presentation Strong Outlook • We have strongly delivered in 2019 • We have best-in-class solutions already in the market • We can exploit European and worldwide opportunities in a growing market (i.e. International Cooperations and Integrated Training Systems) • We are exploiting n
Slide 45: Leonardo’s future approach to Innovation
Master the new Leonardo’s future approach to Innovation Roberto Cingolani Chief Technology & Innovation Officer London, 13 March 2020
Slide 46: Summary
4Q/FY2019 Results Presentation Summary • Summary and short bio of the speaker • Role of the Chief Technology & Innovation Officer and Benchmark • Leonardo 2030 Masterplan: threefold strategy • Leonardo 2030 Masterplan: key actions • Conclusions About the speaker: Roberto Cingolani, born Dec.1961. De
Slide 47: Role of the CTIO and Benchmark
4Q/FY2019 Results Presentation ROLE OF THE CTIO The role of the CTIO is to improve the governance of the engineering and to inject innovation at different levels, from "gradual" optimisation to “game changing” technologies, contributing to a challenging and “sustainable Leonardo 2030” vision BENCHMA
Slide 48: Leonardo 2030 Masterplan: threefold strategy
4Q/FY2019 Results Presentation Leonardo 2030 Masterplan: threefold strategy 1. ENSURE DEVELOPMENT OF CURRENT 2. ENSURE INNOVATION TO ENVISAGE FUTURE KNOWHOW/PRODUCTS THROUGH PRODUCTS AND COMPETITIVE MARKETS 1. The assessment and reorganisation of the 1. Identify high-risk / high-return R&D network o
Slide 49: Leonardo 2030 Masterplan: the key actions
4Q/FY2019 Results Presentation 1 Leonardo 2030 Masterplan: the key actions → IDENTIFICATION OF THE INTERDIVISIONAL PROGRAMMES (VERSUS CLASS OF PRODUCTS) Aero Helicopters UMS Electronics Space Cyber Security ✔ ✔ ✔ ✔ ✔ ✔ Big Data Storage & Analysis HPC Design & Simulations ✔ ✔ ✔ ✔ ✔ ✔ Artificial Intel
Slide 50: Leonardo 2030 Masterplan: High Performance Computing and Big Data
4Q/FY2019 Results Presentation 2 Leonardo 2030 Masterplan: the key actions → A LARGE SCALE INFRASTRUCTURE FOR HIGH PERFORMANCE COMPUTING AND BIG DATA ANALYTICS 512 GPU > 10 Peta Flop Enhance Computational power for advanced + 20 PetaByte Storage A.I., HPC simulations aimed to product design, develop
Slide 51: Leonardo 2030 Masterplan: Intelligent Autonomous Systems
4Q/FY2019 Results Presentation 3 Leonardo 2030 Masterplan: the key actions → INTELLIGENT AUTONOMOUS SYSTEMS The embodyment of A.I. to obtain smart unmanned systems capable of «deciding and actuating», based on the unique integration of different Technology Platforms: 1. A.I., Deep learning and Machi
Slide 52: Robotics and autonomous systems market
4Q/FY2019 Results Presentation • Internet of Things (€ 210 bn in 2022) • Industry 4.0 (€ 40 bn investment till 2020) • Autonomous cars (> € 50 bn investment till 2020) • Space Robotic Market (€ 3.5 bn in 2025) • Flying, Land, Submarine drone market $ 140 bn nel 2020 THE SPACE COMPANY • Space X (Elon
Slide 53: Leonardo 2030 Masterplan: Aircraft Electrification
4Q/FY2019 Results Presentation 4 Leonardo 2030 Masterplan: the key actions → AIRCRAFT ELECTRIFICATION FUTURE TRENDS • Reduce Carbonisation • Increase short range regional transport • Develop urban mobility vehicles for 3D traffic • Devolp Swarm A.I. • Develop controls • Develop hybrid, electric and
Slide 54: The Norway case study
4Q/FY2019 Results Presentation The Norway case study: >70 airports and > 40 heliports. Average distance 150 km. Typical aircraft size: 10 to 40 seats Complete decarbonisation to be achieved by 2030 © 2019 Leonardo - Società per azioni 54
Slide 55: Leonardo 2030 Masterplan: Leonardo Corporate Labs
4Q/FY2019 Results Presentation 5 Leonardo 2030 Masterplan: the key actions → LEONARDO CORPORATE LABS Cascina Costa / Milan Electric Mob, HPC A network of corporate labs, to develop the interdivisional programmes, established Turin close to the production sites, Electric Mob hosting > 200 young HPC r
Slide 56: Long term targets
Delivering on promises Long term targets Alessandro Profumo Chief Executive Officer Rome, 13 March 2020
Slide 57: Doing what we said we would do, embracing new challenges ahead
4Q/FY2019 Results Presentation Doing what we said we would do, embracing new challenges ahead 2018-2019 ACHIEVEMENTS 2020-2024 TARGETS* Cumulated ca. € 30 bn Cumulated ca. € 80 bn ORDERS above Plan (€ 10 bn > than € 70 bn in 2018-2022 Plan) 8% CAGR 4% CAGR REVENUES above Plan confirming 5-6% growth
Slide 58: FY2019 Results & Outlook
Delivering on promises FY2019 Results & Outlook Alessandra Genco Chief Financial Officer Rome, 13 March 2020
Slide 59: In 2018 we presented a Plan setting the business up to win
4Q/FY2019 Results Presentation In 2018 we presented a Plan setting the business up to win – our journey so far Planting the seeds for growth… • We entered a new phase aimed at long term sustainable profitable growth • A lot was achieved in recent years: we have delivered on promises • We continue to
Slide 60: FY 2019 highlights
4Q/FY2019 Results Presentation FY 2019 highlights Met or beated 2019 targets on all metrics • Executed on our Industrial Plan • Delivered on OPERATING CASH GENERATION AND COMMERCIAL STRATEGY PERFORMANCE FINANCIAL STRATEGY • Orders € 14.1 bn • EBITA € 1,251 mln • FOCF € 241 mln (vs. € 12.5 - 13.5 bn
Slide 61: Order Intake
4Q/FY2019 Results Presentation Order Intake Continuous strong commercial momentum across the Group Driven by Aircraft (F- Driven by military Solid contribution from 35, M345, M346 FA (NH90 Spain, AW101 Electronics and and C-27J) and Poland and AW139 Leonardo DRS Aerostructures (B787 Italy MoD) and C
Slide 62: Revenues
4Q/FY2019 Results Presentation Revenues Strong growth across the Group CS&T and Driven by Leonardo Higher EFA Kuwait, military/governmental DRS. Positive USD/€ B787 and A220 offsetting lower civil effect production rates +5.6% +12.6% +17.1% +12.6% € mln YoY YoY YoY YoY 3,390 (332) 13,784 12,240 ca.
Slide 63: EBITA and Profitability
4Q/FY2019 Results Presentation EBITA and Profitability Higher performance across all businesses, with lower contribution from Space Manufacturing and ATR Volumes and mix Corporate Costs and Aircraft and Lower Manufacturing driven by military, Higher volumes in centralised activities Aerostructures m
Slide 64: From EBITA to Net Result
4Q/FY2019 Results Presentation From EBITA to Net Result Below the line benefitting from lower restructuring costs and PPA FY 2018 FY 2019 +11.7% +61.3% +61.2% YoY YoY YoY 1,120 1,251 (71) (137) (27) 1,153 (284) (98) 885 (147) (170) 100 822 715 (230) € mln € mln (64) 89 510 Restr. PPA Underlying ART.
Slide 65: Investments as foundation for future sustainable growth
4Q/FY2019 Results Presentation Investments as foundation for future sustainable growth INVESTMENTS • Innovative products and solutions o ATR 42-600 Short Take off and Landing (STOL) o Falco Xplorer AERONAUTICS o New single engine development SH09 post Kopter acquisition* HELICOPTERS • Addressing cus
Slide 66: On track to deliver material step up in FOCF
4Q/FY2019 Results Presentation On track to deliver material step up in FOCF FOCF (€ mln) 2018 – 2019 AHEAD OF PLAN 537 400 – 450 2020 ONWARD 336 241 Guidance STRONG UNDERLYING IMPROVEMENT Guidance of ca. 200 of ca. 100 WITH CLEAR DRIVERS FY2017A FY2018A FY2019A FY2020E FY2021E FY2022E FY2023E FY2024
Slide 67: Delivering more than promised: further strengthening our capital structure
Delivering more than promised: further strengthening our capital structure REDUCING GROSS DEBT(1) 2017 – 2019 2020 – 2022 • Reduced by ca. 20%, in line with target • Reduce by 15/20% o Only ca. 65% of expiring debt(2) refinanced o Plan to refinance only 50/60% of expiring debt € bn 4.6 - 3.7 Debt =
Slide 68: Significantly lower Cost of Funding, beating targets
Significantly lower Cost of Funding, beating targets LOWERING COST OF FUNDING DIVERSIFICATION 2017 – 2019 2020 – 2022 • Exploit different funding sources available in the market • Reduced by ca. 35%, vs. 25/30% • Reduce further by 15/20% target o Leveraging Leonardo’s solid credit and favorable mark
Slide 69: 2020 Guidance before Covid-19 impact
4Q/FY2019 Results Presentation 2020 Guidance before Covid-19 impact Despite the challenges in making forecasts in the current situation due to the COVID-19 emergency, Leonardo believes it is appropriate to provide Guidance in a continuity scenario, without including COVID-19 impacts FY2019A FY2020 G
Slide 70: Covid-19 impact
4Q/FY2019 Results Presentation Covid-19 impact • Leonardo acknowledges that COVID-19 will likely impact on the ordinary business • This is despite mitigating actions promptly put in place and aimed at preserving business and production continuity and fully ensuring health and safety of our employees
Slide 71: Key takeaway messages
Key takeaway messages Alessandro Profumo Chief Executive Officer Rome, 13 March 2020
Slide 72: Setting the business up to succeed in the long term
4Q/FY2019 Results Presentation Setting the business up to succeed in the long term • Clear view on our future • Fully committed to delivering as a Team • Full support from our institutional stakeholders • Delivering on our promises © 2019 Leonardo - Società per azioni 72
Slide 73: Q&A
Q&A © 2019 Leonardo - Società per azioni 73
Slide 74: Sector Results
SECTOR RESULTS © 2019 Leonardo - Società per azioni 74
Slide 75: Helicopters
4Q/FY2019 Results Presentation Helicopters Well positioned to capture market opportunities 4Q 2018 4Q 2019 % Change FY 2018 FY 2019 % Change € mln Orders 1,523 2,407 +58.0% 6,208 4,641 -25.2% Revenues 1,154 1,289 +11.7% 3,810 4,025 +5.6% EBITA 142 161 +13.4% 359 431 +20.0% RoS 4.9% 12.5% +7.6 p.p. 9
Slide 76: Helicopters
4Q/FY2019 Results Presentation Helicopters DELIVERIES BY PROGRAMME REVENUES BY CUSTOMER/SEGMENT FY2019 = 156 new units FY2019 AW169 AW189 /149 30 68% 4 63% 37% 32% 34 AW109 / AW119 / SW4 / AW009 69 AW139 /W3 11 26 NH90 AW101 Civil Military/Governamental OE CS&T/Other AW159 / Lynx AW FAMILY FY2018 =
Slide 77: Defence Electronics & Security
4Q/FY2019 Results Presentation Defence Electronics & Security Growing Revenues and Profitability ELECTRONICS - EU 2020 OUTLOOK* 4Q 2018 4Q 2019 % Change FY 2018 FY 2019 % Change € mln • Slight growth in revenues Orders 2,448 1,780 -27.3% 4,408 4,444 +0.8% Revenues 1,408 1,551 +10.2% 4,010 4,289 +6.%
Slide 78: Aeronautics
4Q/FY2019 Results Presentation Aeronautics Solid Aircraft performance 4Q 2018 4Q 2019 % Change FY 2018 FY 2019 % Change € mln Orders 1,149 776 -32.5% 2,569 2,788 +8.5% Revenues 871 1,086 +24.7% 2,896 3,390 +17.3% EBITA 161 197 +22.3% 328 362 +10.3% RoS 12.6% 18.1% +5.5 p.p. 11.3% 10.7% -0.6 p.p. 202
Slide 79: Space
4Q/FY2019 Results Presentation Space Pressure on Manufacturing 4Q 2018 4Q 2019 % Change FY 2018 FY 2019 % Change € mln EBITA 27 16 -40.7% 58 39 -32.8% 2020 OUTLOOK* • 2019 downsizing in Manufacturing affecting 2020 • Revenues in line with 2019 • Profitability expected to increase supported by gradua
Slide 80: Appendix
APPENDIX © 2019 Leonardo - Società per azioni 80
Slide 81: 4Q/FY 2019 Results
4Q/FY2019 Results Presentation 4Q/FY 2019 Results Group Performance 4Q 2018 4Q 2019 % Change FY 2018 FY 2019 % Change € mln New Orders 5,734 5,526 -3.6% 15,124 14,105 -6.7% Backlog 36,118 36,513 +1.1% Revenues 4,000 4,650 +16.3% 12,240 13,784 +12.6% EBITA 488 565 +15.8% 1,120 1,251 +11.7% RoS 12.2%
Slide 82: As promised, we refinanced only ≈ 65% of expiring debt
4Q/FY2019 Results Presentation As promised, we refinanced only ≈ 65% of 2017 – 2019 expiring debt (1) Debt Outstanding Debt Reimbursed Debt Issued Debt Outstanding in 2016: In 2017-2019: in 2017-2019: in 2019: - + = ≈ €4,6bn ≈ €2,3bn(2) ≈ €1,5bn(3) ≈ €3,7bn € mln …. (1) Including US Bonds tendered i
Slide 83: We reduced debt, while growing through M&A and remunerating shareholders
We reduced debt, while growing through M&A and remunerating shareholders CAPITAL DEPLOYMENT CASH FLOW € 0.8 bn GENERATED IN € 1.1 bn 2017-2019 € 0.4 bn PORTION OF CASH € 0.3 bn IN HANDS @2016YE € 0.2 bn Cash Flow while Gross Debt Dividends generation and aimed at and M&A(1) distributing reduction to
Slide 84: Solid Financial Position as end of December 2019
Solid Financial Position as end of December 2019 In € mil Bond Dollar Bond Euro EIB Term Loan CDP DEBT MATURITY Average life: ≈ 4,7 years (1) …. Repayment Conditions The Cassa Depositi e Prestiti (CDP) financing is characterised by a 6 year bullet repayment of New Debt Instruments CREDIT RATING * In
Slide 85: Availability of adequate committed liquidity lines
Availability of adequate committed liquidity lines as end of December 2019 € mln Undrawn at 31 December 2019 As of 31 December 2019 In order to cope with possible swings in financing needs, Leonardo can leverage: • 31 December cash balance of approx. € 2.0 bn • Credit lines worth € 2.5 bn (confirmed
Slide 86: Development costs capitalised as intangible assets
4Q/FY2019 Results Presentation Development costs capitalised as intangible assets as at 31 December 2019 Self Funded Self Funded Total € mln National Security Other 01 January 2019 Opening Balance 1,760 476 2,236 Gross R&D capitalised 204 66 270 Depreciation and write offs -102 -32 -134 Disposals 0
Slide 87: Current estimations on Helicopter market
4Q/FY2019 Results Presentation Current estimations on Helicopter market CIVIL REFERENCE MARKET GLOBAL MILITARY MARKET GLOBAL CS&T MARKET Market value of new western-built* helicopters ($bn) Total market value ($bn) Total market value ($bn) ~$3,5bn ~$15bn ~$20,0bn $3,4bn $14,2bn $19bn AW Family class
Slide 88: Safe Harbor Statement
4Q/FY2019 Results Presentation 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-loo
Slide 89: 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 89