Leonardo Spa · MIL:LDO
Leonardo Spa — Non-Deal Roadshow (September 2017)
33 slides from Leonardo Spa's roadshow presentation, September 2017
Slide 1: Leonardo Presentation to Sales Forces
Leonardo Presentation to Sales Forces London, September 2017
Slide 2: Key messages
Key messages Leonardo has been successfully executing a major turnaround Streamlining of business portfolio Focus on key Industrial processes One Company & Cultural change Today the Group is more able to play to some core strengths Among the top 10 A,D&S player worldwide Diversified markets and cust
Slide 3: One single operating company
One single operating company Leonardo is a global company in the high technology sector, and is one of the key actors in Aerospace, Defence and Security worldwide. We operate through: Helicopters Aircraft SUBSIDIARIES AND JOINT VENTURES Aerostructures DRS Technologies (Leonardo 100%) Teles
Slide 4: 2016 results: revenues, order backlog, new orders
2016 2015 REVENUES € Mln New Orders 19,951 12,371 46% ELECTRONICS, DEFENCE AND SECURITY SYSTEMS Backlog 34,798 28,793 12.0 30% HELICOPTERS 26% AERONAUTICS Revenues 12,002 12,995 3% OTHER ACTIVITIES -5% ELIMINATIONS EBITDA 1,907 1,866 EBITDA Margin 15.9% 14.4% ORDER BACKLOG EBITA 1,252 1,208 38% AERO
Slide 5: Clear priorities for Leonardo's sustainable leadership in the long term
Clear priorities for Leonardo’s sustainable leadership in the long term EXECUTION Project Relentless Management focus on efficiencies CUSTOMERS PRODUCTS Affordable and Commercial focused product approach and portfolio Culture relationships & Values Customer Customer Support & intimacy Service Cash I
Slide 6: Execution
Clear priorities for Leonardo’s sustainable leadership in the long term EXECUTION Project Relentless Management focus on efficiencies 6
Slide 7: Execution: what we delivered 2016 vs. 2013
Execution: what we delivered 2016 vs. 2013 Profitability EBITA +43% From €878mln to €1,252mln RoS +400bp From 6.4% to 10.4% SG&A -25% €1,278mln to €961mln Below the line Operating WC Investments Much lower volatility -13% + -56% -368% From ca. €6bn to ca €5.2bn From €962mln to €427mln From €809mln t
Slide 8: Finmeccanica in 2013
Finmeccanica in 2013* EBITA (€M) - EBITA% ROS% EBITA 8 *Space sector consolidated under the Equity Method
Slide 9: Leonardo today
Leonardo today* EBITA (€M) - EBITA% ROS% EBITA 9 *Space sector consolidated under the Equity Method
Slide 10: Customers and products
Clear priorities for Leonardo’s sustainable leadership in the long term CUSTOMERS PRODUCTS Affordable and Commercial focused product approach and portfolio relationships Customer Customer Support & intimacy Service 10
Slide 11: Helicopters
HELICOPTERS • WORLD CLASS BUSINESS AND KEY PLAYER IN THE MARKET • Extensive range of all the main helicopter weight categories (from 1.8 to 16 tonnes) and missions (dual use) • A family of helicopters (AW139, AW169, and AW189) with the 1H FY same design philosophy and the same certification and safe
Slide 12: Aeronautics – Aircraft & Aerostructures
AERONAUTICS – AIRCRAFT & AEROSTRUCTURES • INTERNATIONAL COLLABORATIVE PROGRAMMES − Eurofighter Typhoon, F-35 Lightning II. − European programmes nEUROn and MALE. • ABLE TO PROVIDE COMPLETE SOLUTIONS IN MILITARY TRAINING − trainer aircraft (SF-260, M-345 HET, M-346) − Ground Based Training System (GB
Slide 13: Electronics, Defence & Security Systems
ELECTRONICS, DEFENCE & SECURITY SYSTEMS • LARGEST CONTRIBUTOR TO GROUP RESULTS • EUROPEAN LEADERSHIP IN MILITARY DEFENC ELECTRONICS − Radars and sensors − On-board avionics − Electronic warfare systems • IMPRESIVE RESTRUCTURING AND SUCCESFUL TURNAROUND − Profitability improvement − Book-to-bill abov
Slide 14: Airborne & Space Systems
ELECTRONICS, DEFENCE & SECURITY SYSTEMS AIRBORNE & SPACE SYSTEMS • ISTAR solutions (Intelligence, Surveillance, Target Acquisition & Reconnaissance), and integrated mission systems (such as ATOS-Airborne Tactical Observation and Surveillance). • Radars and sensors (Seaspray and Osprey radars, based
Slide 15: Land & Naval Defence Electronics
LAND & NAVAL DEFENCE ELECTRONICS • C4I (Command, Control, Communications, Computer, Intelligence) solutions for Battlefield Management, Force Protection, Border, Territory & Maritime Control. • Naval Combat Management System (ATHENA). • Radar Systems: multifunctional electronically scanned array sys
Slide 16: Defence Systems
DEFENCE SYSTEMS • Land and naval artilleries (small, medium and large calibre); guided and conventional ammunition (DART and VULCANO family) of various calibres. • Unmanned ground, sea and underwater vehicles. • Armaments for military helicopters and aircraft. • Heavy and light weight torpedoes (Bla
Slide 17: Security & Information Systems
SECURITY & INFORMATION SYSTEMS • Air and Vessel Traffic Management and Control systems. • Systems for security and control of the territory, critical infrastructure, borders, major events (Milan Expo 2015). • Mobility solutions to support traffic and transport in urban areas. • Innovative cybersecur
Slide 18: DRS Technologies
DRS Technologies DRS Technologies, a US based subsidiary, is a leading supplier of integrated products, services and support to military forces, intelligence agencies and prime defence contractors worldwide. The offer includes: • thermal devices • power systems and marine propulsion • tactical commu
Slide 19: Space
SPACE STRATEGIC RELEVANCE WITHIN THE BUSINESS PORTFOLIO • Telespazio (67% Leonardo and 33% Thales). • Thales Alenia Space (67% Thales and 33% Leonardo). • Avio (space launcher and spacecraft propulsion) KEY ROLE IN MAJOR INTERNATIONAL PROGRAMMES: − Galileo − COSMO-SkyMed − Copernicus − SICRAL 1H FY
Slide 20: Financial discipline
Clear priorities for Leonardo’s sustainable leadership in the long term Cash Investment conversion Grade FINANCIAL DISCIPLINE 20
Slide 21: Credit rating update
Credit rating update Here below the current Credit Ratings assigned to Leonardo Agency Credit Rating Outlook Latest update Moody’s Ba1 Positive Outlook revised from Stable on 23 May 2017 Standard & Poor’s BB+ Stable Outlook revised from Negative on 28 Apr. 2015 Fitch BB+ Positive Outlook revised fro
Slide 22: FY2017 Guidance
FY2017 Guidance FY2016A FY2017E* Higher than 2016 (excluding Kuwait) still in a New orders € bn 20.0 12.0 – 12.5 context of challenging markets Stabilising and consolidating the current focus on Revenues € bn 12.0 ca. 12.0 the core business EBITA €mln 1,252 1,250 – 1,300 further improvement also in
Slide 23: Medium-Term Targets
Medium-Term Targets Development & Growth Book to bill at ca. 1x 2017-2021 Revenues CAGR of 3%-5% driven by new orders, despite challenging markets strong backlog (i.e. large orders in Aeronautics and Electronics expected to contribute by 2018) Continuous improvement in profitability, with RoS at 11%
Slide 24: Thank you for your attention
THANK YOU FOR YOUR ATTENTION www.leonardocompany.com
Slide 25: Appendix
APPENDIX 25
Slide 26: Financial position (as of end of June 2017)
Financial position (as of end of June 2017) FINANCIAL POSITION Bond 4.822 Bank Debt including EIB Loan 294 Cash Available (1.842) Other Financial Asset/Liabilities 303 3.577 (€mil) Average life: ≈ 6 years Debt maturity profile Dollar Bond Sterling Bond Euro Bond EIB 26
Slide 27: Liquidity position (as of end of June 2017)
Liquidity position (as of end of June 2017) In order to cope with possible swings in financing needs, Leonardo can leverage: – 30 June cash balance of approx. €1.8 Billion Availability of – Credit lines worth €2.7 Billion (confirmed and unconfirmed) adequate The Revolving Credit Facility was reneg
Slide 28: Development costs capitalised as intangible assets
Development costs capitalised as intangible assets at 31 december 2016 Self Funded Self Funded Total €mln National Security Other 01 Jan 2016 Opening Balance 1,437 520 1,957 Gross R&D capitalised 160 44 204 Depreciation and write offs -126 -65 -191 Disposals 0 0 0 Net R&D capitalised 34 -21 13 Recla
Slide 29: Helicopters revenues by customer/segment
Helicopters 2015 REVENUES BY CUSTOMER/SEGMENT 2016 REVENUES BY CUSTOMER/SEGMENT Military/Governmental CS&T /Other Military/Governmental CS&T /Other Commercial OE Commercial OE UNITS ORDERED UNITS DELIVERED 29
Slide 30: Eurofighter Kuwait contract
Eurofighter Kuwait contract Contract signed on April 5th 2016 for 28 Eurofighter in the most advanced configuration, including new E-Scan radar Leonardo as prime contractor will lead all activities on behalf of the Consortium. Our share is ca. 60% of total value (€ 7,95mln), remaining 40% is pass-th
Slide 31: Net Invested Capital streamlining
Net Invested Capital streamlining Target exceeded on investments and on track to deliver Working Capital reduction -13% Working Capital net of Customer Advances Customer Advances expected to decrease YoY (approx - On track to 6% per year), excluding EFA Kuwait deliver >15% reduction in Net of Custom
Slide 32: 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 33: Contacts
ir@leonardocompany.com Contacts www.leonardocompany.com/investors Raffaella Luglini EVP External Relations, Communication, Italian Insitutional Affairs, Investor Relations and Sustainability +39 06 32473.066 raffaella.luglini@leonardocompany.com Valeria Ricciotti Alessio Crosa Manuel Liotta Equity A