Leonardo Spa · MIL:LDO
Leonardo Spa — Finmeccanica — Q1 2008 Earnings Presentation
19 slides from Leonardo Spa's earnings presentation, May 13, 2008
Slide 1: Finmeccanica First Quarter 2008 Results Presentation
Finmeccanica First Quarter 2008 Results Presentation London, 13 May 2008
Slide 2: Safe Harbour Statement
Safe Harbour 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
Slide 3: Q1 2008 Financial Highlights
Q1 2008 Financial Highlights • Revenues up 6% to € 2.9bn, driven by Aeronautics, Space and Transport • Ebita adj.* up 13% to € 133mln, due to Helicopters ( +18%), Defence Electronics (+31%) and Defence Systems • Net income, excluding capital gain from STM share sale (€54 mln) increases by €53 mln, m
Slide 4: Main Financial Results
Main Financial Results (Eur mln) 1Q 08 1Q 07 %change FY 07 Revenues 2,916 2,740 6% 13,429 EBITA Adj.* 133 118 13% 1,045 EBITA Adj.* Margin 4.6% 4.3% 0.3 p.p. 7.8% Net income 126 19 n.s. 521 Excluding capital gain 72 EPS Adj. (eurocents) 15 3 - 110 New orders 3,292 2,430 35% 17,916 Working Capital 12
Slide 5: Recent Events
Recent Events • New assembly line for the AW139 inaugurated in Philadelphia – 19 February • Finmeccanica wins $100 million contract to equip new Airbus A350 XWB – 25 February • Ansaldo Energia signs two contracts with Atel worth over €500 million – 13 March • Finmeccanica and Poste Italiane, partner
Slide 6: Business Division Review
a) “7 FINMECCANICA Business Division Review
Slide 7: Helicopters
Helicopters ¾ ¾ Margin Margin growth growth mainly mainly due due to to increase increase in in production production volumes volumes for for civil civil ¾ ¾ Order Order growth growth both both in in commercial commercial and and military-government: military-government: (€mln) Q1 08 Q1 07 %change A
Slide 8: Defence Electronics
Defence Electronics ¾ ¾ Order Order growth growth (71%) (71%) driven driven by by Information Information Technology Technology and and Security, Security, and and command command and and control control systems systems on on FREMM FREMM ¾ ¾ Ebita Ebita adj.* adj.* up up to to 21 21 mln mln from fro
Slide 9: Aeronautics
Aeronautics ¾ ¾ Revenue Revenue growth growth driven driven by by ATR, ATR, B787 B787 for for civil civil and and C27J, C27J, EFA EFA for for military military ¾ ¾ Margin Margin weaker weaker mainly mainly due due to to mix mix and and to to slight slight slippage slippage in in (€mln) Q1 08 Q1 07 %
Slide 10: Space
Space ¾ ¾ Orders Orders up up 74%, 74%, mainly mainly due due to to Manufacturing Manufacturing ¾ ¾ Revenues Revenues up up 22% 22% due due to to higher higher production production both both in in Manufacturing Manufacturing and and Services Services (Sicral (Sicral 1B, 1B, Cosmo, Cosmo, GMES GMES
Slide 11: Defence Systems
Defence Systems ¾ ¾ Orders Orders boosted boosted by by exports exports in Missiles Missiles to to supply supply air air defence defence systems systems SPADA SPADA toto Pakistan; Pakistan; additional additional FREMM FREMM orders orders (€mln) Q1 08 Q1 07 %change ¾ ¾ Margins Margins improve improve
Slide 12: Civil Activities
Civil Activities Transport Transport Transport ¾ ¾ Good Good performance performance for for Signalling Signalling and and Systems; Systems; significant significant improvement improvement in in Vehicles Vehicles (€mln) Q1 08 Q1 07 %change Revenues 365 330 11% ¾ ¾ Ebita Ebita adj.* adj.* up up 90% 9
Slide 13: Guidance Confirmed (without DRS impact)
Guidance Confirmed (without DRS impact) 2008 2009 Revenues € 14.25 – 14.9bn € 15.1 – 15.9bn EBITA € 1,170 – 1,240mn € 1,300 – 1,420mn Cumulative FOCF* 2008-2010 €1.3–1.5bn; 2008 in line with 2007 Dividend policy: increase together with profits Optimal capital structure: Net debt/Equity <35-40%
Slide 14: Appendix
S, “7 FINMECCANICA APPENDIX 14
Slide 15: 1Q 2008 Results – Profit & Loss
1Q 2008 Results – Profit & Loss CONSOLIDATED PROFIT AND LOSS ACCOUNT 1Q 2008 1Q 2007 Change % €mil. Revenues 2.916 2.740 6% Costs for purchases and personnel (2.670) (2,522) (**) Depreciation and amortisation (98) (99) Writedowns (4) (4) Other net operating revenues (costs) (11) 3 EBITA Adj ( *) 133
Slide 16: Balance Sheet
Balance Sheet BALANCE SHEET €mil. 31.03.2008 31.12.2007 Non-current assets 9.493 9.845 Non-current liabilities (2.508) (2.562) 6.985 7.283 Inventories 3.580 3.383 Trade receivables 7.752 7.546 Trade payables (10.112) (10.481) Provisions for short-term risks and charges (530) (545) Other current net
Slide 17: Cash Flow
Cash Flow CASH FLOW €mil. 1Q 2008 1Q 2007 Cash and cash equivalents at 1 January 1.607 2.003 Gross cash flow from operating activities 285 263 Changes in other operating assets and liabilities (217) (211) Funds From Operations (FFO) 68 52 Changes in working capital (723) (839) Cash flow generated fr
Slide 18: Divisions
Divisions 1Q 2008 Helicopters Defence Aeronautics Space Defence Energy Transport Other Activities Eliminations Total (EUR million) Electronics Systems and Corporate Revenues 713 677 491 203 247 229 365 64 (73) 2.916 EBITA* 85 21 19 3 18 14 19 (46) 133 EBITA* margin (%) 11,9% 3,1% 3,9% 1,5% 7,3% 6,1%
Slide 19: IR Contacts
IR Contacts Investor Relations Finmeccanica investor_relations@finmeccanica.com Website: http://www.finmeccanica.com/Investor Relations John D. Stewart Raffaella Luglini VP Investor Relations Investor Relations Officer +39 06 32473.290 +39 06 32473.066 john.stewart@finmeccanica.com raffaella.luglini