Leonardo Spa · MIL:LDO
Leonardo Spa — UniCredit Italian Investment Conference 2021
27 slides from Leonardo Spa's conference presentation, May 20, 2021
Slide 1: UniCredit Italian Investment Conference
UNICREDIT Italian Investment Conference Alessandro Profumo Chief Executive Officer Alessandra Genco Chief Financial Officer Rome, 20 May 2021
Slide 2: Agenda
Agenda > Key messages Chief Executive Officer > 1Q 2021 Results Chief Financial Officer > Sector Results > Appendix © 2019 Leonardo - Società per azioni 2
Slide 3: Solid start to the year: progressing well with our plans
1Q2021 Results Presentation Solid start to the year: progressing well with our plans First step to achieve our FY2021 Guidance BACKLOG* € 36.4 bn ORDERS € 3.4 bn 17% 24% LEVERAGING OUR • Benefitting from the 30% 14% 26% BACKLOG resilience of 19% 12% 59% IN A COMPLEX GLOBAL military/governmental and
Slide 4: Strategic progress update
1Q2021 Results Presentation Strategic progress update Taking actions on portfolio AEROSTRUCTURES • Proactive review of options to accelerate transformation and address structural issues REVIEW • Including rationalising industrial sites; investing to increase efficiency/flexibility; headcount reducti
Slide 5: Leonardo and HENSOLDT Strategic partnership
1Q2021 Results Presentation Strategic progress update Leonardo and HENSOLDT Strategic partnership Key transaction terms Access to a wider international customer base • Leonardo to acquire a 25.1% stake in German HENSOLDT from KKR • Total purchase consideration of €606 million • Establishment of a ne
Slide 6: Key business strengths
1Q2021 Results Presentation Key business strengths Confidence in the medium and long term potential in our main businesses Helicopters Defence Electronics Aircraft Electronics • Demonstrated strength in current conditions • Strong order book • Structurally strong business • Well balanced in military
Slide 7: Agenda
Agenda > Key messages Chief Executive Officer > 1Q 2021 Results Chief Financial Officer > Sector Results > Appendix © 2019 Leonardo - Società per azioni 7
Slide 8: 1Q 2021 highlights
1Q2021 Results Presentation 1Q 2021 highlights Confirming growing path • Continued strong demand for our products supports growing top line • Backlog at € 36.4 bn • Order intake of € 3.4 bn, flat YoY, with no jumbo orders included • Revenues at € 2.8 bn, up 7.7% YoY • Recovery in profitability • EBI
Slide 9: Order Intake
1Q2021 Results Presentation Order Intake Commercially strong, reflecting continued strength of domestic military / governmental business € mln ∆ % YoY 1Q2020A 3,421 YoY performance decrease due to IMOS contract booked in 1Q20. New orders HELICOPTERS 855 -42.6% in 1Q21 for the supply of 36 TH-73A (AW
Slide 10: Revenues
1Q2021 Results Presentation Revenues Solid performance confirming growing path € mln ∆ % YoY 1Q2020A 2,591 HELICOPTERS 792 +12.5% Ramp-up in military/governmental (NH90 Qatar and TH-73A US Navy) ELECTRONICS EUROPE* 931 +10.0% Strong increase across all business areas LEONARDO DRS* 565 +8.0% Consider
Slide 11: EBITA and Profitability
1Q2021 Results Presentation EBITA and Profitability Improving profitability across the business; COVID-19 affecting Aerostructures € mln (RoS) RoS ∆ % YoY 1Q2020A 41 1.6% HELICOPTERS 31 3.9% +72.2% Higher volumes and improved industrial efficiency ELECTRONICS EUROPE 79 8.5% +71.7% Higher volumes and
Slide 12: From EBITA to Net Result
1Q2021 Results Presentation From EBITA to Net Result Net Result benefitting from EBITA increase 1Q 2020A 1Q 2021A -74.8% -80.8% -176.6% +131.7% +150.0% +96.6% YoY YoY YoY YoY YoY YoY 41 -4 30 95 -11 -7 -50 -4 -59 -5 75 -46 € mln € mln -31 -8 -31 -2 EBITA Restructuring PPA EBIT Net financial Exchange
Slide 13: Strong liquidity position at ca. € 4.2 bn
1Q2021 Results Presentation Strong liquidity position at ca. € 4.2 bn • Cash availability and credit facilities ensure a Group’s liquidity above € 4.2 bn • Existing credit lines (confirmed and unconfirmed) equal to € 2.6 bn • Credit Line signed in May 2020 equal to € 1.25 bn(1) €1.25bn €4.2bn €0.8bn
Slide 14: 2021 Guidance confirmed
1Q2021 Results Presentation 2021 Guidance confirmed Assuming progressive improvement in the global health situation through the year with consequent normalization of operating / market conditions 2021E FY2021 FY2020A • Military/governmental business robust and resilient Guidance New Orders (€ bn) 13
Slide 15: Closing remarks
1Q2021 Results Presentation Closing remarks • Continued good commercial progress with continuous order intake distributed across the Group • Confirmed growth path in revenues • Solid industrial performance • Robust profitability • Cash flow in line with plan • Progress towards ESG Goals: ESG targets
Slide 16: Q&A
Q&A © 2019 Leonardo - Società per azioni 16
Slide 17: Sector Results
SECTOR RESULTS © 2019 Leonardo - Società per azioni 17
Slide 18: Helicopters
1Q2021 Results Presentation Helicopters DELIVERIES BY PROGRAMME 1Q 2021 1Q 2020 % Change FY 2020 € mln 1Q2021 = 13 new units Orders 855 1,486 -42.5% 4,494 AW169 6 Revenues 792 704 +12.5% 3,972 1 AW189 /149 EBITA 31 18 +72.2% 383 2 AW109 / AW119 3 1 RoS 3.9% 2.6% +1.3 p.p. 9.6% AW139 NH90 REVENUES BY
Slide 19: Defence Electronics & Security
1Q2021 Results Presentation Defence Electronics & Security ELECTRONICS – EU 1Q 2021 1Q 2020 % Change FY 2020 € mln Orders 1,544 862 +79.1% 4,710 Revenues 931 846 +10.0% 4,147 2021 OUTLOOK* EBITA 79 46 +71.8% 360 • Slight growth in revenues recovering 2020 RoS 8.5% 5.4% +2.6 p.p. 8.7% pandemic slow d
Slide 20: Aeronautics
1Q2021 Results Presentation Aeronautics AIRCRAFT 1Q 2021 1Q 2020 % Change FY 2020 € mln Orders 595 515 +15.5% 2,031 Revenues 510 431 +18.3% 2,634 2021 OUTLOOK* EBITA 47 26 +80.8% 355 • Aircraft production increase driven by RoS 9.2% 6.0% +3.2 p.p. +13.5% EFA Kuwait, F35 and proprietary AEROSTRUCTURE
Slide 21: Space
1Q2021 Results Presentation Space 1Q 2021 1Q 2020 % Change FY 2020 € mln EBITA 3 -2 +250.0% 23 2021 OUTLOOK* • Volumes an profitability expected to increase supported by gradual recovery of manufacturing • Confirmed solid performance of satellite services *In absence of further worsening of the pand
Slide 22: Appendix
APPENDIX © 2019 Leonardo - Società per azioni 22
Slide 23: 1Q 2021 Results
1Q2021 Results Presentation 1Q 2021 Results Group Performance 1Q 2021 1Q 2020 % Change FY 2020 € mln New Orders 3,421 3,421 - 13.754 Backlog 36,414 37,000 -1.6% 35.516 Revenues 2,790 2,591 +7.7% 13.410 EBITA 95 41 +131.7% 938 RoS 3.4% 1.6% +1.8 p.p. 7% EBIT 75 30 +150% 517 EBIT Margin 2.7% 1.2% 1.5
Slide 24: Balanced debt maturity profile
1Q2021 Results Presentation Balanced debt maturity profile No refinancing needs until 2022 In € mil Bond Dollar Bond Euro EIB Term Loan DEBT MATURITY CDP Average life: ≈ 4,7 years CREDIT RATING As of today Before last review Date of review Moody’s Ba1 / Stable Outlook Ba1 / Positive Outlook October
Slide 25: Covenant
1Q2021 Results Presentation Covenant FY2020A FY2020A Post IFRS 16 Post IFRS 16 EBITDA* € 1,378 mln Group Net Debt € 3,318 mln Net Interest € 168 mln Leasing (IFRS 16) - € 555 mln Financial Debt to MBDA - € 663 mln Group Net Debt for Covenant € 2,100 mln EBITDA* € 1,378 mln EBITDA / Net Interest 8.2
Slide 26: Safe Harbor Statement
1Q2021 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-lookin
Slide 27: 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 27
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