Leonardo Spa · MIL:LDO
Leonardo Spa — Q1 2022 Earnings Presentation
28 slides from Leonardo Spa's earnings presentation, May 5, 2022
Slide 1: 1Q 2022 Results Presentation
1Q 2022 Results Presentation Rome 5 May 2022
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 1Q22 Results
Slide 3: Good start to the year: progressing well with our plans
Good start to the year: progressing well with our plans First step to achieve our FY2022 Guidance • Back on a growth path GOOD START TO THE YEAR • Progressing well with our plans IN LINE WITH EXPECTATIONS • Order intake of € 3.8 bn, up 10.8% with no jumbo orders included • Backlog at € 36.3 bn • Rev
Slide 4: Strategic progress update: taking actions on portfolio
Strategic progress update: taking actions on portfolio Disposal of Global Enterprise Solutions and Advanced Acoustic Concepts Sale of GES Sale of AAC • Leonardo DRS signed a definitive agreement to • Leonardo DRS has signed a definitive agreement sell its Global Enterprise Solutions business to tran
Slide 5: Agenda
Agenda • Key messages Alessandro Profumo, Chief Executive Officer • Financial review Alessandra Genco, Chief Financial Officer • Q&A • Sector results • Appendix 5 © 2022 Leonardo - Società per azioni 1Q22 Results
Slide 6: 1Q 2022 Highlights
1Q 2022 Highlights • Strong commercial activity • Backlog at € 36.3 bn • Order intake of € 3.8 bn, up 10.8% with no jumbo orders included • Continued strong demand for our products supports growing top line • Revenues at € 3 bn, up 7.7% YoY • Profitability improving • EBITA at € 132 mln, up 38.9% Yo
Slide 7: Order Intake
Order Intake Commercially strong, reflecting continued strength of defence-governmental business € mln ∆ % YoY 1Q2021A 3,421 First order of AW609 (4 AW609 for a commercial flight operator); 6 AW189 for China Ministry of HELICOPTERS 863 0.9% Transport; 1 AW101 Japan Mid Life Upgrade (MLU) 1Q21 benefi
Slide 8: Revenues
Revenues Solid performance confirming growth path € mln ∆ % YoY 1Q2021A 2,790 Ramp-up mainly in NH90 Qatar and increased deliveries (19 in 1Q22 vs 13 in HELICOPTERS 923 16.5% 1Q21) ELECTRONICS EUROPE 955 2.6% In line with 1Q21 1Q21 benefitted from the postponement of some activities from 2020. Posit
Slide 9: EBITA and Profitability
EBITA and Profitability Improving Profitability € mln RoS ∆ % YoY 1Q2021A 95 3.4% HELICOPTERS 36 3.9% 16.1% Higher volumes, profitability in line with 1Q21 ELECTRONICS EUROPE 91 9.5% 15.2% Increase across all business areas, mainly in Defence Systems Confirmed margin expansion primarily driven by th
Slide 10: From EBITA to Net Result
From EBITA to Net Result Stronger bottom line thanks to EBITA increase 1Q 2021A 1Q 2022A +38.9% +64.0% n.m. YoY YoY YoY 132 -1 -2 -6 123 -30 95 -11 -19 -4 -5 75 -46 74 € mln € mln -31 -2 EBITA Non- Restructuring PPA EBIT Net financial Income taxes Net result recurring costs expenses EBITA Non-recurr
Slide 11: 2022 Guidance confirmed
2022 Guidance confirmed FY2022 FY2021A Guidance(1) New Orders (€ bn) 14.3 ca. 15.0 Revenues (€ bn) 14.1 14.5-15.0 EBITA (€ mln) 1,123 1,180-1,220(2) FOCF (€ mln) 209 ca. 500 Group Net Debt (€ bn) 3.1 ca.3.1(3) 2022 exchange rate assumptions: € / USD = 1.18 and € / GBP = 0.9 (1) Based on the current
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 1Q 22 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 1Q 22 Results
Slide 15: Helicopters
Helicopters Solid business with civil recovering 2018-2021 Results 1Q22 Results Orders (€ mln) Revenues (€ mln) EBITA (€ mln) and Profitability 6.208 4.025 3.972 4.157 3.810 10,7% 1Q 2022 1Q 2021 % Change 9,8% 4.641 4.494 9,6% € mln 4.370 9,4% 431 406 359 Orders 863 855 +0,9% 383 Revenues 923 792 +1
Slide 16: Helicopters
Helicopters DELIVERIES BY PROGRAMME REVENUES BY CUSTOMER/SEGMENT 1Q2022 = 19 new units 1Q2022 AW189 /149 8 AW109 / AW119 73% 2 63% AW169 2 37% 4 3 27% AW139 NH90 Civil Defence/Governamental OE CS&T/Other AW FAMILY 1Q2021 = 13 new units AW169 1Q2021 6 74% AW189 /149 59% 1 41% 2 AW109 / AW119 3 26% 1
Slide 17: Defence Electronics & Security
Defence Electronics & Security Growing Revenues and Profitability 2018-2021 Results 1Q22 Results ELECTRONICS - EU Orders Revenues EBITA and Profitability 5.392 4.519 € mln 1Q 2022 1Q 2021 % Change 4.289 4.147 4.710 4.011 1,489 1,544 -3.6% 4.409 4.444 Orders 10,7% 10,0% Revenues 955 931 +2.6% 2.879 9
Slide 18: Aircraft
Aircraft Solid performance 2018-2021 Results 1Q22 Results Orders (€mln) Revenues (€mln) EBITA (€mln) and Profitability 2.668 3.268 2.634 13,2% 1Q 2022 1Q 2021 % Change 2.031 2.329 € mln 1.904 13,5% 1.700 13,7% 432 1.932 13,8% Orders 781 595 +31.3% 355 266 320 Revenues 571 510 +12.0% EBITA 52 47 +10.
Slide 19: Aerostructures and ATR
Aerostructures and ATR Gradual recovery 2018-2021 Results 1Q22 Results Aerostructures € mln 1Q 2022 1Q 2021 % Change Orders (€mln) Revenues (€mln) EBITA (€mln) and Profitability Orders 94 36 +161.1% 925 948 1.125 Revenues 123 111 +10.8% 1.020 97 EBITA -46 -46 0.0% 819 53 RoS -37.4% -41.4% +4.0 p.p.
Slide 20: Space
Space Recovery of Manufacturing and confirmed solid performance of Satellite services 2018-2021 Results 1Q22 Results EBITA (€mln) 1Q 2022 1Q 2021 % Change 58 62 € mln EBITA 7 3 +133,3% 39 23 2018 2019 2020 2021 2022 Outlook(*) • Growing volumes driven by increased backlog and profitability improveme
Slide 21: Agenda
Agenda • Key messages Alessandro Profumo, Chief Executive Officer • Financial review Alessandra Genco, Chief Financial Officer • Q&A • Sector results • Appendix 21 © 2022 Leonardo - Società per azioni 1Q22 Results
Slide 22: 1Q 2022 Results
1Q 2022 Results Group Performance 1Q 2022 1Q 2021 % Change FY 2021 € mln New Orders 3,789 3,421 10.8% 14.307 Backlog 36,278 36,414 -0.4% 35.534 Revenues 3,006 2,790 7.7% 14.135 EBITA 132 95 38.9% 1.123 RoS 4.4% 3.4% 1.0 p.p. 7.9% EBIT 123 75 64.0% 911 EBIT Margin 4.1% 2.7% 1.4 p.p. 6.4% Net result b
Slide 23: Backlog and revenues by Geography
Backlog and revenues by Geography 1Q22 REVENUES € 3.0 bn REST OF WORLD 22% UK 16% UK 13% REST OF WORLD 22% ITALY 29% REST OF EUROPE 15% REST OF EUROPE 23% ITALY 22% NORTH AMERICA 13% 1Q22 BACKLOG* € 36.3 bn NORTH AMERICA 25% 23 © 2022 Leonardo - Società per azioni 1Q 2022 Results
Slide 24: Solid Group liquidity ensures adequate financial flexibility
Solid Group liquidity ensures adequate financial flexibility • Available credit lines • New ESG Credit Line signed in October 2021 equal to € 2.4 bn • Existing credit lines unconfirmed equal to € 1.0 bn together with cash in-hands ensure a Group’s liquidity of approx. € 3.8 bn €3.8bn €1.0bn €2.4bn €
Slide 25: Balanced debt maturity profile
Balanced debt maturity profile Bond Dollar Bond Euro In € mil EIB Term Loan CDP DEBT MATURITY Average life: ≈ 4,6 years …. CREDIT RATING As of today Before last review Date of review Moody’s Ba1 / Stable Outlook Ba1 / Positive Outlook October 2018 S&P BB+ / Positive Outlook BB+ / Stable Outlook May
Slide 26: Covenants FY2021
Covenants FY2021 FY2021A FY2021A Post IFRS 16 Post IFRS 16 EBITDA* € 1,538 mln Group Net Debt € 3,122 mln Net Interest € 138 mln Leasing (IFRS 16) - € 568 mln Financial Debt to MBDA - € 664 mln Group Net Debt for Covenant € 1,890 mln EBITDA* € 1,538 mln EBITDA / Net Interest 11.1 Group Net Debt / EB
Slide 27: 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 28: 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 28 © 2022 Leonardo - Società per azioni