Leonardo Spa · MIL:LDO
Leonardo Spa — Finmeccanica — Q1 2005 Earnings Presentation
19 slides from Leonardo Spa's earnings presentation, May 16, 2005
Slide 1: Finmeccanica Q1 2005 Results
Finmeccanica Q1 2005 Results Alessandro Pansa Co-General Manager John D Stewart VP Investor Relations Conference call - 16 May 2005
Slide 2: Content
Content ¾ Group overview ¾ Financial Highlights ¾ Operating performance by business division ¾ 2005/2006 Guidance ¾ Safe Harbour Statement 2
Slide 3: Group overview
Group overview 3
Slide 4: Group Overview
Group Overview ¾ FY2005 targets confirmed. ¾ Helicopters: – integration already started, Eur 50m Ebit improvement by end 2006 confirmed, first major rationalisation to be completed by June. – strong build up in UK and US orders. ¾ Defence Electronics: – acquired BAE activities and ready to play lead
Slide 5: Pursuing our strategic objectives
Pursuing our strategic objectives ¾ Defence Electronics: on 29 April, Finmeccanica acquired BAE defence electronics activities for Eur 515m. – Europe’s second largest avionics company formed: Selex Sensors and Airborne Systems grouping Galileo Avionica with BAE Systems Avionics Ltd. – Transfer to Fi
Slide 6: Financial Highlights
Financial Highlights 6
Slide 7: Q1 2005 Financial Highlights (Eur mln)
Q1 2005 Financial Highlights (Eur mln) 1Q 05 1Q 04 %change Revenues 2,159 2,000 +8 1,694 1,482 +14 of which A&D EBITA 62 36 +72 In % of revenues 2.9 1.8 of which A&D 77 44 +75 4.5 3.0 In % of revenues Net income (16) (35) n.s. New orders 2,771 1,252 n.s. 2,080 856 of which A&D March 05 December 04 W
Slide 8: Financial Highlights: Commentary
Financial Highlights: Commentary ¾ Helicopters, Aeronautics and Space drive improvement in operating profit. ¾ Order intake more than doubles (75% A&D) with significant opportunities ahead. ¾ Tax rate lower thanks to fiscal consolidation (saving of Eur 15m). ¾ Financial charges low thanks to STM hed
Slide 9: Operating performance by business division
Operating performance by business division 9
Slide 10: Aeronautics
Aeronautics Lower volumes reflect lower Eurofighter equipment deliveries. Increased core Eurofighter and C27J activity drive profit improvement. ¾ MoU signed with Greek MoD for industrial partnership on M346 military trainer programme. ¾ Positive outlook for C27J: (Euro mln) Q1 2005 Q1 2004 - 8 a/c
Slide 11: Helicopters
Helicopters Revenues increase thanks to 100% consolidation AgustaWestland. Product support activity drives improvement in profitability. Systems capability enhanced by acquisition of BAE avionics. ¾ US: - 101 selected for Presidential helicopter replacement contract ($1.8bn for 8 a/c). - Strongly po
Slide 12: Space
Space Revenues increase thanks to higher activity on CosmoSkymed and International Space Station programmes. Profitability improves thanks to benefits from previous restructuring and rationalisation measures. ¾ Italian MoD increasing its interest in military applications: manufacturing started on SI
Slide 13: Defence electronics
Defence electronics Slow start to year as expected with activity expected to ramp up during rest of the year. ¾ Good order intake: - Avionics: Eurofighter 2 tranche (Eur 145m); further large orders expected by end year for both Italian and UK business divisions. - Italian govt approves funding for F
Slide 14: Defence Systems
Defence Systems Fall in revenues reflects reduced missile activity. Reduced profitability due to less profitable mix in underwater with more focus on heavy torpedo development and one-off items in Q104 for armaments. MBDA benefits from ongoing rationalisation. ¾ Missiles: export markets remain diffi
Slide 15: Non-core activities
Non-core activities Transportation ¾ Transportation - Vehicles: profitability lower due to different contact mix and some technical delays. European demand broadly strong. - Signalling: profitability in line, good order intake (traffic mgt systems and high speed Madrid). Highest investments in Europ
Slide 16: 2005/2006 Guidance
2005/2006 Guidance 16
Slide 17: Guidance
Guidance 2005 2006 Revenue / annual change >20% >10% EBITA ~Eur 700m* ~Eur 800m Cumulative Free Operating Cash Flow of > Eur 600 mln in next 3 years (2005-07). Dividend policy: increase together with profits. Optimal capital structure: Net debt/Equity < 35-40%. Net bank debt/EBITDA <2.0. * Including
Slide 18: 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 19: IR Contacts
IR Contacts Investor Relations Finmeccanica: Piazza Monte Grappa 4, 00195 Rome – Italy E-mail: investor_relations@finmeccanica.it Website: www.finmeccanica.it John Douglas Stewart, Emilia Iannicelli, Vice President Investor Relations, IR Event Coordinator, tel. +39 06 32473.290 tel. +39 06 32473520