Leonardo Spa · MIL:LDO
Leonardo Spa — Finmeccanica — H1 2012 Earnings Presentation
29 slides from Leonardo Spa's earnings presentation, Jul 31, 2012
Slide 1: 2Q and 1H 2012 Results Presentation
2Q and 1H 2012 Results Presentation Giuseppe Orsi Chairman and CEO Gian Piero Cutillo CFO Rome, 31 July 2012 1
Slide 2: Presentation Outline
Presentation Outline Group overview Financial review Outlook & Summary Q&A Appendix 2
Slide 3: Presentation Outline
Presentation Outline Group overview Financial review Outlook & Summary Q&A Appendix 3
Slide 4: Finmeccanica is on track
Group Overview Finmeccanica is on track Encouraging start on the journey to Build a new Finmeccanica Strategic sectors performing well Well positioned to deliver Group guidance Remain focussed on the challenges ahead 4
Slide 5: Focus on the core
Group Overview Focus on the core International Manage for Strategic Sectors Partnerships Value Defence Space, Energy, Helicopters Aeronautics Electronics and Defence Systems Transportation Security Proportion of 68% of total orders 8% of total orders 24% of total orders the Group 72% of total revenu
Slide 6: Building a new Finmeccanica
Group Overview Building a new Finmeccanica More Execution on track and, in some areas, ahead Commercial approach vs cost plus approach, effective of plan going to market as a market High degree of confidence in delivery of 2012 Group approach and 2013 saving targets Focus on More strategic sectors c
Slide 7: Building momentum
Group Overview Building momentum • New orders up 13% organically 2Q/2Q • Improving profitability momentum through ongoing restructuring initiatives % Change 2Q vs 1Q Reflecting Positive Benefits of challenging momentum restructuring market established programme conditions 70% 65% ROS% 60% 50% • 2Q/1
Slide 8: Presentation Outline
Presentation Outline Group overview Financial review Outlook & Summary Q&A Appendix 8
Slide 9: Group performance
Financial Review Group performance Acceleration of benefits from the plans boosts delivery of improving results over the quarters of this year and increases Management confidence to reach set guidance 2Q ACTUAL 1H ACTUAL Total Organic Total Organic € Mln 2012 2011 2012 2011 Change Change* Change Cha
Slide 10: Helicopters
Financial Review Helicopters 2Q ACTUAL 1H ACTUAL € Mil 2012 2011 2012 2011 FY2012E Revenues 1,054 1,022 1,912 1,831 ~4,000 EBITA 131 107 219 188 ~425 ROS% 12.4% 10.5% 11.5% 10.3% Increased profitability driven by increased volumes and by restructuring initiatives rolled out at the end of last year R
Slide 11: Aeronautics
Financial Review Aeronautics 2Q ACTUAL 1H ACTUAL € Mil 2012 2011 2012 2011 FY2012E Revenues 733 733 1,318 1,297 2,700-2,800 EBITA 36 37 49 41 ~70 ROS% 4.9% 5.0% 3.7% 3.2% Improved profitability in 1H driven by ongoing restructuring (lower operating costs, higher industrial efficiency) Revenue growth
Slide 12: Defence Electronics and Security (pro-forma Unified SELEX)
Financial Review Defence Electronics and Security (pro-forma Unified SELEX) 2Q ACTUAL 1H ACTUAL € Mil 2012 2011 2012 2011 FY2012E Revenues 921 1,027 1,690 1,776 3,550-3,650 EBITA 55 47 81 90 ~260 ROS% 6.0% 4.6% 4.8% 5.1% Profitability slightly lower 1H/1H; strong recovery in 2Q driven by ongoing res
Slide 13: Defence Electronics and Security - DRS
Financial Review Defence Electronics and Security - DRS 2Q ACTUAL 1H ACTUAL $ Mil 2012 2011 2012 2011 FY2012E Revenues 683 805 1,354 1,609 2,790-2,940 EBITA 45 53 81 127 ~295 ROS% 6.6% 6.6% 6.0% 7.9% Recovering profitability Supported by ongoing restructuring initiatives and downsizing of workforce
Slide 14: Space
Financial Review Space 2Q ACTUAL 1H ACTUAL € Mil 2012 2011 2012 2011 FY2012E Revenues 244 261 462 480 ~1,000 EBITA 19 10 30 10 ~70 ROS% 7.8% 3.8% 6.5% 2.1% Improved profitability driven by higher profitability in both Manufacturing and Satellite Services and implementation of new efficiency measures
Slide 15: Defence Systems
Financial Review Defence Systems 2Q ACTUAL 1H ACTUAL € Mil 2012 2011 2012 2011 FY2012E Revenues 314 298 564 558 ~1,300 EBITA 39 37 54 49 ~140 ROS% 12.4% 12.4% 9.6% 8.8% 1H2012 Higher profitability mainly due to margin improvement in Underwater 2Q2012 Revenues up 5% spread over all segments Order inc
Slide 16: Energy 55%
Financial Review Energy 55%* 2Q ACTUAL 1H ACTUAL € Mil 2012 2011 2012 2011 FY2012E Revenues 167 163 306 309 ~800 EBITA 10 11 21 23 ~70 ROS% 6.0% 6.7% 6.9% 7.4% Steady performance Revenue mix impacting profitability Strong backlog with significant services component (55%) 16 (*) 2011 Results are rest
Slide 17: Ansaldo STS and AnsaldoBreda
Financial Review Ansaldo STS 2Q ACTUAL 1H ACTUAL € Mil 2012 2011 2012 2011 FY2012E Revenues 309 291 568 569 1,200-1,300 EBIT 29 27 51 52 ROS% (EBIT/ Revenues) 9.4% 9.2% 8.9% 9.2% ~9.5% AnsaldoBreda 2Q ACTUAL 1H ACTUAL € Mil 2012 2011 2012 2011 FY2012E 182 Revenues 182 178 359 332 650-750 EBITA -25 -
Slide 18: Focus on Cash
Financial Review Focus on Cash FY 2012 • 2H is key in order to hit FY2012 target (driven by annual seasonability of cash generation) • FY2012 target remains challenging as expected • Strong set of actions in place to reduce WC and keep investments under control • Monitoring carefully Defence Electro
Slide 19: Presentation Outline
Presentation Outline Group overview Financial review Outlook & Summary Q&A Appendix 19
Slide 20: 2012 Guidance and Trends for 2013
Outlook & Summary 2012 GUIDANCE AND TRENDS FOR 2013 Finmeccanica Group FY2011A FY2012E Trends for 2013 €mil Orders 17,434 ca. 17,500 Book to bill > 1 Revenues 17,318 16,900 – 17,300 Low single digit growth EBITA 878 ca. 1,100 EBITA margin >7% FOCF -358 >0 Materially growing YoY Net Financial debt 3,
Slide 21: Achievements So Far: Moving towards a Unified SELEX
Outlook & Summary Moving towards a Unified SELEX 2011 Revenues Strong domestic presence € 1.8 bn Selex Galileo Increased international penetration (Brazil, India, KSA, Malaysia, Australia) Unified Integrated suite of products and solutions € 1.2 bn Selex Elsag Selex More responsive to client require
Slide 22: Disposal update
Outlook & Summary Disposal update Disposal strategy Reconfirm commitment to dispose of less strategically placed assets Rationalising, focus and maximise value of our business portfolio Support structurally lower debt and strengthen balance sheet, pending recovery in cash flow generation growth, due
Slide 23: Summary
Outlook & Summary Summary Well positioned to deliver guidance, but focussed on the challenges ahead • Group proceeding to plan—some mix differences at a divisional level • Good visibility on H2 and backlog remains robust • Not immune to a challenging environment • Priority remains to build a new, co
Slide 24: Presentation Outline
Presentation Outline Group overview Financial review Outlook & Summary Q&A Appendix 24
Slide 25: Presentation Outline
Presentation Outline Group overview Financial review Outlook & Summary Q&A Appendix 25
Slide 26: Balanced Debt Structure
BALANCED DEBT STRUCTURE The debt has an average life of approx.10 years, thanks to the strategy pursued over the last two - three years aimed at extending the duration of financing instruments The Group's financial robustness is supported by: ̶ Long average debt life, which is aligned to the Group's
Slide 27: Strong Liquidity Position
STRONG LIQUIDITY POSITION In order to cope with possible volatilities in financial needs, Finmeccanica can leverage: – Year end cash balance of €1.3Billion Availability of – Credit lines worth €3.0 Billion, fully available at December 31th 2011 to finance adequate cash absorptions deriving from work
Slide 28: 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 29: Declaration of the officer in charge of accounting documents
The officer in charge of preparing the company’s accounting documents, Gian Piero Cutillo, hereby declares, in accordance with the provisions of Article 154-bis, paragraph 2, of the Consolidated Law on Financial Intermediation, that the accounting information included in this presentation correspond