Leonardo Spa · MIL:LDO
Leonardo Spa — Finmeccanica — 9M 2007 Earnings Presentation
18 slides from Leonardo Spa's earnings presentation, Nov 13, 2007
Slide 1: Finmeccanica Nine Month 2007 Results Presentation
Finmeccanica Nine Month 2007 Results Presentation Alessandro Pansa Co-Director General/CFO John D. Stewart VP Investor Relations Rome, 13 November 2007
Slide 2: 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
Slide 3: 9M 2007 Financial Highlights
9M 2007 Financial Highlights • Revenues up 7% to Eur 9.1bn • Ebit up 3% to Eur 484 m • Ebita* up 6% to Eur 502m • Pre-extraordinary net profit up 51% to Eur 294m • ROI rose to 13.7% • Net debt rose to Eur 2,485m due to investment and seasonal increase in working capital 3 *EBIT before amortisations
Slide 4: 9M and 3Q 2007 Main Economic Results
9M and 3Q 2007 Main Economic Results (Eur mln) 9M 07 Change % 9M 06 3Q 07 Change % 3Q 06 Revenues 9,117 7% 8,524 3,047 8% 2,818 EBITA* 502 6% 472 178 7% 167 Margin 5.5% 5.5% 5.8% 5.9% EBIT 484 3% 472 172 3% 167 Margin 5.3% 5.5% 5.6% 5.9% Net Income 294 (52%) 612 117 216% 37 Excluding capital gain 51
Slide 5: Main Financial Results
Main Financial Results (Eur mln) 30/09/2007 31/12/2006 30/9/2006 30/6/2007 Net working capital 764 (434) 894 531 FOCF (1,432) 506 (1,149) (1,224) Net financial debt 2,485 858 2,184 2,268 Debt/Equity 46% 16% 44% 42% ROI 13.7% 17,7% 13,1% 14,8% EVA - 61 257 -70 - 32 5
Slide 6: Guidance for 2007 and 2008 on track
Guidance for 2007 and 2008 on track 2007 2008 Revenues €13.1-13.7bn €14-14.7bn (not Value of Production) EBIT €950-1,000mln €1,050-1,170mln • Average Free Operating Cash Flow per Year (2006-08) of ca. €300 mln • Dividend policy: increase together with profits • Optimal capital structure: Net debt/Eq
Slide 7: Business Review
, “7 FINMECCANICA Business Review
Slide 8: Helicopters: positive outlook confirmed
Helicopters: positive outlook confirmed (Euro mln) 9M 07 Change% 9M 06 Q3 07 Change% Q3 06 3Q 03 Revenues 2,084 7% 1,949 610 (1%) 616 EBITA* 219 20% 183 65 35% 48 EBITA* Margin 10.5% - 9.4% 10.7% - 7.8% Orders 2,084 (37%) 3,328 614 21% 507 • US offshore orders for AW139 in Q3 reflect strong demand f
Slide 9: Defence Electronics: performance improves
Defence Electronics: performance improves (Euro mln) 9M 07 Change% 9M 06 Q3 07 Change% Q3 06 Revenues 2,462 1% 2,444 857 10% 776 EBITA * 129 3% 125 45 73% 26 EBITA* Margin 5.2% - 5.1% 5.3% - 3.4% Orders 2,336 6% 2,195 542 0% 541 • Eurofighter avionic and TETRA programmes progressing well • Revenue i
Slide 10: Aeronautics: on track and performing well in both civil and military
Aeronautics: on track and performing well in both civil and military (Euro mln) 9M 07 Change% 9M 06 Q3 07 Change% Q3 06 Revenues 1,496 13% 1,329 545 10% 496 EBITA* 106 (8%) 115 42 (22%) 54 EBITA* Margin 7.1% - 8.7% 7.7% - 10.9% Orders 1,532 7% 1,427 384 50% 256 - • Civil order flow in Q3 sustained b
Slide 11: Space: good performance in Q3
Space: good performance in Q3 (Euro mln) 9M 07 Change% 9M 06 Q3 07 Change% Q3 06 Revenues 593 14% 519 216 26% 172 EBITA* 23 5% 22 11 83% 6 EBITA* Margin 3.9% - 4.2% 5.1% - 3.5% Orders 545 6% 515 220 20% 184 • Q3 higher order intake driven by satellite services in both civil and military • Backlog no
Slide 12: Defence Systems: restructuring impacts profitability
Defence Systems: restructuring impacts profitability (Euro mln) 9M 07 Change% 9M 06 3Q 07 Change% 3Q 06 Revenues 719 (1%) 728 222 (5%) 234 EBITA* 32 (16%) 38 7 (56%) 16 EBITA* Margin 4.5% - 5.2% 3.2% - 6.8% Orders 446 (10%) 496 180 14% 158 Including 25% of MBDA and 100% of Oto Melara and WASS • Orde
Slide 13: Transport: benefiting from investments in Italian urban infrastructure
Transport: benefiting from investments in Italian urban infrastructure (Euro mln) 9M 07 Change %9M 06 3Q 07 Change % 3Q 06 Revenues 1,054 6% 999 329 4% 315 EBITA* 15 (62%) 39 (1) n.s. 12 Transportation EBITA* Margin 1.4% 3.9% n.s. - 3.8% Orders 1,329 (24%) 1,738 734 23% 595 3Q 06 • Benefits in Q3 fr
Slide 14: Energy: benefiting from buoyant export market
Energy: benefiting from buoyant export market 9M 07 Change % 9M 06 3Q 07 Change % 3Q 06 Revenues 751 19% 631 274 25% 220 EBITA* 46 21% 38 16 (20%) 20 Energy EBITA* Margin 6.1% - 6% 5.8% - 9.1% Orders 1,351 82% 741 752 n.s. 65 • New contracts in Q3 for large power generation contracts in Algeria, Rus
Slide 15: Appendix
, “7 FINMECCANICA Appendix 15
Slide 16: Development costs capitalised in Intangible Assets at 9M 2007
Development costs capitalised in Intangible Assets at 9M 2007 Eur Mln Fundable through government grants Self Funded Total 1 Jan 2007 Opening balance 693 284 977 Reclassified from inventories - - - Investments after 300 98 398 depreciation* Other movements (4) 2 (2) 30 Sept. closing balance 989 384
Slide 17: Development costs capitalised in Intangible Assets at 3Q 2007
Development costs capitalised in Intangible Assets at 3Q 2007 Eur Mln Fundable through government grants Self Funded Total 30 June 2007 895 346 1,241 Reclassified from inventories - - - Investments after depreciation* 95 38 133 Other movements (1) - (1) 30 Sept. 2007 closing balance 989 384 1,373 R&
Slide 18: 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