Leonardo Spa · MIL:LDO
Leonardo Spa — Finmeccanica — Q1 2015 Earnings Presentation
23 slides from Leonardo Spa's earnings presentation, May 8, 2015
Slide 1: 1Q 2015 Results Presentation
1Q 2015 Results Presentation Gian Piero Cutillo Chief Financial Officer 8 May 2015
Slide 2: Key Messages
Key Messages Good start to the year Transportation sector now included in the “Discontinued Operations” All our key metrics are heading in the right direction: New orders in line with last year Revenues increased and above expectations +11% in EBITA with 5.9% RoS Positive Net Result FOCF improved by
Slide 3: Focus on Group Orders
Focus on Group Orders Commercial Performance in line with strong 1Q 2014, with Book to Bill =1 % Ch. vs. 1Q 2014 - 11.0% + 1.1% + 74.0% - 23.8% +130.0% - 1.9% € Mln 76 -63 329 2,641 503 448 1,348 Helicopters Selex ES DRS Aeronautics Defence Eliminations & 1Q 1Q2015 Systems Other 2015 3
Slide 4: Focus on Group Revenues
Focus on Group Revenues Good performance above expectations % Ch. vs. 1Q 2014 + 2.3% + 8.6% + 23.2% + 1.4% - 12.6% + 4.2% € Mln 90 -56 2,654 660 356 680 924 Helicopters Selex ES DRS Aeronautics Defence Eliminations & 1Q 1Q2015 Systems Other 2015 4
Slide 5: Focus on Group Profitability
Focus on Group Profitability Material step up in EBITA and ROS ROS Ch. vs. 1Q 2014 - 0.3 p.p. + 1.1 p.p. + 1.2 p.p. + 0.9 p.p. + 0.4 p.p. + 0.4 p.p. 34 3 € Mln (RoS 5.2%) (RoS 3.3%) 1 - 23 157 (RoS 5.9%) 16 (RoS 4.5%) 14 112 (RoS 2.1%) (RoS 12.1%) Helicopters Selex ES DRS Aeronautics Defence Space C
Slide 6: Focus on Group FOCF
Focus on Group FOCF 1Q 2015 and FY expectations COMMENTS ON 1Q 2015 2015E € Mln Usual seasonality affecting 1Q 2015 ca. 130 ca. 900 YoY improvement in 1Q 2015 supported by better working capital management Positive impact on Group Net Debt 200 - 300 ca. - 750 ca. - 50 Good start but 4Q remains the k
Slide 7: FY2015 Assumptions and Guidance
FY2015 Assumptions and Guidance ASSUMPTIONS FY2014A Orders and Revenues: moderate FY2015E growth, taking into account the changes Reported Pro forma in perimeter Profitability: meaningful step up of 10% New orders € bn 15.6 12.6 12.0 – 12.5 Revenues € bn 14.7 12.7 12.0 – 12.5 Below EBITA: much lower
Slide 8: 2015 Priorities
2015 Priorities Our priority remains the delivery of the Industrial turnaround plan through: Focus on efficiencies in the key industrial processes (engineering, supply chain, manufacturing) Improving profitability and cash flow generation Reducing Group Net Debt By 2015 we will also complete the tra
Slide 9: Sector Results
SECTOR RESULTS
Slide 10: Helicopters
HELICOPTERS 1Q FY % 2015 2014 2014 € Mln Change Orders 1,348 1,514 (11.0%) 4,556 Revenues 924 903 2.3% 4,376 EBITA 112 112 n.m. 543 ROS % 12.1% 12.4% (0.3) p.p. 12.4% Revenue and EBITA broadly in line with 1Q2014, solid profitability confirmed around 12%. Orders down as 1Q2014 benefitted from huge c
Slide 11: EU Defence Electronics and Security - Selex ES
EU DEFENCE ELECTRONICS AND SECURITY-Selex ES 1Q FY % 2015 2014 2014 € Mln Change Orders 448 443 1.1% 3,612 Revenues 680 626 8.6% 3,577 EBITA 14 6 n.m. 185 ROS % 2.1% 1.0% 1.1 p.p. 5.2% 1Q2015 confirming good momentum in line with expectations Increasing EBITA driven by volumes, recovery in some busi
Slide 12: US Defence Electronics and Security – DRS
US DEFENCE ELECTRONICS AND SECURITY – DRS 1Q FY % 2015 2014 2014 $ Mln Change Orders 567 395 43.5% 1,945 Revenues 401 395 1.5% 1,877 EBITA 18 13 38.5% 31 ROS % 4.5% 3.3% 1.2 p.p. 1.7% Good Order intake benefitting from LRSS (Light Armored Vehicle - Reconnaissance Surveillance System) for Canadian ar
Slide 13: Aeronautics
AERONAUTICS 1Q FY % 2015 2014 2014 € Mln Change Orders 329 432 (23.8%) 3,113 Revenues 660 651 1.4% 3,144 EBITA 34 28 21.4% 237 ROS % 5.2% 4.3% 0.9 p.p. 7.5% Orders down as 1Q2014 benefitted from the contract for 8 M346 Poland Revenue in line, delivered 29 fuselages on B787 (24 in1Q2014) and 4 aircra
Slide 14: Space and Defence Systems
SPACE 1Q FY % 2015 2014 2014 € Mln Change EBITA 1 7 (85.7%) 52 Q1 affected by a worse mix in manufacturing activities Revenues expected to grow, mainly thanks to manufacturing and launch operations services Business performance expected to improve, despite a decline in industrial profitability (unfa
Slide 15: Appendix
APPENDIX
Slide 16: Group Performance
GROUP PERFORMANCE 1Q FY % 2015 2014 (*) 2014 (*) Change € Mln New Orders 2,641 2,692 (1.9%) 12,667 Backlog 30,169 29,213 3.3% 29,383 Revenues 2,654 2,548 4.2% 12,764 EBITA 157 141 11.3% 980 ROS % 5.9% 5.5% 0.4 p.p. 7.7% EBIT 110 101 8.9% 597 Net result before extraordinary transactions 4 (15) n.m. 1
Slide 17: Focus on Group Orders: Recent achievements
Focus on Group Orders Recent achievements Helicopters European and US certification for AW189 achieved, deliveries already started AW169 certification expected in 2015 Good progresses in AW609, for which in March 2015 AgustaWestland and Bristow signed a platform development agreement. Confirmed focu
Slide 18: Financial Position (as of end of March 2015)
FINANCIAL POSITION (as of end of March 2015) No refinancing needs before end 2017 Strong liquidity position Bonds have neither financial covenants nor rating pricing grids Average life ≈ 8 years (€mil) Dollar Bond 46 46 Sterling Bond 46 550 46 Euro Bond 46 950 EIB 600 600 500 500 404* 465 279 37 46
Slide 19: Liquidity Position (as of end of March 2015)
LIQUIDITY POSITION (as of end of March 2015) In order to cope with possible volatilities in financial needs, Finmeccanica can leverage: – 31 March cash balance of approx. €0.4 Billion Availability of – Credit lines worth €2.8 Billion (confirmed and unconfirmed) adequate The €2.2 Billion Revolving Cr
Slide 20: Focus on accounting of disposals
Focus on accounting of disposals DRS LoBs: The expected disposal of the 2 Lines of Businesses with annual revenues of approx. €200m is likely to be announced in 2H 2015. Therefore, until closing revenues will include their contribution Transportation sector: The Transportation sector has been reclas
Slide 21: Delivering on Industrial Plan: Medium Term Objectives
Delivering on Industrial Plan: Medium Term Objectives EBITA +20% and RoS +150b.p. from 2014 to 2016 SG&A reduction > 10% from 2013 to 2015 CAPEX and capitalized R&D rationalization > 20% from 2013 to 2017, rebalancing depreciation /investments ratio, significantly improving self-financing capacity O
Slide 22: 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 23: Investor Relations Contacts
Investor Relations & Sustainable Responsible Investors (SRI) Contacts Raffaella Luglini Head of Investor Relations & SRI +39 06 32473.066 raffaella.luglini@finmeccanica.com Valeria Ricciotti Alessio Crosa Paolo Salomone Financial Communication Fixed Income ESG +39 06 32473.697 +39 06 32473.337 +39 0