Leonardo Spa · MIL:LDO
Leonardo Spa — Leonardo Spa Ord — Q3 2023 Earnings Presentation
31 slides from Leonardo Spa's earnings presentation, Nov 9, 2023
Slide 1: 3Q/9M 2023 Results Presentation
3Q/9M 2023 Results Presentation Rome 9 November 2023
Slide 2: Agenda
Agenda • Key messages Roberto Cingolani, Chief Executive Officer • Financial review Alessandra Genco, Chief Financial Officer • Q&A • Sector results • Appendix 2 © 2023 Leonardo - Società per azioni 3Q/9M23 Results
Slide 3: My first 6 months as Leonardo's CEO
My first 6 months as Leonardo’s CEO 3 © 2023 Leonardo - Società per azioni 3Q/9M23 Results
Slide 4: Delivering against financial and strategic priorities
Delivering against financial and strategic priorities 9M results in line with plan, solid progress across core businesses • Solid 3Q 2023 performance • Order intake of € 13.3 bn, up 14.8%* YoY with no jumbo orders • SOLID PERFORMANCE ACROSS CORE BUSINESSES • Backlog at € 40.2 bn and Book-to-bill at
Slide 5: Building the Leonardo of the future
Building the Leonardo of the future Main results and actions undertaken • Direct reports to CEO reduced from 26 to 10 • Appointed the new Chief Innovation Officer, Chief Strategy Officer, Chief Sustainability Officer and the Managing Director of Cyber Division. Governance and • Legal and Compliance
Slide 6: The new Industrial Plan
The new Industrial Plan Main strategic guidelines to reinforce our core business HELICOPTERS AIRCRAFT ELECTRONICS AEROSTRUCTURES Global leader Key player in international European leader Partner of key OEM cooperation programs • Support legacy • Update of proprietary • Strengthening • Return to prof
Slide 7: Addressing new growth areas
Addressing new growth areas Cyber and Space as strategic priorities CYBER SPACE National leader and Consolidate national European key player leadership in EU • Total market value of ~€110bn • Total market value of ~$350bn (~70% services and Ground equipment) • Estimated to reach a value of ~ €240bn
Slide 8: Key takeaways
Key takeaways • Strong performance across the Group • Taking actions to strategically position Leonardo for future growth • Creating a leaner and stronger organization • Leveraging innovation and competitiveness in strategic products • 2023 guidance reconfirmed • New Industrial Plan to be presented
Slide 9: Agenda
Agenda • Key messages Roberto Cingolani, Chief Executive Officer • Financial review Alessandra Genco, Chief Financial Officer • Q&A • Sector results • Appendix 9 © 2023 Leonardo - Società per azioni 3Q/9M23 Results
Slide 10: 9M 2023 Highlights
9M 2023 Highlights 9M2022A 9M2022 Adj.1 9M2023 % Δ1 • Continued strong demand for our products driving top line growth ORDERS (€bn) 11.7 11.6 13.3 +14.8% • Record backlog of over € 40 bn REVENUES 9.9 9.8 10.3 +4.8% (€bn) • Book-to-bill at 1.3x EBITA (€mln) 619 606 644 +6.3% • Solid profitability acr
Slide 11: Order Intake
Order Intake Strong commercial performance reflecting strength of Defence Government business and Civil recovery € mln ∆ % YoY 9M2022A* 11,560 €1.4bn contract for 32 AW149 in Poland signed in July 2022. In 2023,18 AW169M LUH for Austria; 3 AW159 HELICOPTERS 4,177 -9.6% and AW101(including MLU) expor
Slide 12: Revenues
Revenues Solid performance confirming growth path € mln ∆ % YoY 9M2022A* 9,802 Increase due to dual-use models and CS&T offsetting expected lower HELICOPTERS 3,202 +1.6% contribution from NH90 Qatar ELECTRONICS EUROPE 3,294 +4.6% Growing volumes across all areas LEONARDO DRS 1,753 +6.6%* Increase on
Slide 13: EBITA and Profitability
EBITA and Profitability Improving Profitability € mln RoS ∆ % YoY 9M2022A* 606 +6.2% HELICOPTERS 250 +7.8% +6.8% Solid performance driven by top-line growth and business mix ELECTRONICS EUROPE 327 +9.9% +6.9% Confirming strong profitability LEONARDO DRS 146 +8.3% +5.8%* Solid performance driven by f
Slide 14: From EBITA to Net Result
From EBITA to Net Result Solid bottom line 9M 2022A 9M 2023A +6.3%* -2.7% -54.5% YoY YoY YoY 619 275 662 644 552 -96 606* -49 537 -170 -45 -5 -69 -32 -17 -26 387 € mln -77 290 11 301 EBITA Non recurring Restructuring PPA EBIT Net financial Income Net results Discontinued Net Result EBITA Non recurri
Slide 15: Recent progress to Investment Grade
Recent progress to Investment Grade Confirming deleveraging commitment RATED “INVESTMENT GRADE” BY ALL 3 RATING AGENCIES S&P Moody’s Fitch • Upgraded Leonardo to BBB- in Aug’23, with • Upgraded Leonardo to Baa3 in May’ 23, with • Upgraded Leonardo’s outlook from stable outlook stable outlook Negativ
Slide 16: 2023 Guidance confirmed
2023 Guidance confirmed 2022A 2023E1 ORDERS (€bn) 17.3 ca. 17 REVENUES (€bn) 14.7 15-15.6 • Continued solid commercial momentum, with book-to-bill>1x • Successfully navigating inflationary EBITA (€mln) 1,218 1,260-1,310 pressures • Continued improvement in FOCF and focus on deleveraging FOCF (€mln)
Slide 17: Agenda
Agenda • Key messages Roberto Cingolani, Chief Executive Officer • Financial review Alessandra Genco, Chief Financial Officer • Q&A • Sector results • Appendix 17 © 2023 Leonardo - Società per azioni 3Q/9M23 Results
Slide 18: Q&A
Q&A 18 © 2023 Leonardo - Società per azioni 3Q/9M23 Results
Slide 19: Agenda
Agenda • Key messages Roberto Cingolani, Chief Executive Officer • Financial review Alessandra Genco, Chief Financial Officer • Q&A • Sector results • Appendix 19 © 2023 Leonardo - Società per azioni 3Q/9M23 Results
Slide 20: Helicopters
Helicopters Continued strong commercial performance 2018-2022 Results 3Q/9M23 Results Orders (€ m ln) Revenues (€ m ln) EBITA (€ m ln) and Profitability 6,208 4,547 6,060 4,025 4,157 3,972 3,810 10.7% 9.1% 9.8% 4,641 9.6% 4,494 4,370 9.4% 415 3Q 2022 3Q 2023 % Change 431 406 € mln 359 383 Orders 2,4
Slide 21: Electronics
Electronics Growing revenues and profitability 2018-2022 Results 3Q/9M23 Results Orders Revenues EBITA and Profitability 5,392 5,628 4,519 4,712 ELECTRONICS - EU 4,289 4,147 4,011 3Q 2022 3Q 2023 % Change 4,409 4,444 4,710 11.7% € mln 10.7% 10.0% 553 Orders 955 1,810 +89.5% 2,879 9.8% 8.7% 3,054 3,1
Slide 22: Aircraft
Aircraft Solid profitability 2018-2022 Results 3Q/9M23 Results Orders (€ m ln) Revenues (€ m ln) EBITA (€ m ln) and Profitability € mln 3Q 2022 3Q 2023 % Change 2,668 2,800 3,268 3,085 Orders 147 327 122.4% 2,634 13.3% 13.6% 1,904 2,031 2,329 Revenues 698 590 -15.5% 13.8% 13.7% 13.5% 434 1,700 1,932
Slide 23: Aerostructures and ATR
Aerostructures and ATR Recovery on track 2018-2022 Results 3Q/9M23 Results Orders (€ m ln) Revenues (€ m ln) EBITA (€ m ln) and Profitability Aerostructures 925 948 1,125 1,020 € mln 3Q 2022 3Q 2023 % Change Aerostructures 819 97 ATR Orders 184 303 64.7% 53 581 Revenues 117 135 15.4% 420 -69 -6 EBIT
Slide 24: Space
Space Solid performance of Satellite services 2018-2022 Results 3Q/9M23 Results EBITA (€m ) 58 62 31 3Q 2022 3Q 2023 % Change 39 € mln 23 EBITA 7 4 -42.9% 2018 2019 2020 2021 2022 9M 2022 9M 2023 % Change 2023 Outlook(*) € mln EBITA 10 6 -40.0% • Growing volumes driven by solid and increasing backlo
Slide 25: Agenda
Agenda • Key messages Roberto Cingolani, Chief Executive Officer • Financial review Alessandra Genco, Chief Financial Officer • Q&A • Sector results • Appendix 25 © 2023 Leonardo - Società per azioni 3Q/9M23 Results
Slide 26: 3Q/9M 2023 Results
3Q/9M 2023 Results Group Performance 3Q 2022 3Q 2023 % Change 9M2022 9M2023 % Change FY 2022 € mln New Orders 4,409 4,584 +4% 11,719 13,275 +13.3% 17,266 Backlog 37,353 40,186 +7.6% 37,506 Revenues 3,341 3,375 +1% 9,917 10,269 +3.5% 14,713 EBITA 201 214 +6.5% 619 644 +4.0% 1,218 RoS 6.0% 6.3% +0.3 p
Slide 27: Solid Group liquidity ensures adequate financial flexibility
Solid Group liquidity ensures adequate financial flexibility • Available credit lines • € 2.4bn ESG Credit Line signed in October 2021 • € 1.0bn existing unconfirmed credit lines • € 1.0bn Commercial Paper signed in August 2022 • € 0.3bn new «Sustainability-Linked» EIB loan together with the Revolvi
Slide 28: Balanced debt maturity profile
Balanced debt maturity profile TL DRS RADA Bond Dollar Bond Euro in € mil EIB Term Loan CDP Debt maturity Average life: ≈ 2.5 years CREDIT RATING As of today Before last review Date of review S&P BBB- / Stable Outlook BB+ / Positive Outlook August 2023 Moody’s Baa3 / Stable Outlook Ba1 / Positive Ou
Slide 29: Covenants FY2022
Covenants FY2022 FY2022A FY2022A Post IFRS 16 Post IFRS 16 EBITDA* € 1,671 mln Group Net Debt € 3,016 mln Net Interest € 104 mln Leasing (IFRS 16) - € 570 mln Financial Debt to MBDA - € 713 mln Group Net Debt for Covenant € 1,733 mln EBITDA* € 1,671 mln EBITDA / Net Interest 16.1 Group Net Debt / EB
Slide 30: 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 31: 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 31 © 2022 Leonardo - Società per azioni