Leonardo Spa · MIL:LDO
Leonardo Spa — Finmeccanica — Q1 2007 Earnings Presentation
15 slides from Leonardo Spa's earnings presentation, 2007
Slide 1: Finmeccanica Q1 2007 Results
Finmeccanica Q1 2007 Results Alessandro Pansa Co-General Manager John Douglas Stewart VP Investor Relations 1
Slide 2: Financial Highlights
Financial Highlights • Revenues up 6% driven by Helicopters, Defence Systems, Space and Energy • Ebit substantially stable (+1%) but Q106 benefited from capital gain of Eur 18m • Net income excluding extraordinary gains increases by Eur 8m, due mainly to lower financial charges • Net debt increases
Slide 3: Main Financial Results
Main Financial Results (Eur mln) 1Q 07 1Q 06 %change FY 06 Revenues 2,740 2,583 6% 12,472 EBIT 101 100 1% 878 EBIT Margin 3.7% 3.9% n.s. 7% Net income 18 383 (95)% 1,020 Excluding capital gain 10 New orders 2,430 4,199 (42)% 15,725 Working Capital 466 703 n.s. (434) Net financial debt 1,970 1,481 n.
Slide 4: Recent Events
Recent Events • Russian Railways, Italian rail operator and Finmeccanica sign MOU for commercial cooperation on international projects – 9 February • Selex Sistemi Integrati signs MOU in India with BHEL for radar systems – 14 February • Finmeccanica completes 100% acquisition of Selex Sensors and Ai
Slide 5: Business Division Review
a) “7 FINMECCANICA Business Division Review
Slide 6: Helicopters
Helicopters ¾ Strong increase in volumes driven by civil (A109, AW139, A119), US presidential programme and UK support activities. ¾ Margin improvement due to benefits of integration UK-Italian (€mln) Q1 07 Q1 06 %change activities and operational leverage particularly in civil Revenues 720 578 25%
Slide 7: Defence Electronics
Defence Electronics ¾ Lower volumes mainly due to order delays (eg Electronic Identity Card) (€mln) Q1 07 Q1 06 %change ¾ Operating margins temporarily impacted by lower volumes and Revenues 680 708 (4)% weaker mix in radar, command & control EBIT 6 42 (86)% Orders 502 629 (20)% ¾ Ebit Q1 benefited
Slide 8: Aeronautics
Aeronautics ¾ ¾ Slow Slow start start to to the the year year by by military military offset offset by by growth growth in in civil civil (€mln) Q1 07 Q1 06 %change ¾ ¾ Margins Margins improve improve due due to to higher higher civil civil activity activity Revenues 412 408 1% EBIT 20 15 33% ¾ ¾ Eu
Slide 9: Space
Space ¾ ¾ Higher Higher volumes volumes due due to to increased increased manufacturing manufacturing activity activity (€mln) Q1 07 Q1 06 %change ¾ ¾ Lower Lower Ebit Ebit due due to to increase increase in in headcount headcount and and higher higher costs costs on on Revenues 166 140 19% some som
Slide 10: Defence Systems
Defence Systems ¾ ¾ Revenues Revenues increase increase mainly mainly due due to to contribution contribution of of German German missiles missiles company company acquired acquired 11 March March 2006 2006 (€mln) Q1 07 Q1 06 %change Revenues 238 214 11% ¾ ¾ Margins Margins mainly mainly impacted im
Slide 11: Civil Activities
Civil Activities Transport Transport Transport ¾ ¾ Revenues Revenues fall fall slightly slightly due due to to Vehicles Vehicles (€mln) Q1 07 Q1 06 %change Revenues 330 340 (3)% ¾ ¾ Strong Strong performance performance by by Signalling Signalling more more than than offsets offsets operating operat
Slide 12: Guidance for 2007 and 2008
Guidance for 2007 and 2008 2007 2008 Revenues €13.1-13.7bn €14-14.7bn (not Value of Production) EBIT €950-1,000mln €1,050-1,170mln • Confirming average Free Operating Cash Flow per Year (2006-08) of ca. €300 mln • Dividend policy: increase together with profits • Optimal capital structure: Net debt/
Slide 13: Appendix
S, “7 FINMECCANICA APPENDIX 13
Slide 14: Update on impact of state incentives Directive N 28 on Finmeccanica balance sheet
Update on impact of state incentives Directive N 28* on Finmeccanica balance sheet Development costs for “National Security” programmes are no longer recorded in working capital under “Work in Progress” and “Other Liabilities” but capitalised in “Intangible Assets” and netted off against the amount
Slide 15: 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