Leonardo Spa · MIL:LDO
Leonardo Spa — Leonardo Spa Ord — Q1 2024 Earnings Presentation
26 slides from Leonardo Spa's earnings presentation, May 6, 2024
Slide 1: 1Q 2024 Results Presentation
1Q 2024 Results Presentation Rome 7 May 2024
Slide 2: Agenda
Agenda • Executing the Industrial Plan Roberto Cingolani, Chief Executive Officer and General Manager • 1Q 2024 Results Alessandra Genco, Chief Financial Officer • Q&A • Appendix 2 © 2024 Leonardo - Società per azioni 1Q24 Results
Slide 3: Strong start to the year
Strong start to the year • Good progress across all KPIs* • Orders up 14.9% to € 5.8 bn, with book-to-bill of 1.6x • Backlog at record level >€43 bn • Revenues up 15.3% to € 3.7 bn • EBITA up 67.0% to € 182 mln • FOCF at € (621) mln improved by 11.5% • FY 2024 Guidance confirmed • Fully focussed on
Slide 4: Fully focussed on Industrial Plan: Executing on the arsenal of initiatives
Fully focussed on Industrial Plan: Executing on the “arsenal” of initiatives Action area Progress Reorganization and • Defining competitive organization and governance Governance • Focus R&D, quit off-core activities • Developing strategy to leverage Generative AI and multidomain capabilities Streng
Slide 5: Acceleration on decarbonisation roadmap
Acceleration on decarbonisation roadmap New Near-Term targets • Scope 1&2: -53% of Scope I and II CO2e emissions vs. 2020 (by 2030) SBTi has classified Leonardo’s Scope 1 • Scope 3 - upstream: 58% of suppliers by emissions committed to and 2 targets as SBTs (by 2028) being adequate to keep global wa
Slide 6: Agenda
Agenda • Executing the Industrial Plan Roberto Cingolani, Chief Executive Officer and General Manager • 1Q 2024 Results Alessandra Genco, Chief Financial Officer • Q&A • Appendix 6 © 2024 Leonardo - Società per azioni 1Q24 Results
Slide 7: 1Q 2024 Highlights: Strong start to the year, with improvement across all KPIs
1Q 2024 Highlights: Strong start to the year, with improvement across all KPIs • Double digit order intake growth 1Q23 1Q23 pro- 1Q24 Change** with book-to-bill of 1.6x, reflecting forma strong commercial momentum • Record backlog >€43 bn New Orders, €bn 4.9 5.0 5.8 14.9% Revenue, €bn 3.0 3.2 3.7 15
Slide 8: Helicopters: continuing positive momentum and increasing pace of deliveries
Helicopters: continuing positive momentum and increasing pace of deliveries €mln 1Q23 1Q24 Change Orders 1,889 2,043 8.2% Revenues 880 1,085 23.3% EBITA 38 54 42.1% RoS (%) 4.3% 5.0% 0.7 p.p. Highlights Deliveries by programme • Continued strong order growth 1Q24 31 new units AW189 /149 • Dual-use h
Slide 9: Defence Electronics: strong growth across all segments
Defence Electronics: strong growth across all segments Electronics Europe DRS €mln 1Q23 1Q24 Change $mln 1Q23 1Q24 Change Orders 1,624 2,242 38.1% 749 815 8.8% Revenues 1,046 1,147 9.7% 569 688 20.9% EBITA * 89 123 38.2% 33 55 66.7% RoS (%) 8.5% 10.7% 2.2p.p. 5.8% 8.0% 2.2p.p. Electronics Europe DRS
Slide 10: Aircraft: maintaining strong profitability
Aircraft: maintaining strong profitability €mln 1Q23 1Q24 Change Orders 731 568 -22.3% Revenues 559 570 2.0% EBITA 54 55 1.9% RoS (%) 9.7% 9.6% -0.1 p.p. Highlights • International commercial campaigns progressing in line • Reduced order volume reflecting export order phasing, expected to be later i
Slide 11: Aerostructures & ATR: further progress in line with recovery plan
Aerostructures & ATR: further progress in line with recovery plan €mln 1Q23 1Q24 Change Orders 126 253 100,8% Revenues 151 175 15.9% EBITA* (56) (43) 23.2% RoS (%) (37.1%) (24.6%) 12.5 p.p. Highlights • Order intake doubling year-on-year; reflecting continued air traffic recovery • Revenue growth fr
Slide 12: Space: building blocks in place for new focussed division
Space: building blocks in place for new focussed division €mln 1Q23* 1Q24 Change Orders 152 102 -32.9% Revenues 146 160 9.6% EBITA ** 5 (2) -140% RoS (%) 3.4% (1.3%) -4.7 p.p. Highlights • Telespazio’s revenues growth mainly driven by Satellite Systems and Operations and Geo Information • Telespazio
Slide 13: EBITA growth driving stronger bottom line
EBITA growth driving stronger bottom line From EBITA to Net Result, 1Q24 +73.3% +80.6% +132.5% Change are calculated vs actual data, not including Telespazio consolidation in 1Q23 YoY YoY YoY Fair value gain resulting from the full consolidation 459 of Telespazio Group 366 182 -1 168 -5 -8 -44 -31 9
Slide 14: FY 2024 Guidance confirmed
FY 2024 Guidance confirmed FY 2023 (1) Guidance 2024 (2) Orders, €bn 18.7 ca.19.5 Revenue, €bn 16.0 ca. 16.8 EBITA, €M 1,326 ca. 1,440 FOCF, €M 652 ca. 770 Net debt, €bn 2.3 ca. 2.0 (3) 2024 exchange rate assumptions: € / USD = 1.15 and € / GBP = 0.89 (1) The values shown for the year 2023 enhance
Slide 15: Agenda
Agenda • Executing the Industrial Plan Roberto Cingolani, Chief Executive Officer and General Manager • 1Q 2024 Results Alessandra Genco, Chief Financial Officer • Q&A • Appendix 15 © 2024 Leonardo - Società per azioni 1Q24 Results
Slide 16: Agenda: Appendix
Agenda • Executing the Industrial Plan Roberto Cingolani, Chief Executive Officer and General Manager • 1Q 2024 Results Alessandra Genco, Chief Financial Officer • Q&A • Appendix 16 © 2024 Leonardo - Società per azioni 1Q24 Results
Slide 17: 1Q 2024 Results
1Q 2024 Results 1Q * 1Q ** FY % Change €M 2023 2024 2023 New Orders 4,868 5,753 18.2% 17,926 Backlog 39,126 43,153 10.3% 39,529 Revenues 3,034 3,664 20.8% 15,291 EBITA 105 182 73.3% 1,289 1.5 RoS 3.5% 5.0% p.p. 8.4% EBIT 93 168 80.6% 1,085 1.5p. EBIT Margin 3.1% 4.6% p. 7.1% Net result before extrao
Slide 18: Solid Group liquidity ensures adequate financial flexibility
Solid Group liquidity ensures adequate financial flexibility As at 31 March 2024 Leonardo had sources of liquidity available for a total of about € 6.7 bn to meet the financing needs of the Group’s, broken down as follows: • Cash in-hands equal to € 1.8 bn • ESG Revolving Credit Facility (RCF) equal
Slide 19: Balanced debt maturity profile
Balanced debt maturity profile TL DRS RADA Dollar Bond Euro in € mil EIB Term Loan CDP Debt maturity Average life: ≈ 2,0 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 Outlook
Slide 20: Covenant FY2023
Covenant FY2023 FY2023A FY2023A Post IFRS 16 Post IFRS 16 EBITDA* € 1,790 M Group Net Debt € 2,323 M Net Interest € 95 M Leasing (IFRS 16) - € 610 M Financial Debt to MBDA - € 1,070 M Group Net Debt for Covenant € 643 M EBITDA* € 1,790 M EBITDA / Net Interest 18.8 Group Net Debt / EBITDA 0.40 THRESH
Slide 21: Helicopters
Helicopters 2019-2023 Results Orders (€ mln) Revenues (€ mln) EBITA (€ mln) and Profitability 4,547 4,725 6,060 4,025 4,157 5,513 3,972 10.7% 8.9% 4,641 9.8% 9.1% 9.6% 4,494 4,370 431 415 422 383 406 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Revenues by customer Reve
Slide 22: Electronics
Electronics 2019-2023 Results Revenues by segment Orders Revenues EBITA and Profitability 6,521 4,907 5,628 4,712 5,392 4,519 4,289 4,147 12.2% 4,444 4,710 11.7% 10.7% 3,516 2,879 10.0% 600 64% 2,729 2,757 2,826 8.7% 3,054 3,156 2,693 553 2,923 485 2,595 427 360 9.0% 9.8% 9.7% 36% 7.6% 7.3% 258 265
Slide 23: Aircraft
Aircraft 2019-2023 Results Revenues by segment Orders (€ mln) Revenues (€ mln) EBITA (€ mln) and Profitability 2,668 2,800 3,268 3,085 2,938 2,395 13.3% 2,634 13.6% 14.3% 2,031 2,329 1,904 13.7% 13.5% 434 421 419 48% 355 320 52% 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2
Slide 24: Aerostructures and ATR
Aerostructures and ATR 2019-2023 Results Revenues by programme Orders (€ mln) Revenues (€ mln) EBITA (€ mln) and Profitability 948 1,125 11% 17% 53 787 819 12 644 581 767-777 636 -11 -69 -6 -24 15% 365 420 475 Airbus 442 -86 -163 -10.5% ATR -1.0% -183 39% 10% -203 -25.6% Military -45.9% -38.5% 8% Ot
Slide 25: 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 26: Contacts
CONTACTS Valeria Ricciotti Head of Investor Relations and Credit Rating Agencies +39 06 32473.697 valeria.ricciotti@leonardo.com Investor Relations and Credit Rating Agencies +39 06 32473.512 ir@leonardo.com leonardo.com 26 © 2024 Leonardo - Società per azioni