Leonardo Spa · MIL:LDO
Leonardo Spa — H1 2022 Earnings Presentation
29 slides from Leonardo Spa's earnings presentation, Jul 28, 2022
Slide 1: 2Q/1H 2022 Results Presentation
2Q/1H 2022 Results Presentation Rome 28 July 2022
Slide 2: Agenda
Agenda • Key messages Alessandro Profumo, Chief Executive Officer • Financial review Alessandra Genco, Chief Financial Officer • Q&A • Sector results • Appendix 2 © 2022 Leonardo - Società per azioni 2Q/1H22 Results
Slide 3: Good 1H2022 results, delivering strong performance
Good 1H2022 results, delivering strong performance • Building on good start to the year • Order intake of € 7.3 bn, up 9.4% • Revenues at € 6.6 bn, up 3.6% YoY • EBITA at € 418 mln, up 12% YoY vs 1H2021 restated* • RoS at 6.4% (7.4% without pass through) WELL POSITIONED • ROIC at 10.5%, vs 10.3% 1H2
Slide 4: Important strategic progresses
Important strategic progresses ESG: DEMONSTRATING DEEP • ESG fully embedded in our Industrial Plan, LTI and Financial strategy COMMITMENT IN OUR FIRST ESG • Important progress and goals achieved INVESTOR DAY • In Europe: reinforced positioning in Defence Electronic through the 25.1% stake in Hensold
Slide 5: Leonardo DRS merger with RADA: excellent strategic fit
Leonardo DRS merger with RADA: excellent strategic fit, very well placed within Leonardo Group • Important strategic move to strengthen our position in a very attractive market • Leonardo DRS + RADA very well placed to be a leader in rapidly growing Force Protection market • Creating opportunities i
Slide 6: Agenda
Agenda • Key messages Alessandro Profumo, Chief Executive Officer • Financial review Alessandra Genco, Chief Financial Officer • Q&A • Sector results • Appendix 6 © 2022 Leonardo - Società per azioni 2Q/1H22 Results
Slide 7: 1H 2022 Highlights
1H 2022 Highlights • Strong commercial activity, with book to bill at 1.1x • Backlog at € 36.4 bn • Order intake of € 7.3 bn, up 9.4% with no jumbo orders included • Continued strong demand for our products supports growing top line • Revenues at € 6.6 bn, up 3.6% YoY • Strong profitability improvem
Slide 8: Order Intake
Order Intake Commercially strong, reflecting continued strength of defence-governmental business € mln ∆ % YoY 1H2021A 6,682 First order of AW609 (4 AW609 for a commercial flight operator); 6 AW189 for China Ministry of HELICOPTERS 2,183 8.7% Transport; 5 AW119Kx for Israel. AW139 Commercial. Strong
Slide 9: Revenues
Revenues Solid performance confirming growth path € mln ∆ % YoY 1H2021A 6,345 HELICOPTERS 2,110 11.6% Ramp-up mainly in NH90 Qatar and AW169 ELECTRONICS EUROPE 2,109 0.8% +4.4% like for like** driven by Defence Systems Softness due to timing of new acquisitions and some shifts in the Supply Chain. L
Slide 10: EBITA and Profitability
EBITA and Profitability Improving Profitability € mln RoS ∆ % YoY 1H2021A 400 6.3% 1H2021 Restated 374 5.9% HELICOPTERS 151 7.2% 2.0% Higher volumes with higher pass-through contribution ELECTRONICS EUROPE 210 10.0% 4.5% Increase across all business areas, mainly in Defence Systems LEONARDO DRS 104
Slide 11: From EBITA to Net Result
From EBITA to Net Result Stronger bottom line thanks to EBITA increase 1H 2021A 1H 2022A +11.8% +4.3% +50.8% YoY YoY YoY -43 418 26 347 -2 -11 362 -47 -87 -9 -48 -7 374 -11 -1 267 € mln € mln -82 177 EBITA Non recurring Restructuring PPA EBIT Net financial Hedging Income taxes Net Result EBITA Non r
Slide 12: 2022 Guidance confirmed
2022 Guidance confirmed FY2022 FY2021A Guidance(1) New Orders (€ bn) 14.3 ca. 15.0 Revenues (€ bn) 14.1 14.5-15.0 EBITA (€ mln) 1,123 1,180-1,220(2) FOCF (€ mln) 209 ca. 500 Group Net Debt (€ bn) 3.1 ca.3.1(3) Assuming USD/€ exchange rate at 1.18 and €/GBP exchange rate at 0.90 (1) Based on the curr
Slide 13: Agenda
Agenda • Key messages Alessandro Profumo, Chief Executive Officer • Financial review Alessandra Genco, Chief Financial Officer • Q&A • Sector results • Appendix 13 © 2022 Leonardo - Società per azioni 2Q/1H22 Results
Slide 14: Q&A
Q&A 14 © 2022 Leonardo - Società per azioni
Slide 15: Agenda
Agenda • Key messages Alessandro Profumo, Chief Executive Officer • Financial review Alessandra Genco, Chief Financial Officer • Q&A • Sector results • Appendix 15 © 2022 Leonardo - Società per azioni 2Q/1H22 Results
Slide 16: Helicopters
Helicopters Solid business with civil recovering 2018-2021 Results 2Q/1H22 Results 2Q 2021 2Q 2022 % Change € mln Orders (€ mln) Revenues (€ mln) EBITA (€ mln) and Profitability 6.208 4.025 3.972 4.157 Orders 1,154 1,320 14.4% 3.810 10,7% Revenues 1,098 1,187 8.1% 9,8% 4.641 9,6% EBITA 117 115 -1.7%
Slide 17: Helicopters
Helicopters DELIVERIES BY PROGRAMME REVENUES BY CUSTOMER/SEGMENT 1H2022 = 50 new units 1H2022 AW189 /149 5 21 AW109 / AW119 75% 64% AW169 6 36% 11 7 25% AW139 NH90 Civil Defence/Governamental OE CS&T/Other AW FAMILY 1H2021 = 47 new units 1H2021 AW101 NH90 5 1 AW109 / AW119 74% AW189/AW149 13 62% 6 3
Slide 18: Defence Electronics & Security
Defence Electronics & Security Growing Revenues and Profitability 2018-2021 Results 2Q/1H22 Results Orders Revenues EBITA and Profitability ELECTRONICS - EU 5.392 4.519 4.289 4.710 4.011 4.147 € mln 2Q 2021 2Q 2022 % Change 4.409 4.444 10,7% Orders 889 1,051 18.2% 10,0% 1,161 1,154 -0.6% 2.879 9,8%
Slide 19: Aircraft
Aircraft Solid performance 2018-2021 Results 2Q/1H22 Results Orders (€mln) Revenues (€mln) EBITA (€mln) and Profitability 2.668 3.268 € mln 2Q 2021 2Q 2022 % Change 2.634 13,2% 2.031 2.329 1.700 1.904 13,7% 13,5% 432 Orders 640 709 10.8% 1.932 13,8% Revenues 724 690 -4.7% 355 266 320 EBITA 103 100 -
Slide 20: Aerostructures and ATR
Aerostructures and ATR Gradual recovery 2018-2021 Results 2Q/1H22 Results Aerostructures € mln 2Q 2021 2Q 2022 % Change Orders (€mln) Revenues (€mln) EBITA (€mln) and Profitability Orders 97 64 (34.0%) 925 948 1.125 Revenues 194 111 (42.8%) 1.020 97 EBITA (36) (42) (16.7%) 819 53 RoS (18.6%) (37.8%)
Slide 21: Space
Space Recovery of Manufacturing and confirmed solid performance of Satellite services 2018-2021 Results 2Q/1H22 Results EBITA (€mln) 2Q 2021 2Q 2022 % Change 58 62 € mln EBITA 20 -4 -120.0% 39 23 1H 2021 1H 2022 % Change 2018 2019 2020 2021 € mln EBITA 23 3 -87.0% 2022 Outlook(*) • Growing volumes d
Slide 22: Agenda
Agenda • Key messages Alessandro Profumo, Chief Executive Officer • Financial review Alessandra Genco, Chief Financial Officer • Q&A • Sector results • Appendix 22 © 2022 Leonardo - Società per azioni 2Q/1H22 Results
Slide 23: 2Q/1H 2022 Results
2Q/1H 2022 Results Group Performance 2Q 2021 2Q 2022 % Change 1H2021 1H2022 % Change FY 2021 € mln New Orders 3,261 3,521 +7.9% 6,682 7,310 +9.4% 14.307 Backlog 35,883 36,358 +1.3% 35.534 Revenues 3,555 3,570 +0.4% 6,345 6,576 +3.6% 14.135 EBITA 305 286 -6.2% 400 418 +4.5% 1.123 EBITA Restated* 290
Slide 24: Backlog and revenues by Geography
Backlog and revenues by Geography 1H22 REVENUES € 6.6 bn REST OF WORLD 22% UK 14% UK 13% REST OF WORLD 22% ITALY 29% REST OF EUROPE 16% REST OF ITALY 24% EUROPE 23% NORTH AMERICA 13% 1H22 BACKLOG € 36.4 bn NORTH AMERICA 24% 24 © 2022 Leonardo - Società per azioni 2Q/1H22 Results
Slide 25: Solid Group liquidity ensures adequate financial flexibility
Solid Group liquidity ensures adequate financial flexibility • Available credit lines • New ESG Credit Line signed in October 2021 equal to € 2.4 bn • Existing credit lines unconfirmed equal to € 1.0 bn together with cash in-hands ensure a Group’s liquidity of approx. € 3.8 bn €3.8bn €1.0bn €2.4bn €
Slide 26: Balanced debt maturity profile
Balanced debt maturity profile Bond Dollar Bond Euro In € mil EIB Term Loan CDP 500 600 600 DEBT MATURITY 500 500 Average life: ≈ 4,4 years 100 175 63 63 63 119 37 2022 19 2023 38 2024 50 2025 2026 2027 2028-2030 44 2031 25 2032 13 2033 …. 2039 2040 CREDIT RATING As of today Before last review Date
Slide 27: Covenants FY2021
Covenants FY2021 FY2021A FY2021A Post IFRS 16 Post IFRS 16 EBITDA* € 1,538 mln Group Net Debt € 3,122 mln Net Interest € 138 mln Leasing (IFRS 16) - € 568 mln Financial Debt to MBDA - € 664 mln Group Net Debt for Covenant € 1,890 mln EBITDA* € 1,538 mln EBITDA / Net Interest 11.1 Group Net Debt / EB
Slide 28: 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 29: 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 29 © 2022 Leonardo - Società per azioni