Leonardo Spa · MIL:LDO
Leonardo Spa — Finmeccanica — 9M 2005 Earnings Presentation
16 slides from Leonardo Spa's earnings presentation, Nov 14, 2005
Slide 1: Finmeccanica Nine Months 2005 Results Presentation
Finmeccanica Nine Months 2005 Results Presentation Alessandro Pansa Co-General Manager/CFO John D. Stewart VP Investor Relations Rome, 14 November 2005
Slide 2: Concentrated on the knitting…
Concentrated on the knitting… Current focus on: ¾ Improving the operating performances of our businesses. ¾ Integrating newly acquired Aerospace & Defence assets. ¾ Increasing profitability by enhancing quality of our P&L and balance sheet. ¾ Securing future organic growth by targeting key markets.
Slide 3: Profitability and order intake have improved significantly in 9M05 and 3Q05
Profitability and order intake have improved significantly in 9M05 and 3Q05 ¾ Ebit in 9M05 rose by more than 10% vs 9M04 (like-to-like) thanks mainly to Aeronautics and Space. ¾ Ebit in Q305 rose by more than 50% vs Q304 (like-to-like) driven mainly by Aeronautics and Defence. ¾ Net income in 9M05 t
Slide 4: 9M and 3Q 2005 Highlights
9M and 3Q 2005 Highlights (Eur mln) 9M 05 Change % 9M 04 3Q 05 Change % 3Q 04 Net Profit 180 22% 148 76 33% 57 Value of Production 7,554 17% 6,460 2,591 24% 2,085 EBIT 406 51% 269 156 n.s. 73 EBIT % 5.4% 4.2% 6.0% 3.5% Operating cash flow (505) 22% (647) End September 2005 End December 2004 ¾ Net De
Slide 5: Working capital under control
Working capital under control (Eur mln) 30/09/2005 31/12/2004 30/9/2004 30/6/2005 Net fixed assets 5,594 3,643 2,951 5,389 Net working capital 1,279 576 1,458 1,102 Net invested capital 6,873 4,219 4,409 6,491 Shareholders’ equity 4,638 3,649 3,221 4,549 Net debt 2,245 701 1,208 1,952 Net fixed as
Slide 6: Delivering on strategy
Delivering on strategy 1 July → New Finmeccanica-Alcatel space manufacturing and service companies become operational. 18 Agust → MoU signed with Sukhoi for collaboration on Russian regional jet. 29 September → Board approves flotation of Transport companies Ansaldo Signal and Ansaldo Systems on Ita
Slide 7: Guidance confirmed
Guidance confirmed 2005 2006 Revenue / annual >20% >10% change EBITA ~Eur 700m* ~Eur 800m 2007 2008 Revenues ~Eur 14bn >Eur 14bn *Including Aw 100%, consolidation of acquired UK Defence Electronics assets from 1 May and Space (Alcatel) operation from 1 July 2005. Cumulative Free Operating Cash Flo
Slide 8: Operating performance by business
Operating performance by business 8
Slide 9: Helicopters: improving outlook driven by…
Helicopters: improving outlook driven by….. (Euro mln) 9M 05 Change % 9M 04 Q3 05 Change % Q3 04 3Q 03 Value of Production 1,721 93% 890 551 77% 311 EBIT 174 79% 97 48 92% 25 EBIT Margin 10.1% - 10,9% 8.7% 8.0% Orders 2,892 n.s. 400 472 n.s. 129 - Integration benefits offset weaker domestic/export
Slide 10: Defence Electronics: exciting growth prospects
Defence Electronics: exciting growth prospects. (Euro mln) 9M 05 Change % 9M 04 Q3 05 Change % Q3 04 Value of Production 1,932 17% 1,657 712 39% 511 EBIT 114 9% 105 33 83% 18 EBIT Margin 5.9% 6.3% 4.6% 3.5% Orders 3,367 n.s. 1,283 518 n.s. 205 New Defence Electronics activities aquired from -BAE con
Slide 11: Aeronautics: military continues to drive performance…
Aeronautics: military continues to drive performance… (Euro mln) 9M 05 Change % 9M 04 Q3 05 Change % Q3 04 Value of Production 1,405 5% 1,332 469 5% 448 EBIT 99 77% 56 51 113% 24 EBIT Margin 7.0% 4.2% 10.9% 5.4% Orders 2,116 n.s. 723 1,049 n.s. 123 - Q3: profitability boosted by compensation for c
Slide 12: Space: Alcatel-Finmeccanica new Space companies start operations
Space: Alcatel-Finmeccanica new Space companies start operations (Euro mln) 9M 05 Change % 9M 04 Q3 05 Change %Q3 04 Value of Production 547 5% 519 176 (5%) 185 EBIT 24 n.s 2 5 n.s 12 EBIT Margin 4.4% 0.4% 2.8% 6.5% Orders 330 (7%) 353 63 (40%) 105 - Lower than expected production activity impacts
Slide 13: Defence Systems: better than expected Q3 thanks to improved programme mix in MBDA
Defence Systems: better than expected Q3 thanks to improved programme mix in MBDA. (Euro mln) 9M 05 Change % 9M 04 3Q 05 Change % 3Q 04 Value of Production 706 (6%) 750 236 3% 229 EBIT 42 14% 37 22 n.s 4 EBIT Margin 5.9% 4.9% 9.3% 1.7% Orders 403 5% 382 71 (28%) 99 Including 25% of MBDA and 100% of
Slide 14: Non-core: Signalling & Systems strong, Vehicles weak
Non-core: Signalling & Systems strong, Vehicles weak (Euro mln) 9M 05 Change % 9M 04 3Q 05 Change % 3Q 04 Value of Production 899 (8%) 972 313 13% 278 EBIT 5 (85%) 33 18 n.s. 8 Transportation EBIT Margin 0.6% 3.4% 5.8% 2.9% Orders 1,394 5% 1,332 558 n.s. 245 (Euro mln) 9M 05 Change % 9M 04 3Q 05 Cha
Slide 15: 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 16: IR Contacts
IR Contacts Investor Relations Finmeccanica: Piazza Monte Grappa 4, 00195 Rome – Italy E-mail: investor_relations@finmeccanica.it Website: www.finmeccanica.it • John Douglas Stewart • Emilia Iannicelli Vice President Investor Relations IR Event Coordinator Tel. +39 06 32473.290 Tel. +39 06 32473.520