Slide 1: 1Q 2018 Results Presentation
1Q 2018 Results Presentation Alessandro Profumo Chief Executive Officer Alessandra Genco Chief Financial Officer Rome, 8 May 2018
Slide 2: Executing the Industrial Plan
Executing the Industrial Plan Chief Executive Officer 1Q 2018 Results & Outlook Chief Financial Officer
Slide 3: Key messages
Key messages Solid start to the year Orders at € 2.2 bn Revenues at € 2.5 bn EBITA at € 153 mln, RoS at 6.2% FOCF at € (1.1) bn Net Debt at € 3.6 bn Positive progress in Helicopters recovery 2018 Guidance confirmed Fully focused on Industrial Plan execution 3 © Leonardo - Società per azion
Slide 4: Executing the Industrial Plan
Executing the Industrial Plan Doing the right things for the long-term Confident about the opportunity for Leonardo Well positioned for positive market outlook Leveraging «One Company» model Achieving steady top line and profitability growth We are going to set this business up to win Sustaina
Slide 5: Delivering on promises
Delivering on promises Step forward in the execution of the Industrial Plan 2018 Enhancing commercial strategy Strengthening international presence: Leonardo 2.0 Enhanced Business Leonardo international Approach Transformation Portfolio Exploiting opportunities in Customer Value Creation Reshapi
Slide 6: 1Q 2018 Results & Outlook
Executing the Industrial Plan Chief Executive Officer 1Q 2018 Results & Outlook Chief Financial Officer 6 © Leonardo - Società per azioni
Slide 7: 1Q 2018 Highlights
1Q 2018 Highlights Solid 1Q 2018 performance FOCF influenced by seasonality and EFA Kuwait 2018 Guidance confirmed IFRS15 impact not material but affecting phasing between quarters in Helicopters 7 © Leonardo - Società per azioni
Slide 8: Order intake
Order intake Solid performance mainly driven by Helicopters NEW ORDERS ORDER BACKLOG Δ% CH. VS. 1Q2017 As at 31 March 2018 € mln +33.1% -7.1% -41.6% -18.2% ca. € 33.4 bn 2,647 723 (135) 2,164 28% 37% 35% 965 Helicopters Electronics, Defence and Security Systems Aeronautics 611 1Q 2017 Helicopters El
Slide 9: Revenues
Revenues Slight improvement with first signs of recovery in Helicopters Δ% CH. VS. 1Q2017 +27.8% -0.6% -2.6% +3.8% € mln Including ca. € 75 mln of negative exchange rate 639 (87) 2,451 2,361 1,149 750 1Q 2017* Helicopters Electronics, Aeronautics Eliminations & 1Q 2018 Defence and Other Security Sys
Slide 10: EBITA and Profitability
EBITA and Profitability Broadly stable YoY; good start to the year in Helicopters Δ% CH. VS. 1Q2017 +55.9% -17.0% +2.2% -1.3% € mln Including ca. € 5 mln of negative exchange rate 47 7 (27) 155 (RoS 7.4%) 153 (RoS 6.6%) (RoS 6.2%) 73 (RoS 6.4%) 53 (RoS 7.1%) 1Q 2017* Helicopters Electronics, Aeronau
Slide 11: Net Result Before Extraordinary Transactions
Net Result Before Extraordinary Transactions Flat YoY 1Q2017* 1Q2018 -1.3% -1.6% +2.0% € mln € mln 155 7 153 8 25 24 123 68 66 121 6 49 5 50 *1Q 2017 IFRS15 restated 11 © Leonardo - Società per azioni
Slide 12: 2018 Guidance confirmed: planting the seeds for growth
2018 Guidance confirmed: planting the seeds for growth IFRS15 FY2017 FY2017A FY2018E Impact Restatement New orders € bn 11.6 11.6 12.5 – 13.0 Revenues € bn 11.5 0.2 11.7 11.5 – 12.0 EBITA € bn 1.07 0.01 1.08 1.075 – 1.125 FOCF € mln 537 537 ca.100 Group Net Debt € bn 2.6 2.6 ca. 2.6 2018 exchange ra
Slide 13: Q&A
Q&A THANK YOU FOR YOUR ATTENTION
Slide 14: Sector Results
SECTOR RESULTS THANK YOU FOR YOUR ATTENTION
Slide 15: Helicopters
Helicopters Well positioned to capture growth opportunities 1Q FY DELIVERIES BY 2017 2017 % 2017 2017 PROGRAMME 2018 € mln Reported Restated Change Reported Restated 1Q2017 = 12 new units Orders 459 459 611 33.1% 3,153 3,153 6 Revenues 711 587 750 27.8% 3,262 3,438 4 1 1 EBITA 73 34 53 55.9% 260 281
Slide 16: Electronics, Defence & Security Systems
Electronics, Defence & Security Systems Remains strong 1Q FY 2018 OUTLOOK 2017 2017 % 2017 2017 2018 Revenues and € mln Reported Restated Change Reported Restated profitability almost flat Orders 1,039 1,039 965 (7.1%) 6,146 6,146 YoY Revenues 1,146 1,156 1,149 (0.6%) 5,506 5,550 Upward trends in
Slide 17: Aeronautics
Aeronautics Aircrafts positive outlook offsetting lower ATR and Aerostructures 1Q FY 2017 2017 % 2017 2017 2018 € mln Reported Restated Change Reported Restated Orders 1,237 1,237 723 (41.6%) 2,615 2,615 Revenues 656 656 639 (2.6%) 3,107 3,093 EBITA 46 46 47 2.2% 324 311 ROS % 7.0% 7.0% 7.4% 0.4 p.p
Slide 18: Space
Space Stable outlook 1Q FY 2017 2017 % 2017 2017 2018 € mln Reported Restated Change Reported Restated EBITA 8 12 7 (41.7%) 79 72 2018 OUTLOOK Revenues and profitability expected almost in line with 2017 18 © Leonardo - Società per azioni
Slide 19: Appendix
APPENDIX THANK YOU FOR YOUR ATTENTION
Slide 20: 1Q 2018 Results
1Q 2018 Results Group Performance 1Q FY 2017 2017 % 2017 2017 2018 € mln Reported Restated Change Reported Restated New Orders 2,647 2,647 2,164 (18.2%) 11,595 11,595 Backlog 34,832 35,189 33.360 (5.2%) 33,578 33,637 Revenues 2,476 2,361 2,451 3.8% 11,527 11,734 EBITA 187 155 153 (1.3%) 1,066 1,077
Slide 21: No material impact from IFRS15
No material impact from IFRS15 Leonardo applies retrospectively IFRS15 in 2018 FY2017 and 2017 quarters fully restated in accordance with IFRS15 when presenting the 2018 corresponding quarterly accounts Not material preliminary impacts on FY2017 KPI’s (higher revenues by ca. 2% and higher EBITA by c
Slide 22: Solid Financial Position as end of March 2018
Solid Financial Position as end of March 2018 € mln Dollar Bond Sterling Bond Euro Bond EIB DEBT MATURITY Average life: ≈ 5.5 years REVOLVING Renegotiated lowering margin (from 100 to 75 bps) and amount CREDIT FACILITY Lower margin (from € 2.0 bn to € 1.8 bn), expiring in 2023 Longer life CREDIT RAT
Slide 23: Availability of adequate committed liquidity lines as end of March 2018
Availability of adequate committed liquidity lines as end of March 2018 In order to cope with possible swings in € mln Undrawn at 31 March 2018 As of 31 March 2018 financing needs, Leonardo can leverage: 31 March cash balance of € 825 mln Credit lines worth € 2.5 bn (confirmed and unconfirmed)
Slide 24: 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 25: Contacts
External Relations, Communication, Italian Institutional Affairs, Investor Relations and Sustainability Contacts Raffaella Luglini EVP External Relations, Communication, Italian Institutional Affairs, Investor Relations and Sustainability +39 06 32473.066 raffaella.luglini@leonardocompany.com Valeri