Slide 1: 2Q/1H2021 Results Presentation
2Q/1H2021 Results Presentation Alessandro Profumo Chief Executive Officer Alessandra Genco Chief Financial Officer Rome, 29 July 2021
Slide 2: Agenda
Agenda > Key messages Chief Executive Officer > 2Q/1H2021 Results Chief Financial Officer > Sector Results > Appendix © 2019 Leonardo - Società per azioni 2
Slide 3: Key messages
2Q/1H2021 Results Presentation Key messages • Solid first half results with strong and resilient military-governmental business • All businesses on track to deliver targets: FY21 Guidance confirmed • Some positive signs in challenging civil aeronautics • Strong foundations and core fundamentals givi
Slide 4: Solid first half and on track
2Q/1H2021 Results Presentation Solid first half and on track Progressing well with our Plan: 2021 Guidance confirmed BACKLOG* € 35.8 bn ORDERS € 6.7 bn +9.5% YOY CONTINUED STRONG 13% 19% 29% COMMERCIAL 29% 26% • Strong and resilient PERFORMANCE AND 20% 12% 52% military/governmental SOLID BACKLOG • B
Slide 5: Strong confidence in medium long term potential of our main businesses
2Q/1H2021 Results Presentation Strong confidence in medium long term potential of our main businesses Electronics Helicopters • Strong military/governmental and resilient • Strong order book civil business • Long-term trusted relationships with • Attractive Customer Support & Training Helicopter cus
Slide 6: ESG: underpinning our purpose and strategy
2Q/1H2021 Results Presentation ESG: underpinning our purpose and strategy Effective management of economic, environmental and social risks and opportunities creates long-term value, ensuring reliable and robust returns 10% of MBO linked to ESG targets KPIs Weight Functioning Target / Guidance mechan
Slide 7: Agenda
Agenda > Key messages Chief Executive Officer > 2Q/1H2021 Results Chief Financial Officer > Sector Results > Appendix © 2019 Leonardo - Società per azioni 7
Slide 8: 1H 2021 Highlights
2Q/1H2021 Results Presentation 1H 2021 Highlights Solid first half on track with continued strong commercial activity and strengthening performance • Continued strong demand for our products supports growing top line • Backlog at € 35.9 bn, book to bill >1 • Order intake of € 6.7 bn, up 9.5% YoY • R
Slide 9: Order Intake
2Q/1H2021 Results Presentation Order Intake Continued strong commercial activity € mln ∆ % YoY 1H2020A 6,104 Large IMOS contract booked in 1H20 . In 2021 Orders for 36 TH-73A (AW119) for the US Navy, follow-on tranche of NEES for Italian army, 9AW139 for Saudi HELICOPTERS 2,009 -20.5% Royal Court EF
Slide 10: Revenues
2Q/1H2021 Results Presentation Revenues Strong top line performance across the Group € mln ∆ % YoY 1H2020A 5,878 Ramp-up in military/governmental (NH90 Qatar and TH-73A US Navy); HELICOPTERS 1,890 11.6% AW189/AW149 and AW169 ELECTRONICS EUROPE 2,092 15.5% Growth across businesses delivering on stron
Slide 11: EBITA and Profitability
2Q/1H2021 Results Presentation EBITA and Profitability Strengthening performance as we increase volumes and reduce COVID impact € mln RoS ∆ % YoY 1H2020A 292 HELICOPTERS 148 7.8% 6.5% Higher volumes and improved industrial efficiency; different mix impacting RoS Higher volumes, improved industrial e
Slide 12: From EBITA to Net Result
2Q/1H2021 Results Presentation From EBITA to Net Result Net Result benefitting from EBITA increase 1H 2020A 1H 2021A +37.0% +52.9% +195.0% YoY YoY YoY 292 400 -35 -45 227 -7 -11 347 -87 -6 -14 -110 -1 € mln € mln -82 -29 177 -29 1 60 EBITA Non recurring Restructuring PPA EBIT Net financial Hedging I
Slide 13: Strong liquidity position at ca. € 4.2 bn
2Q/1H2021 Results Presentation Strong liquidity position at ca. € 4.2 bn • Cash availability and credit facilities ensure Group’s liquidity above € 4.2 bn • Confirmed credit lines equal to € 1.8 bn • Unconfirmed credit lines equal to € 0.8 bn • Credit Lines signed in May 2020 equal to € 1.25 bn(1) €
Slide 14: 2021 Guidance confirmed
2Q/1H2021 Results Presentation 2021 Guidance confirmed 2021E FY2021 FY2020A • Military/governmental business robust and resilient Guidance* New Orders (€ bn) 13.8 ca. 14 driving top-line growth, improving profitability and Revenues (€ bn) 13.4 13.8-14.3 FOCF generation EBITA (€ mln) 938 1,075-1,125
Slide 15: Closing remarks
2Q/1H2021 Results Presentation Closing remarks • Back on the growth path • Continued strong commercial activity globally building our backlog (book-to-bill>1) • Top line growth across all sectors • Robust profitability benefitting from increasing volumes and solid industrial performance • Cash flow
Slide 16: Q&A
Q&A © 2019 Leonardo - Società per azioni 16
Slide 17: Sector Results
SECTOR RESULTS © 2019 Leonardo - Società per azioni 17
Slide 18: Helicopters
2Q/1H2021 Results Presentation Helicopters DELIVERIES BY PROGRAMME 2Q 2020 2Q 2021 % Change 1H2020 1H2021 % Change FY 2020 1H2021 = 47 new units € mln AW101 Orders 1,040 1,154 11% 2,526 2,009 (20.5%) 4,494 NH90 5 1 AW109 / AW119 Revenues 989 1,098 11% 1,693 1,890 11.6% 3,972 AW189 /149 13 6 AW169 EB
Slide 19: Defence Electronics & Security
2Q/1H2021 Results Presentation Defence Electronics & Security ELECTRONICS - EU 2021 OUTLOOK* 2Q 2020 2Q 2021 % Change 1H2020 1H2021 % Change FY 2020 € mln • Growth in revenues recovering from 2020 Orders 558 889 59.3% 1,420 2,433 71.3% 4,710 pandemic slow down Revenues 966 1,161 20.2% 1,812 2,092 15
Slide 20: Aeronautics
2Q/1H2021 Results Presentation Aeronautics AIRCRAFT 2021 OUTLOOK* 2Q 2020 2Q 2021 % Change 1H2020 1H2021 % Change FY 2020 € mln • Aircraft production increase driven by Orders 154 640 315.6% 669 1,235 84.6% 2,031 EFA Kuwait, F35 and proprietary products (M-345, M-346) Revenues 643 724 12.6% 1,074 1,
Slide 21: Space
2Q/1H2021 Results Presentation Space 2Q 2020 2Q 2021 % Change 1H2020 1H2021 % Change FY 2020 € mln EBITA (8) 20 350.0% (10) 23 330.0% 23 2021 OUTLOOK* • Volumes an profitability expected to increase supported by gradual recovery of Manufacturing • Confirmed solid performance of Satellite services *I
Slide 22: Appendix
APPENDIX © 2019 Leonardo - Società per azioni 22
Slide 23: 2Q/1H2021 Results: Group Performance
2Q/1H2021 Results Presentation 2Q/1H2021 Results Group Performance 2Q 2020 2Q 2021 % Change 1H2020 1H2021 % Change FY 2020 € mln New Orders 2,683 3,261 21.5% 6,104 6,682 9.5% 13.754 Backlog 35,920 35,883 -0.1% 35.516 Revenues 3,287 3,555 8.2% 5,878 6,345 7.9% 13.410 EBITA 251 305 21.5% 292 400 37.0%
Slide 24: Balanced debt maturity profile
2Q/1H2021 Results Presentation Balanced debt maturity profile No refinancing needs until 2022 In € mil Bond Dollar Bond Euro EIB Term Loan DEBT MATURITY CDP Average life: ≈ 4,4 years CREDIT RATING As of today Before last review Date of review Moody’s Ba1 / Stable Outlook Ba1 / Positive Outlook Octob
Slide 25: Covenant
2Q/1H2021 Results Presentation Covenant FY2020A FY2020A Post IFRS 16 Post IFRS 16 EBITDA* € 1,378 mln Group Net Debt € 3,318 mln Net Interest € 168 mln Leasing (IFRS 16) - € 555 mln Financial Debt to MBDA - € 663 mln Group Net Debt for Covenant € 2,100 mln EBITDA* € 1,378 mln EBITDA / Net Interest 8
Slide 26: Remuneration Policy
Remuneration Policy aligned with shareholders interests, business strategy and ESG criteria • Convergence of interests between management and shareholders CEO Remuneration components • Aligning the remuneration package with international market best practices Fixed Remuneration Short-Term Variable L
Slide 27: Performance Gate
CEO short term variable remuneration (MBO) Type of objective KPIs Weight Functioning mechanism Target / Guidance Performance Gate 1,075 € mil. – If one or both of the following thresholds are not Group EBITA 30% On / off 1,125 € mil. achieved: Economic and • Group EBITA: 85% of Budget Financials • G
Slide 28: Long Term Incentive Plan (LTIP)
Long Term Incentive Plan (LTIP) KPIs Weight Reference Performance range Payout range financial period (Target / Guidance) 1-4 100% Relative Total Shareholder 5- 6 50% 35% 2021-2023 Return 7 25% 8-13 0% Target (< 3 € bil.) 100% Group Net Debt 25% 2021-2023 Minimum 50% Target (ca. 14%) 100% Return on
Slide 29: Safe Harbor Statement
2Q/1H2021 Results Presentation 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-loo
Slide 30: Contacts
Contacts Valeria Ricciotti Head of Investor Relations and Credit Rating Agencies +39 06 32473.697 valeria.ricciotti@leonardocompany.com Leonardo Investor Relations and Credit Rating Agencies +39 06 32473.512 ir@leonardocompany.com leonardocompany.com © 2019 Leonardo - Società per azioni 30