Leonardo Spa · MIL:LDO

Leonardo Spa — Finmeccanica — 9M 2008 Earnings Presentation

21 slides from Leonardo Spa's earnings presentation, Nov 13, 2008

  1. Slide 1: Finmeccanica Nine Month 2008 Results Presentation

    Finmeccanica Nine Month 2008 Results Presentation Alessandro Pansa Co-General Manager/ CFO John D. Stewart VP Investor Relations Rome, 13 November 2008

  2. Slide 2: Important Information

    Important Information ™ This communication may not be distributed in the United States. This communication is for information purposes only and does not constitute or form a part of any legal agreement or an offer for sale of any securities or a solicitation of an offer to purchase or subscribe for

  3. Slide 3: Share Capital Increase to fund DRS acquisition completed successfully

    Share Capital Increase to fund DRS acquisition…. • Subscription period ended on 7 November. During the rights offering period, 20 October 2008 - 7 November 2008, 417,369,675 rights were exercised. • A total of 150,253,083 new Finmeccanica ordinary shares subscribed, equivalent to 98.26% of the 152,9

  4. Slide 4: Strong performance by the newly acquired DRS Technologies

    Strong performance by the newly acquired DRS Technologies • Q3 revenues up 26% to $ 987mln. 9M revenues up 24% to $2,878mln • Q3 Proforma Ebita*, up 16% to $101mln. 9M Proforma Ebita* up 16% to $310mln • Quarterly record of US$1.2 billion in new orders (+11% YoY) for products and services and funded

  5. Slide 5: Acquisition of DRS Provides for Larger Scale and Higher Margins

    Acquisition of DRS Provides for Larger Scale and Higher Margins DRS Consensus(1) Illustrative Post-Deal Finmeccanica Guidance (Calendarised Figures) Finmeccanica Stand Alone (a) (b) (c) = (a+b) Revenues 9 €15.1 – 15.9bn ~ €3.0bn ~ €18.1 – € 18.9bn 2009E EBITA 2009E 9 €1,300 – 1,420m ~ €330mln ~ €1,6

  6. Slide 6: Finmeccanica's Conservative Financing Structure

    Finmeccanica’s Conservative Financing Structure Bond Financing Nominal Coupon Issuer Issue date Expiry date % Fixed rate: ~80% Amount (€m ) (bps) Finmeccanica Finance 2002 Dec-08 297 Variable €501m €500m €500m (1) Finmeccanica Finance 2003 Aug-10 501 37.5 €297m Finmeccanica Finance 2003 Dec-18 500 5

  7. Slide 7: Finmeccanica's Stand Alone 2008 and 2009 Guidance reconfirmed

    Finmeccanica’s Stand Alone 2008 and 2009 Guidance reconfirmed pointing to solid and profitable growth ahead 2008E 2009E Revenues € 14.25 – 14.9bn € 15.1 – 15.9bn Adj. EBITA € 1,170 – 1,240m € 1,300 – 1,420m Cumulative FOCF* 2008-2010 €1.3–1.5bn; 2008 in line with 2007 On track to achieve our long-te

  8. Slide 8: Finmeccanica 9M 2008 Financial Highlights

    Finmeccanica 9M 2008 Financial Highlights • Revenues up 6% to Eur 9,688 mln • Ebita Adjusted* up 10% to Eur 606 mln. Ebita Adjusted margin at 6.3% • Ebit up 11% to Eur 561 mln • Pre-extraordinary net profit up 16% to Eur 342 mln (excluding STM capital gain) • Orders rose 17% allowing backlog to reac

  9. Slide 9: 9M and 3Q 2008 Main Economic Results

    9M and 3Q 2008 Main Economic Results (Eur mln) 9M 08 Change % 9M 07 3Q 08 Change % 3Q 07 Revenues 9,688 6% 9,117 3,261 7% 3,047 EBITA*Adj 606 10% 552 206 2% 201 Margin 6.3% 6.1% 6.3% 6.6% EBIT 561 11% 507 186 3% 180 Margin 5.8% 5.6% 5.7% 5.9% Net Income 396 35% 294 100 (15%) 117 Excluding STM capita

  10. Slide 10: Main Financial Results

    Main Financial Results (Eur mln) 30/09/2008 31/12/2007 30/9/2007 Net working capital 636 (693) 764 FOCF* (1,542) 375 (1,432) Net financial debt 2,706 1,158 2,485 Debt/Equity 50% 21% 46% ROI 14.8% 18.9% 14.8% 11 227 -13 EVA *Free Operating Cash Flow: Operating Cash after investments, net financial ch

  11. Slide 11: Business Review

    », “7 FINMECCANICA Business Review 11

  12. Slide 12: Helicopters: strong growth in civil

    Helicopters: strong growth in civil (Euro mln) 9M 08 Change% 9M 07 Q3 08 Change% Q3 07 3Q 03 Revenues 2,188 5% 2,084 722 18% 610 EBITA Adj 233 5% 221 75 12% 67 EBITA Adj Margin 10.6% - 10.6% 10.4% - 11% Orders 3,398 63% 2,084 1,780 190% 614 • Revenues up 12% adjusted for translation impact • Growth

  13. Slide 13: Defence Electronics: good order intake

    Defence Electronics: good order intake (Euro mln) 9M 08 Change% 9M 07 Q3 08 Change% Q3 07 Revenues 2,373 (4%) 2,462 750 (12%) 857 EBITA Adj 145 (6%) 154 47 (13%) 54 EBITA Adj Margin 6.1% - 6.3% 6.3% - 6.3% Orders 2,684 15% 2,336 733 35% 542 • 9M and Q3 revenues driven by Avionics (EFA), Command & Co

  14. Slide 14: Aeronautics: strong military exports in Q3

    Aeronautics: strong military exports in Q3 (Euro mln) 9M 08 Change% 9M 07 Q3 08 Change% Q3 07 Revenues 1,701 14% 1,496 638 17% 545 EBITA Adj 117 4% 112 47 7% 44 EBITA Adj Margin 6.9% - 7.5% 7.4% - 8.1% Orders 1,448 (5%) 1,532 604 57% 384 • Strong order growth in Q3 driven by tactical transport aircr

  15. Slide 15: Space: production increased

    Space: production increased (Euro mln) 9M 08 Change% 9M 07 Q3 08 Change% Q3 07 Revenues 671 13% 593 220 2% 216 EBITA adj* 27 4% 26 12 9% 11 EBITA Adj* Margin 4% - 4.4% 5.5% - 5.1% Orders 579 6% 545 163 (26%) 220 • Important contracts in Q3 for payloads (Amos 5 and Sinosat); further orders for satell

  16. Slide 16: Defence Systems: good programme performance

    Defence Systems: good programme performance (Euro mln) 9M 08 Change% 9M 07 3Q 08 Change% 3Q 07 Revenues 758 5% 719 245 10% 222 EBITA Adj 56 47% 38 14 56% 9 EBITA Adj Margin 7.4% - 5.3% 5.7% - 4.1% Orders 740 66% 446 234 30% 180 Including 25% of MBDA and 100% of Oto Melara and WASS • Revenues driven

  17. Slide 17: Transportation: profitability improves

    Transportation: profitability improves (Euro mln) 9M 08 Change % 9M 07 3Q 08 Change % 3Q 07 Revenues 1,227 16% 1,054 414 26% 329 EBITA Adj 79 229% 24 29 314% 7 EBITA Adj. Margin 6.4% - 2.3% 7% - 2.1% Orders 922 (31)% 1,329 358 (51)% 734 • Revenue increase driven by all business segments • Profitabil

  18. Slide 18: Energy: strong order growth both in domestic and foreign markets

    Energy: strong order growth both in domestic and foreign markets 9M 08 Change % 9M 07 3Q 08 Change % 3Q 07 Revenues 801 7% 751 289 5% 274 EBITA Adj 62 32% 47 25 56% 16 Energy EBITA Adj Margin 7.7% - 6.3% 8.7% - 5.8% Orders 1,937 43% 1,351 874 16% 752 • Revenue growth mainly driven by Plants and Comp

  19. Slide 19: Appendix

    a) “7 FINMECCANICA Appendix 19

  20. Slide 20: Overview of the DRS Acquisition

    Overview of the DRS Acquisition – On 12-May-2008 Finmeccanica announced an agreement to acquire 100% of DRS Technologies (“DRS”) stock for $81 per share Uses of Funds $bn €bn all in cash Acquisition of Target Shares(1) 3.6 2.3 – Transaction valued at approx. $5.3bn Description (€3.7bn), inclusive of

  21. Slide 21: IR Contacts

    IR Contacts Investor Relations Finmeccanica investor_relations@finmeccanica.com Website: http://www.finmeccanica.com/Investor Relations John D. Stewart Raffaella Luglini Vice President Investor Relations Investor Relations Officer +39 06 32473.290 +39 06 32473.066 john.stewart@finmeccanica.com raffa

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