Leonardo Spa · MIL:LDO
Leonardo Spa — Q1 2019 Earnings Presentation
25 slides from Leonardo Spa's earnings presentation, May 8, 2019
Slide 1: 1Q 2019 Results Presentation
1Q 2019 Results Presentation Alessandro Profumo Chief Executive Officer Alessandra Genco Chief Financial Officer Rome, 8 May 2019 Investor Relations and Credit Rating Agencies
Slide 2: Executing the Industrial Plan
Executing the Industrial Plan Chief Executive Officer 1Q 2019 Results & Outlook Chief Financial Officer Appendix 2 © Leonardo - Società per azioni
Slide 3: Solid start to the year
Solid start to the year Good progress on top line growth o Orders up 16% at € 2.5 bn o Revenues up 11% at € 2.7 bn o EBITA up 7% at € 163 mln o Net Result up 54% at € 77 mln o FOCF at € (1.1) bn 2019 Guidance confirmed Fully focused on Industrial Plan execution 3 © Leonardo - Società per azioni
Slide 4: Executing the Industrial Plan: strong demand for our products
Executing the Industrial Plan Strong demand for our products 2019: € 380 mln for 4 AW101 plus support and training o Deliveries by 2022 POLAND 2018: > € 115 for 4 M346 plus support o Deliveries by 2020 2018-2019: Mounted Family of Computer Systems (MFoCS II) for U.S. Army USA 2018: $ 1.4 bn for up t
Slide 5: 1Q 2019 Results & Outlook
Executing the Industrial Plan Chief Executive Officer 1Q 2019 Results & Outlook Chief Financial Officer Appendix 5 © Leonardo - Società per azioni
Slide 6: 1Q 2019 Highlights
1Q 2019 Highlights Solid 1Q 2019 performance o Orders at € 2.5 bn, up 16% YoY o Revenues at € 2.7 bn, up 11 % YoY o EBITA at € 163 mln, up 7 % YoY, with RoS at 6.0% o FOCF at € (1.1) bn influenced by seasonality o Net Debt at € 4.0 bn, reflecting IFRS16 adoption from 1st January 2019 2019 Guidance c
Slide 7: Order intake
Order intake Solid performance driven by Leonardo DRS and Helicopters NH90 for Spain Strong Mainly Aircraft and Customer contribution (i.e. EFA Support & from Leonardo Support and +16% Training DRS (MFoCS II) JSF) YoY ORDER BACKLOG € mln 1Q 2019 ca. € 36.6 bn +12.6% +56.2% -37.2% 454 131 2,518 2,164
Slide 8: Revenues
Revenues Positive momentum in Defence Electronics and Helicopters Supported by Driven by Airborne governmental Systems and programmes Leonardo DRS In line with 1Q18 +11% YoY € mln +8.4% +15.7% +0.8% 644 61 2,725 2,451 1,329 813 1Q 2018 Helicopters Defence Electronics & Aeronautics Eliminations & Oth
Slide 9: EBITA and Profitability
EBITA and Profitability Solid performance across all businesses, with lower contribution from JVs Lower activities Higher volumes Aircraft and improved and higher and improved performance in development Higher profitability in all Aerostructures partially costs volumes business area offsetting ATR i
Slide 10: Net Result
Net Result Below the line benefitting from lower restructuring, PPA and net financial expenses 1Q 2018 1Q 2019 +6.5% +28.9% +54.0% 163 7 51 153 8 24 156 121 66 28 € mln € mln 77 5 50 EBITA Restruct. PPA EBIT Net fin. Income Net EBITA PPA EBIT Net fin. Income Net costs expenses taxes Result expenses
Slide 11: FY 2019 Guidance confirmed
FY 2019 Guidance confirmed FY2018A FY2019 Guidance New Orders (€ bn) 15.124 12.5 - 13.5 Revenues (€ bn) 12.240 12.5 - 13.0 EBITA (€ bn) 1.120 1.175 - 1.225 FOCF (€ mln) 336 ca. 200 Group Net Debt (€ bn) 2.4 ca. 2.3 ca. 2.8* 2018 exchange rate assumptions: €/USD 1.25 and €/GBP 0.90 *Including IFRS16
Slide 12: Closing remarks
Closing remarks Good progress on top line growth 2019 Guidance confirmed Fully focused on Industrial Plan execution 12 © Leonardo - Società per azioni
Slide 13: Sector Results
SECTOR RESULTS THANK YOU FOR YOUR ATTENTION
Slide 14: Helicopters
Helicopters Well positioned to capture growth opportunities DELIVERIES BY PROGRAMME 1Q2018 = 29 new units AW169 AW189 /149 AW109 / AW119 / SW4 / AW009 AW139 /W3 AW FAMILY AW101 1Q2019 = 19 new units 2019 OUTLOOK AW169 Well placed in most attractive segments Profitability strengthening; back to doubl
Slide 15: Defence Electronics & Security
Defence Electronics & Security Remain strong 2019 OUTLOOK 2019 revenue expected to increase Profitability improvement Leonardo DRS benefitting from positive market trends Avg. exchange rate €/$ @ 1.1357 in 1Q2019 Avg. exchange rate €/$ @ 1.2295 in 1Q2018 15 © Leonardo - Società per azioni
Slide 16: Aeronautics
Aeronautics Aircrafts positive outlook offsetting lower ATR 2019 OUTLOOK Higher revenues compared to 2018 o Aircraft production increase (especially EFA Kuwait) Good levels of profitability supported by o Solid Aircraft performance o First signs of recovery in Aerostructures benefitting from efficie
Slide 17: Space
Space Pressure on Manufacturing 2019 OUTLOOK Continued downturn in telecommunication market expected to affect Manufacturing activities 17 © Leonardo - Società per azioni
Slide 18: Q&A
Q&A 18 © Leonardo - Società per azioni
Slide 19: Appendix
APPENDIX 19 © Leonardo - Società per azioni
Slide 20: 1Q 2019 Results
1Q 2019 Results Group Performance Free Operating Cash-Flow (FOCF): this is the sum of the cash flows generated by (used in) operating activities (which includes interests and income taxes paid) and the cash flows generated by (used in) ordinary investment activity (property, plant and equipment and
Slide 21: Solid Financial Position as at end of March 2019
Solid Financial Position as at end of March 2019 Bond Dollar € mln Bond Sterling Bond Euro EIB DEBT MATURITY Term Loan Average life: ≈ 5,7 years (1) Repayment Conditions of The Term Loan Facility is characterized by a 5 years bullet repayment; the EIB New Debt Instruments financing is a 12 year amor
Slide 22: Availability of adequate committed liquidity lines
Availability of adequate committed liquidity lines as at end of March 2019 In order to cope with possible € mln Undrawn at 31 March 2019 As of 31 March 2019 swings in financing needs, Leonardo can leverage: o 31 March cash balance of € 1.0 bn o Credit lines worth € 2.5 bn (confirmed and unconfirmed)
Slide 23: IFRS 16
IFRS 16 IFRS 16 redefines recording methods of operating leases in the financial statements imposing a single recognition method for all types of leasing, with the consequent recognition in the balance sheet of the tangible assets and liabilities for future payments The main impacts deriving from th
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
CONTACTS Raffaella Luglini Chief Stakeholder Officer raffaella.luglini@leonardocompany.com Valeria Ricciotti Manuel Liotta Head of Investor Relations Head of Sustainability and Credit Rating Agencies +39 06 32473.666 +39 06 32473.697 manuel.liotta@leonardocompany.com valeria.ricciotti@leonardocompan