Leonardo Spa · MIL:LDO
Leonardo Spa — Leonardo Spa Ord — FY2023 Earnings Presentation
30 slides from Leonardo Spa's earnings presentation, Feb 29, 2024
Slide 1: Full Year 2023 Analyst Presentation
FULL YEAR 2023 ANALYST PRESENTATION FULL YEAR 2023 ANALYST PRESENTATION LEONARDO FY2023 PRELIMINARY RESULTS 29 February 2024
Slide 2: Disclaimer
DISCLAIMER • It should be noted that the approval of the draft statutory financial statements and the consolidated financial statements of Leonardo as of 31 December 2023 is scheduled for 11 March 2024. • Therefore, the data reported in this document have not completed the audit process (pursuant to
Slide 3: Agenda
1. Key messages, Roberto Cingolani, Chief Executive Officer and General Manager Agenda 2. FY2023 preliminary results, Alessandra Genco, Chief Financial Officer 3. Q&A 4. Appendix 3
Slide 4: Delivering on strategy and financial targets
FY 2023 preliminary results: delivering on strategy and financial targets Orders €17.9bn, +3.8% Ahead of FY 2023 guidance, with book-to-bill of 1.2x, reflecting strong commercial momentum Revenues €15.3bn, +3.9% In line with guidance, delivering on our strong backlog EBITA, margin €1.29bn, +5.8% YoY
Slide 5: Good strategic and financial progress in 2023
Good strategic and financial progress in 2023 • Direct reports to CEO reduced from 26 to 10 1 Reorganizing Leonardo • Appointed a new Chief Innovation Officer, Chief M&A and Strategy Officer, Chief Sustainability Officer and Cyber Division’s Managing Director • People Strategy focused on building a
Slide 6: Important progress towards ESG milestones in 2023
Important progress towards ESG milestones in 2023 • -9.5% Scope 1 & 2 market-based emissions vs 2022 • -7.5% water withdrawal vs 2022 Decarbonisation • -2.3% energy consumption vs 2022 • Continued commitment to SBTi • R&D as % of revenues at 14% vs 12% in 2022 Innovation • Data computing power per c
Slide 7: Key messages
Key messages • Successfully delivered on FY 2023 financial targets • Good progress on strategy • Focussed on our new Industrial Plan, to be presented on 12 th March • Transforming Leonardo into a global technology-based company • Strengthening the core business, while paving the way for the future 7
Slide 8: Agenda
1. Key messages, Roberto Cingolani, Chief Executive Officer and General Manager Agenda 2. FY2023 preliminary results, Alessandra Genco, Chief Financial Officer 3. Q&A 4. Appendix 8
Slide 9: Fully consolidating Telespazio
Fully consolidating Telespazio • Reviewed Space Alliance agreement with Thales • From 2024, Leonardo will fully consolidate Telespazio • For 2022 and 2023, Proforma KPIs available to show the effects of the full consolidation of Telespazio 9 FY 2023 preliminary results
Slide 10: FY23: Strong commercial and financial performance
FY23: Strong commercial and financial performance Pro-Forma for Telespazio consolidation1 FY 2022 FY 2023 Change FY 2023 FY 2022 FY 2023 Financial KPI (Actual) (Preliminary) (Guidance) New Orders, €bn 17.3 17.9 3.8% ca. 17 18.0 18.7 Revenue, €bn 14.7 15.3 3.9% 15 – 15.6 15.4 16.0 EBITA, €M 1,218 1,2
Slide 11: Helicopters: robust performance with increasing pace of deliveries
Helicopters: robust performance with increasing pace of deliveries €mln 2022 2023 Change Orders 6,060 5,513 -9.0% Revenues 4,547 4,725 3.9% EBITA 415 422 1.7% RoS (%) 9.1% 8.9% -0.2 p.p. Highlights • Continued good order development following a strong 2022 • 185 new helicopters delivered (149 units
Slide 12: Defence Electronics: strong commercial performance with growth across all segments
Defence Electronics: strong commercial performance with growth across all segments Electronics Europe DRS €mln 2022 2023 Change $mln 2022 2023 Change Orders 5,628 6,521 15.9% 3,156 3,516 11.4% Revenues 4,712 4,907 4.1% 2,693 2,826 4.9% EBITA * 553 600 8.5% 265 273 +3% RoS (%) 11.7% 12.2% +0.5 p.p. 9
Slide 13: Aircraft: resilient margin and profit contribution
Aircraft: resilient margin and profit contribution €mln 2022 2023 Change Orders 2,800 2,395 -14.5% Revenues 3,085 2,938 -4.8% EBITA 421 419 -0.5% RoS (%) 13.6% 14.3% 0.7 p.p. Highlights • Solid order intake from Fighter jets and cargo aircraft • Postponement of some export orders now expected in H1
Slide 14: Aerostructures & ATR: further progress in line with recovery plan
Aerostructures & ATR: further progress in line with recovery plan €mln 2022 2023 Change Orders 420 644 53.3% Revenues 475 636 33.9% EBITA* (189) (151) 20.1% RoS (%) (39.8%) (23.7%) 16.1 p.p. Highlights • Orderbook development reflecting continued recovery in air traffic • 39 fuselage sections and 32
Slide 15: Space: building blocks in place for new focussed division
Space: building blocks in place for new focussed division Pro-Forma for Telespazio consolidation €mln 2022 2023 Change Orders 780 763 -2.2% Revenues 650 701 7.8% EBITA * 63 53 -15.9% RoS (%) 9.7% 7.6% -2.1p.p. Highlights • Telespazio to be consolidated following amendment of Space Alliance agreement
Slide 16: Significant progress in cash generation, in line with targets
Significant progress in cash generation, in line with targets Free Operating Cash Flow Main drivers € mln FOCF Aerostructures cash drain • Mid-single digit revenue growth • Mid-single digit EBITA growth 635 • Continued cash discipline, and 539 working capital efficiency • Consistent contribution fro
Slide 17: Reduced gross debt by ca. 18% and net debt by ca. 26%
Reduced gross debt by ca. 18% and net debt by ca. 26% and cost of debt below 2023 target Gross debt(1)(2) Net debt(1) Cost of debt(1)(2)(3) 2023 target 2023 target ≤3,5% € 3.6bn € 3.0bn € 3.1bn 2023 target 3.3% € 2.6bn € 3.0bn € 2.3bn 2,3% 2021 2023 2021 2023 2021 2023 • Important deleveraging achie
Slide 18: Closing remarks
Closing remarks • Financial performance in line with expectations; significant improvement in FOCF • Helicopters – continued robust commercial performance, higher deliveries and customer support • Defence Electronics – strong commercial performance and positive growth across all sectors • Cyber – re
Slide 19: Agenda
1. Key messages, Roberto Cingolani, Chief Executive Officer and General Manager Agenda 2. FY2023 preliminary results, Alessandra Genco, Chief Financial Officer 3. Q&A 4. Appendix 19
Slide 20: Agenda
1. Key messages, Roberto Cingolani, Chief Executive Officer and General Manager Agenda 2. FY2023 preliminary results, Alessandra Genco, Chief Financial Officer 3. Q&A 4. Appendix 20
Slide 21: Helicopters
Helicopters 2019-2023 Results 4Q23 Results Orders (€ m ln) Revenues (€ m ln) EBITA (€ m ln) and Profitability 4,547 4,725 6,060 4,025 4,157 4Q 2022 4Q 2023 % Change 5,513 3,972 10.7% 4,641 9.6% 9.8% 9.1% 8.9% € mln 4,494 4,370 431 415 422 Orders 1,437 1,336 -7.0% 383 406 Revenues 1,393 1,523 +9.3% E
Slide 22: Electronics
Electronics 2019-2023 Results 4Q23 Results Orders Revenues EBITA and Profitability ELECTRONICS - EU 6,521 4,907 4Q 2022 4Q 2023 % Change 5,392 5,628 4,519 4,712 € mln 4,289 4,147 12.2% 4,444 4,710 11.7% Orders 2,134 1,666 -21.9% 10.7% 10.0% 600 Revenues 1,562 1,614 3.3% 3,516 2,729 2,757 2,879 2,826
Slide 23: Aircraft
Aircraft 2019-2023 Results 4Q23 Results Orders (€ m ln) Revenues (€ m ln) EBITA (€ m ln) and Profitability 2,668 2,800 3,268 3,085 2,938 2,395 4Q 2022 4Q 2023 % Change 2,634 13.3% 13.6% 14.3% 2,031 2,329 € mln 1,904 13.7% 13.5% 434 421 419 355 Orders 1,163 570 -51% 320 Revenues 1,126 1.000 -11.2% EB
Slide 24: Aerostructures and ATR
Aerostructures and ATR 2019-2023 Results 4Q23 Results Aerostructures Orders (€ m ln) Revenues (€ m ln) EBITA (€ m ln) and Profitability 948 1,125 4Q 2022 4Q 2023 % Change € mln 53 12 Orders 78 116 48.7% 644 819 581 Revenues 124 173 39.5% 636 -11 -69 -6 420 -24 365 475 EBITA -49 -33 32.7% 442 -86 -16
Slide 25: Revenue and Backlog diversification
Revenue and Backlog diversification Revenues and backlog by business Revenues and backlog by geography REVENUES REVENUES 30% 26% 24% 36% Defence Electronics 15% Italy 23% Helicopters 10% UK Aircraft US 42% Aerostructures Rest of Europe 47% 20% 11% 23% 29% Rest of World 3% 19% 21% 4% 18% BACKLOG BACK
Slide 26: Solid Group liquidity ensures adequate financial flexibility
Solid Group liquidity ensures adequate financial flexibility • As at 31 December 2023 Leonardo had sources of liquidity available for a total of about € 7.3bn to meet the financing needs of the Group’s, broken down as follows: • Cash in-hands equal to € 2.4bn • ESG Revolving Credit Facility (RCF) eq
Slide 27: 55% of Leonardo funding sources are ESG linked
55% of Leonardo funding sources are “ESG linked" KPIs selected fully aligned with ESG Financing sources strategy and Long-Term Incentive Plan ESG linked financial ~€5,9bn transactions 55% Reduction of CO2 emissions €2.4 bn ESG linked Revolving Credit ESG Facility (RCF) linked Employment of women wit
Slide 28: Balanced debt maturity profile
Balanced debt maturity profile TL DRS RADA Dollar Bond Euro In € mil EIB Term Loan CDP Debt maturity Average life: ≈ 2,3 years CREDIT RATING As of today Before last review Date of review S&P BBB- / Stable Outlook BB+ / Positive Outlook August 2023 Moody’s Baa3 / Stable Outlook Ba1 / Positive Outlook
Slide 29: 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 30: Contacts
CONTACTS Valeria Ricciotti Head of Investor Relations and Credit Rating Agencies +39 06 32473.697 valeria.ricciotti@leonardo.com Leonardo Investor Relations and Credit Rating Agencies +39 06 32473.512 ir@leonardo.com leonardo.com 30