Leonardo Spa · MIL:LDO
Leonardo Spa — Finmeccanica — Q1 2006 Earnings Presentation
14 slides from Leonardo Spa's earnings presentation, May 12, 2006
Slide 1: Finmeccanica Q1 2006 Results
Finmeccanica Q1 2006 Results Alessandro Pansa Co-Director General/CFO John Douglas Stewart VP Investor Relations Conference call – Rome, 12 May 2006 1
Slide 2: Financial Highlights
Financial Highlights • Revenues and EBIT up 27% and 32% respectively • Strong performance by Helicopters, Defence Electronics, Aeronautics and Energy • Net profit of Eur 383m benefits from capital gain on Ansaldo listing of Eur 355m • Net profit, excluding capital gain, rises from Eur 7m to Eur 28m
Slide 3: Main Financial Results
Main Financial Results (Eur mln) 1Q 06 1Q 05 %change FY 05 Revenues 2,748 2,157 +27 11,469 EBIT 100 76 +32 735 EBIT Margin 3.6% 3.5% +75 6.4% Net income 383 7 n.s. 396 Excluding capital gain 28 New orders 4,199 3,031 +39 15,383 Working Capital 703 1,677 n.s. 17 Net financial debt 1,481 1,611 n.s. 1,
Slide 4: Recent Events
Recent Events • Additional Ansaldo STS shares sold (Greenshoe) for Eur 60m in April bringing total IPO net proceeds to Eur 458m. Shares closed yesterday at Eur 8.8, up 13% vs IPO price of Eur 7.8 • Intergovernmental framework agreement signed between Russian and Italian ministers in April promotes b
Slide 5: Business Division Review
Business Division Review 5
Slide 6: Helicopters: high order intake supports solid growth
Helicopters: high order intake supports solid growth • Revenue Revenue growth growth driven driven by by production production start-up start-up on on US US 101 101 and and AW139 AW139 ramp ramp up up • Ebit Ebit improves improves due due to to higher higher volumes volumes and and integration integ
Slide 7: Defence electronics: profitability on track
Defence electronics: profitability on track • Revenues Revenues up up 70% 70% due due above above all all to to contribution contribution of of UK UK avionics avionics and and Datamat Datamat •(Euro mln) Q1 06 Q1 05 FY 05 • Revenues Revenues up up 13% 13% like-for-like like-for-like due due to to in
Slide 8: Aeronautics: civil outlook continues to improve
Aeronautics: civil outlook continues to improve • Increased Increased production production of of C27J C27J (Italy (Italy and and Greece) Greece) and and ATR ATR drive drive increase increase in in revenues revenues • Improvement Improvement in in Ebit Ebit and and margin margin primarily primarily
Slide 9: Space: institutional and commercial TLC outlook improving
Space: institutional and commercial TLC outlook improving • Revenues Revenues down down but but not not comparable comparable due due to to Alcatel- Alcatel- Finmeccanica Finmeccanica alliance alliance only only operational operational from from 11 July July 05 05 • Good Good order order intake inta
Slide 10: Defence Systems: profitability improves but outlook remains challenging
Defence Systems: profitability improves but outlook remains challenging • Revenues Revenues up up due due to to higher higher missile missile and and land land armament armament activities activities –– Increased Increased export export deliveries deliveries of of stand-off stand-off cruise cruise m
Slide 11: Civil activities: strong performance by Signalling & Systems
Civil activities: strong performance by Signalling & Systems Transport • Signalling Signalling & & Systems: Systems: Ansaldo Ansaldo STS STS revenues revenues and and Ebit Ebit (net (net of of IPO IPO listing listing costs) costs) up up 28% 28% and and 88% 88% respectively respectively •(Euro mln) Q
Slide 12: Guidance confirmed
Guidance confirmed 2006 2007 Revenues €12.7-13bn €13.6-14bn EBIT €840-860mln €960-1,000mln • Average Free Operating Cash Flow per Year (2006-08) of ca. €300mln • Dividend policy: increase together with profits • Optimal capital structure: Net debt/Equity < 35-40% • Net bank debt/EBITDA <2.0 12
Slide 13: Safe Harbour Statement
Safe Harbour 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 o
Slide 14: IR Contacts
IR Contacts Investor Relations Finmeccanica: Piazza Monte Grappa 4, 00195 Rome – Italy E-mail: investor_relations@finmeccanica.it Website: www.finmeccanica.it • John Douglas Stewart • Emilia Iannicelli Vice President Investor Relations IR Event Coordinator Tel. +39 06 32473.290 Tel. +39 06 32473.520