Slide 1: 3Q/9M 2014 Results Presentation
3Q/9M 2014 Results Presentation Mauro Moretti Chief Executive Officer and General Manager Gian Piero Cutillo Chief Financial Officer 6 November 2014
Slide 2: Group Overview, Sector Results and Outlook, Appendix
GROUP OVERVIEW (CEO and General Manager) SECTOR RESULTS AND OUTLOOK (CFO) APPENDIX
Slide 3: Making Progress
MAKING PROGRESS Solid commercial performance across the Group Nine months results in line with expectations Good visibility on Q4 Raising FY Orders, Revenues and EBITA Guidance Taking actions to revitalise and reposition Finmeccanica – much further to go 3
Slide 4: Taking Actions to Deliver Change – Positive Discontinuity
TAKING ACTIONS TO DELIVER CHANGE – POSITIVE DISCONTINUITY Organisation: plan progressing as expected “One HQ”, fewer divisional board members and additional reporting disclosure towards a divisionalised model Cost reduction: heavy corporate cost reduction already effective Portfolio rationalisation:
Slide 5: Group Overview, Sector Results and Outlook, Appendix
GROUP OVERVIEW (CEO and General Manager) SECTOR RESULTS AND OUTLOOK (CFO) APPENDIX
Slide 6: Overall on Track: 9M Results
OVERALL ON TRACK: 9M RESULTS Solid order intake Revenues well on track Recovering profitability Successful cost actions on going across the group Less “below the line” volatility FOCF in line with last year, despite the payment for the Indian helicopter contract (€256mln paid in 2Q2014) Raise our gu
Slide 7: Group Performance (1/2)
GROUP PERFORMANCE (1/2) 3Q 9M FY 2013 % 2013 % 2013 2014 2014 Restated Change Restated Change Restated € Mln New Orders 2,169 3,069 (29.3%) 9,353 8,109 15.3% 15,059 Backlog 36,914 34,732 6.3% 36,831 Revenues 3,312 3,098 6.9% 9,869 9,728 1.4% 13,690 EBITA 227 239 (5.0%) 578 665 (13.1%) 878 ROS % 6.9%
Slide 8: Group Performance (2/2)
GROUP PERFORMANCE (2/2) 9M 2014 A&D Total Transportation continuing Divisional Total operations DRS JV € Mln Perimeter A&D Orders 6.505 1.038 n.a. 7.543 1.832 9.353 Backlog 26.743 1.495 n.a. 28.238 8.865 36.914 Revenues 7.479 969 n.a. 8.448 1.491 9.869 EBITA 503 (27) 63 539 39 578 ROS % 6,7% (2,7%)
Slide 9: Helicopters
HELICOPTERS 3Q 9M FY 2013 % 2013 % 2013 2014 2014 € Mln Restated Change Restated Change Restated Orders 398 813 (51.0%) 3,083 2,249 37.1% 4,386 Revenues 995 957 4.0% 3,036 2,998 1.3% 4,049 EBITA 116 120 (3.3%) 379 402 (5.7%) 547 ROS % 11.7% 12.5% (0.8 p.p.) 12.5% 13.4% (0.9 p.p.) 13.5% Orders up 37%
Slide 10: Aeronautics
AERONAUTICS 3Q Testo 9M FY 2013 % 2013 % 2013 2014 2014 € Mln Restated Change Restated Change Restated Orders 525 363 44.6% 1,529 1,635 (6.5%) 3,422 Revenues 756 577 31.0% 2,135 1,833 16.5% 2,816 EBITA 74 92 (19.6%) 148 161 (8.1%) 199 ROS % 9.8% 15.9% (6.1 p.p.) 6.9% 8.8% (1.9 p.p.) 7.1% Orders up i
Slide 11: EU Defence Electronics and Security - Selex ES
EU DEFENCE ELECTRONICS AND SECURITY-Selex ES 3Q 9M FY 2013 % 2013 % 2013 2014 2014 € Mln Restated Change Restated Change Restated Orders 552 643 (14.2%) 1,951 1,823 7.0% 3,457 Revenues 713 698 2.2% 2,267 2,244 1.0% 3,214 EBITA 16 (6) n.m. 63 20 n.m. 71 ROS % 2.2% (0,9%) 3.1 p.p. 2.8% 0.9% 1.9 p.p. 2
Slide 12: US Defence Electronics and Security – DRS
US DEFENCE ELECTRONICS AND SECURITY – DRS 3Q 9M FY 2013 2013 2013 2014 % Change 2014 % Change $ Mln Restated Restated Restated Orders 456 510 (10.6%) 1,407 1,361 3.4% 1,991 Revenues 486 538 (9.7%) 1,313 1,589 (17.4%) 2,213 EBITA 28 47 (40.4%) (36) 107 n.m. 194 ROS % 5.8% 8.7% (2.9 p.p.) (2.7%) 6.7%
Slide 13: Space and Defence Systems
SPACE 3Q 9M FY 2013 % 2013 % 2013 2014 2014 € Mln Restated Change Restated Change Restated EBITA 9 12 (25%) 26 36 (27.8%) 55 EBITA mainly affected by restructuring costs related to a redundancy plan launched early 2014; Q3 down driven by lower volumes DEFENCE SYSTEMS 3Q 9M FY 2013 2013 % 2013 2014 %
Slide 14: Transportation
TRANSPORTATION 3Q 9M FY ANSALDO STS 2013 % 2013 % 2013 2014 2014 € Mln Restated Change Restated Change Restated Orders 350 624 (44.0%) 1,239 1,014 22.2% 1,484 Revenues 289 277 4.5% 870 849 2.6% 1,230 EBIT 29 26 11.8% 81 78 3.9% 117 ROS 9.9% 9.3% 0.6 p.p. 9.3% 9.1% 0.2 p.p. 9.5% (EBIT/Revenues) % 3Q
Slide 15: FY2014 Upgraded Guidance Assumptions
FY2014 UPGRADED GUIDANCE ASSUMPTIONS ORDERS: Group orders trading ahead, FY book to bill remains ca.1 REVENUES: expected to be broadly flat/slightly higher vs. 2013 at Group level PROFITABILITY: expected to further improve driven by better performance in Helicopters, Aeronautics, Selex ES, Corporate
Slide 16: 2014 Guidance Upgraded
2014 GUIDANCE UPGRADED PREVIOUS NEW Testo TESTO FINTO FY2014E FY2014E GROUP GROUP Orders € bn 13.0 – 13.5 13.5 – 14.0 Revenues € bn 13.0 – 13.5 13.5 – 14.0 EBITA €mln 930 - 980 980 – 1,030 FOCF €mln (350) - (250) (350) - (250) Group Net € bn ca. 4.3 ca. 4.3 Debt FY 2014E FOCF and Group Net Debt fact
Slide 17: Group Overview, Sector Results and Outlook, Appendix
GROUP OVERVIEW (CEO and General Manager) SECTOR RESULTS AND OUTLOOK (CFO) APPENDIX
Slide 18: Financial Position (as of end of September 2014)
FINANCIAL POSITION (as of end of September 2014) No refinancing needs before end 2017 Strong liquidity position Bonds have neither financial covenants nor rating pricing grids Average life ≈ 8.2 years (€mil) Dollar Bond Sterling Bond 46 46 Euro Bond 46 515 46 EIB 46 950* 600 500 600 500 345** 238 39
Slide 19: Liquidity Position (as of end of September 2014)
LIQUIDITY POSITION (as of end of September 2014) In order to cope with possible volatilities in financial needs, Finmeccanica can leverage: – 30 September cash balance of €0.63 Billion – Credit lines worth €2.8 Billion (confirmed and unconfirmed), utilized for €719mil at Availability of 30 September
Slide 20: Safe Harbor Statement
SAFE HARBOR STATEMENT TESTO FINTO NOTE: Some of the statements included in this document are notTesto 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 statement
Slide 21: Investor Relations Contacts
Investor Relations & Sustainable Responsible Investors (SRI) Contacts Raffaella Luglini Head of Investor Relations & SRI +39 06 32473.066 raffaella.luglini@finmeccanica.com Valeria Ricciotti Paolo Salomone Financial Communication ESG +39 06 32473.697 +39 06 32473.829 valeria.ricciotti@finmeccanica.c