Slide 1: 3Q/9M 2019 Results Presentation
3Q/9M 2019 Results Presentation Alessandro Profumo Chief Executive Officer Alessandra Genco Chief Financial Officer Investor Relations and Credit Rating Agencies Rome, 7 November 2019
Slide 2: Agenda
Agenda > Executing the Industrial Plan Chief Executive Officer > 3Q/9M 2019 Results & Outlook Chief Financial Officer > Appendix © 2019 Leonardo - Società per azioni 2
Slide 3: Solid 9M 2019 performance
3Q/9M 2019 Results Presentation Solid 9M 2019 performance • Successfully driving commercial momentum • Nine months results in line with expectations o Good commercial performance and top line growth o EBITA up 9% and Profitability at 7.5% in line with our Plan • All main businesses delivering in lin
Slide 4: Fully focused on Industrial Plan execution: sustainable growth
3Q/9M 2019 Results Presentation Fully focused on Industrial Plan execution: sustainable growth HELICOPTERS ELECTRONICS LEONARDO DRS AIRCRAFT AEROSTRUCTURES • Successfully • Going from strength • Strongly growing in • Solid performance • On track with the achieving targets to strength the attractive
Slide 5: Agenda
Agenda > Executing the Industrial Plan Chief Executive Officer > 3Q/9M 2019 Results & Outlook Chief Financial Officer > Appendix © 2019 Leonardo - Società per azioni 5
Slide 6: 3Q/9M 2019 highlights
3Q/9M 2019 Results Presentation 3Q/9M 2019 highlights • Good progress in 3Q/9M o Orders at € 8.6 bn (9M18 included NH90 Qatar for ca. € 3 bn) o Revenues up 11% YoY at € 9.1 bn o EBITA up 9% YoY at € 686 mln with RoS at 7.5% o Net Result up 76.8% at € 467 mln o FOCF at € (1.2) bn, in line with usual
Slide 7: Order Intake
3Q/9M 2019 Results Presentation Order Intake Good commercial momentum across the Group 3Q18 included €3bn NH90 Qatar. Strong 9M19 Orders driven contribution from by military (NH90 Electronics and Mainly driven by Spain and AW101 Leonardo DRS Aircraft (EFA, F-35, Poland) and CS&T (MFoCS II) M345 and
Slide 8: Revenues
3Q/9M 2019 Results Presentation Revenues Positive momentum mainly in Defence Electronics & Security and Aeronautics CS&T and Higher EFA Kuwait, military/governmental Driven by Leonardo B787 and A220 offsetting lower civil DRS production rate +3.0% +12.5% +13.8% +10.8% YoY YoY YoY YoY € mln 2,304 (24
Slide 9: EBITA and Profitability
3Q/9M 2019 Results Presentation EBITA and Profitability Higher performance across all businesses, with lower contribution from Space Manufacturing and ATR Driven by Higher Aircraft and Corporate costs and military, CS&T Aerostructures Lower Manufacturing centralised activities and UK pension Higher
Slide 10: Net Result
3Q/9M 2019 Results Presentation Net Result Below the line benefitting from lower restructuring costs and PPA 9M 2018 9M 2019 +8.5% +74.2% +76.8% YoY YoY YoY 632 (187) 686 (7) (11) (20) 648 (188) (73) 465 372 (177) (93) 98 € mln € mln 99 263 (31) EBITA Restructuring costs PPA EBIT Net financial expen
Slide 11: FY 2019 Guidance confirmed
3Q/9M 2019 Results Presentation 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 2.351 ca. 2.3 ca. 2.8* 2018 exchange rate assumptions: €/USD 1.25 and €/GBP
Slide 12: Q&A
Q&A © 2019 Leonardo - Società per azioni 12
Slide 13: Sector Results
SECTOR RESULTS © 2019 Leonardo - Società per azioni 13
Slide 14: Helicopters
3Q/9M 2019 Results Presentation Helicopters Well positioned to capture growth opportunities 3Q 2018 3Q 2019 % Change 9M 2018 9M 2019 % Change FY 2018 € mln Orders 3,356 527 -84.3% 4,685 2,234 -52.3% 6,208 Revenues 826 841 +1.8% 2,656 2,736 +3.0% 3,810 EBITA 64 70 +9.4% 217 270 +24.3% 359 RoS 7.7% 8.
Slide 15: Helicopters
3Q/9M 2019 Results Presentation Helicopters DELIVERIES BY PROGRAMME REVENUES BY CUSTOMER/SEGMENT 9M2019 = 91 new units 9M2019 AW169 AW189 /149 20 71% 4 63% 37% 19 AW109 / AW119 / 29% SW4 / AW009 36 AW139 /W3 7 23 NH90 AW101 Civil Military/Governamental OE CS&T/Other AW159 / Lynx AW FAMILY 9M2018 = 1
Slide 16: Defence Electronics & Security
3Q/9M 2019 Results Presentation Defence Electronics & Security Growing Revenues and Profitability ELECTRONICS - EU 3Q 2018 3Q 2019 % Change 9M 2018 9M 2019 % Change FY 2018 2019 OUTLOOK € mln Orders 620 652 +5.2% 1,950 2,660 +36.4% 4,408 • 2019 revenue growth Revenues 843 867 +2.8% 2,587 2,738 +5.8%
Slide 17: Aeronautics
3Q/9M 2019 Results Presentation Aeronautics Solid Aircraft performance offsetting lower ATR 3Q 2018 3Q 2019 % Change 9M 2018 9M 2019 % Change FY 2018 € mln Orders 291 681 +134.0% 1,420 2,012 +41.7% 2,569 Revenues 599 915 +52.8% 2,025 2,304 +13.8% 2,896 EBITA 44 44 +0.0% 167 165 -1.2% 328 RoS 7.3% 4.
Slide 18: Space
3Q/9M 2019 Results Presentation Space Pressure on Manufacturing 3Q 2018 3Q 2019 % Change 9M 2018 9M 2019 % Change FY 2018 € mln EBITA 10 10 +0.0% 31 23 -25.8% 58 2019 OUTLOOK • Continued downturn in telecommunication market expected to affect Manufacturing activities © 2019 Leonardo - Società per az
Slide 19: Appendix
APPENDIX © 2019 Leonardo - Società per azioni 19
Slide 20: 3Q/9M 2019 Results
3Q/9M 2019 Results Presentation 3Q/9M 2019 Results Group Performance 3Q 2018 3Q 2019 % Change 9M 2018 9M 2019 % Change FY 2018 € mln New Orders 4,786 2,434 -49.1% 9,390 8,579 -8.6% 15,124 Backlog 34,501 35,672 +3.4% 36,118 Revenues 2,651 3,172 +19.7% 8,240 9,134 +10.8% 12,240 EBITA 162 199 +22.8% 63
Slide 21: Solid Financial Position as at end of September 2019
3Q/9M 2019 Results Presentation Solid Financial Position as at end of September 2019 Bond Dollar € mln Bond Sterling Bond Euro EIB DEBT MATURITY Term Loan Average life: ≈ 5,4 years (1) Repayment The Term Loan Facility is characterised by a 5 years bullet repayment; the EIB Conditions of New financin
Slide 22: Availability of adequate committed liquidity lines as at end of September 2019
3Q/9M 2019 Results Presentation Availability of adequate committed liquidity lines as at end of September 2019 • In order to cope with possible swings in financing needs, Leonardo can € mln Undrawn at 30 September 2019 As of 30 September 2019 leverage: o 30 September cash balance of € 1.0 bn o Credi
Slide 23: Safe Harbor Statement
3Q/9M 2019 Results Presentation 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-lo
Slide 24: Contacts
Contacts Valeria Ricciotti Head of Investor Relations and Credit Rating Agencies +39 06 32473.697 valeria.ricciotti@leonardocompany.com Leonardo Investor Relations and Credit Rating Agencies +39 06 32473.512 ir@leonardocompany.com leonardocompany.com latest sustainability achievements © 2019 Leonard