Leonardo Spa · MIL:LDO
Leonardo Spa — Finmeccanica — Q1 2014 Earnings Presentation
24 slides from Leonardo Spa's earnings presentation, May 7, 2014
Slide 1: Q1 2014 Results Presentation
Q1 2014 Results Presentation Alessandro Pansa Chief Executive Officer Gian Piero Cutillo Chief Financial Officer 7 May 2014
Slide 2: Overview, Q1 2014 Results, Appendix
OVERVIEW (Alessandro Pansa - CEO) Q1 2014 RESULTS (Gian Piero Cutillo - CFO) APPENDIX
Slide 3: Overview (1/2)
OVERVIEW (1/2) Q1 is our least significant quarter Group results subject to the usual seasonality and in line with plan across all the Operating Companies Good order momentum, softer revenues consistent with expectations, profitability maintained On track to achieve FY guidance 3
Slide 4: Overview (2/2)
OVERVIEW (2/2) Good order intake and solid backlog makes us feel positive looking forward We remain confident in Aerospace & Defence businesses Good businesses becoming stronger, as you can see in the results Completed the settlement of the Fyra contract in the Rolling Stock business, also with the
Slide 5: Q1 2014 Results (Gian Piero Cutillo - CFO)
OVERVIEW (Alessandro Pansa - CEO) Q1 2014 RESULTS (Gian Piero Cutillo - CFO) APPENDIX 5
Slide 6: Group Performance (1/2)
GROUP PERFORMANCE (1/2) TESTO FINTO Q1 Testo FY 2013 2013 € Mln 2014 % Change Restated Restated Orders 2,896 2,613 10.8% 15,059 Backlog 36,732 36,255 36,831 Revenues 2,946 3,099 (4.9%) 13,690 EBITA 153 161 (5.0%) 878 ROS % 5.2% 5.2% 0.0 p.p. 6.4% EBIT 111 130 (14.6%) (16) Net Income after minorities
Slide 7: Group Performance (2/2)
GROUP PERFORMANCE (2/2) TESTO FINTO Testo Total continuing A&D Transportation operations Q1 2013 % Q1 2013 Q1 2013 € Mln Q1 2014 Q1 2014 % Change Q1 2014 % Change Restated Change Restated Restated Orders 2,668 2,471 8.0% 229 145 57.9% 2,896 2,613 10.8% Backlog 28,713 28,565* 0.5% 8,234 8,494* (3.8%)
Slide 8: Q1 2014 Operating Highlights
Q1 2014 OPERATING HIGHLIGHTS ORDERS Good order intake driven by Helicopters in A&D (i.e. UK MoD contracts) Peruvian driverless metro contract leveraging core capabilities of Ansaldo STS and AnsaldoBreda; not included in Q1 results REVENUES Slower start to year in Defence Electronics as expected Temp
Slide 9: FY2014 Outlook Assumptions
FY2014 OUTLOOK ASSUMPTIONS ORDERS: Solid order intake, confirming A&D book to bill above 1 REVENUES: broadly flat / slightly lower PROFITABILITY: Efficiency gains/restructuring support further improvement in A&D ROS, close to 9% RESTRUCTURING COSTS P&L: substantially lower in 2014 (vs €395mln in 201
Slide 10: 2014 Group Guidance Unchanged
2014 GROUP GUIDANCE UNCHANGED Testo TESTO FINTO FY2013A (restated according to IFRS11) FY2014E (according to IFRS11) GROUP A&D GROUP A&D Orders € bn 15.1 13.0 13.0 – 13.5 11.5 – 12.0 Revenues € bn 13.7 11.8 13.0 – 13.5 11.0 – 11.5 EBITA €mln 878 988 930 - 980 970 – 1,030 FOCF €mln (220) 135 (100) -
Slide 11: Conclusions
CONCLUSIONS Results in line with expectations in our least significant quarter Good order momentum Benefits of restructuring maintaining profitability 11
Slide 12: Appendix
OVERVIEW (Alessandro Pansa - CEO) Q1 2014 RESULTS (Gian Piero Cutillo - CFO) APPENDIX 12
Slide 13: Application of New IFRS 11
APPLICATION OF NEW IFRS 11 New International accounting standards (IFRS 10, 11 and 12) effective from 1 January 2014 IFRS 11 no longer allows for the accounting of Joint Ventures under the proportionate method Consequently, Finmeccanica no longer consolidates its Joint Ventures (primarily ATR, MBDA
Slide 14: Helicopters
HELICOPTERS TESTO FINTO Q1 FY 2013 2013 2014 %ch. YoY € Mln Restated Restated Orders 1,514 906 67.1% 4,384 Revenues 903 948 (4.7%) 4,049 EBITA 112 112 0.0% 547 ROS % 12.4% 11.8% 0.6 p.p 13.5% Orders demonstrating continued momentum including contracts signed with UK MoD (upgrading of 25 AW101 and Ap
Slide 15: Aeronautics
AERONAUTICS TESTO FINTO Q1 Testo FY 2013 2013 2014 %ch. YoY € Mln Restated Restated Orders 432 768 (43.8%) 3,422 Revenues 651 565 15.2% 2,816 EBITA 28 25 12.0% 199 ROS % 4.3% 4.4% (0.1) p.p. 7.1% Orders in Q1 2014 compared against a very strong Q1 2013, that benefitted from 50 shipsets of B787. New
Slide 16: EU Defence Electronics and Security - Selex ES
EU DEFENCE ELECTRONICS AND SECURITY-Selex ES TESTO FINTO Testo Q1 FY 2013 2013 2014 %ch. YoY € Mln Restated Restated Orders 443 476 (6.9%) 3,457 Revenues 626 720 (13.1%) 3,214 EBITA 6 6 0.0% 71 ROS % 1.0% 0.8% 2 p.p. 2.2% Orders slightly down in Q1 2014 as Q1 2013 benefitted from EFA DASS and Captor
Slide 17: US Defence Electronics and Security - DRS
US DEFENCE ELECTRONICS AND SECURITY – DRS TESTO FINTO Q1 Testo FY 2013 2013 2014 %ch. YoY $ Mln Restated Restated Orders 395 364 8.5% 1,991 Revenues 395 524 (24.6%) 2,213 EBITA 13 27 (51.9%) 194 ROS % 3.3% 5.2% (1.9)p.p. 8.8% Orders in line with expectations Revenues in line with expectations, with
Slide 18: Space
SPACE TESTO FINTO Q1 FY 2013 %ch. 2013 2014 € Mln Restated YoY Restated EBITA 7 4 75% 54 EBITA Margin n.a. n.a. n.a. n.a. Athena Fidus satellite launched in Q1 2014; underlying performance broadly in line with the figures reported in 2013 EBITA affected by some exchange rate losses Profitability exp
Slide 19: Defence Systems
DEFENCE SYSTEMS Testo Q1 FY 2013 2013 2014 %ch. YoY € Mln Restated Restated Orders 33 85 (61.2%) 582 Revenues 103 124 (16.9%) 512 EBITA 3 21 (85.7%) 112 ROS % 2.9% 16.9% (14) p.p 21.8% Orders and Revenues in line with expectations, driven by some contracts winding down. New orders include a navy con
Slide 20: Transportation
TRANSPORTATION TESTO FINTO Testo ANSALDO STS Q1 FY 2013 2013 2014 %ch. YoY € Mln Restated Restated Orders 147 120 22.7% 1,484 Revenues 263 248 6.2% 1,230 EBIT 22 20 5.7% 117 EBIT/Revenues% 8.2% 8.2% 0 p.p. 9.5% ANSALDOBREDA Q1 FY 2013 2013 2014 %ch. YoY € Mln Restated Restated Orders 75 12 525% 384
Slide 21: Robust Financial Position (as of end of March 2014)
ROBUST FINANCIAL POSITION (as of end of March 2014) No refinancing needs before end 2017 Strong liquidity position Bonds have neither financial covenants nor rating pricing grids Revolving credit facility has no financial covenants Average life ≈ 8.5 years The €2.4 bn RCF will expire in September 20
Slide 22: Liquidity Position (as of end of March 2014)
LIQUIDITY POSITION (as of end of March 2014) In order to cope with possible volatilities in financial needs, Finmeccanica can leverage: Availability of – 31 March cash balance of €0.6 bn – Credit lines worth €3.0 bn (confirmed and unconfirmed), utilized for €89 mln at 31 adequate March 2014 committe
Slide 23: 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 24: Investor Relations & SRI Contacts
Investor Relations & Sustainable Responsible Investors (SRI) Contacts Raffaella Luglini Head of Investor Relations & SRI ir@finmeccanica.com +39 06 32473.066 www.finmeccanica.com/investors raffaella.luglini@finmeccanica.com Valeria Ricciotti Paolo Salomone Financial Communication ESG +39 06 32473.69