Slide 1: 3Q/9M2020 Results Presentation
3Q/9M2020 Results Presentation Alessandro Profumo Chief Executive Officer Alessandra Genco Chief Financial Officer Rome, 5 November 2020
Slide 2: Agenda
Agenda > Key messages Chief Executive Officer > 9M 2020 Results Chief Financial Officer > Sector Results > Appendix © 2019 Leonardo - Società per azioni 2
Slide 3: Key messages
3Q/9M2020 Results Presentation Key messages Well positioned, resilient business reacting effectively to changing market dynamics • Successfully and effectively responding to short term challenges with business performing well in the current macro environment • Very good performance in military / gov
Slide 4: Demonstrating resilience in extreme market conditions
3Q/9M2020 Results Presentation Demonstrating resilience in extreme market conditions ORDERS € 8.5 bn • Inevitable civil slowdown offset by continued military / governmental 13% 36% COMMERCIALLY performance 51% STRONG • Strong support from domestic customers (i.e Helicopters up ca. 41% YoY) • Resilie
Slide 5: Strong confidence in core business fundamentals and clear path for the future
3Q/9M2020 Results Presentation Strong confidence in core business fundamentals and clear path for the future Our business mix is a real strength BACKLOG € 35 bn 29% 35% › well diversified across businesses and markets STRONG BACKLOG 36% › with very good visibility of 2.5 years HELICOPTERS AERONAUTIC
Slide 6: Agenda
Agenda > Key messages Chief Executive Officer > 9M 2020 Results Chief Financial Officer > Sector Results > Appendix © 2019 Leonardo - Società per azioni 6
Slide 7: 9M 2020 highlights
3Q/9M2020 Results Presentation 9M 2020 highlights Resilient top line performance with EBITA steadily recovering QoQ. FOCF reflecting usual seasonality and some pressure from COVID-19 • Commercially strong performance through 9M2020 despite COVID-19, domestic order intake balancing lower exports • To
Slide 8: Order Intake
3Q/9M2020 Results Presentation Order Intake Commercially strong, reflecting continued strength of domestic military / governmental business € mln ∆ % YoY 9M2019A 8,579 Higher domestic military / governmental orders (IMOS UK, AW169 and NEES HELICOPTERS 3,154 +41.2% for Italy and TH-73A in US) Lower o
Slide 9: Revenues
3Q/9M2020 Results Presentation Revenues Solid performance across the Group, EFA Kuwait ramping up and Leonardo DRS continuing to grow € mln ∆ % YoY 9M2019A 9,134 Lower civil deliveries and lower volumes on some programmes due to COVID- HELICOPTERS 2,642 -3.4% 19, partially offset by CS&T and NH90 Qa
Slide 10: EBITA and Profitability
3Q/9M2020 Results Presentation EBITA and Profitability Improving operationally quarter by quarter, despite negative contribution from JVs and COVID-19 € mln (RoS) RoS ∆ % YoY 9M2019A 686 7.5% Driven by slowdown in Revenues and lower efficiencies due to COVID-19 partially HELICOPTERS 219 8.3% -18.9%
Slide 11: From EBITA to Net Result
3Q/9M2020 Results Presentation From EBITA to Net Result Net Result affected by EBITA performance and higher financial expenses associated with FX hedging 9M 2019A 9M 2020A -27.6% -39.0% -70.5% YoY YoY YoY 686 -7 -11 -20 648 -162 497 -60 -26 -93 98 465 -21 -21 395 -157 € mln € mln -50 -53 2 137 EBITA
Slide 12: Free Operating Cash Flow
3Q/9M2020 Results Presentation Free Operating Cash Flow Usual seasonality amplified by higher working capital as expected 9M 2020A Cash flows Cash flows from generated from ordinary investing operating activities Dividends received activities FOCF • FOCF at € -2.6 bn reflecting › Usual seasonality ›
Slide 13: Strong liquidity position at ca. € 3.6 bn
3Q/9M2020 Results Presentation Strong liquidity position at ca. € 3.6 bn Leonardo can leverage multiple sources of liquidity to meet financing needs, even in stress case scenarios • 30 September cash balance of ca. € 0.4 bn • Available Credit lines worth € 3.1 bn (confirmed and unconfirmed) • Bank B
Slide 14: Balanced debt maturity profile
3Q/9M2020 Results Presentation Balanced debt maturity profile No refinancing needs until 2022 € mln Bond Dollar Bond Euro EIB Term Loan DEBT MATURITY * CDP Average life: ≈ 5.0 years* CREDIT RATING As of today Before last review Date of review Moody’s Ba1 / Stable Outlook Ba1 / Positive Outlook Octob
Slide 15: 2020 Guidance
3Q/9M2020 Results Presentation 2020 Guidance FY2020 GUIDANCE PROVIDED AT 1H RESULTS PROGRESS TOWARDS FY2020 GUIDANCE** FY2020 • Progressing well on Orders anchored on ongoing commercial Guidance campaigns • Revenues supported by delivery of Backlog and advancement New Orders (€ bn) 12.5 – 13.5 on mi
Slide 16: Strong business fundamentals to leverage on in the medium-long term
3Q/9M2020 Results Presentation Strong business fundamentals to leverage on in the medium- long term • Strong backlog of € 35 bn • Sound business mix • Growing military / governmental and security markets • Strong relationships with domestic customers • Anchored in key international programmes • Inno
Slide 17: Q&A
Q&A © 2019 Leonardo - Società per azioni 17
Slide 18: Sector Results
SECTOR RESULTS © 2019 Leonardo - Società per azioni 18
Slide 19: Helicopters
3Q/9M2020 Results Presentation Helicopters DELIVERIES BY PROGRAMME 3Q 2019 3Q 2020 % Change 9M2019 9M2020 % Change FY 2019 € mln Orders 527 628 +19.2% 2,234 3,154 +41.2% 4,641 9M2020 = 55 new units AW101 Revenues 841 949 +12.8% 2,736 2,642 -3.4 % 4,025 NH90 3 AW109 / AW119 5 11 AW189 /149 EBITA 70 8
Slide 20: Defence Electronics & Security
3Q/9M2020 Results Presentation Defence Electronics & Security ELECTRONICS – EU 3Q 2019 3Q 2020 % Change 9M2019 9M2020 % Change FY 2019 € mln Orders 652 826 +26.7% 2,660 2,246 -15.6% 4,444 Revenues 867 919 +6.0% 2,738 2,731 -0.3% 4,289 EBITA 67 134 +100.0% 239 216 -9.6% 427 RoS +7.7% +14.6% +6.9 p.p.
Slide 21: Aeronautics
3Q/9M2020 Results Presentation Aeronautics AIRCRAFT 3Q 2019 3Q 2020 % Change 9M2019 9M2020 % Change FY 2019 € mln Orders 534 103 -80.7% 1,521 772 -49.2% 1,904 Revenues 641 630 -1.7% 1,502 1,704 +13.4% 2,329 EBITA 58 82 +41.4% 188 204 +8.5% 320 RoS +9.0% +13.0% +4.0 p.p. +12.5% +12.0% -0.5 p.p. +13.7
Slide 22: Space
3Q/9M2020 Results Presentation Space 3Q 2019 3Q 2020 % Change 9M2019 9M2020 % Change FY 2019 € mln EBITA 10 9 -10.0% 23 -1 -104.3% 39 © 2020 Leonardo - Società per azioni 22
Slide 23: Appendix
APPENDIX © 2019 Leonardo - Società per azioni 23
Slide 24: 3Q/9M 2020 Results
3Q/9M2020 Results Presentation 3Q/9M 2020 Results Group Performance 3Q 2019 3Q 2020 % Change 9M2019 9M2020 % Change FY 2019 € mln New Orders 2,434 2,406 -1.2% 8,579 8,510 -0.8% 14,105 Backlog 35,672 34,980 -1.9% 36,513 Revenues 3,172 3,147 -0.8% 9,134 9,025 -1.2% 13,784 EBITA 199 205 +3.0% 686 497 -
Slide 25: Covenant FY2019
3Q/9M2020 Results Presentation Covenant FY2019 FY2019A FY2019A Post IFRS 16 Post IFRS 16 EBITDA* € 1,743 mln Group Net Debt € 2,847 mln Net Interest - € 182 mln Leasing (IFRS 16) - € 451 mln Financial Debt to MBDA - € 651 mln Group Net Debt for Covenant € 1,745 mln EBITDA € 1,743 mln EBITDA / Net In
Slide 26: Safe Harbor Statement
3Q/9M2020 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-loo
Slide 27: 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 © 2019 Leonardo - Società per azioni 27