Slide 1: Italian Equity Digital Summit
Italian Equity Digital Summit Alessandro Profumo Chief Executive Officer Alessandra Genco Chief Financial Officer 19 May 2020
Slide 2: Agenda
Agenda > Key messages Chief Executive Officer > 1Q 2020 Results Chief Financial Officer > Appendix © 2019 Leonardo - Società per azioni 2
Slide 3: Key messages
1Q 2020 Results Presentation Key messages Actively managing current challenges • Proud of how our organisation and our people have responded • Moved quickly to keep our people safe and ensure business continuity • Relatively resilient military and governmental; civil demand slowdown • COVID-19 impac
Slide 4: What we are seeing
1Q 2020 Results Presentation What we are seeing Current dynamics MARKET DYNAMICS OUR EXPERIENCE • Travel restrictions affecting • No major disruption to campaigns to date – but potential to have commercial campaign finalisation an effect across the Group SALES / • Slowdown in civil demand – civil ca
Slide 5: Our actions and responses
1Q 2020 Results Presentation Our actions and responses Clear recovery plan and mitigation actions PROTECTING OUR PEOPLE PROTECTING OUR BUSINESS – ACTIVELY USING ALL AVAILABLE LEVERS 1. ACTIVELY WORKING WITH DOMESTIC CUSTOMERS • Leveraging institutional support • Leveraging technologies in emerging o
Slide 6: Agenda
Agenda > Key messages Chief Executive Officer > 1Q 2020 Results Chief Financial Officer > Appendix © 2019 Leonardo - Società per azioni 6
Slide 7: 1Q 2020 highlights
1Q 2020 Results Presentation 1Q 2020 highlights Solid Order growth with COVID-19 beginning to impact performance • Good start to the year both commercially and operationally • Commercial strategy achieving targets in line with our expectations • Strong Q1 Orders at € 3.4 bn up 36% YoY with Book to B
Slide 8: Order Intake
1Q 2020 Results Presentation Order Intake Continuous positive commercial momentum Driven by IMOS Solid Driven by Aicraft (F- programme for UK contribution from 35, C-27J and EFA) MoD and AW119 Electronics and and Aerostructures contract for US Navy Leonardo DRS (ATR) +116.0% -2.3% +41.9% +35.9% ORDE
Slide 9: Revenues
1Q 2020 Results Presentation Revenues 5% down YoY driven by Civil Helicopter deliveries, due to COVID-19 EFA Kuwait production Leonardo DRS COVID-19 affecting ramp-up offsetting offsetting slowdown of deliveries in civil (i.e B787 and ATR activities due to AW139) slowdown due to COVID-19 effects COV
Slide 10: EBITA and Profitability
1Q 2020 Results Presentation EBITA and Profitability Performance affected by COVID-19 leading to lower revenues and lower productivity across all businesses Drop in Revenues Lower productivity Lower productivity and delivery and lower due to COVID-19 postponement (ATR) due to COVID-19 productivity d
Slide 11: From EBITA to Net Result
1Q 2020 Results Presentation From EBITA to Net Result Net Result affected by EBITA performance and higher financial expenses FX related 1Q 2019A 1Q 2020A -74.8% -80.8% -176.6% 163 -7 156 YoY YoY YoY -51 Forex fair value and hedging of € -1 mln -28 41 -4 -7 30 -50 77 € mln € mln -59 -31 -8 EBITA PPA
Slide 12: Strong liquidity position
1Q 2020 Results Presentation Strong liquidity position • On May 6, 2020 Leonardo signed € 2.0 bn credit facilities with a pool of leading international bank › The new facilities have a maturity up to 24 months and have no financial covenants • The credit lines will support the Group’s financial flex
Slide 13: Balanced debt maturity profile
1Q 2020 Results Presentation Balanced debt maturity profile In € mil Bond Dollar Bond Euro EIB Term Loan CDP DEBT MATURITY Average life: ≈ 4,5 years CREDIT RATING As of today Before last review Date of review Moody’s Ba1 / Stable Outlook Ba1 / Positive Outlook October 2018* S&P BB+ / Stable Outlook
Slide 14: COVID-19 Impact on Divisions in Q1
1Q 2020 Results Presentation What we are seeing COVID-19 Impact on Divisions in Q1 • Measures implemented to contain virus spread, including travel bans and lockdowns, impacted Q1 › Inability to finalise deliveries › Programme execution slowdown › Lower productivity HELICOPTERS ELECTRONICS AERONAUTI
Slide 15: What we are seeing
1Q 2020 Results Presentation What we are seeing • Leonardo strategically relevant for our domestic markets • Q1 reflecting initial impact of COVID-19 - Q2 expected to be affected the most • FY2020 COVID-19 impact will be significant but not yet reliably quantifiable: 2020 Guidance suspended • Mitiga
Slide 16: Q&A
Q&A © 2019 Leonardo - Società per azioni 16
Slide 17: Sector Results
SECTOR RESULTS © 2019 Leonardo - Società per azioni 17
Slide 18: Helicopters
1Q 2020 Results Presentation Helicopters DELIVERIES BY PROGRAMME 1Q 2019 1Q 2020 % Change FY 2019 € mln 1Q2020 = 11 new units Orders 688 1,486 +116.0% 4,641 Revenues 813 704 -13.4% 4,025 AW169 1 EBITA 56 18 -67.9% 431 AW189 /149 1 AW139 /W3 RoS 6.9% 2.6% -4.3 p.p. 10.7% 1 AW109 / AW119 / 6 SW4 / AW0
Slide 19: Defence Electronics & Security
1Q 2020 Results Presentation Defence Electronics & Security ELECTRONICS - EU 1Q 2019 1Q 2020 % Change FY 2019 € mln Orders 823 862 +4.7% 4,444 Revenues 874 846 -3.2% 4,289 EBITA 76 46 -39.5% 427 RoS 8.7% 5.4% -3.3 p.p. 10.0% LEONARDO DRS 1Q 2019 1Q 2020 % Change FY 2019 € mln Orders 687 615 -10.5% 2
Slide 20: Aeronautics Space
1Q 2020 Results Presentation Aeronautics 1Q 2019 1Q 2020 % Change FY 2019 € mln Orders 454 644 +41.9% 2,788 Revenues 644 644 unchanged 3,390 EBITA 37 -17 -145.9% 362 RoS 5.7% -2.6% -8.3 p.p. 10.7% Space 1Q 2019 1Q 2020 % Change FY 2019 € mln EBITA 1 -2 -300% 39 © 2019 Leonardo - Società per azioni 2
Slide 21: Appendix
APPENDIX © 2019 Leonardo - Società per azioni 21
Slide 22: 1Q2020 Results Group Performance
1Q 2020 Results Presentation 1Q2020 Results Group Performance 1Q 2019 1Q 2020 % Change FY 2019 € mln New Orders 2,518 3,421 +35.9% 14,105 Backlog 36,575 37,000 +1.2% 36,513 Revenues 2,725 2,591 -4.9% 13,784 EBITA 163 41 -74.8% 1,251 RoS 6.0% 1.6% -4.4 p.p. 9.1% EBIT 156 30 -80.8% 1,153 EBIT Margin 5
Slide 23: Covenant FY2019
1Q 2020 Results Presentation Covenant FY2019 FY2019A FY2019A Post IFRS 16 Post IFRS 16 EBITDA(1) € 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 Inter
Slide 24: Safe Harbor Statement
1Q 2020 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-looki
Slide 25: 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 25