Leonardo Spa · MIL:LDO
Leonardo Spa — Leonardo Spa Ord — FY2024 Earnings Presentation
37 slides from Leonardo Spa's earnings presentation, Feb 20, 2025
Slide 1: FY 2024 Preliminary Results Presentation
FY 2024 Preliminary Results Presentation Rome, 20 February 2025
Slide 2: Agenda
Agenda • Executing the Industrial Plan Roberto Cingolani, Chief Executive Officer and General Manager • 4Q/FY 2024 Preliminary Results Alessandra Genco, Chief Financial Officer • Q&A • Appendix 2 © 2024 Leonardo - Società per azioni FY 2024 Preliminary Results
Slide 3: Disclaimer
Disclaimer • It should be noted that the approval of the draft statutory financial statements and the consolidated financial statements of Leonardo as of 31 December 2024 is scheduled for 11 March 2024. • Therefore, the data reported in this document have not completed the audit process (pursuant to
Slide 4: Good progress across all Group KPIs
FY 2024 Preliminary Results Good progress across all Group KPIs* FY24 FY24 FY23** Change Preliminary Guidance New Orders, €bn 18.7 20.9 12.2% ca. 19.5 Revenues, €bn 16.0 17.8 11.1% ca. 16.8 EBITA*, €M 1,351 1,525 12.9% ca. 1,462 ROS, % 8.5% 8.6% +0.1 p.p. FOCF, €M 652 826 +26.7% ca. 770 Net Debt, €b
Slide 5: Recap of the Industrial Plan - Vision
Recap of the Industrial Plan - Vision Leonardo is bridging the transition from defense to global security through continuous innovation, acting as a catalyst for the new European defense through a two-fold strategy Strengthen core Space Pave the way to the Cloud business broader security challenge ▪
Slide 6: Recap of the Industrial Plan – Implementation
IMPLEMENTING THE INDUSTRIAL PLAN NOT EXAUSTIVE Recap of the Industrial Plan – Implementation Completed Ongoing AW249 first firing campaign s Organic AW09 and AW609 certification growth R&D, Tech. innovation and M346 Block 20 capability evolution New Product Introduction New product releases for Cybe
Slide 7: Efficiency plan
Efficiency plan AS @ DEC PROCUREMENT 125 65% - Of which Divisions 74 39% 2024-2028 plan, €M - Of which LGS 51 27% CORPORATE 15 8% Target € ~1.8 bn TRAVELS 23 12% 2024 - 2028 BUSINESS DISPOSAL 28 15% savings across the INDUSTRIAL PLAN horizon TOTALE 191 100% 590 470 360 280 191 2024 Bdg: 150 €M 2024A
Slide 8: Executing the Industrial Plan: Organic growth
Executing the Industrial Plan: Organic growth Main KPIs …what we achieved in 2024 Orders € 6.6 bn (+11.8%) • Strong commercial momentum and delivery across all domains Electronics Revenues € 4.8 bn (+9.4%) • Portfolio rationalization Phase 1 completed (ca. 13%) (Europe)* EBITA € 714 mln (+21.4%) • A
Slide 9: FY2024 marks significant progresses towards sustainability targets
FY2024 marks significant progresses towards sustainability targets Progress • Upstream and downstream Scope 3 decarbonization targets validated by SBTi • Great achievements decoupled from business growth: Decarbonisation o -4.4% Scope 1 & 2 market-based emissions vs 2023 (-43% vs 2020) and environme
Slide 10: Agenda: Update of the Industrial Plan
Update of the Industrial Plan Strengthen the core – key initiatives • Organic Growth • Efficiency Boost Agenda March 11th, 2025 Pave the way to the future - new initiatives • New Space Division • New Line of Business for High Performance Computing • International JVs Targets & Capital Allocation 202
Slide 11: Agenda
Agenda • Executing the Industrial Plan Roberto Cingolani, Chief Executive Officer and General Manager • 4Q/FY 2024 Preliminary Results Alessandra Genco, Chief Financial Officer • Q&A • Appendix 11 © 2024 Leonardo - Società per azioni FY 2024 Preliminary Results
Slide 12: Good progress across all Group KPIs
FY 2024 Preliminary Results Good progress across all Group KPIs* FY24 FY24 FY23** Change Preliminary Guidance New Orders, €bn 18.7 20.9 12.2% ca. 19.5 Revenues, €bn 16.0 17.8 11.1% ca. 16.8 EBITA*, €M 1,326 1,452 9.5% ca. 1,440 ROS*, % 8.3% 8.2% -0.1 p.p. EBITA, €M 1,351 1,525 12.9% ca. 1,462 ROS, %
Slide 13: Helicopters: positive momentum with continued demand across the business
Helicopters: positive momentum with continued demand across the business €mln 2023 2024 Change Orders 5,513 5,867 +6.4% Revenues 4,725 5,249 +11.1% EBITA 422 465 +10.2% RoS (%) 8.9% 8.9% - Highlights Deliveries by programme • Backlog of € 15.1 bn AW189 /149 • Order growth driven by both military/gov
Slide 14: Defence Electronics: very good growth with increased profitability
Defence Electronics: very good growth with increased profitability Electronics Europe DRS €mln 2023* 2024** Change $mln 2023 2024 Change Orders 5,886 6,582 +11.8% 3,516 4,077 +16.0% Revenues 4,379 4,791 +9.4% 2,826 3,234 +14.4% EBITA *** 588 714 +21.4% 273 325 +19% RoS (%) 13.4% 14.9% +1.5 p.p. 9.7%
Slide 15: Cyber & Security Solutions: solid performance with increasing demand
Cyber & Security Solutions: solid performance with increasing demand €mln 2023 2024 Change Orders 692 833 +20.4% Revenues 594 648 +9.1% EBITA 36 49 +36.1% RoS (%) 6.1% 7.6% +1.5 p.p. Highlights • Order growth driven by domestic market (i.e Cyber & Security solutions for Governmental customers – JOC-
Slide 16: Aircraft: best in class profitability driven by fighter programmes
Aircraft: best in class profitability driven by fighter programmes €mln 2023 2024 Change Orders 2,395 2,892 +20.8% Revenues 2,938 2,861 -2.6% EBITA 419 417 -0.5% RoS (%) 14.3% 14.6% +0.3 p.p. Highlights • Order intake up 21% YoY, including Eurofighter Italy and Spain • Revenue in line with last year
Slide 17: Aerostructures & ATR: further progress despite external factors
Aerostructures & ATR: further progress despite external factors still affecting performance €mln 2023 2024 Change Orders 644 692 +7.5% Revenues 636 746 +17.3% EBITA* (151) (151) - RoS (%) (23.7%) (20.2%) +3.5 p.p. Highlights • Order intake up YoY reflecting continued air traffic recovery • Revenue g
Slide 18: Space: solid performance of Leonardo Space Division
Space: solid performance of Leonardo Space Division Space Division €mln (Telespazio + Space LoB) 2023 2024 Change Orders 763 957 +25.4% Revenues 701 906 +29.2% EBITA 66 80 +21.2% RoS 9.4% 8.8% -0.6 p.p. €mln Space Sector 2023* 2024*** Change Orders 763 957 +25.4% Revenues 701 906 +29.2% EBITA** 54 3
Slide 19: Significant progress in cash generation, in line with targets
Significant progress in cash generation, in line with targets Free Operating Cash Flow Main drivers € mln • FOCF slightly above Guidance, driven by o Solid revenue and EBITA growth in Defence and Security o Acceleration of saving plan 770 826 635 o Good cash-ins across the core business o Tighter co
Slide 20: Reduced gross and net debt by ca.40%
Reduced gross and net debt by ca.40% Net debt(1) Gross debt(1)(2)(3) Cost of Funding €Bn €Bn 3.0 2024 target -40% €2.0Bn 1.8 -40% 3.0 ca. 3% 1.8 2022 2024 2022 2024 • Strong operating cash flow leading to deleveraging, both in terms of gross and net debt (ca. -40%) • The disciplined financial strate
Slide 21: How strategic JVs are consolidated at EBITA level: new approach
How strategic JVs are consolidated at EBITA level: new approach • Starting from FY24, Leonardo has revisited the composition of EBITA. This will exclude extraordinary and non-recurring costs of strategic JVs, that are consolidated at equity to align the reporting of strategic JVs with fully consolid
Slide 22: Closing remarks
Closing remarks • Solid Financial performance across all KPIs o Good commercial momentum o Top line benefitting from easing supply chain pressures o Stronger performance in Defence Security and accelerated efficiency plan offsetting external challenges in Aerostructure and Space TelCo o Solid cash g
Slide 23: Agenda
Agenda • Executing the Industrial Plan Roberto Cingolani, Chief Executive Officer and General Manager • 4Q/FY 2024 Preliminary Results Alessandra Genco, Chief Financial Officer • Q&A • Appendix 23 © 2024 Leonardo - Società per azioni FY 2024 Preliminary Results
Slide 24: Agenda
Agenda • Executing the Industrial Plan Roberto Cingolani, Chief Executive Officer and General Manager • 4Q/FY 2024 Preliminary Results Alessandra Genco, Chief Financial Officer • Q&A • Appendix 24 © 2024 Leonardo - Società per azioni FY 2024 Preliminary Results
Slide 25: Revenue and Backlog diversification
Revenue and Backlog diversification Revenues and backlog by business Revenues and backlog by geography REVENUES REVENUES 29% 25% Elettronica per la Difesa 20% 33% 14% Italia Elicotteri 9% 22% UK Velivoli USA 18% 15% Aerostrutture 40% 12% Resto dell'Europa Space 34% 21% 43% 4% 2% Resto del Mondo 3% C
Slide 26: How strategic JVs are consolidated at EBITA level: new approach
How strategic JVs are consolidated at EBITA level: new approach What is changing? 2023 • Revising EBITA key performance indicator EBITA (as previously defined) 1,326 EBITA 1,351 Including costs for restructuring, non 25 RoS (%) 8,5% • This will exclude extraordinary and non- recurring and PPA of str
Slide 27: Helicopters
Helicopters 2019-2024 Results 4Q24 Results Orders (€ mln) Revenues (€ mln) EBITA (€ mln) and Profitability 4Q2023 4Q2024 % Change 6,060 5.867 5.249 10.7% 8,9% € mln 5,513 4,725 9.1% 8.9% 9.8% 465 4,641 4,157 4,547 9.6% Orders 1,336 1,062 -20.5% 4,494 4,025 431 4,370 3,972 415 422 Revenues 1,523 1,62
Slide 28: Electronics
Electronics 2019-2024 Results 4Q24 Results Orders Revenues EBITA and Profitability*** 6.582 5,886 4.791 ELECTRONICS - EU 5,628 4,712 14,9% 5,392 4,519 4,379 4,289 4Q2023 4Q2024 % Change 4,444 4,710 4,147 13,4% 714 € mln 11.7% 4.077 3.234 10.7% Orders 1,468 1,717 +17% 3,516 10.0% 588 3,054 2,729 2,75
Slide 29: Cyber & Security Solutions
Cyber & Security Solutions 2023-2024 Results Orders (€ mln) Revenues (€ mln) EBITA (€ mln) and Profitability 833 648 692 7.6% 6,1% 49 36 594 2023 2024 2023 2024 2023 2024 4Q24 Results 4Q 2023 4Q 2024 % Change € mln Orders 207 247 +19.3% Revenues 191 201 +5.2% EBITA 18 27 +50% RoS 9.4% 13.4% +4.0 p.p
Slide 30: Aircraft
Aircraft 2019-2024 Results 4Q24 Results Orders (€ mln) Revenues (€ mln) EBITA (€ mln) and Profitability 4Q2023 4Q2024 % Change € mln 3,268 3,085 2.892 2,938 2.861 Orders 571 1,664 +191.4% 2,800 13.3% 14,6% 2,668 2,634 13.6% 14.3% 2,395 2,329 Revenues 1000 951 -4.9% 13.7% 13.5% 434 421 417 419 1,904
Slide 31: Aerostructures and ATR
Aerostructures and ATR 2019-2024 Results 4Q24 Results Aerostructures Orders (€ mln) Revenues (€ mln) EBITA (€ mln) and Profitability € mln 4Q2023 4Q2024 % Change 948 1,125 Orders 116 121 +4.3% 692 53 12 17 Revenues 174 238 +36.8% 644 819 581 746 EBITA (36) (39) -8.3% 636 -69 -6 420 -11 -24 RoS (20.7
Slide 32: Space
Space 2023-2024 Results Orders (€ mln) Revenues (€ mln) EBITA (€ mln) and Profitability Space Sector Space Division 957 906 8.8% 9.4% 763 701 80 66 54 7.7% 31 3.4% 2023 2024 2023 2024 2023 2024 4Q24 Results – Space Division (Telespazio + Space LoB) 4Q24 Results – Space Sector 4Q 2023 4Q 2024 % Chang
Slide 33: Solid Group liquidity ensures adequate financial flexibility
Solid Group liquidity ensures adequate financial flexibility As at 31 December 2024 Leonardo had sources of liquidity available for a total of about € 6.9bn to meet the financing needs of the Group’s, broken down as follows: • Cash in-hands equal to € 2.5bn • ESG Revolving Credit Facility (RCF) equa
Slide 34: Debt maturity profile
Debt maturity profile TL DRS RADA Dollar Bond Euro in € mil EIB Term Loan CDP Debt maturity [Average life: ≈ 2,2 years (1) ] CREDIT RATING As of today Before last review Date of review S&P BBB- / Positive Outlook BBB- / Stable Outlook August 2024 Moody’s Baa3 / Stable Outlook Ba1 / Positive Outlook
Slide 35: More than 60% of Leonardo funding sources are ESG linked
More than 60% of Leonardo funding sources are “ESG linked" Financing sources KPIs selected fully aligned with ESG strategy and Long-Term Incentive Plan ESG linked financial ~€4,2bn(1) transactions 64% € 1.8 bn ESG linked Revolving Credit ESG Reduction of CO2 emissions Facility (RCF) linked € 600 mln
Slide 36: Safe Harbor Statement
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-looking statements are based on Co
Slide 37: Contacts
CONTACTS Valeria Ricciotti Head of Investor Relations and Credit Rating Agencies +39 06 32473.697 valeria.ricciotti@leonardo.com Investor Relations and Credit Rating Agencies +39 06 32473.512 ir@leonardo.com leonardo.com 37 © 2024 Leonardo - Società per azioni