Slide 1: 3Q/9M 2022 Results Presentation
3Q/9M 2022 Results Presentation Rome 3 November 2022
Slide 2: Agenda
Agenda • Key messages Alessandro Profumo, Chief Executive Officer • Financial review Alessandra Genco, Chief Financial Officer • Q&A • Sector results • Appendix 2 © 2022 Leonardo - Società per azioni
Slide 3: 9M2022 results on track
9M2022 results on track • Solid 9M performance • Strong and robust defence/governmental business • Gradual recovery in civil Aerostructures • Order intake of € 11.7 bn, up 26.8%* • € 1.43** bn contract for 32 AW149 in Poland signed in July • Revenues at € 9.9 bn, up 4.0%* and book to bill at 1.2x •
Slide 4: Positioned for the future
Positioned for the future Important strategic moves HENSOLDT • 25.1% stake for € 617* mln • Leading provider of sensor solutions for defence and security applications • Reinforcing Leonardo’s positioning in Defence Electronics segment • Continued commercial growth on a stand-alone basis • More focus
Slide 5: Delivering on our serious commitment to ESG
Delivering on our serious commitment to ESG By committing to the Science-Based Targets Initiative Our roadmap for the SBT Reduce impact of own operations Scope 1+ 2 emissions target: -40% by 2030* ▪ Target already set and aligned with SBTI Engage the supply chain Scope 3 emissions: preliminary activ
Slide 6: Closing remarks
Closing remarks Fully on track in the first 9 months, raising Guidance for new order intake at >€16bn and slightly better FOCF and Net Debt • Solid performance across the Group in the first 9 months • Very strong commercial momentum, with impressive order intake in Q3 and confidence in Q4 order pipe
Slide 7: Agenda
Agenda • Key messages Alessandro Profumo, Chief Executive Officer • Financial review Alessandra Genco, Chief Financial Officer • Q&A • Sector results • Appendix 7 © 2022 Leonardo - Società per azioni
Slide 8: 9M 2022 Highlights
9M 2022 Highlights • Strong commercial activity, with book to bill at 1.2x • Backlog at € 37.4 bn, supports growing long-term revenue visibility • Order intake of € 11.7 bn, up 26.8%*, significantly higher YoY, even excluding Polish helicopter order • Continued strong demand for our products support
Slide 9: Order Intake
Order Intake Very strong commercial performance and momentum, with book to bill at 1.2 € mln ∆ % YoY 9M2021A 9,240*** Key orders: 32 AW149 Poland, 4 AW609 for a commercial flight operator; 20 AW119Kx and 10 AW139 HELICOPTERS 4,623 93.4% for Italy; 6 AW189 China; 5 AW119Kx Israel. >40 AW139 Commercia
Slide 10: Revenues
Revenues Continued solid performance delivering on strong backlog € mln ∆ % YoY 9M2021A 9,531*** HELICOPTERS 3,153 16.0% Ramp-up mainly in NH90 Qatar, AW169 and CS&T ELECTRONICS EUROPE 3,149 4.2% +7.4% like-for-like** mainly driven by Defence Systems LEONARDO DRS 1,759 4.3%*** Some softness due to s
Slide 11: EBITA and Profitability
EBITA and Profitability Improving Profitability € mln RoS ∆ % YoY 9M2021A 603*** 6.3%*** 9M2021 Restated 568*** 6.0%*** HELICOPTERS 234 7.4% 4.9% Higher volumes with higher pass-through contribution ELECTRONICS EUROPE 306 9.7% 8.9% Increase across all business areas, mainly Defence Systems Confirmed
Slide 12: From EBITA to Net Result
From EBITA to Net Result Stronger bottom line driven by EBITA increase 9M 2021A 9M 2022A +8.2% +24.0% +69.0% +189.1% YoY YoY YoY YoY 619 275 662 -96 35 552 -10 -45 572 445 -132 -5 -17 -69 € mln € mln -101 387 -16 -84 229 EBITA Non recurring Restructuring PPA EBIT Net financial Income taxes Net Resul
Slide 13: Expected debt maturity profile after active liability management
Expected debt maturity profile after active liability management • Taking advantage of current market opportunities • Redeeming 300mln of US Dollar bond expiring 2039 and 2040 • Paying down the most expensive instruments in our portfolio FY2022 expected debt maturity profile € mln New DRS Term Loan
Slide 14: Higher than expected proceeds from disposals allowing Net Debt reduction in 2022
Higher than expected proceeds from disposals allowing Net Debt reduction in 2022 Group Net Debt ~€0.6bn ~€(0.46bn) €3.1bn ~(€0.5bn) ~€0.07bn ~€3.0bn ~€0.1bn ~€0.08bn 2022E Dividend Hensoldt GES and AAC Other debt Make-whole FY2021A disposal FY2022E Positive paid Acquisition items(1) costs FOCF US bo
Slide 15: Guidance upgraded for 2022 new orders; slightly better FOCF and Net Debt
Guidance upgraded for 2022 new orders; slightly better FOCF and Net Debt Guidance confirmed on Revenues and EBITA FY2022 FY2022 Updated FY2022 FY2021A Guidance, new Guidance(1) Perimeter (4) Guidance(1) Guidance upgrade for New Orders (€ bn) 14.3 ca. 15.0 ca. 14.9 new orders driven by ca. >16.0 Pola
Slide 16: Agenda
Agenda • Key messages Alessandro Profumo, Chief Executive Officer • Financial review Alessandra Genco, Chief Financial Officer • Q&A • Sector results • Appendix 16 © 2022 Leonardo - Società per azioni
Slide 17: Live Q&A initial remarks
Live Q&A initial remarks Fully on track in the first 9 months, raising Guidance for New order intake at >€16bn and slightly better FOCF and Net Debt • Solid performance across the Group in the first 9 months • Very strong commercial momentum, with impressive order intake in Q3 and confidence in Q4 o
Slide 18: Q&A
Q&A 18 © 2022 Leonardo - Società per azioni
Slide 19: Agenda
Agenda • Key messages Alessandro Profumo, Chief Executive Officer • Financial review Alessandra Genco, Chief Financial Officer • Q&A • Sector results • Appendix 19 © 2022 Leonardo - Società per azioni
Slide 20: Helicopters
Helicopters Solid business with civil recovering 2018-2021 Results 3Q/9M22 Results 3Q 2021 3Q 2022 % Change € mln Orders (€ mln) Revenues (€ mln) EBITA (€ mln) and Profitability 6.208 3.810 4.025 3.972 4.157 Orders 382 2,440 538.7% 10,7% 9,8% Revenues 829 1,043 25.8% 4.641 9,6% EBITA 75 83 10.7% 4.4
Slide 21: Helicopters
Helicopters DELIVERIES BY PROGRAMME REVENUES BY CUSTOMER/SEGMENT 9M2022 = 87 new units 9M2022 AW189 /149 9 27% 36 AW109 / AW119 36% AW169 10 64% 73% 22 10 AW139 NH90 Civil Defence/Governmental CS&T O&E AW FAMILY 9M2021 = 73 new units AW189 /149 9M2021 11 AW169 14 27% 38% AW109 / AW119 18 62% 22 73%
Slide 22: Defence Electronics & Security
Defence Electronics & Security Growing Revenues and Profitability 2018-2021 Results 2022 Outlook (**) Orders Revenues EBITA and Profitability • Growing volumes supported by solid backlog 5.392 4.519 4.710 4.011 4.289 4.147 of existing programmes, further strengthened 4.409 4.444 10,0% 10,7% in 2021
Slide 23: Aircraft
Aircraft Solid performance 2018-2021 Results 3Q/9M22 Results Orders (€mln) Revenues (€mln) EBITA (€mln) and Profitability 2.668 3.268 € mln 3Q 2021 3Q 2022 % Change 2.634 13,2% 2.031 2.329 1.700 1.904 13,7% 13,5% 432 Orders 408 147 -64.0% 1.932 13,8% Revenues 887 698 -21.3% 355 266 320 EBITA 91 90 -
Slide 24: Aerostructures and ATR
Aerostructures and ATR Gradual recovery 2018-2021 Results 3Q/9M22 Results Aerostructures € mln 3Q 2021 3Q 2022 % Change Orders (€mln) Revenues (€mln) EBITA (€mln) and Profitability Orders 166 184 10.8% 925 948 1.125 Revenues 100 117 17.0% 1.020 97 EBITA -43 -46 -7.0% 819 53 RoS -43.0% -39.3% -0.7 p.
Slide 25: Space
Space Recovery of Manufacturing and confirmed solid performance of Satellite services 2018-2021 Results 3Q/9M22 Results EBITA (€mln) 3Q 2021 3Q 2022 % Change 58 62 € mln EBITA 14 7 -50% 39 23 9M 2021 9M 2022 % Change 2018 2019 2020 2021 € mln EBITA 37 10 -73.0% 2022 Outlook(*) • Growing volumes driv
Slide 26: Agenda
Agenda • Key messages Alessandro Profumo, Chief Executive Officer • Financial review Alessandra Genco, Chief Financial Officer • Q&A • Sector results • Appendix 26 © 2022 Leonardo - Società per azioni
Slide 27: 3Q/9M 2022 Results
3Q/9M 2022 Results Group Performance 3Q 2021 3Q 2022 % Change 9M2021 9M2022 % Change FY 2021 € mln New Orders 2,584 4,409 +70.6% 9,266 11,719 +26.5% 14.307 Backlog 35,235 37,353 +6.0% 35.534 Revenues 3.219 3,341 +3.8% 9,564 9,917 +3.7% 14.135 EBITA 207 201 -2.9% 607 619 +2.0% 1.123 EBITA Restated* 1
Slide 28: Backlog and revenues by Geography
Backlog and revenues by Geography 9M22 REVENUES € 9.9 bn REST OF WORLD 22% UK 15% UK 11% REST OF WORLD 21% ITALY 28% REST OF REST OF EUROPE 16% EUROPE 24% ITALY 23% NORTH AMERICA 15% 9M22 BACKLOG € 37.4 bn NORTH AMERICA 25% 28 © 2022 Leonardo - Società per azioni 3Q/9M22 Results
Slide 29: Solid Group liquidity ensures adequate financial flexibility
Solid Group liquidity ensures adequate financial flexibility • Available credit lines • New ESG Credit Line signed in October 2021 equal to € 2.4 bn • Existing credit lines unconfirmed equal to € 1.0 bn together with cash in-hand ensure a Group liquidity of approx. € 4.2 bn €4.2bn €1.0bn €2.4bn €0.7
Slide 30: Balanced debt maturity profile
Balanced debt maturity profile Redeeming 300mln of US Dollar bond expiring 2039 and 2040 Bond Dollar Bond Euro € mln EIB Term Loan CDP 500 600 600 DEBT MATURITY 500 500 Average life: ≈ 4,3 years 100 127 186 19 38 50 63 63 63 44 25 13 2022 2023 2024 2025 2026 2027 2028-2030 2031 2032 2033 …. 2039 204
Slide 31: Covenants FY2021
Covenants FY2021 FY2021A FY2021A Post IFRS 16 Post IFRS 16 EBITDA* € 1,538 mln Group Net Debt € 3,122 mln Net Interest € 138 mln Leasing (IFRS 16) - € 568 mln Financial Debt to MBDA - € 664 mln Group Net Debt for Covenant € 1,890 mln EBITDA* € 1,538 mln EBITDA / Net Interest 11.1 Group Net Debt / EB
Slide 32: Impact of changes in perimeter
Impact of changes in perimeter * Adjusted perimeter to exclude the contribution of Global Enterprise Solutions in August and September 2021 (closing of disposal on 1/08/2022). Avg. exchange rate August-September 2021€/$ @ 1.19671 **Restatement to include covid costs in 2021 as they were accounted be
Slide 33: 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 34: Contacts
CONTACTS Valeria Ricciotti Head of Investor Relations and Credit Rating Agencies +39 06 32473.697 valeria.ricciotti@leonardo.com Leonardo Investor Relations and Credit Rating Agencies +39 06 32473.512 ir@leonardo.com leonardo.com 34 © 2022 Leonardo - Società per azioni