- Leonardo delivered strong results in the first 9 months of 2016 despite challenging market conditions, with record new orders of €15.5 billion driven by the €7.95 billion Eurofighter contract for Kuwait.
- Profitability improved with net income more than doubling to €343 million, supported by lower financial expenses.
- The company expects continued good performance in the fourth quarter and remains on track to meet full-year guidance.
""Over the past three years, we have transformed Eni into a leaner and more resilient company. We have built a high margin portfolio consisting of a large number of mature projects, which will secure our production growth over the medium and long term, and a huge amount of reserves, which will give us flexibility and value."
Conference Call Fiscal Year 2016 - preliminary figuresDürr
This presentation has been prepared independently by Dürr AG (“Dürr”). The presentation contains statements which address such key issues as Dürr’s strategy, future financial results, market positions and product development. Such statements should be carefully considered, and it should be understood that many factors might cause forecast and actual results to differ from these statements. These factors include, but are not limited to, price fluctuations, currency fluctuations, developments in raw material and personnel costs, physical and environmental risks, legal and legislative issues, fiscal, and other regulatory measures. Stated competitive positions are based on management estimates supported by information provided by specialized external agencies.
Border security: a physical and digital challengeLeonardo
At SMi's Border Security confernce, Giorgio Mosca, Strategy and Technology Director of Leonardo's Security & Information Systems Division presented the company's integrated and intelligent platforms enhancing border security approach
Telespazio Geoinformation platform for Defense and Intelligence: Maritime Dom...Leonardo
During the Defence Geospatial Intelligence 2017 Telespazio and e-Geos presented the Geoinformation platform for Defense and Intelligence success story of Maritime Domain
""Over the past three years, we have transformed Eni into a leaner and more resilient company. We have built a high margin portfolio consisting of a large number of mature projects, which will secure our production growth over the medium and long term, and a huge amount of reserves, which will give us flexibility and value."
Conference Call Fiscal Year 2016 - preliminary figuresDürr
This presentation has been prepared independently by Dürr AG (“Dürr”). The presentation contains statements which address such key issues as Dürr’s strategy, future financial results, market positions and product development. Such statements should be carefully considered, and it should be understood that many factors might cause forecast and actual results to differ from these statements. These factors include, but are not limited to, price fluctuations, currency fluctuations, developments in raw material and personnel costs, physical and environmental risks, legal and legislative issues, fiscal, and other regulatory measures. Stated competitive positions are based on management estimates supported by information provided by specialized external agencies.
Border security: a physical and digital challengeLeonardo
At SMi's Border Security confernce, Giorgio Mosca, Strategy and Technology Director of Leonardo's Security & Information Systems Division presented the company's integrated and intelligent platforms enhancing border security approach
Telespazio Geoinformation platform for Defense and Intelligence: Maritime Dom...Leonardo
During the Defence Geospatial Intelligence 2017 Telespazio and e-Geos presented the Geoinformation platform for Defense and Intelligence success story of Maritime Domain
Cyber trust: cornerstone of a digital worldLeonardo
During Cybertech 2016 Andrea Biraghi, Security & Information Systems Division Managing Director, took part at the panel "Leader's Vision in the Cyber Era" presenting Leonardo's view on the cyber business
MSPO - Leonardo Aircraft Division: M-346, the dual role conceptLeonardo
At MSPO 2016 Leonardo Aircraft Division hosted a presentation on the M-346FT (Fighter Trainer), the latest variant of the platform, ideal to train next generation of fighter pilots
At ITASEC17, the first italian conference on Cyber Security, Giorgio Mosca, Strategy and Technology Director of Leonardo's Security & Information Systems Division presented the company's approach to the cyber business
Helitech - Leonardo Helicopters Division: Through-Life approach to the customerLeonardo
During Helitech 2016 Leonardo Helicopters Division presented the through-life approach to the customer: an overview of how Leonardo Helicopters is helping Customers master their helicopter operations
FIA16: Leonardo Aircraft Division: M-346 programme - the dual role conceptLeonardo
During 2016 edition of the Farnborough Airshow, Leonardo Aircraft Division presented the M-346FT (Fighter Trainer), the latest variant of the platform, ideal to train next generation of fighter pilots
Helitech - Leonardo Helicopters Division: Technology for SafetyLeonardo
During Helitech 2016 Leonardo Helicopters Division held a presentation called "Technology for Safety" focused on:
- Ergonomics & Human Machine Interface;
- Dry Run Transmission Capabilities;
- Design to Performance;
- OGP standards compliance across different roles.
From Finmeccanica to Leonardo: a new brand that defines the change of the company and its transformation from a financial holding company to an operational, integrated and innovative industrial entity.
Chosen for its strong evocative significance, the new name is inspired by Leonardo da Vinci, a universally recognised symbol of creativity and innovation.
Leonardo is a global high-tech company and one of the key players in the Aerospace, Defence and Security sectors. Headquartered in Italy, the company employs more than 47,000 employees worldwide.
SESAR Project Awards - Best in class Nomination for Pj14.01.04Leonardo
The team led by Finmeccanica has been award for the valiable technical specifications representing a core element of the SWIM Concept.
SESAR SWIM definition (adopted also by ICAO): SWIM consists of standards, infrastructure and governance enabling the management of ATM information and its exchange between qualified parties via interoperable services.
SWIM is about to provide the right information to right stakeolder at the right time.
Green Day 2016 - Earth Observation satellites support climate change monitoringLeonardo
During the 2016 Green Day conference organized by AGOL and LUISS University, Massimo Comparini, CEO of e-Geos introduced us on how satellite technology can support climate change monitoring
On own digital platforms, Telespazio manages more than 100 television, radio and multimedia signals which are received at its teleports from contribution satellites and terrestrial links or directly originated from local playout systems.
The twin-turbofan M-346 is the most advanced lead-in fighter trainer flying today. With its fully digital flight controls and avionics, together with carefree handling and high AOA maneuvering, the M-346 is fully representative of new generation fighters.
SlideShare now has a player specifically designed for infographics. Upload your infographics now and see them take off! Need advice on creating infographics? This presentation includes tips for producing stand-out infographics. Read more about the new SlideShare infographics player here: http://wp.me/p24NNG-2ay
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Results driven by growth in power generation and Acciona Windpower in international markets. Earnings before tax (EBT) increases 69.5% to €248 million. Ebitda increases by 14.4% to €883 million. Consolidated revenues grow 4.6% to €4,946 million.
1st Leonardo Helicopters SAR Workshop - AW139 SAR Overview and UpdatesLeonardo
During our first Leonardo Helicopters SAR Workshop we gave a brief overview and update on the AW139, with a special focus on new capabilities and mission kits dedicated to SAR operations.
European Rotors - Certification by SimulationLeonardo
During European Rotors we presented our view and experience on certification by simulation with a look at the RoCS (Rotorcraft Certification by Simulation) project
European Rotors - Mission Management System’s Capabilities for Law Enforcemen...Leonardo
Leonardo attended at European Rotors the Police Aviation Conference illustrating its Mission Management System’s capabilities for Law Enforcement Operators
European Rotors - Rotorcraft and VTOL SymposiumLeonardo
Leonardo attended at European Rotors the Rotorcraft and VTOL Symposium 2021 sharing its vision for the present, the impending challenges, and the outlooks for the future
European Rotors - Contributing to the Swiss Innovation Day Leonardo
Leonardo attended European Rotors presenting its contribution to the Swiss Innovation Day illustrating a possible roadmap from the first Swiss helicopter to the first Swiss hybrid helicopter
1. 3Q/9M 2016 Results Presentation
Rome 4 November 2016
Gian Piero Cutillo Chief Financial Officer
2. 2
Key messages
Strong delivery of Industrial Plan in a challenging market environment
Continued benefits from a stronger, better balanced portfolio
Aeronautics and Electronics, Defence & Security continue to outperform vs expectation
Offsetting weaker orders and revenues in Helicopters YTD; stronger performance expected
in Q4
New Orders at record € 15.5bln (+99% YoY), with Book to Bill at 1.9x
Efficiency gains supporting continued improvements in profitability
Net result more than doubled at € 343mln, supported by lower financial charges
Strong performance expected in Q4 with high quality orders in pipeline
On track to deliver FY guidance
3. 3
7,791
1,538
4,239
9,790 (63) 15,504
9M2015 Helicopters Electronics, Defence
and Security Systems
Aeronautics Eliminations & Other 9M2016
New Orders
Very good performance even excluding EFA-Kuwait contract
€ Mln
9M
2016
+677.6%+11.6%- 46.6% +99.0% % Ch. vs. 9M2015
New orders benefitting from the €7.95bln Eurofighter Kuwait contract
Also excluding the EFA-Kuwait, Aeronautics (M346, ATR and B787) and Electronics, Defence
and Security Systems (UK MoD FSOM) increase YoY and offset decline in Helicopters
Net of ca.
€200mln of
negative
exchange rate
4. 4
9,001
2,565
3,567
2,060 (158) 8,034
9M2015 Helicopters Electronics, Defence
and Security Systems
Aeronautics Eliminations & Other 9M2016
Revenues
Lower YoY due to change in perimeter and shortfall in Helicopters
€ Mln
9M
2016
- 3.7%- 5.9%- 20.1% - 10.7% % Ch. vs. 9M2015
Stable YoY Revenues excluding
change in perimeter for ca. €200mln, mainly affecting Aeronautics (B787 pass-through) and DRS
FX translation effect (GBP)
lower revenues in Helicopters
Net of ca.
€200mln of
negative
exchange rate
5. 5
1,174
(Margin 13.0%)
351
(Margin 13.7%)
405
(Margin 11.4%)
402
(Margin 19.5%)
43 (8)
1,193
(Margin 14.8%)
9M2015 Helicopters Electronics,
Defence and
Security Systems
Aeronautics Space Other activities 9M2016
Profitability improvement
EBITDA improving trend continues, margin 180bp higher YoY
€ Mln
9M
2016
Ch. vs. 9M2015+3.1 p.p.+1.3 p.p.- 0.3 p.p. + 1.8 p.p.
6. 6
745
(RoS 8.3%)
285
(RoS 11.1%)
269
(RoS 7.5%)
198
(RoS 9.6%)
43 (49) 746
(RoS 9.3%)
9M2015 Helicopters Electronics,
Defence and
Security Systems
Aeronautics Space Corporate &
Others
9M2016
Profitability improvement
EBITA in line despite lower revenues, ROS 100bp higher
€ Mln
9M
2016
Ch. vs. 9M2015+ 2.0 p.p.+0.8 p.p.- 0.8 p.p. + 1.0 p.p.
EBITA in line with last year despite lower volumes and negative impact of exchange rate (€/GBP)
Continuous improvement in Electronics, Defence & Security and Aeronautics fully offsetting
persisting softness in Helicopters
Net of ca.
€15mln of
negative
exchange rate
7. 7
746 (43)
(72)
631 (180)
(108)
343
EBITA Restr./Non-rec. PPA EBIT Net financial
expenses
Income Taxes Net Result
before ext. tr.
745 (73)
(73)
599 (347)
(102)
150
EBITA Restr./Non-rec. PPA EBIT Net financial
expenses
Income Taxes Net Result
before ext. tr.
Net Result Improvement
More than doubled on lower below the line and net financial expenses
9M2015 9M2016
€ Mln€ Mln
745
599
150
746
631
343
“Below the line” volatility fully under control
Material reduction of net financial expenses
Lower financial costs from Bond buy back and renegotiation of the RCF (July 2015)
Positive effect of fair value
+0.1% +5.3% +128.7%
8. 8
FOCF and Net Debt
Disciplined financial strategy aimed at cash flow improvement and Net Debt
reduction
FOCF improvement
Further boosted in Q3 by timing of initial payments under Eurofighter Kuwait contract
FY2016E positive net effect of the first downpayment from Kuwait confirmed (ca.€200mln)
Net debt as at 30 September lower than €4bn, net of ca. €180mln of negative exchange rate;
FY2016 guidance confirmed, even including the negative GBP exchange rate
On track to deliver FY guidance
On 28th October Fitch Revised Leonardo’s Outlook to Positive from Stable, affirming the BB+
Credit Rating
9. 9
A step forward in the execution of the Industrial Plan
Leonardo increases its stake in Avio
Avio is leader in Space transportation technology, with system integration
capabilities in propulsion for space launchers and complete launchers (Vega)
In line with the Industrial Plan we will strengthen our positioning in the Space
by increasing our stake in Avio from ca. 14% to ca. 28%
Further developing Avio business
consolidating our role in the launchers segment, also for small satellites
Total price to be paid by Leonardo ca. € 43 mln
Transaction already approved by the BoDs; completion of the Business
Combination and the subsequent listing of Avio expected by 1Q2017
10. 10
FY2016 Guidance
(*) Assuming €/$ exchange rate at 1.15 and €/£ at 0.75
FY2015A FY2016E*
New orders € bn 12.4 ca. 20
Revenues € bn 13.0 12.2-12.7
EBITA €mln 1,208 1,220-1,270
FOCF €mln 307 500-600
Group Net
Debt
€ bn 3.3 ca. 2.8
All metrics potentially impacted by changes
in exchange rate, mainly GBP/€
New Orders: challenging, due to the
prolonged crisis of civil helicopters markets
Revenues: expected to be modestly below the
lowest end, driven by lower Helicopters
EBITA: expected at the top end, confirming
continuous improvement in operating
performances and increasing benefits from
efficiency improvements
FOCF: confirmed within the range, benefitting
from the net effect of the downpayment of the
Typhoon Kuwait contract received in July
Net Debt: ca. €2.8bn, target achieved one
year ahead of original Plan
11. 11
Conclusion
Strong delivery of industrial plan in a challenging market environment
On track to deliver what we promised 3 years ago
Stronger portfolio with a better balance between sectors
13. 13
HELICOPTERS
Persisting challenging market conditions in civil, coinciding with the introduction of some new products
9M2015 order intake benefitted from UK AW101 IOS contract
For the FY2016, we continue to expect solid performance with profitability steadily at double digit
3Q 9M FY
€ Mln
2016 2015
%
Change
2016 2015
%
Change
2015
Orders 580 624 (7.1%) 1,538 2,881 (46.6%) 3,910
Revenues 857 1,098 (21.9%) 2,565 3,212 (20.1%) 4,479
EBITA 83 121 (31.4%) 285 381 (25.2%) 558
ROS % 9.7% 11.0% (1.3) p.p. 11.1% 11.9% (0.8) p.p. 12.5%
14. 14
ELECTRONICS, DEFENCE & SECURITY SYSTEMS
(Now includes Defence Systems as a Division , DRS and MBDA)
Of which
DRS:
Avg. exchange rate €/$ @1.1157 in 9M 2016
Avg. exchange rate €/$ @1.1145 in 9M 2015
3Q 9M FY
€ Mln
2016 2015
%
Change
2016 2015
%
Change
2015
Orders 1.749 1.072 63,2% 4.239 3.800 11,6% 6.974
Revenues 1.130 1.235 (8,5%) 3.567 3.791 (5,9%) 5.656
EBITA 92 107 (14,0%) 269 254 5,9% 512
ROS % 8,1% 8,7% (0,6) p.p. 7,5% 6,7% 0,8 p.p. 9,1%
3Q 9M FY
$ Mln
2016 2015
%
Change
2016 2015
%
Change
2015
Orders 594 537 10.6% 1,484 1,539 (3.6%) 2,022
Revenues 399 443 (9.9%) 1,170 1,297 (9.8%) 1,805
EBITA 30 44 (31.8%) 63 93 (32.3%) 126
ROS % 7.5% 9.9% (2.4) p.p. 5.4% 7.2% (1.8) p.p. 7.0%
Order increase mainly due to UK MoD -
FSOM
Sharp improvement in profitability due to
benefits from Industrial Plan actions
DRS top line down due to change in
perimeter
Lower profitability in DRS due to change
in mix of activities
Profitability expected to further improve,
despite a more competitive environment
and the winding down of some profitable
programmes, supported by benefits
coming from industrial processes
improvements
For DRS, excluding the effect of the
change in perimeter (ca.€200mln YoY),
we continue to expect positive trend in
business growth, even in a more
competitive environment, and a further
increase in profitability
15. 15
AERONAUTICS
Very good order intake even excluding the Eurofighter Kuwait (€ 7,95mln)
Revenues impacted by change in perimeter (B787 pass-through activities)
Significant improvement in EBITA driven by Aerostructures
2016 profitability expected to further improve driven by additional efficiency-improvement and cost
reduction actions also offsetting the winding down of some high-margin programmes
3Q 9M FY
€ Mln
2016 2015
%
Change
2016 2015
%
Change
2015
Orders 305 568 (46.3%) 9,790 1,259 677.6% 1,741
Revenues 681 726 (6.2%) 2,060 2,140 (3.7%) 3,118
EBITA 83 77 7.8% 198 163 21.5% 312
ROS % 12.2% 10.6% 1.6 p.p. 9.6% 7.6% 2.0 p.p. 10.0%
16. 16
SPACE
Higher volumes and better profitability in Manufacturing; Services in line with 2015
EBITA and profitability expected to recover in 2016
3Q 9M FY
€ Mln
2016 2015
%
Change
2016 2015
%
Change
2015
EBITA 14 5 180.0% 43 27 59.3% 37
18. 18
GROUP PERFORMANCE
Free Operating Cash-Flow (FOCF): this is the sum of the cash flows generated by (used in) operating activities (which includes interests and income
taxes paid) and the cash flows generated by (used in) ordinary investment activity (property, plant and equipment and intangible assets) and dividends
received.
3Q 9M FY
€ Mln
2016 2015
%
Change
2016 2015
%
Change
2015
New Orders 2,637 2,252 17.1% 15,504 7,791 99.0% 12,371
Backlog 34,589 28,071 23.2% 28,793
Revenues 2,621 3,028 (13.4%) 8,034 9,001 (10.7%) 12,995
EBITDA 407 436 (6.7%) 1,193 1,174 1.6% 1,866
EBITDA Margin 15.5% 14.4% 1.1 p.p. 14.8% 13.0% 1.8 p.p. 14.4%
EBITA 274 295 (7.1%) 746 745 0.1% 1,208
ROS % 10.5% 9.7% 0.8 p.p. 9.3% 8.3% 1.0 p.p. 9.3%
EBIT 232 248 (6.5%) 631 599 5.3% 884
EBIT Margin 8.9% 8.2% 0.7 p.p. 7.9% 6.7% 1.2 p.p. 6.8%
Net result before extraordinary transactions 143 59 142.4% 343 150 128.7% 253
Group Net result 142 36 294.4% 352 122 188.5% 527
EPS (€ cents) 0.247 0.062 298.4% 0.612 0.211 190.0% 0.905
FOCF 405 (192) 310.9% (388) (935) 58.5% 307
Group Net Debt 3,890 5,323 (26.9%) 3,278
Headcount 46,316 53,183 (12.9%) 47,156
19. 19
Eurofighter Kuwait contract
Downpayment received in 3Q2016
Contract signed on April 5th 2016 for 28 Eurofighter in the most advanced configuration,
including new E-Scan radar
Leonardo as prime contractor will lead all activities on behalf of the Consortium. Our share
is ca. 60% of total value (€ 7,95mln), remaining 40% is pass-through
8-year contract (2016-2023). Production, delivery and acceptance will be in Italy (Aircraft
Division). Deliveries will start in 2019
The impact of the contract on the Group :
ORDERS: entire amount (€ 7,95mln) booked 2Q2016 in Aircraft Division
REVENUES: meaningless contribution in 2016, ramping up in 2017-2018, peak of ca.
€2bln p.y. in 2020-2021
EBITA: not expected to be dilutive on margins in 2017-2018, only marginally from
2019 onwards as Revenues peak up
FOCF: downpayment received in July with € 200mln net impact on FY2016E FOCF
and € 400mln in FY2017E. As typical for this kind of contracts, cash absorption
expected as the deliveries start, due to the build up of the Working Capital
20. 20
FINANCIAL POSITION
(as of end of September 2016)
(€mil)
Sterling Bond
Euro Bond
EIB
Dollar Bond
No refinancing needs before end 2017
Strong liquidity position
Bonds have neither financial covenants nor rating pricing grids
Average life approx. 7 years
Key
Messages
Maturity
Schedule
Early
Repayments
(€mil)
Bond Initial Amount Repaid Amount Repayment Date
Dollar 2019 $500 $66 2012
Euro 2017 € 600 € 79 July 2015
Euro 2021 € 950 € 211 July 2015
Euro 2022 € 600 € 44 July 2015
Sterling 2019 £400 £82 July 2015
Dollar 2039 $300 $25 November 2015
Dollar 2040 $500 $43 November 2015
46 46 46 46 46 46
521 500
739
556
500389
246
409
369
2016 2017 2018 2019 2020 2021 2022 2025 2039 2040
21. 21
Tenor July 2020 18 months
Margin 100 bps(1)
≈ 25 bps(2)
2.000
710
1.040
-
500
1.000
1.500
2.000
2.500
REVOLVING CREDIT
FACILITY
UNCONFIRMED
CREDIT LINES
CASH IN HAND
LIQUIDITY POSITION (as of end of September 2016)
Availability of
adequate
committed
liquidity lines
In order to cope with possible swings in financing needs, Leonardocan leverage:
– 30 September cash balance of approx. €1.0Billion
– Credit lines worth €2.7 Billion (confirmed and unconfirmed)
The Revolving Credit Facility was renegotiated on 6 July 2015 lowering the
margin from 180bps to 100bps. The renegotiated facility has an amount of
€2.0bn and will expire in July 2020
– Bank Bonding lines of approximately €3.8 Billion to support Leonardo’s commercial
activity
(1) Based on rating as of 30/09/2016
(2) Average. Expected to be renewed at maturity
(€mln)
As of 30
September 2016
Undrawn at 30
September 2016
Undrawn at 30
September 2016
22. 22
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 Company’s views and assumptions as of the date of
the statements and involve known and unknown risks and uncertainties that could cause actual results,
performance or events to differ materially from those expressed or implied in such statements. Given these
uncertainties, you should not rely on forward-looking statements.
The following factors could affect our forward-looking statements: the ability to obtain or the timing of obtaining
future government awards; the availability of government funding and customer requirements both domestically
and internationally; changes in government or customer priorities due to programme reviews or revisions to
strategic objectives (including changes in priorities to respond to terrorist threats or to improve homeland security);
difficulties in developing and producing operationally advanced technology systems; the competitive environment;
economic business and political conditions domestically and internationally; programme performance and the
timing of contract payments; the timing and customer acceptance of product deliveries and launches; our ability to
achieve or realise savings for our customers or ourselves through our global cost-cutting programme and other
financial management programmes; and the outcome of contingencies (including completion of any acquisitions
and divestitures, litigation and environmental remediation efforts).
These are only some of the numerous factors that may affect the forward-looking statements contained in this
document.
The Company undertakes no obligation to revise or update forward-looking statements as a result of new
information since these statements may no longer be accurate or timely.
23. 23
Contacts
Raffaella Luglini
Head of Investor Relations & SRI
+39 06 32473.066
raffaella.luglini@leonardocompany.com
We do business in a sustainable manner, with a continued commitment to
economic and social development and the protection of public health and
the environment.
ANNUAL REPORT 2015
PRESS RELEASE
VIDEO-WEBCAST
2015 Annual Results
Investor Relations & Sustainable Responsible Investors (SRI)
Valeria Ricciotti
Equity Analysts & Investors
+39 06 32473.697
valeria.ricciotti@leonardocompany.com
ir@finmeccanica.com www.leonardocompany.com/investors
Sustainability
Quick links
Alessio Crosa
Fixed Income Analysts & Investors and
relationship with Credit Rating Agencies
+39 06 32473.337
alessio.crosa@leonardocompany.com
Manuel Liotta
Group Sustainability & ESG
+39 06 32473.666
manuel.liotta@leonardocompany.com