Leonardo S p A : Results at 31 March 2021 (Presentazione)

1Q2021 Results Presentation

Alessandro Profumo	Chief Executive Officer
Alessandra Genco	Chief Financial Officer

Rome, 6 May 2021

Agenda

>	Key messages	Chief Executive Officer
>	1Q 2021 Results	Chief Financial Officer

• Sector Results
• Appendix

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1Q2021 Results Presentation

Solid start to the year: progressing well with our plans

First step to achieve our FY2021 Guidance

BACKLOG* € 36.4 bn

ORDERS € 3.4 bn

LEVERAGING OUR

• Benefitting from the

30%

14%

17%

24%

26%

BACKLOG

resilience of

19%

12%

59%

IN A COMPLEX GLOBAL

military/governmental and

HELICOPTERS

AERONAUTICS

CONTEXT

demand in export markets

NORTH AMERICA

REST OF EUROPE

REST OF WORLD

UK

DEFENCE ELECTRONICS & SECURITY

ITALY

*not including Soft Backlog

SOLID RESULTS

CONFIRMING OUR

GROWTH PATH

WELL POSITIONED IN THE MEDIUM-LONG TERM

©

REVENUES € 2.8

bn

EBITA € 95 mln

ROS 3.4%

+8% YOY

21%

27%

•

Higher profitability across

•

130% YOY

52%

the Group besides

Aerostructures

HELICOPTERS

AERONAUTICS

DEFENCE ELECTRONICS & SECURITY

• FOCF at - € 1.4 bn reflecting usual seasonality
• Strong liquidity and financial flexibility
• Although the first quarter is the smallest contributor to YE results, it represented a solid start
• • Military and defence markets remain robust
  • Cautious on the speed of recovery on the civil side
  • Continuing to make good strategic progress in important areas
  • Progress towards ESG goals: ESG targets proposed as part of both short term and long term incentive plan

1Q2021 Results Presentation

Strategic progress update

Taking actions on portfolio

AEROSTRUCTURES		•	Proactive review of options to accelerate transformation and address structural issues
REVIEW		•	Including rationalising industrial sites; investing to increase efficiency/flexibility; headcount reduction

HENSOLDT

ACQUISITION

EVALUATING POTENTIAL

DISPOSALS

(e.g. Automation)

DRS IPO POSTPONEMENT

• Further cooperation in complementary businesses across geographies product and end markets
• Establishes a strategic long term presence in the fast growing German defence market
• Critical product portfolio "reshaping", focusing capital on lines of business where we have strongest capabilities
• Will contribute to maintaining a solid capital structure
• Strong investor interest during roadshow but adverse market conditions did not allow adequate valuation of DRS
• Fully committed to transaction when market conditions are more favourable so as to highlight the embedded value of
  DRS

© 2020 Leonardo - Società per azioni

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1Q2021 Results Presentation

Strategic progress update

Leonardo and HENSOLDT Strategic partnership

Key transaction terms

• Leonardo to acquire a 25.1% stake in German HENSOLDT from KKR
• Total purchase consideration of €606 million
• Establishment of a new strategic partnership to optimise ongoing cooperation and maximise future opportunities
• Closing of transaction expected for 2nd half of 2021, subject to customary closing conditions
• Solid capital structure will be maintained also through disposals and DRS listing

Strategic partnership shared objectives

1. Enhancing our combined access to the German, Italian and UK domestic markets
2. Leveraging respective commercial networks to accelerate growth in international markets
3. Leveraging complementary portfolios to offer comprehensive products and solutions to customers
4. Build foundations for common basic future technologies

© 2020 Leonardo - Società per azioni

Access to a wider international customer base

Countries with Leonardo local presence

HENSOLDT presence through sales offices / production facilities

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