3Q/9M2020 Results Presentation

Alessandro Profumo

Chief Executive Officer

Alessandra Genco

Chief Financial Officer

Rome, 5 November 2020

Agenda

>

Key messages

Chief Executive Officer

>

9M 2020 Results

Chief Financial Officer

  • Sector Results
  • Appendix

2

3Q/9M2020 Results Presentation

Key messages

Well positioned, resilient business reacting effectively to changing market dynamics

  • Successfully and effectively responding to short term challenges with business performing well in the current macro environment
  • Very good performance in military / governmental business and Customer Support & Training, offsetting softness on the civil side
  • Proven ability to capture opportunities in growing military / governmental markets and international programmes
  • Significant backlog providing resiliency and visibility
  • Productivity is continuing to increase and order intake is showing positive signs
  • Strong confidence in our core business fundamentals and well positioned for the medium-long term

© 2020 Leonardo - Società per azioni

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3Q/9M2020 Results Presentation

Demonstrating resilience in extreme market conditions

ORDERS € 8.5 bn

COMMERCIALLY

STRONG

  • Inevitable civil slowdown offset by continued military / governmental performance
  • Strong support from domestic customers (i.e Helicopters up ca. 41% YoY)
  • Resilient customer support and training

13% 36%

51%

HELICOPTERS

AERONAUTICS

DEFENCE ELECTRONICS & SECURITY

SOLID RESULTS

HIGHER

PRODUCTIVITY

REVENUES € 9 bn

EBITA € 497 mln

RoS +5.5%

28%

25%

15%

35%

47%

50%

HELICOPTERS

AERONAUTICS

HELICOPTERS

AERONAUTICS

DEFENCE ELECTRONICS & SECURITY

DEFENCE ELECTRONICS & SECURITY

  • Industrial efficiency back to normal in September
  • Productive hours recovering shortfall

Productive hours vs budget

EBITA +3% YoY IMPROVEMENT IN 3Q2020

-75% YoY

-23% YoY

+3% YoY

-75% YoY

-40% YoY

-28% YoY

205

497

€mln

251

€mln

292

41

41

1Q2020

2Q2020

3Q2020

1Q2020

1H2020

9M2020

COST CUTTING MEASURES BEARING FRUIT

BUDGET 2020

FY2020

9M2020

BASELINE

TARGET

ACHIEVEMENT

LABOR COST

€ 2.9 bn

ca.

CONTROLLABLE COSTS

€ 1.4 bn

€ 450 mln

-15%

-11%-7%

NET INVESTMENTS**

€ 700-750 mln

40-50%

ahead of expectations

1Q2020 2Q2020 3Q2020

** Benefitting from Government Grants

INCREASINGLY

AGILE

STRONG LIQUIDITY AND FINANCIAL FLEXIBILITY

  • System promptly reacting / operational machine responding to new environment
  • Rightsized our businesses for demand (i.e. Helicopters in the UK and ATR)
  • Re-orientedcommercial effort leveraging key pockets of demand

FOCF heavily weighted towards Q4

No need to raise equity

No need for additional liquidity

No refinancing needs until 2022

© 2020 Leonardo - Società per azioni

successfully navigating and responding to 2020 short term challenges

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Leonardo S.p.A. published this content on 05 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 November 2020 18:31:01 UTC