► Leonardo: 2019 results delivering or exceeding Guidance for the second year in a row

Rome, 12 March 2020 – Leonardo’s Board of Directors, convened today under the Chairmanship of Gianni De Gennaro, examined and unanimously approved the draft of Group consolidated and Leonardo S.p.A. financial statements at 31 December 2019.

Alessandro Profumo, Leonardo CEO commented, “Over the past 2 years we have been delivering or exceeding our promises and we are very well positioned to succeed in the long-term. We have a clear view on our strategic path: strengthening and transforming our business to growth and accelerate the innovation improving business competitiveness in the long-term. We are fully committed to deliver our Plan to create value for all our stakeholders”.

The 2019 year saw the full implementation of the growth project envisaged in the Industrial Plan, with results in line with or above the preset targets.

The significant increase in Revenues in all business sectors, driven by the success achieved in terms of sales, was accompanied by an increase in operating profit capable of also offsetting the lower contribution given by certain strategic joint ventures. The sustainability of this growth over the long term and the creation of value for the Group are guaranteed by the investments made in people, skills and innovative technologies.

The net result for the period, showing a considerable increase compared to the previous year, benefitted from sharp growth in the net result before extraordinary transactions, lower restructuring costs and a reduction in the amortisation and depreciation of assets arising from the Purchase Price Allocation, as well as from the effects arising from the transaction with Hitachi, classified under the result from “Discontinued operations”.

In 2019 the Group Net Debt included the effect of the adoption of IFRS 16 on lease agreements for € 451 mln (€ 458 mln as at the date of initially application), the payment of dividends (€ 81 mln), the acquisition of Vitrociset (€ 110 mln, including the acquiree’s net financial position of € 63 mln) and other minor acquisitions. Without these effects, the Group’s Net Debt would have remained substantially unchanged compared to 2018.

2019 results highlights are as follows:

  • New Orders, amounted to EUR 14,105 million. The orders gained in 2018 included the acquisition of the NH90 Qatar order for about € 3 bn in the segment of Helicopters; while excluding this event, the performance improved in all business sectors.
  • Order Backlog, amounted to EUR 36,513 million, ensures a coverage in terms of equivalent production equal to more than 2.5 years
  • Revenues, amounted to EUR 13,784 million, showed a significant increase (12.6%) compared to 2018 (€ 12.2 bn), which was mainly attributable to the Defence Electronics & Security and Aeronautics Divisions.
  • EBITA, amounted to EUR 1,251 million showed significant growth compared to 2018 (€ 1,120 mln), thus confirming a sound profitability (ROS of 9.1%, in line with the previous year) as a result of an improvement recorded in the Defence Electronics & Security, Helicopters and Aeronautics Divisions, which more than offset a decline in the result posted by the GIE-ATR Consortium and in the manufacturing segment in the Space sector. The operating profit also reflected the investments made in strengthening the central units in support of the Group’s path to growth.
  • EBIT, amounted to EUR 1,153 million; showed, compared to 2018 (€ 715 mln), an increase equal to € 438 mln (+61.3%), which was due to an improvement in EBITA, as well as to a reduction in restructuring costs and the completion of a large part of the amortisation of intangible assets recognised upon the acquisition of Leonardo DRS (Purchase Price Allocation).

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