Rome 10 March 2022 18:53 Inside Information
Proposed dividend at € 0.14 per share
- Strong Defence-Governmental businesses accounting for 88% of Group Revenues
- Backlog of € 35.5 billion
- Book to Bill at 1x
- RoS at 7.9% (+0.9 p.p.)
- Group Net Debt of € 3.1 billion (-6%)
- CO2 emissions reduced by 23%
- Increased the hiring of young people and women with degrees in STEM disciplines
- 50% of our financial sources now ESG linked, with objectives fully aligned with our strategy and Long-Term Incentive Plan
- Aerostructures restructuring and relaunch plan presented in November
FY 2022 Guidance
Based on the current assessment of the effects deriving from the geopolitical and global health situation on the supply chain and the global economy and assuming no additional major deterioration
- Orders ca. € 15 billion
- Revenues € 14.5 – 15 billion
- EBITA € 1,180 – 1,220 million
- FOCF ca. € 500 million
- Group Net Debt ca. € 3.1 billion
Strong fundamentals at the basis of the medium / long-term objectives
Based on the current assessment of the effects deriving from the geopolitical and global health situation on the supply chain and the global economy and assuming no additional major deterioration
- Back to our growth path
- Mid-single digit New Orders and Revenues CAGR
- High-single digit EBITA CAGR
- Confirming ca. € 3 billion cash generation over 2021-2025,
- Group cash conversion rate >70% in 2024-2025
Leonardo's Board of Directors, convened today under the Chairmanship of Luciano Carta, examined and unanimously approved the draft of Group consolidated and Leonardo S.p.A. financial statements at 31 December 2021.
Alessandro Profumo, Leonardo CEO, stated “In these times of much increased geo-political uncertainties, we are monitoring closely the situation and we are aligned to government policies across our geographies. We remain focussed on meeting the needs of our customers and we are well positioned given our strong business fundamentals. 2021 was an important year. We delivered FOCF above Guidance, doubling the expectations. We are back to our growth path and above pre-covid levels, excluding Aerostructures for which a restructuring and relaunch plan is running. Our Defence and Governmental businesses remain strong and account for 88% of 2021 Revenues, and we are seeing signs of recovery in our civil aeronautics business. We are fully committed to ESG: we have reduced CO2 emissions by 23% and increased the percentage of women hired with STEM profiles and of young people under 30, 50% of our financial sources are ESG linked, with objectives fully aligned with our strategy and Long-Term Incentive Plan. Based on the results delivered, we have also proposed the resumption of our dividend. Our strengths and core fundamentals are the basis of our confidence in the medium-long term: we are confirming our target of generating ca. cumulative €3bn of cash flow over 2021-2025, with a significant step up in 2022 and a cash conversion rate of ca. 70% in 2022, if we exclude Aerostructures, and >70% at Group level, including Aerostructures, in 2024-2025. The results achieved and the targets we have set show once again our focus on creating sustainable value for all our stakeholders”.
During the 2021 financial year Leonardo continued and strengthened the path to growing its business and increasing profitability as envisaged in the financial statements at 31 December 2020, showing a gradual and continuous improvement in the Group's industrial performance.
Despite the continuation of the effects of the pandemic and of the consequent government rules restricting movements in 2021 too, Leonardo confirmed resilience with a growing commercial, industrial and financial performance, even compared to the pre-pandemic period, thanks to the strength and diversification of its portfolio of products and solutions and its widespread presence all over the world, excluding the civil aviation component of the Aeronautics sector, which was still affected by the continuation of the abovementioned effects.
The volume of new orders continued to stand at excellent levels, thus confirming the good competitive positioning of the Group's products and solutions, with Revenues rising in all the main Business areas and profitability increasing in all the Sectors, with the exception of the civil aviation component, which continued to be affected by low volumes of demand from the main market operators.
Cash flow recorded a significant improvement, reaching double the amount forecast at the beginning of the year, with a consequent benefit in terms of lower Group Net Debt compared to expectations.
2021 Key Performance Indicator
extraordinary transactions
(*) EBITDA this is EBITA before amortisation, depreciation (net of those relating to goodwill or classified among “non-recurring costs”) and adjustments impairment.
(**) EBITA is obtained by eliminating from EBIT the following items: any impairment in goodwill; amortisation and impairment, if any, of the portion of the purchase price allocated to intangible assets as part of business combinations, restructuring costs that are a part of defined and significant plans; other exceptional costs or income, i.e. connected to particularly significant events that are not related to the ordinary performance of the business.
(***) EBIT is obtained by adding to earnings before financial income and expense and taxes and taxes the Group’s share of profit in the results of its strategic Joint Ventures (GIE-ATR, MBDA, Thales Alenia Space and Telespazio).