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Industrial Plan - Business overview
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Industrial Plan - Architecture
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Industrial Plan - Group’s Target
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Industrial Plan - Relevant new initiatives

"The Industrial Plan has defined a strategy for unlocking the business growth potential of Leonardo delivering stronger top-line growth, double digit profitability by 2026 and doubled FOCF by the end of the Plan. This will be achieved through, a massive digitalisation and rationalisation of products and services, Group-wide efficiencies and cost reduction initiativest – targeting € 1.8 billion gross savings over the Plan time span – and inorganic growth. The world geopolitical scenario calls for a new Global Security paradigm, where we aim to play a proactive role in the evolution of the European Defence sector”.

Roberto Cingolani

 

Industrial Plan Presentation (PDF, 2975 KB)
Press Release (PDF, 487 KB)
Webcast

Industrial Plan 2024- 2028

Strategic pilllars

Strengthening the core business

Strengthening the core business

  • Rationalising the business and product portfolio of the core business 
  • Improving competitiveness through digitalisation and innovation while reducing costs
  • Focused R&D expenditure on innovative technologies, including Artificial Intelligence, Cloud and Supercomputing technologies
  • Forging international alliances and strategic partnerships
Leonardo of the future: addressing opportunities in the broader security challenge

Leonardo of the future: addressing opportunities in the broader security challenge

  • Build a company working in a cross-divisional multi-domain environment powered by digitalisation and Artificial Intelligence 
  • Enhance Cyber capabilities on Defence, Space, and National Strategic Organisation 
  • Create a Space Division to consolidate all related activities and evolve the Space Alliance to focus on high-value segments

Three Growth Drivers

Innovation and organic growth through digitalisation and innovation

Innovation and organic growth through digitalisation and innovation

Strengthening of the core business of Defence based on a massive use of digitalisation and a focus of R&D activities on areas and sectors with high value-added (Digital continuum, Cloud, Computing power, Broadband resilient communication, Security by design, Artificial Intelligence).

Progressive and extensive digitalisation (use of satellite communications as well as drones) has radically changed schemes and perspectives in international scenarios, introducing a new concept of global security that goes beyond the traditional one of Defence. 

It is a change - not only in the approach - that involves important efforts to adapt technology. The Digital Continuum will enable Multi-Domain technologies to orchestrate military activities across all operating domains (Land, Air, Maritime and Space).

Efficiency boost through product and portfolio rationalisation and group wide savings

Efficiency boost through product and portfolio rationalisation and group wide savings

Efficiency through a rationalisation of the product portfolio, the optimisation of engineering & manufacturing processes, thanks to an increase in digitalisation, and the undertaking of a major optimisation of group-wide procurement and corporate costs reduction. 

The results of these actions are expected to lead to a total cumulative € 1.8 billion of Group gross savings over the plan horizon, starting with € 150 million in 2024 rising to € 590 million per annum in 2028. Expected growth in Plan KPIs includes the effect of the abovementioned savings.

International alliances and inorganic growth

International alliances and inorganic growth

Inorganic growth, not included in the current Plan, will be a further line of expansion of the alliance policy and possible targeted bolt-on M&A transactions in specific areas with high margins.

Defence is no longer regarding individual national borders, but has become an international and 'Global Security' scenario, and the strategy of alliances is one of the possible answers. The Group will play a proactive role in the evolution of the European Defence industry.