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© Leonardo - Finmeccanica - Società per azioni
JOINT VENTURES AND SUBSIDIARIES
Revenues 2017
€ 3.3 bn
Helicopters Aircraft AerostructuresAirborne &
Space Systems
Security & Information
Systems
DefenceSystems
Leonardo DRS
Revenues 2017
€ 3.1 bnRevenues 2017
€ 5.5 bn
Land & NavalDefence
Electronics
Telespazio(67% Leonardo)
Thales Alenia Space(33% Leonardo)
AVIO(26% Leonardo)
MBDA(25% Leonardo)
ATR(50% Leonardo)
Elettronica(31% Leonardo)
DIVISIONS
Global player in High Tech Aerospace, Defense and
Security business
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© Leonardo - Finmeccanica - Società per azioni
Strategic overview - key messages
We are a global player in High Tech Aerospace & Defence business
Significant industrial presence worldwide
4 domestic markets
We intend to execute an Industrial Plan to go back to long-term sustainable growth
Attractive market improvement
Taking actions to leverage off a new commercial
strategy and a new customer centric approach
FY2017 results in line with revised Guidance
In 2017 we have reset expectations
We have taken actions to address non-structural issues in our world-class Helicopters business
2018 is a consolidation year
Laying the seeds for a new phase of sustainable growth
Entering a new phase of solid and sustainable growth in the long term
Top-line and profitability improvement
Increasing cash-flow generation from 2020
…with the key objective of creating value for all our stakeholders
Key dual-use technologies
3 core business
Strong portfolio
Selected investments for growth to enhance
further core products and technologies
Disciplined financial strategy
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DRS Revenue Growth Outpaces DoD Budget Growth in 2016-2022
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An Overview of Leonardo DRS
A leading technology innovator and supplier of integrated products, services and support to military forces, intelligence agencies and prime contractors worldwide
• A wholly owned subsidiary of Leonardo S.p.A.
• Headquartered in Arlington, Virginia
• $2B+ Revenue
• We are organized into eight customer-focused lines of business
– Airborne and Intelligence Systems
– Daylight Solutions
– Electro-Optical and Infrared Systems
– Global Communications and Security
– Land Electronics
– Land Systems
– Naval Electronics
– Naval Power Systems
LeonardoDRS.com
Twitter@drstechnologies
Linkedin.com/LeonardoDRS
U.S. Army28.3%
U.S. Navy and Marine Corps
21.1%U.S. Air Force9.8%
U.S. Agency/Other13.3%
U.S. Commercial9.9%
International17.6%
2015 – 2019
Business Mix By Customer
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Overview of Leonardo DRS 20185,000+ Employees19 States
Maryland (217)
Alabama (149)
California (251)
Connecticut (312)
Massachusetts (112)
New York (68)
Virginia (212)
Florida (1204)
Minnesota (20)
Missouri (743)
Montana (11)
Wisconsin (496)
North Carolina (115)
New Jersey (14)
Ohio (87)
Pennsylvania (636)
South Carolina (17)
Texas (431)
Illinois (7)
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DRS Evolution
PRIOR TO FINMECCANICA: GROWTH
BY ACQUISITIONS
INTEGRATION IN FINMECCANICA
DEVERSIFY AND ADAPT
GROWTH
…2008 2009 - 2012 2013
TODAYNew DRS
Management
DRS
Acquisition
$2+B publicly traded (NYSE)
mid-tier defense electronics
company
Grew through a decade-long
series of acquisitions
Won significant Army wartime
supplemental business
2008 - Finmeccanica acquires
DRS
Sequestration / Troopwidrawl
impacts army business
2012-2014 streamlined
organization to adapt to new
markets while increasing
deversification
2016-2018 – DRS experiences 3 years
of above market topline growth and
reorganizational efforts enhances
operating margins
2015-2016 – DRS reshapes the portfolio
disposing of non-core business,
generating ~$100M in proceeds
2017 – DRS acquires Daylight Solutions
with proceeds generated primarily from
dispositions
2015 - 2018+
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Revenues and
profitability almost flat
YoY
Upward trends in
some business
areas
Efficiency
improvement
Higher
contribution from
development
programmes
DRS benefiting from
positive market trend
Avg. exchange rate €/$ @1.2295 in 1Q2018
Avg. exchange rate €/$ @1.0647 in 1Q2017
Of which DRS:
2018 OUTLOOK1Q FY
€ mln
2017
Reported
2017
Restated2018
%
Change
2017
Reported
2017
Restated
Orders 1,039 1,039 965 (7.1%) 6,146 6,146
Revenues 1,146 1,156 1,149 (0.6%) 5,506 5,550
EBITA 84 88 73 (17.0%) 537 537
ROS % 7.3% 7.6% 6.4% (1.2 p.p.) 9.8% 9.7%
1Q FY
$ mln
2017
Reported
2017
Restated2018
%
Change
2017
Reported
2017
Restated
Orders 401 401 424 5.7% 2,016 2,016
Revenues 395 395 455 15.2% 1,914 1,947
EBITA 25 25 21 (16.0%) 143 146
ROS % 6.3% 6.3% 4.6% (1.7 p.p.) 7.5% 7.5%
Electronics, Defense & Security SystemsRemains strong
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9% revenue growth driven by positions secured in Army modernization efforts as well as continued enhancement
in market share in various rapidly growing markets.
Market Leading Army Positions to Include
Aircraft Survivability
Mission Command and Battle Management
Soldier and Targeting sensing systems
Naval Business also driving growth through electronic and combat systems upgrade positions secured on both
surface and submarine platforms
Positive Book to Bill ratio of 1.05 and franchise positions secured in 2017 solidifying business base, enabling
continued above market growth in 2018
EBITA YoY growth of 11.7% driven by revenue performance and improved operational efficiencies, enhancing
overall profit margins
Leonardo DRS – Where we Are Today
In USD
2017 2016
%
Change
Orders 2,015 1,923 4.8%
Revenues 1,914 1,753 9.2%
EBITA 143 128 11.7%
Full Year
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© Leonardo - Finmeccanica - Società per azioni
DRS provides leading sensor technology and
integrated solutions for Land, Sea, Air and Space
Systems, world class cyber hardened Network
computing for C4I and integrated situational
awareness as well as world-class integration of
complex technologies into legacy systems and
platforms for military and commercial customers
Long Range EO/IREO/IR surveillance sensors &
targeting sights for combat /
tactical wheeled vehicles
(domestic and international)
Precision Fires &
Dismounted TargetingDismounted / mounted location
& targeting systems for combat
precision fires & designation
Army Electronics & Sensors
Platform ComputingIntegrated computer & display
systems for enhanced SA on
the battlefield
Active Protection
System (APS)TROPHY™ The world’s
first and only fully
operational, combat-
proven APS
Bridging SystemsJoint Assault Bridge
(JAB) - uniquely
Combines capability,
reliability, and
affordability
2017 Revenue Growth +35%
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As a trusted provider of naval systems, we provide power
and control technology, delivering customer-focused
products and support solutions for the U.S. Navy and our
allies. In addition, we provide complex naval computing
infrastructure, network and data distribution and middleware
enterprise services, with an unmatched track record.
Naval Systems
Naval Computing
Infrastructure & NetworksReliable display & processing
modernization, C4I Build-To-
Print services, & middleware
enterprise solutions
Ship CommunicationsIntegrated systems that can
control and manage tactical,
administrative, voice and data
communications for new-built
platforms or legacy systems
Naval Radars & SensorsC-band radars and Infra-Red
Search & Track (IRST)
sensors for navigation
guidance, situational
awareness and automatic
threat detection
Power Conversion,
Control & DistributionPower storage, low &
medium voltage power
distribution and modular
power solutions for ship &
submarine platforms
Naval Nuclear
Instrumented Control
SystemsTrusted provider of critical
naval instrumentation and
controls for nuclear
submarines & aircraft carriers
2017 Revenue Growth +7%
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Airborne and Communications
Equipping our customers with world-class integrated
airborne, ground, and naval-based solutions.
Air Combat Maneuver
Instrumentation & EW
SimulationEquip the Combat Air Forces
with live-virtual-constructive
aircrew training devices
Electronic Warfare (EW)
Systems & TrainingState of the art EW for land,
naval & airborne platforms that
covers the entire RF spectrum
including jamming capabilities
Signal SolutionsProviding high-end SIGINT
Tuners, Receivers, Recorders
& Subsystems covering
the HF through Microwave
Spectrum
DRS delivers world-class, mission-critical
communications and security solutions
with unmatched reliability and support
anywhere in the world 24x7x365.
Network ServicesMonitoring & Control,
Broadband Internet
Access, Video
Conferencing, VoIP
Prepaid Calling
Platform, etc.
Satellite ServicesManaged Satellite
Operator (MSO) of
commercial and
military satellite
resources
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Current jet trainer was introduced in 1961. Average age in USAF inventory is more than 44 years old
Competition underway for new trainer aircraft. “T-X” program calls for 350 new aircraft & associated ground based training systems (GBTS) (simulators, training devices, computer based training systems & academics)
Acquisition strategy deliberately focused on low risk, in-production, off-the-shelf solution
Advanced Pilot Training (T-X) Competition
KEY PROGRAM MILESTONES
Draft Requirements Release
Draft RFP Release Final RFP Release Proposal Submitted Contract Award
August 2015 September 2016 December 2016 March 2017 July 2018
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Propulsion & Power
Supply Systems
Twin F124 Engines
Develops & Designs the
World’s Most
Sophisticated Aviation
Training Systems
Prime Integrator
The T-100 Team
Partners since 2001
T-100 Aircraft Provider
with ETTS & LVC
Tuskegee Aerospace Development Center, AL
© Leonardo - Società per azioni15
Raffaella Luglini
EVP External Relations, Communication, Italian Institutional Affairs,
Investor Relations and Sustainability
+39 06 [email protected]
We do business in a sustainable manner, with a continued
commitment to economic and social development and the
protection of public health and the environment.
Company Documentation
External Relations, Communication, Italian Institutional Affairs, Investor Relations and Sustainability
Valeria Ricciotti
Equity & Fixed Income Analysts & Investors
and Relationship with Credit Rating Agencies
+39 06 [email protected]
Sustainability
Manuel Liotta
Group Sustainability & ESG
+39 06 [email protected]
Member since 2010
Partecipation since 2008
Member since 2016
Contacts
Social Hub
Sustainability and
Innovation Report
Annual ReportCorporate
Governance Report
Remuneration
Report
www.leonardocompany.com
Leonardo Social Hub
© Leonardo - Società per azioni16
SAFE HARBOR STATEMENT
NOTE: Some of the statements included in this document are not historical facts but rather statements of future
expectations, also related to future economic and financial performance, to be considered forward-looking
statements. These forward-looking statements are based on Company’s views and assumptions as of the date of
the statements and involve known and unknown risks and uncertainties that could cause actual results,
performance or events to differ materially from those expressed or implied in such statements. Given these
uncertainties, you should not rely on forward-looking statements.
The following factors could affect our forward-looking statements: the ability to obtain or the timing of obtaining
future government awards; the availability of government funding and customer requirements both domestically
and internationally; changes in government or customer priorities due to programme reviews or revisions to
strategic objectives (including changes in priorities to respond to terrorist threats or to improve homeland security);
difficulties in developing and producing operationally advanced technology systems; the competitive environment;
economic business and political conditions domestically and internationally; programme performance and the
timing of contract payments; the timing and customer acceptance of product deliveries and launches; our ability to
achieve or realise savings for our customers or ourselves through our global cost-cutting programme and other
financial management programmes; and the outcome of contingencies (including completion of any acquisitions
and divestitures, litigation and environmental remediation efforts).
These are only some of the numerous factors that may affect the forward-looking statements contained in this
document.
The Company undertakes no obligation to revise or update forward-looking statements as a result of new
information since these statements may no longer be accurate or timely.