Results at 31 March 2019

Solid start to the year

All main business delivering and progress in international markets

Growing results in the first quarter 

• New orders at € 2.5 billon, up 16.4%
• Backlog at € 36.6 billion, ensuring coverage for ca. 3 years
• Revenues at € 2.7 billion, up 11.2% 
• EBITA at € 163 million, up 6.5% 
• Net Result at € 77 million, up 54%
• FOCF negative for € 1.1 billion, in line with the usual seasonal trend

2019 Guidance confirmed

Leonardo's Board of Directors, convened today under the Chairmanship of Gianni De Gennaro, examined and unanimously approved the results of the first quarter 2019.

Alessandro Profumo, Leonardo CEO stated “First quarter 2019 results are solid and growing, in line with expectations. We confirm our 2019 Guidance and we are focused on the execution of the Industrial Plan aimed at Group sustainable growth”.

The results were up for the first quarter of 2019 over the comparative period. Key highlights:

• New Orders, amounted to EUR 2,518 million and showed, compared to the first three months of 2018 (€ 2,164 mln), an increase of 16.4%, mainly due to Defence Electronics & Security 
   
• Order Backlog, amounted to EUR 36,575 million, increasing 9.6% compared to € 33,360 mln in 2018 and ensuring a coverage in terms of equivalent production equal to about three years
   
• Revenues, amounted to EUR 2,725 million, an increase of 11.2% compared to the first quarter of 2018 (€ 2,451 mln), mainly in relation to Defence Electronics & Security and, to a lesser extent, to Helicopters
   
• EBITA, amounted to EUR 163 million, an increase of 6.5% compared to € 153 mln in the first quarter of 2018
   
• ROS: equal to 6%, substantially in line with the first quarter of 2018
   
• EBIT, amounted to EUR 156 million; showing an improvement of € 35 mln (+29%), compared to the first quarter of 2018 (€ 121 mln), due to an improved EBITA and also to the decrease in restructuring costs and lower amortisation of assets deriving from the business combination of Leonardo DRS
   
• Net Result before extraordinary transactions, amounted to EUR 77 million, (€ 50 mln in the first quarter of 2018) and benefitted from both an improved operating result and from lower restructuring costs and lower amortisation of assets deriving from Purchase Price Allocation, as well as financial expenses
   
• Group Net Debt, amounted to EUR 4,016 million, and increased, compared to 31 December 2018 (€ 2,351 mln) and to 31 March 2018 (€ 3,595 mln), due to the usual cash flow trend in the first part of the year as well as to the adoption of IFRS 16 “Leases” (the effect as at the 1st of January 2019 amounted to € 458 mln)
   
• Free Operating Cash Flow (FOCF), negative for EUR 1,114 million, was substantially in line with the first quarter of 2018 (negative for € 1,057 mln)

Outlook

In consideration of the results achieved in the first quarter of 2019 and of the expectations for the following ones, we confirm the Guidance for the entire year that was made at the time of the preparation of the financial statements at 31 December 2018. 

(*) Assuming an exchange rate €/USD of 1.25 and €/GBP of 0.9.

(**) Including IFRS 16 effect