Slides
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Rome, March 11th, 2025 Industrial Plan 2025 Update (2025-2029) Leonardo: Technologies for a Safer Future
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2 Agenda 1. Recap of the Industrial Plan 4. Group’s targets 5. Other relevant initiatives 2. Strengthen the core – key initiatives 2.1 Digitalization 2.2 Efficiency Plan 2.3 Focus on Aerostructures 3. Pave the way to the future – new initiatives 3.1 Space Division 3.2 JV with Baykar 3.3 JV with Rheinmetall 3.4 GCAP 3.5 Leonardo Hypercomputing Continuum LoB
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3 Financial KPI FY 2024 RESULTS Orders, €B Revenue, €B FOCF, €B EBITA, €B ROS, % 2023 8,5% 18,7 16,0 0,65 1,35 2024 20,9 17,8 0,83 1,52 8,6% +12% +11% +13% +27% +0,1 p.p. 2024 vs 2023
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4 ▪ Rationalization of product portfolio ▪ Efficiency Plan ▪ Digitalization across all our business Pave the way to the broader security challenge Strengthen core business A two-fold strategy for: 1- Bridging the transition from Defence to Global Security through continuous innovation 2- Acting as a catalyst for the new European Defence ▪ Inorganic growth, new technologies and emerging markets ▪ Creation of global alliances ▪ Boosting Cyber Security, AI and Space technologies integration Air Space Land Maritime Electronics Space Cloud HPC Cyber Recap of the Industrial Plan – Vision RECAP OF THE INDUSTRIAL PLAN
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5 R&D, innovation and new product introduction AW249 first firing campaign AW09 and AW609 certification M346 Block 20 capability evolution New product releases for Cyber Eco-system, AI platform, Global Monitoring and MCX1 Set-up of “Multi-Domain Innovation Hub” and launched working group with Italian Army Digitalization AI-Based and Digital Services entry-into-service with prognostic capabilities (Aircraft and Helicopters) Introduced new Leonardo Hypercomputing Continuum Line of Business Servitization / customer proximity Launch of Leonardo Logistic Network across Electronics, Aircraft and Helicopters Divisions Boost IOS2 to further improve service levels and customer satisfaction in Helicopters Increase IFTS3 exploitation (achieved 100th graduation) Group-wide efficiencies and Corporate cost reduction Efficiency plan, including inflation mitigation initiative LGS Restructuring Business and product focus / rationalization New Aerostructures Division Industrial Plan implementation Disposal of “Underwater Armaments Systems” business and “IIA4” participation Electronics and Cyber Portfolio Rationalization Optimization of operations Adoption of autonomy and automation solutions to improve operations, services and performances Digital Twin for whole product lifecycle optimization from product design to CSS&T5 Helicopters production efficiency program Global alliances and M&A in emerging technologies and markets New Space Division establishment JV with Baykar on UAV Leonardo-Rheinmetall Military Vehicles (LRMV) JV established Signed JV Agreement on GCAP M&A on Cyber to enhance Leonardo’s Zero Trust approach for Cyber Secure Ecosystem 1. Mission Critical Push-to-talk video and data | 2. Integrated Operation Support | 3. International Flight Training School | 4. Industria Italiana Autobus | 5. Customer Support Services & Training Organic growth Efficiency boost Inorganic growth STRENGHTEN COREPAVE THE WAY TO THE FUTURE NOT EXAUSTIVE COMPLETED ONGOING Recap of the Industrial Plan – Implementation RECAP OF THE INDUSTRIAL PLAN
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6 Agenda 1. Recap of the Industrial Plan 4. Group’s targets 5. Other relevant initiatives 2. Strengthen the core – key initiatives 2.1 Digitalization 2.2 Efficiency Plan 2.3 Focus on Aerostructures 3. Pave the way to the future – new initiatives 3.1 Space Division 3.2 JV with Baykar 3.3 JV with Rheinmetall 3.4 GCAP 3.5 Leonardo Hypercomputing Continuum LoB
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7 Enterprise Digital Backbone Unique integrated PLM1 Transition from legacy ERP2 to cloud native platforms STRENGHTEN CORE KEY INITIATIVES Digital Continuum Digital Twin Factory of the Future Integrated Business Solutions In-service Support Products & Services DigitalizationInternal Process Digitalization ALL DIV. ALL DIV. AerostructuresEfficiency PlanDigitalization AI in Defence Operations 2.1 Digitalization ALL DIV. AI & Advanced Simulation Digital twin for whole product life cycle optimization Smart Manufacturing to improve efficiency and flexibility Integrated digital simulation ISANKE3 & ICS4 for GCAP Digital continuity and simulations for Aircraft and Helicopters AI Dynamic Cross Domain Command & Control to enhance digital asset interoperability Servitization also to enable new business models 1. Product Life-cycle Management | 2. Enterprise Resource Planning | 3. Integrated Sensing and Non-Kinetic Effects | 4. Integrated Communications Systems
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8 191 280 360 470 590 AerostructuresEfficiency PlanDigitalizationSTRENGHTEN CORE KEY INITIATIVES 2.2 Efficiency plan 2024-2028 plan, €M Target € ~1,8 B 2024 – 2028 savings across the INDUSTRIAL PLAN horizon Focus on Procurement Savings 2024A 2025E 2026E 2027E 2028E PROCUREMENT 125 CORPORATE 15 TRAVELS 23 BUSINESS DISPOSAL1 28 TOTAL Act ‘24 191 2024 Bdg: 150 €M Successfully achieved 2024 objectives thanks to Procurement and Supply Chain contract renegotiations and other initiatives for inflation mitigation 0 1 2 3 4 5 6 7 8 9 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 p.p. Market Evolution Long-term Agreement Mitigations Budget Target Actual External costs evolution (Inflation Rate YoY) 2025-2029 2,9 3,3 4,5 5,4 1. Cost avoidance resulting from not refinancing of Industrial Italiana Autobus and Skydweller
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9 Partnership Engagement • Advance discussion with most promising Partner Sep ‘24 Strategy & Innovation Aerostructures Division Management • MD • Business VP • Operations VP • Engineering VP • Procurement VP • Finance VP • HR VP Group HR Group Finance International Advisors Working Group Timeline of the initiative AerostructuresEfficiency PlanDigitalizationSTRENGHTEN CORE KEY INITIATIVES 2.3 Aerostructures 1. Due Diligence 2. Selection of Int. Investment / Industrial partners involved in Aerospace Internal Due Diligence • Started internal Due Diligence • Dedicated task force Industrial Plan Development • Developed and launched new multi- scenario Industrial Plan, including: ✓ Business diversification into new programs ✓ Revision of make / buy policy and industrial set-up ✓ Enhancement of industrial efficiency ✓ Supply Chain restructuring Partnership Screening • Screening and assessment of potential industrial and financial Partners Partnership Development • Detailed analysis of Commercial and Industrial Synergies • Co-development of Joint Industrial Plan • Implementation roadmap Year End ‘25
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10 Strategic Partnership for Aerostructures Partner selection criteriaPartnership Key Principles AerostructuresEfficiency PlanDigitalizationSTRENGHTEN CORE KEY INITIATIVES Become a global champion in the Aerostructures sector Pursue all commercial and operational synergies unlocked by partnership to ensure a solid and sustainable business Volumes increase in the civil sector enabled by Partner levers Expansion in the military sector Business diversification (e.g. MRO for civil and military fleets) Investments sharing to support industrial plan implementation Enhance cost efficiency by leveraging combined industrial capabilities Additional industrial synergies such as privileged access costs for strategic materials, ...
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11 Agenda 1. Recap of the Industrial Plan 4. Group’s targets 5. Other relevant initiatives 2. Strengthen the core – key initiatives 2.1 Digitalization 2.2 Efficiency Plan 2.3 Focus on Aerostructures 3. Pave the way to the future – new initiatives 3.1 Space Division 3.2 JV with Baykar 3.3 JV with Rheinmetall 3.4 GCAP 3.5 Leonardo Hypercomputing Continuum LoB
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12 The company is launching a wave of innovative initiatives, leveraging key enabling technologies and capabilities, to build a new interconnected and interoperable digital ecosystem, able to operate across all domains MBT / AICS NAVAL COMBAT SYSTEM PAVE THE WAY SPACE MARITIMELAND AIR CYBERHPC & CLOUD SPACE CLOUD ELECTRONICS 6TH GEN FIGHTER UAV NEW SPACE DIVISION E2E SPACE SERVICES CYBER SECURITY BY DESIGN 3. Pave the way to the future COMBAT CLOUD HIGH PERFORMANCE COMPUTING
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13 Through strategic partnerships with key players, Leonardo is acting as the driving force behind the Defence market consolidation, to ensure a unified and robust Defence and Security framework MBT / AICS OSN JV LEONARDO - FINCANTIERI NAVAL COMBAT SYSTEMCOMBAT CLOUD MULTIDOMAIN INNOVATION HUB PAVE THE WAY GCAP NEW HYPERCOMPUTING CONTINUUM LINE OF BUSINESS LEONARDO - BAYKAR JV SPACE ALLIANCE 2.0 M&A CYBER SPACE MARITIMELAND AIR CYBERHPC & CLOUD SPACE CLOUD ELECTRONICS UAV 6TH GEN FIGHTER NEW SPACE DIVISION E2E SPACE SERVICES CYBER SECURITY BY DESIGN LEONARDO - RHEINMETALL MILITARY VEICHLES JV HIGH PERFORMANCE COMPUTING LEONARDO CONSTELLATION In a world of bullets and bytes, no one can make it on its own COMPLETED ONGOING
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14 PAVE THE WAY Space market growing ~7% by 2030, with untapped opportunities due to use of advanced digital analytics, new business models and satellite-services Military / Governmental E2E Solutions expected to generate momentum due to the relevance of space layer for Defence & Intelligence, as well as in the multi- domain environment Space key trends Leonardo new Space Division to catalyze Group capabilities and offer E2E solutions Space Alliance covers nearly all the Space value chain, but needs an update to capture new opportunities Space Alliance 2.0 Current positioning 3.1 New Space Division LHyC LoBGCAPMBT/AICSUAVSpace Division
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15 The Leonardo constellation Distinctive space as-a-service offering, potentially leveraging Public-Private Partnership infrastructure Multi domain integration across segments (EO, Connectivity, …) and solutions from different Leonardo Divisions Full control of data policy, without being limited into specific time slots or span windows Strategic positioning as a European leading space player and key contributor to national security Space backbone architecture, enabling integration through space layer of multiple sensors and capabilities PAVE THE WAY Military LEO sats IT MoD financed 12 standard + 6 infrared (~€900M of which €580M already allocated by MoD) + (~€450M+ in 3 years) + Space Alliance Smart Factory up and running in July 2025 Launch windows between 2027 and 2028 ~ 18 Civil EO LEO multi sensor sats internally financed ~ 20 STRATEGIC RATIONALE Enabler of space end-to-end solution provider positioning, in export market and institutional driven G2G prospects LHyC LoBGCAPMBT/AICSUAVSpace Division
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16 SAR Optical Edge computing HPC node Ground segment center (incl. Control & Use) Leonardo’s new HPC Davinci Leonardo’s data lake Leonardo’s cybersecurity center Edge computing Edge computing Intersatellite link terminals Data processing Edge computing Storage server Optical SAR SAR SAR Optical Optical Optical and RF antennas Optical/ and RF antennas PAVE THE WAY Data Transport Leonardo EO / Data constellation configuration Launch Schedule 20282025 2029 Launch Train 1/2 8 sats TRAIN 1 / 2 Ground Delivery Kick Off 2026 2027 TRAIN 3 / 4 / 5 Launch Train 3/4/5 12 sats Ground Delivery Upside € ~1,3 B 2025 - 2029 cumulated revenues LHyC LoBGCAPMBT/AICSUAVSpace Division
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17 ▪ Cutting-edge electronics systems ▪ Integration of payloads and effectors ▪ Swarming / CUC-T1 capability ▪ Strong capabilities in EU approval and certification ▪ Design and development of advanced UAV platforms ▪ Extensive portfolio covering all relevant UAV segments ▪ Advanced and efficient manufacturing processes and capabilities Joint solutions combining the best of both companies' capabilities PAVE THE WAY MoU signed on March 6th LHyC LoBGCAPMBT/AICSUAVSpace Division Baykar is a world leader in UAV segment ~ $ 2 B Rev. ’24 700+ UAVs delivered 1. Crewed-UnCrewed Teaming 3.2 JV with Baykar for advanced UAV solutions
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18 Payloads Missionization and Integration Certification Advanced capabilities in swarming / CUC-T2 Mission Systems development and payload integration EU/NATO certification approval capabilities Navigation in GNSS1-denied environment Design Organization Approval (DOA) Detect and Avoid (DAA) system capability Production Organization Approval (POA) Interoperability for Multi-Domain Operations PAVE THE WAY 1. Global Navigation Satellite System | 2. Crewed-UnCrewed Teaming DCU Data Conc. Unit DTD/DVDR Flight Data Acquisition Unit STR - 800 SW Def Radio CCU Mission Computer LDI - T21 Compact Transponder PPDU - SPDU Prim /Sec Power Distribution ELS NVIS Combined + Glazing DLMS Data Link Mgmt System Fire Control Radar Family Gabbiano UL Surv Radar LEOSS S/T Radar Altimeter FCC Flight Control Computer WBDL Wide Band Data Link SMC Store Management Computer ULISSES Ultra Light Sonics Enhanced System SKYWARD Infrared Seach and Track BRITESTORM Integrated SystemsEquipments Certified Solutions Leonardo capabilities in UAV platforms, systems and certification LHyC LoBGCAPMBT/AICSUAVSpace Division
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19 PAVE THE WAY Identified areas of collaboration with Baykar Category Missions Platforms ISTAR1 EW2 Strike / CAS3 Collaborative Combat UCAV Very Heavy Heavy Light Heavy Light Mini Target Drones MALETACTICAL Mission applicability 1. ISTAR: Intelligence, Surveillance, Target Acquisition, Reconnaissance | 2. EW: Electronic Warfare | 3. CAS: Close Air Support Out of Scope (Leonardo currently involved in the Eurodrone program) Upside € ~0,6 B 2025 - 2029 cumulated revenues ▪ Established working groups for detailed technical solutions definition ▪ Integration of Leonardo Payload already ongoing → to be increased immediately ▪ Starting production ramp-up both in Turkey and Italy in 2026 LHyC LoBGCAPMBT/AICSUAVSpace Division Kizilelma Eurodrone Akinci TB3 TB2 Kalkan Mini Mirach
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20 ▪ 50 / 50 JV for the design and development of state-of-the-art technologies able to compete at international level: ▪ New multi-domain Main Battle Tanks based on Panther platform ▪ New Armoured Infantry Combat Systems based on Lynx platform ▪ Leveraging on Leonardo extensive capabilities in mission systems, electronics suites and weapons integration E/O Panoramic Gunner Radar Software Defined Radio Multi server Router Rugged Display Command & Control VoIP intercom Digital Vehicular Intercom Sys PAVE THE WAY 3.3 Joint Venture with Rheinmetall LHyC LoBGCAPMBT/AICSUAVSpace Division
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21 Organization and next steps Establishment of the JV Contract Award JV Security & Armaments clearances obtained PAVE THE WAY February 25 La Spezia Operative Headquarter CEO Laurent Sissmann Executive Chairman David Hoeder Systems Engineering Directorate Program Management Directorate Joint JV Leadership Rome Legal Headquarter BD, Sales & Government Affairs Directorate Finance & Administration Directorate Nominated by RheinmetallNominated by Leonardo Main Upcoming Milestones LHyC LoBGCAPMBT/AICSUAVSpace Division 2026 on Contract Execution Beginning of offering phase
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22 PAVE THE WAY MBT / AICS Program Initiative Master Plan Italian MoD Delivery Schedule (Excluding Export) 2025 2026 2027 2028 2029 2030 … 2035 … 2040 Design and Development Prototyping and Type Approval AICS Gap Filler Production Ramp-up 20 48 63 56 39 30 9 7 56 97 115 84 98 97 97 91 86 76 77 75 16 9 21 104 160 171 123 128 106 104 91 86 76 77 75 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 AICS – Total 1.050 units AICS Gap Filler MBT – Total 272 units Upside € ~1 B 2025 - 2029 cumulated revenues LHyC LoBGCAPMBT/AICSUAVSpace Division
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23 Combat Air Core Platform Adjunct & Drones Sensors & Data Fusion Power & Propulsion Effectors GCAP requirements will drive the evolution of combat systems in the next decade, including development of future core platform, EW / Radar multi-mission systems and multi- sensor & multi-spectral data fusion ▪ Advanced Stealth capabilities ▪ AI-assisted decision making ▪ Digital-twin native ▪ Integrated in Combat Cloud ▪ Cyber-attack resilient by design ▪ ISANKE1: fully integrated sensing, fusion and self- protection capability ▪ ICS2: System enabling to network crewed and uncrewed aircrafts, as part of multi- domain ecosystem PAVE THE WAY 3.4 Joint Venture GCAP LHyC LoBGCAPMBT/AICSUAVSpace Division 1. Integrated Sensing And Non-Kinetic, Effects | 2. Integrated Communication System
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24 1. Integrated Sensing And Non-Kinetic Effects; 2. Integrated Communication System; 3. Electro Magnetic | 4. Command & Control Growth potential for Leonardo Major Achievements Unveiled the new concept model of GCAP next generation combat aircraft at Farnborough International Airshow On-going activities at national level for key developments of the ISANKE1 & ICS2 avionic systems Signed JV agreement with BAE Systems and Japan Aircraft Industrial Enhancement (JAIEC) with a 33,3% shareholding each, with Leonardo distinctive role and activities on flight & mission segments, manufacturing & logistics Leveraging GCAP spillovers for a generational leap Communication Interoperable networking, modular, scalable and with cross-class security PAVE THE WAY Advanced Radars & Sensors Detection/tracking, resist EM3 countermeasures Command & Control Enhance multi-domain C24 capabilities Crewed- uncrewed Unmanned integration and teaming with manned combat platforms Autonomy Development of AI-assisted decision-making capabilities Flight System Integration Reinforce capabilities in development and integration of mission-critical systems 3.4 GCAP: Achievements & future steps LHyC LoBGCAPMBT/AICSUAVSpace Division ~ € 40 B up to 2035 for the entire enterprise (design & development phase including 10 prototypes) of which ~ 1/3 Italian MoD investments expected > 300 platforms orders for the entire enterprise after 2035 (export excluded) COMPLETED ONGOING
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25 The focus on digital technologies, AI and High-Performance Computing (HPC) is the key enabler of Leonardo’s Industrial Plan 3.5 The new Line of Business: Leonardo Hypercomputing Continuum PAVE THE WAY 2x Computing power by 2026 Leonardo disruptive digital technologies throughout the entire value chain, evolving into a Company working in a multi-domain environment across Divisions Engineering simulations to improve design and performance of next generation platforms Satellite image analysis for earth observation and monitoring GenAI-based predictive analytics to anticipate market trends and operative challenges LHyC LoBGCAPMBT/AICSUAVSpace Division 200+ Researchers engaged in its operations 2.000+ Registered users for HPC computation Among the most powerful HPCs in the A&D industry worldwide
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26 End-to-end HPC solutions for institutions and industry PAVE THE WAY Target Markets A,D&S Public Admin. Healthcare Energy Transport Financial Services Upside € ~230 M 2025 - 2029 cumulated revenues On-premise HPC Requirements definition Solution design Hardware Acquisition and Services Installation Acceptance and Testing Optimization System Management Production Management & Support 1. On-premise HPC design and set-up 2. HPC operational management HPC as-a-service High-value added AI and computing tasks leveraging on HPC Davinci 3. Computing Services HPC Solutions 4. Enabling Solutions High-level support on HPC technology, code development, and other services Application modernization HPC competencies internalization and specialized training Applications identification, development and deployment LHyC LoBGCAPMBT/AICSUAVSpace Division
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27 Expected Upsides from New Initiatives within the Budget Plan Preparing a robust future from 2030 onwards gu ORDER INTAKE (€B) 0,1 0,7 1,2 1,6 1,8 2025 2026 2027 2028 2029 ▪ Leonardo Workshare from JV with Rheinmetall (LMRV) due to Italian national contract1 (excluding export) ▪ New Space Division: upsides generated towards external clients, including business from new Leonardo constellation2 ▪ Upsides from JV with Baykar on UAV business ▪ Introduction of new Leonardo Hypercomputing Continuum Line of Business (LHyC) * GCAP already included in Industrial Plan Baseline 1. Partially included in current industrial plan baseline | 2. New constellation financing achieved trough rationalization of current Leonardo investment plan, potentially leveraging Public-Private Partnership infrastructure Major new initiativesREVENUES (€B) 2025-2029 Industrial Plan Upside Cumulated 2025-2029 Total: 5,4 LHyC LoB: 0,3 Space Div.: 1,8 LRMV: 2,2 Total: 3,1 LHyC LoB: 0,2 Space Div.: 1,3 LRMV: 1,0 2025-2029 Industrial Plan Upside Cumulated 2025-2029 PAVE THE WAY UAV: 1,1 0,1 0,3 0,5 0,8 1,4 2025 2026 2027 2028 2029 UAV: 0,6
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28 PAVE THE WAY Long term contribution of key new initiatives 0,6 1,0 1,3 1,7 2,4 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 REVENUES (€B) ▪ Leonardo-Rheinmetall JV (LMRV): Revenues growth as per program schedule agreed with Italian Army (excluding export) ▪ New Space Division: Leonardo to achieve full potential of Space Business and growing in line with the Market ▪ UAV: Leonardo and Baykar to consolidate alliance and further extend collaboration ▪ Leonardo Hypercomputing Continuum LoB (LHyC): in line with expected market growth, assuming no technological disruptions ▪ GCAP: Revenues growth above 2029 in line with program schedule (core platform only, excluding export) Exp. Growth Trajectory 2025-2029 Industrial Plan Expected Growth Trajectory GCAP Included in the 2025-29 Industrial Plan Baseline Stable revenues in the range of € 3 – 4 B per year from 2030 on
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29 Agenda 1. Recap of the Industrial Plan 4. Group’s targets 5. Other relevant initiatives 2. Strengthen the core – key initiatives 2.1 Digitalization 2.2 Efficiency Plan 2.3 Focus on Aerostructures 3. Pave the way to the future - new initiatives 3.1 Space Division 3.2 JV with Baykar 3.3 JV with Rheinmetall 3.4 GCAP 3.5 Leonardo Hypercomputing Continuum LoB
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30 2024 2029Financial KPI The evolution of our KPIs Orders, €B Revenue, €B FOCF, €B EBITA, €B 8,6% Double digit 2026 ROS, % 20,9 17,8 0,83 1,5 24,4 22,6 1,44 2,6 11,7% +17% +27% +73% +73% +3,1 p.p. 2029 +upside 26,2 24,0 1,53 2,8 11,8% 2029 vs 2024 GROUP’S TARGETS
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31 € ~118 B 2025 - 2029 expected cumulated orders >1,1 Book to Bill Confirmed over the plan ▪ Order growth anchored on portfolio of products and solutions responding to evolving customer needs ▪ Supportive market backdrop driving domestic and export orders, without concentration of exposure to single country / customer ▪ Upside coming from new Space Division, LRMV JV, new Leonardo Hypercomputing Continuum Line of Business and JV with Baykar ▪ Book to bill consistently >1 € ~105 B 2024 - 2028 Industrial Plan cumulated orders Baseline Upside from New Initiatives (LRMV, New Space Div., LHyC LoB, JV with Baykar) 21,0 21,6 22,4 23,4 24,4 0,7 1,2 1,6 1,8 18,7 20,9 21,1 22,3 23,6 25,0 26,2 2023A 2024A 2025E 2026E 2027E 2028E 2029E CAGR 3,9% Backlog 44,2 41,0 56,551,749,246,4 54,3 2024 Bdg: € 19,4 B +5,8% CAGR GROUP’S TARGETS Orders will be up to € 26 B in 2029, including the Upside Orders of Leonardo Group (estimated values for 2025 and beyond), €B
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32 € ~95 B 2024-2028 Industrial Plan cumulated revenues ▪ Revenue growing at 7,0% CAGR through backlog delivery, new wins and upside ▪ Balanced growth across businesses with synergic effect between platforms and sensors / systems operating in a multi-domain environment ▪ Proven track record of delivering growth, successfully managing external challenges in the supply chain € ~106 B 2025 - 2029 expected cumulated revenues 18,6 19,3 20,5 21,5 22,6 0,3 0,5 0,8 1,4 16,0 17,8 18,6 19,6 21,0 22,3 24,0 2023A 2024A 2025E 2026E 2027E 2028E 2029E 2024 Bdg.: € 16,8 B CAGR 5,9% CAGR GROUP’S TARGETS +7,0% Revenue up to € 24 B in 2029 Revenue of Leonardo Group (estimated values for 2025 and beyond), €B Baseline Upside from New Initiatives (LRMV, New Space Div., LHyC LoB, JV with Baykar)
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33 EBITA more than doubling, including the Upside EBITA of Leonardo Group (estimated values for 2025 and beyond), €B ~1,8x Industrial Plan EBITA in 2028 vs. 2023 ▪ Profitability growing at ~2x revenues ▪ Operating leverage, stringent program management, and Group-wide efficiency plan supporting profitability consistent growth over the plan ▪ Advanced technological offering and portfolio refocus resulting in higher margins on projects ▪ New initiatives contribution starting from 2026 11,5%10,6%9,7%9,0%8,6%8,5%ROS % 11,8% 1,66 1,88 2,16 2,44 2,64 0,03 0,08 0,12 0,19 1,35 1,53 1,66 1,90 2,23 2,56 2,83 2023A 2024A 2025E 2026E 2027E 2028E 2029E 2024 Bdg: € 1,4 B GROUP’S TARGETS CAGR 13,1% +13,1% CAGR Baseline Upside from New Initiatives (LRMV, New Space Div., LHyC LoB, JV with Baykar)
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34 FOCF more than doubling including upside FOCF of Leonardo Group (estimated values for 2025 and beyond), €B 1. Net Operating Losses >2,0x expected FOCF in 2029 vs. 2023 ▪ Doubling cashflows deriving from higher EBITA, strong operational performance while continuing to invest in growing programs and new technologies, also boosting digital capabilities ▪ Significant impact in cash taxes from 2027 onwards reflecting full utilization of NOLs1 by 2026 ▪ Investment pool includes both upgrade of existing technologies and capabilities and a boost for new initiatives CAGR +15,2% Cash Flow supporting disciplined capital allocation strategy 0,65 0,83 0,87 1,01 1,17 1,39 1,53 2023A 2024A 2025E 2026E 2027E 2028E 2029E 2024 Bdg: € 0,77 B GROUP’S TARGETS CAGR +15,2% Baseline Upside from New Initiatives (LRMV, New Space Div., LHyC LoB, JV with Baykar)
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35 Europe + UK are committed to spending more and better on Defence in response to the unprecedented threats and security challenges ITALY 2024 Defence Expenditure of € 29 B (~ 1,5% of GDP) +1,0 p.p. of GDP% ~ +€ 20 B Total Defence Expenditure1 ~ +€ 6 - 10 B Defence Procurement REST OF EU + UK 2024 Defence Exp. of € 332 B (Avg. ~ 2% of GDP) ~ +€ 160 B Total Defence Expenditure1 ~ +€ 50 - 80 B Defence Procurement +1,0 p.p. of GDP% ~ +€ 2 - 3 B Leonardo Upside per p.p. ~ +€ 2 - 3 B Leonardo Upside per p.p. UPSIDE ON LEONARDO BUSINESS + ~ 4 % Capture rate on Procurement Spending 1. Total Defence Expenditure includes personnel and procurement | 2. € 650 B through each Member State increase Defence spending of 1.5 p.p. of GDP + € 150 B in loans to sustain joint purchasing On Mar 11th, according to announced ReArm Plan, EU is targeting €800 B2 Total Defence Expenditure in the next 4 years ~ 30% - 50% in Procurement ~ 30% - 50% in Procurement ~ 35% Capture rate on Procurement Spending GROUP’S TARGETS Conceptual estimate of upside from EU Defence Expenditure Increase
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36 Time From Defence… Increase of Defence spending, driven by geopolitical threats and urgent need for EU strategic autonomy Leonardo is building the foundation of its future products and service offering, to face the transition from Traditional Defence to dual-use Global Security that will become the “New Normal” …To Dual Use Global Security The “new normal” will require Governments to reinforce critical infrastructures leveraging innovative technologies Progressive stabilization of international conflicts Land Vehicles Unmanned Systems Next Gen. Fighters Global Monitoring Data Valorization (HPC + AI) Cyber security & resilience Resilient Broadband comms Multi-domain system of systems Naval Combat Systems Space Situational Awareness How could be the future of Defence and Global Security? NOT TO SCALE GROUP’S TARGETS After the stabilization, Defence will still need to: 1. Refurbish Arsenals 2. Make Defence effective 3. Give time to digital to grow
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37 Capacity Boost LEONARDO REVENUES GROWTH TRAJECTORY The growth of our business requires to strengthen our delivery capacity Capacity Boost Organic Growth + € 4,8 B in 2029 Upsides from New Initiatives1 + € 1,4 B in 2029 Upside from EU Defence Expenditure Increase ~ +€ 4 - 6 B per each p.p. of GDP The New Normal Dual Use Defence and Global Security Leonardo will launch a dedicated program to reach full capacity potential while improving profitability within the Industrial Plan horizon 1. Upside coming from new New Space Division, LRMV JV, new Leonardo Hypercomputing Continuum Line of Business and JV with Baykar From € 17,8 B in 2024 To € 24,0 B in 2029 LOOKING FORWARD FROM EXTERNAL CONTEXT The Capacity Boost program will sustain Leonardo challenge to face the New Normal (more info in the next updates) GROUP’S TARGETS
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38 Sources 2025-2027 10-15% Shareholder Returns3 Sale of UAS € 0,4 B Operating Cash flow1,2 € 5,6 B 15-25% Inorganic Growth <10% Debt Repayment 50% Organic Growth Aimed at paving the way to the future while strengthening the core Committed to maintaining solid Investment grade Focus on strategic areas of growth Increasing dividend by 90% in 2025, with commitment to raise remuneration over the plan also through share buy-back € 6,0 B 1. FOCF before net investments | 2.Includes investments on R&D and infrastructures | 3.Excludes DRS Shareholder Remuneration CAPITAL DEPLOYMENT PRIORITY High Low GROUP’S TARGETS Disciplined capital allocation strategy supporting growth and increasing shareholder returns Prioritized Capital Deployment 2025-2027 ~€ 3 B ~€ 1,5 B ~€ 1 B ≤€ 0,5 B
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39 Leonardo M&A approach until now • Targets addressed in the last 12 months20 • Focus on the Cyber and Space domains • Distinctive Products / Technologies with strong fit with Leonardo portfolio strategy • International footprint and access to global market Extensive scouting effort not yet materialized due to: Targets identified often lack technology / product maturity with unproven market success because of size (target value at 15% - 20% of Division Turnover) Prudent approach in a very competitive scenario Going forward… Focus on more mature target Maintain priority on Cyber, Space + AI Subject to disciplined capital allocation, ability to increase target value range Offers refused3 Offers still ongoing5 Offers stopped12 Focus on M&A GROUP’S TARGETS
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40 80 160 300 2023 2024 2025 0,14 € 0,28 € 0,52 € 2023 2024 2025 Leonardo Shareholder Return significantly increased from 2023 GROUP’S TARGETS NOT TO SCALE Dividend Paid (€M) Dividend Per Share (€) 100% Increase ~90% Increase 370% Increase KPI’s in line with peers ▪ Payout Ratio ≈ 40% ▪ Dividend Yield 1,7%
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41 Agenda 1. Recap of the Industrial Plan 4. Group’s targets 5. Other relevant initiatives 2. Strengthen the core – key initiatives 2.1 Digitalization 2.2 Efficiency Plan 2.3 Focus on Aerostructures 3. Pave the way to the future - new initiatives 3.1 Space Division 3.2 JV with Baykar 3.3 JV with Rheinmetall 3.4 GCAP 3.5 Leonardo Hypercomputing Continuum LoB
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42 Sustainable supply chain Digitalization • >70% of major tenders including ESG criteria by 2028 • ≥ 500 key suppliers trained on strategic sustainability topics by 2027 Decarbonization (SBTi) • - 53% Scope I and II emissions by 2030 (vs 2020) • - 52% emissions / flight hour equivalent from our solutions in 2030 (vs 2020) • 58% suppliers by emissions with science-based targets by 2028 Sustainability Targets • + 40% computing power per capita in 2025 (vs 2020) • + 40% storage capacity per capita in 2025 (vs 2020) Committed to deliver a sustainable business value proposition 2025-2029 Sustainability plan key preliminary figures 20 >85% ~ 140 M€ ~ 280 M€ cumulated CapEx and OpEx top projects account for of total CapEx and OpEx planned revenues from Space & Cyber sustainable solutions in the Plan Sector leadership acknowledged by the main ESG ratings Environmental protection • - 25% water withdrawals by 2030 (vs 2019) • - 15% waste produced by 2030 (vs 2019) 2024 Status 1. From February 2025 Dow Jones Best-in-Class Indices Highest score in A&D Prime status only for 5 companies out of 73 Among the top 20 companies in A&D out of 95 Among the best performers in A&D Average status among 88 companies Among the top 20 companies in A&D Europe Highest score in A&D out of 103 companies 6th consecutive year Confirmed in DJSI1 (World + Europe) 15th consecutive year Highest score for climate change in A&D Europe Among the top 1% of all companies rated worldwide (>130,000) ACTIONS REQUIRED IN LINE RELEVANT INITIATIVES
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43 APPENDIX
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44 Divisions 2024 Achievements Electronics • Strong commercial momentum and delivery across all domains • Portfolio rationalization effort ongoing • Accomplished disposal of Underwater Armaments & Systems to Fincantieri • Established JV with Rheinmetall Helicopters • Solid performance driven by stronger CSS&T as well as platforms deliveries • AW249 first firing campaign completed • Launched performance improvement programs on operations and customer support network Aircraft • Solid order intake sustained by Eurofighter new A/C (Italy, Spain), logistic support (Kuwait) and LTE1 • GCAP JV Agreement for the Core Platform development • M346 selected for “Frecce Tricolore”, C-27J FF2 launching customer, UAV Astore contract award • IFTS3 with 12 international users, 100th graduation Aerostructures • Topline improvement driven by progressive commercial aviation market recovery, despite Boeing issues • Achieved first phase of repricing of B787 fuselage • New Aerostructures Division Industrial Plan implementation Cyber • Solid commercial performance on strategic markets: Defence, Government & Police Forces • Streamlined portfolio and new products release • Increased leadership on Italian sovereign Cloud for Public Administration • Strategic partnership with Arbit (DK) Space4 • Telespazio fully consolidated • Continued improvement across all business lines • New Space Division established STRENGHTEN CORE DIVISION HIGHLIGHTS 2.4 Divisions Organic Growth 1. Long Term Evolution | 2. Fire Fighting | 3. International Flight Training School | 4.Leonardo Space BU + Telespazio
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45 Divisions 2024 Achievements Electronics • Strong commercial momentum and delivery across all domains • Portfolio rationalization effort ongoing • Accomplished disposal of Underwater Armaments & Systems to Fincantieri • Established JV with Rheinmetall Helicopters • Solid performance driven by stronger CSS&T as well as platforms deliveries • AW249 first firing campaign completed • Launched performance improvement programs on operations and customer support network Aircraft • Solid order intake sustained by Eurofighter new A/C (Italy, Spain), logistic support (Kuwait) and LTE1 • GCAP JV Agreement for the Core Platform development • M346 selected for “Frecce Tricolore”, C-27J FF2 launching customer, UAV Astore contract award • IFTS3 with 12 international users, 100th graduation Aerostructures • Topline improvement driven by progressive commercial aviation market recovery, despite Boeing issues • Achieved first phase of repricing of B787 fuselage • New Aerostructures Division Industrial Plan implementation Cyber • Solid commercial performance on strategic markets: Defence, Government & Police Forces • Streamlined portfolio and new products release • Increased leadership on Italian sovereign Cloud for Public Administration • Strategic partnership with Arbit (DK) Space4 • Telespazio fully consolidated • Continued improvement across all business lines • New Space Division established Electronics AircraftHelicopters Cyber SpaceAerostructuresSTRENGHTEN CORE DIVISION HIGHLIGHTS
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46 Completed On-going Electronics Portfolio rationalization Phase 1 completed (ca. 13%) KEY ACHIEVEMENTS UNTIL NOW Global player with European leadership and a distinctive US presence Rationalize portfolio and increase competitiveness Catalyst for European cooperation, expanding the international reach • Gain wider access to the European market • Contribute to the Land Defence European environment • Enhance market positioning in Naval Combat Systems 4 2 1 3 AIR (GCAP): on-going activities for key developments of the ISANKE1 & ICS2 avionic systems in Italy and UK Launch of Leonardo Logistic Network program to increase customer support and commercial opportunities LAND: Leonardo-Rheinmetall Military Vehicles (LRMV) JV established NAVAL:On-going integration of “Whole-Warship” capabilities into Orizzonte Sistemi Navali (OSN JV) Set up “Multi-Domain Innovation Hub” and Italian Army Working Group AIR (GCAP): Signed JV agreement with BAE Systems and Mitsubishi Heavy Industries INDUSTRIAL PLAN GOALS Completed sale of LoB Underwater Armaments & Systems (UAS) to Fincantieri Significative time to market reduction by securing supply chain (insourcing and domestic suppliers) 1. Integrated Sensing and Non-Kinetic Effects | 2. Integrated Communications Systems Electronics AircraftHelicopters Cyber Space AerostructuresSTRENGHTEN CORE DIVISION HIGHLIGHTS Our goals and achieved results
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47 1 2 3 4 Electronics Gain wider access to the European market ▪ Leverage GCAP spillovers for a generational leap (radar & sensors, comms, command & control) ▪ Tackle major collaboration programs e.g. Eurofighter LTE, Eurodrone and next-gen Rotorcraft Contribute to the Land Defence European Environment ▪ Leverage solutions developed for Army customer to evolve land domain product suite (for domestic and export market) towards multi-domain integration ▪ Target Future European Armored Combat Vehicle Programs leveraging high-level technologies developed for Italian programs (MBT / AICS) Enhance positioning in Naval domain ▪ Evolve Naval Combat System solutions leveraging on proprietary sensors / effectors and Combat Management System ▪ Reinforce partnerships with shipyards Rationalize portfolio and increase competitiveness ▪ Finalize portfolio rationalization ▪ Develop next generation products with a higher level of configurability by leveraging enhanced digitalization ▪ Enhance key role as Multi-Domain Operations Solution Provider Electronics AircraftHelicopters Cyber SpaceAerostructuresSTRENGHTEN CORE DIVISION HIGHLIGHTS Looking forward…
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48 Financials (estimated values for 2025 and beyond), €B1 2023A2024A2025E2026E2027E2028E2029E 4.1 4.6 5.0 5.5 6.0 6.3 6.6+8.5% 2023A 2024A 2025E 2026E 2027E 2028E 2029E 0.40 0.48 0.54 0.64 0.71 0.76 0.82 +12.5% Revenue 1. Not including DRS, Cyber, equity participations in MBDA and Hensoldt, Leonardo Space BU and Underwater Armaments & Systems. Partially including LRMV contribution EBITAOrders NOT TO SCALE +2.4 p.p. ROS 2029 vs. 2023 thanks to volume increase and business/ product focus/ rationalization, optimization of manufacturing and procurement Steadily growing orders reaching ca. € 8 B, also benefiting from GCAP, MBT and AICS Strong performance and growth, in line or higher than previous plan confirmed ROS 9.9% 10.3% 10.9% 11.5% 11.8% 12.0% Backlog 19.818.818.217.216.114.6 Electronics 2023A 2024A 2025E 2026E 2027E 2028E 2029E 5.5 6.4 6.5 6.6 6.9 7.0 7.6 +5.6% 12.3%12.8 Electronics AircraftHelicopters Cyber SpaceAerostructuresSTRENGHTEN CORE DIVISION HIGHLIGHTS Facts and figures
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49 Divisions 2024 Achievements Electronics • Strong commercial momentum and delivery across all domains • Portfolio rationalization effort ongoing • Accomplished disposal of Underwater Armaments & Systems to Fincantieri • Established JV with Rheinmetall Helicopters • Solid performance driven by stronger CSS&T as well as platforms deliveries • AW249 first firing campaign completed • Launched performance improvement programs on operations and customer support network Aircraft • Solid order intake sustained by Eurofighter new A/C (Italy, Spain), logistic support (Kuwait) and LTE1 • GCAP JV Agreement for the Core Platform development • M346 selected for “Frecce Tricolore”, C-27J FF2 launching customer, UAV Astore contract award • IFTS3 with 12 international users, 100th graduation Aerostructures • Topline improvement driven by progressive commercial aviation market recovery, despite Boeing issues • Achieved first phase of repricing of B787 fuselage • New Aerostructures Division Industrial Plan implementation Cyber • Solid commercial performance on strategic markets: Defence, Government & Police Forces • Streamlined portfolio and new products release • Increased leadership on Italian sovereign Cloud for Public Administration • Strategic partnership with Arbit (DK) Space4 • Telespazio fully consolidated • Continued improvement across all business lines • New Space Division established Electronics AircraftHelicopters Cyber SpaceAerostructuresSTRENGHTEN CORE DIVISION HIGHLIGHTS
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50 Completed On-going KEY ACHIEVEMENTS UNTIL NOW 4 2 1 3 INDUSTRIAL PLAN GOALS AW09 Certification program in execution, manufacturing of first production aircraft ongoing Cooperation with Airbus in NH90 MLU2 roadmap definition Certification activities ongoing for AW609 (first landing test on Italian aircraft carrier) Launch of Leonardo Logistic Network program to enhance customer proximity and unlock new opportunities Extensive effort in autonomy and automation to improve operations, safety and performance AW249 first firing campaign completed and IT Army exercise Digital Twin and Virtual Sensors adoption for flight ops optimization and new design approach, AI-based Digital Services entry into service with prognostic capabilities, AW139 selected as a platform for USMC1 Logistic Connector Demo led by Near Earth Autonomy & Honeywell Streamlined Operations through digital in Manufacturing Execution, assets tracking, integrated data management Achieved the Proteus RUAS Tech Demonstrator, further developments under assessment with UK Royal Navy Helicopters Reinforce product portfolio, both services and platforms Optimize industrial model Pioneer and develop cutting edge technologies and products Explore international cooperations Confirm record-level orders and accelerate backlog conversion to revenue Become the global civil market leader and a military key player leveraging cutting-edge products and strategic partnerships 1. US Marine Corps; 2. MLU Mid Life Upgrade Electronics AircraftHelicopters Cyber SpaceAerostructuresSTRENGHTEN CORE DIVISION HIGHLIGHTS Our goals and achieved results
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51 1 2 3 4 Optimize industrial model ▪ Increase production efficiency through industrial costs optimization, Final Assembly Line layout & process redesignalso ensuring a reduction of environmental manufacturing impact ▪ Focus on increasing helicopters’ standard configurations to reduce variability in series production Reinforce product portfolio ▪ Continuous improvement of AW Familywith new avionics and capabilities and introduction of brand-new single engine AW09 ▪ Optimize dual-use portfolio to satisfy both civil and military users internationally ▪ AW249 to become a new state-of-the-art Combat Helicopter with Full Operational Capability by 2030 ▪ Increase customer proximity, boost IOS1 and expand service portfolio with digital offering Pioneer cutting-edge tech and products ▪ Entry in service of AW609by 2026 ▪ Consolidated roadmap on Autonomy & Future Warfare capabilities leveraging on Flying Lab asset (by 2027) and design of future proprietary autonomy backbone (by 2029) ▪ Incremental development of Battle Lab for enabling multi-domain federated / LVC2 simulation ▪ Explore Hybridization options by means of dedicated propulsion Lab ▪ Increasing adoption of Digital Twin as key enabler for new design approaches Explore international cooperations ▪ Cooperation with Bell in NGRC3 (NATO) and with Airbus in ENGRT4 to secure positioning as a reference Next Gen Rotorcraft OEM for EU/NATO opportunities, enabling both fast and conventional rotorcraft technology ▪ Target NH90 Evolution for a fully integrated platform into the multi-domain NATO combat network Helicopters 1. Integrated Operation Support | 2. Live, virtual, and constructive | 3.Next Generation Rotorcraft Capability | 4. EU Next Generation Rotorcraft Technologies Electronics AircraftHelicopters Cyber SpaceAerostructuresSTRENGHTEN CORE DIVISION HIGHLIGHTS Looking forward…
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52 +1.1 p.p. ROS2023-29 with EBITA growing faster than revenues, confirming double digit at the end of the plan 2023A2024A2025E2026E2027E2028E2029E 4.7 5.2 5.5 5.8 6.0 6.3 6.5 +5.5% 2023A 2024A 2025E 2026E 2027E 2028E 2029E 0.42 0.47 0.50 0.53 0.59 0.62 0.65 +7.4% Revenues EBITA 2023A2024A2025E2026E2027E2028E2029E 5.5 5.9 6.1 6.2 6.3 6.4 6.5 +2.8% Orders ROSBacklog Book-to-Bill > 1 Order Intake in continuous growth reaching a record level of € 6.5 B at plan end led by continuous improvement of product portfolio and technologies 5.5% CAGR of revenues driven by an acceleration of execution which lead to achievement of €5B threshold one year in advance with respect to previous plan 9.9%9.8%9.2%9.0%8.9%8.9% NOT TO SCALE 16.5 16.3 16.0 15.6 15.1 14.4 Helicopters 10.0%16.5 Electronics AircraftHelicopters Cyber SpaceAerostructuresSTRENGHTEN CORE DIVISION HIGHLIGHTS Financials (estimated values for 2025 and beyond), €B Facts and figures
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53 Divisions 2024 Achievements Electronics • Strong commercial momentum and delivery across all domains • Portfolio rationalization effort ongoing • Accomplished disposal of Underwater Armaments & Systems to Fincantieri • Established JV with Rheinmetall Helicopters • Solid performance driven by stronger CSS&T as well as platforms deliveries • AW249 first firing campaign completed • Launched performance improvement programs on operations and customer support network Aircraft • Solid order intake sustained by Eurofighter new A/C (Italy, Spain), logistic support (Kuwait) and LTE1 • GCAP JV Agreement for the Core Platform development • M346 selected for “Frecce Tricolore”, C-27J FF2 launching customer, UAV Astore contract award • IFTS3 with 12 international users, 100th graduation Aerostructures • Topline improvement driven by progressive commercial aviation market recovery, despite Boeing issues • Achieved first phase of repricing of B787 fuselage • New Aerostructures Division Industrial Plan implementation Cyber • Solid commercial performance on strategic markets: Defence, Government & Police Forces • Streamlined portfolio and new products release • Increased leadership on Italian sovereign Cloud for Public Administration • Strategic partnership with Arbit (DK) Space4 • Telespazio fully consolidated • Continued improvement across all business lines • New Space Division established Electronics AircraftHelicopters Cyber SpaceAerostructuresSTRENGHTEN CORE DIVISION HIGHLIGHTS 1. Long Term Evolution | 2. Fire Fighting | 3. International Flight Training School
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54 Completed On-going KEY ACHIEVEMENTS UNTIL NOW 4 2 1 3 INDUSTRIAL PLAN GOALS Sustainable order levels Aircraft IFTS1 with 12 international users (+50%), 120th graduation, cadets slot fully booked, capacity increase and digital plan GCAP JV agreement for development and delivery of Core Platform with balanced distinctive roles and activities (flight & mission segments, manufacturing & logistics) New contracts award for (i) Eurofighter aircraft (Italy, Spain), (ii) logistics service (e.g., Kuwait), and (iii) enhancement (P4E) and Long-Term Evolution M-346 selected for Italian Aerobatic Team, Block 20 capability evolution launched M-346 consolidated partnerships (US / Textron, Japan / MHI) to increase worldwide penetration New partnerships to drive unmanned product portfolio positioning as well as for next-gen air tactical mobility and multi-mission / fire fighting M-345 qualification and delivery, UAV Astore contract awards, C-27J Fire Fighting launch customer acquired Become, in the medium-term, a leading player in major cooperative international programs Secure, in the short-term, orders for sustainable growth, and boost the high- margin service business High-margin service business Fully exploit key role in GCAP Strategic Industrial Partnerships Leonardo Logistic Network program and digitalization to increase customer support and commercial opportunities Electronics AircraftHelicopters Cyber SpaceAerostructuresSTRENGHTEN CORE DIVISION HIGHLIGHTS Our goals and achieved results 1. International Flight Training School
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55 1 2 3 4 Sustainable order levels ▪ Expand combat segment international reach through EFA strategic campaigns, EFA capacity evolution (Long-Term Evolution Program) and logistics (EFA, F-35) ▪ Proprietary platforms capabilities (M-346 Block 20, C-27J incl. Fire Fighting version) High-margin service business ▪ Further expand servitization model (e.g. IFTS), competitive turn-key logistics and training services, powered by digital transformation and regional hubs expansion leveraging Leonardo Logistic Network initiative Fully exploit key role in GCAP ▪ Capitalize on our industrial role in GCAP to develop next-generation air system-of-systems, crewed-uncrewed teaming and enable multi-domain operations Strategic Industrial Partnerships ▪ International cooperation to develop competitive product portfolio for crewed and uncrewed aircraft (e.g., M-346 worldwide, Future tactical airlifter, Eurodrone and other UAVs) Aircraft Electronics AircraftHelicopters Cyber SpaceAerostructuresSTRENGHTEN CORE DIVISION HIGHLIGHTS Looking forward…
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56 Best-in-class profitability with a double-digit ROS confirmed across the Plan horizon Revenue EBITAOrders ROSBacklog 11.7%11.7%11.7%13.8%14.6%14.3% Aircraft NOT TO SCALE 9.2 9.0 8.8 8.6 8.3 8.0 12.3% CAGR for orders 7.7% CAGR for revenue driven by strong fighter business and supported by proprietary platforms 2023A2024A2025E2026E2027E2028E2029E 2.9 2.9 3.2 3.6 3.9 4.3 4.6+7.7% 2023A 2024A 2025E 2026E 2027E 2028E 2029E 0.42 0.42 0.44 0.42 0.45 0.51 0.54 +4.3% 2023A2024A2025E2026E2027E2028E2029E 2.4 2.9 3.5 3.9 4.2 4.4 4.8 +12.3% 11.7%8.0 Electronics AircraftHelicopters Cyber SpaceAerostructuresSTRENGHTEN CORE DIVISION HIGHLIGHTS Financials (estimated values for 2025 and beyond), €B Facts and figures
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57 Divisions 2024 Achievements Electronics • Strong commercial momentum and delivery across all domains • Portfolio rationalization effort ongoing • Accomplished disposal of Underwater Armaments & Systems to Fincantieri • Established JV with Rheinmetall Helicopters • Solid performance driven by stronger CSS&T as well as platforms deliveries • AW249 first firing campaign completed • Launched performance improvement programs on operations and customer support network Aircraft • Solid order intake sustained by Eurofighter new A/C (Italy, Spain), logistic support (Kuwait) and LTE1 • GCAP JV Agreement for the Core Platform development • M346 selected for “Frecce Tricolore”, C-27J FF2 launching customer, UAV Astore contract award • IFTS3 with 12 international users, 100th graduation Aerostructures • Topline improvement driven by progressive commercial aviation market recovery, despite Boeing issues • Achieved first phase of repricing of B787 fuselage • New Aerostructures Division Industrial Plan implementation Cyber • Solid commercial performance on strategic markets: Defence, Government & Police Forces • Streamlined portfolio and new products release • Increased leadership on Italian sovereign Cloud for Public Administration • Strategic partnership with Arbit (DK) Space4 • Telespazio fully consolidated • Continued improvement across all business lines • New Space Division established Electronics AircraftHelicopters Cyber SpaceAerostructuresSTRENGHTEN CORE DIVISION HIGHLIGHTS
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58 Revenue EBITAOrders ROS Overall challenging business context due to prolonged gap between workload and industrial capacity, compounded by high inflationary pressure Developed and launched new industrial plan including multiple improvement levers such as business diversification, revision of make / buy policy, enhancement of industrial efficiency and supply chain restructuring +0.8%-3.0%-6.4%-17.5%-25.1% -22.9% Aerostructures BEFORE UPSIDE CONTRIBUTION FROM PARTNERSHIP 1.31.31.21.21.01.1 Backlog 2023A2024A2025E2026E2027E2028E2029E 0.6 0.7 0.8 1.1 1.2 1.4 1.5+15.7% 2023A 2024A 2025E 2026E 2027E 2028E 2029E -0.16 -0.17 -0.13 -0.07 -0.04 0.01 0.04 2023A2024A2025E2026E2027E2028E2029E 0.6 0.7 0.9 1.2 1.3 1.5 1.5+15.4% +2.5%1.2 Electronics AircraftHelicopters Cyber SpaceAerostructuresSTRENGHTEN CORE DIVISION HIGHLIGHTS Financials (estimated values for 2025 and beyond), €B1 Facts and figures
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59 Divisions 2024 Achievements Electronics • Strong commercial momentum and delivery across all domains • Portfolio rationalization effort ongoing • Accomplished disposal of Underwater Armaments & Systems to Fincantieri • Established JV with Rheinmetall Helicopters • Solid performance driven by stronger CSS&T as well as platforms deliveries • AW249 first firing campaign completed • Launched performance improvement programs on operations and customer support network Aircraft • Solid order intake sustained by Eurofighter new A/C (Italy, Spain), logistic support (Kuwait) and LTE1 • GCAP JV Agreement for the Core Platform development • M346 selected for “Frecce Tricolore”, C-27J FF2 launching customer, UAV Astore contract award • IFTS3 with 12 international users, 100th graduation Aerostructures • Topline improvement driven by progressive commercial aviation market recovery, despite Boeing issues • Achieved first phase of repricing of B787 fuselage • New Aerostructures Division Industrial Plan implementation Cyber • Solid commercial performance on strategic markets: Defence, Government & Police Forces • Streamlined portfolio and new products release • Increased leadership on Italian sovereign Cloud for Public Administration • Strategic partnership with Arbit (DK) Space4 • Telespazio fully consolidated • Continued improvement across all business lines • New Space Division established Electronics AircraftHelicopters Cyber SpaceAerostructuresSTRENGHTEN CORE DIVISION HIGHLIGHTS
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60 Completed On-going KEY ACHIEVEMENTS UNTIL NOW 2 1 INDUSTRIAL PLAN GOALS Focalize the existing product portfolio Become A,D&S market reference for “cyber secure by design” Cyber European key player in cyber security & resilience, secure digital platforms and mission critical communications focused on Defence, Space, and National Strategic Organizations 3 Accelerate growth through acquisitions Strong commercial performance driven by a distinctive offering in core markets: Cyber & Digital for Defence, Data Valorization and Secure Cloud for Strategic Government (Italy), data intelligence for Public Safety Relaunched Mission Critical Communication, also boosting MCX1 opportunities across Europe and other export markets Established an end-to-end Cyber Resilience value proposition and positioned as leading resilience partner for the UK MoD Cooperation with selected European innovators in key technologies. e.g. strategic partnership with Arbit (DK) for cross-domain development Strengthened collaboration with European peers through commercial and product alliances Electronics AircraftHelicopters Cyber SpaceAerostructuresSTRENGHTEN CORE DIVISION HIGHLIGHTS Our goals and achieved results 1. Mission Critical Push-to-talk video and data
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61 1 2 3 Focalize the existing product portfolio ▪ Build an “AI-driven” cybersecurity ecosystem enabled by proprietary and distinctive products and solutions to become leader in Zero Trust and Data-Centric security ▪ Consolidate a complete “Cyber Command & Control” ecosystem for multi-domain operations ▪ Leverage major experiences in Data Valorization and Sovereign Cloud to drive innovation and support Defence, Agencies and Law Enforcement-specific requirements Become A,D&S market reference for “cyber secure by design” ▪ Co-develop next-generation cyber-resilient-by-design products (radars, helicopters, aircraft, etc.), ensuring mission continuity and system integrity ▪ Integrate cyber resilience across the entire lifecycle of systems, from design to decommissioning, for enduring protection against evolving threats Accelerate growth through acquisitions ▪ Accelerate Leonardo's Zero Trust approach leadership for cyber secure ecosystem through acquisitions of selected European Targets and strategic partnerships Cyber Electronics AircraftHelicopters Cyber SpaceAerostructuresSTRENGHTEN CORE DIVISION HIGHLIGHTS Looking forward…
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62 ~4x EBITA >2x ROS double digit from 2025 2023A2024A2025E 2026E 2027E 2028E 2029E 0.04 0.05 0.07 0.09 0.12 0.16 0.18+30.2% Revenue EBITA 2023A 2024A 2025E 2026E 2027E 2028E 2029E 0.7 0.8 0.9 1.1 1.3 1.5 1.6+14.4% Orders ROS 14.4% CAGR ~2x revenue 12.8%11.6%10.5%9.6%7.6%6.1% Cyber NOT TO SCALE 2.32.11.81.61.31.1 Backlog 2023A2024A2025E2026E2027E2028E2029E 0.6 0.6 0.7 0.8 1.0 1.2 1.3+14.5% 13.2%1.0 Also leveraging on market opportunities and bolt-on inorganic growth Electronics AircraftHelicopters Cyber SpaceAerostructuresSTRENGHTEN CORE DIVISION HIGHLIGHTS Financials (estimated values for 2025 and beyond), €B Facts and figures
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63 Divisions 2024 Achievements Electronics • Strong commercial momentum and delivery across all domains • Portfolio rationalization effort ongoing • Accomplished disposal of Underwater Armaments & Systems to Fincantieri • Established JV with Rheinmetall Helicopters • Solid performance driven by stronger CSS&T as well as platforms deliveries • AW249 first firing campaign completed • Launched performance improvement programs on operations and customer support network Aircraft • Solid order intake sustained by Eurofighter new A/C (Italy, Spain), logistic support (Kuwait) and LTE1 • GCAP JV Agreement for the Core Platform development • M346 selected for “Frecce Tricolore”, C-27J FF2 launching customer, UAV Astore contract award • IFTS3 with 12 international users, 100th graduation Aerostructures • Topline improvement driven by progressive commercial aviation market recovery, despite Boeing issues • Achieved first phase of repricing of B787 fuselage • New Aerostructures Division Industrial Plan implementation Cyber • Solid commercial performance on strategic markets: Defence, Government & Police Forces • Streamlined portfolio and new products release • Increased leadership on Italian sovereign Cloud for Public Administration • Strategic partnership with Arbit (DK) Space4 • Telespazio fully consolidated • Continued improvement across all business lines • New Space Division established Electronics AircraftHelicopters Cyber SpaceAerostructuresSTRENGHTEN CORE DIVISION HIGHLIGHTS 4.Leonardo Space BU + Telespazio
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64 >2.0x EBITA mainly driven by Telespazio 2023A2024A2025E2026E2027E2028E2029E 0.8 0.9 1.0 1.0 1.2 1.4 1.5+9.9% 2023A 2024A 2025E 2026E 2027E 2028E 2029E 0.07 0.08 0.09 0.09 0.12 0.15 0.15+13.2% Revenue EBITA2 2023A2024A2025E2026E2027E2028E2029E 1.0 1.0 1.0 1.3 1.5 1.5 1.6+8.8% Orders ROS >1.6x orders >1.5x revenue 10.5%9.9%8.9%8.8%8.8%8.7% 1. Includes financials of Leonardo Space Business Unit from 2023 despite formal consolidation process to start from 2024 | 2. Not including EBITA from Thales Alenia Space and Avio NOT TO SCALE 2.62.52.32.01.81.7 Backlog2 Space 10.5%1.7 Leveraging on increasing opportunities and coordination across the Group Not including the Upside Electronics AircraftHelicopters Cyber SpaceAerostructuresSTRENGHTEN CORE DIVISION HIGHLIGHTS Financials (estimated values for 2025 and beyond), €B1 Facts and figures
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65 FY 2025 Guidance FY 2024 Net debt, €bn 1.8 Guidance 2025 (1) Orders, €bn 20.9 ca.21 Revenue, €bn 17.8 ca. 18.6 EBITA, €M 1,525 ca. 1,660 FOCF, €M 826 ca. 870 ca. 1.6 (2) Exchange rate assumptions: € / USD = 1.08 and € / GBP = 0.86 (1) Based on the current assessments of the impacts of the geopolitical situation also on supply chain, inflationary levels and the global economy, subject to any further significant effects (2) Assuming the increased dividend payments from €0.28 to €0.52 per share, M&A transaction of ca. €500 million, DRS shareholders remuneration, new leasing contracts and other minor movements. 2025 Guidance does not include the contribution of Underwater Armaments & Systems (UAS) business deconsolidated starting from 2025
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66 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.
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67 CONTACTS leonardo.com Head of Investor Relations and Credit Rating Agencies Valeria Ricciotti +39 06 32473.697 valeria.ricciotti@leonardo.com Investor Relations and Credit Rating Agencies +39 06 32473.512 ir@leonardo.com