Beruflich Dokumente
Kultur Dokumente
Contents
1H2010 Highlights Pier Francesco Guarguaglini Financial & Business Review Alessandro Pansa Business Strategy gy Pier Francesco Guarguaglini Appendix
1H2010 Highlights g g
Against a tough global backdrop YoY, although our Group first half results for 2010 are slightly down on 1H2009 the 3 Strategic Pillars showed a resilient 1H2009, performance with Orders up10% YoY, Revenues up 6% YoY and EBITA Adj. up 6%Yo The good performance of our 3 Strategic Pillars leveraged on
significant order intake at Helicopters (+37% YoY) driven by both Military ( i.e. AW101 India) and Civil-Gov orders (+60% YoY; 63 helicopters booked in 1H2010 for 600mln); increasing order i k of A i i d intake f Aeronautics ( i (approx +24% Y Y) mainly d i 24% YoY) i l driven b military by ili Revenue growth driven by customer support (Helicopters) and avionics & electro-optic activities (Defence Electronics & Security) P fit bilit d i th in Helicopters and cost reduction i iti ti t d t d ti initiatives i Profitability driven b revenue growth i H li by in Defence Electronics & Security
A Challenging Environment g g
Global economy showing signs of recovery; civil aeronautics and helicopters outlook improving Eurozone financial crisis brings uncertainties and pressure on European defence budgets
UK acting ruthlessly in cutting defence spending Italy: small decrease in Defence spending while funding opportunities for Security are growing . Infrastructures still growing but at a slower pace
FY 09 21,099 45,143 18,176 1,587 8.7% 654 563 3,0 0 3,070 0.41 73,056
1H10 8,050 45,803 8,654 586 6,8% 170 (967) 4,624 ,6 76,527
1H09 8,327 42,980 8,523 605 7,1% 218 (695) 4,615 ,6 5 73,517
1H10/1H09 Change Ch (3.3%) 6.6% 1.5% (3.1%) -0.3 p.p. (22%) (39.1%) 0 % 0.2% Excl. PZL acquisition, reduction of 900 due to rationalisation Lower Ebita, higher financial charges h Investments focused on pillars Negative $/ impact egat e pact Orders deferred Equal to 2.5 years of production Led by: AW139 and customer support, Avionics, Electro Optics. Helicopters and DE&S up; Transportation down
10
11
A Comprehensive Set of Efficiency Measures Launched in 2010 to Bring Benefits over the Next 2 Years (1/2) g ( )
On Operating Companies: p g p
Action Plan Focused on Aeronautics and Rolling Stock: reduction of unabsorbed labour and overhead costs in manufacturing plants due to lower level of production; involving approx. 1,500 Headcount. Net benefits worth ca. 40mln p.a. in 2010 2011 Integration of Alenia Aeronautics/Aermacchi: 1st wave launched in July aimed at integrating staff functions (Finance, HR, Legal) reducing S,G&A; 2nd wave to be launched to integrate industrial activities (i.e. Procurement, R&D, etc) Site rationalisation (PZL in Helicopters, Space Services, Elsag Datamat in DE&S). Once fully operational, estimated at 20-25mln p.a. from 2011 Reorganisations launched: headcount reduction started at Polish PZL helicopter site Optimisation of DE&S and Space: will involve a number of specific business lines, enabling the Group to take advantage of technological complementarity within its structure and to define clear responsibilities to end customers. Once fully operational, expected annual savings of ca. 60-70mln p.a.
1st stage involving organisational rationalisation of D,E&S effective from 1st July 2010. Space will be completed by y p y year end in agreement with Thales g
12
A Comprehensive Set of Efficiency Measures Launched in 2010 to Bring Benefits over the Next 2 Years (2/2) g ( )
On the whole Group:
S,G&A Efficiency Improvement: Plan aimed at analysing staff costs across the Group (Legal, CFO, HR, etc.), defining the cost benchmark for each. First benefits expected to start from Q3 2010; Expected annual savings of approx. 50mln once fully operational (2011) Group Real Estate Consolidation: Expected annual savings of approx. 2025mln p.a.
Tot. 190-210mln p.a. annual savings once fully implemented; to be partially shared with our customers, in order to strengthen our overall competitiveness, while the rest will improve our operating profits
13
Profitable and Selective Investments Consistent With Priorities in Product and Technological Development g p
2010-2012 Cumulated Gross Investments of 4.3bn > 80% in the 3 Strategic Pillars i th St t i Pill 60% devoted to new development/maintenance of existing products 40% devoted to production Cumulated Gross Investments 2010-2012
10% 6% 27%
Capex 43% Capex
24%
4.3bn 4 3b
33%
Helicopters
Aeronautics
(mln)
46
1.000
46
489 500
407
46 46
46
600
500 2025
37
46
46
46
46
244
407
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
2039 2040
Average Debt Life >11 years No refinancing needs for the next three years 12-year amortizing EIB Loan drawn in August 12 year Evaluating opportunity to consolidate existing back-up bank credit lines into a new 5-year Revolving Credit Facility Currently approx. 65-35% fixed vs. floating interest cost 2010 expected average cost of debt approximately 5-5.5%
Solid Capital Structure and Liquidity Support from Existing Debt and Back-up Bank Credit Lines
15
Helicopters
1H2010
(Euro mln) 1H2010 1H2009 Change H1 2010/H1 2009 5.9% 11.7% 0.5 p.p. 36.8% FY 09
Backlog
10,935
10,610
11.7%*
9,786
Revenues up 5 9% mainly due to AW139 5.9% (+8.7% YoY) and product support (+23% YoY), i.e. Integrated Operational Support EBITA increase (+11%YoY) due to revenue growth and product mix Backlog equal to 3 years of production
17
Backlog
12,649
11,239
3.0%*
12,280
EBITA growth mainly due to volume increase and cost reduction Key orders include
Eurofighter radar, avionics, comms and logistics Avionics for NH90 ATC (Italy & export) Thermal W Th l Weapon Si ht D i Vi i E h Sight, Drivers Vision Enhancer, M100 trailers, Mast Mounted Sight and JV-5 computer display for US Army
18
Aeronautics
1H2010 O d growth (+23.8% Y Y) mainly d i Order th (+23 8% YoY) i l driven by military programmes
8 a\c C27J-JCA First tranche of JSF Final Assembly and Check Out (FACO), second tranche expected by year end. Tot value worth 414mln Logistics for Eurofighter
(Euro mln) 1H2010 1H2009 Change H1 2010/H1 2009 4.5% (10%) -0.7 p.p. 23.8% (1.5%)*
FY 09
Revenue growth mainly driven by military programmes (C27J, G222) Military revenues include
Eurofighter, C27J, Tornado, AMX and G222 M346 and MB339
Space
(Euro mln) Revenues EBITA Adj Margin Orders Backlog 1H2010 412 5 1.2% 497 1,713 1H2009 435 13 3.0% 565 1,546 Change (5.3%) (61.5%) -1.8 p.p. (12.0%) 6.3%* FY 09 909 47 5.2% 1,145 1,611
Defence Systems y
(Euro mln) Revenues EBITA Adj Margin Orders Backlog 1H2010 537 37 6.9% 414 3,799 1H2009 514 42 8.2% 566 3,982 Change 4,5% (11.9%) -1.3 p.p. (26.9%) (5.3%)* FY 09 1,195 130 10.9% 1,228 4,010
1H2010
Fewer orders for both Manufacturing (mainly Earth Observation) and satellite services E h Ob i ) d lli i Slight decrease in revenues due to both Manufacturing g
Key programmes include commercial and military TLC and Earth observation
1H2010
Slight decrease in orders mainly due to Missiles & Land Naval S L d&N l Systems
Key orders include Missiles (UK Complex weapon contract and customer support), Underwater (light torpedoes) and Land & Naval (howitzer, (howitzer Naval guns)
Lower volumes impacted profitability Backlog up with Manufacturing accounting for 57% and Services 43%
Energy gy
(Euro mln) Revenues EBITA Adj Margin Orders Backlog 1H2010 677 67 9.9% 374 3,030 3 030 1H2009 820 76 9.3% 398 3,311 3 311 Change ( (17.4%) ) (11.8%) 0.6 p.p. (6.0%) (10.2%) (10 2%)* FY 09 1,652 162 9.8% 1,237 3,374 3 374
Transport
(Euro mln) Revenues EBITA Adj Margin Orders Backlog 1H2010 926 35 3.8% 733 5,864 5 864 1H2009 895 55 6.1% 1,190 5,118 5 118 Change 3.5% (36.4%) -2.4 p.p. (38.4%) (1.5%) (1 5%)* FY 09 1,811 65 3,6% 2,834 5,954 5 954
1H2010
Decrease in orders mainly due to slippage
Key orders include plant and components (i.e. Bangladesh, Finland), new service solutions and nuclear plants and services (France, Argentina, Li h A i Lithuania, Chi ) i China)
1H2010
Revenues up 3.5% mainly driven by Signalling & 3 5% Systems Key revenues include Italy, Australia, Turkey, China, Denmark and Saudi As planned, operating profit down mainly due to overrunning costs on Vehicles legacy contracts Slight decrease in orders mainly due to large order intake in 1H2009 Key orders include Signalling& Systems (Copenhagen driverless metro- O&M- and Italy Naples and Genoa) and Vehicles (tram revamping and Services) Signalling&Systems currently accounts for 66% and Vehicles for 33% of order backlog
21
2010E
Revenues EBITA
Assumptions: forex
17.8-18.6bn 1,520-1,600mln
/US$ 1.45 /GBP 0.88
*Free Operating Cash Flow: Operating Cash after investments, net financial charges and taxes
22
L/T portfolio visibility: backlog and order intake for existing products remain strong despite pressure on defence budgets
Geographical diversification: leading positions in domestic markets and industrial/commercial footprint in selected growing markets Resilience through both product portfolio diversification and presence in civil and military creating a defensive platform Profitable and selective investments in technological innovation focussed in the 3 strategic pillars Exploiting dual-use opportunities and technological expertise to address fast growing Security needs
24
Accounting for more than 40% of total orders awarded in first half 2010
25
Geographical Diversification Offsets weaker Defence and Infrastructure Spending in NATO Countries
Orders
>22bn >22bn
Revenues
17.8-18.6bn 17 8 18 6b
11.5
11.5
45%
8.7bn 8bn
4.0 3.5 2.4 0.9 1.2 1.9 4.9 4.3 1.7 5.0
1H2010
Italy
2010E
UK
2011E
2010E
1H2010 Group Backlog: ca. 45.8bn: equivalent to ca 2.5 years of revenues Eurofighter tr.2 and tr.3A account for ca.49% of Aeronautics backlog; B787 for ca.21% T129 Atak (Turkey) and NH90 account for ca. 26% of Helicopters backlog; customer support for ca.25% - of which ca 44% refers to IOS programmes ca 25% ca.44% Avionic systems , electrooptics , large systems, radar C&C and DRS account for ca. 53% of DE&S backlog
26
Presence in Both Civil and Military Enhances our Defensiveness and Resilience
Governmental Non-Governmental
2009A
31%
Orders Od
1H2010
26%
Govermental includes:
Pure military programmes (funded by MoDs) International Military programmes Institutional Programmes (funded by other Mi i t i th Ministries, i M E i.e. Mo Economic i Development, Mo Infrastructures etc.)
ca.21bn
8bn
69%
74%
2009A
36%
Revenues
1H2010
31%
Non-Governmental includes
Pure commercial programmes
ca.18bn
8.7bn
64%
69%
27
( mld)
80
60
40
20
Defence Electronics
Security
Source: Janes
28
Brazil: significant opportunities for many of our businesses (i e FREMM frigates (i.e. frigates, Border control and Radar 3D for a tot value of ca. 7bn)
Panama: significant short term opportunities for Security Border Control, Helicopters and Space Services
Colombia: opportunities for Land & Underwater Systems, C&C systems, radars & Integrated Naval Combat System
30
Middle East
Helicopters opportunities Security, Radar 3D, Tetra Eurofighter, ATR and M346 Earth Observation Space Service High Speed
Russia
Helicopters opportunities, final assembly of AW139 y SuperJet100 Postal automation ATC and Security Infrastructural projects p j
India da
Agreement with TATA recently signed to set up an AW119 assembly line ATC and Battlespace digitalisation Eurofighter, C27J, ATR Underwater systems
Turkey
Helicopters opportunities (AW149) Tetra, Automation & Infomobility, Integrated Border Management System Eurofighter, Superjet100 Space Services Infrastructural projects
32
Summary y
FY2010: Tough and challenging Committed to achieving Guidance for FY2010 Capture significant opportunities in emerging markets which will help Offset Off t weaker and mature domestic markets k d t d ti k t Prioritise and rationalise investments and costs Beyond 2010 well positioned for when upturn comes
33
Appendix
1H 2010
8.654 (7.744) (275) (49) 586 6,8% (16) (43) 527 6,1% (187) (146) 194 194 170 24 0,295 0,294 0 294 0,295 0,294
1H 2009
8.523 (7.616) (266) (36) 605 7,1% (7) (39) 559 6,6% (156) (161) 242 242 218 24 0,378 0,377 0 377 0,378 0,377
Change %
2%
Revenues Costs for purchases and personnel Depreciation and amortisation Other net operating revenues (costs) EBITA Adj (*) EBITA Adj (*) margin Non-recurring revenues (costs) Restructuring costs PPA amortisation EBIT EBIT margin Net finance income (costs) Income taxes Net profit before discontinued operations Profit of discontinued operations p Net profit
Group Minorities
-3% %
-6%
-20% -20%
EPS (EUR)
Basic Diluted Dil t d
(*) Operating result before: -any impairment in goodw ill; -amortisations of intangibles acquired under business combination; -reorganization costs that are a part of significant, defined plans; -other exceptional costs or income, i.e. connected to particularly significant events that are not related to the ordinary performance of the business.
35
Balance Sheet
BALANCE SHEET
mil.
30.06.2010
14.088 (2.770) (2 770) 11.318 4.833 9.680 (12.674) 1.839 (618) (1.009) 212 11.530 6.689 6 689 217 6.906 4.624 -
31.12.2009
12.956 (2.639) (2 639) 10.317 4.662 8.481 (12.400) 743 (595) (853) (705) 9.612 6.351 6 351 198 6.549 3.070 (7)
Non-current assets Non-current liabilities Inventories Trade receivables Trade payables Working capital g p Provisions for short-term risks and charges Other current net assets (liabilities) Net working capital Net invested capital Capital and reserves attributable to equity holders of the Company Minority interests Shareholders equity Net debt (cash) Net liabilities (assets) held for sale
36
Cash Flow
CASH FLOW
mil.
1H 2010
2.630 1.008 (493) 515 (1.059) (544) (423) (967) (93) 3 (513) (257) (438) (695) 41 919
1H 2009
2.297 1.019 (241) 778 (1.024) (246) (449) (695) (160) (25) (634) (254) (447) (701) 2 718
Cash and cash equivalents at 1 January Gross cash flow from operating activities Changes in other operating assets and liabilities Funds From Operations (FFO) Changes in working capital Cash flow generated from (used in) operating activities Cash flow from ordinary investing activities Free operating cash flow (FOCF) Strategic operations Change in other financing activities Cash flow generated (used) by investment activities Dividends id Di id d paid Cash flow from financing activities Cash flow generated (used) by financing activities Exchange gains/losses Cash and cash equivalents at 30 June
37
Divisions
1H 2010
(Euro m illion)
Helicopters
Defence Electronics 3.255 289 8,9% 114 108 341 3.045 12.649 30.204
Aeronautics
Space
Energy
Revenues EBITA Adj (*) EBITA Adj (*) margin Depreciation and amortisation Investment in non-current assets I t ti t t Research and development costs New orders Order backlog Headcount
Other Activities Transport Eliminations and Corporate 926 114 (272) 35 3,8% 12 21 36 733 5.864 7.281 (82) n.s. 8 6 1 38 139 795 (348) (1.042)
Total
1H 2009
(Euro m illion)
Helicopters
Defence Electronics 3.075 274 2 4 8,9% 99 108 323 3.306 12.280 30.236
Aeronautics
Space
Energy
Revenues EBITA Adj (*) EBITA Adj (*) margin Depreciation and amortisation Investment in non-current assets Research and development costs New orders Order backlog Headcount
Other Activities Transport Eliminations and Corporate 895 198 (268) 55 6,1% 12 13 24 1.190 5.954 7.295 (77) ( ) n.a. 7 5 1 74 172 799 (244) (894)
Total
(*) Risultato operativo ante: - eventuali impairment dell'avviamento; - ammortamenti di immobilizzazioni valorizzate nell'ambito di business combination; - oneri di ristrutturazione, nellambito di piani definiti e rilevanti; - altri oneri o proventi di natura non ordinaria, riferibile, cio, ad eventi di particolare significativit non riconducibili allandamento ordinario dei business di riferimento.
38
(mln)
46
1.000
46
489 500
407
46 46
46
600
500 2025
37
46
46
46
46
244
407
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
2039 2040
Bond
Issuer Finm. Finance1 Finm. Finance Finm. Finance Meccanica Holdings USA Finm. Finance Finm. Finance Finmeccanica SpA Meccanica Holdings USA Meccanica Holdings USA Total
1
Issue Date 2003 2008-2009 2003 2009 2009 2009 2005 2009 2009
Expiry Date Aug-2010 Dec-2013 Dec-2018 July-2019 Dec-2019 Jan-2022 March-2025 July-2039 July 2039 Jan-2040
Cash Credit Lines Revolver Revolver Confirmed Credit Lines Unconfirmed Credit Lines Total Bank Bonding Lines Total
*Average. Expected to be renewed at maturity The amount in GBP and USD are calculated using the exchange rate of 30/06/2010
39
Date 4 March 2010 28-30 April 2010 29 April 2010 28 July 2010 4 November 2010
Event 2009 Full Year Results AGM of Shareholders First Quarter 2010 Results First Half 2010 Results Third Quarter 2010 Results
INVESTOR DAY 2010 Finmeccanica will hold its annual Investor Day in London on Wednesday, November 17, 2010. The following morning there will be a site visit to a Finmeccanica facility. Please save the date on your calendar.
40
IR Contacts
John D. S Stewart
VP Investor Relations +39 06 32473.290 john.stewart@finmeccanica.com
Raffaella Luglini
Investor Relations Officer +39 06 32473.066 raffaella.luglini@finmeccanica.com
41