Leonardo S.p.A.

Investor Presentation • Jul 29, 2016

1H/2Q 2016 ResultsPresentation

Mauro MorettiGian Piero Cutillo

Chief Executive Officer and General ManagerChief Financial Officer

London 29 July 2016

KEY ACHIEVEMENTS IN 1H 2016 (CEO and General Manager)

RESULTS AND OUTLOOK (CFO)

UPDATE ON STRATEGIC DEVELOPMENTS (CEO and General Manager)

Q&A

Key achievements in 1H 2016

• Results confirm successful execution of the Industrial Plan
• Improved industrial performance: strong progress in Aeronautics and DefenceElectronics
• Some softness in Helicopters due to civil markets
• Increased quality of results
• More solid and balanced, with all key businesses contributing to profitability
• More selective in order intake, lower risk, higher quality backlog
• 2016 Guidance confirmed

Outstanding 1H2016 Results

• New Orders at € 12,9mln (+132% YoY), with Book to Bill at 2.4x
• Backlog up to € 35bn (+ 19% YoY)
• Material improvement in operating profitability:
• -EBITDA at € 786mln up 6.5% YoY, margin at 14.5% (from 12.4%)
• -EBITA at € 472mln up 4.9%YoY , RoS at 8.7% (from 7.5%)
• -EBIT at € 399mln up 13.7%YoY , EBIT margin at 7.4% (from 5.9%)
• Net income before extraordinary transactions more than doubled at € 200mln (+120%YoY)
• Net Debt down to € 4.23bn (-15%YoY)
• Sizeable and strategic orders and agreements across the divisions that increasevisibility and sustainability of Group performance
• -Typhoon Kuwait contract, the largest order ever (€7.95bn)
• -Qatar agreement signed in Naval
• -Important achievements in the growing Security business

KEY ACHIEVEMENTS IN 1H 2016 (CEO and General Manager)

RESULTS AND OUTLOOK (CFO)

UPDATE ON STRATEGIC DEVELOPMENTS (CEO and General Manager)

Q&A

Key messages

• Solid start to the year reflecting a better balanced business
• Continuous improvement in Electronics, Defence & Security and Aeronautics
• Offsetting increasingly challenging Helicopters market
• Material step up in Net Result
• FY expectations confirmed
• Very positive incremental impact from EFA Kuwait contract

New Ordersbenefitting from the €7.95bln EFA-Kuwait contract

Revenues

Lower YoY due to change in perimeter and shortfall in Helicopters

Profitability improvement EBITDA improving trend continues, margin 210bp higher YoY

Profitability improvement Higher EBITA despite lower revenues, ROS 120bp higher

Net ResultMore than doubled on lower below the line and net financial expenses

11

Eurofighter Kuwait contractOrder booked in 2Q2016

• Contract signed on April 5th 2016 for 28 Eurofighter in the most advanced configuration, including new E-Scan radar
• Leonardo as prime contractor will lead all activities on behalf of the Consortium. Our share is ca. 60% of total value (€ 7,95mln), remaining 40% is pass-through
• 8-year contract (2016-2023 ). Production, delivery and acceptance will be in Italy (Aircraft Division). Deliveries will start in 2019
• The impact of the contract on the Group :
• ORDERS: 1H2016 reflects the entire amount of the contract
• REVENUES: meaningless contribution in 2016, ramping up in 2017-2018, peak of ca. € 2bln per year in 2020-2021
• EBITA: not expected to be dilutive on margins in 2017-2018, only marginally from 2019 onwards as Revenues peak up
• 12FOCF: downpayment received in July with € 200mln net impact on 2016 FOCF and €400mln in 2017. As typical for this kind of contracts, cash absorption expected as the deliveries start, due to the build up of the Working Capital

FY2016 Guidance

• New Orders: challenging, due to the prolonged crisis of civil helicopters markets
• Revenues: forecasted at the lowest end, driven by lower Helicopters
• EBITA: expected at the top end, confirming continuous improvement in operating performances and increasing benefits from efficiency improvements
• FOCF: confirmed within the range, benefitting from the net effect of the downpayment of the Typhoon Kuwait contract, received in July
• Net Debt: ca. €2.8bn, target achieved one year ahead of original Plan. Potentially impacted by changes in GBP/€ exchange rate

		F Y 2 0 1 A 5	F Y 2 0 1 6 E *
N d e o r e r s w	€ b n	1 2 4	2 0 c a
R e e n e s v u	€ b n	1 3 0	1 2 2 1 2 7 -
E B I T A	€ l m n	1 2 0 8 ,	1 2 2 0 1 2 7 0 - , ,
F O C F	€ l m n	3 0 7	5 0 0 6 0 0 -
G N t r o p e u D b t e	€ b n	3 3	2 8 c a

(*) Assuming €/\$ exchange rate at 1.15 and €/£ at 0.75

KEY ACHIEVEMENTS IN 1H 2016 (CEO and General Manager)

RESULTS AND OUTLOOK (CFO)

UPDATE ON STRATEGIC DEVELOPMENTS (CEO and General Manager)

Q&A

Better bottom line with growing cash conversion

Stronger capital structure for a more solid and flexible Company

Equity

Group Net Debt

Debt-to-Equity ratio

Investments in innovation for future growth leveraging on key technologies

• working on a complete range UAVs (i.e. Falcofamily, IRIS)

• Also to address security needs

• Complete the Training value chain with the M-345 HET

• Extending the M-346 role to light fighter

• Complete the AW169 certification

• Fully develop the AW609, expected to be certified in 2018

• Strengthening capabilities in Security (i.e.NATO N-Circ)

• New IFF System for EFA

Stronger, more focused and better balanced todayContribution to 2016 Guidance*

Executing and delivering strongly in 2016

• We have deeply rationalized the business and product portfolio
• Extracting the benefits of being today ^a one integrated Company
• Facing some market challenges we are concentrating our efforts anddoing an outstanding job in what we can control:
• -Cost
• -Investments
• -Technologies
• Commercial approach
• Result of these efforts clearly evident in our performance
• Relentless commitment to deliver more to our shareholders
• Focusing on responsible business conduct

SECTOR RESULTS

HELICOPTERS

		Q 2		H 1			F Y
€ M ln	2 0 1 6	2 0 1 5	% C h a n g e	2 0 1 6	2 0 1 5	% C h a n g e	2 0 1 5
O d r e rs	4 5 7	9 0 9	( 3 6. 9 % )	9 8 5	2, 2 5 7	( 6 % ) 5 7.	3, 9 1 0
Re ve nu e s	8 9 8	1, 1 9 0	( ) 2 4. 5 %	1, 7 0 8	2, 1 1 4	( ) 1 9. 2 %	4, 4 7 9
E B I T A	1 1 9	1 4 8	( ) 1 9. 6 %	2 0 2	2 6 0	( ) 2 2. 3 %	5 5 8
O S R %	1 3. 3 %	1 2. 4 %	0. 9 p. p.	1 1. 8 %	1 2. 3 %	( ) 0. 5 p. p.	1 2. 5 %

• Challenging market conditions in some relevant segments affecting order intake also in 2Q2016.
• 1H2015 benefitted from UK AW101 IOS contract
• Double-digit profitability maintained notwithstanding lower Revenues
• This Sector confirmed to be affected by challenges in Oil&Gas, extending across the other civil markets, coinciding with the introduction of some of our new products
• We continue to expect solid performance with profitabilitysteadily at double digit

ELECTRONICS, DEFENCE & SECURITY SYSTEMS

(Now includes Defence Systems as a Division , DRS and MBDA)

		Q 2			H 1		F Y
€ M ln	2 0 1 6	2 0 1 5	% C h a n g e	2 0 1 6	2 0 1 5	% C h a n g e	2 0 1 5
O d r e rs	1, 2 3 7	1, 2 6 7	( 2 6. 2 % )	2, 4 9 0	2, 2 8 7	( 8, % ) 7	6. 9 4 7
Re ve nu e s	1, 3 0 3	1, 4 4 8	( ) 1 0. 0 %	2, 4 3 7	2, 5 5 6	( ) 4, 7 %	5. 6 5 6
E B I T A	1 2 1	1 1 4	6. 1 %	1 7 7	1 4 7	2 0. 4 %	5 1 2
O S R %	9. 3 %	9 % 7.	1. 4 p. p.	3 % 7.	8 % 5.	1. 5 p. p.	9, 1 %

Of which

DRS:

		Q 2		H 1			F Y
\$ M ln	2 0 1 6	2 0 1 5	% C h a n g e	2 0 1 6	2 0 1 5	% C h a n g e	2 0 1 5
O d r e rs	4 6 8	4 3 5	6 % 7.	8 9 0	1, 0 0 2	( ) 1 1. 2 %	2, 0 2 2
Re ve nu e s	4 0 7	4 5 3	( ) 1 0. 2 %	7 7 1	8 5 4	( ) 9. 7 %	1, 8 0 5
E B I T A	1 6	3 1	( ) 4 8. 4 %	3 3	4 9	( ) 3 2. 7 %	1 2 6
R O S %	3. 9 %	6. 8 %	( ) 2. 9 p. p.	4. 3 %	5. 7 %	( ) 1. 4 p. p.	7. 0 %

Avg. exchange rate €/\$ @1.10 in 1H 2016Avg. exchange rate €/\$ @1.13 in 1H 2015

• Slight decline in Orders due to somepostponements to H2 and change inperimeter of DRS. Major orders booked inLand & Naval Defence Electronics andDRS
• Sharp improvement in profitability, higherthan expected in all divisions, supportedby efficiency improvements and cost cutting together with recovery of industrial profitability in Security & Information Systems. Expected lower profitability inDRS due to change in mix of activities, partially offset by cost cutting actions
• Profitability expected to further improve, despite ^a more competitive environment and the winding down of some profitableprogrammes, supported by increasingbenefits coming from industrial processesimprovements (Manufacturing, Engineering and Supply Chain)

²²For DRS, excluding the effect of thechange in perimeter (ca.€200mln YoY), we continue to expect positive trend inbusiness growth, even in ^a morecompetitive environment, and ^a furtherincreasein profitability

AERONAUTICS

		Q 2			F Y
€ M ln	2 0 1 6	2 0 1 5	% C h a n g e	2 0 1 6	2 0 1 5	% C h a n g e	2 0 1 5
O d r e rs	8, 4 9 2	3 6 2	n. a.	9, 4 8 5	6 9 1	n. a.	1, 4 1 7
Re ve nu e s	7 4 1	7 5 4	( ) 1. 7 %	1, 3 7 9	1, 4 1 4	( ) 2. 5 %	3, 1 1 8
E B I T A	7 4	5 2	4 2. 3 %	1 1 5	8 6	3 3. 7 %	3 1 2
R O S %	1 0. 0 %	6. 9 %	3. 1 p. p.	8. 3 %	6. 1 %	2. 2 p. p.	1 0. 0 %

• Significant level of new orders boosted by Eurofighter Kuwait (€ 7,95mln); also excluding this effect, bothAircrafts (9 additional M-346 to the Italian Air Force and support activities for EFA, C27J and AMX) andAerostructures(B787 and ATR) achieved very good results
• Revenues affected by change in perimeter (B787 pass-through activities)
• Higher EBITA driven by improvement inAerostructures and C27J
• 2016 profitability expected to further improve driven by additional efficiency-improvement and cost reduction actions also offsetting the winding down of some high-margin programmes.

SPACE

		2 Q			1 H		F Y
€ M ln	2 0 1 6	2 0 1 5	% C h a n g e	2 0 1 6	2 0 1 5	% C h a n g e	2 0 1 5
E B I T A	2 5	2 1	1 9. 0 %	2 9	2 2	3 1. 8 %	3 7

• Good performance in Manufacturing, with higher volumes and better profitability offsetting lower margins inServices
• EBITA and profitability expected to recover in 2016

GROUP PERFORMANCE

		Q 2			H 1		F Y
€ M ln	2 0 1 6	2 0 1 5	% C h a n g e	2 0 1 6	2 0 1 5	% C h a n g e	2 0 1 5
O Ne d w r e rs	1 0, 3 0 3	2, 8 9 8	n. a.	1 2, 8 6 7	3 9 5, 5	n. a.	1 2, 3 7 1
Ba k lo c g	-	-	-	3 4, 9 9 6	2 9, 3 0 3	1 9. 4 %	2 8, 9 3 7
Re ve nu e s	2, 8 7 7	3, 3 1 9	( ) 1 3. 3 %	5, 4 1 3	5, 9 7 3	( ) 9. 4 %	1 2, 9 9 5
E B I T D A	4 6 0	4 1 5	2 0. 0 %	8 6 7	3 8 7	6. % 5	1, 8 6 6
E B I T D A M in a rg	1 6. 0 %	1 3. 6 %	2. 4 p. p.	1 4. 5 %	1 2. 4 %	2. 1 p .p	1 4. 4 %
E B I T A	3 0 8	2 9 3	1 % 5.	4 2 7	4 0 5	4. 9 %	1, 2 0 8
R O S %	1 0. 7 %	8. 8 %	1. 9 p. p.	8. 7 %	7. 5 %	1. 2 p. p.	9. 3 %
E B I T	2 6 5	2 4 1	1 0. 0 %	3 9 9	3 5 1	1 3. 7 %	8 8 4
E B I T M in a rg	9. 2 %	3 % 7.	1. 9 p. p.	4 % 7.	9 % 5.	1. 5 p. p.	6. 8 %
Ne l b fo d ina io t t t t t re su e re ex ra o r ry ra ns a c ns	1 4 4	8 7	6 5. 5 %	2 0 0	9 1	n. a.	2 5 3
Ne l t t re su	1 4 6	1 0 0	4 6. 0 %	2 1 0	1 1 1	n. a.	5 2 7
E P S ( € ) t c e n s	0. 2 5 4	0. 1 4 7	7 2. 8 %	0. 3 6 5	0. 1 4 9	n. a.	0. 9 0 5
F O C F	8 3	1 3 7	( ) 3 9 %	( ) 7 9 3	( ) 7 4 3	( ) 6. 7 %	3 0 7
G Ne De b t t ro u p	-	-	-	4, 2 3 3	4, 9 9 0	( 1 2 % ) 5.	3, 2 8 7
He d t a c ou n	-	-	-	4 6, 7 3 2	5 5, 3 9 3	( ) 1 5. 6 %	4 7, 1 5 6

Free Operating Cash-Flow (FOCF): this is the sum of the cash flows generated by (used in) operating activities (which includes interests and income 26taxes paid) and the cash flows generated by (used in) ordinary investment activity (property, plant and equipment and intangible assets) and dividends received.

Key

Messages

FINANCIAL POSITION (as of end of June 2016)

• No refinancing needs before end 2017
• Strong liquidity position
• Bonds have neither financial covenants nor rating pricing grids
• Average life approx. 7 years

	( l ) €m i
		Bo d n	In i ia l Am t t ou n	Re i d Am t p a ou n	Re Da t te p ay me n
		Do l lar 2 0 1 9	\$ 5 0 0	\$ 6 6	2 0 1 2
E l a r y		Eu 2 0 1 7 ro	€ 6 0 0	€ 9 7	Ju ly 2 0 1 5
		Eu 2 0 2 1 ro	€ 9 0 5	€ 2 1 1	Ju ly 2 0 1 5
R t e p a m e n s y		Eu 2 0 2 2 ro	€ 6 0 0	€ 4 4	Ju ly 2 0 1 5
		S l ing 2 0 1 9 te r	£ 4 0 0	£ 8 2	Ju ly 2 0 1 5
		Do l lar 2 0 3 9	\$ 3 0 0	\$ 2 5	No be 2 0 1 5 ve m r
		Do l lar 2 0 4 0	\$ 0 0 5	\$ 4 3	No be 2 0 1 5 ve m r

LIQUIDITY POSITION (as of end of June 2016)

I d i h i b l i i f i i d F i i l t t n o r e r o c o p e w p o s s e s w n g s n n a n c n g n e e s, n m e c c a n c a c a n e v e r a g e : J h b l f € B i l l i 3 0 0. 8 n e c a s a a n c e o a p p r o o n u x. – i i i f A l b l t C d i l i h € B i l l i ( f i d d f i d ) 2. 7 a a o t t v y r e n e s o r o n c o n r m e a n n c o n r m e w u – C T h R l i d i F i l i i d 6 J l 2 0 1 l i h t t t t 5 t e e v o v n g r e a c y w a s r e n e g o a e o n u y o w e r n g e d t a e q a e u i f 1 8 0 b 1 0 0 b T h i d f i l i h f t t t t t m a r g n r o m p s o p s. e r e n e g o a e a c y a s a n a m o u n o i d t t c o m m e € b d i l l i i J l 2. 0 2 0 2 0 n a n e p r e n w x u y f l i i d i l i B k B d i l i i l € 3. 9 B i l l i F i i 's t t t t a n o n n g n e s o a p p r o x m a e y o n o s u p p o r n m e c c a n c a q u y n e s – i l i i t t c o m m e r c a a c v y

-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

(1) Based on rating as of 30/06/2016

(2) Average. Expected to be renewed at maturity

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 domesticallyand 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 toachieve 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.

Investor Relations & Sustainable Responsible Investors (SRI)

Contacts

Raffaella Luglini

Head of Investor Relations & SRI+39 06 32473.066raffaella.luglini@leonardocompany.com

Valeria RicciottiEquity Analysts & Investors+39 06 32473.697valeria.ricciotti@leonardocompany.com

Alessio Crosa

Fixed Income Analysts & Investors and relationship with Credit Rating Agencies+39 06 32473.337alessio.crosa@leonardocompany.com

Manuel Liotta

Group Sustainability & ESG+39 06 32473.666manuel.liotta@leonardocompany.com

ir@finmeccanica.com www.leonardocompany.com/investors

2015 Annual Results

ANNUAL REPORT 2015 PRESS RELEASE VIDEO-WEBCASTQuick links

30We do business in a sustainable manner, with a continued commitment to economic and social development and the protection of public health and the environment.