Leonardo S.p.A. — Investor Presentation 2023

May 3, 2023

1Q 2023 Results Presentation

Rome

3 May 2023

Agenda

• Q&A
• Sector results
• Appendix

• Key messages Alessandro Profumo, Chief Executive Officer

• Financial review Alessandra Genco, Chief Financial Officer

Good start to the year: progressing in line with expectations

Leonardo is stronger, more resilient, sustainable and better set up to capture commercial opportunities

CONTINUED STRONG COMMERCIAL MOMENTUM AND FINANCIAL PERFORMANCE

• Progressing well with our plans
• Order intake of € 4.9 bn, up 29.3%* with no jumbo orders included
• Backlog at € 39.1 bn and Book-to-bill at 1.6x
• Revenues at € 3.0 bn, up 2.6%* YoY
• EBITA at €119** mln, up 4.4%*** in divisions and Leonardo DRS; strategic JV contribution down € 21 mln YoY
• RoS at 3.9% in divisions and Leonardo DRS
• FOCF at € -0.7 bn, up almost 400 million YoY
• Continued deleveraging, with Net debt down 1.1bn vs 1Q2022
• Reconfirming 2023 guidance
• Sale of US ATM business completed
• Moody's just upgraded Leonardo to Investment Grade

* Adjusted perimeter to exclude the contribution of Global Enterprise Solutions

• ** Adjusted perimeter to exclude the contribution of the strategic JVs and Hensoldt
• *** Adjusted perimeter to exclude the contribution of Global Enterprise Solutions, the strategic JVs and Hensoldt

Agenda

• Q&A
• Sector results
• Appendix

• Key messages Alessandro Profumo, Chief Executive Officer

• Financial review Alessandra Genco, Chief Financial Officer

1Q 2023 Highlights

• Strong commercial activity
• Continued strong demand for our products supports growing top line
• Solid profitability from all divisions with expected lower JVs contribution
• FOCF up almost € 400 mln YoY
• Moody's upgrade to Investment Grade

	1Q2022A	1Q2022 Adj.1	1Q2023	% Δ1
ORDERS (€bn)	3.8	3.8	4.9	+29.3%
REVENUES (€bn)	3.0	3.0	3.0	+2.6%
EBITA (€mln)	132	121	105
	of which Divisions and DRS	114	119	+4.4%
	of which Strategic JVs and Hensoldt	7	-14	n.m.
FOCF (€mln)	-1.080	-1.081	-688	+36.4%
NET DEBT (€bn)	4.8	4.8	3.7	-22.7%

1) Adjusted perimeter to exclude the contribution of Global Enterprise Solutions and including the contribution of Hensoldt in 1Q22 that was not included due to financial calendar disalignment

Order Intake Confirming commercial success

	€ mln	∆ % YoY
1Q2022A*	3,765
HELICOPTERS	1,889	118.9%
ELECTRONICS EUROPE	1,624	9.1%
LEONARDO DRS	698	8.9%
AIRCRAFT	731	-6.4%
AEROSTRUCTURES	126	34.0%
ELIMINATIONS & OTHER	-200
1Q2023A	4,868	29.3%

*Adjusted perimeter to exclude the contribution of Global Enterprise Solutions

Revenues

Strong program delivery driving top line growth

	€ mln	∆ % YoY
1Q2022A*	2,958
HELICOPTERS	880	-4.7%	Phasing effect and expected lower contribution from NH90 Qatar
ELECTRONICS EUROPE	1,046	9.5%	Growing volumes in Defence
LEONARDO DRS	530	6.6%	1Q22 benefited from non-recurring step-up on the Columbia-Class program
AIRCRAFT	559	-2.1%	1Q22 benefitted from higher EFA Kuwait contribution due to phasing
AEROSTRUCTURES	151	22.8%	Driven by B787 programme rate increase
ELIMINATIONS & OTHER	-132
1Q2023A**	3,034	2.6%

* Adjusted perimeter to exclude the contribution of Global Enterprise Solutions

** Including ca. € 5 mln of negative forex

EBITA and Profitability

Continued solid profitability from all divisions, with growing EBITA and expected €21mln lower contribution from JVs

	€ mln	RoS	∆ % YoY
1Q2022A*	121	4.1%
HELICOPTERS	38	4.4%	5.6%
ELECTRONICS EUROPE	89	8.5%	4.7%
LEONARDO DRS	31	5.8%	-38.0%
AIRCRAFT	53	9.5%	+3.9%
AEROSTRUCTURES	-40	-26.8%	+13.0%
STRATEGIC JVs AND HENSOLDT	-14		n.m.
CORPORATE & OTHER	-52
1Q2023A*	105	3.5%	-13.2%

* Adjusted perimeter to exclude the contribution of Global Enterprise Solutions and including the contribution of Hensoldt in 1Q22 that was not included due to financial calendar disalignment

** Including ca. € 2 mln of negative forex

From EBITA to Net Result

Net Result in line with last year adjusted for GES, Hensoldt and strategic JVs

• Stepping up cash flow: 1Q 2023 FOCF at € 688 mln, up 36.3% vs 1Q 2022 (€ 1,080 mln)
• Continuing the strong deleveraging process with Net Debt down €1.1bn vs 1Q2022

*** Reflecting the performance of equity holdings

^*Excluding the contribution of Global Enterprise Solutions, Hensoldt and Strategic JVs

^** Excluding the contribution of Hensoldt and Strategic JVs

Stepping up cash flow generation and disciplined financial strategy leading to Investment Grade

MOODY'S UPGRADED LEONARDO TO INVESTMENT GRADE

• On 3 May, 2023 Moody's upgraded Leonardo to Baa3, outlook stable
• The Investment Grade upgrade reflects
• Leonardo's strong execution through the pandemic
• Solid growth prospects for the Defence business
• Track record of material deleveraging with a commitment to further delever the balance sheet, whilst maintaining a stable shareholder remuneration and strong growth prospects

2023 Guidance Confirmed

	2022A	2023E1
ORDERS (€bn)	17.3	ca.17
REVENUES (€bn)	14.7	15-15.6
EBITA (€mln)	1,218	1,260-1,310
FOCF (€mln)	539	ca. 600
NET DEBT (€bn)	3.0	ca. 2.62

• Continued solid commercial momentum, with book-to-bill>1x
• Successfully navigating inflationary pressures
• Continued improvement in FOCF and focus on deleveraging

2023 exchange rate assumptions: € / USD = 1.10 and € / GBP = 0.87

1) Based on the current assessment of the effects deriving from the geopolitical situation on the supply chain and the global economy and

assuming no additional major deterioration

2) Assuming dividend payment od € 0.14 p.s. and new leases for ca 100 mln

© 2022 Leonardo - Società per azioni

Agenda

• Q&A

• Sector results

• Appendix

• Key messages Alessandro Profumo, Chief Executive Officer

• Financial review Alessandra Genco, Chief Financial Officer

Q&A

© 2022 Leonardo - Società per azioni

Agenda

• Q&A

• Sector results

• Appendix

• Key messages Alessandro Profumo, Chief Executive Officer

• Financial review Alessandra Genco, Chief Financial Officer

Helicopters

Confirmed strong performance

• Strong level of order intake expected both in civil and governmental; confirming increasing revenues and deliveries
• Good level of profitability supported by structured actions to offset inflationary pressure

(*) Based on the current assessment of the effects deriving from the geopolitical situation on the supply chain and the global economy and assuming no additional major deterioration

Electronics

Strong commercial performance

2023 Outlook(**)

• Growing volumes and profitability driven by improving execution of backlog and investments
• Market dynamics still reflecting inflationary pressure and supply chain

* Avg. exchange rate €/\$ @ 1.12 in 1Q22; Avg. exchange rate €/\$ @ 1.07 in 1Q23

** Based on the current assessment of the effects deriving from the geopolitical situation on the supply chain and the global economy and assuming no additional major deterioration

		1Q23 Results 1Q 2022 1Q 2023 % Change 781 731 -6.4% 571 559 -2.1% 52 54 3.8% 9.1% 9.7% 0.6
	€ mln
Orders
Revenues
EBITA
RoS				p.p.

2023 Outlook(*)

• Growing export market for proprietary platforms
• Confirming strong contribution from Fighter business lines (F-35 and Eurofighter)

* Based on the current assessment of the effects deriving from the geopolitical situation on the supply chain and the global economy and assuming no additional major deterioration

Aerostructures and ATR

Recovery on track

2018-2022 Results

		1Q23 Results
Aerostructures
	€ mln	1Q 2022	1Q 2023	% Change
Orders		94	126	34.0%
Revenues		123	151	22.8%
EBITA		-46	-40	13.0%
RoS		-37.4%	-26.5	10.9 p.p.
ATR
	€ mln	1Q 2022	1Q 2023	% Change
EBITA		-10	-16	-60%

2023 Outlook(*)

• Increasing volume driven by increasing production rate by Airbus and Boeing 787
• Better profitability driven by higher asset utilisation
• GIE-ATR expected increase deliveries

* Based on the current assessment of the effects deriving from the geopolitical situation on the supply chain and the global economy and assuming no additional major deterioration

Space

Manufacturing slowdown and confirmed solid performance of Satellite services

2023 Outlook(*)

• Growing volumes driven by solid and increasing backlog
• Satellite business confirmed strong fundamentals in Europe and Latin America with top line and EBITA increase

* Based on the current assessment of the effects deriving from the geopolitical situation on the supply chain and the global economy and assuming no additional major deterioration

© 2022 Leonardo - Società per azioni

• Q&A

Agenda

• Sector results
• Appendix

• Key messages Alessandro Profumo, Chief Executive Officer

• Financial review Alessandra Genco, Chief Financial Officer

1Q 2023 Results

Group Performance

€ mln	1Q 2022	1Q 2023	% Change	FY 2022
New Orders	3,789	4,868	28.5%	17,266
Backlog	36,278	39.126	7.9%	37,506
Revenues	3,006	3,034	0.9%	14,713
EBITA	132	105	-20.5%	1,218
RoS	4.4%	3.5%	-0.9 p.p.	8.3%
EBIT	123	93	-24.4%	961
EBIT Margin	4.1%	3.1%	-1.0 p.p.	6.5%
Net result before extraordinary transactions	74	40	-45.9%	697
Net result	74	40	-45.9%	932
EPS (€ cents)	0.129	0.063	95.5%	1.623
FOCF	-1,080	-688	36.3%	539
Group Net Debt	4,788	3,699	-22,7%	3,016
Headcount	50,106	51,627	3.0%	51,392

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

Solid Group liquidity ensures adequate financial flexibility

• Available credit lines
• ESG Credit Line signed in October 2021 equal to € 2.4 bn
• Existing unconfirmed credit lines equal to € 0.9 bn
• Commercial Paper, signed in August 2022, equal to € 1.0 bn
• New «Sustainability-Linked» EIB loan equal to € 0.3 bn

together with the Revolving Credit Facility signed in November 2022 by Leonardo DRS, following the merger with RADA, available for \$ 0.05bn (nominal value \$ 0.3 bn) and cash in-hands ensure a Group's liquidity of approx. € 5.7bn

Balanced debt maturity profile

		CREDIT RATING

	As of today	Before last review	Date of review
Moody's	Baa3 / Stable Outlook	Ba1 / Positive Outlook	May 2023
S&P	BB+ / Positive Outlook	BB+ / Stable Outlook	May 2022
Fitch	BBB- / Stable Outlook	BBB- / Negative Outlook	January 2022

Covenants FY2022

	FY2022A Post IFRS 16		FY2022A Post IFRS 16
EBITDA*	€ 1,671 mln	Group Net Debt	€ 3,016 mln
Net Interest	€ 104 mln	Leasing (IFRS 16)	- € 570 mln
		Financial Debt to MBDA	- € 713 mln
		Group Net Debt for Covenant	€ 1,733 mln
		EBITDA*	€ 1,671 mln
EBITDA / Net Interest	16.1	Group Net Debt / EBITDA	1.0
THRESHOLD	> 3.25	THRESHOLD	< 3.75

* EBITDA net of depreciation of rights of use

© 2022 Leonardo - Società per azioni

1Q23 Results

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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CONTACTS

Head of Investor Relations and Credit Rating Agencies

+39 06 32473.697

valeria.ricciotti@leonardo.com

Leonardo Investor Relations and Credit Rating Agencies

+39 06 32473.512

ir@leonardo.com