Leonardo S.p.A. — Investor Presentation 2024

May 7, 2024

1Q 2024 Results Presentation

Rome

7 May 2024

• Q&A
• Appendix

• Executing the Industrial Plan Roberto Cingolani, Chief Executive Officer and General Manager

• 1Q 2024 Results Alessandra Genco, Chief Financial Officer

Strong start to the year

• Good progress across all KPIs*

• Orders up 14.9% to € 5.8 bn, with book-to-bill of 1.6x
• Backlog at record level >€43 bn
• Revenues up 15.3% to € 3.7 bn
• EBITA up 67.0% to € 182 mln
• FOCF at € (621) mln improved by 11.5%
• FY 2024 Guidance confirmed
• Fully focussed on the execution of the Industrial Plan
  • Strengthen the core business
  • Pave the way to address the global security challenge
  • Three-level strategy: organic, saving, inorganic

* 2023 pro-forma figures include Telespazio fully consolidated

Fully focussed on Industrial Plan: Executing on the "arsenal" of initiatives

		Action area		Progress
#1	Strengthen the core business	Reorganization and Governance	• •	Defining competitive organization and governance Focus R&D, quit off-core activities
		Accelerating digitalization	• • • •	Developing strategy to leverage Generative AI and multidomain capabilities Introducing massive business intelligence and product digitalization AI and digital twin across product catalogue Digital Continuum initiative with Armed Forces
		Efficiency boost	• •	Saving Plan fully in action, on track to achieve FY target Create new revenue streams and generate cost efficiencies
#2	Pave the way to address the global security challenge	Strengthening international alliances	• • •	Crafting the new Space Division Working on the European Defence Framework MoU with Bell in the tiltrotor technology domain
		Accelerating definition of new scenarios in Aerostructures	• • •	Boeing slower increase in B787 production and deliveries Immediate actions to address short term production profile Accelerating assessment on further initiatives aimed at restructuring and redefine new scenarios

Acceleration on decarbonisation roadmap

New Near-Term targets

• Scope 1&2: -53% of Scope I and II CO2e emissions vs. 2020 (by 2030)
• Scope 3 - upstream: 58% of suppliers by emissions committed to SBTs (by 2028)
• Scope 3 - downstream: -52% of Scope III CO2e emissions/flight hour equivalent vs. 2020 (by 2030)

SBTi has classified Leonardo's Scope 1 and 2 targets as being adequate to keep global warming within the 1.5°C threshold

• Q&A
• Appendix

• Executing the Industrial Plan Roberto Cingolani, Chief Executive Officer and General Manager

• 1Q 2024 Results Alessandra Genco, Chief Financial Officer

1Q 2024 Highlights: Strong start to the year, with improvement across all KPIs

• Double digit order intake growth with book-to-bill of 1.6x, reflecting strong commercial momentum
• Record backlog >€43 bn
• Revenue growth reflecting strong delivery of backlog
• EBITA improvement driven by Electronics for Defence and Security and Helicopters
• Continuous improvement in cash absorption and net debt reduction

	1Q23	1Q23 pro forma	1Q24	Change**
New Orders, €bn	4.9	5.0	5.8	14.9%
Revenue, €bn	3.0	3.2	3.7	15.3%
EBITA, €M	105	109	182	67.0%
ROS, %	3.5%	3.4%	5.0%	1.6 p.p
FOCF, €M	-688	-702	-621	11.5%
Net debt, €bn	3.7	3.7	2.9 *	-20.7%

* Net debt includes the effect deriving from DRS stake monetization

** vs 1Q23 pro-forma

Helicopters: continuing positive momentum and increasing pace of deliveries

€mln	1Q23	1Q24	Change
Orders Revenues EBITA RoS (%)	1,889 880 38 4.3%	2,043 1,085 54 5.0%	8.2% 23.3% 42.1% 0.7 p.p.

Highlights

Deliveries by programme

• Continued strong order growth
• Dual-use helicopters driving revenue growth
• 31 helicopters delivered in 1Q24 versus 28 in 1Q23
• Customer Support and Training 42% of revenues

Defence Electronics: strong growth across all segments

Electronics Europe				DRS
€mln	1Q23	1Q24	Change	\$mln	1Q23	1Q24	Change
Orders Revenues EBITA * RoS (%)	1,624 1,046 89 8.5%	2,242 1,147 123 10.7%	38.1% 9.7% 38.2% 2.2p.p.		749 569 33 5.8%	815 688 55 8.0%	8.8% 20.9% 66.7% 2.2p.p.

Electronics Europe DRS

• Double-digit order growth, mainly driven by domestic government orders for the Navy and Army, leveraging on our integration capabilities
• Revenue growth driven by higher volumes across segments

• EBITA growth anchored to operating leverage and efficiency measures

• Strong orders, including production of new generation IT systems for the mission commands of the US Army

• Revenue growth mainly driven by naval power, ground systems integration, advanced sensing and network computing programs
• Profitability increase driven largely on higher volumes

* Including proportional net income of MBDA and Hensoldt

Aircraft: maintaining strong profitability

€mln	1Q23	1Q24	Change
Orders Revenues EBITA RoS (%)	731 559 54 9.7%	568 570 55 9.6%	-22.3% 2.0% 1.9% -0.1 p.p.

Highlights

• International commercial campaigns progressing in line
• Reduced order volume reflecting export order phasing, expected to be later in the year
• Revenues growth mainly driven by international cooperation programs
• Continued strong profitability, mainly driven by fighter business

Aerostructures & ATR: further progress in line with recovery plan

€mln	1Q23	1Q24	Change
Orders Revenues EBITA* RoS (%)	126 151 (56) (37.1%)	253 175 (43) (24.6%)	100,8% 15.9% 23.2% 12.5 p.p.

Highlights

• Order intake doubling year-on-year; reflecting continued air traffic recovery
• Revenue growth from increased activity across all business lines
• 18 fuselage sections and 12 stabilizers delivered for B787 (10 fuselages and 8 stabilizers in 1Q23)
• ATR: delivery of 4 (2 in 1Q23) as volume growth recovers

Space: building blocks in place for new focussed division

€mln	1Q23*	1Q24	Change
Orders Revenues EBITA ** RoS (%)	152 146 5 3.4%	102 160 (2) (1.3%)	-32.9% 9.6% -140% -4.7 p.p.

Highlights

• Telespazio's revenues growth mainly driven by Satellite Systems and Operations and Geo Information
• Telespazio's operating result in line with last year
• Year-on-year decline in EBITA reflects difficult market environment in manufacturing of commercial Telco satellites

* Pro-Forma for Telespazio consolidation ** Including proportional net income of TAS

EBITA growth driving stronger bottom line

From EBITA to Net Result, 1Q24

• Net Result benefitting from EBITA increase and the capital gain from the evaluation at fair value of Telespazio, due to its full consolidation
• Strong cash-ins in all the Divisions and working capital under control

FY 2024 Guidance confirmed

EMARKET SDIR
CERTIFIED

	FY 2023 (1)	Guidance 2024 (2)
Orders, €bn	18.7	ca.19.5
Revenue, €bn	16.0	ca. 16.8
EBITA, €M	1,326	ca. 1,440
FOCF, €M	652	ca. 770
Net debt, €bn	2.3	ca. 2.0 (3)

2024 exchange rate assumptions: € / USD = 1.15 and € / GBP = 0.89

(1) The values shown for the year 2023 enhance the full consolidation of Telespazio which will be operational from 2024

(2) 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 (3) Assuming the increased dividend payments from €0.14 to €0.28 per share, new leasing contracts, strategic investments, and other minor transactions.

• Q&A
• Appendix

• Executing the Industrial Plan Roberto Cingolani, Chief Executive Officer and General Manager

• 1Q 2024 Results Alessandra Genco, Chief Financial Officer

• Q&A
• Appendix

• Executing the Industrial Plan Roberto Cingolani, Chief Executive Officer and General Manager

• 1Q 2024 Results Alessandra Genco, Chief Financial Officer

1Q 2024 Results

€ M	1Q * 2023	1Q ** 2024	% Change	FY 2023
New Orders	4,868	5,753	18.2%	17,926
Backlog	39,126	43,153	10.3%	39,529
Revenues	3,034	3,664	20.8%	15,291
EBITA	105	182	73.3%	1,289
RoS	3.5%	5.0%	1.5 p.p.	8.4%
EBIT	93	168	80.6%	1,085
EBIT Margin Net result before extraordinary transactions	3.1% 40	4.6% 93	1.5p. p. 132.5%	7.1% 742
Discontinued operations	-	366		(47)
Net result	40	459	1,047%	695
EPS	0.063	0.777	1,133%	1,144
FOCF	(688)	(621)	9.7%	635
Group Net Debt	3,699	2,931	(20.8%)	2,323
Headcount	51,627	57,171	10.7%	53,566

* Reported ** Telespazio fully consolidated

Free Operating Cash-Flow (FOCF): this 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

As at 31 March 2024 Leonardo had sources of liquidity available for a total of about € 6.7 bn to meet the financing needs of the Group's, broken down as follows:

• Cash in-hands equal to € 1.8 bn
• ESG Revolving Credit Facility (RCF) equal to € 2.4 bn
• Commercial Paper Program equal to € 1.0 bn
• Existing unconfirmed credit lines equal to € 1.0 bn
• «Sustainability-Linked» EIB loan equal to € 0.3 bn
• Revolving Credit Facility signed by Leonardo DRS, following the merger with RADA, equal to € 0.2 bn

Balanced debt maturity profile

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

	FY2023A Post IFRS 16		FY2023A Post IFRS 16
EBITDA*	€ 1,790 M	Group Net Debt	€ 2,323 M
Net Interest	€ 95 M	Leasing (IFRS 16)	- € 610 M
		Financial Debt to MBDA	- € 1,070 M
		Group Net Debt for Covenant	€ 643 M
		EBITDA*	€ 1,790 M
EBITDA / Net Interest	18.8	Group Net Debt / EBITDA	0.40
THRESHOLD	>3.25	THRESHOLD	<3.75

* EBITDA net of depreciation of rights of use

Helicopters

* Avg. exchange rate €/\$ @ 1.05 in FY2022; Avg. exchange rate €/\$ @ 1.08 in FY2023

Revenues by segment

Electronics

2019-2023 Results

Electronics EU (€ mln) Leonardo DRS (\$ mln)

2019 2020 2021 2022 2023 Electronics EU (€ mln) Leonardo DRS (\$ mln)

1Q24 Results

2019-2023 Results

Revenues by segment

948

581

365

2019 2020 2021 2022 2023

420

644

1,125

819

24

Aerostructures and ATR

⁴⁴²⁴⁷⁵

Orders (€ mln) Revenues (€ mln) EBITA (€ mln) and Profitability

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.

CONTACTS
Valeria Ricciotti Head of Investor Relations and Credit Rating Agencies
+39 06 32473.697 valeria.ricciotti@leonardo.com
Investor Relations and Credit Rating Agencies +39 06 32473.512
ir@leonardo.com
leonardo.com

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