Industrial Plan 2017-2021

Delivering On Our Promises

Key Achievements 2013 - 2016


2014-2016 Industrial Plan results

Results achieved over the past 3 years confirm the effectiveness of the choices on which the Industrial Plan presented in January 2015 is based. Despite the challenging market environment, the results achieved in many cases exceeded both expectations and guidance.

As expected, over 2014-2016, actions aimed at restructuring the business and rationalising governance to restore Group’s economic and financial solidity have been successfully completed. Those actions include:


  • Focus on the core Aerospace, Defence and Security business, with the disposal of non-core activities
  • Rationalization of product portfolio
  • Strengthening the order book with increased attention on the quality of orders
  • Definition and implementation of the new organizational and operating model "One Company" and launch of the new “Leonardo” brand


Consequently, the comparison between 2016 preliminary results with 2014 clearly shows:

  • Material improvement in operating profitability (EBITA +28% and RoS higher than 10%) with the marked growth of productivity ratios (EBITA per capita +35%), that, together with the material reduction in volatility and impact of the “below the line” items, led to a 2016 net result before extraordinary transactions now above EUR 500 million. This was more than 30 times 2014 figure
  • Marked improvement in financial strength due to a significant reduction in net debt (from ca. EUR 4 billion to ca. EUR 2.8 billion), supported by improving cash flow generation and a careful financial strategy, combined with a reduction of invested capital. The Debt-to-Equity ratio therefore reduced from 1.0 to 0.6
  • Ability to continuously generate positive and progressively growing cash flows (from EUR 65 million to ca. EUR 700 million) as a result of improved economic performance, stricter selection and focus of investments, based on economic and financial returns, as well as increased focus on working capital management



2017-2021 Industrial Plan medium-term targets: growth and development

Building on those solid industrial, economic and financial foundation from the turnaround phase, in continuity and consistent with what has already been done, the 2017-2021 Industrial Plan will focus on the development and growth opportunities of the "One Company”, according to the following guidelines:

  • Continuation and reinforcement of actions aimed at: improving industrial efficiency through the exploitation of technological commonalities and identification of cross-divisional centers of excellence, unification of the ICT systems and increasingly centralized procurement policy
  • Focus on customers including:
    • optimizing presence in priority geographical areas with a unified and coordinated presence
    • proposing more competitive integrated and transversal offerings designed to fulfill requirements effectively, leveraging on each business contribution (i.e. focusing on service and through-life solutions), also to pursue customer loyalty
  • Organic growth of the business through multi-purpose developments in areas of excellence
  • External growth of the core business through a structured path of partnerships and acquisitions to ensure development of the Group in the medium-long term


The Plan envisages the achievement of the following targets over the next 5 years: 

  • Book to bill solidly at ca. 1
  • 2017-2021 Revenues CAGR of 3%-5%, supported by new order intake - notwithstanding challenges in some key markets – and a strong order backlog, with significant orders secured in Aeronautics and Electronics, Defence and Security Systems expected to contribute to revenues by 2018. Therefore, 2017 is expected to be a period of stabilization and consolidation with revenues broadly in line with 2016, reflecting also changes in perimeter aimed at the focusing on core business to ensure adequate profitability and cash flow generation
  • Continuous improvement in RoS, also with higher volumes, driven by continued focus on efficiency. RoS is expected to be at 11% by the mid-point of the plan
  • Preservation of a solid and flexible financial structure, resulting from the step change achieved in terms of cash flow generation improvement and material reduction in debt. We remain committed to a disciplined financial strategy, also with the objective of going back to an “investment grade” credit rating, while pursuing a better balance between reducing leverage, sustaining organic and external investment in the business and adequate returns to shareholders


These Industrial Plan targets and actions are to deliver are profitable growth and long-term business sustainability. We are continuing to build on our solid and credible journey to create value for of all the stakeholders of the company. Employees will be able to count on a solid and sustainable company. The Italian industry, which has recovered a solid and reliable industrial asset able to compete in international markets and to be an engine for development of wealth and valuable competences. After a period of strong share price performance through the first phase of the Industrial plan we remain focused on continuing to deliver strong returns for shareholders into the future.