Market Environment

USA Contraction of Defense Budget due to the Covid crisis: from $ 160B in 2020 to $ 150B in 2021, up to $ 140B in 2022. Modest recovery expected starting from 2023Slowdown in defense spending also due raw materials price and Covid-19 Middle East - Africa China the main spender Significant Defense budgets in South Korea, India and Japan, with annual values> 50B $Australia Defense Budget <30B $In Southeast Asia, defense budgets ranging between $ 5B and $ 11B per year Asia Pacific CAGR 19-25~ -0.9% MENA~ -0.7% S-SA Germany: Defense Budget increased in 2021 (~ € 47B)France: Defense Budget increased in 2021 (~ € 39B)UK: Defense Budget up +17B £ over the next 4 yearsItaly: at 25.6B in 21-22 (1.4% GDP, still below NATO target) Europe CAGR 19-25~ +1.7% EUR USA: the main defense spender worldwide (> 700B $ in 2020)Return to growth expected from 2026 CAGR 19-25~ -0.5% NA~ +0.7% LA CAGR 19-25~ +4.1