Leonardo (LDO) Investor Update summary

Strategic vision, transformation, and portfolio evolution

• Transitioned from a fragmented conglomerate to a unified multinational with a five-year vision, focusing on integrated, multi-domain solutions across air, land, naval, space, and cyber domains.

• Achieved significant international expansion, with 80% of products exported and a 28% increase in global footprint.

• Portfolio now includes manned/unmanned systems, advanced electronics, cybersecurity, and digital capabilities, with strong dual-use and multi-domain focus.

• Accelerated digitalization, high-performance computing, AI integration, and cost optimization have driven efficiency and innovation.

• Strategic partnerships, M&A, and portfolio rationalization have strengthened competitiveness and completed the offering.

Michelangelo Dome and open architecture

• Michelangelo Dome is an open-architecture, AI-enabled, cyber-resilient air defense system enabling interoperability across platforms and countries, targeting both traditional and hybrid threats.

• First deployment underway in Ukraine, with broader rollout and NATO trials planned through 2027-2029.

• Revenue model is service-oriented, focusing on continuous updates, cybersecurity, and integration.

• Estimated EUR 6 billion in orders from Michelangelo by 2030, with EUR 3.5 billion in related revenues, and a long-term upside of EUR 21 billion over the next decade.

• Open architecture is designed for compatibility and adaptability to evolving threats.

Financial guidance and capital allocation

• Orders expected to reach EUR 142 billion cumulatively by 2030, with annual order intake targeting EUR 32 billion (CAGR 6.1%).

• Revenue target of EUR 30 billion by 2030 (CAGR 9%), with cumulative revenues of EUR 126 billion.

• EBITA to more than double to EUR 3.59 billion by 2030 (CAGR 15.5%), with margins rising to 12%.

• Free operating cash flow projected to double, reaching EUR 2.06 billion in 2030, with cash conversion above 70%.

• Dividend payout ratio to be maintained at 30-40%, with a 46% CAGR in dividends from 2022-2026 and a new per-share dividend of EUR 0.63.