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Outlook

The new 2017–2021 Industrial Plan forecasts progressive growth of the Group, based on a more effective focus on markets – to be achieved through a unified and integrated presence and more competitive offerings – and a growth, both organic and external, in its core business areas.

These initiatives will be accompanied by additional strong actions aimed to improve industrial efficiency, through a continuous improvement in Leonardo key industrial processes (manufacturing, engineering and supply chain), with increasing efficiency and effectiveness.

In 2017 Leonardo forecasts:

  • revenues in line with 2016, confirming that the Group, after the disposal of its non-core activities, is increasingly focused on businesses able to ensure adequate levels of profitability and cash generation;
  • further progress in profitability, mainly driven by efficiency actions and by the continuous improvement of the industrial performance in Electronics, Defence & Security Systems and Aeronautics, still supported by the strong profitability of Helicopters;
  • a confirmation of its ability to generate cash, as already highlighted in 2016, driven by increasing operating profits combined with careful management of working capital and constant selectivity in investments. 2017 FOCF also includes the net financial impact from the EFA Kuwait contract which, although in 2016 was higher than the original forecast, is forecasted to remain, on a 2016 – 2017 cumulative basis, in line with expectations.

The FY 2017 guidance are summarised below:

 2016 figuresOutlook 2017 (*)
New Orders (€bil.)20.012.0 – 12.5
Revenues (€bil.)12.0ca. 12
EBITA (€bil.)1,2521,250 – 1,300
FOCF ((€bil.)706500 – 600
Group net debt (€bil.)2.8ca. 2.5
 

(*) Exchange rate assumptions: €/USD 1.15 and €/GBP 0.85.