For Leonardo, the watchwords of the industrial plan are "growth and investments". On the day of the shareholders' meeting, the managing director Alessandro Profumo, who has been at the helm of the national defense and aeronautics giant for a year, takes stock of the strategies and objectives in an interview with the German newspaper Handelsblatt, signed by Regina Krieger. “We are a very large company – says the manager – for Italy. In the world, however, in the defense sector we are among the top ten. We invoice only 15% in Italy. With the plan we want sustainable and very international growth. To achieve it we must have excellent products”.
To the journalist's request to go into the details of the plan to 2022, presented at the beginning of the year, Profumo replies that “: The keywords are growth and investments. One third of our turnover comes from helicopters – our best-known brand is Agusta Westland -, one third from aircraft – including participation in the Eurofighter and the F-35s fighter and then defense and security electronics with radar, infrared control and sensors, which as a sector is larger than the other two sectors. Together, the turnover is 11,7 billion euros. We have decided to complete investments in key products to achieve a 6% compound annual growth of revenues and orders”.
Again, commenting on the recently published quarterly report, the CEO underlines that "The results of the first quarter of 2018, which showed a 4% growth in revenues, were in line with expectations and, as expected, helicopters are showing signs of recovery. We are focused on executing the Business Plan: we approved the creation of «Leonardo International» with the aim of strengthening our presence on foreign markets, leveraging the «One Company» model, to guarantee a unified presence towards customers and of all stakeholders". As for investments, "we invest to complete some products that must be certified". An example? “The AW609, a very innovative aircraft that takes off vertically, like a helicopter, and then spins the propellers and is much faster than a helicopter. It can be great for emergency and medical services”.
Profumo attributes the negative reception given to the plan by the market and to the stock to the fact that "that in 2018 and 2019 the operating Free Cash Flow was lower than what the market expected". But he underlines how now the attitude of the operators is changing in a more favorable direction. Also during the meeting underway in Rome, the manager confirmed in front of the shareholders that "2018 is a year of consolidation to lay the foundations for sustainable growth" of Leonardo. And he confirmed the guidance lines for the year which forecast orders between 12,5 and 13 billion, revenues of 11,5-12 billion and an ebitda of 1,075-1,125 billion. Focusing on the various sectors, on helicopters, Profumo underlined how Leonardo is "a key player", there are "good signs" and "we are well positioned".
The interview with Handelsblatt was an opportunity to widen the horizon also to Italy and the political situation: “I'm optimistic. After a bit of trouble, a country will come out that will have a greater stabilization of political forces”. The manager sees no risk of a populist drift (“It seems difficult to me, to be honest. Italy is deeply rooted in the European system”) and acknowledges that “having political stability is important. But I think the most important thing for Italy is to return to a growth path greater than what has been achieved up to now. The first reforms made Italy take great steps forward. Today growth is positive, but we need to strengthen this trend”.
With regard to European defence, he sees the start of a consolidation of the sector: “Something is happening. But the ball lies in the field of national defense systems, the army, navy, air force of the different countries, not in that of the industry that produces and supplies. The EU has made great strides in the last two years. First as an experimental phase the so-called "preparatory action plan", then the fund for research for common products and services and finally Pesco, which involves 25 countries. A process has started, but it will be long”. And to have a European army "it will take years".
With regard to Brexit, "personally - he says - I hope that, once the divorce practices have been defined, Great Britain remains strongly close to the European system on the defense issue".
