Leonardo (company) explained

Leonardo S.p.A.
Former Name:Finmeccanica (1948–2016)
Leonardo-Finmeccanica (2016)
Type:Public
Location:Rome, Italy
Area Served:Worldwide
Products:Aeronautics, aircraft, helicopters, electronics, defence systems, remote controlled weapon stations, turrets, autocannons, rotary cannons, naval artillery, missiles, torpedoes, unmanned ground vehicles, unmanned underwater vehicles
Revenue: (2022)
Net Income: €932 million (2022)
Assets: €28.38 billion (2021)
Equity: €6.46 billion (2021)
Num Employees:50,413 (2021)
Footnotes:[1]

Leonardo S.p.A., formerly Leonardo-Finmeccanica and originally Finmeccanica, is an Italian multinational company specialising in aerospace, defence and security. Headquartered in Rome, Italy, the company has 180 sites worldwide.[2] It is the 12th largest defence contractor in the world based on 2020 revenues.[3] The company is partially owned by the Italian government, which holds 30.2% of the company's shares and is its largest shareholder.

On 1 January 2016, Leonardo-Finmeccanica became a single industrial company by integrating the activities of its subsidiaries AgustaWestland, Alenia Aermacchi, DRS Technologies, Selex ES, OTO Melara and WASS. The company is organised into five divisions (Helicopters, Aircraft, Aerostructures, Electronics, Cybersecurity). It is also the parent company and corporate centre for the subsidiaries and joint ventures Telespazio, Thales Alenia Space, MBDA and ATR. Leonardo is listed on the Borsa Italiana and is a constituent of the FTSE MIB and Dow Jones Sustainability Indices.

, the company was known by the transitional name of Leonardo-Finmeccanica, as part of the restructuring process of the company carried out by CEO Mauro Moretti from the beginning of his mandate in 2014. The company changed its name to Leonardo S.p.A. on 1 January 2017, after the Italian inventor Leonardo da Vinci.[4]

History

Foundation

Società Finanziaria Meccanica, "Finmeccanica", was established in 1948 as the mechanical engineering subholding of the state-owned Istituto per la Ricostruzione Industriale (IRI). Finmeccanica has held for years some historic Italian enterprises, as Alfa Romeo (automobiles), Aeritalia (aerospace) and Ansaldo (engineering).

From the 1960s to the 1980s Italy's defence and aerospace industry was split into state-holding entities: owned the helicopters manufacturer Agusta, the defence company Oto Melara and the electronic enterprise Officine Galileo. STET (another IRI subsidiary) held Selenia, Elsag and SGS Thomson, all electronic enterprises with specializations in security and defense. In 1989, an internal IRI reorganization process brought STET electronic enterprises to Finmeccanica, and the Aeritalia-Selenia merger constituted its aerospace subsidiary Alenia.

1990s

In 1992 EFIM was wound up because of its troubled financial situation; and Agusta, Oto Melara, Officine Galileo and Breda passed to Finmeccanica, which became one of the main Italian industrial groups. Finmeccanica, which was previously fully state owned by IRI, became partly privatized in 1993, when it was listed in the Milan Borsa Italiana stock exchange.

In 1992 Finmeccanica's Agusta became a 32% partner in NHIndustries, the prime contractor for the NH90 helicopter, along with Eurocopter (62.5%) and Fokker (5.5%).

2000s

In July 2000 Finmeccanica and the British GKN agreed to merge their respective helicopter subsidiaries (Agusta and GKN-Westland Helicopters) to form AgustaWestland. In December 2001, the missile business of Alenia Marconi Systems (AMS), a joint Finmeccanica/BAE Systems company, was merged with other European missile manufacturers to form MBDA, which became the world's second largest missile manufacturer.[5] In July 2003 Finmeccanica and BAE Systems announced their intention to set up three joint venture companies, to be collectively known as Eurosystems. These companies would have pooled the avionics, C4ISTAR and communications businesses of the two companies.[6]

In March 2007, BAE Systems sold its 25% share to Finmeccanica for €400 million.[7] In January 2013 the company merged with Finmeccanica's other defence electronics companies, SELEX Elsag and SELEX Sistemi Integrati, to become Selex ES. In May 2008 Finmeccanica announced its intention to purchase the U.S. defense contractor DRS Technologies for nearly $5.2 billion. In October 2008 the sale of DRS Technologies was finalized.[8]

2010s

During 2011–2013, Finmeccanica emails were published by WikiLeaks and Finmeccanica was subject to judicial inquiries on several fronts and management changes.

According to Finmeccanica emails published in the Syria Files release by WikiLeaks on 5 July 2012, Finmeccanica increased its sale of mobile communications equipment to Syrian authorities during 2011, delivering 500 of these to the Damascus suburb Muadamia in May 2011, after the Syrian uprising had started, and sending engineers to Damascus in February 2012 to provide training in using the communications equipment in helicopter terminals, while the uprising continued. Finmeccanica stated that the equipment sales were legal, they occurred "before the outbreak of conflict inside Syria", and the equipment "was designed for use by emergency responders" for civilian use only.

On 12 February 2013, the chief executive, Giuseppe Orsi, was arrested on corruption charges. Prosecutors alleged that he paid bribes to ensure the sale of 12 helicopters to the Indian government, when he was head of the group's AgustaWestland unit.[9] [10]

In July 2013, the Letta government appointed former police chief Giovanni De Gennaro as Chairman of Finmeccanica. In December 2013 Finmeccanica sold 39.55% of its share capital in Ansaldo Energia to Fondo Strategico Italiano.

In the first half of 2014, Finmeccanica's new Chief Executive Officer and General Manager Mauro Moretti started a significant process of change for the Group, both in terms of strategic choices and organizational structure. The goal was to create a more cohesive and efficient group in which all processes (research, marketing and sales, engineering, procurement, strategies and governance) are centralized and integrated and can interact each other.[11] This encompasses the 100% owned companies of the core aerospace and defence business (AgustaWestland, Alenia Aermacchi, Oto Melara, Selex ES and WASS) being transformed into seven new Finmeccanica divisions. The current holding company will then become an operating company based on seven major business areas, maintaining its parent company and corporate centre function for the Group companies excluded from the model (DRS Technologies, Telespazio, Thales Alenia Space, MBDA and ATR).

At the end of 2014, Finmeccanica transferred its stake in BredaMenarinibus to the newco Industria Italiana Autobus (20% Finmeccanica and 80% King Long), thereby taking a further step in the Group's portfolio rationalization process.

In 2015, Hitachi signed a binding agreement with Finmeccanica for Hitachi's acquisition of the AnsaldoBreda business, excluding some revamping activities and residual contracts, and of the entire Finmeccanica stake in the share capital of Ansaldo STS, approximately 40% of the total capital.

FATA, another subsidiary of the Finmeccanica Group since 2004 that was not part of the core business, was sold in 2015 to the Gruppo Danieli, dealing in the production of steel plants.

On 1 January 2016, Finmeccanica became a single integrated industrial entity, that absorbed the activities of AgustaWestland, Alenia Aermacchi, Selex ES, OTO Melara and WASS.

From Finmeccanica to Leonardo

A company rebranding operation led by Mauro Moretti began in March 2016, with a proposal to change the company name. From 1 January 2017 Finmeccanica officially became Leonardo, a name inspired by the Italian savant Leonardo da Vinci.[12] [13] [14] In March 2017 the Italian Treasury proposed that the veteran banker Alessandro Profumo replace Mauro Moretti as CEO of Leonardo.[15] In May 2017 the Board appointed Alessandro Profumo to the role.[16]

On 10 May 2023 the Board of Directors appointed Mr. Roberto Cingolani to the position of Chief Executive Officer and General Manager, Mr. Stefano Pontecorvo to the role of Chairman, Mr. Lorenzo Mariani to the role of Co-General Manager.[17]

Organization

Aeronautics
  • Leonardo designs, develops, produces, maintains and upgrades commercial, military and military training aircraft, as well as producing aerostructures. The company is part of a network of joint ventures and product partnerships, including such programs as the Global Combat Air Programme (with BAE Systems and Mitsubishi Heavy Industries) to build a 6th generation fighter, Eurofighter (with BAE Systems and Airbus Group) to build the supersonic multi-role Typhoon, and the ATR (with Airbus Group) to build the family of turboprop regional aircraft of the same name.
    Helicopters
  • Leonardo is active in the helicopter market, managing: development to production, pilot training and after sales support. Leonardo produces a range of helicopters for the commercial and defence markets, including all the main weight categories, from 1.8-tonne single-engined to 16-tonne three-engined helicopters.
  • The company launched its VIP helicopters and travel services under a related new name "Agusta" and unveiled the heliport called "Casa Agusta" at a formal ceremony at the Expo 2020 in Dubai.[18]
    Defence Electronics & Security
  • Leonardo develops and integrates systems for the air and sea traffic management and the control and protection of land and sea borders; it also develops secure communications networks for the management of infrastructure and systems. The services include the design and management of IT infrastructure and data processing for intelligence and cyber security. Leonardo is active in the design, development and production of naval artillery, armoured vehicles and underwater systems. In the Defence Electronics & Security sector, Leonardo operates through its US subsidiary DRS Technologies and the joint venture MBDA (37.5% BAE Systems, 37.5% Airbus Group and 25% Leonardo) that produces missiles and missile systems.
    Space
  • In the space sector, Leonardo is active mainly through joint ventures Telespazio (Leonardo 67% - Thales 33%) and Thales Alenia Space (Leonardo 33% - Thales 67%). Telespazio offers a wide range of skills and services from design and development of space systems, launch services management and in-orbit satellites to Earth observation services, integrated communications and satellite navigation and localisation. Thales Alenia Space is engaged in the design, integration, testing and implementation of space systems, for navigation, telecommunications, meteorology, environmental control, defence, scientific missions and Earth observation.

    Areas of business

    Leonardo is present worldwide in about 20 countries (42% in Italy and 58% abroad). Commercially, there are about 150 countries in the world that use products, systems and services supplied by Leonardo.

    Its production activities and its main industrial and commercial bases are located in Italy, the United Kingdom, Poland and the United States. Moreover, Leonardo has gained a significant presence in France and Germany, and is a partner for various international industrial collaborations.[19] [20] The company is an ITER supplier.

    In December 2021, Leonardo Electronics announced it would be building a semiconductor device fabrication facility in Oro Valley, Arizona with construction beginning in the first half of 2022.[21]

    Subsidiaries

    Joint ventures

    Others

    Shareholder structure

    As of March 2023, Leonardo's largest shareholder was the Italian Ministry of Economy and Finances with 30.20%.[22]

    Key budget items (2007–2022)[23]

    In million of €
    20072008200920102011201220132013*20142014**20152016[24] 2017[25] 2018[26] 20192020[27] 2021[28] [29] 2022[30]
    New Orders17,916 17,575 21,099 22,453 17,434 15,869 17,571 15,059 15,619 12,667 12,37119,951 11,59515,12414,10513,75414,30717,266
    Order backlog39,30442,93745,14348,66846,00544,90842,69736,83138,23429,38328,79334,798 33,57836,11836,51335,51635,53437,506
    Revenues13,42916,50418,17618,69517,31816,50416,03313,69014,66312,76412,99512,002 11,52712,24013,78413,41014,13514,713
    Ebita7.8%8.7%8.7%8.5%-2161,0069498781,0809801,2081,252 1,0661,1201,2519381,1231,218
    Net result before extraordinary transactionsndndndndndnd74(649)7015253545274421722241587697
    Net Result521621718557-2.306-79274742020527507 274510822243587932
    Group Net Debt1,1583,3833,0703,1333,4433,3823,3163,9023,9623,9623,2782,845 2,5792,3512,8473,3183,1223,016
    FOCF375469563443-35891(307)(220)(137)6530770653733624140209539
    Employees60,74873,39873,05675,19770,47467,40863,83556,28254,38054,38047,15645,63145,13446,46249,53049,88250,41351,392

    Source:

    See also

    Notes and References

    1. Web site: Annual Report 2021. Leonardo Co.. 24 March 2022. 2 May 2022. https://web.archive.org/web/20220502171622/https://www.leonardo.com/documents/15646808/16736384/Integrated+annual+report+2021.pdf/237514d8-e171-3e2f-c57d-c297f62c7320?t=1647598786765. live.
    2. Web site: Profile - Leonardo - Aerospace, Defence and Security . dead . https://web.archive.org/web/20190322162953/https://www.leonardocompany.com/en/chi-siamo-about-us/profilo-profile-chisiamo-aboutus-2 . 22 March 2019 . 16 March 2018 . www.leonardocompany.com.
    3. https://www.sipri.org/sites/default/files/2020-12/sipriinsight2012_mapping_the_international_presence_of_the_worlds_largest_arms_companies.pdf Top 100 Arms-Producing and Military Service Companies
    4. Web site: Official Press Release . Finmeccanica: shareholders' meeting approves the change of the company's name and the 2015 financial statements . Leonardocompany.com . 29 April 2016 . 16 June 2018 . https://web.archive.org/web/20180616103259/http://www.leonardocompany.com/en/-/cs-28042016 . live .
    5. News: 2001-12-21 . EADS, BAE and Finmeccanica Complete MBDA Merger . Defense Daily International . the new MBDA, the world's second largest missile manufacturer behind Raytheon.
    6. News: 3 June 2003 . BAE ties up £2.6bn Italian deal . BBC News . 13 September 2007 . 13 March 2007 . https://web.archive.org/web/20070313182258/http://news.bbc.co.uk/1/hi/business/3043328.stm . live .
    7. News: Parmalee . Patricia J. . 9 April 2007 . Selex Sale Sealed . Aviation Week and Space Technology . The McGraw-Hill Companies.
    8. News: 22 October 2008 . Finmeccanica completes $5.2B DRS buy . The Business Journal of Milwaukee.
    9. https://www.bbc.co.uk/news/business-21423829 Finmeccanica's Giuseppe Orsi held on corruption charges
    10. News: Emilio Parodi and Stephen Jewkes . 12 February 2013 . Finmeccanica head arrested over India bribe allegations . Reuters . 5 July 2021 . 19 July 2019 . https://web.archive.org/web/20190719085812/https://uk.reuters.com/article/uk-orsi-finmeccanica-idUKBRE91B09K20130212 . live .
    11. News: Finmeccanica, dal primo gennaio nasce la One Company . Repubblica.it . 25 July 2019 . 26 October 2022 . https://web.archive.org/web/20221026082119/https://www.repubblica.it/economia/finanza/2015/12/22/news/finmeccanica_one_company-129999234/ . live .
    12. Web site: Kington . Tom . 28 April 2016 . It's Official: Finmeccanica Is Now Leonardo . 1 May 2016 . Defense News.
    13. Web site: 28 April 2016 . Finmeccanica: Shareholders' Meeting approves the change of the Company's name and the 2015 Financial Statements . 29 April 2016 . Leonardo . 16 June 2018 . https://web.archive.org/web/20180616103259/http://www.leonardocompany.com/en/-/cs-28042016 . live .
    14. News: Ansa en News . Finmeccanica meeting approves new name, 'Leonardo' . 29 April 2016 . 1 June 2016 . https://web.archive.org/web/20160601041414/http://www.ansa.it/english/news/2016/04/28/-finmeccanica-meeting-approves-new-name-leonardo-_995b8ba5-2ad1-4a79-b9d4-13c8c04becd3.html . live .
    15. News: Italy proposes Profumo as new Leonardo CEO, confirms Eni, Enel chiefs . . 18 March 2017 . 24 March 2017 . 20 March 2023 . https://web.archive.org/web/20230320171150/https://www.reuters.com/article/italy-treasury-chiefexecutives-idUSL5N1GV0DR . live .
    16. Web site: LEONARDO: IL CONSIGLIO DI AMMINISTRAZIONE NOMINA ALESSANDRO PROFUMO AMMINISTRATORE DELEGATO . 17 May 2017 . 16 June 2018 . https://web.archive.org/web/20180616053856/http://www.leonardocompany.com/-/cs-28042016 . live .
    17. Web site: Leonardo: Il Consiglio di Amministrazione Nomina Roberto Cingolani Amministratore Delegato e Direttore Generale, Lorenzo Mariani Condirettore Generale e Conferisce Alcune Attribuzioni al Presidente Stefano Pontecorvo . 10 May 2023 . 16 May 2023 . https://web.archive.org/web/20230516220529/https://www.leonardo.com/it/press-release-detail/-/detail/09.05.2023-leonardo-the-board-of-directors-appoints-roberto-cingolani-as-chief-executive-officer-and-general-manager-lorenzo-mariani-as-co-general-manager-and-confers-certain-powers-on-chairman-stefano-pontecorvo/ . live .
    18. Web site: New brand VIP Augusta. 28 October 2021. 30 May 2024. https://web.archive.org/web/20240530044015/https://www.leonardo.com/en/press-release-detail/-/detail//02-10-2021-leonardo-launches-agusta-brand-as-the-height-of-sophistication-and-technology-for-the-vip-helicopter-sector?f=%252Fhome%2520https://www.thenationalnews.com/uae/expo-2020/2021/10/02/vips-keen-as-part-plane-part-helicopter-arrives-at-expo-2020-dubai/%2520https://verticalmag.com/press-releases/leonardo-announces-new-vip-helicopter-brand/. live.
    19. Web site: Leonardo in the world . Leonardo Company . 11 July 2017 . 5 July 2017 . https://web.archive.org/web/20170705015219/http://www.leonardocompany.com/en/finmeccanica-nel-mondo . live .
    20. Web site: Leonardo (ex Finmeccanica) . Il Sole 24 Ore . 11 July 2017 . 28 October 2018 . https://web.archive.org/web/20181028151542/https://argomenti.ilsole24ore.com/leonardo-finmeccanica.html?refresh_ce=1 . live .
    21. News: Brown . David M. . Leonardo Electronics US to Build Semiconductor Manufacturing Facility Near Tucson . ENRSouthwest . 2021-12-20 . 2021-12-21 . 21 December 2021 . https://web.archive.org/web/20211221172433/https://www.enr.com/articles/53314-leonardo-electronics-us-to-build-semiconductor-manufacturing-facility-near-tucson . live .
    22. Web site: Shareholders base . Leonardo S.p.A. . 15 December 2023 . 16 December 2023 . https://web.archive.org/web/20231216132824/https://www.leonardo.com/en/investors/stock-info/shareholders-base . live .
    23. Web site: Results and Reports 2007 - 2018 . Leonardo Company . 26 June 2019 . 30 May 2024 . https://web.archive.org/web/20240530044016/https://www.leonardo.com/en//investors/results-and-reports . live .
    24. Web site: Leonardo: the BoD proposes the distribution of a € 14 cent. dividend after six years . 23 March 2017 . 24 March 2017 . https://web.archive.org/web/20170324083827/http://www.leonardocompany.com/documents/63265270/80009687/ComLDO_FY2016_15_03_2017_ENG.pdf . live .
    25. Web site: L'Assemblea degli Azionisti di Leonardo approva il Bilancio 2017, il pagamento del dividendo pari a € 14 cent. per azione e nomina il nuovo Collegio Sindacale per il triennio 2018-2020 - DETTAGLIO - Leonardo - Aerospace, Defence and Security . 2018-07-06 . www.leonardocompany.com . it-IT . 6 July 2018 . https://web.archive.org/web/20180706104115/http://www.leonardocompany.com/-/assemblea-azionisti-shareholders-meeting-1 . live .
    26. Web site: 16 May 2019 . Leonardo's Shareholders' Meeting approves 2018 Financial Statements, the distribution of a € 0.14 dividend p.s. and the Remuneration Report . Leonardo Company . 26 June 2019 . 26 June 2019 . https://web.archive.org/web/20190626155657/https://www.leonardocompany.com/press-release-detail/-/detail/16-05-19-leonardo-s-shareholders-meeting . live .
    27. Web site: Leonardo: FY 2020 results confirm robust and resilient business performance, Orders at € 13.8 bn. Successful execution with positive FOCF at € 40 mln. Continued confidence in medium-long term core business fundamentals. 2021-03-12. www.leonardocompany.com. en-US. 9 March 2021. https://web.archive.org/web/20210309213547/https://www.leonardocompany.com/en/press-release-detail/-/detail/09-03-2021-leonardo-fy-2020-results-confirm-robust-and-resilient-business-performance. live.
    28. Web site: Leonardo's 2021 results. Profumo: "A solid and global company, the driving force behind technological development" . 2022-03-23 . www.leonardo.com . en-US . 23 March 2022 . https://web.archive.org/web/20220323113649/https://www.leonardo.com/en/focus-detail/-/detail/video-profumo-fy2021 . live .
    29. Web site: 2021FY Financial Results . 2022-03-23 . www.leonardo.com . en-US . 23 March 2022 . https://web.archive.org/web/20220323113649/https://www.leonardo.com/en/press-release-detail/-/detail/10-03-2022-leonardo-2021fy-financial-results . live .
    30. Leonardo Results and Report https://www.leonardo.com/en/investors/results-and-reports

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