Leonardo's Board of Directors approved the 2018-2022 Industrial Plan focused on long term sustainable growth of the Group. The Board of Directors examined the most recent estimates for the 2017 financial year (the definitive results will be examined for the approval of the Draft Annual Report on 14 March 2018) and approved 2018 Guidance.
Alessandro Profumo, CEO of Leonardo, commented "After a challenging 2017 in which we re-set expectations, we intend to deliver an Industrial Plan to return Leonardo to long-term sustainable growth. We face attractive market improvement, we are taking actions to leverage off a new commercial strategy, we enjoy a strong backlog, and we know we can invest well for growth in enhancing further core products and technologies.
“We have taken actions to address short-term issues in our world-class Helicopters business. 2018 is a consolidation year, and we are confident we are laying the seeds for a new phase of sustainable growth with steady improvement in our top line, profitability and cash flow, to create value for of all the stakeholders of the company”.
The outlook in Leonardo’s reference markets is positive, particularly in international export markets. This underpins confidence in the opportunity for Leonardo’s core businesses. Progress has been made in recent years building an effective ‘one company’ operating and organizational model. But acceleration is needed to ensure the sustainability of the business in the medium-long term, leveraging that One Company strategy, strengthening the business structure and enhancing the commercial approach.
The 2018-2022 Industrial Plan is therefore based on a transformation process that will be implemented in the following areas across the Group:
● Operating model Optimization (Leonardo 2.0) through a central organizational structure able to coordinate the businesses action and to share/generate best practices, a stronger identity and a more integrated resources management.
● A more effective commercial strategy and customer approach, through a strong boost to international business development, customer support process, cross-business customer support and an effective governance of technological innovation.
● Targeted Investments to support growth, focused on key products and technologies and the development of a new commercial network.
● A focus on cost control through a cost transformation program to support competitiveness of the company's products and reinvestment in growth.
● Product portfolio “Reshaping", including a focus on the allocation of capital to core businesses and new potential partnerships.