Press News

Higlights from Finmeccanica's Press Conferences

Space Sector Press Conference (Telespazio and ASI)

July 16, 2008 - 11.00 a.m.

• Telespazio and ASI have formed the company E-GEOS, a joint venture that will sell the products of the Cosmo-SkyMed earth observation satellite system on the international market.
• Telespazio aims to become a global leader in the sector of geospatial information, with an integrated range of application solutions, content and services, based on synthetic aperture radar (SAR) data and very high resolution (VHR) optical data.
• Once the assets have been transferred into E-GEOS, Telespazio will own a stake of 75-80% in the new company, while ASI will hold 20-25%. Once fully operational, the company is expected to generate revenues of 60-70 million per year in the next 4-5 years.
• I will be happy if we can use E-GEOS revenues to make a contribution to Cosmo 2, the new satellite constellation planned to replace the Cosmo-SkyMed constellation from 2015 onwards.

Defence Electronics Sector Press Conference

July 16, 2008 - 11.00 a.m.

• With the imminent acquisition of DRS, our opportunities in the field of defence and security electronics will expand significantly.
• The global defence and security electronics market is expected to grow at an average rate of 6% a year between now and 2016, when it will be worth around USD 270 billion.
• Selex Sistemi Integrati aims to generate revenues of 1.3 billion by 2010, and an EBIT margin of more than 10%.

• The TETRA project has now become a reality, but to bring it to completion and create a national network of protected mobile communications for the security forces, more funds will be needed.
• We are currently completing the network in Campania, and have also made progress in Basilicata and Calabria, the other two regions that have launched the project. We are also concluding the project for the security network in Sardinia and the La Maddalena area, in view of the 2009 G8 meeting.
• We are looking to obtain funding for the other regions, since it would be strange if the new protected digital network stopped at the Garigliano river and were not extended into the north.

Aeronautics Sector Press Conference

July 16, 2008 - 10.00 a.m.

• Alenia Aeronautica confirms its goal of doubling its revenues between 2006 and 2010, to reach a total of around EUR 3.8 billion. In 2007 the figure increased by 21%.
• The company is basing its forecasts on: high demand for fighter aircraft, with its participation in the Eurofighter programme (around 350 sold in 15 years); the C-27J aircraft (400 sold in 20 years); the Aermacchi M346 trainer aircraft (6-700 in 15 years); the production of 80 ATR aircraft per year by 2009; and the 300 orders (increasing to 400 at end-2009) from Boeing for the fuselage section of the new B787 Dreamliner.
• As regards the talks with Boeing for the assembling of the C-27J in the US, “we are keeping all our options open. One possibility is a joint venture with Boeing. We will make our decision shortly, as we are keen to reach a solution. If an agreement is not reached, there are other possibilities, and we can leverage our excellent relationship with L3”.
• According to Giuseppe Giordo, CEO of Alenia North America, there is a “70% likelihood” of reaching an agreement with Boeing.

Helicopter Sector Press Conference

July 15, 2008 - 11.00 a.m.

• The value of the company’s order backlog is set to increase by EUR 1 billion a year, while revenues will rise to EUR 3.7 billion in 2010 (from EUR 2.98 billion in 2007): these estimates allow the company to view with more confidence a forecast drop in the EBIT margin owing to the different order mix expected. The EBIT margin is expected to fall, from 12.5% in 2007 to over 10% in 2010, but the margins will however be higher than those of other companies in the sector.
• AgustaWestland is pushing ahead with projects to expand in Russia, while it is aiming to strengthen its presence on various international markets. It expects the Olympics in China to have a significant impact, as its helicopters will be the only ones to fly in connection with the organisation of the games
• AgustaWestland is looking at the “very interesting market” set to develop in China after the Olympics, particularly in the hinterland, where the need to purchase helicopters was further highlighted by the difficulties experienced in the wake of the recent earthquake.
• The company also has development projects in Russia, North America, the Middle East and in India where it is looking for a partner.
• AgustaWestland is also confident about the future of the Future Lynx programme to supply helicopters to the UK’s armed forces, worth GBP 1 billion
• The company has signed an agreement with Russian group Oboronprom to assemble the AW139, a medium twin-engined helicopter that can transport up to 15 passengers, in Russia. This will allow AgustaWestland to meet the growing demand for the AW139, the best-selling helicopter in its category, and to further expand its presence on the Russian market and that of CIS countries

Finmeccanica Press Conference

July 14, 2008 - 11.00 a.m.

• For Finmeccanica 2008 will be the year in which we made a leap forward in quality.
• The acquisition of DRS Technologies is extremely significant for us both in terms of the investment required as well as in its objective: to become a prime contractor to the US defence industry.
• The DRS transaction has not yet been completed, as we are waiting for clearance from various bodies. However, we are confident that it will be concluded successfully.
• Finmeccanica has today a solid position, as a truly international Group, with more than 150 locations overseas, of which more than a third are production facilities.
• In 2007, Group revenues totalled 13.4 billion euro (+8% compared to 2006), while EBIT exceeded 1 billion euro (+19%), with a margin of 8.1%. Adding the pro-forma revenues of DRS, the total for Finmeccanica comes to 15.7 billion euro.
• Investment in research and development over the past few years has remained at between 14% and 16% of revenues, and in absolute terms Finmeccanica has invested around 9 billion euro in research since 2002.
• A new phase is beginning, one in which Finmeccanica must "become what it truly is".
• The road for Finmeccanica has been mapped out: now we just need to push ahead, without hesitation and with the determination that has brought us this far.
  
  

Finmeccanica Press Conference

July 14, 2008 - 11.00 a.m.

• Finmeccanica is developing two levels of integration, which must be completed quickly and in parallel: integration within the sectors in which Finmeccanica has made significant acquisitions, and integration at group level.
• The first level regards the helicopters business, where the integration of AgustaWestland is almost complete.
• The second level directly concerns Finmeccanica's corporate side, which plays an essential role in coordinating the operating companies both in relation to R&D and staff training as well as in preparing integrated offers, opening up new markets, protecting our position in existing markets and interacting with institutional clients.
• By developing our business along these three fundamental lines - integration, internationalisation and value creation - we are convinced that we can "become who we truly are" and continue to be leaders.