A worldwide player in airspace, defence and security. With a wealth of knowledge and technologies. Even the accounts have improved considerably under Mauro Moretti’s leadership

Mauro Moretti

Mauro Moretti

Finmeccanica possesses an extraordinary wealth of knowledge, technology and productivity to be refocused, reorganised and expanded. This process is well underway. It’s been two years since Ceo, Mauro Moretti, former Ceo of the Italian State Railways, arrived to chart a new course in the company’s journey. The results of the first nine months of 2015 are unequivocal and fully correspond to the goals of the 2015-2019 industrial plan.

During this period, Finmeccanica has increased Ebitda by 45% and almost doubled its Ebit (84%). This has generated a positive net result of € 160 million, compared to a loss of € 24 million in 2014. This outcome appears even more remarkable, going from the € 54 million lost in 2014 to a profit of € 150 million this year, excluding the profit of the transferred assets (the transport sector was sold to Hitachi on 2 November 2015).

Moretti’s attention has focused on rationalising management, cutting off deadwood, achieving objectives, and reorganising the business portfolio, which had previously evolved too randomly. The transfer to Hitachi of Ansaldo Sts shares (40% of the company’s share capital) and AnsaldoBreda in the rolling stock segment –excluding less relevant revamping activities– has led to an overall gain of € 790 million and an equal reduction in the group’s net debt. Moretti aims at bringing this down to € 3 billion by 2017. The streamlining the business portfolio has also seen BredaMenarinibus being sold to Industria Italiana Autobus and the beginning of Fata’s transfer to the Danieli Group. The result is that these companies are introduced into more homogeneous and specific contexts. Now Finmeccanica can concentrate on its core businesses, i.e. airspace, defence and security.

On a strictly operational level, Moretti has divided the company into divisions, thereby making its governance more effective and improving its industrial efficiency. To this end, Oto Melara S.p.A and Whitehead Sistemi Subacquei S.p.A have been merged into Finmeccanica, while Alenia Aermacchi, AgustaWestland and Selex Es were partially spun off to Finmeccanica S.p.A. This has created the legal ground for completing Finmeccanica’s transformation from a holding company managing various legally separate businesses into a single company that can combine its industrial profiles with the management and control of its own activities, thanks to this divisionalisation.

From 1st January 2016, Finmeccanica is a single company organised into four sectors and seven divisions. The stock markets are responding positively to this decision, and rating agencies have upgraded Finmeccanica’s outlook to stable. The company’s credit rating has also improved, thanks to the renegotiation of a 5-year revolving credit facility (expiring in July 2020), which will reduce margins considerably and have a positive impact on financial charges.