Avio: FY 2021 Results

2021 Results in Line With Company Guidance Backlog Improved, Stable Cash Position

Highlights

• Successful return to flight for Vega: 3 missions in 6 months
• Net order backlog increasing for both production and development activities
• Maiden Flights for Vega C and Ariane 6 in 2022 first half and second half respectively
• Sharp increase in energy costs affecting profitability

Results

• Backlog: 877 M€ (+19% on December 31, 2020)
• Net Revenues: 312 M€ (-3% on 2020)
• Adjusted EBITDA: 38 M€ (-13% on 2020)
• Reported EBITDA: 30 M€ (-15% on 2020)
• Net Income: 9 M€ (-39% on 2020)
• Net Cash Position: 57 M€ (-9% on December 31, 2020)

Guidance 2022

• Net order backlog: 870-920 M€
• Revenues:330-350 M€
• EBITDA Reported: 24-30M€
• Net income: 5-10 M€

ROME--(BUSINESS WIRE)--During 2021 Vega performed 3 successful missions (VV18, VV19 and VV20) in around 6 months, re-establishing a track record in line with the top market performers, and bringing into orbit 2 satellites for the Pléiades Neo constellation of Airbus Defense & Space, the 3 sats Céres constellation, plus further smallsats that have flown in rideshare configuration. During 2021 also 3 successful Ariane 5 missions have been performed, including the December 2021 James Webb Space Telescope for NASA.

Thanks to the resumed Vega launch activities, between the end of 2021 and the beginning of 2022, Arianespace has also signed several launch contracts for both Vega and Vega C the Italian Space Agency, the French Space Agency and the European Space Agency.

Additionally, a new exploitation framework of the European Space Agency that will be approved by the ESA Ministerial Council in Paris in November 2022, foresees a minimum of 2 European institutional flights per year for Vega C and 4 European institutional flights per year for Ariane 6.

During 2021, the Italian Government has approved several projects in the space sector for the National Recovery and Resilience Plan (PNRR), some of which specifically aiming at the evolution of propulsion technologies and launcher products. The execution of such projects has been entrusted to ESA, and in particular the development of a methane high-thrust engine as well as of an in-flight demonstrator of small size launcher based on liquid propulsion. These projects represent for Avio an important target opportunity to extend the product portfolio and the technology capabilities, leveraging the current knowledge of Vega and the M10 liquid oxygen and methane engine.

In parallel, the PNRR has started the development of an Italian earth observation constellation, also entrusted to ESA for its project management, whose launch missions will be performed with the Vega launchers.

On the basis of the FY 2021 results, the Board of Director has proposed to the Shareholders’ Meeting to distribute a dividend of 4.5 M€ (Euro 0.178 per share).

“2021 represented a very difficult year for the enduring effects of the COVID-19 pandemic and for the development of the Russia-Ukraine crisis, which caused a sharp increase in energy prices towards the end of the year.” stated Giulio Ranzo, CEO of Avio. “In this context Avio managed to reach the objectives defined in the Guidance and to increase its long-term business prospects thanks to the increase in backlog and stability in net cash. While the short-term scenario remains uncertain due to the ongoing conflict, Avio sees the opportunity to incrementally grow in the medium term, supported by a clear acceleration in demand (both in the Space and Defence sectors), an operating capability demonstrated by the recent successes of Vega and a robust financial structure, resilient to unexpected events”.